EXHIBIT 99.1

O'Reilly Automotive, Inc. Reports Second Quarter 2011 Results

• First 15.0% operating margin quarter
• 19% increase in quarterly adjusted diluted earnings per share
• 137% increase in year-to-date free cash flow to $411 million
• Second quarter comparable store sales increase of 4.4%

SPRINGFIELD, Mo., July 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 second quarter ended June 30, 2011.

2^nd Quarter Financial Results

Sales for the second quarter ended June 30, 2011, increased $98 million, or 7%, to $1.48 billion from $1.38 billion for the same period one year ago. Gross profit for the second quarter increased to $719 million (or 48.6% of sales) from $673 million (or 48.7% of sales) for the same period one year ago, representing an increase of 7%. Selling, general and administrative expenses ("SG&A") for the second quarter, increased to $496 million (or 33.5% of sales) from $476 million (or 34.5% of sales) for the same period one year ago, representing an increase of 4%. Operating income for the second quarter, increased to $222 million (or 15.0% of sales) from $181 million (or 13.1% of sales) for the same period one year ago, representing an increase of 23%.

Net income for the second quarter ended June 30, 2011, increased $34 million, or 34%, to $134 million (or 9.0% of sales) from $100 million (or 7.2% of sales) for the same period one year ago. Diluted earnings per common share for the second quarter increased 35% to $0.96 on 140 million shares versus $0.71 for the same period one year ago on 141 million shares.

As previously announced, the Company's results for the three months ended June 30, 2010, included a charge related to the legacy United States Department of Justice ("DOJ") investigation of CSK Auto Corporation ("CSK") into CSK's pre-acquisition historical accounting practices. A one-time monetary penalty of $20.9 million will be paid to the DOJ upon completion of an agreement among the DOJ, CSK and O'Reilly. In anticipation of execution of the agreement, the Company accrued $15.0 million during the second quarter of 2010 and an additional $5.9 million during the third quarter ended September 30, 2010.

Adjusted operating income for the second quarter ended June 30, 2011, increased 13%, to $222 million (or 15.0% of sales) from $196 million (or 14.2% of sales), which was adjusted for the impact of the $15 million charge related to the legacy CSK DOJ investigation discussed above, during the second quarter of 2010. Adjusted diluted earnings per common share for the second quarter ended June 30, 2011, increased 19%, to $0.96 from $0.81, which was adjusted for the impact of the charge related to the legacy CSK DOJ investigation discussed above, during the second quarter of 2010. The table below outlines the impact of the legacy CSK DOJ investigation charge for the quarters ended June 30, 2011 and 2010 (amounts in thousands, except per share data):

"We are pleased to report another quarter of solid results and double-digit earnings growth. Our second quarter results are highlighted by a 19% increase in diluted earnings per share, on an adjusted basis, and a record high operating margin of 15.0%," Greg Henslee, O'Reilly's CEO and Co-President stated. "We attribute this outstanding operating margin performance to our relentless focus on expense control, which resulted in a 95 basis point improvement in SG&A as a percentage of sales. Our stores continue to generate solid sales performance, driven by excellent customer service. I would like to congratulate Team O'Reilly for the outstanding results we've accomplished since our acquisition of CSK three years ago – none of which would have been possible without our Team's commitment to our Company and our customers."

Ted Wise, COO and Co-President, commenting on the Company's second quarter, stated, "During the quarter, we opened 44 new stores, which brings our total to 99 new store openings for the first half of 2011, keeping us on track to reach our goal of 170 net, new store openings in 2011. Our strong performance is reflective of the hard work and dedication of our 49,000 Team Members.  I would like to thank each of them for all of their contributions to our Company's success."

