ATLANTA, April 22, 2021 /PRNewswire/ -- Genuine Parts
Company (NYSE: GPC) announced today its results for the first
quarter ended March 31, 2021.
"We are pleased with the strong start to 2021 and the ongoing
recovery in our Automotive and Industrial businesses. The GPC team
remained focused on execution and demonstrated agility in
delivering strong financial results. We also operated through the
quarter with continued focus on the physical and mental well-being
of our employees, as our 50,000 teammates are the core of our
success," said Paul Donahue,
Chairman and Chief Executive Officer of Genuine Parts Company.
First Quarter 2021 Results
Sales from continuing operations were $4.5 billion, a 9.1% increase compared to
$4.1 billion in the same period of
the prior year. The increase is attributable to a 4.6% increase in
comparable sales, a 3.7% net benefit of foreign currency and other,
and a 0.8% benefit from acquisitions.
Net income from continuing operations on both a GAAP and
adjusted basis was $217.7 million, or
a diluted earnings per share of $1.50. This compares to net income from
continuing operations of $122.3
million, or $0.84 per diluted
share in the prior year period, an increase of 79%, and compares to
adjusted net income from continuing operations of $116.8 million last year1, or adjusted
diluted earnings per share of $0.80,
an increase of 88%.
Mr. Donahue stated, "Our positive sales growth was driven by a
number of factors, including the overall strengthening economy,
stimulus and execution of key initiatives. The Automotive business
posted our strongest growth, with positive sales comps in each
region of our operations, and Industrial continued its recovery
with the third consecutive quarter of improving sales trends. In
addition, we executed very well, producing our 14th consecutive
quarter of gross margin expansion and managing our expenses through
ongoing cost actions and the carryover of expense reductions
implemented last year. Our progress in these areas drove a
substantial increase in operating profit and net earnings, and we
expect to build on this positive momentum as we move forward
through the year."
______________________________
1 Adjusted net income from continuing operations,
adjusted diluted net income from continuing operations per common
share and free cash flow referred in this press release are
non-GAAP financial measures. Please refer to the supplemental
information presented below for reconciliations of the non-GAAP
financial measures used in this release to the most comparable GAAP
financial measure and related disclosures.
First Quarter 2021 Segment Highlights
Automotive Parts Group
Automotive sales were $3.0
billion, up 14.3% from the first quarter of 2020,
representing 66% of total Company revenues. The increase consisted
of an 8.3% increase in comparable sales, a 5.1% net benefit of
foreign currency and other and a 0.9% contribution from
acquisitions. Segment profit of $235.7
million increased 65.3%, with a segment profit margin of
8.0%, up 250 basis points from 2020.
Industrial Parts Group
Industrial sales were $1.5
billion, up 0.1% from the first quarter of 2020,
representing 34% of total company revenues. The increase includes a
1.3% benefit of foreign currency and a 0.6% contribution from
acquisitions, mostly offset by a 1.8% decrease in comparable
sales. Segment profit of $125.3
million increased 10.0%, with profit margin of 8.3%, up 80
basis points from 2020.
Balance Sheet, Cash Flow and Capital Allocation
The Company generated operating cash flow from continuing
operations of $300.9 million during
the first three months of 2021, an increase from $27.9 million in the prior year, driven primarily
by higher net income and the effective management of our working
capital. The Company used $40.7
million in cash for investing activities, including
$48.4 million for capital
expenditures in the quarter. The Company also used $116.0 million in cash for financing activities
which includes quarterly dividends of $114.0
million paid to shareholders. Free cash flow was
$252.6 million for the first three
months of 20211.
The Company ended the quarter with $2.6 billion in total liquidity, consisting
of $1.5 billion availability on the
revolving credit facility and $1.1
billion in cash and cash equivalents. The Company is in
compliance with all covenants connected to its notes and other
borrowings.
"We have a strong cash position and ample financial strength to
pursue strategic growth opportunities through our disciplined
capital allocation strategy. Looking ahead, GPC is well-positioned
to benefit from a strong economic recovery, favorable sales trends
and clear strategic plan to capture profitable growth, generate
strong cash flow and create shareholder value," Mr. Donahue
concluded.
