Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

934d4d01fa80a1e06ee117ccb56af35be5fde34c6c26032f75a047148f112183

Total Revenue [USD, Thousands]

Cost of Goods Sold (COGS) [USD, Thousands]

Selling, General, and Administrative Expenses (SG&A) [USD, Thousands]

Research and Development (R&D) [USD, Thousands]

Depreciation and Amortization (D&A) [USD, Thousands]

Interest Expense [USD, Thousands]

Operating Income (EBIT) [USD, Thousands]

Net Income [USD, Thousands]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

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Sales (USD, thousands)

Cost of goods sold, including warehouse and distribution expenses (USD, thousands)

Gross profit (USD, thousands)

Selling, general and administrative expenses (USD, thousands)

Operating income (USD, thousands)

Interest expense (USD, thousands)

Interest income (USD, thousands)

Other, net (USD, thousands)

Total other expense (USD, thousands)

Income before income taxes (USD, thousands)

Provision for income taxes (USD, thousands)

Net income (USD, thousands)

Earnings per share-basic (USD)

Weighted-average common shares outstanding – basic (thousands)

Earnings per share-assuming dilution (USD)

Weighted-average common shares outstanding – assuming dilution (thousands)

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- DIY Customers

- Professional Customers

- Other Sales

Total Revenue

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Net income [USD, thousands]

Depreciation and amortization of property, equipment and intangibles [USD, thousands]

Amortization of debt discount and issuance costs [USD, thousands]

Share-based compensation programs [USD, thousands]

Other (adjustments to reconcile net income) [USD, thousands]

Accounts receivable (changes in operating assets and liabilities) [USD, thousands]

Inventory (changes in operating assets and liabilities) [USD, thousands]

Accounts payable (changes in operating assets and liabilities) [USD, thousands]

Income taxes payable (changes in operating assets and liabilities) [USD, thousands]

Other (changes in operating assets and liabilities) [USD, thousands]

Net cash provided by operating activities [USD, thousands]

Purchases of property and equipment [USD, thousands]

Proceeds from sale of property and equipment [USD, thousands]

Investment in tax credit equity investments [USD, thousands]

Other, including acquisitions, net of cash acquired [USD, thousands]

Net cash used in investing activities [USD, thousands]

Proceeds from borrowings on revolving credit facility [USD, thousands]

Payments on revolving credit facility [USD, thousands]

Net (payments) proceeds of commercial paper [USD, thousands]

Proceeds from the issuance of long-term debt [USD, thousands]

Principal payments on long-term debt [USD, thousands]

Payment of debt issuance costs [USD, thousands]

Repurchases of common stock [USD, thousands]

Net proceeds from issuance of common stock [USD, thousands]

Other (financing activities) [USD, thousands]

Net cash used in financing activities [USD, thousands]

Effect of exchange rate changes on cash [USD, thousands]

Net decrease in cash and cash equivalents [USD, thousands]

Income taxes paid [USD, thousands]

Interest paid, net of capitalized interest [USD, thousands]

Deferred income taxes [USD, thousands]

Cash and cash equivalents at beginning of the period [USD, thousands]

Cash and cash equivalents at end of the period [USD, thousands]

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Domestic Revenue

International Revenue

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Comparable store sales (percentage)

Number of stores in the U.S. and Puerto Rico (count)

Number of stores in Mexico (count)

Number of stores in Canada (count)

Consolidated fixed charge coverage ratio (ratio)

Consolidated leverage ratio (ratio)

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Operating income in Q4 2023 was reported at **$718,736 thousand**.  **[0000898173-24-000009_orly-20231231x10k.htm:59]**  Although there was an improvement over Q4 of the previous year—thanks to a **5% increase in sales** and a **6% increase in gross profit**—that benefit was partially offset by **7% higher SG&A expenses**.  **[0000898173-24-000006_orly-20240207xex99d1.htm:6]**  These higher expenses absorbed some of the gains from better sales performance and cost management, which helped keep the operating margin relatively stable at **18.8%** despite the reduced operating income compared to Q3 2023, when operating income was **$897,222 thousand**.  **[0000898173-23-000058_orly-20230930x10q.htm:3]** 

Why was Operating income so low in Q4 2023?

The documents show that **Q3 2023 net income was 649,827 thousand USD**  **[0000898173-23-000058_orly-20230930x10q.htm:3]**  and **Q4 2023 net income was 552,504 thousand USD**.  **[0000898173-24-000009_orly-20231231x10k.htm:59]**  However, the explanation provided relates to a change from **Q4 2022 to Q4 2023**, not the decline from Q3 to Q4 2023. Therefore, **the documents do not specify what drove the decline in net income from Q3 to Q4 2023**.  **[0000898173-23-000058_orly-20230930x10q.htm:3]** **[0000898173-24-000009_orly-20231231x10k.htm:59]** **[0000898173-24-000006_orly-20240207xex99d1.htm:6]** 

What drove the decline in Net income in Q4 2023?

