O'Reilly Automotive Inc (ORLY) 2020 Q1 法說會逐字稿

Welcome to the O'Reilly Automotive, Inc. First Quarter 2020 Earnings Conference Call. My name is Latif, and I will be your operator for today's call. (Operator Instructions)

歡迎參加歐萊利汽車公司2020年第一季財報電話會議。我是拉蒂夫，將擔任本次電話會議的接線生。 （接線生操作說明）

I will now turn the call over to Tom McFall. Mr. McFall, you may begin.

現在我將把電話交給湯姆·麥克福爾先生。麥克福爾先生，您可以開始了。

Thank you, Latif. Good morning, everyone, and thank you for joining us. During today's conference call, we'll discuss our first quarter 2020 results and provide a business update on the company's actions in response to the impact for the novel coronavirus, COVID-19. After our prepared comments, we'll host a question-and-answer period.

謝謝拉蒂夫。大家早安，感謝各位參加今天的電話會議。在今天的會議中，我們將討論2020年第一季的業績，並就公司應對新型冠狀病毒肺炎（COVID-19）疫情影響所採取的措施提供業務最新進展。在我們發言結束後，我們將進行問答環節。

Before we begin this morning, I'd 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 (technical difficulty) 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 31, 2019, and other recent SEC filings. The company assumes no obligation to update any forward-looking statements made during this call.

在今天上午會議開始之前，我想提醒各位，我們今天的發言包含前瞻性陳述。我們擬受《私人證券訴訟（技術難題）》中關於前瞻性陳述的「安全港」條款保護，並聲明該條款適用於因公司截至2019年12月31日止年度的10-K表格年度報告及其他近期提交給美國證券交易委員會（SEC）的文件中所述的若干重要因素而作出的任何前瞻性陳述。本公司不承擔更新本次電話會議中任何前瞻性陳述的義務。

At this time, I'd like to introduce Greg Johnson.

在此，我謹向大家介紹格雷格·約翰遜。

Thanks, Tom. Good morning, everyone, and welcome to the O'Reilly Auto Parts first quarter conference call. Participating on the call with me this morning are Jeff Shaw, our Chief Operating Officer and Co-President; and Tom McFall, our Chief Financial Officer. David O'Reilly, our Executive Chairman; and Greg Henslee, our Executive Vice Chairman, are also present on the call. Since we reported our fourth quarter 2019 results and set our full year 2020 guidance on February 5, it would be an understatement to say that the world has experienced a dramatic change with the onset of the COVID-19 pandemic.

謝謝，湯姆。大家早安，歡迎參加歐萊利汽車配件公司第一季財報電話會議。今天早上與我一同參加會議的有：營運長兼聯席總裁傑夫·肖，財務長湯姆·麥克福爾。執行董事長大衛·歐萊利和執​​行副董事長格雷格·亨斯利也出席了會議。自2月5日我們公佈2019年第四季業績並發布2020年全年業績預期以來，新冠肺炎疫情的爆發為世界帶來了翻天覆地的變化，這絕非誇張。

As I begin my comments today, it's appropriate to start our discussion on the impact we have felt facing this uniquely challenging time in both the life of our country and for our customers and team members. First and most importantly, I want to express the profound gratitude I have for our dedicated team of hard-working professional parts people. Never have our culture values of dedication, hard work and professionalism meant more. Simply put, the parts and services we provide to our customers are absolutely crucial, whether that means health care providers, first responders, people working in essential industries, or everyday customers who rely on their vehicles to meet their family's basic needs.

今天，在我發言的開篇，我想先談談我們國家、客戶和團隊成員在這段充滿挑戰的特殊時期所感受到的影響。首先，也是最重要的，我要對我們敬業且勤奮的專業零件團隊表達由衷的感謝。我們秉持的奉獻、勤奮和專業精神，從未像現在這樣意義非凡。簡而言之，我們為客戶提供的零件和服務至關重要，無論他們是醫護人員、急救人員、第一線工作者，還是依靠車輛滿足家庭基本需求的普通消費者。

Our dedicated team members in our stores, distribution centers and offices have demonstrated extraordinary commitment, flexibility and resilience in responding to the COVID-19 crisis by adjusting how we operate our business to keep all of our stores open to take care of our customers in the safest way possible. I want to thank each member of Team O'Reilly for your unwavering commitment to providing excellent customer service during these challenging times.

我們門市、配送中心和辦公室的敬業團隊成員在應對新冠疫情危機時展現了非凡的奉獻精神、靈活性和韌性，他們調整了業務運作方式，確保所有門市正常營業，以盡可能安全的方式服務顧客。我衷心感謝奧萊利團隊的每一位成員，感謝你們在這充滿挑戰的時期始終如一地提供卓越的客戶服務。

We've undertaken many measures during the course of the COVID-19 pandemic to promote the continued health and safety of our customers and team members, while keeping all of our stores open to service our customers. From the beginning of the response to COVID-19, our industry was deemed to be an essential service in the executive orders that have been issued by the various governmental entities, including the federal memorandum issued March 16. Since that time, we have closely monitored and adapted to the evolving information, recommendations and requirements issued by the Centers for Disease Control and Prevention, World Health Organization and state and local governmental agencies.

在新冠肺炎疫情期間，我們採取了多項措施，以保障顧客和員工的健康與安全，同時確保所有門市正常營業，為顧客提供服務。自疫情應對之初，各級政府機構（包括3月16日發布的聯邦備忘錄）發布的行政命令均將我們的行業認定為必要服務。此後，我們密切關注並積極回應美國疾病管制與預防中心、世界衛生組織以及州和地方政府機構發布的最新資訊、建議和要求。

The extensive actions we have taken company-wide include significantly increased cleaning and sanitation efforts, the implementation of social distancing practices and the ongoing adjustments of those practices as new recommendations and regulatory guidelines have been issued. We're providing our team members with necessary personal protective equipment and are working hard to continue to replenish supplies, despite challenges in sourcing these products. We have also put in place programs to relax attendance policies as well as advanced sick time to help team members who are sick or need time away to support family members. In addition to all these steps, we have also implemented measures to change how we interact with our customers in our stores, which Jeff will cover in more detail in his prepared comments. As a result of these efforts, all of our stores remain open with only limited disruptions for temporary closures in a few instances where we have determined more extensive cleaning was warranted.

我們已在全公司範圍內採取了廣泛的措施，包括大幅加強清潔和消毒工作，實施保持社交距離的措施，並根據新建議和監管指南的發布不斷調整這些措施。我們為團隊成員提供必要的個人防護裝備，並努力補充物資，儘管採購這些產品面臨挑戰。我們也制定了放寬考勤政策和提前病假的方案，以幫助生病或需要請假照顧家人的團隊成員。除了所有這些措施外，我們還採取措施改變在門市與顧客的互動方式，傑夫將在他準備好的演講稿中詳細介紹這些措施。由於這些努力，我們所有的門市都保持營業，僅在少數情況下因我們認為需要進行更徹底的清潔而暫時關閉，導致營業中斷的情況有限。

Now I'd like to provide a little more color on the cadence of our sales in the first quarter and the impact we began to see as a result of COVID-19. As noted in our earnings release, sales in January were below our expectations due to the mild winter weather with headwinds in categories such as batteries and antifreeze and that weather headwind persisted in February. As we entered March, sales results strengthened in conjunction with the onset of spring weather, and we were anticipating a solid finish to our quarter. We saw these solid sales trends until the COVID-19 stay-at-home recommendations and orders began to be issued in the middle of March.

現在我想更詳細地介紹一下我們第一季的銷售節奏以及新冠疫情對我們造成的影響。正如我們在財報中提到的，由於冬季氣候溫和，電池和防凍液等類別受到不利影響，1月份的銷售額低於預期，而這種不利影響在2月份仍然存在。進入3月份，隨著春季的到來，銷售業績回升，我們預計本季將取得穩健的收官。這種良好的銷售趨勢一直持續到3月中旬，之後新冠疫情的居家隔離建議和命令開始發布。

Within a short period of time, these orders took effect across virtually all of our market areas, resulting in a somewhat similar headwind throughout our store base. As we noted in our release yesterday, the negative impact caused by COVID-19 beginning in the middle of March and extending through the first 2 weeks of April resulted in a decrease in comparable store sales of 13% for that 4-week time period. The lack of beneficial harsh weather and the significant impact of COVID-19 in the last 2 weeks of March drove our comparable store sales decline of 1.9% in the first quarter.

在短時間內，這些指令幾乎涵蓋了我們所有的市場區域，導致我們所有門市都面臨類似的挑戰。正如我們昨天發布的公告中所述，新冠疫情從3月中旬開始，一直持續到4月的前兩週，其負面影響導致我們同店銷售額在這段時間內下降了13%。 3月最後兩週，由於缺乏有利的惡劣天氣以及新冠疫情的嚴重影響，導致我們第一季的同店銷售額下降了1.9%。

Sales over the past week have reflected a benefit from the receipt of our customers of economic impact payments under the Coronavirus Aid, Relief, and Economic Security or CARES Act. However, we are uncertain as to the magnitude and duration of this benefit we will receive from these onetime stimulus payments and as a result are being cautious on how we plan for our business moving forward. The composition of our comparable store sales growth for the first, roughly, 2.5 months of the quarter was similar to the trend we have seen for several quarters with our professional business outperforming our DIY business, driven by continued strong performance in key undercar hard part categories. Likewise, average ticket increases continue to drive our comp results, in line with our expectations as ticket counts were pressured in January and February as a result of the mild winter weather.