2021 Outlook
In consideration of several factors, the Company is updating its
full-year 2021 guidance previously provided in its earnings release
on February 17, 2021. The Company
considered its recent business trends and financial results,
current growth plans, strategic initiatives, global economic
outlook and the continued uncertainty of COVID-19 and its potential
impact on our results in its updated guidance, as outlined in the
table below. The Company will continue to update full-year guidance
during 2021, as appropriate.
|
|
For the Year Ended
December 31, 2021
|
|
|
Previous
Outlook
|
|
Updated
Outlook
|
Total sales
growth
|
|
4% to 6%
|
|
5% to 7%
|
Automotive sales
growth
|
|
4% to 6%
|
|
5% to 7%
|
Industrial sales
growth
|
|
3% to 5%
|
|
4% to 6%
|
Diluted earnings per
share
|
|
$5.55 to
$5.75
|
|
$5.85 to
$6.05
|
Effective tax
rate
|
|
24.5% to
25.5%
|
|
24.5% to
25.5%
|
Net cash provided by
operating activities
|
|
$1.0 billion to $1.2
billion
|
|
$1.0 billion to $1.2
billion
|
Free cash
flow
|
|
$700 million to $900
million
|
|
$700 million to $900
million
|
Non-GAAP Information
This release contains certain financial information not derived
in accordance with United States
("U.S.") generally accepted accounting principles ("GAAP"). These
items include adjusted net income from continuing operations,
adjusted diluted net income from continuing operations per common
share and free cash flow. The Company believes that the
presentation of adjusted net income from continuing operations,
adjusted diluted net income from continuing operations per common
share and free cash flow, when considered together with the
corresponding GAAP financial measures and the reconciliations to
those measures, provide meaningful supplemental information to both
management and investors that is indicative of the Company's core
operations. The Company considers these metrics useful to
investors because they provide greater transparency into
management's view and assessment of the Company's ongoing operating
performance by removing items management believes are not
representative of our continuing operations and may distort our
longer-term operating trends. We believe these measures are useful
and enhance the comparability of our results from period to period
and with our competitors, as well as show ongoing results from
operations distinct from items that are infrequent or not
associated with the Company's core operations. The Company
does not, nor does it suggest investors should, consider such
non-GAAP financial measures as superior to, in isolation from, or
as a substitute for, GAAP financial information. The Company has
included a reconciliation of this additional information to the
most comparable GAAP measure following the financial statements
below.
Comparable Sales
Comparable sales is a key metric that refers to
period-over-period comparisons of our sales excluding the impact of
acquisitions, foreign currency and other. The Company considers
this metric useful to investors because it provides greater
transparency into management's view and assessment of the Company's
core ongoing operations. This is a metric that is widely used by
analysts, investors and competitors in our industry, although our
calculation of the metric may not be comparable to similar measures
disclosed by other companies, because not all companies and
analysts calculate this metric in the same manner.
Conference Call
Genuine Parts Company will hold a conference call today at
11:00 a.m. Eastern time to discuss
the results of the quarter. A supplemental earnings deck will also
be available for reference. Interested parties may listen to the
call and view the supplemental earnings deck on the Company's
website at http://genuineparts.investorroom.com. The call is also
available by dialing 877-407-0789, conference ID 13717891. A replay
will also be available on the Company's website or at 844-512-2921,
conference ID 13717891, two hours after the completion of the
call.
About Genuine Parts Company
Founded in 1928, Genuine Parts Company is a global service
organization engaged in the distribution of automotive replacement
parts and industrial parts. The Company's Automotive Parts Group
distributes automotive replacement parts in the U.S., Canada, Mexico, Australasia, France, the United
Kingdom ("U.K."), Germany,
Poland, the Netherlands and Belgium. The Company's Industrial Parts Group
distributes industrial replacement parts in the U.S., Canada, Mexico and Australasia. In total, the Company
serves its global customers from an extensive network of more than
10,000 locations in 14 countries. Genuine Parts Company had 2020
revenues of $16.5 billion. Further
information is available at www.genpt.com.
