ATLANTA, Feb. 17, 2022 /PRNewswire/ --
Fourth Quarter 2021 Highlights
- Sales of $4.8 billion, Up
13.0%
- Diluted EPS from Continuing Operations $1.79
- Adjusted Diluted EPS from Continuing Operations $1.79, Up 17.8%
- 17th Consecutive Quarter of Year-Over-Year Gross Margin
Improvement
- Announced Acquisition of Kaman Distribution Group; Completed
January 3, 2022
Full Year 2021 Highlights
- Sales of $18.9 billion, Up
14.1%
- Segment Profit Margin of 8.8%, Up 60 basis points
- Diluted EPS from Continuing Operations $6.23
- Adjusted Diluted EPS from Continuing Operations $6.91, Up 31.1% and a New Record
- Returned $800 million to
Shareholders via Cash Dividends and Share Repurchases
- Cash Flow from Operations of $1.3
billion and Free Cash Flow of $1.0
billion
2022 Outlook
- Revenue Growth of 9% to 11%
- Diluted EPS of $7.45 to
$7.60
Genuine Parts Company (NYSE: GPC) announced today its results
for the fourth quarter and twelve months ended December 31,
2021.
"The GPC team finished the year with a strong fourth quarter,
further building on the positive momentum of the first nine months
of 2021. We are proud of our progress through the year and thankful
to our 52,000 teammates for their hard work and ongoing commitment
to excellence," said Paul Donahue,
Chairman and Chief Executive Officer of Genuine Parts Company.
"Strong sales growth combined with ongoing initiatives to improve
gross margin and control expenses in an inflationary environment
drove an 18% increase in adjusted earnings per share, which along
with our continued focus on working capital improvement, helped us
to deliver strong cash flow. Our capital allocation priorities
remain investing for enhanced productivity and growth, while also
returning capital to shareholders via the dividend and share
repurchases."
Fourth Quarter 2021 Results
Sales were $4.8 billion, a 13.0%
increase compared to $4.3 billion in
the same period of the prior year. The improvement is attributable
to an 11.3% increase in comparable sales and a 1.9% benefit from
acquisitions, partially offset by a slightly unfavorable impact of
foreign currency and other.
Net income from continuing operations was $256.0 million, or a diluted earnings per
share of $1.79. This compares to net
income from continuing operations of $171.6
million, or $1.18 per diluted
share in the prior year period. The Company's adjusted net income
from continuing operations was $256.2
million, an increase of 16.0% as compared to $221.0 million a year ago. On a per share diluted
basis, adjusted net income from continuing operations was
$1.79, an increase of 17.8% compared
to $1.52 per diluted share last
year1.
Fourth Quarter 2021 Segment Highlights
Automotive Parts Group
Sales for the Automotive Group were $3.2
billion in the fourth quarter, up 13.1% from 2020 and
representing 66% of total Company revenues. The improvement was due
to a 10.6% global increase in comparable sales and a 2.8% benefit
from acquisitions, net of a slightly unfavorable impact of foreign
currency and other. Segment profit of $265.8
million was up 10.7% and the profit margin was 8.3% compared
to 8.5% in the same period of 2020.
Industrial Parts Group
Sales for the Industrial Parts Group were $1.6 billion, up 12.8% from 2020 and representing
34% of total Company revenues. The improvement reflects a 12.5%
increase in comparable sales and a 0.3% favorable impact from
foreign currency. Segment profit of $153.8
million was up 15.3% and the profit margin was 9.5% compared
to 9.3% in 2020, up 20 basis points.
"The double digit sales and earnings growth for the Automotive
and Industrial businesses is a reflection of strong global demand
and the diligent execution of our initiatives to accelerate growth
and improve profitability," Mr. Donahue said. "The strength in
Automotive was broad-based across our operations, with 13% sales
comps in the U.S. and high-single digit sales comps in Canada, Europe and Australasia. Likewise, we had
strong growth in both our North American and Australasian
Industrial businesses, which drove the third consecutive quarter of
double digit comps for this segment."
