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Gold Eagle Co., a family-owned and ISO 9001-certified manufacturer, has acquired Lubrication Specialties Inc. (LSI).

Ohio-based LSI makes several fuel and oil products for the automotive industry, including the highly rated Hot Shot’s Secret line.

Gold Eagle Co. and LSI share a mutual belief in making high-quality products that improve performance for private automotive consumers, heavy-duty truck drivers, RV owners, Powersports enthusiasts and more, Gold Eagle said in a news release. For example, the Hot Shot’s Secret line holds a 4.8/5.0 score on 

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 based on 2,640 verified customer reviews.

“LSI has always been dedicated to creating high-quality products, and it begins with the way they approach research and development,” Gold Eagle CEO Marc Blackman said. “They have an established record of identifying engine, transmission and fuel system related problems, and then developing cutting-edge chemistry to develop best-of-class solutions.”

Currently, there are more than 50 products, fuel and oil additives, specialty oils, coolants and fluids, that make up the Hot Shot’s Secret line. The brand has some of the highest-performing lubricant products in the country, a strong grassroots following in the diesel community and has earned the title of “The Diesel Experts” within the industry.

Gold Eagle Co. has the resources necessary to expand Hot Shot’s Secret into new distribution channels around the world, according to the company. As a single operating unit, more customers will gain access to LSI’s products, which are proven to increase fuel economy, improve horsepower, generate more torque and help drivers save thousands on engine repairs, Gold Eagle asserted.

“I think the combined entities will benefit both companies in a myriad of ways to further grow our business,” said Blackman. “We have operational synergies that complement each other well, and we each believe in a people-centric culture.” 

LSI CEO Chris Gabrelcik echoed a similar sentiment. “Gold Eagle will be a strong strategic partner that will help us scale to our fullest potential and allow us the freedom to continue making the best products money can buy,” he said.

The merger will not lead to downsizing or significant changes for the LSI team. All 71 employees will retain their respective roles and position LSI for future growth in the local Morrow County economy, according to Gold Eagle.

The LSI executive team will work closely with Gold Eagle Co.’s senior management in Chicago, but it will be business as usual for LSI’s staff and middle management.

“Together, we have the resources and operational bandwidth to make Hot Shot’s Secret a household name, here and abroad,” said Gabrelcik. “This is an exciting development for Lubrication Specialties Inc. and the Hot Shot’s Secret brand, and we are all looking forward to the next chapter.”

The strategic acquisition of LSI inclusive of the Hot Shot’s Secret product brand was completed July 1. Details of the agreement will not be publicly disclosed. 

For more information about Gold Eagle, call 773-376-4400, email Gold Eagle EVP Market Innovation Matthew Banach at [email protected], or visit 

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.

For more information about the acquisition, view this 

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 or email LSI founder and CEO Chris Gabrelcik at [email protected], or visit 
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.

