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| 8-K - FORM 8-K FILING DOCUMENT - O REILLY AUTOMOTIVE INC | document.htm |
EXHIBIT 99.1
O'Reilly Automotive, Inc. Reports First Quarter 2011 Results
- Comparable store sales increase of 5.7%
- Operating margin for the quarter improved 100 bp to 14.2%
- Adjusted diluted earnings per share increased 19% to $0.83
SPRINGFIELD, Mo., April 27, 2011 (GLOBE NEWSWIRE) -- O'Reilly Automotive, Inc. (the "Company") (Nasdaq:ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenues and earnings for the first quarter ended March 31, 2011.
1st Quarter Financial Results
Sales for the first quarter ended March 31, 2011, increased $103 million, or 8%, to $1.38 billion from $1.28 billion for the same period a year ago. Gross profit for the first quarter increased to $670 million (or 48.4% of sales) from $618 million (or 48.3% of sales) for the same period a year ago, representing an increase of 8%. Selling, general and administrative expenses for the first quarter increased to $473 million (or 34.2% of sales) from $450 million (or 35.1% of sales) for the same period a year ago, representing an increase of 5%. Operating income for the first quarter increased to $196 million (or 14.2% of sales) from $168 million (or 13.2% of sales) for the same period a year ago, representing an increase of 17%.
Net income for the first quarter ended March 31, 2011, increased to $102 million (or 7.4% of sales) from $97 million (or 7.6% of sales) for the same period a year ago, representing an increase of 5%. Diluted earnings per common share for the first quarter increased 3% to $0.72 on 143 million shares versus $0.70 for the same period a year ago on 140 million shares.
The Company's results for the first quarter ended March 31, 2011, included one-time charges associated with the new financing plan the Company completed on January 14, 2011. These one-time charges included a non-cash charge to write off the balance of debt issuance costs related to the Company's previous credit facility in the amount of $22 million, and a charge related to the termination of the Company's interest rate swap agreements in the amount of $4 million. Adjusted diluted earnings per common share, excluding the impact of the charges relating to the Company's new financing plan, increased 19% to $0.83 for the first quarter ended March 31, 2011, from $0.70 for the same period a year ago. The table below outlines the impact of the charges related to the new financing plan for the first quarter, (amounts in thousands, except per share data):
| For the Three Months Ended March 31, | ||||
| 2011 | 2010 | |||
| Amount | % of Sales | Amount | % of Sales | |
| Net income | $ 102,474 | 7.4% | $ 97,476 | 7.6% |
| Write-off of debt issuance costs, net of tax | 13,337 | 1.0% | -- | --% |
| Termination of interest rate swap agreements, net of tax | 2,613 | 0.2% | -- | --% |
| Adjusted net income | $ 118,424 | 8.6% | $ 97,476 | 7.6% |
| Diluted earnings per common share | $ 0.72 | $ 0.70 | ||
| Write-off of debt issuance costs, net of tax | 0.09 | -- | ||
| Termination of interest rate swap agreements, net of tax | 0.02 | -- | ||
| Adjusted diluted earnings per common share | $ 0.83 | $ 0.70 | ||
Commenting on the Company's quarterly results, Greg Henslee, O'Reilly's CEO and Co-President, stated, "We are happy to report another very profitable quarter. Our solid start to 2011 was highlighted by a comparable store sales increase of 5.7% and a 100 basis point improvement in operating margin which drove an increase in adjusted diluted earnings per share of 19%. Our 14.2% operating margin is the result of our strong comparable store sales growth coupled with our relentless focus on expense control. During the quarter, we began repurchasing shares of our stock on the open market and through the date of this release we had repurchased 3.6 million shares at an aggregate cost of $200 million. We will continue to prudently use cash generated from operations first to reinvest in the growth of our business and second to opportunistically execute our share repurchase program to enhance shareholder value. We would like to thank our dedicated Team Members for their commitment to our Company's continued success and to the O'Reilly Culture values of customer service and expense control and we look forward to the remainder of 2011 and the opportunity to continue to grow the O'Reilly brand in all of our markets."