Full Year 2021 Results
Sales in 2021 were $18.9 billion,
a 14.1% increase from $16.5 billion
for the same period in 2020. Net income from continuing operations
for the twelve months was $898.8
million, or $6.23 per diluted
share. The Company's adjusted net income from continuing operations
was $997.0 million, or $6.91 per diluted share, an increase of 31.1%
compared to $5.27 per diluted share
last year1.
Balance Sheet Cash Flow and Capital Allocation
The Company generated cash flow from continuing operations of
$1.3 billion in 2021, and free cash
flow was $1.0 billion1.
The Company used $506.2 million in
cash for investing activities, including $284.3 million in acquisitions and other
investing activities and $266.1
million for capital expenditures in 2021. Cash used for
financing activities in 2021 was $1.0
billion, with $799.2 million
returned to shareholders, including $465.6
million in dividends and $333.6
million in share repurchases.
The Company ended the quarter and year with $2.2 billion in total liquidity, consisting of
$1.5 billion availability on the
revolving credit facility and $714.7
million in cash and cash equivalents.
"2021 was an exceptional year for GPC. Following the
unprecedented challenges of 2020, our team was focused on advancing
the strategic priorities for our global automotive and industrial
businesses. With the backdrop of the economic recovery and strong
industry fundamentals, we generated double-digit sales and earnings
growth and significantly improved our profit margin, resulting in
strong cash flow and further supporting our balance sheet strength
and capital allocation priorities," Mr. Donahue said. "Looking
ahead, we remain confident in our plans for accelerated growth and
profitability as we build on the underlying momentum in our
automotive and industrial operations and begin to realize the
benefits from our recent industrial acquisition of Kaman
Distribution Group."
2022 Outlook
The Company considered its past performance, business trends,
current growth plans, strategic initiatives, global economic
outlook and the continued uncertainty of COVID-19 and its potential
impact on our results, in establishing its full-year 2022 guidance
as outlined in the table below. In addition, the Company has
accounted for an approximate 2% headwind from foreign currency
translation. The Company will update full-year guidance during
2022, as appropriate.
|
|
Year Ended
12/31/2022
|
Total sales
growth
|
|
9% to 11%
|
Automotive sales
growth
|
|
4% to 6%
|
Industrial sales
growth
|
|
20% to 22%
|
Diluted earnings per
share
|
|
$7.45 to
$7.60
|
Adjusted diluted
earnings per share
|
|
$7.45 to
$7.60
|
Effective tax
rate
|
|
Approx.
25%
|
Net cash provided by
operating activities
|
|
$1.5 billion to $1.7
billion
|
Free cash
flow
|
|
$1.2 billion to $1.4
billion
|
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
investor relations website. The call is also available by dialing
888-317-6003, conference ID 8600891. A replay will also be
available on the Company's website or at 877-344-7529 conference ID
6848555, 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 and
industrial replacement parts. The Company's Automotive Parts Group
distributes automotive replacement parts in the U.S., Canada, Mexico, Australasia, France, the United
Kingdom, Ireland,
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 15 countries and has approximately 52,000
employees. 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 coming year, the Company's ability to
execute our strategic priorities and capitalize in light of these
business and economic trends, and the established full-year 2022
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; changes in 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; 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 2021 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.
_____________________________________
|
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.