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      (Unaudited)
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      (Unaudited)
      (In thousands)                   For the Six Months Ended     June 30,         2024        2023   Operating activities:               Net income   $ 1,170,086     $ 1,144,250   Adjustments to reconcile net income to net cash provided by operating activities:               Depreciation and amortization of property, equipment and intangibles     222,885       191,673   Amortization of debt discount and issuance costs     3,201       2,431   Deferred income taxes     18,175       13,507   Share-based compensation programs     14,229       14,571   Other     5,215       75   Changes in operating assets and liabilities:               Accounts receivable     (79,475 )     (31,443 ) Inventory     (85,137 )     (257,337 ) Accounts payable     117,582       335,299   Income taxes payable     81,228       261,208   Other     185,085       (22,865 ) Net cash provided by operating activities     1,653,074       1,651,369                 Investing activities:               Purchases of property and equipment     (474,607 )     (460,942 ) Proceeds from sale of property and equipment     7,528       7,056   Investment in tax credit equity investments     —       (4,149 ) Other, including acquisitions, net of cash acquired     (155,376 )     (1,971 ) Net cash used in investing activities     (622,455 )     (460,006 )               Financing activities:               Proceeds from borrowings on revolving credit facility     30,000       2,776,000   Payments on revolving credit facility     (30,000 )     (1,976,000 ) Net payments of commercial paper     (173,500 )     —   Principal payments on long-term debt     —       (300,000 ) Payment of debt issuance costs     —       (24 ) Repurchases of common stock     (1,063,791 )     (1,791,451 ) Net proceeds from issuance of common stock     73,790       48,680   Other     (569 )     (354 ) Net cash used in financing activities     (1,164,070 )     (1,243,149 )               Effect of exchange rate changes on cash     (639 )     1,083   Net decrease in cash and cash equivalents     (134,090 )     (50,703 ) Cash and cash equivalents at beginning of the period     279,132       108,583   Cash and cash equivalents at end of the period   $ 145,042     $ 57,880                 Supplemental disclosures of cash flow information:               Income taxes paid   $ 80,401     $ 65,361   Interest paid, net of capitalized interest     110,449       88,924    
        O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
      SELECTED FINANCIAL INFORMATION
      (Unaudited)                     For the Twelve Months Ended     June 30,  Adjusted Debt to EBITDAR:      2024      2023 (In thousands, except adjusted debt to EBITDAR ratio)               GAAP debt   $ 5,397,774   $ 4,873,702 Add: Letters of credit     137,501     111,428   Unamortized discount and debt issuance costs     27,226     26,298   Six-times rent expense     2,625,438     2,455,938 Adjusted debt   $ 8,187,939   $ 7,467,366               GAAP net income   $ 2,372,417   $ 2,258,260 Add: Interest expense     219,488     179,654   Provision for income taxes     657,727     636,388   Depreciation and amortization     440,273     381,561   Share-based compensation expense     27,169     28,327   Rent expense (i)     437,573     409,323 EBITDAR   $ 4,154,647   $ 3,893,513               Adjusted debt to EBITDAR     1.97     1.92 (i)   The table below outlines the calculation of Rent expense and reconciles Rent expense to Total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the twelve months ended June 30, 2024 and 2023 (in thousands):
          For the Twelve Months Ended     June 30,      2024   2023 Total lease cost, per ASC 842      $ 520,327   $ 485,805 Less: Variable non-contract operating lease components, related to property taxes and insurance     82,754     76,482 Rent expense   $ 437,573   $ 409,323  
          June 30,         2024   2023 Selected Balance Sheet Ratios:                   Inventory turnover (1)     1.7     1.7 Average inventory per store (in thousands) (2)   $ 767   $ 762 Accounts payable to inventory (3)     130.0%     134.4%  
            For the Three Months Ended   For the Six Months Ended       June 30,    June 30,           2024      2023      2024      2023 Reconciliation of Free Cash Flow (in thousands):                             Net cash provided by operating activities   $ 948,859   $ 937,605   $ 1,653,074   $ 1,651,369 Less: Capital expenditures     225,367     237,674     474,607     460,942   Excess tax benefit from share-based compensation payments     5,258     14,612     21,378     18,990   Investment in tax credit equity investments     —     4,149     —     4,149 Free cash flow   $ 718,234   $ 681,170   $ 1,157,089   $ 1,167,288  
          For the Three Months Ended   For the Six Months Ended     June 30,    June 30,         2024      2023      2024      2023 Revenue Disaggregation (in thousands):                       Sales to do-it-yourself customers $ 2,149,044   $ 2,130,002   $ 4,151,030   $ 4,048,469 Sales to professional service provider customers     1,999,704     1,853,364     3,869,444     3,565,328 Other sales, sales adjustments, and sales from the acquired Vast Auto stores     123,453     85,625     227,967     163,058 Total sales   $ 4,272,201   $ 4,068,991   $ 8,248,441   $ 7,776,855  
          For the Three Months Ended   For the Six Months Ended   For the Twelve Months Ended     June 30,    June 30,    June 30,         2024      2023      2024     2023        2024        2023   Store Count:                         Beginning domestic store count   6,131   5,986   6,095   5,929     6,027     5,873   New stores opened   21   41   57   100     126     158   Stores closed   —   —   —   (2 )   (1 )   (4 ) Ending domestic store count   6,152   6,027   6,152   6,027     6,152     6,027                             Beginning Mexico store count   63   43   62   42     44     27   New stores opened   6   1   7   2     25     17   Ending Mexico store count   69   44   69   44     69     44                             Beginning Canada store count   23   —   —   —     —     —   Stores acquired   —   —   23   —     23     —   Ending Canada store count   23   —   23   —     23     —                             Total ending store count   6,244   6,071   6,244   6,071     6,244     6,071    
          For the Three Months Ended   For the Twelve Months Ended     June 30,    June 30,         2024      2023      2024      2023 Store and Team Member Information:                         Total employment     91,874     90,670              Square footage (in thousands) (4)     47,500     45,622             Sales per weighted-average square foot (4)(5)   $ 87.88   $ 88.12   $ 341.51   $ 334.21 Sales per weighted-average store (in thousands) (4)(6)   $ 677   $ 665   $ 2,613   $ 2,516 (1) Calculated as cost of goods sold for the last 12 months divided by average inventory. Average inventory is calculated as the average of inventory for the trailing four quarters used in determining the denominator. 
      (2) Calculated as inventory divided by store count at the end of the reported period. 
      (3) Calculated as accounts payable divided by inventory. 
      (4) Represents O’Reilly’s U.S. and Puerto Rico operations only. 
      (5) Calculated as sales less jobber sales, divided by weighted-average square footage. Weighted-average square footage is determined by weighting store square footage based on the approximate dates of store openings, acquisitions, expansions, or closures. 
      (6) Calculated as sales less jobber sales, divided by weighted-average stores. Weighted-average stores is determined by weighting stores based on their approximate dates of openings, acquisitions, or closures.

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    • By OReilly Auto Parts
      SPRINGFIELD, Mo., July 01, 2024 (GLOBE NEWSWIRE) -- O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, announces the release date for its second quarter 2024 results as Wednesday, July 24, 2024, with a conference call to follow on Thursday, July 25, 2024.

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