"The first quarter of 2011 marks the first full quarter in which all of our stores have operated on the O'Reilly point-of-sale and distribution systems," stated Ted Wise, COO and Co-President of O'Reilly. "The conversion of all the acquired CSK stores to the O'Reilly systems and distribution network provides same-day or overnight access to a broad selection of hard-to-find parts. The O'Reilly systems also provide important tools which enable the store managers to improve the profitability and efficiency of our stores. We are actively progressing through the final stage of our physical CSK store conversion process, which involves exterior signage and interior décor package changeovers and is scheduled for completion in mid-2011."
Mr. Wise concluded, "During the first quarter, we opened 55 new stores, putting us on track to reach our goal of 170 net, new store openings in 2011. We also opened our first store in West Virginia this quarter, which increased our operations to 39 states. Our growth is the direct result of the hard work of our 47,000 Team Members and we would like to thank each of you for your commitment to providing excellent customer service."
On January 11, 2011, the Company's Board of Directors authorized a $500 million share repurchase program. During the first quarter ended March 31, 2011, the Company repurchased 2.6 million shares of its common stock at an average price per share of $55.54, for a total investment of $145 million. Subsequent to the end of the first quarter and through the date of this release, the Company repurchased an additional 1.0 million shares of its common stock at an average price per share of $56.46, for a total investment of $55 million. As of the date of this release, the Company had $300 million remaining under its share repurchase program.
1st Quarter Comparable Store Sales Results
Comparable store sales are calculated based on the change in sales for stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores and sales to team members. Comparable store sales increased 5.7% for the first quarter ended March 31, 2011, versus 6.9% for the same period a year ago.
2nd Quarter and Updated Full-Year 2011 Guidance
The table below outlines the Company's guidance for selected second quarter and updated full-year 2011 financial data:
| Three Months Ending | Year Ending | |
| June 30, 2011 | December 31, 2011 | |
| Comparable store sales | 3% to 5% | 3% to 6% |
| Total revenue | $5.7 billion to $5.8 billion | |
| Gross profit margin | 48.4% to 48.8% | |
| Operating margin | 14.1% to 14.6% | |
| Diluted earnings per share (1) | $0.92 to $0.96 | $3.37 to $3.47 |
| Adjusted diluted earnings per share (1)(2) | $3.49 to $3.59 | |
| Capital expenditures | $310 million to $340 million | |
| Free cash flow (3) | $360 million to $400 million | |
| (1) Weighted-average shares outstanding, assuming dilution, used in the denominator of this calculation, includes share repurchases made by the Company through the date of this release. | ||
| (2) Excludes $0.11 related to one-time charges associated with the new financing plan the Company completed on January 14, 2011. These one-time items include an adjustment to earnings per share of $0.09, net of tax, for a non-cash charge to write off the balance of debt issuance costs related to the Company's previous credit facility in the amount of $22 million and an adjustment to earnings per share of $0.02, net of tax, for a charge related to the termination of the Company's interest rate swap agreements in the amount of $4 million. | ||
| (3) Calculated as net cash flows provided by operating activities less capital expenditures for the period. | ||
Non-GAAP Information
This release contains certain financial information not derived in accordance with United States generally accepted accounting principles ("GAAP"). These items include adjusted net income, adjusted diluted earnings per common share, free cash flow, and rent-adjusted debt to adjusted earnings before interest, taxes, depreciation, amortization, stock option compensation and rent ("EBITDAR"). The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The Company believes that the presentation of financial results and estimates excluding the impact of the non-cash charge to write off the balance of debt issuance costs, the charge related to the termination of interest rate swap agreements, as well as the presentation of adjusted debt to adjusted EBITDAR and free cash flow, provide meaningful supplemental information, to both management and investors, that is indicative of the Company's core operations. The Company excludes these items in judging its performance and believes this non-GAAP information is useful to investors as well. The Company has included a reconciliation of this additional information to the most comparable GAAP measure in the accompanying reconciliation table.