過去一週的銷售情況反映出，我們的客戶收到了根據《新冠病毒援助、救濟和經濟安全法案》（CARES法案）發放的經濟影響補助金，這帶來了一定的收益。然而，我們尚不確定這些一次性刺激性補助金的規模和持續時間，因此，我們對未來的業務規劃持謹慎態度。本季前約兩個半月的同店銷售成長組成與過去幾季的趨勢相似，專業業務的表現優於DIY業務，這主要得益於關鍵底盤硬部件品類的持續強勁表現。同樣，平均客單價的成長也持續推動了同店銷售業績的提升，這與我們的預期相符，因為1月和2月由於冬季氣候溫和，客單價受到一定影響。

As we began to face the headwinds from COVID-19 in the middle of March, we saw pressure on both sides of our business as consumers sheltered at home and miles driven was pressured. However, the impact was more severe for our professional business as we believe the demographics served by our professional customers is more likely to accommodate working from home than a typical DIY customer. The escalation of the COVID-19 crisis and the severity of the slowdown in demand in our business at the time of our first quarter was obviously unanticipated -- I'm sorry, at the end of our first quarter was obviously unanticipated, and a significant impact on our operating profit and earnings per share results, both of which fell below our guided ranges. However, with an operating profit in excess of 17% of sales, we remain solidly profitable.

三月中旬，隨著新冠疫情帶來的不利影響開始顯現，我們的業務在各方面都面臨壓力：消費者居家隔離，出行量減少。然而，疫情對我們的專業業務影響更為嚴重，因為我們認為，與一般DIY客戶相比，我們的專業客戶群更有可能適應居家辦公室。新冠疫情的升級以及第一季末業務需求的急劇下滑顯然出乎我們的意料——抱歉，應該是第一季末，這嚴重影響了我們的營業利潤和每股收益，兩項數據均低於預期。不過，由於營業利潤率超過銷售額的17%，我們仍維持穩健的獲利能力。

As the duration of this challenging environment is unknown, we have taken prudent steps to ensure the continued stability and financial flexibility of our company, including appropriate actions to reduce costs, preserve cash and ensure adequate liquidity, which Jeff and Tom will discuss in more detail in their prepared comments. We are confident in our ability to protect the financial health of our company as we navigate through the current challenging environment. But we also recognize that we operate a business with a high fixed cost structure, and we'll continue to see pressure to SG&A and operating results in the short term.

由於當前充滿挑戰的環境持續時間尚不明朗，我們已採取審慎措施，以確保公司持續穩定和財務靈活性，包括採取適當措施降低成本、保留現金並確保充足的流動性。傑夫和湯姆將在事先準備好的演講稿中對此進行更詳細的闡述。我們有信心在應對當前挑戰性環境的同時，維護公司的財務健康。但我們也意​​識到，我們的業務固定成本結構較高，短期內銷售、管理及行政費用及經營績效仍將面臨壓力。

For the quarter, our gross margin of 52.3% was below our expectations as we saw deleverage of fixed distribution cost and a negative mix impact from the sluggish sales of higher-margin cold weather items. Outside of mix differences, product margins continue to be as expected, and the pricing environment remains rational. As we reported in our press release last night, we have withdrawn our 2020 operating cash flow and capital expenditures guidance as we continue to evaluate and adjust to the current environment. This isn't a step we've taken lightly. But simply put, we just don't know how long the current crisis will last or what the road ahead will look like as each of the communities we serve navigates the ongoing crisis and begins to plan the reopening process.

本季度，我們的毛利率為52.3%，低於預期，主要原因是固定分銷成本槓桿化程度降低，以及高利潤率的冬季商品銷售疲軟對產品組合造成了負面影響。除產品組合差異外，產品利潤率仍符合預期，定價環境也維持合理。正如我們昨晚在新聞稿中所述，我們已撤回2020年營運現金流和資本支出指引，因為我們將繼續評估並調整以適應當前環境。我們做出這項決定並非輕率之舉。簡而言之，我們無法預測當前的危機將持續多久，也無法預測我們所服務的各個社區在應對這場持續危機並開始規劃重啟進程後，未來的道路將會如何。

While we feel that withdrawing our guidance is the prudent decision because of the significant uncertainty of the current environment, we believe even more strongly that our industry and our business will rebound successfully and return to robust growth as we exit this crisis. The challenges presented by COVID-19 are unique and that they have temporarily changed consumer behavior. However, these changes are not structural or permanent, and we will come out of this public health crisis position for future success.

儘管我們認為鑑於當前環境存在諸多不確定性，撤回業績指引是審慎之舉，但我們更加堅信，隨著危機的結束，我們的行業和業務必將成功復甦，重回強勁增長軌道。新冠疫情帶來的挑戰前所未有，也暫時改變了消費者的行為。然而，這些改變並非結構性或永久性的，我們將從這場公共衛生危機中走出來，為未來的成功奠定基礎。

While the lasting impact of economic damage could persist well after the more restricted stay-at-home measures are lifted, we are well positioned to rebound quickly and return to solid growth, even if the broader economy is still under pressure. A significant majority of the demand in the automotive aftermarket is nondiscretionary in nature as the parts we supply to our customers are necessary for the operation of their vehicles. Historically, we have performed well in different macroeconomic environments as consumers defer the purchase of new automobiles and invest in maintaining and repairing their existing vehicles at higher mileages. And we believe our ability to keep all of our stores open and operating, positions us well for the economy -- as the economy begins to reopen.

儘管經濟損失的持久影響可能會在更嚴格的居家隔離措施解除後持續很長時間，但我們已做好充分準備，即使整體經濟仍面臨壓力，也能迅速反彈並恢復穩健增長。汽車售後市場的大部分需求屬於非必需品，因為我們提供給客戶的零件是車輛運作所必需的。從歷史經驗來看，無論宏觀經濟環境如何，我們都表現良好，因為消費者會推遲購買新車，轉而投資現有車輛的維護和維修，尤其是在行駛里程較高的情況下。我們相信，我們能夠保持所有門市正常營業，這將使我們在經濟開始重啟時佔據有利地位。

As I wrap up my prepared comments, I want to again thank Team O'Reilly for their resolving commitment to our customers. This current crisis is unlike anything any of us have seen in our careers, but I am extremely proud of the resilience of our team and their willingness to go the extra mile to take care of our customers, especially now when it matters so much.

在我結束事先準備好的演講之際，我想再次感謝奧萊利團隊對客戶的堅定承諾。當前的危機是我們每個人職業生涯中前所未見的，但我為我們團隊的韌性以及他們竭盡全力照顧客戶的意願感到無比自豪，尤其是在當下這個至關重要的時刻。

I'll now turn the call over to Jeff Shaw. Jeff?

現在我把電話轉給傑夫·肖。傑夫？

Thanks, Greg, and good morning, everyone. I'd like to begin my comments today by echoing what Greg has already said about the great contributions of our team over the last several weeks in responding to the COVID-19 crisis. Our team of professional parts people in our stores, DCs and headquarters have a long track record of selflessly responding quickly in times of natural disasters, including hurricanes, tornadoes, wildfires and many, many other challenging situations. While this is certainly an unprecedented public health crisis, I see the same resolve and steadfast commitment in all the efforts our team has taken to respond to COVID-19 and keep taking care of our customers. I'm extremely proud and grateful of the sacrifices our team members have made to keep our stores open and operating to meet our customers' critical needs during this crisis.

謝謝格雷格，大家早安。今天我想先重申格雷格剛才所說的，我們團隊在過去幾週應對新冠肺炎疫情危機中做出了巨大貢獻。我們門市、配送中心和總部專業的零件人員團隊，在應對颶風、龍捲風、野火以及其他各種挑戰性自然災害時，都展現出了無私奉獻、迅速響應的優良傳統。雖然這次疫情無疑是一場前所未有的公共衛生危機，但我看到了我們團隊在應對新冠肺炎疫情和繼續服務客戶方面所展現出的同樣決心和堅定承諾。我為我們的團隊成員在此次危機期間為確保門市正常營業、滿足客戶的關鍵需求所做的犧牲感到無比自豪和感激。

Excellent customer service has always been at the core of our culture. And if you've ever spent much time in one of our stores, it's easy to see how we -- highly with you rolling up our sleeves, interacting with our DIY customers at the parts counter or with our professional customers in their shops. In light of the information and recommendations by the CDC, WHO and other public agencies, we've taken extensive actions to adjust our operations to make sure our interactions with our customers are as safe as possible.