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME (LOSS)
(UNAUDITED)
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
(in thousands, except per share data)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net sales
|
|
$
4,803,209
|
|
$
4,251,594
|
|
$
18,870,510
|
|
$
16,537,433
|
Cost of goods
sold
|
|
3,109,760
|
|
2,803,484
|
|
12,236,374
|
|
10,882,592
|
Gross
profit
|
|
1,693,449
|
|
1,448,110
|
|
6,634,136
|
|
5,654,841
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling,
administrative and other expenses
|
|
1,279,265
|
|
1,132,297
|
|
5,162,506
|
|
4,386,739
|
Depreciation and
amortization
|
|
72,594
|
|
69,758
|
|
290,971
|
|
272,842
|
Provision for doubtful
accounts
|
|
3,509
|
|
125
|
|
17,739
|
|
23,577
|
Restructuring
costs
|
|
—
|
|
11,010
|
|
—
|
|
50,019
|
Goodwill impairment
charge
|
|
—
|
|
—
|
|
—
|
|
506,721
|
Total operating
expenses
|
|
1,355,368
|
|
1,213,190
|
|
5,471,216
|
|
5,239,898
|
Non-operating
(income) expenses:
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
14,297
|
|
21,083
|
|
62,150
|
|
91,048
|
Other
|
|
(22,122)
|
|
(11,709)
|
|
(99,576)
|
|
(55,473)
|
Total non-operating
(income) expenses
|
|
(7,825)
|
|
9,374
|
|
(37,426)
|
|
35,575
|
Income before income
taxes
|
|
345,906
|
|
225,546
|
|
1,200,346
|
|
379,368
|
Income
taxes
|
|
89,907
|
|
53,914
|
|
301,556
|
|
215,973
|
Net income from
continuing operations
|
|
255,999
|
|
171,632
|
|
898,790
|
|
163,395
|
Net loss from
discontinued operations
|
|
—
|
|
(428)
|
|
—
|
|
(192,497)
|
Net income
(loss)
|
|
$
255,999
|
|
$
171,204
|
|
$
898,790
|
|
$
(29,102)
|
Dividends declared
per common share
|
|
$
0.815
|
|
$
0.790
|
|
$
3.260
|
|
$
3.160
|
Basic earnings
(loss) per share:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
1.80
|
|
$
1.19
|
|
$
6.27
|
|
$
1.13
|
Discontinued
operations
|
|
—
|
|
—
|
|
—
|
|
(1.33)
|
Basic earnings (loss)
per share
|
|
$
1.80
|
|
$
1.19
|
|
$
6.27
|
|
$
(0.20)
|
Diluted earnings
(loss) per share:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
1.79
|
|
$
1.18
|
|
$
6.23
|
|
$
1.13
|
Discontinued
operations
|
|
—
|
|
—
|
|
—
|
|
(1.33)
|
Diluted earnings
(loss) per share
|
|
$
1.79
|
|
$
1.18
|
|
$
6.23
|
|
$
(0.20)
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
142,275
|
|
144,313
|
|
143,435
|
|
144,474
|
Dilutive effect of
stock options and non-vested restricted
stock awards
|
|
778
|
|
847
|
|
786
|
|
641
|
Weighted average
common shares outstanding —
assuming dilution
|
|
143,053
|
|
145,160
|
|
144,221
|
|
145,115
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
SEGMENT
INFORMATION
(UNAUDITED)
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
(in
thousands)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net sales:
|
|
|
|
|
|
|
|
|
Automotive
|
|
$
3,190,133
|
|
$
2,821,832
|
|
$
12,544,131
|
|
$
10,860,695
|
Industrial
|
|
1,613,076
|
|
1,429,762
|
|
6,326,379
|
|
5,676,738
|
Total net
sales
|
|
$
4,803,209
|
|
$
4,251,594
|
|
$
18,870,510
|
|
$
16,537,433
|
Segment
profit:
|
|
|
|
|
|
|
|
|
Automotive
|
|
$
265,841
|
|
$
240,135
|
|
$
1,073,427
|
|
$
867,743
|
Industrial
|
|
153,773
|
|
133,373
|
|
595,232
|
|
481,854
|
Total segment
profit
|
|
419,614
|
|
373,508
|
|
1,668,659
|
|
1,349,597
|
Interest expense,
net
|
|
(14,297)
|
|
(21,083)
|
|
(62,150)
|
|
(91,048)
|
Corporate
expense
|
|
(44,813)
|
|
(32,701)
|
|
(174,842)
|
|
(149,754)
