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O’Reilly Automotive (ORLY) Earnings Report: Q3 2014 Conference Call Transcript

The following O’Reilly Automotive
(ORLY) discussion call took place on Oct 23, 2014, 11:00 AM ET. This is a twin of that gain call:

Company Participants

  • Tom McFall; O’Reilly Automotive; EVP – Finance, CFO
  • Jeff Shaw; O’Reilly Automotive; EVP – Store Operations Sales
  • Greg Henslee; O’Reilly Automotive; President, CEO

Other Participants

  • Chris Horvers; JPMorgan; Analyst
  • Scot Ciccarelli; RBC Capital Markets; Analyst
  • Gary Balter; Credit Suisse; Analyst
  • Simeon Gutman; Morgan Stanley; Analyst
  • Mike Baker; Deutsche Bank; Analyst
  • Daniel Hofkin; William Blair; Analyst
  • Alan Rifkin; Barclays Capital; Analyst
  • Michael Lasser; UBS; Analyst

MANAGEMENT DISCUSSION SECTION

Operator:

Welcome to a O’Reilly Automotive
Incorporated third-quarter gain discussion call. My name is Ellen and we will be your user for today’s call.

At this time, all participants are in a listen-only mode. Later, we will control a question-and-answer session. Please note that this discussion is being recorded. we will now spin a call over to Mr. Tom McFall. Mr. McFall, we might begin.

Tom McFall (EVP – Finance, CFO):

Thank we Ellen. Good morning, everyone, and appreciate we for fasten us.

During today’s discussion call, we will plead a third-quarter 2014 results, a opinion for a residue of a year, and after a prepared comments, we will horde a question-and-answer period.

Before we start this morning, we would like to remind everybody that a comments currently enclose forward-looking statements, and we intend to be lonesome by, and we explain a insurance under, a Safe Harbor supplies for forward-looking statements contained in a Private Securities Litigation Reform Act of 1995.

You can brand these statements by forward-looking difference such as expect, believe, anticipate, should, plan, intend, estimate, project, will or identical words. The Company’s tangible formula could differ materially from any forward-looking statements due to several critical factors described in a Company’s latest annual news on Form 10-K for a year finished Dec 31, 2013 and other new SEC filings. The Company assumes no requirement to refurbish any forward-looking statements done during this call.

At this time, I’d like to deliver Greg Henslee.

Greg Henslee (President, CEO):

Thanks Tom. Good morning, everyone, and acquire to a O’Reilly Auto Parts third-quarter discussion call. Participating on a call with me this morning is of march Tom McFall, a Chief Financial Officer, and Jeff Shaw, a Executive Vice President of Store Operations and Sales. David O’Reilly, a Executive Chairman, is also present.

Once again, we would like to start a call currently by congratulating group O’Reilly on another good quarter. Our team’s relentless joining to providing consistent, glorious patron use any day continues to expostulate a record-breaking formula and allows us to profitably grow marketplace share. And we would like to take this event to appreciate any of a group members for their tough work and their loyalty to a company’s long-term success.

As we listen to today’s discussion call, we consider you’ll find that it sounds really identical to a second-quarter call as we again exceeded a superintendence and posted intensely good results. As we saw final quarter, a wear and rip on vehicles caused by a oppressive winter continued to minister to direct for a products and helped us surpass a tip finish of a 3% to 5% third-quarter allied store sales superintendence with a really clever 6.2% increase. And these considerable formula were on tip of a plain 4.6% allied store sales boost for a third entertain of 2013.

Total sales for a entertain increasing 8.6% to $1.9 billion and we are generally unapproachable of a team’s ability to dynamically grow sales profitably, evidenced by a 18.3% third-quarter handling margin, that is a 94 basement indicate boost over a third entertain of 2013.

Our team’s joining to consistent, glorious patron use over a long-term delivered EPS expansion of 22% for a quarter, that represents a 23rd uninterrupted entertain earnings-per-share expansion has exceeded 15%.

During a second-quarter call, we discussed a certain sales tailwinds we gifted from a impact of a impassioned wear and rip on vehicles caused by a cold temperatures and potholes on a roads combined by a oppressive winter weather. This tailwind continued into a third entertain and we again saw continued clever opening in a under-car categories such as breaks, driveline, framework and float control.

As we also discussed in a final discussion call, a miss of impassioned feverishness in many of a markets resulted in reduce than normal anniversary sales in air-conditioning associated categories, that was a headwind to a third-quarter sales performance. But altogether we saw plain formula opposite both upkeep and correct categories during a quarter.

Article source: http://www.thestreet.com/story/12928357/1/oreilly-automotive-orly-earnings-report-q3-2014-conference-call-transcript.html

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