Earnings Conference Call Information
The Company will host a conference call on Thursday, April 28, 2011, at 10:00 a.m. central time to discuss its results as well as future expectations. Investors may listen to the conference call live on the Company's web site, www.oreillyauto.com, by clicking on "Investor Relations" and then "News Room". Interested analysts are invited to join our call. The dial-in number for the call is (706) 679-5789; the conference call identification number is 52475849. A replay of the call will also be available on the Company's website following the conference call.
About O'Reilly Automotive, Inc.
O'Reilly Automotive, Inc. is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States, serving both the do-it-yourself and professional service provider markets. Founded in 1957 by the O'Reilly family, the Company operated 3,613 stores in 39 states as of March 31, 2011.
The O'Reilly Automotive, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5430
Forward-Looking Statements
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, CSK Auto Corporation ("CSK") Department of Justice ("DOJ") investigation resolution, 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 approvals, 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 the 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, 2010, for additional factors that could materially affect the Company's financial performance.
| O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES | |||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||
| (In thousands, except share data) | |||
| March 31, 2011 | March 31, 2010 | December 31, 2010 | |
| (Unaudited) | (Unaudited) | (Note) | |
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | $ 230,048 | $ 29,872 | $ 29,721 |
| Accounts receivable, net | 128,224 | 123,539 | 121,807 |
| Amounts receivable from vendors | 68,641 | 63,652 | 61,845 |
| Inventory | 2,001,314 | 1,903,108 | 2,023,488 |
| Deferred income taxes | 10,018 | 74,056 | 33,877 |
| Other current assets | 29,166 | 37,331 | 30,514 |
| Total current assets | 2,467,411 | 2,231,558 | 2,301,252 |
| Property and equipment, at cost | 2,785,032 | 2,448,289 | 2,705,434 |
| Less: accumulated depreciation and amortization | 812,612 | 663,988 | 775,339 |
| Net property and equipment | 1,972,420 | 1,784,301 | 1,930,095 |
| Notes receivable, less current portion | 16,379 | 11,208 | 18,047 |
| Goodwill | 743,895 | 743,824 | 743,975 |
| Other assets, net | 47,981 | 66,974 | 54,458 |
| Total assets | $ 5,248,086 | $ 4,837,865 | $ 5,047,827 |
| Liabilities and shareholders' equity | |||
| Current liabilities: | |||
| Accounts payable | $ 977,627 | $ 794,676 | $ 895,736 |
| Self-insurance reserves | 53,852 | 55,713 | 51,192 |
| Accrued payroll | 45,351 | 62,652 | 52,725 |
| Accrued benefits and withholdings | 37,502 | 39,661 | 45,542 |
| Income taxes payable | 30,870 | 35,060 | 4,827 |
| Other current liabilities | 171,564 | 148,477 | 177,505 |
| Current portion of long-term debt | 1,208 | 105,790 | 1,431 |
| Total current liabilities | 1,317,974 | 1,242,029 | 1,228,958 |
| Long-term debt, less current portion | 497,641 | 596,710 | 357,273 |
| Deferred income taxes | 63,083 | 23,726 | 68,736 |
| Other liabilities | 181,538 | 175,082 | 183,175 |
| Shareholders' equity: | |||
| Common stock, $0.01 par value: | |||
| Authorized shares – 245,000,000 | |||
| Issued and outstanding shares – | |||
| 138,741,655 as of March 31, 2011, 137,882,397 as of March 31, 2010, and 141,025,544 as of December 31, 2010 | 1,387 | 1,379 | 1,410 |
| Additional paid-in capital | 1,138,249 | 1,058,407 | 1,141,749 |
| Retained earnings | 2,048,214 | 1,747,599 | 2,069,496 |
| Accumulated other comprehensive loss | -- | (7,067) | (2,970) |
| Total shareholders' equity | 3,187,850 | 2,800,318 | 3,209,685 |
| Total liabilities and shareholders' equity | $ 5,248,086 | $ 4,837,865 | $ 5,047,827 |
