O Reilly Auto Parts to Leave the Alliance and O Reilly
Announces New Parts City Auto Parts Jobber Program
SPRINGFIELD, Mo.–(BUSINESS WIRE)–June 04, 2007 O Reilly Auto Parts ( O Reilly ) (NASDAQ: ORLY) and the Aftermarket Auto Parts Alliance ( Alliance ) announce with great regret that after almost 30 years of affiliation O Reilly will be terminating its shareholder status effective 12/31/07.
David O Reilly, Chairman of O Reilly Auto Parts, and longtime board member of the Alliance, stated: This is a very tough decision for our company. We have many great memories and relationships in the Alliance. We have benefited in countless ways through our association with some of the very best operators in the business. Our company has reached a point where it has become very difficult for us to maintain product line compliance which is the core driver of the association s effectiveness.
Dick Morgan, president of the Alliance, stated: We certainly hate to see the O Reilly s leave our association. They have been a part of Auto Value, and then the Alliance, for almost 30 years. The separation is on a completely amiable and mutual basis, and it simply represents their need to do what is in the interest of their shareholders, and for the Alliance to continue its strong commitment to our vendors with regard to product conformity by our shareholders.
With regard to the independent jobber marketing programs, which O Reilly has over 200 locations affiliated with, O Reilly CEO Greg Henslee states: We regret having to move on from the Auto Value/Bumper to Bumper affiliation, but are announcing at this time a new jobber marketing program for all of our independent jobbers. It will be called Parts City Auto Parts and will have strong ties to the O Reilly Auto Parts programs, advertising and appearance. We are very excited to use this change as an opportunity to strengthen our direct relationship with our jobbers, and to offer them a closer tie to the O Reilly concept of selling auto parts.
COO of O Reilly, Ted Wise, said that the plans are to introduce the entire program to the jobbers within the next two weeks and we plan to have the entire system converted by year end. This will include new signage, interior decor package, installer programs, and the whole gamut. We believe that once our jobber customers hear the full scope and strength of the program that they will also be very excited about the future potential of this new opportunity.
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 installer markets. Founded in 1957 by the O Reilly family, the Company operated 1,687 stores in the states of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Virginia, Wisconsin and Wyoming as of March 31, 2007.
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. These statements can be identified 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 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, our ability to hire and retain qualified employees, risks associated with the integration of acquired businesses, 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 sections of the Company s Form 10-K for the year ended December 31, 2005, for more details.
CONTACT: O Reilly Automotive, Inc. Greg Henslee, 417-862-3333 or Tom McFall, 417-862-3333