ATLANTA, April 19, 2013 /PRNewswire/ -- Genuine Parts
Company (NYSE: GPC) reports sales and earnings for the first
quarter ended March 31,
2013.
(Logo: http://photos.prnewswire.com/prnh/20081002/CLTH108LOGO
)
Thomas C. Gallagher, Chairman and
Chief Executive Officer, announced today that sales for the first
quarter ended March 31, 2013, were
$3.20 billion, up 0.6% compared to
$3.18 billion in the first quarter of
2012. Net income for the quarter was $144.4 million, down 1% from $146.3 million recorded in the same period of the
previous year. Earnings per share on a diluted basis were
93 cents, unchanged from the first
quarter last year.
Mr. Gallagher stated, "Entering 2013, we felt that the first
quarter of the year would be our most challenging. Our
earnings for the quarter are a direct reflection of the 0.6% sales
increase. Among our segments, the Automotive Group reported a
3% sales increase, driven by our commercial growth and the positive
impact of the Quaker City acquisition. Motion Industries, our
Industrial Group, was down 2% in the quarter; and EIS, our
Electrical/Electronic Group, was down 5%. S.P. Richards, our Office Products Group,
reported a 1% decrease in sales for the quarter."
Mr. Gallagher concluded, "Despite the rather slow start to the
year, we remain optimistic about our prospects for stronger sales
and earnings over the balance of 2013. Our sales initiatives
and ongoing investments in the businesses, coupled with certain
external indicators, bode well for our future growth. We also
continue to generate solid cash flows and our balance sheet is
strong. Finally, on April
1st, we welcomed Exego, a leading aftermarket
distributor in Australasia, to the GPC family as a wholly-owned
subsidiary of the Company. We are excited about the growth
opportunities we see with the Exego team."
Conference Call
Genuine Parts Company will hold a conference call today at
11:00 a.m. EDT to discuss the results
of the quarter and the future outlook. Interested parties may
listen to the call on the Company's website, www.genpt.com, by
clicking "Investor Services", or by dialing 877-331-5106,
conference ID 29857123. A replay will also be available on
the Company's website or at 855-859-2056, conference ID 29857123,
two hours after the completion of the call until 12:00 a.m. EDT on May 4,
2013.
Forward Looking Statements
Some statements in this report, as well as in other materials we
file with the Securities and Exchange Commission (SEC) or
otherwise release to the public and in materials that we make
available on our website, constitute forward-looking statements
that are subject to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Senior officers may
also make verbal statements to analysts, investors, the media and
others that are forward-looking. Forward-looking statements
may relate, for example, to future operations, prospects,
strategies, financial condition, economic performance (including
growth and earnings), industry conditions and demand for our
products and services. The Company cautions that its
forward-looking statements involve risks and uncertainties, and
while we believe that our expectations for the future are
reasonable in view of currently available information, you are
cautioned not to place undue reliance on our forward-looking
statements. Actual results or events may differ materially
from those indicated as a result of various important
factors. Such factors may include, among other things,
slowing demand for the Company's products, changes in general
economic conditions, including, unemployment, inflation or
deflation, high energy costs, uncertain credit markets and other
macro-economic conditions, the ability to maintain favorable vendor
arrangements and relationships, disruptions in our vendors'
operations, competitive product, service and pricing pressures, the
Company's ability to successfully implement its business
initiatives in each of its four business segments, the Company's
ability to successfully integrate its acquired businesses, the
uncertainties and costs of litigation, as well as other risks and
uncertainties discussed in the Company's Annual Report on Form 10-K
for 2012 and from time to time in the Company's subsequent filings
with the SEC.
Forward-looking statements are only as of the date they are
made, and the Company undertakes no duty to update its
forward-looking statements except as required by law. You are
advised, however, to review any further disclosures we make on
related subjects in our subsequent Forms 10-K, 10-Q, 8-K and other
reports to the SEC.
About Genuine Parts Company
Genuine Parts Company is a distributor of automotive replacement
parts in the U.S., Canada,
Mexico and Australasia. The
Company also distributes industrial replacement parts in the U.S.,
Canada and Mexico through its Motion Industries
subsidiary. S. P. Richards Company, the Office Products
Group, distributes business products nationwide in the U.S. and
Canada. The Electrical/Electronic
Group, EIS, Inc., distributes electrical and electronic components
throughout the U.S., Canada and
Mexico.
GENUINE
PARTS COMPANY and SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
|
|
|
|
Three
Months Ended March 31,
|
|
2013
|
2012
|
|
(Unaudited)
|
|
(in
thousands, except per share data)
|
|
|
|
Net
sales
|
$3,198,802
|
$3,181,288
|
Cost of
goods sold
|
2,277,054
|
2,262,177
|
Gross
profit
|
921,748
|
919,111
|
|
|
|
Operating
expenses:
|
|
|
Selling,
administrative & other expenses
|
673,612
|
667,958
|
Depreciation and amortization
|
25,999
|
22,985
|
|
699,611
|
690,943
|
|
|
|
Income
before income taxes
|
222,137
|
228,168
|
Income
taxes
|
77,748
|
81,913
|
Net
income
|
$ 144,389
|
$ 146,255
|
|
|
|
Basic net
income per common share
|
$
.93
|
$
.94
|
Diluted
net income per common share
|
$
.93
|
$
.93
|
|
|
|
Weighted
average common shares outstanding
|
154,891
|
155,810
|
Dilutive
effect of stock options and non-vested restricted stock
awards
|
1,040
|
1,139
|
Weighted
average common shares outstanding – assuming dilution
|
155,931
|
156,949
|
GENUINE
PARTS COMPANY and SUBSIDIARIES
|
SEGMENT
INFORMATION AND FINANCIAL HIGHLIGHTS
|
|
|
|
Three
Months Ended March 31,
|
|
2013
|
2012
|
|
(Unaudited)
|
|
(in
thousands)
|
|
|
|
Net
sales:
|
|
|
Automotive
|
$1,544,537
|
$1,493,499
|
Industrial
|
1,102,080
|
1,121,223
|
Office
Products
|
420,128
|
426,153
|
Electrical/Electronic
Materials
|
139,185
|
147,116
|
Other (1)
|
(7,128)
|
(6,703)
|
Total net sales
|
$3,198,802
|
$3,181,288
|
|
|
|
Operating
profit:
|
|
|
Automotive
|
$
121,043
|
$
114,561
|
Industrial
|
78,895
|
84,328
|
Office
Products
|
33,192
|
37,515
|
Electrical/Electronic
Materials
|
10,451
|
11,966
|
Total operating
profit
|
243,581
|
248,370
|
Interest expense,
net
|
(3,353)
|
(4,715)
|
Other, net
|
(18,091)
|
(15,487)
|
Income before income taxes
|
$ 222,137
|
$ 228,168
|
|
|
|
Capital
expenditures
|
$ 12,924
|
$ 16,889
|
|
|
|
Depreciation and amortization
|
$ 25,999
|
$ 22,985
|
|
|
|
(1)
|
Represents
the net effect of discounts, incentives and freight
billed
reported as a component of net sales.