| Note: The balance sheet at December 31, 2010, has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. Certain prior period amounts have been reclassified to conform to current period presentation. | |||
| O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||
| (Unaudited) | ||
| (In thousands, except per share data) | ||
| Three Months Ended | ||
| March 31, | ||
| 2011 | 2010 | |
| Sales | $ 1,382,738 | $ 1,280,067 |
| Cost of goods sold, including warehouse and distribution expenses | 712,957 | 661,720 |
| Gross profit | 669,781 | 618,347 |
| Selling, general and administrative expenses | 473,344 | 449,902 |
| Operating income | 196,437 | 168,445 |
| Other income (expense): | ||
| Write-off of debt issuance costs | (21,626) | -- |
| Termination of interest rate swap agreements | (4,237) | -- |
| Interest expense | (5,237) | (10,879) |
| Interest income | 542 | 396 |
| Other, net | 295 | 514 |
| Total other expense | (30,263) | (9,969) |
| Income before income taxes | 166,174 | 158,476 |
| Provision for income taxes | 63,700 | 61,000 |
| Net income | $ 102,474 | $ 97,476 |
| Earnings per share-basic: | ||
| Earnings per share | $ 0.73 | $ 0.71 |
| Weighted-average common shares outstanding – basic | 140,579 | 137,583 |
| Earnings per share-assuming dilution: | ||
| Earnings per share | $ 0.72 | $ 0.70 |
| Weighted-average common shares outstanding – assuming dilution | 142,866 | 139,612 |
| O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (Unaudited) | ||
| (In thousands) | ||
|
Three Months Ended March 31, |
||
| 2011 | 2010 | |
| (note) | ||
| Operating activities: | ||
| Net income | $ 102,474 | $ 97,476 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization on property and equipment | 38,934 | 38,263 |
| Amortization of intangibles | (143) | 1,672 |
| Amortization of premium on exchangeable notes | -- | (185) |
| Amortization of discount on senior notes | 74 | -- |
| Amortization of debt issuance costs | 265 | 2,137 |
| Write-off of previous debt issuance costs | 21,626 | -- |
| Excess tax benefit from stock options exercised | (2,148) | (1,775) |
| Deferred income taxes | 16,331 | 18,287 |
| Stock option compensation programs | 4,445 | 3,650 |
| Other share based compensation programs | 691 | 464 |
| Other | 3,058 | 1,558 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (9,503) | (17,424) |
| Inventory | 22,175 | 10,110 |
| Accounts payable | 81,907 | (23,509) |
| Income taxes payable | 28,191 | 28,767 |
| Other | (14,264) | 11,155 |
| Net cash provided by operating activities | 294,113 | 170,646 |
| Investing activities: | ||
| Purchases of property and equipment | (94,404) | (90,725) |
| Proceeds from sale of property and equipment | 252 | 382 |
| Payments received on notes receivable | 1,679 | 1,272 |
| Other | 227 | (1,186) |
| Net cash used in investing activities | (92,246) | (90,257) |
| Financing activities: | ||
| Proceeds from borrowings on asset-based revolving credit facility | 42,400 | 122,700 |
| Payments on asset-based revolving credit facility | (398,400) | (208,300) |
| Proceeds from the issuance of long-term debt | 496,485 | -- |
| Payment of debt issuance costs | (7,385) | -- |
| Principal payments on capital leases | (409) | (2,463) |
| Repurchases of common stock | (145,064) | -- |
| Excess tax benefit from stock options exercised | 2,148 | 1,775 |
| Net proceeds from issuance of common stock | 8,685 | 8,836 |
| Net cash used in financing activities | (1,540) | (77,452) |
| Net increase in cash and cash equivalents | 200,327 | 2,937 |
| Cash and cash equivalents at beginning of period | 29,721 | 26,935 |
| Cash and cash equivalents at end of period | $ 230,048 | $ 29,872 |
| Supplemental disclosures of cash flow information: | ||
| Income taxes paid | $ 17,682 | $ 13,171 |
| Interest paid, net of capitalized interest | 1,637 | 7,276 |
| Note: Certain prior period amounts have been reclassified to conform to current period presentation. | ||
| O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES | ||
| SELECTED FINANCIAL INFORMATION | ||
| (Unaudited) | ||