Forward Looking Statements
Some statements in this release, as well as in materials the
Company files with the Securities and Exchange Commission (SEC),
release to the public or make available on the Company's website,
constitute forward-looking statements that are subject to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. All statements in the future tense and all statements
accompanied by words such as "expect," "likely," "outlook,"
"forecast," "preliminary," "would," "could," "should," "position,"
"will," "project," "intend," "plan," "on track," "anticipate," "to
come," "may," "possible," "assume," or similar expressions are
intended to identify such forward-looking statements. These
forward-looking statements include the Company's view of business
and economic trends for the remainder of the year, the Company's
ability to execute our strategic priorities and capitalize in light
of these business and economic trends, and the updated full-year
2021 financial guidance for the Company provided above. Senior
officers may also make verbal statements to analysts, investors,
the media and others that are forward-looking.
The Company cautions that all forward-looking statements involve
risks and uncertainties, and while the Company believes that its
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, the extent and duration of the disruption to the Company's
business operations caused by the global health crisis associated
with the COVID-19 pandemic, including the effects on the financial
health of the Company's business partners and customers, on supply
chains and the Company's suppliers, on vehicle miles driven as well
as other metrics that affect the Company's business, and on access
to capital and liquidity provided by the financial and capital
markets; the Company's ability to maintain compliance with its debt
covenants; the Company's ability to successfully integrate acquired
businesses into the Company's operations and to realize the
anticipated synergies and benefits; the Company's ability to
successfully implement its business initiatives in its two business
segments; slowing demand for the Company's products; the ability to
maintain favorable supplier arrangements and relationships;
disruptions in global supply chains and in the operations of the
Company's suppliers, including as a result of the impact of
COVID-19 on our suppliers and our supply chain; changes in national
and international legislation or government regulations or
policies, including changes to import tariffs, environmental and
social policy, infrastructure programs and privacy legislation, and
their impact to the Company and its suppliers and customers;
changes in general economic conditions, including unemployment,
inflation (including the impact of tariffs) or deflation and the
U.K.'s exit from the European Union, and the unpredictability of
the impact following such exit; changes in tax policies; volatile
exchange rates; volatility in oil prices; significant cost
increases, such as rising fuel and freight expenses; the Company's
ability to successfully attract and retain employees in the current
labor market; uncertain credit markets and other macroeconomic
conditions; competitive product, service and pricing pressures;
failure or weakness in the Company's disclosure controls and
procedures and internal controls over financial reporting,
including as a result of the work from home environment; the
uncertainties and costs of litigation; disruptions caused by a
failure or breach of the Company's information systems, as well as
other risks and uncertainties discussed in the Company's Annual
Report on Form 10-K for 2020 and from time to time in the Company's
subsequent filings with the SEC.
Forward-looking statements speak only as of the date they are
made, and the Company undertakes no duty to update any
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 filed with the SEC.