卓越的客戶服務一直是我們企業文化的核心。如果您曾在我們的門市待過一段時間，您很容易就能感受到我們對您的重視——無論是捲起袖子與DIY客戶在零件櫃檯互動，還是與專業客戶在其車間交流。鑑於美國疾病管制與預防中心（CDC）、世界衛生組織（WHO）及其他公共機構發布的資訊和建議，我們已採取多項措施調整運營，以確保與客戶的互動盡可能安全。

Inside our stores, we've added signage, counter markers, floor markers and other measures to facilitate maintaining the recommended distance. We're leveraging our omnichannel investments by enhancing our Buy Online, Pick Up In-Store functionality to include curbside pickup, which has been very well received by our customers. We've also modified store services, such as battery and check engine light testing to ensure appropriate social distancing. For sure, the changes we've made to our business to protect the health and safety of our customers and team members has changed the way we interact with our customers, but we're extremely pleased with how well our teams have adapted to the guidance and still provided excellent customer service.

在店內，我們增設了標誌、櫃檯標誌、地面標誌和其他措施，以幫助顧客保持建議的社交距離。我們充分利用全通路投資，優化了「線上購買，店內取貨」功能，新增了路邊取貨服務，這項服務受到了顧客的熱烈歡迎。此外，我們還調整了部分門市服務，例如電池和引擎故障燈檢測，以確保適當的社交距離。誠然，為了保障顧客和團隊成員的健康與安全，我們對業務進行了許多調整，這無疑改變了我們與顧客的互動方式。但我們非常欣慰地看到，我們的團隊能夠如此迅速地適應這些指導方針，並且仍然提供卓越的客戶服務。

Just as we made adjustments to how we interact with our customers, we've also begun to take the difficult steps to adjust our operations and reduce costs to respond to the lower level of business we've seen as a result of COVID-19. As we began to see the impact across our markets in March, we started to more aggressively manage our store payroll and staffing levels. We also implemented a reduction of store operating hours and began closing most stores at 7:30 p.m. versus the normal closing time of 9 or 10:00 p.m. While we don't like the inconvenience to our customers of an earlier closing time, we felt this was an appropriate move to more effectively deploy payroll and operating costs, given the changes we saw taking place broadly across retail.

正如我們調整了與客戶的互動方式一樣，我們也開始採取艱難的措施來調整營運並降低成本，以應對新冠疫情導致的業務下滑。 3月份，隨著疫情對我們各個市場的影響逐漸顯現，我們開始更積極地管理門市的薪資和人員配置。此外，我們也縮短了門市的營業時間，並將大部分門市的關門時間從平常的晚上9點或10點提前至晚上7:30。雖然我們不希望提前關門給顧客帶來不便，但考慮到零售業普遍面臨的變化，我們認為這是更有效地利用工資和營運成本的恰當之舉。

We've also reduced distribution and headquarter expenses to bring them more in line with the lower sales volumes. The combined steps we took in March to prudently manage our expenses resulted in keeping our SG&A per store flat, after excluding the impact of an extra day in the quarter from weekday and a positive year-over-year benefit related to deferred compensation expense. However, the combination of the significant sales shortfall occurring late in the quarter and the degree of fixed cost in our cost structure drove a deleverage of first quarter SG&A expenses of 61 basis points versus the first quarter of 2019. We saw this pressure despite the deferred comp benefit of 33 basis points, which has an offsetting headwind in other expense.

我們還削減了分銷和總部費用，使其與較低的銷售額更加匹配。我們在3月份採取的審慎費用管理措施，使得單店銷售、管理及行政費用（SG&A）在扣除本季度因工作日多出一天以及遞延薪酬支出帶來的同比利好後，保持了與去年同期持平。然而，由於季末銷售額大幅下滑，以及成本結構中固定成本佔比較高，導致第一季SG&A費用較2019年第一季下降了61個基點。儘管遞延薪酬支出帶來了33個基點的利好，但其他費用的上漲抵消了部分利好，我們仍然面臨這一壓力。

As we've discussed many times in the past, we do everything we can to manage our business for the long run to ensure we're providing the exceptional customer service and building strong relationships with our customers, which pays off in repeat business in good times and bad. We will not change these core fundamentals of our business, and the consistency of our service to our customers has been and will continue to be the driver of robust growth and profitability for our company. However, as the current crisis has extended well into April, we've continued to take aggressive steps to manage our cost structure in response to the sales pressure we're experiencing.

正如我們過去多次討論的那樣，我們竭盡所能地進行長遠經營，以確保提供卓越的客戶服務並與客戶建立牢固的關係，從而在經濟形勢好壞時都能獲得回頭客。我們不會改變這些核心業務原則，而我們始終如一的客戶服務一直是並將繼續是我們公司強勁成長和獲利能力的驅動力。然而，由於當前的危機已持續到四月份，為了應對銷售壓力，我們一直在積極採取措施來控製成本結構。

While these steps may not prevent us from seeing continued deleverage of SG&A expenses, if current conditions persist, we remain highly confident the adjustments we're making both preserve our company's financial strength and position us to return to our long track record of industry-leading profitable growth. We're also reviewing our capital expenditure plans in all areas of our business to ensure both continued stability and financial flexibility as well as strong returns on our investments. Through the first quarter, we opened 73 net new stores, and we're well on our way to our target of 180 net new stores in 2020.

儘管這些措施可能無法阻止銷售、管理及行政費用（SG&A）的持續降低，但如果當前形勢持續，我們仍然非常有信心，我們正在進行的調整既能保持公司的財務實力，又能使我們重回行業領先的盈利增長軌道。我們也在審查所有業務領域的資本支出計劃，以確保財務的持續穩定性和靈活性，以及​​投資的強勁回報。第一季度，我們淨增加73家門市，並正朝著2020年淨增加180家門市的目標穩步邁進。

As the measures to combat the spread of COVID-19 have been implemented, including restrictions on travel and various other services, we've begun to see delays in the development schedules of new store properties slated for opening in 2020. Additionally, we're being very judicious about how we're proceeding forward on new store development in a period of such significant economic uncertainty. Both of these factors make it unlikely, we will open our previous target of 180 net new stores. So at this time, we're also withdrawing our 2020 new store guidance.

隨著各項防治新冠肺炎疫情措施的實施，包括旅遊限制和其他服務限制，我們開始看到原定於2020年開幕的新店開發進度出現延誤。此外，在當前經濟情勢高度不確定的情況下，我們對新店開發案的進展也格外謹慎。鑑於以上兩點因素，我們先前設定的淨新增180家門市的目標恐怕難以實現。因此，我們決定撤回2020年新店開幕預期。

Our #1 priority in opening a new store is to be able to identify a great store team and equip that team to provide excellent customer service from day 1. We will monitor conditions in our planned development markets and make adjustments as we move forward to ensure that we're achieving that priority. On the DC expansion front, we successfully opened our newest distribution facility in Lebanon, Tennessee, an eastern suburb of Nashville on March 9. Nashville and its surrounding markets have been very strong growing markets for us, and the additional capacity in the new 408,000 square foot facility will allow us to take advantage of continued profitable growth in the region and accommodate a broader SKU capacity to provide an even better breadth of hard-to-find parts to our stores in this market.

我們開設新店的首要任務是組建一支優秀的門市團隊，並確保團隊從開業第一天起就能提供卓越的客戶服務。我們將密切關注計劃拓展市場的狀況，並根據實際情況進行調整，以確保實現這一目標。在配送中心擴張方面，我們於3月9日在田納西州黎巴嫩市（納許維爾東郊）成功啟用了最新的配送中心。納許維爾及其周邊市場一直是我們成長強勁的市場，這座佔地40.8萬平方英尺的新配送中心新增的產能將使我們能夠充分利用該地區持續的盈利增長，並容納更廣泛的SKU，從而為該市場的門市提供更多種類的稀缺零部件。

The Nashville team did a great job getting up and running without missing a beat, and we're extremely proud of the excellent team we have in place, providing outstanding, enhanced customer service. As we have with our new store development, we're continuing to evaluate the development schedule for our other major distribution project, our new facility in Horn Lake, Mississippi, just south of Memphis, which was slated to open in the fourth quarter of 2020, but will now likely be pushed into 2021. At this stage, it's too early to tell what impact or potential delay we'll see as we move forward, but we will make the appropriate adjustments as conditions change to ensure we have a successful completion of this project.

納許維爾團隊出色地完成了任務，迅速投入運營，沒有任何延誤。我們為擁有如此優秀的團隊感到無比自豪，他們提供了卓越且不斷提升的客戶服務。正如我們之前對新店開發所做的那樣，我們正在持續評估另一個大型配送項目——位於密西西比州霍恩湖（孟菲斯以南）的新配送中心——的開發進度。該中心原計劃於2020年第四季開業，但現在很可能會延後到2021年。目前，我們尚無法預測專案推進過程中會受到何種影響或可能出現何種延誤，但我們會根據實際情況做出相應的調整，以確保專案順利完成。

Outside of new store and DC growth, we're also taking a cautious approach in scrutinizing other planned capital projects for 2020. As we discussed, when we outlined our plan for capital investments on our last earnings call, we have several exciting projects and initiatives, which will enhance the service we provide to our customers and drive strong returns. The ultimate opportunities presented by these projects hasn't been diminished, and we will continue to move forward, where appropriate, including our initiative to convert the hardware that runs our stores.