| Twelve Months Ended | ||
| March 31, | ||
| (In thousands, except adjusted debt to adjusted EBITDAR ratio) | 2011 | 2010 |
| Debt | $ 498,849 | $ 702,500 |
| Add: Letters of credit | 74,365 | 72,159 |
| Discount on senior notes | 3,441 | -- |
| Rent X 6 | 1,367,334 | 1,366,176 |
| Less: Premium on exchangeable notes | -- | 533 |
| Adjusted debt | $ 1,943,989 | $ 2,140,302 |
| Adjusted net income (1) | $ 454,006 | $ 342,139 |
| Add: Interest expense | 33,631 | 43,995 |
| Taxes (2) | 278,189 | 211,050 |
| Adjusted EBIT | 765,826 | 597,184 |
| Add: Depreciation and amortization | 160,298 | 152,082 |
| Rent expense | 227,889 | 227,696 |
| Stock option compensation expense | 15,742 | 13,781 |
| Adjusted EBITDAR | $ 1,169,755 | $ 990,743 |
| Adjusted debt to adjusted EBITDAR | 1.7 | 2.2 |
| March 31, | ||
| 2011 | 2010 | |
| Selected Balance Sheet Ratios: | ||
| Inventory turnover (3) | 1.4 | 1.4 |
| Inventory turnover, net of payables (4) | 2.6 | 2.5 |
| Average inventory per store (in thousands) (5) | $ 554 | $ 549 |
| Accounts payable to inventory (6) | 48.8% | 41.8% |
| Debt-to-capital (7) | 13.5% | 20.1% |
| Return on equity (8) | 14.6% | 13.0% |
| Return on assets (9) | 9.0% | 7.3% |
| Three Months Ended | ||
| March 31, | ||
| 2011 | 2010 | |
| Selected Financial Information (in thousands): | ||
| Capital expenditures | $ 94,404 | $ 90,725 |
| Free cash flow (10) | $ 199,709 | $ 79,921 |
| Depreciation and amortization | $ 38,791 | $ 39,935 |
| Interest expense | $ 5,237 | $ 10,879 |
| Lease and rental expense | $ 57,161 | $ 56,151 |
| Three Months Ended | Twelve Months Ended | |||
| March 31, | March 31, | |||
| 2011 | 2010 | 2011 | 2010 | |
| Store Information: | ||||
| Total employment | 47,480 | 45,271 | ||
| New stores | 55 | 49 | ||
| Stores closed | 12 | 1 | ||
| Total store count | 3,613 | 3,469 | ||
| Square footage (in thousands) | 25,627 | 24,563 | 25,627 | 24,563 |
| Sales per weighted-average square foot (11) | $ 53.68 | $ 51.88 | $ 217.30 | $ 204.04 |
| Sales per weighted-average store (in thousands) (12) | $ 381 | $ 367 | $ 1,540 | $ 1,443 |
| (1) Amount for the twelve months ended March 31, 2011, excludes charges related to the write off of the balance of debt issuance costs related to the Company's previous credit facility, net of tax; the termination of the Company's interest rate swap agreements, net of tax; the previously disclosed CSK DOJ investigation, established in the third quarter of 2010; and the previously disclosed nonrecurring, non-operating gain related to the settlement of a CSK note receivable, net of tax, in the fourth quarter of 2010. | ||||
| (2) Amount for the twelve months ended March 31, 2011, excludes the tax impact of the write off of the balance of debt issuance costs related to the Company's previous credit facility, the termination of the Company's interest rate swap agreements and the previously disclosed nonrecurring, non-operating gain related to the settlement of a CSK note receivable in the fourth quarter of 2010. | ||||
| (3) Calculated as cost of sales for the last 12 months divided by average inventory. Average inventory is calculated as the average of inventory for the trailing four quarters used in determining the denominator. | ||||
| (4) Calculated as cost of sales for the last 12 months divided by average net inventory. Average net inventory is calculated as the average of inventory less accounts payable for the trailing four quarters used in determining the denominator. | ||||
| (5) Calculated as total inventory divided by store count at end of the reported period. | ||||
| (6) Calculated as accounts payable divided by inventory. | ||||
| (7) Calculated as the sum of long-term debt and current portion of long-term debt, divided by the sum of long-term debt, current portion of long-term debt and total shareholders' equity. | ||||