GENUINE PARTS COMPANY
AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
|
|
|
|
Three Months Ended
March 31,
|
(in thousands, except per share data)
|
|
2021
|
|
2020
|
Net sales
|
|
$
|
4,464,714
|
|
|
$
|
4,092,526
|
|
Cost of goods
sold
|
|
2,923,899
|
|
|
2,704,348
|
|
Gross
profit
|
|
1,540,815
|
|
|
1,388,178
|
|
Operating
expenses:
|
|
|
|
|
Selling,
administrative and other expenses
|
|
1,195,164
|
|
|
1,142,697
|
|
Depreciation and
amortization
|
|
72,296
|
|
|
67,254
|
|
Provision for doubtful
accounts
|
|
4,909
|
|
|
6,519
|
|
Restructuring
costs
|
|
—
|
|
|
2,982
|
|
Total operating
expenses
|
|
1,272,369
|
|
|
1,219,452
|
|
Non-operating (income)
expense:
|
|
|
|
|
Interest
expense
|
|
19,062
|
|
|
20,965
|
|
Other
|
|
(36,475)
|
|
|
(12,832)
|
|
Total non-operating
(income) expense
|
|
(17,413)
|
|
|
8,133
|
|
Income before income
taxes
|
|
285,859
|
|
|
160,593
|
|
Income
taxes
|
|
68,149
|
|
|
38,247
|
|
Net income from
continuing operations
|
|
217,710
|
|
|
122,346
|
|
Net income from
discontinued operations
|
|
—
|
|
|
14,189
|
|
Net income
|
|
$
|
217,710
|
|
|
$
|
136,535
|
|
Dividends declared
per common share
|
|
$
|
0.8150
|
|
|
$
|
0.7900
|
|
Basic earnings per
share:
|
|
|
|
|
Continuing
operations
|
|
$
|
1.51
|
|
|
$
|
0.84
|
|
Discontinued
operations
|
|
—
|
|
|
0.10
|
|
Basic earnings per
share
|
|
$
|
1.51
|
|
|
$
|
0.94
|
|
Diluted earnings
per share:
|
|
|
|
|
Continuing
operations
|
|
$
|
1.50
|
|
|
$
|
0.84
|
|
Discontinued
operations
|
|
—
|
|
|
0.10
|
|
Diluted earnings per
share
|
|
$
|
1.50
|
|
|
$
|
0.94
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
144,413
|
|
|
145,052
|
|
Dilutive effect of
stock options and non-vested restricted stock awards
|
|
887
|
|
|
571
|
|
Weighted average
common shares outstanding – assuming dilution
|
|
145,300
|
|
|
145,623
|
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
SEGMENT
INFORMATION
(UNAUDITED)
|
|
|
|
Three Months Ended
March 31,
|
(in
thousands)
|
|
2021
|
|
2020
|
Net sales:
|
|
|
|
|
Automotive
|
|
$
|
2,953,165
|
|
|
$
|
2,582,685
|
|
Industrial
|
|
1,511,549
|
|
|
1,509,841
|
|
Total net
sales
|
|
$
|
4,464,714
|
|
|
$
|
4,092,526
|
|
Segment
profit:
|
|
|
|
|
Automotive
|
|
$
|
235,678
|
|
|
$
|
142,578
|
|
Industrial
|
|
125,292
|
|
|
113,933
|
|
Total segment
profit
|
|
360,970
|
|
|
256,511
|
|
Interest expense,
net
|
|
(18,324)
|
|
|
(19,868)
|
|
Intangible asset
amortization
|
|
(25,544)
|
|
|
(22,740)
|
|
Corporate
expense
|
|
(31,243)
|
|
|
(55,061)
|
|
Other unallocated
costs (1)
|
|
—
|
|
|
1,751
|
|
Income before income
taxes from continuing operations
|
|
$
|
285,859
|
|
|
$
|
160,593
|
|
|
(1)
The following table presents a summary of the other unallocated
costs:
|
|
|
|
Three Months Ended
March 31,
|
(in
thousands)
|
|
2021
|
|
2020
|
Other unallocated
costs:
|
|
|
|
|
Restructuring costs
(2)
|
|
$
|
—
|
|
|
$
|
(2,982)
|
|
Gain on insurance
proceeds related to SPR Fire (3)
|
|
—
|
|
|
12,282
|
|
Transaction and other
costs (4)
|
|
—
|
|
|
(7,549)
|
|
Total other
unallocated costs
|
|
$
|
—
|
|
|
$
|
1,751
|
|
|
(2)
Adjustment reflects restructuring costs related to the execution of
the 2019 Cost Savings Plan. The costs
are
primarily associated with severance and other employee costs,
including a voluntary retirement
program,
and facility and closure costs related to the consolidation of
operations.
|
|
(3)
Adjustment reflects insurance recoveries in excess of losses
incurred on inventory, property, plant and
equipment
and other fire-related costs related to the S.P. Richards
Headquarters and Distribution Center.
|
|
(4)
Adjustment reflects $6.0 million of incremental costs associated
with COVID-19 for the three months
ended
March 31, 2020 and costs associated with certain divestitures.