除了新店和配送中心的擴張之外，我們也對2020年的其他計畫資本項目採取謹慎的態度。正如我們在上次財報電話會議上概述資本投資計劃時所討論的，我們有幾個令人振奮的項目和舉措，這些項目和舉措將提升我們為客戶提供的服務並帶來豐厚的回報。這些項目帶來的最終機會並未減少，我們將繼續在適當的情況下推進這些項目，包括我們正在進行的門市硬體改造計畫。

In other instances, we will monitor our business and resource needs, and we're electing to defer certain projects for a period of time to ensure a successful rollout. The strength of our business and the consistency of the cash flows we generate allows us the ability to weather a storm like the one we're in right now. without having to make drastic and severe cuts to our operating and capital plans. This type of financial flexibility puts us in a solid position. But we remain committed to being good managers of our shareholders' capital, and we'll make prudent decisions to ensure continued financial strength. To close my comments, I'd like to again express my deep appreciation to Team O'Reilly for your hard work, dedication and commitment to meeting our customers' needs during these challenging times.

在其他情況下，我們將密切關注業務和資源需求，並選擇將某些專案推遲一段時間，以確保順利推出。我們業務的穩健性和穩定的現金流使我們能夠渡過當前這樣的難關，而無需大幅削減營運和資本計劃。這種財務靈活性使我們處於穩固的地位。但我們始終致力於善用股東資本，並將做出審慎的決策，確保財務實力持續穩健。最後，我要再次向奧萊利團隊致以最誠摯的謝意，感謝你們在這些充滿挑戰的時期所付出的辛勤努力、奉獻精神和對滿足客戶需求的承諾。

Now I'll turn the call over to Tom.

現在我把電話交給湯姆。

Thanks, Jeff. I would also like to thank all of Team O'Reilly for their hard work and dedication to taking care of our customers in the midst of this extremely difficult environment.

謝謝傑夫。我也要感謝奧萊利團隊的所有成員，感謝他們在如此艱難的環境下，依然辛勤工作、盡心盡力服務我們的客戶。

Now we'll take a closer look at our quarterly results. For the quarter, sales increased $66 million, comprised of $44 million decrease in comp store sales, a $52 million increase in noncomp store sales, a $34 million increase from Leap Day, a $26 million increase in noncomp nonstore sales and a $2 million decrease from stores permanently closed in line with our 2020 plan. For clarification, these store closures were planned and are broken out consistent with our past reporting practices. As Greg previously discussed, we have withdrawn all 2020 guidance.

現在我們來仔細看看季度業績。本季銷售額增加6,600萬美元，包括同店銷售額減少4,400萬美元，非同店銷售額增加5,200萬美元，閏日帶來的3,400萬美元成長，非同店非門市銷售額增加2,600萬美元，以及根據我們2020年計畫永久關閉的門市導致的2,00萬美元減少。需要說明的是，這些門市關閉是計劃內的，並且按照我們以往的報告慣例進行單獨列示。正如Greg之前所說，我們已撤回所有2020年業績指引。

Our first quarter effective tax rate was 20.9% of pretax income, comprised of a base rate of 21.8%, reduced by a 0.9% benefit for share-based compensation, both of which were better than our expectations. This compares to the first quarter of 2019 rate of 22.5% of pretax income, which was comprised of a base tax rate of 24.5%, reduced by a 2% benefit for share-based compensation. The first quarter of 2020 base rate as compared to 2019, benefited from solar tax credits, which were in line with our expectations in total dollars, and drove a lower effective tax rate on pretax income that was below our expectations. Changes in the tax benefit from share-based compensation can create fluctuations in our quarterly tax rate, and we continue to expect our rate for the remainder of 2020 to be lower in the fourth quarter as a result of the totaling of certain tax periods.

我們第一季的實際稅率為稅前利潤的20.9%，其中基本稅率為21.8%，並扣除了0.9%的股權激勵收益，這兩項均優於我們的預期。相較之下，2019年第一季的實際稅率為稅前利潤的22.5%，其中基本稅率為24.5%，並扣除了2%的股權激勵收益。 2020年第一季的基本稅率較2019年降低，這得益於太陽能稅收抵免，其總額符合我們的預期，從而降低了稅前利潤的實際稅率，使其低於我們的預期。股權激勵稅收優惠的變化可能會導致我們季度稅率的波動，我們預計2020年剩餘時間的稅率在第四季度會因某些納稅期的累積而降低。

Now we'll move on to free cash flow and the components that drove our results for the quarter. Free cash flow for the first quarter of 2020 was $227 million versus $279 million in the first quarter of 2019, with the reduction driven by lower pretax income and investments in solar projects, offset in part by lower credit card receivable balances compared to the same time in 2019. The investment in solar projects generate investment tax credits, which will benefit cash taxes paid in the remainder of 2020, but the timing of these investments can create unevenness in our quarterly cash flows.

接下來，我們將分析自由現金流以及影響本季業績的各項因素。 2020年第一季自由現金流為2.27億美元，而2019年第一季為2.79億美元。自由現金流減少的主因是稅前收入和太陽能專案投資減少，但部分被信用卡應收帳款餘額較2019年同期下降所抵銷。太陽能專案投資可獲得投資稅收抵免，這將有助於減少2020年剩餘時間的現金稅款，但這些投資的時間表可能會導致我們季度現金流波動。

Inventory per store at the end of the quarter was $643,000, which was up 1.6% from the beginning of the year and up 5.6% from this time last year. The increase reflects the additional inventory investments we have planned for 2020 as well as increases resulting from soft first quarter sales. Our AP to inventory ratio at the end of the first quarter was 105.7%, which was above our expectations and the 104.4% we finished 2019. Finally, capital expenditures for the first 3 months of the year were $133 million, which was down $20 million from the same period of 2019, driven by the prior year level of investment in new distribution projects versus the first quarter of 2020. As Jeff previously discussed, we continue to monitor the impact of COVID-19 and will adjust our CapEx plans as appropriate given the environment.

本季末，單店庫存為 64.3 萬美元，較年初成長 1.6%，較去年同期成長 5.6%。這一增長反映了我們為 2020 年計劃的額外庫存投資，以及第一季銷售疲軟導致的庫存增加。第一季末，我們的應付帳款與庫存比率為 105.7%，高於預期，也高於 2019 年末的 104.4%。最後，今年前三個月的資本支出為 1.33 億美元，較 2019 年同期減少 2,000 萬美元，主要原因是去年同期對新配送項目的投資高於 2020 年第一季。正如 Jeff 之前所說，我們將繼續密切關注 COVID-19 的影響，並根據實際情況調整我們的資本支出計劃。

As the COVID-19 crisis worsened and we began to see pressure to our operations in the middle of March, we took appropriate steps to preserve capital and liquidity, including drawing down $250 million on our line of credit and holding that balance in cash. We were also very pleased to further strengthen our liquidity position through the successful issuance of a $500 million, 10-year senior note, at a rate of 4.2% on March 25, in the midst of a market challenge by the COVID-19 crisis. We finished the first quarter with an adjusted debt-to-EBITDAR ratio of 2.59x as compared to our ratio of 2.34x (sic) [2.24x] at the end of 2019 and above our stated leverage target of 2.5x. Excluding the incremental borrowings, we elected to hold in cash at March 31, our leverage ratio was 2.49x.

隨著新冠肺炎疫情的惡化，我們在3月中旬開始感受到營運壓力，因此採取了適當措施來保留資本和流動性，包括提取2.5億美元的信貸額度並將剩餘部分以現金形式持有。此外，我們非常高興地宣布，在新冠肺炎疫情帶來的市場挑戰下，我們於3月25日成功發行了5億美元的10年期高級票據，利率為4.2%，從而進一步增強了流動性。第一季末，我們調整後的負債與EBITDAR比率為2.59倍，高於2019年底的2.34倍（原文如此）[2.24倍]，也高於我們設定的2.5倍槓桿目標。若不計新增借款，我們選擇在3月31日持有現金，當時的槓桿率為2.49倍。

As a further step to conserve liquidity, in the middle of March, we temporarily suspended our share buyback program. Our year-to-date repurchases prior to this decision totaled 1.5 million shares at an average share price of $386.71 for a total investment of $574 million. As of yesterday, we had $1.1 billion of total liquidity in cash and available borrowings under our $1.2 billion revolving credit facility, and we feel we have ample liquidity under this existing facility. As we evaluate our liquidity, leverage, use of capital and share repurchase program moving forward, we'll continue to prioritize maintaining our strong financial position, including the investment-grade rating on our public debt. We have a long history of conservatively managing our balance sheet, and we'll continue to take prudent steps to ensure the long-term health and stability of our company.

為進一步保持流動性，我們在3月中旬暫停了股票回購計畫。在此決定之前，我們年初至今已回購150萬股，平均每股價格為386.71美元，總投資額為5.74億美元。截至昨日，我們擁有11億美元的現金及12億美元循環信貸額度下的可用借款，我們認為現有信貸額度下的流動性充足。未來，我們將評估流動性、槓桿率、資本運用及股票回購計劃，並將繼續優先維護穩健的財務狀況，包括維持公共債務的投資等級。我們一直以來都秉持穩健的資產負債表管理原則，並將繼續採取審慎措施，確保公司的長期健康穩定發展。

Before I open up our call to your questions, I'd like to thank the O'Reilly team for the resilience they've shown over the last several weeks and for their continued dedication to our company and our customers.

在正式開始回答大家的問題之前，我想感謝 O'Reilly 團隊在過去幾週展現的韌性，以及他們對我們公司和客戶的持續奉獻。

This concludes our prepared comments. At this time, I'd like to ask Latif, the operator, to return to the line, so we'll be happy to answer your questions.

