O’Reilly Automotive(ORLY) - 2024 Q4 - Annual Results

Sales Performance - Fourth quarter sales increased by $264 million, or 7%, to $4.10 billion from $3.83 billion year-over-year[3] - Fourth quarter comparable store sales grew by 4.4%, while full-year comparable store sales increased by 2.9%[6] - Full-year sales rose by $896 million, or 6%, to $16.71 billion from $15.81 billion year-over-year[8] - Total sales for the year ended December 31, 2024, reached $16,708,479, an increase of 5.65% from $15,812,250 in 2023[23] Profitability - Gross profit for the fourth quarter was $2.10 billion, representing 51.3% of sales, and for the full year, it was $8.55 billion, or 51.2% of sales[3][8] - Net income for the fourth quarter decreased by $1 million to $551 million, or 13.5% of sales, while full-year net income increased by $40 million, or 2%, to $2.39 billion, or 14.3% of sales[5][9] - Gross profit for the year ended December 31, 2024, was $8,554,489, representing a gross margin of 51.2%, compared to $8,104,803 and a margin of 51.2% in 2023[23] - Net income for the year ended December 31, 2024, was $2,386,680, up from $2,346,581 in 2023, reflecting a growth of 1.7%[25] - Earnings per share for the year ended December 31, 2024, was $40.91, compared to $38.80 in 2023, indicating an increase of 5.7%[23] Store Expansion - The company opened 198 net new stores in 2024, meeting its expansion target[8] - The company opened 170 new stores in 2024, compared to 169 in 2023, indicating continued expansion efforts[28] - The ending domestic store count reached 6,265 in 2024, up from 6,095 in 2023, demonstrating successful market penetration[28] Financial Guidance - Full-year 2025 guidance includes total revenue of $17.4 billion to $17.7 billion and diluted earnings per share of $42.60 to $43.10[12] - The effective income tax rate for 2025 is projected to be 22.6%[12] Cash Flow and Assets - Net cash provided by operating activities for 2024 was $3.0 billion[7] - Net cash provided by operating activities for the year ended December 31, 2024, was $3,049,576, slightly up from $3,034,084 in 2023[25] - Total assets as of December 31, 2024, amounted to $14,893,741, an increase of 7.34% from $13,872,995 in 2023[21] - Cash and cash equivalents decreased to $130,245 as of December 31, 2024, down from $279,132 in 2023, a decline of 53.4%[25] Liabilities and Shareholder Equity - Total current liabilities increased to $8,283,505 as of December 31, 2024, from $7,661,353 in 2023, marking a rise of 8.1%[21] - The company’s total shareholders' deficit improved to $(1,370,961) as of December 31, 2024, from $(1,739,278) in 2023, indicating a reduction of 21.1%[21] Operational Metrics - Total employment increased to 93,176 in 2024 from 90,189 in 2023, reflecting growth in workforce[28] - Average inventory per store rose to $799,000 in 2024 from $757,000 in 2023, indicating higher stock levels[27] - The total lease cost per ASC 842 for 2024 was $543,495, up from $503,151 in 2023, showing increased leasing expenses[27] - Adjusted debt to EBITDAR ratio improved to 1.99 in 2024 from 2.03 in 2023, indicating better leverage management[27] - Free cash flow for the year ended December 31, 2024, was $1,987,808, slightly up from $1,987,720 in 2023[27] - The company reported a depreciation and amortization expense of $461,892 for the year ended December 31, 2024, compared to $409,061 in 2023, reflecting an increase of 12.9%[25]