O’Reilly 3Q sales up 68%, post-CSK acquisition
SPRINGFIELD, Mo. O’Reilly Automotive posted sales for the three months ended Sept. 30, of $1.11 billion, up 68% from $0.66 billion for the same period last year. Net income for the third quarter totaled $41.4 million, down 22% from $53.1 million for the same period in 2007. Diluted EPS for the quarter decreased 33% to 31 cents on 133.1 million shares, compared to 46 cents for the third quarter of 2007 on 116.3 million shares. Comparable-store sales for the third quarter increased 1.5%.
The company’s third-quarter results include charges related to the July 11 acquisition of CSK Automotive, including one-time costs for the prepayment and extinguishment of existing O’Reilly debt, commitment fees for an unused interim financing facility, a one-time adjustment to tax liabilities resulting from the acquisition of CSK and a non-cash charge to amortize the value assigned to CSK’s trade names and trademarks, which will be amortized over the next two-and-a-half years, coinciding with the anticipated conversion of CSK store locations. Adjusted diluted EPS, excluding the impact of acquisition-related charges, was 40 cents for the third quarter, reflecting a decrease of 13% from the same period a year ago.
Comparable-store sales for CSK decreased 4.3% for the portion of CSK’s sales in the third quarter since the July 11 acquisition by O’Reilly. Consolidated comparable-store sales decreased 0.8%.
“We enter the fourth quarter focused on the continued execution of our CSK store conversion plan,” said O’Reilly coo and co-president Ted Wise. “During the quarter, we will be converting stores located in markets where we have O’Reilly distribution reach and can effectively execute our dual market strategy … We continue to be very impressed with the new members of our team and the level of enthusiasm they have shown by embracing the O’Reilly culture.”
RadioShack launches electronics trade-in program
FORT WORTH, Texas RadioShack has launched an online electronics trade-in program that allows customers to exchange certain used portable electronics for a RadioShack Gift Card through http://www.RadioShack.com.
Customers who accept the trade-in value for their used product will be mailed a RadioShack Gift Card that can be used toward the purchase of new products in RadioShack stores nationwide or at RadioShack.com. Acceptable items for the RadioShack Online Trade-In Program include GPS devices, MP3 Players, wireless phones, digital camcorders, car audio head units, digital cameras, notebook computers, game media and game consoles.
“We are excited to offer our online customers an environmentally friendly solution by helping them trade-in their used portable electronics while at the same time helping them save on their next RadioShack purchase,” said Peter Whitsett, RadioShack’s evp of merchandising. “We know that consumers are looking for innovative ways to save money, and we think this program will help them stretch their dollars in time for the holiday shopping season at their neighborhood RadioShack.”
Pacific Sunwear rejects Adrenalina proposal
ANAHEIM, Calif. Pacific Sunwear of California announced that its board of directors has decided to reject Adrenalina’s revised proposal to purchase all of the issued and outstanding shares of common stock of Pacific Sunwear.
The company’s management, with the full support of the board, is committed to executing on their strategic plan to create long-term shareholder value.
Adrenalina, a retail-entertainment company currently operates three stores in Florida.