我們的發言到此結束。現在，請接線員拉蒂夫回到電話線，以便我們回答您的問題。

(Operator Instructions) Greg Melich from Evercore ISI is on line with a question.

（操作員說明）來自 Evercore ISI 的 Greg Melich 線上提問。

My core question is on the actions to both reduce costs and position the business to help customers and associates. How should we think about the variable margin of the business as you are getting into that position? I'm thinking that it's probably around 40%, if we look back to prior downturns. I just want to see if you still think that's a fair benchmark. And then I had a follow-up.

我的核心問題是關於如何降低成本，並使業務更好地服務客戶和員工。在您著手處理這些事宜時，我們該如何看待業務的可變利潤率？如果回顧以往的經濟低迷時期，我認為可變利潤率可能在40%左右。我想確認一下您是否仍然認為這是一個合理的基準。之後我還有一個後續問題。

Tom, do you want to take that one?

湯姆，你想接那個嗎？

Greg, this is a situation that we haven't seen before with miles driven significantly down, people staying at home, something very unusual and the sales are down much more than we've experienced in the past. As Greg talked about in prepared comments, we have a very high fixed model when you look at multi locations opened from 7:30 in the morning till 7:30, [8], 9, 10 at night. We have to staff all of those hours. So given that, we have a high fixed model, and we're seeing a pretty significant reduction in sales. We would expect to have more pressure and more of a negative -- less of a positive flow through on those sales. So we'd expect it to be a more restrictive number.

格雷格，我們以前從未遇到過這種情況：行駛里程大幅下降，人們待在家裡的時間也很多，這非常不尋常，銷售額的下降幅度也遠超以往。正如格雷格在事先準備好的演講稿中提到的，我們採用的是一種非常高的固定營運模式，因為我們有多家店，從早上7:30一直營業到晚上7:30、8點、9點甚至10點。我們必須安排人員值守所有這些時段。有鑑於此，我們的固定營運模式已經非常高，而銷售額卻出現了相當大的下降。我們預期銷售額將面臨更大的壓力，負面影響也會更大——正向影響會減弱。因此，我們預期銷售額會受到更大的限制。

Got it. So more than 40% is -- would be reasonable just given the nature of this downturn being so unique?

明白了。所以，考慮到這次經濟衰退的特殊性，超過40%的比例——算合理嗎？

Yes.

是的。

Got it. And then the follow-up would be on the uniqueness of this. What are you guys seeing in terms of -- you mentioned that geographically across the stores, it's pretty similar. Have you seen any change in terms of potentially less urban or more rural stores behaving differently? I'm just thinking about where there might still be movements of activity given that miles driven are probably down 40% or 50%. Anything on that would be helpful.

明白了。接下來我想問的是，這件事的獨特性在哪裡。你們觀察到什麼情況？你們提到，從地理位置來看，各門市的情況都差不多。那麼，你們有沒有發現一些門市，例如地點偏遠或不那麼都市化的門店，它們的營運模式有所不同？考慮到車輛行駛里程可能下降了40%到50%，我還在思考，在哪些地方可能仍有客流活動。任何相關資訊將不勝感激。

Jeff, do you want to take that?

傑夫，你想拿嗎？

Yes. Greg, as we mentioned in the prepared comments, we really didn't have much of a winter in January and February. So our cold-weather market started off pretty slow. And then business picked up in the first half of March that we talked about and then the COVID pandemic really hit. And with 90% of the population really all across the country understand home areas, impact was fairly widespread across all of our chain. The one thing that I would say, in general, is that the large metro markets appear to have been impacted to a greater degree than the rest of the markets in our chain, and we assume that would be driven by the better adherence to the stay-at-home orders.

是的。格雷格，正如我們在準備好的評論中提到的，一月和二月我們這裡幾乎沒有冬天。所以我們的冬季市場開局相當緩慢。然後，正如我們之前提到的，三月上半月業務開始回暖，之後新冠疫情就爆發了。由於全國90%的人口都居住在各自的區域，疫情對我們整個連鎖店的影響相當廣泛。總的來說，我想說的是，大型都會區市場受到的影響似乎比我們連鎖店的其他市場更大，我們認為這可能是因為這些地區對居家隔離令的遵守程度更高。

We have a question on line from Scot Ciccarelli of RBC Capital Markets.

我們收到來自加拿大皇家銀行資本市場公司的 Scot Ciccarelli 的線上提問。

Are you guys able to provide us with at least a general range of what your profitability was during that 4-week period where you posted a negative comp of about 13%, I guess, kind of a derivative on Greg's question?

你們能否提供一下在你們業績年減約 13% 的那 4 週期間，你們的獲利情況大概是多少？我猜這算是 Greg 問題的延伸吧？

Well, first of all, it bridges accounting periods, but we don't give profitability metrics on short periods of time. What we would say to echo the comments we've made regarding Greg's question is that the negative flow-through will be higher because we have to staff the stores for the hours open, and we'll see quite a bit of SG&A headwind, given a negative 13% comp run rate.

首先，雖然它跨越了不同的會計期間，但我們不提供短期獲利指標。關於格雷格的問題，我們想重申一下先前的評論：由於我們需要為門市營業時間配備員工，而且考慮到13%的同店銷售額同比下降，銷售、管理及行政費用（SG&A）的負面影響將會更大，因此負面影響會更加明顯。

Okay. All right. I got it. Just -- I'm sorry. That's okay.

好的，明白了。只是——對不起。沒關係。

Obviously, that depends also on what the sales look like for the rest of the quarter and how many miles are driven. But given that rate, it will be a significant headwind.

顯然，這也取決於本季剩餘時間的銷售情況以及行駛里程。但就目前的成長率而言，這將是一個巨大的阻力。

Got it. Okay. And then I guess a follow-up question then is, just given kind of the magnitude of impact on your industry with the miles driven being down, you think this could lead to a more aggressive M&A posture from O'Reilly? Or is that just not where your heads are at, at this point, given the current downturn in business?

明白了。好的。那麼我想問的後續問題是，考慮到行駛里程下降對你們行業造成的巨大影響，您認為這是否會促使奧萊利採取更積極的併購策略？或者，鑑於目前的業務低迷，您目前還沒有考慮這方面的因素？

Scot, we -- as a company, we always look for strategic acquisitions. And right now, it's really no different. I wouldn't say we're focusing any more or any less on looking at strategic acquisitions. Frankly, we've been really business -- we're all really busy running the business and coping with what's going on, but we would certainly be open to looking at strategic acquisitions, if any of them presented themselves.

史考特，我們公司一直以來都在尋求策略性收購。現在的情況也一樣。我不會說我們對策略收購的關注度增加或減少。坦白說，我們一直專注於業務——大家都很忙於經營公司，應對各種挑戰，但如果出現合適的策略收購機會，我們當然會持開放態度。

Our next question on line is from Simeon Gutman of Morgan Stanley.

下一個線上提問者是摩根士丹利的西蒙古特曼。

My first question more of a -- first, more of a housekeeping. The -- through mid-April data point that you provided, does that include the stimulus period? And then the minus 13% broadly, it sounds like the back half of March was weaker, and we've seen improvement. Can you share how different the weeks in April have been so we can have a sense to glean on how to think about the world going forward?

我的第一個問題更像是一些背景資訊。您提供的截至四月中旬的數據點是否包含了刺激經濟的時期？另外，您提到的-13%的整體降幅，聽起來像是三月下旬的情況比較疲軟，但之後有所改善。您能否詳細說明四月份各週的具體情況，以便我們更了解未來的經濟狀況？

Yes. We're not going to quantify that, but I'll kind of walk you through the quarter with a little more color than what I did in prepared comments, Simeon. As we said, we started the quarter very similarly to where we commented back in February. January, mild winter that led into February. Comps for both January and February were positive. Although they didn't meet our expectations, they were both positive. Then we moved into March and the first couple of weeks of March, things improved. Weather improved. Sales were more typical of what we would expect to see with normal weather patterns in our business. So we saw improvement in the first 2 weeks. And then the middle of March, when COVID really started to present itself and stay-at-home and shelter-in-place orders were issued. For that next 4-week period, we saw consistent negative comp trends fairly consistent across all 4 of those weeks. And then over the past week, once the stimulus checks have started coming out, checks and electronic payments, we've seen improvement over those prior 4 weeks.

是的。我們不會對此進行量化，但我會比我事先準備好的評論更詳細地向您介紹一下本季度的情況，西蒙。正如我們所說，本季初的情況與二月份的評論非常相似。一月份，天氣溫和，一直延續到二月。一月和二月的同店銷售額均為正值。雖然沒有達到我們的預期，但都是正成長。然後我們進入三月份，三月的前兩週情況有所改善。天氣好轉，銷售額也更符合我們業務在正常天氣條件下的預期。因此，我們在前兩週看到了改善。然後到了三月中旬，新冠疫情開始真正蔓延，居家隔離和就地避難令相繼發布。在接下來的四周裡，我們看到了持續的同店銷售額下降趨勢，而且這四周的下降幅度都相當一致。而在過去一周，隨著刺激性支票（包括紙本支票和電子支付）的發放，我們看到了比前四周有所改善的情況。

Simeon, this is Tom. To add to that, the reason we picked the last 2 weeks of March and the first 2 weeks of April were the performances were pretty consistent. Stay-at-home orders and companies converting people to working at home was pretty consistent. We want to give you what the baseline was. As Greg talked about, we have done better since the stimulus checks were issued, but we are uncertain the duration of that benefit.

