O'Reilly Automotive: Fool by Numbers

On Tuesday, O'Reilly Automotive (Nasdaq: ORLY  ) released third-quarter earnings for the period ended Sept. 30.

• Revenues increased by 9.9%, and same-store sales rose 3.6%.
• In the year-ago quarter there was a lower tax rate and thus higher net income. Adjusting for that item, EPS increased 13.5%.
• Structural free cash flow declined by 47% as a result of increased capital expenditures.

(Figures in millions, except per-share data)

Income Statement Highlights

	Avg. Est.	Q3 2006	Q3 2005	Change
Sales	$598	$597	$543	9.9%
Net Profit	--	$48	$49	(2%)
EPS	$0.43	$0.42	$0.42	0%
Diluted Shares	--	113	112	1%

Get back to basics with a look at the income statement.

Margin Checkup

	Q3 2006	Q3 2005	Change*
Gross Margin	44.10%	43.45%	0.65
Operating Margin	12.58%	12.45%	0.13
Net Margin	8.02%	8.96%	(0.94)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q3 2006	Q3 2005	Change
Cash + ST Invest.	$41	$51	(19.6%)
Accounts Rec.	$82	$73	12.3%
Inventory	$817	$715	14.3%

Liabilities	Q3 2006	Q3 2005	Change
Accounts Payable	$341	$288	18.4%
Long-Term Debt	$101	$25	304%

Learn the ways of the balance sheet.

Cash Flow Highlights

	Q3 2006	Q3 2005	Change
Net Income	$48	$49	(2%)
Depreciation	$16	$15	6.7%
Capital Expenditures	$55	$47	17%
Structural Free Cash Flow	$9	$17	(47%)

Find out why Fools always follow the money.

Related companies:

• AutoZone (NYSE: AZO  )
• Advance Auto Parts (NYSE: AAP  )
• Pep Boys (NYSE: PBY  )

Related Foolishness:

• AutoZone Needs a Jump Start
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