COVID-19 related costs include
incremental costs incurred relating to fees to cancel marketing
events and increased cleaning and
sanitization materials, among other things.
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
|
(in thousands, except
share and per share data)
|
|
March 31,
2021
|
|
March 31,
2020
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,117,988
|
|
|
$
|
354,469
|
|
Trade accounts
receivable, less allowance for doubtful accounts (2021
– $39,800; 2020 – $34,898)
|
|
1,809,637
|
|
|
2,463,415
|
|
Merchandise
inventories, net
|
|
3,600,658
|
|
|
3,386,289
|
|
Prepaid expenses and
other current assets
|
|
1,149,877
|
|
|
1,128,119
|
|
Current assets of
discontinued operations
|
|
—
|
|
|
660,758
|
|
Total current
assets
|
|
7,678,160
|
|
|
7,993,050
|
|
Goodwill
|
|
1,885,447
|
|
|
2,206,650
|
|
Other intangible
assets, less accumulated amortization
|
|
1,455,333
|
|
|
1,393,387
|
|
Deferred tax
assets
|
|
51,907
|
|
|
52,313
|
|
Property, plant and
equipment, less accumulated depreciation (2021 –
$1,296,920; 2020 – $1,202,059)
|
|
1,165,236
|
|
|
1,134,349
|
|
Operating lease
assets
|
|
1,044,127
|
|
|
969,288
|
|
Other
assets
|
|
663,333
|
|
|
449,695
|
|
Noncurrent assets of
discontinued operations
|
|
—
|
|
|
252,623
|
|
Total
assets
|
|
$
|
13,943,543
|
|
|
$
|
14,451,355
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Trade accounts
payable
|
|
$
|
4,479,398
|
|
|
$
|
3,919,030
|
|
Current portion of
debt
|
|
160,373
|
|
|
908,865
|
|
Dividends
payable
|
|
117,714
|
|
|
114,476
|
|
Other current
liabilities
|
|
1,578,866
|
|
|
1,444,699
|
|
Current liabilities of
discontinued operations
|
|
—
|
|
|
194,150
|
|
Total current
liabilities
|
|
6,336,351
|
|
|
6,581,220
|
|
Long-term
debt
|
|
2,458,020
|
|
|
2,726,391
|
|
Operating lease
liabilities
|
|
788,907
|
|
|
734,210
|
|
Pension and other
post–retirement benefit liabilities
|
|
254,558
|
|
|
249,887
|
|
Deferred tax
liabilities
|
|
206,630
|
|
|
211,160
|
|
Other long-term
liabilities
|
|
562,968
|
|
|
456,101
|
|
Noncurrent
liabilities of discontinued operations
|
|
—
|
|
|
69,355
|
|
Equity:
|
|
|
|
|
Preferred stock, par
value – $1 per share; authorized – 10,000,000
shares; none issued
|
|
—
|
|
|
—
|
|
Common stock, par value
– $1 per share; authorized – 450,000,000
shares; issued and outstanding – 2021 – 144,458,057
shares; 2020 –
144,249,343 shares
|
|
144,458
|
|
|
144,249
|
|
Additional paid-in
capital
|
|
117,867
|
|
|
103,878
|
|
Accumulated other
comprehensive loss
|
|
(1,023,760)
|
|
|
(1,333,329)
|
|
Retained
earnings
|
|
4,085,998
|
|
|
4,487,904
|
|
Total parent
equity
|
|
3,324,563
|
|
|
3,402,702
|
|
Noncontrolling
interests in subsidiaries
|
|
11,546
|
|
|
20,329
|
|
Total
equity
|
|
3,336,109
|
|
|
3,423,031
|
|
Total liabilities and
equity
|
|
$
|
13,943,543
|
|
|
$
|
14,451,355
|
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
|
Three Months Ended
March 31,
|
(in
thousands)
|
|
2021
|
|
2020
|
Operating
activities:
|
|
|
|
|
Net income
|
|
$
|
217,710
|
|
|
$
|
136,535
|
|
Net income from
discontinued operations
|
|
—
|
|
|
14,189
|
|
Net income from
continuing operations
|
|
217,710
|
|
|
122,346
|
|
Adjustments to
reconcile net income from continuing operations to net cash
provided by operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
72,296
|
|
|
67,254
|
|
Share-based
compensation
|
|
6,235
|
|
|
4,495
|
|
Excess tax benefits
from share-based compensation
|
|
(1,764)
|
|
|
(221)
|
|
Changes in operating
assets and liabilities