西蒙，我是湯姆。補充一點，我們之所以選擇三月最後兩週和四月前兩週，是因為那段時間的表現相當穩定。居家隔離令和公司讓員工居家辦公的趨勢也相當穩定。我們想讓大家了解一下當時的基準狀況。正如格雷格所說，自從政府發放紓困支票以來，我們的業績有所好轉，但我們不確定這種利好會持續多久。

Got it. Yes, that's really helpful. I guess I'll put my question and just maybe a reaction to that, if I understood it properly, because miles driven, seems like it's down significant, not to be able to figure it out by market, but who knows maybe 40%, 50%. It implies that pre-stimulus then your business was run rating at a much, much healthier rate than that. I think it's -- you're implying minus 13% before stimulus, which is quite decent. So I know, Greg, it is prudent to be cautious, which is how you laid it out. And it's hard to think about pent-up demand here versus what stimulus is going to do. But does the minus 13% inform you at all relative to that -- the degree of miles driven that there is maybe more insulation here than you would have thought? Or I don't know how you think about it.

明白了。是的，這真的很有幫助。我想我會提出我的問題，以及一些對此的回應（如果我理解正確的話）。因為行駛里程似乎大幅下降，雖然無法透過市場來判斷，但誰知道呢，可能下降了40%、50%。這意味著在刺激政策出台之前，你們的業務營運狀況要好得多。我認為——你指的是刺激政策在出台前下降了13%，這相當不錯。我知道，格雷格，謹慎行事是明智的，你也是這麼解釋的。現在很難考慮被壓抑的需求與刺激政策的影響。但是，相對於行駛里程而言，這13%的下降是否意味著，這裡的緩衝作用可能比你想像的還要大？或者我不知道你怎麼想的。

Yes. Well, what we're uncertain now is how much of the improvement is related specifically to the stimulus. We feel like a significant amount of the improvement we saw over the prior 4 weeks was stimulus related. As time goes on and these stimulus checks and the money runs out, we'll just have to see how our performance does over the next few weeks. And it's unknown what future stimulus will hit and the timing of that. So we're being very cautious and conservative as we look forward.

是的。目前我們不確定的是，這些改善有多少是刺激政策直接導致的。我們感覺過去四周的改善很大程度上與刺激政策有關。隨著時間的推移，這些刺激支票和資金會逐漸耗盡，我們只能觀察未來幾週的表現。而且，未來的刺激政策會是什麼，何時出台，目前還不得而知。因此，展望未來，我們採取了非常謹慎保守的態度。

To add to Greg's comment, the stimulus checks hit, in essence, a week or 10 days ago. We didn't want to include that in our comments because we're not sure of the duration. From a miles driven standpoint, we haven't seen the national data on that yet. I know there's a lot of assumptions out there on the gas usage of calculating miles driven, but that hasn't been always a great indicator for us. What we also tell you is that there are a lot of auto parts that are sold by somebody that's not O'Reilly. And our opportunity is to go out and make long-term relationships with customers and gain more market share. Our goal has always been to never settle for what the industry growth rate is, but to go out and earn additional market share growth beyond that.

補充一下格雷格的評論，刺激經濟的支票實際上是在一周或十天前發放的。我們不想在評論中提及這一點，因為我們不確定其持續時間。就行駛里程而言，我們還沒有看到全國性的數據。我知道在計算行駛里程時，汽油消耗量有很多假設，但對我們來說，這並不總是一個可靠的指標。我們也要告訴大家的是，有很多汽車零件並非由歐萊利公司銷售。我們的機會在於與客戶建立長期的合作關係，並獲得更多的市場份額。我們的目標始終是不滿足於產業平均成長率，而是要努力爭取更高的市佔率成長。

And I want to add word on that is that's why we've done our best to keep all of our stores open in all of our local markets. And maybe that was with the skeleton crew, but at least we kept the doors open to be there for our customers.

我想補充一點，正因如此，我們才盡最大努力保持所有本地市場的門市正常營業。或許當時人手有限，但至少我們保持了門市開放，為顧客提供服務。

Our next question on line comes from Michael Lasser of UBS.

下一個線上提問來自瑞銀集團的邁克爾·拉塞爾。

So the large aftermarket players have put a lot of emphasis on miles driven as a key factor that drives the industry. As you look out over the next 9 months, what's going to be more important to determining demand for the aftermarket, miles driven or the fact that many consumers are going to be under economic pressure and new car sales are likely to be weighed down, which matters more?

因此，大型汽車後市場廠商非常重視行駛里程，並將其視為推動產業發展的關鍵因素。展望未來9個月，對於決定汽車後市場需求而言，行駛里程和許多消費者將面臨經濟壓力、新車銷售量可能下滑這兩個因素，哪個更重要？

Yes. Michael, great question. I think it's all of the above. The biggest driver in our industry continues to be miles driven. That's what causes breakage, wear and tear, more maintenance cycles on vehicles. So I would add more weight to that. Obviously, this period that we're approaching more so than normal. There are other factors that you mentioned that would impact that. But I would say that miles driven would be the most significant. As I said in prepared comments and we comment on frequently, most of our purchases in our industry are nondiscretionary. Most of the people come into our stores to buy parts, to repair or maintain their vehicle. They just really don't have a choice. Whether it's getting their kids to school or getting themselves to work, they have to have their vehicle. So because of being nondiscretionary in nature, economics definitely plays into this, but consumers have historically done a good job of prioritizing their spending on a weak economy, and our industry has performed well. So I think the single most important factor would continue to be miles driven.

是的，邁克爾，問得好。我認為以上所有因素都很重要。我們行業最大的驅動因素仍然是行駛里程。行駛里程會導致車輛損壞、磨損，增加維修保養次數。所以我更強調這一點。顯然，在我們即將經歷的這段時期，行駛里程的影響比平常更大。你提到的其他因素也會產生影響，但我認為行駛里程是最重要的。正如我在事先準備好的評論中所說，我們也經常提到，我們行業的大部分消費都是非必需品。大多數人來我們店裡是為了購買零件、維修或保養車輛。他們別無選擇。無論是送孩子上學還是自己上班，他們都必須開車。因此，由於這些消費屬於非必需品，經濟因素肯定會影響到車輛的銷售量，但消費者歷來都能在經濟疲軟時期合理分配支出，而我們這個產業也一直表現良好。所以我認為最重要的因素仍然是行駛里程。

If you look back to the recession in 2008, 2009, what categories did you see the biggest acceleration? And would those be the leading indicators for how the next few quarters could unfold? And also, could you add a comment on what you expect inflation or deflation for the auto aftermarket is going to be through the back half of the year?

回顧2008年和2009年的經濟衰退，您認為哪些領域的成長最為顯著？這些領域能否作為未來幾季經濟走勢的先行指標？另外，您能否就今年下半年汽車售後市場的通膨或通縮走勢發表一下看法？

So when we look back at 2008, not surprising as people determine they were going to keep their vehicles longer, want to maintain their roadworthiness, key drivers were hard parts. Vehicles were -- people want to keep their vehicle, maintaining it on the road well. It wasn't a dress-up, wasn't in performance. It was those key hard parts. The second question was -- can you repeat the second question? I'm sorry, Michael.

所以，當我們回顧2008年時，人們決定延長車輛的使用壽命，並希望保持車輛的良好行駛性能，這並不令人意外，因為關鍵因素在於車輛的零件。人們希望保留自己的車輛，並使其保持良好的行駛狀態。這與外觀裝飾無關，也與性能無關。關鍵在於那些關鍵的零件。第二個問題是──你能重複第二個問題嗎？抱歉，麥可。

What's the outlook for inflation or deflation as you move through the next few quarters, Tom?

湯姆，你認為未來幾季通膨或通貨緊縮的前景如何？

Sorry about that. Yes. So our expectation is unchanged. We had anticipated no inflation -- no new inflation, and that we would be anniversarying increases from the tariffs from last year. So same expectation.

抱歉。是的。所以我們的預期沒有改變。我們之前預計不會出現通膨——不會出現新的通膨，我們將迎來去年關稅上調一周年。所以預期不變。

Our next question on line comes from Brian Nagel of Oppenheimer.

我們下一個線上提問者是奧本海默公司的布萊恩·納格爾。

So the first question I have, I guess, a relatively simple one, but you had mentioned in your prepared comments not surprising that the DIY business here is performing better than the commercial DIFM business. Could you give us some more details as on how that's -- how large of spread between the 2 sides of your business is currently tracking?

我的第一個問題，我想應該比較簡單，但您在事先準備好的評論中提到，不出所料，DIY業務的表現優於商業DIFM業務。您能否詳細說明一下具體情況－目前貴公司這兩類業務的差距有多大？

Yes. What we said is that, first of all, we're not going to break out what the spread is between those 2. But we have seen less pressure on the DIFM side over the past week or so as we called out in our comments. And we think a lot of that is because of the consumer that is the typical DIFM customer is probably more able to work from home and driving fewer miles than perhaps that DIY customer might be. Tom, do you want to add to that?

