1. Alex Eccles, Nicholas Dalcortivo, Nick Gragtmans,, John Hansen, Julianne Howerton O’R EILLY A UTOMOTIVE, I NC.

2. H ISTORY Working for Link Motor Supply as manager, Charles Francis O’Reilly and his son, Charles H. O’Reilly, helped Link become the leading auto parts store in their area. When Link made plans for the retirement of O’Reilly and the transfer of his son, the two founded their own company: O’Reilly Automotive, Inc. The 13-employee company that opened in Missouri in 1957 grew to more than 4,100 stores in 42 states.

3. I NDUSTRY AND P RODUCTS Operates in the automobile parts and supplies retail industry which is classified under the specialty retail industry for the Fortune 500 The store offers DIY and professional service provides customers a wide selection of brand name, house brands and private label products for domestic and imported automobiles, vans and trucks

4. S IZE In 2010 O”Reilly finished integrating the CSK Auto chain including about 1,300 stores making it the third-largest auto parts retailer in the nation Opened 170 new stores in 2011, 180 in 2012, and 190 in 2013 Plans to open 200 stores in 2014 Currently operates stores in 42 states

5. S ALES Over the past three years, sales have increased from 5,788,816 to 6,649,237, a total of 15% Net income increased from 507,673 in 2011 to 670.292 in 2013- a total of 32% The company benefits from overall mileage driven on vehicles and also useful life of vehicles driven. In the US, the scrappage rates have risen 16% from 2002 to 2012 leading to a greater percentage of total miles driven are outside of manufacturer warranty, leading to greater store revenue.

6. O’Reilly uses a comparative balance sheet with information presented from the past two years The balance sheet is classified, meaning the assets, liabilities, and stockholders equity is separated into current and non-current sections- allowing the document to be easily understandable for its readers who use this information to make financial decisions T HE B ALANCE S HEET Amount (In thousands)% Of Total Assets Current assets2,835,20146.7% Property, plant & equipment3,606,83759.5% Other long-term assets3,232,00753.3% Current liabilities2,423,01039.9% Longer-term liabilities1,476,85424.3% Contributed Capital1,119,98818.5% Retained Earnings846,33314.0%

7. ➢ Market Value: O’Reilly issued 1,506,000 of shares in 2013 under stock options and issuances from employee benefits for a total of $70,408,000 O’Reilly stock prices for one year O’Reilly stock prices for five years

8. O’Reilly Automotive, Inc. Advanced Auto Parts Current YearPrevious YearCurrent YearPrevious Year Current Ratio1.172.521.441.24 # Days Sales to Collect Accounts Receivable 6.9857.6214.2610.88 Inventory Turnover Ratio1.411.442.542.69 Debt to Assets Ratio.676.6330.7280.738 Return on Equity32.9%23.65%25.8%32.02% Net Profit Margin10.07%9.47%6.03%6.3% Gross Profit Margin50.67%50.1% 49.9% Dividend Payout Ratio000.004460.0454 Quality of Income Ratio1.3552.1371.3921.768 Asset Turnover Ratio1.1261.101.1671.345 Fixed Asset Turnover2.872.8745.0584.804

9. C OMPARED TO A DVANCED A UTO P ARTS ➢ Net Sales O’Reilly Automotive, Inc.: $6,649,237 Advanced Auto Parts: $6,493,814 Change In Net Income O’Reilly Automotive, Inc. Advanced Auto Parts Dollar AmountPercentageDollar AmountPercentage 2012$585,74615.4%$387,670(1.8%) 2013$670,29214.4%$391,7581.1%

10. Past five years stock market prices of O’Reilly (blue) compared to Advanced Auto Parts (red)

11. O’R EILLY ’ S F INANCIAL P OSITION 7% increase in sales from 2011 to 2012 and 8% increase in sales from 2012 to 2013 Opened 190 new stores in 2013 alone, indicating the companies strong financial position and optimistic view of the future Increase of cash flow from investing activities (buying new property and equipment) from $317,407,000 to $388.754,000 showing the company is purchasing assets in the hopes of them bringing in additional revenues Plans to open another 200 stores in the U.S. in 2014 Based on O’Reilly’s recent success and their optimistic outlook, we recommend to buy their stock. They have a steady past where they are growing consistently and are confident in their future.