|
|
6,465
|
|
|
(166,014)
|
|
Net cash provided by
operating activities from continuing operations
|
|
300,942
|
|
|
27,860
|
|
Investing
activities:
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(48,391)
|
|
|
(38,914)
|
|
Proceeds from sale of
property, plant and equipment
|
|
16,863
|
|
|
3,327
|
|
Proceeds from
divestitures of businesses
|
|
10,345
|
|
|
10,442
|
|
Acquisitions of
businesses and other investing activities
|
|
(19,489)
|
|
|
(3,833)
|
|
Net cash used in
investing activities from continuing operations
|
|
(40,672)
|
|
|
(28,978)
|
|
Financing
activities:
|
|
|
|
|
Proceeds from
debt
|
|
31,599
|
|
|
1,318,905
|
|
Payments on
debt
|
|
(26,767)
|
|
|
(1,057,667)
|
|
Share-based awards
exercised
|
|
(5,429)
|
|
|
(341)
|
|
Dividends
paid
|
|
(114,043)
|
|
|
(110,851)
|
|
Purchases of
stock
|
|
—
|
|
|
(95,719)
|
|
Other financing
activities
|
|
(1,354)
|
|
|
(871)
|
|
Net cash (used in)
provided by financing activities from continuing
operations
|
|
(115,994)
|
|
|
53,456
|
|
Cash flows from
discontinued operations:
|
|
|
|
|
Net cash provided by
operating activities from discontinued operations
|
|
—
|
|
|
46,200
|
|
Net cash used in
investing activities from discontinued operations
|
|
—
|
|
|
(6,495)
|
|
Net cash provided by
financing activities from discontinued operations
|
|
—
|
|
|
—
|
|
Net cash provided by
discontinued operations
|
|
—
|
|
|
39,705
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(16,454)
|
|
|
(14,566)
|
|
Net increase in cash
and cash equivalents
|
|
127,822
|
|
|
77,477
|
|
Cash and cash
equivalents at beginning of period
|
|
990,166
|
|
|
276,992
|
|
Cash and cash
equivalents at end of period
|
|
$
|
1,117,988
|
|
|
$
|
354,469
|
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME FROM CONTINUING OPERATIONS TO
ADJUSTED NET INCOME FROM CONTINUING OPERATIONS AND GAAP DILUTED NET
INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE TO ADJUSTED
DILUTED NET INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE
(UNAUDITED)
|
|
|
|
Three Months Ended
March 31,
|
(in
thousands)
|
|
2021
|
|
2020
|
GAAP net income from
continuing operations
|
|
$
|
217,710
|
|
|
$
|
122,346
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
Restructuring costs
(1)
|
|
—
|
|
|
2,982
|
|
Gain on insurance
proceeds related to SPR Fire (2)
|
|
—
|
|
|
(12,282)
|
|
Transaction and other
costs (3)
|
|
—
|
|
|
7,549
|
|
Total
adjustments
|
|
—
|
|
|
(1,751)
|
|
Tax impact of
adjustments
|
|
—
|
|
|
(3,810)
|
|
Adjusted net income
from continuing operations
|
|
$
|
217,710
|
|
|
$
|
116,785
|
|
|
The table below
represent amounts per common share assuming dilution:
|
|
|
|
Three Months Ended
March 31,
|
(in thousands, except
per share data)
|
|
2021
|
|
2020
|
GAAP net income from
continuing operations
|
|
$
|
1.50
|
|
|
$
|
0.84
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
Restructuring costs
(1)
|
|
—
|
|
|
0.02
|
|
Gain on insurance
proceeds related to SPR Fire (2)
|
|
—
|
|
|
(0.08)
|
|
Transaction and other
costs (3)
|
|
—
|
|
|
0.05
|
|
Total
adjustments
|
|
—
|
|
|
(0.01)
|
|
Tax impact of
adjustments
|
|
—
|
|
|
(0.03)
|
|
Adjusted net income
from continuing operations
|
|
$
|
1.50
|
|
|
$
|
0.80
|
|
Weighted average
common shares outstanding – assuming dilution
|
|
145,300
|
|
|
145,623
|
|
|
The table below
clarifies where the items that have been adjusted above to improve
comparability of the financial information from period to period
are presented in the consolidated statements of income.