是的。我們之前說過，首先，我們不會單獨列出這兩者之間的價差。但正如我們在評論中提到的，過去一周左右，DIFM（由業主託管）方面的壓力有所減輕。我們認為這很大程度上是因為DIFM的典型客戶可能更適合在家辦公，而且開車里程也比DIY（自己動手）的客戶少。湯姆，你還有什麼要補充的嗎？

In the last week or 10 days since we've seen the stimulus checks, we've seen those -- both sides of the business improve. We would tell you that the DIY has -- over this period of time since the significant outbreak and the crisis has gotten worse has performed markedly better.

自從發放紓困支票以來，過去一周到十天裡，我們看到業務的兩方面都有所改善。我們可以說，自疫情爆發以來，DIY產業的表現明顯優於以往，尤其是在危機加劇的這段時間。

Okay. Got it. And the second question I have, going back to echo the comments someone else made in their question, which was, if you look across retail, down 13%. You talked about the mid-March to mid-April while not consistent with normal O'Reilly practices is actually not bad at all relative to a lot of retailers out there. As you look at the makeup of your business, to what extent is O'Reilly benefiting right now from new traffic, new customers coming to the store, potentially reflecting dislocations within the broader retail landscape? And to the extent that it is happening, how do you think about the retention of these customers, once the pandemic or the crisis begins to abate?

好的，明白了。我的第二個問題，是想呼應之前有人提出的觀點，那就是，縱觀整個零售業，銷售額下降了13%。您提到3月中旬到4月中旬的情況，雖然與O'Reilly的正常水平不符，但相對於許多零售商來說，其實並不算糟糕。從您自身業務的構成來看，O'Reilly目前在多大程度上受益於新客流量和新顧客的到來？這些新客流量和新顧客的到來是否反映了整個零售業格局的波動？如果確實如此，您認為一旦疫情或危機開始緩解，這些顧客的留存率會如何？

So I guess the first thing I'd say is any time we put up a negative comp quarter, it happened so rarely, it doesn't feel very good, despite the comparisons. On the traffic, it's very hard to determine. We can look at some of our O'Rewards data because -- and we can look at that over a period of time to see how many new customers we sign up. And when we look at our shops because their business is suffering, it's hard to know if you're losing more or less than the other numbers they have on the line and whether you're moving up the call list or not. Ultimately, we feel good that we've been able to keep our stores open and perform comparatively well. Over time, we feel like those customer interactions where we get a new customer in the door because the parts store that they normally go to hasn't been open that we're going to provide great customer service, and that's going to be sticky. Same thing on the professional side, which we know for sure from past experience.

所以我想說的第一點是，我們很少出現季度業績下滑，但即便有同比數據，每次出現負增長的感覺仍然不太好。至於客流量，很難確定具體情況。我們可以查看一些O'Rewards的數據，例如一段時間內新增了多少客戶。但當我們查看門市的業績時，由於它們的業務都在下滑，很難判斷門市的損失是比其他門市更大還是更小，也很難判斷門市的排名是否靠前。最終，我們很高興能夠保持門市正常營業，並且業績相對良好。我們相信，隨著時間的推移，那些因為門市關門而前來光顧的新客戶，我們會提供優質的客戶服務，從而建立起良好的客戶關係。專業服務方面也是如此，這一點我們從過去的經驗中可以肯定。

Yes. Brian, I would add one thing to that. Our -- most of our e-commerce business does result in that customer coming to our store as Buy Online, Pick Up In-Store. Over the past several weeks, we have increased functionality there to roll out buy online ship-to-store functionality, which opens up our supply chain to provide often same-day service to our stores, either from a distribution center or a hub store nearby. So we've added that functionality and our e-commerce sales have picked up, especially on the pick up in-store side.

是的，布萊恩，我還要補充一點。我們的電商業務大多是顧客在線上購買、到店自提後到店完成的。過去幾週，我們升級了這項功能，推出了線上購買、門市自提服務，這使得我們的供應鏈能夠為門市提供通常當天送達的服務，發貨地點可以是配送中心或附近的樞紐門市。這項功能的推出確實提升了我們的電商銷售額，尤其是到店自提的銷售額。

Next question on the line comes from Chris Horvers of JPMorgan.

下一個提問者是摩根大通的克里斯·霍弗斯。

So my question is on the gross margin line. So can you talk a little bit about how lapping tariff price increases played out? Did that end up being a headwind and related to that LIFO? And did Mayasa end up being a headwind to your gross margin rate? And while you've pulled guidance, as you think about all the puts and takes of what you're seeing so far, any comment on the gross margin going forward?

我的問題是關於毛利率的。您能否談談關稅價格上漲疊加的影響？這最終是否對毛利率造成了不利影響，並與後進先出法（LIFO）有關？ Mayasa的收購是否也對毛利率造成了不利影響？雖然您已經撤回了業績指引，但考慮到目前的情況，您對未來的毛利率有何看法？

Well, I've seen the tariffs has played out as we expected. On our last call, when we laid out our gross margin guidance at the time, LIFO was more of a headwind. This year, we're not seeing as much of a benefit as we saw last year. But that, again, is tracking as we'd expect. As we talked about on the call last time, Mayasa runs a big independent jobber business. So they're selling to other part stores. So they have a lower operating cost, but also lower gross margins. So that's a drag also. When we look at our gross margin for the first quarter versus our expectations, it's really less high-margin winter items and then we have a relatively high -- we have quite a bit of high fixed cost in our distribution center, when you look at management, occupancy and routes that we run transportation. So when our volume is down, that's going to be a drag.

嗯，關稅的影響正如我們所預期的。上次電話會議上，我們公佈毛利率預期時，後進先出法（LIFO）帶來的不利影響更大。今年，我們並沒有看到像去年那樣顯著的收益。但這同樣符合我們的預期。正如我們上次電話會議上提到的，Mayasa 經營著一家大型獨立批發商。他們向其他零件商店供貨。因此，他們的營運成本較低，但毛利率也較低。這也是一個拖累因素。當我們比較第一季的毛利率和預期時，會發現高利潤的冬季商品銷售量下降，而且我們的配送中心固定成本相對較高，包括管理、場地佔用和運輸路線等。因此，銷量下降會拖累毛利率。

Yes. To add a little more color in distribution to what Tom said. The fixed cost, as Tom said, they are going to be a drag on low volume. One of the uniquenesses of the timing of the impact of the virus to us is it's in a period of time where we're ramping up for spring volume. So if you look at a distribution center and you look at the labor in the distribution center, you got to look at the inbound side -- inbound volume as well as the outbound volume. So over the past several weeks, our inbound volumes have been higher as a result of ramping up for the spring season, while our outbound volumes have been softer. So the DCs have been impacted and you would think that they would be able to reduce hours and cut some labor. They haven't been able to do that as much as you might think because of the inbound volume in keeping up the spring inflow of product.

是的。為了更詳細地補充湯姆所說的配送情況，正如湯姆所說，固定成本在低銷售量時會造成拖累。疫情對我們造成影響的時機比較特殊，正值我們為春季銷售成長做準備之際。所以，如果你觀察一個配送中心，並分析其中的勞動力狀況，你必須同時考慮入庫量和出庫量。過去幾週，由於春季銷售旺季的到來，我們的入庫量較高，而出庫量則較低。因此，配送中心受到了影響，你可能會認為他們應該能夠減少工時並裁減一些員工。但由於春季產品入庫量的存在，他們並沒有像你想像的那樣有效地做到這一點。

Got it. So basically the 1Q gross margin played out as your thought sans the sort of top line impact. And so it's a good guide going forward. And 2 quick follow-ups -- 2 follow-ups. One is, what was the inflation impact the comp in the first quarter? And then just big picture, the 2009 analogy. How would you compare the puts and takes to what occurred back then? The peak repair factor seems like weather was better, the new car sales dropped off, sort of, sustained dropped off was much bigger. But then on the other hand, you've got higher share now. Your smaller players are probably suffering capital pressures, and there's 15,000, 16,000 small shops out there to take share from -- but you don't have the dealers closing. So a lot of puts and takes. How are you thinking about that in comparison to that '09 time frame?

明白了。所以基本上，第一季的毛利率和你預想的差不多，只是沒有受到營收下滑的影響。因此，它對未來的發展是一個很好的參考指標。還有兩個後續問題。第一個是，第一季的通膨對同店銷售額的影響如何？第二個是，從宏觀角度來看，以2009年為例。你會如何比較現在的情況和當時的情況？維修高峰期似乎與當時的天氣狀況有關，新車銷量下降，而且持續的下降幅度更大。但另一方面，現在的市佔率更高了。小型企業可能面臨資金壓力，而且還有15,000到16,000家小型維修店在爭奪市場份額——但經銷商並沒有倒閉。所以現在有很多交易機會。你如何看待這種情況與2009年同期的情況相比？

Yes. So I'll take the first part and then I'll let Tom speak to the inflation question. Chris, a lot of things are similar, and then there are some things that are definitely different. When we went through '08, '09, there was a lot of things we called out that were drivers. We talked about the SAAR. We talked about miles driven. We talked about Hispanic hibernation and other things. The one thing that's unique about the situation we're in now is the fact that the potentially dramatic impact to miles driven so far. With all of the stay-at-home orders, consumers have just not been driving their vehicles at all in a lot of markets. So miles driven we feel like is going to be significantly drawn down. We think that was a driver of a lot of the negative impact to our first quarter results. And it really just depends on how this thing plays out. Miles driven is going to be a key factor in what our business does going forward. And it really just depends on the timing of when the stay-at-home orders are released and people are able to go back to work and get back to their normal lives.