|
GENUINE
PARTS COMPANY and SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
March
31,
|
March
31,
|
|
2013
|
2012
|
|
(Unaudited)
|
|
(in
thousands)
|
ASSETS
|
|
|
CURRENT
ASSETS
|
|
|
Cash and
cash equivalents
|
$
841,894
|
$
424,424
|
Trade
accounts receivable, net
|
1,624,954
|
1,605,469
|
Merchandise inventories, net
|
2,560,077
|
2,442,512
|
Prepaid
expenses and other current assets
|
324,679
|
307,255
|
|
|
|
TOTAL CURRENT
ASSETS
|
5,351,604
|
4,779,660
|
|
|
|
Goodwill
and other intangible assets, less accumulated
amortization
|
492,756
|
292,893
|
Deferred
tax asset
|
273,488
|
257,292
|
Other
assets
|
639,335
|
588,322
|
Net
property, plant and equipment
|
581,279
|
500,845
|
|
|
|
TOTAL
ASSETS
|
$7,338,462
|
$6,419,012
|
|
LIABILITIES AND EQUITY
|
|
|
CURRENT
LIABILITIES
|
|
|
Trade
accounts payable
|
$1,800,726
|
$1,559,874
|
Current
portion of debt
|
664,742
|
-
|
Income
taxes payable
|
68,375
|
72,080
|
Dividends
payable
|
83,267
|
77,168
|
Other
current liabilities
|
406,204
|
422,722
|
|
|
|
TOTAL CURRENT
LIABILITIES
|
3,023,314
|
2,131,844
|
|
|
|
Long-term
debt
|
250,000
|
500,000
|
Retirement
and other post-retirement benefit liabilities
|
505,543
|
487,932
|
Other
long-term liabilities
|
485,162
|
444,470
|
|
|
|
Common
stock
|
154,966
|
155,910
|
Retained
earnings and other
|
3,407,317
|
3,142,890
|
Accumulated other comprehensive loss
|
(497,934)
|
(453,519)
|
TOTAL PARENT
EQUITY
|
3,064,349
|
2,845,281
|
|
|
|
Noncontrolling interests in subsidiaries
|
10,094
|
9,485
|
TOTAL
EQUITY
|
3,074,443
|
2,854,766
|
|
|
|
TOTAL
LIABILITIES AND EQUITY
|
$7,338,462
|
$6,419,012
|
GENUINE
PARTS COMPANY and SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
|
Three
Months
Ended
March 31,
|
|
2013
|
2012
|
|
(Unaudited)
|
|
(in
thousands)
|
|
|
|
OPERATING
ACTIVITIES:
|
|
|
Net income
|
$144,389
|
$146,255
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
Depreciation and
amortization
|
25,999
|
22,985
|
Share-based
compensation
|
2,477
|
1,749
|
Excess tax benefits
from share-based compensation
|
(3,840)
|
(5,335)
|
Other
|
(67)
|
(50)
|
Changes in operating
assets and liabilities
|
(52,580)
|
6,693
|
|
|
|
NET CASH
PROVIDED BY OPERATING ACTIVITIES
|
116,378
|
172,297
|
|
|
|
INVESTING
ACTIVITIES:
|
|
|
Purchases of property,
plant and equipment
|
(12,924)
|
(16,889)
|
Acquisitions and other
investing activities
|
(6,745)
|
(188,918)
|
|
|
|
NET CASH
USED IN INVESTING ACTIVITIES
|
(19,669)
|
(205,807)
|
|
|
|
FINANCING
ACTIVITIES:
|
|
|
Proceeds from
debt
|
439,742
|
-
|
Payments on
debt
|
(25,000)
|
-
|
Share-based awards
exercised, net of taxes paid
|
(4,425)
|
(3,122)
|
Excess tax benefits
from share-based compensation
|
3,840
|
5,335
|
Dividends
paid
|
(76,641)
|
(70,019)
|
Purchase of
stock
|
(110)
|
(296)
|
|
|
|
NET CASH
PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
337,406
|
(68,102)
|
|
|
|
EFFECT OF
EXCHANGE RATE CHANGES ON CASH
|
4,684
|
982
|
|
|
|
NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
438,799
|
(100,630)
|
|
|
|
CASH AND
CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
403,095
|
525,054
|
|
|
|
CASH AND
CASH EQUIVALENTS AT END OF PERIOD
|
$841,894
|
$424,424
|
SOURCE Genuine Parts Company