|
|
|
|
Three Months Ended
March 31,
|
(in
thousands)
|
|
2021
|
|
2020
|
Line item:
|
|
|
|
|
Selling, administrative
and other expenses
|
|
$
|
—
|
|
|
$
|
7,549
|
|
Restructuring
costs
|
|
—
|
|
|
2,982
|
|
Non-operating (income)
expense: Other
|
|
—
|
|
|
(12,282)
|
|
Total
adjustments
|
|
$
|
—
|
|
|
$
|
(1,751)
|
|
|
(1)
Adjustment reflects restructuring costs related to the execution of
the 2019 Cost Savings Plan. The costs are
primarily
associated with severance and other employee costs, including a
voluntary retirement program,
and facility and closure costs related to the consolidation of
operations.
|
|
(2)
Adjustment
reflects insurance recoveries in excess of losses incurred on
inventory, property, plant and
equipment
and other fire-related costs related to the S.P. Richards
Headquarters and Distribution Center.
|
|
(3)
Adjustment includes $6.0 million of incremental costs associated
with COVID-19 for the three months ended
March 31, 2020 and costs associated with certain divestitures.
COVID-19 related costs include incremental
costs incurred relating to fees to cancel marketing events and
increased cleaning and sanitization materials,
among other things.
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
CHANGE IN NET SALES
SUMMARY
(UNAUDITED)
|
|
|
|
Three Months Ended
March 31, 2021
|
|
|
Comparable
Sales
|
|
Acquisitions
|
|
Foreign
Currency
|
|
Other
|
|
GAAP Total
Net Sales
|
Automotive
|
|
8.3
|
%
|
|
0.9
|
%
|
|
5.5
|
%
|
|
(0.4)
|
%
|
|
14.3
|
%
|
Industrial
|
|
(1.8)
|
%
|
|
0.6
|
%
|
|
1.3
|
%
|
|
—
|
%
|
|
0.1
|
%
|
Total Net
Sales
|
|
4.6
|
%
|
|
0.8
|
%
|
|
4.0
|
%
|
|
(0.3)
|
%
|
|
9.1
|
%
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
RECONCILIATION OF
GAAP NET CASH PROVIDED BY OPERATING ACTIVITIES FROM CONTINUING
OPERATIONS TO FREE CASH FLOW
(UNAUDITED)
|
|
|
|
Three Months Ended
March 31,
|
(in
thousands)
|
|
2021
|
|
2020
|
Net cash provided by
operating activities from
continuing operations
|
|
$
|
300,942
|
|
|
$
|
27,860
|
|
Purchases of
property, plant and equipment
|
|
(48,391)
|
|
|
(38,914)
|
|
Free Cash
Flow
|
|
$
|
252,551
|
|
|
$
|
(11,054)
|
|
|
|
|
|
For the Year Ended
December 31, 2021
|
|
|
Previous
Outlook
|
|
Updated
Outlook
|
Net cash provided by
operating activities from
continuing operations
|
|
$1.0 billion to $1.2
billion
|
|
$1.0 billion to $1.2
billion
|
Purchases of
property, plant and equipment
|
|
Approximately $300
million
|
|
Approximately $300
million
|
Free Cash
Flow
|
|
$700 million to $900
million
|
|
$700 million to $900
million
|
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SOURCE Genuine Parts Company