是的。那我先說第一部分，然後讓湯姆來談談通膨問題。克里斯，很多方面都很相似，但也有一些方面截然不同。在2008年和2009年，我們指出了許多影響因素。我們談到了季節性調整後的年化率（SAAR），談到了行駛里程，談到了西班牙裔消費者的「冬眠期」等等。我們現在面臨的情況的獨特之處在於，行駛里程可能會受到迄今為止的巨大影響。由於居家隔離令，許多市場的消費者根本沒有開車。因此，我們認為行駛里程將會大幅下降。我們認為這是我們第一季業績受到負面影響的主要原因之一。而這真的取決於事態的發展。行駛里程將是我們未來業務發展的關鍵因素。這實際上取決於居家隔離令何時解除，人們何時能夠重返工作崗位，並恢復正常生活。

On the inflation, it was a little over 2.5%, which is pretty much exactly where we expected it to be, all driven by anniversarying sale price increases from last year -- really to last year's tariffs. We'd expect that to be the highest number of the year and to decline as we anniversary the last year's tariffs.

通膨率略高於2.5%，這與我們的預期基本一致，主要原因是去年週年慶期間的商品價格上漲——實際上是去年關稅上漲的結果。我們預計這將是今年的最高通膨率，並隨著去年關稅週年紀念日的臨近而下降。

Our next question on line comes from Bret Jordan of Jefferies.

下一個線上提問來自傑富瑞集團的布雷特喬丹。

Quick question. I guess when you think about the payables programs and, I guess, leverage ratio is likely to go up as EBIT comes down in the coming miles driven contraction. Do the banks get any more, I guess, or less credit available or higher rates on the payables programs in the next couple of quarters? Or is that pretty well understood if you want off and worked out?

問個問題。我想，考慮到應付帳款項目，以及未來幾季隨著行駛里程減少導致息稅前利潤下降，槓桿率可能會上升。那麼，銀行在未來幾季能否獲得更多信貸，還是信貸額度減少，或者應付帳款項目的利率會更高呢？或者說，如果想了解具體狀況，大家都已經很清楚了？

So our vendor financing program is primarily akin to what our rating is. And our expectation is that, that will not change, and we'll be very conservative in our balance sheet, although we will see pressure from a operating standpoint, given the current environment. We generate a significant amount of cash, and we expect to be able to very effectively manage our leverage ratios.

因此，我們的供應商融資計劃主要與我們的信用評級相關。我們預計這種情況不會改變，儘管鑑於當前環境，我們在營運方面會面臨壓力，但我們仍將保持非常保守的資產負債表策略。我們擁有大量現金流，並期望能夠非常有效地控制槓桿率。

Great. And then I guess a question as far as the broader industry. Obviously, a lot of doors, when you think about independent distributors and all. Do you think that we're going to see meaningful contraction in the total number of doors, just given the magnitude and the abruptness of this decline, independents or buying group members that may go away?

好的。那我想問一個關於整個產業的問題。顯然，考慮到獨立經銷商等等，門市數量會大幅減少。鑑於此次下滑的規模和突然性，以及可能出現的獨立經銷商或採購集團成員的退出，您認為門市總數會顯著縮減嗎？

Bret, I really don't think we've got a good feel for that yet. We've got -- when you look at the shops that are out there, a lot of those shops are strong financially. When you look at a layer above that, the WDs, those guys are strong financially. I think it would be naive to think that there wouldn't be some doors closed throughout all this. But I just don't think at this point, we've got a scope -- an idea of the scope or the magnitude of that.

布雷特，我覺得我們目前還沒有真正了解情況。看看現在市面上的店鋪，許多店舖的財務狀況都很穩健。再看看更高一級的WD（批發商），他們的財務狀況也很好。我認為，如果認為在這一切過程中不會有一些店鋪關門，那就太天真了。但就目前而言，我們還沒有掌握問題的全貌──沒有概念，不知道問題的範圍或嚴重程度。

Next question on line comes from Daniel Imbro of Stephens, Inc.

下一個線上提問者是 Stephens, Inc. 公司的 Daniel Imbro。

I wanted to ask -- and apologies. I hopped on late. Sorry if you discussed this in your remarks. But have you seen an uplift in sales through your online channels relative to the last few quarters as we've seen this work-from-home environment? And if so, has it exposed any weaknesses or area that need investment in your infrastructure? Has it given you guys any new learnings around where future investments could drive incremental sales on the online side?

我想問一下——抱歉，我來晚了。如果您已經在發言中談到了這一點，請見諒。但鑑於目前居家辦公室的趨勢，您認為與過去幾季相比，線上通路的銷售額是否有所提升？如果有，這是否暴露了您基礎設施方面的任何薄弱環節或需要投資的領域？這是否讓您對未來哪些方面的投資可以推動線上銷售成長有了新的認識？

Yes, Daniel. So we -- I did say earlier that we have seen improvement in e-commerce sales, although it's still a very, very small percentage of our total sales. Throughout the last several weeks, the stay-at-home orders clearly have driven more consumers to shop online. The one thing that hasn't changed during that process is how those customers are buying from us. Consistently, over the years, customers have erred to the side of -- even to forgo discounts to Buy Online, Pick Up In-Store, and that just speaks to the urgency of need in our industry. And we've seen an uptick in sales, but we haven't seen a change in those buying habits. And that most of those purchases do resolve in the team -- or the customers coming to our stores. We have advertised our curbside delivery. And I think that's been very popular with a lot of consumers that just are not comfortable going in and socializing with people during this pandemic. So we have done a lot of business through that channel. But most of our volume continues to be -- our e-commerce volume continues to be Buy Online, Pick Up In-Store.

是的，丹尼爾。我之前確實說過，我們的電商銷售額有所成長，儘管它在我們總銷售額中所佔的比例仍然非常非常小。在過去的幾周里，居家隔離令顯然促使更多消費者轉向線上購物。但過程中唯一沒有改變的是顧客的購買方式。多年來，顧客一直傾向於選擇線上購買、門市自提，甚至不惜放棄折扣，這也反映了我們行業的迫切需求。我們看到銷售額有所成長，但顧客的購買習慣並沒有改變。而且，大部分訂單最終還是由我們團隊或顧客親自到店完成。我們一直在推廣路邊取貨服務。我認為這項服務非常受那些在疫情期間不願出門與人接觸的消費者歡迎。因此，我們透過這個管道完成了大量的交易。但我們的大部分交易量仍然是——我們的電子商務交易量仍然是在線購買，店內取貨。

Got it. That's helpful. And then just a follow-up on the working capital question earlier. Tom, as we look at the balance sheet, inventory did grow pretty meaningfully. Can you help us parse out how much of that was the proactive $100 million inventory investment you had planned for this year? And any early signs that, that is helping gain incremental share? Can you parse out the impact that's having on the rest of the P&L?

明白了，這很有幫助。關於之前提到的營運資金問題，我還有一個後續問題。湯姆，我們來看資產負債表，庫存確實增加了不少。你能幫我們分析一下，其中有多少是你今年計畫的1億美元主動庫存投資嗎？目前是否有跡象顯示這筆投資正在幫助我們提升市場佔有率？可以分析一下這筆投資對損益表其他部分的影響嗎？

So about half of it was the additional growth that we planned for this year and half of it was -- we just didn't move as many winter goods and end of spring, as Greg talked about, the inbound keeps coming. So we're planning for business, and it was very rough going the last 2 weeks. As far as are the additional SKUs making a difference, that will take time to determine. And there is so much disruption out there in the market right now that, that is -- clouds everything else from a testing perspective.

所以，大約一半是我們今年計劃的額外增長，另一半則是——正如格雷格所說，我們冬季商品的銷量不如預期，而且春末的到貨量還在持續增加。因此，我們正在為業務做準備，但過去兩週非常艱難。至於新增的SKU是否會產生影響，還需要時間來判斷。目前市面上許多的干擾因素，從測試的角度來看，也讓其他一切都變得撲朔迷離。

We have reached our allotted time for questions. I will now turn the call back over to Mr. Greg Johnson for closing remarks.

提問環節時間已到。現在我將把電話交還給格雷格·約翰遜先生，請他作總結發言。

Thank you, Latif. We'd like to conclude our call today by thanking the entire O'Reilly team for their continued selfless dedication to our customers. I'd like to thank everyone for joining our call today, and we look forward to reporting our second quarter results in July. Thank you.

謝謝拉蒂夫。今天電話會議的最後，我們要感謝奧萊利團隊全體成員一直以來對客戶的無私奉獻。感謝各位今天參加我們的電話會議，我們期待在七月公佈第二季業績。謝謝。

Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.

謝謝各位。今天的會議到此結束。感謝各位的參與。現在可以斷開連線了。