O'Reilly Automotive Inc ORLY
Q3 2012 Earnings Call Transcript

Transcript Call Date 10/25/2012

Operator: Good morning. My name is Paula, and I will be your conference operator today. At this time, I would like to welcome everyone to the O’Reilly Automotive Third Quarter 2012 Earnings Release Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Thank you.

Mr. McFall, you may begin your conference.

Thomas G. McFall - CFO, EVP of Finance: Thank you, Paula. Good morning, everyone, and welcome to our conference call. Before I introduce Greg Henslee, our CEO, we have a brief statement.

The Company claims the protection of the Safe Harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as expect, believe, anticipate, should, plan, intend, estimate, project, will, or similar words.

In addition, statements contained within this press release that are not historical facts are forward-looking statements, such as statements discussing among other things, expected growth, store development, integration and expansion strategy, business strategies, future revenues and future performance. These forward-looking statements are based on estimates, projections, beliefs and assumptions and are not guarantees of future events and results. Such statements are subject to risks, uncertainties and assumptions, including, but not limited to, competition, product demand, the market for auto parts, the economy in general, inflation, consumer debt levels, governmental regulations, the Company’s increased debt levels, credit ratings on the Company's public debt, the Company's ability to hire and retain qualified employees, risks associated with performance of acquired businesses, such as CSK, weather, terrorist activities, war and the threat of war. Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the Risk Factors section of the Annual Report on Form 10-K for the year ended December 31, 2011 for additional factors that could materially affect the company's financial performance.

The Company undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events, or otherwise.

At this time, I'd like to introduce Greg Henslee.

Gregory L. Henslee - Co-President and CEO: Thanks Tom. Good morning, everyone, and welcome to the O'Reilly Auto Parts third quarter conference call.

Participating on the call with me this morning is, of course, Tom McFall, our Chief Financial Officer; and Ted Wise, our Chief Operating Officer. David O'Reilly, our Executive Chairman, is also present.

I would like to begin today by thanking all the members of Team O'Reilly for their commitment to our ongoing success by providing industry-leading customer service. In the midst of a quarter where we saw continued impact from a challenging economy and the lingering effects of a mild winter, we were still able to increase comparable store sales by 1.3%, which was on top of a 4.8% increase in comparable store sales in the prior year and on top of a challenging two-year (stacked) comparable store sale of 15.9%. Our relentless focus on profitable growth combined with a solid expense control allowed us to increase our operating margin to an all-time quarterly high of 16.4%.

Read our Earnings Call Transcript disclaimer.
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