|
Intangible asset
amortization
|
|
(25,034)
|
|
(24,743)
|
|
(103,273)
|
|
(94,962)
|
Other unallocated
costs
|
|
10,436
|
|
(69,435)
|
|
(128,048)
|
|
(634,465)
|
Income before
income taxes from continuing
operations
|
|
$
345,906
|
|
$
225,546
|
|
$
1,200,346
|
|
$
379,368
|
The following table presents a summary of the other unallocated
costs:
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
(in
thousands)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Other unallocated
costs:
|
|
|
|
|
|
|
|
|
Loss on software
disposal
|
|
$
—
|
|
$
—
|
|
$
(61,063)
|
|
$
—
|
Product liability
damages award
|
|
—
|
|
—
|
|
(77,421)
|
|
—
|
Goodwill impairment
charge
|
|
—
|
|
—
|
|
—
|
|
(506,721)
|
Restructuring
costs
|
|
—
|
|
(11,010)
|
|
—
|
|
(50,019)
|
Realized currency and
other divestiture losses
|
|
—
|
|
—
|
|
—
|
|
(11,356)
|
Gain on insurance
proceeds related to SPR fire
|
|
3,862
|
|
—
|
|
3,862
|
|
13,448
|
Gain on equity
investments
|
|
10,229
|
|
—
|
|
10,229
|
|
—
|
Inventory
adjustment
|
|
—
|
|
(40,000)
|
|
—
|
|
(40,000)
|
Transaction and other
costs
|
|
(3,655)
|
|
(18,425)
|
|
(3,655)
|
|
(39,817)
|
Total other
unallocated costs (1)
|
|
$
10,436
|
|
$
(69,435)
|
|
$
(128,048)
|
|
$
(634,465)
|
|
|
(1)
|
Refer to the
reconciliation of GAAP net income from continuing operations to
adjusted net income from continuing operations for explanation of
adjustments.
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
|
|
|
|
As of December
31,
|
(in thousands, except
share and per share data)
|
|
2021
|
|
2020
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
714,701
|
|
$
990,166
|
Trade accounts
receivable, less allowance for doubtful accounts (2021 –
$44,425;
2020 – $36,622)
|
|
1,797,955
|
|
1,556,966
|
Merchandise
inventories, net
|
|
3,889,919
|
|
3,506,271
|
Prepaid expenses and
other current assets
|
|
1,353,847
|
|
1,060,360
|
Total current
assets
|
|
7,756,422
|
|
7,113,763
|
Goodwill
|
|
1,915,307
|
|
1,917,477
|
Other intangible
assets, net
|
|
1,406,401
|
|
1,498,257
|
Deferred tax
assets
|
|
829
|
|
65,658
|
Property, plant and
equipment, less accumulated depreciation (2021 – $1,339,706;
2020 – $1,398,095)
|
|
1,234,399
|
|
1,162,043
|
Operating lease
assets
|
|
1,053,689
|
|
1,038,877
|
Other
assets
|
|
985,055
|
|
644,140
|
Total
assets
|
|
$
14,352,102
|
|
$
13,440,215
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Trade accounts
payable
|
|
$
4,804,939
|
|
$
4,128,084
|
Current portion of
debt
|
|
—
|
|
160,531
|
Other current
liabilities
|
|
1,660,768
|
|
1,491,426
|
Dividends
payable
|
|
115,876
|
|
114,043
|
Total current
liabilities
|
|
6,581,583
|
|
5,894,084
|
Long-term
debt
|
|
2,409,363
|
|
2,516,614
|
Operating lease
liabilities
|
|
789,175
|
|
789,294
|
Pension and other
post-retirement benefit liabilities
|
|
265,134
|
|
265,687
|
Deferred tax
liabilities
|
|
280,778
|
|
212,910
|
Other long-term
liabilities
|
|
522,779
|
|
543,623
|
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 - 142,180,683 shares and 2020 -
144,354,335 shares
|
|
142,181
|
|
144,354
|
Additional paid-in
capital
|
|
119,975
|
|
117,165
|
Accumulated other
comprehensive loss
|
|
(857,739)
|
|
(1,036,502)
|
Retained
earnings
|
|
4,086,325
|
|
3,979,779
|
Total parent
equity
|
|
3,490,742
|
|
3,204,796
|
Noncontrolling
interests in subsidiaries
|
|
12,548
|
|
13,207
|
Total
equity
|
|
3,503,290