Year-to-Date Financial Results

Sales for the first six months of 2011 increased $201 million, or 8%, to $2.86 billion from $2.66 billion for the same period one year ago. Gross profit for the first six months of 2011 increased to $1.39 billion (or 48.5% of sales) from $1.29 billion (or 48.5% of sales) for the same period one year ago, representing an increase of 8%. SG&A for the first six months of 2011 increased to $970 million (or 33.9% of sales) from $926 million (or 34.8% of sales) for the same period one year ago, representing an increase of 5%. Operating income for the first six months of 2011 increased to $419 million (or 14.6% of sales) from $350 million (or 13.1% of sales) for the same period one year ago, representing an increase of 20%.

Net income for the first six months of 2011 increased $39 million, or 20%, to $236 million (or 8.3% of sales) from $197 million (or 7.4% of sales) for the same period one year ago. Diluted earnings per common share for the first six months of 2011 increased 19% to $1.67 on 141 million shares versus $1.40 for the same period one year ago on 140 million shares.

The Company's results for the first six months of 2011 included one-time charges associated with the new financing transactions 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 ($13 million, net of tax) and a charge related to the termination of the Company's interest rate swap agreements in the amount of $4 million ($3 million, net of tax).  The Company's results for the six months ended June 30, 2010, included a $15 million charge related to the legacy CSK DOJ investigation discussed above. 

Adjusted operating income for the first six months of 2011, increased 15% to $419 million (or 14.6% of sales) from $365 million (or 13.7% of sales), which was adjusted for the impact of the charge related to the legacy CSK DOJ investigation discussed above, during the first six months of 2010. Adjusted diluted earnings per common share, excluding the impact of the charges related to the Company's new financing transactions during the first six months of 2011 and the legacy CSK DOJ investigation charge during the first six months of 2010, increased 18% to $1.78 for the first six months of 2011 from $1.51 for the same period one year ago. The table below outlines the impact of the charges related to the new financing transactions and the legacy CSK DOJ investigation charge for the six months ended June 30, 2011 and 2010 (amounts in thousands, except per share data):

Mr. Henslee added, "We are very pleased to report a 137% increase in our year-to-date free cash flow, driven by our continuing efforts to improve our accounts payable to inventory ratio, which ended the quarter at 55% versus 44% last year. During the first half of 2011, we continued to enhance shareholder value by opportunistically executing our share repurchase program and buying back 5.9 million of our shares. We look forward to the second half of 2011 and continuing to focus on strategic goals that will drive long-term value."

"July 11 marked the third anniversary of our acquisition of CSK," commented Mr. Wise. "We have continued work on the final stage of our physical CSK store conversion, which includes completing all remaining exterior signage and interior décor package changeovers. We now have the inventory levels, distribution support, market competitive pricing and O'Reilly-only branded advertising and marketing program necessary to build the O'Reilly Brand from coast to coast."

Share Repurchase Program

On January 11, 2011, the Company's Board of Directors authorized a $500 million share repurchase program. During the second quarter ended June 30, 2011, the Company repurchased 3.3 million shares of its common stock at an average price per share of $58.44, for a total investment of $193 million. During the first six months of 2011, the Company repurchased 5.9 million shares of its common stock at an average price per share of $57.16, for a total investment of $338 million. Subsequent to the end of the second quarter and through the date of this release, the Company did not repurchase a material number of shares of its common stock. As of the date of this release, the Company had approximately $162 million remaining under its share repurchase program.

2^nd Quarter and Year-to-Date 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 4.4% for the second quarter ended June 30, 2011, versus 7.9% for the same period one year ago. Comparable store sales increased 5.0% for the first six months of 2011, versus 7.4% for the same period one year ago.

3 ^rd Quarter and Updated Full-Year 2011 Guidance

The table below outlines the Company's guidance for selected third quarter and updated full-year 2011 financial data:

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 operating income, 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, the charge related to the legacy CSK DOJ investigation, 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, July 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 website at 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 73958598. A replay of the call will 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 3,657 stores in 39 states as of June 30, 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 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.

 

CONTACT: Investor & Media Contact
         Mark Merz (417) 829-5878