The jump in EPS in Q3 2024 was primarily driven by **net income growth**—with net income increasing from **$649.8 million to $665.5 million**—and a **strategic share repurchase program** that reduced the weighted-average shares outstanding from **60.1 million to 58.0 million**, thereby boosting the per-share amount. Additionally, **revenue growth** (sales rising from **$4.20 billion to $4.36 billion**), a slight **improvement in gross margins** (from **51.4% to 51.6%**), and effective **cost management**, which maintained operating income at approximately **$896.7 million**, all contributed to the noticeable increase in EPS.  **[0000898173-24-000040_orly-20241023xex99d1.htm:0]** **[0000898173-24-000043_orly-20240930x10q.htm:3]** **[ORLY_3403745_7]** **[0000898173-24-000043_orly-20240930x10q.htm:3]** **[0000898173-24-000040_orly-20241023xex99d1.htm:0]** **[ORLY_3403745_4]** 

What contributed to the jump in EPS in Q3 2024?

In FY 2023, **Sales improved by $1.40 billion (10%)**, reaching **$15.81 billion** compared to **$14.41 billion** in FY 2022. This improvement was driven by **strong comparable store sales growth** (with a 7.9% increase in FY 2023 compared to 6.4% in FY 2022), **the opening of 186 new stores** that expanded the company’s reach, and enhancements in average ticket values due to factors such as increased pricing on more complex replacement parts, as well as overall strong operational execution.  **[0000898173-24-000006_orly-20240207xex99d1.htm:1]** **[0000898173-23-000058_orly-20230930x10q.htm:23]** 

How did Sales improve in FY 2023?

The increase in **FY 2023 EPS** was driven by several factors: **net income growth** (an 8% increase to **$2.35 billion** from **$2.17 billion**), **share repurchases** that reduced the weighted-average common shares outstanding (from **64,372 thousand** to **60,475 thousand**), and **revenue growth** (a 10% increase to **$15.81 billion** from **$14.41 billion**).  **[0000898173-24-000009_orly-20231231x10k.htm:91]** **[0000898173-24-000006_orly-20240207xex99d1.htm:1]** **[0000898173-24-000009_orly-20231231x10k.htm:45]** 

What drove the increase in FY 2023 EPS?

fcde1533858b63926ceedb65c80831905fac3321752b4166bc4160fa06d8f1a0

The sharp decline in **Cash and cash equivalents** in Q3 2022 was primarily driven by a significant outflow for **share repurchases** under financing activities, which resulted in a major cash drain. This was compounded by additional impacts from investing and operating activities, including heavy use of cash for property and equipment purchases and the overall net cash flow dynamics during the period.  **[0000898173-22-000046_orly-20221026xex99d1.htm:6]** **[0000898173-22-000049_orly-20220930x10q.htm:5]** 

Why did cash and cash equivalents drop so sharply in Q3 2022?

The spike in Q2 2022 was primarily caused by the issuance of **$850 million of 10-year senior notes** at a rate of **4.7%** in June 2022, which significantly increased the company’s long-term debt. This effect was partially offset by the absence of any principal payments during the period.  **[ORLY_570510_9]** **[0000898173-22-000034_orly-20220727xex99d1.htm:4]** 

What caused the spike in long-term debt in Q2 2022?

The significant increase in the retained deficit in Q2 2022 was primarily driven by **net income** and **substantial share repurchases**. Specifically, while the company generated a **net income of $576,760 thousand** for Q2 2022 (and **$1,058,640 thousand** over the six months ended June 30, 2022) which would typically reduce the deficit, it simultaneously engaged in considerable share repurchases totaling **$2,151,242 thousand** during the same period. This large volume of share repurchases significantly reduced retained earnings, thereby outweighing the positive effect of net income and leading to a deeper retained deficit.  **[0000898173-22-000037_orly-20220630x10q.htm:4]** **[0000898173-22-000034_orly-20220727xex99d1.htm:5]** **[0000898173-22-000034_orly-20220727xex99d1.htm:6]** **[0000898173-22-000037_orly-20220630x10q.htm:5]** 

What factors led to the significant increase in the retained deficit in Q2 2022?

434c29a9c61e8b55db50306794b50cba770b1848a593d973b840f059e47ca073

O'Reilly Automotive Inc (ORLY)

Financials