|
|
3,218,003
|
Total liabilities and
equity
|
|
$
14,352,102
|
|
$
13,440,215
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
|
|
Year Ended
December 31
|
(in
thousands)
|
|
2021
|
|
2020
|
|
2019
|
Operating
activities:
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
898,790
|
|
$
(29,102)
|
|
$
621,085
|
Net loss from
discontinued operations
|
|
—
|
|
(192,497)
|
|
(25,390)
|
Net income from
continuing operations
|
|
898,790
|
|
163,395
|
|
646,475
|
Adjustments to
reconcile net income from continuing operations to net cash
provided by operating activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
290,971
|
|
272,842
|
|
257,263
|
Excess tax benefit
from share-based compensation
|
|
(7,076)
|
|
(677)
|
|
(4,920)
|
Deferred income
taxes
|
|
31,676
|
|
(27,722)
|
|
(55,939)
|
Share-based
compensation
|
|
25,597
|
|
22,621
|
|
28,703
|
Loss on software
disposal
|
|
61,063
|
|
—
|
|
—
|
Realized currency and
other divestiture losses
|
|
—
|
|
11,356
|
|
34,701
|
Gain on equity
investments
|
|
(10,229)
|
|
—
|
|
(38,663)
|
Goodwill impairment
charge
|
|
—
|
|
506,721
|
|
—
|
Other operating
activities
|
|
(21,183)
|
|
12,569
|
|
(17,589)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Trade accounts
receivable, net
|
|
(258,994)
|
|
957,514
|
|
(134,163)
|
Merchandise
inventories, net
|
|
(329,237)
|
|
58,462
|
|
(54,765)
|
Trade accounts
payable
|
|
777,318
|
|
89,350
|
|
82,739
|
Other short-term
assets and liabilities
|
|
(148,089)
|
|
(109,812)
|
|
11,740
|
Other long-term assets
and liabilities
|
|
(52,322)
|
|
57,903
|
|
76,937
|
Net cash provided by
operating activities from continuing operations
|
|
1,258,285
|
|
2,014,522
|
|
832,519
|
Investing
activities:
|
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(266,136)
|
|
(153,502)
|
|
(277,873)
|
Proceeds from sale of
property, plant and equipment
|
|
26,549
|
|
18,064
|
|
24,387
|
Proceeds from
divestitures of businesses
|
|
17,738
|
|
387,379
|
|
434,609
|
Acquisitions of
businesses and other investing activities
|
|
(284,315)
|
|
(69,173)
|
|
(724,718)
|
Net cash (used in)
provided by investing activities from continuing
operations
|
|
(506,164)
|
|
182,768
|
|
(543,595)
|
Financing
activities:
|
|
|
|
|
|
|
Proceeds from
debt
|
|
892,694
|
|
2,638,014
|
|
5,037,168
|
Payments on
debt
|
|
(1,053,423)
|
|
(3,533,017)
|
|
(4,897,769)
|
Share-based awards
exercised
|
|
(22,346)
|
|
(4,120)
|
|
(11,413)
|
Dividends
paid
|
|
(465,649)
|
|
(453,277)
|
|
(438,890)
|
Purchase of
stock
|
|
(333,599)
|
|
(96,215)
|
|
(74,187)
|
Other financing
activities
|
|
(7,209)
|
|
(65,150)
|
|
(871)
|
Net cash used in
financing activities from continuing operations
|
|
(989,532)
|
|
(1,513,765)
|
|
(385,962)
|
Cash flows from
discontinued operations:
|
|
|
|
|
|
|
Net cash flows
provided by operating activities from discontinued
operations
|
|
—
|
|
5,039
|
|
59,491
|
Net cash used in
investing activities from discontinued operations
|
|
—
|
|
(11,131)
|
|
(19,611)
|
Net cash provided by
financing activities from discontinued operations
|
|
—
|
|
—
|
|
—
|
Net cash (used in)
provided by discontinued operations
|
|
—
|
|
(6,092)
|
|
39,880
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(38,054)
|
|
35,741
|
|
603
|
Net (decrease)
increase in cash and cash equivalents
|
|
(275,465)
|
|
713,174
|
|
(56,555)
|
Cash and cash
equivalents at beginning of year