| (8) Calculated as the last 12 months net income, before the impact of the charge to write off the balance of debt issuance costs related to the Company's previous credit facility, net of tax; the charge related to the termination of the Company's interest rate swap agreements, net of tax; the previously disclosed charge related to the legacy CSK DOJ investigation, established in the third quarter of 2010; and the previously disclosed non-recurring, non-operating gain on the settlement of a CSK note receivable, net of tax, in the fourth quarter of 2010 divided by average shareholders' equity. Average shareholders' equity is calculated as the average of shareholders' equity for the trailing four quarters used in determining the denominator. | ||||
| (9) Calculated as the last 12 months net income, before the impact of the charge to write off the balance of debt issuance costs related to the Company's previous credit facility, net of tax; the charge related to the termination of the Company's interest rate swap agreements, net of tax; the previously disclosed charge related to the legacy CSK DOJ investigation, established in the third quarter of 2010; and the previously disclosed non-recurring, non-operating gain on the settlement of a CSK note receivable, net of tax, in the fourth quarter of 2010 divided by average total assets. Average total assets are calculated as the average total assets for the trailing four quarters used in determining the denominator. | ||||
| (10) Calculated as net cash flows provided by operating activities less capital expenditures for the period. | ||||
| (11) Calculated as total sales less jobber sales, divided by weighted-average square feet. Weighted-average sales per square foot are weighted to consider the approximate dates of store openings or expansions. | ||||
| (12) Calculated as total sales less jobber sales, divided by weighted-average stores. Weighted-average sales per store are weighted to consider the approximate dates of store openings or expansions. | ||||
| O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES | ||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION | ||
| (Unaudited) | ||
| Three Months Ended March 31, | ||
| (In thousands, except per share data) | 2011 | 2010 |
| GAAP net income | $ 102,474 | $ 97,476 |
| Write-off of debt issuance costs, net of tax | 13,337 | -- |
| Termination of interest rate swap agreements, net of tax | 2,613 | -- |
| Non-GAAP adjusted net income | $ 118,424 | $ 97,476 |
| GAAP diluted earnings per share | $ 0.72 | $ 0.70 |
| Write-off of debt issuance costs, net of tax | 0.09 | -- |
| Termination of interest rate swap agreements, net of tax | 0.02 | -- |
| Non-GAAP adjusted diluted earnings per share | $ 0.83 | $ 0.70 |
| Weighted-average common shares outstanding – assuming dilution | 142,866 | 139,612 |
| Twelve Months Ended | ||
| March 31, | ||
| (In thousands, except adjusted debt to adjusted EBITDAR ratio) | 2011 | 2010 |
| GAAP debt | $ 498,849 | $ 702,500 |
| Add: Letters of credit | 74,365 | 72,159 |
| Discount on senior notes | 3,441 | -- |
| Rent X 6 | 1,367,334 | 1,366,176 |
| Less: Premium on exchangeable notes | -- | 533 |
| Non-GAAP adjusted debt | $ 1,943,989 | $ 2,140,302 |
| GAAP net income | $ 424,371 | $ 342,139 |
| Legacy CSK DOJ investigation charge | 20,900 | -- |
| Gain on settlement of note receivable, net of tax | (7,215) | -- |
| Write-off of debt issuance costs, net of tax | 13,337 | -- |
| Termination of interest rate swap agreements, net of tax | 2,613 | -- |
| Non-GAAP adjusted net income | 454,006 | 342,139 |
| Add: Interest expense | 33,631 | 43,995 |
| Taxes, net of impact of gain on settlement of note receivable, debt issuance costs write-off and swap agreements termination | 278,189 | 211,050 |
| Adjusted EBIT | 765,826 | 597,184 |
| Add: Depreciation and amortization | 160,298 | 152,082 |
| Rent expense | 227,889 | 227,696 |
| Stock option compensation expense | 15,742 | 13,781 |
| Adjusted EBITDAR | $ 1,169,755 | $ 990,743 |
| Adjusted debt to adjusted EBITDAR | 1.7 | 2.2 |
CONTACT: Investor & Media Contact
Mark Merz (417) 829-5878