O'Reilly Automotive, Inc.

Greetings and welcome to the O'Reilly Automotive Incorporated first quarter 2023 earnings call. My name is Ali and I will be your operator for today's call. At this time, all participants are in a listen-only mode and later we will conduct a question and answer session. During the question and answer session, if you have a question, please press star 1 on your touchtone phone. I will now turn the call over to Mr. Jeremy Fletcher. Mr. Fletcher, you may begin.

Thank you, Ali. Good morning, everyone, and thank you for joining us. During today's conference call, we will discuss our first quarter 2023 results and our outlook for the remainder of the year. After our prepared comments, we will host a question and answer period. Before we begin this morning, I would like to remind everyone that our comments today contain forward-looking statements, and we intend to be covered by and we claim the protection under the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as estimate, may, could, will, believe, expect, would, consider, should, anticipate, project, plan, intend, or similar words. The company's actual results could differ materially from any forward-looking statements due to several important factors described in the company's latest annual report on Form 10-K for the year ended December 31st, 2022, and other recent SEC filings. The company assumes no obligation to update any forward-looking statements made during this call. At this time, I would like to introduce Greg Johnson.

Thanks, Jeremy. Good morning, everyone, and welcome to the O'Reilly Auto Parts first quarter conference call. Participating on the call with me this morning are our co-presidents, Brad Beckham and Brent Kirby, and Jeremy Fletcher, our chief financial officer. Greg Hensley, our executive chairman, and David O'Reilly, our executive vice chairman, are also present on the call. I'd like to begin our call today by congratulating Team O'Reilly on a strong start to 2023. Delivering such consistent, strong results requires an unrelenting commitment to excellent customer service from our team of over 86,000 professional parts people across the US and Mexico. I am extremely grateful for the hard work our team puts in each and every day. Our first quarter results were highlighted by a robust 10.8% increase in comparable store sales. as our team continued to deliver outstanding growth on top of strong performance in the prior year. These top line results exceeded our expectations and demonstrate O'Reilly's strength on both the professional and DIY sides of our business. Team O'Reilly charged out of the gate this year, highly motivated to execute on our initiatives to invest in our people, further refine and enhance our business tools, and aggressively grow our market share. We have been very pleased with the momentum our teams have generated in 2023. Our team members and our culture remain our greatest assets and our ongoing commitment to build on both of these competitive advantages is paying clear dividends through the sustained strong results delivered quarterly, quarter after quarter. Team O'Reilly remains highly focused on expense control and prudent capital deployment. enabling us to translate our sales gains and growth into outstanding returns for our shareholders. For the first quarter, our diluted earnings per share of $8.28 represents a 15% increase over the prior year. We are increasing our full year 2023 EPS guidance to a range of $36.50 to $37 even. reflecting our first quarter outperformance and shares repurchase since our last call. At the midpoint of the revised range, we now expect our full year EPS to increase 10% over 2022. Before I turn the call over to Brad and Brent to provide additional detail on the first quarter, I'd like to reiterate our confidence in the favorable outlook for both our industry and our company for the balance of 2023. We view our first quarter top line results as a clear reflection of the strong demand backdrop in our industry. We also remain firm in our belief that consumers will continue to prioritize the maintenance and repair of their existing vehicles in the face of economic pressures in order to avoid taking on a payment for a higher price, newer vehicle. This value proposition compelling consumers to reinvest in their existing vehicles continues to be further supported by elevated new and used vehicle prices. Encouragingly, the U.S. consumer remains resilient with low unemployment rates, wage growth, and stabilization in fuel prices, supporting both consumer health and the steady growth in miles driven. While we still maintain an element of caution with regard to the outlook for the overall U.S. economy and potential for heightened economic pressures, we believe the current market dynamics combine to provide a strong backdrop for demand in our industry. Even more importantly, we believe our strategic competitive advantages uniquely position our company to capitalize on the positive fundamentals of the automotive aftermarket and grow at a faster rate than the industry as a whole. To wrap up my comments, I want to again thank Team O'Reilly for continuing to uphold our culture of excellent customer service. Your commitment to our culture, our fellow team members, and our customers drives our success and makes you the best team in the business. Lastly, I would also like to extend our gratitude to our shareholders. This past week marked our 30th anniversary as a public company with our initial public offering in April of 1993. The O'Reilly family had the wisdom and foresight to recognize the benefits of obtaining capital through the public markets to grow our business as well as extending ownership opportunities to our team members to allow us all to share in the company's success. Our incredible financial performance as a public company is a true testament to the dedication of our team. In each of the 30 years since 1993, our team has delivered growth in both sales and EPS, driving returns to our shareholders in excess of 22% per year on a compounded annual basis. We see a bright future for O'Reilly and are thankful for the trust and confidence our shareholders have placed in the O'Reilly team over the years. I'll now turn the call over to Brad Beckham. Brad?