O'Reilly has record year, proposes tripling shares

O'Reilly Automotive Inc. in March announced 1998 net income of $30.8 million for the year that ended Dec. 31. Diluted earnings per share for the year were $1.42 on 21.6 million common shares, up 30.3 percent from 1997.

The company also announced its intentions to seek shareholder approval to increase the number of authorized shares from 30 million to 90 million.

"The board believes that such additional shares will provide the company with flexibility to act promptly with respect to stock splits and stock dividends, public and private financings, acquisitions and other corporate purposes," a release said.

"We are very pleased with the continued progress made in integrating the 182 Hi-Lo stores acquired in January 1998 into the O'Reilly system," said David O'Reilly, president and chief executive officer, in the release. "Before our acquisition of Hi-Lo, their prior three years of comparable store product sales were negative, therefore the 5.4 percent increase they achieved in 1998 was especially gratifying."

The revenues and earnings for 1998 represent the sixth consecutive year of record revenues and earnings for O'Reilly since it went public in April 1993.

Product sales in 1998 increased to $616.3 million from $316.4 million in 1997. Gross profit for the year increased to $257.9 million, or 41.8 percent of product sales. In 1997, gross profit was $134.5 million, or 42.5 percent of product sales.

Comparable store product sales increased 6.8 percent for 1998. Comparable store sales are calculated by the company based on the change in product sales of only those stores open during both full periods being compared.

Springfield-based O'Reilly said it plans to add 80 stores in 1999. The company now operates 497 stores in Texas, Missouri, Oklahoma, Kansas, Iowa, Arkansas, Louisiana, Nebraska and Illinois.

O'Reilly Automotive Inc., traded on the NASDAQ, closed trading March 10 at $44, up 12.5 cents. The company will seek shareholder approval of the increase in availible shares at its regular annual meeting May 4.