|
|
990,166
|
|
276,992
|
|
333,547
|
Cash and cash
equivalents at end of year
|
|
$
714,701
|
|
$
990,166
|
|
$
276,992
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information
|
|
|
|
|
|
|
Cash paid during the
year for:
|
|
|
|
|
|
|
Income taxes
|
|
$
305,326
|
|
$
223,019
|
|
$
303,736
|
Interest
|
|
$
65,732
|
|
$
91,344
|
|
$
95,281
|
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
December 31,
|
|
Twelve Months
Ended
December 31,
|
(in
thousands)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
GAAP net income from
continuing operations
|
|
$
255,999
|
|
$
171,632
|
|
$
898,790
|
|
$
163,395
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Loss on software
disposal (1)
|
|
—
|
|
—
|
|
61,063
|
|
—
|
Product liability
damages award (2)
|
|
—
|
|
—
|
|
77,421
|
|
—
|
Goodwill impairment
charge (3)
|
|
—
|
|
—
|
|
—
|
|
506,721
|
Restructuring costs
(4)
|
|
—
|
|
11,010
|
|
—
|
|
50,019
|
Realized currency and
other divestiture losses (5)
|
|
—
|
|
—
|
|
—
|
|
11,356
|
Gain on insurance
proceeds related to SPR fire (6)
|
|
(3,862)
|
|
—
|
|
(3,862)
|
|
(13,448)
|
Gain on equity
investments (7)
|
|
(10,229)
|
|
—
|
|
(10,229)
|
|
—
|
Inventory adjustment
(8)
|
|
—
|
|
40,000
|
|
—
|
|
40,000
|
Transaction and other
costs (9)
|
|
3,655
|
|
18,425
|
|
3,655
|
|
39,817
|
Total
adjustments
|
|
(10,436)
|
|
69,435
|
|
128,048
|
|
634,465
|
Tax impact of
adjustments
|
|
10,661
|
|
(20,089)
|
|
(29,828)
|
|
(32,822)
|
Adjusted net income
from continuing operations
|
|
$
256,224
|
|
$
220,978
|
|
$
997,010
|
|
$
765,038
|
The table below represent amounts per common share assuming
dilution:
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
(in thousands, except
per share data)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
GAAP net income from
continuing operations per common
share
|
|
$
1.79
|
|
$
1.18
|
|
$
6.23
|
|
$
1.13
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Loss on software
disposal (1)
|
|
—
|
|
—
|
|
0.42
|
|
—
|
Product liability
damages award (2)
|
|
—
|
|
—
|
|
0.54
|
|
—
|
Goodwill impairment
charge (3)
|
|
—
|
|
—
|
|
—
|
|
3.49
|
Restructuring costs
(4)
|
|
—
|
|
0.08
|
|
—
|
|
0.34
|
Realized currency and
other divestiture losses (5)
|
|
—
|
|
—
|
|
—
|
|
0.08
|
Gain on insurance
proceeds related to SPR fire (6)
|
|
(0.03)
|
|
—
|
|
(0.03)
|
|
(0.09)
|
Gain on equity
investments (7)
|
|
(0.07)
|
|
—
|
|
(0.07)
|
|
—
|
Inventory adjustment
(8)
|
|
—
|
|
0.28
|
|
—
|
|
0.28
|
Transaction and other
costs (9)
|
|
0.03
|
|
0.12
|
|
0.03
|
|
0.27
|
Total
adjustments
|
|
(0.07)
|
|
0.48
|
|
0.89
|
|
4.37
|
Tax impact of
adjustments
|
|
0.07
|
|
(0.14)
|
|
(0.21)
|
|
(0.23)
|
Adjusted diluted net
income from continuing operations
per common share
|
|
$
1.79
|
|
$
1.52
|
|
$
6.91
|
|
$
5.27
|
Weighted average
common shares outstanding -
assuming dilution
|
|
143,053
|
|
145,160
|
|
144,221
|
|
145,115
|
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 (loss).
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
(in
thousands)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Cost of goods
sold
|
|
$
—
|
|
$
40,000
|
|
$
—
|
|
$
53,495
|
Selling,
administrative and other expenses
|
|
3,655
|
|
1,881
|
|
142,139
|
|
10,094
|
Restructuring
costs
|
|
—
|
|
11,010
|
|
—
|
|
50,019
|
Goodwill impairment
charge
|
|
—
|
|
—
|
|
—
|
|
506,721
|
Non-operating
(income): Other
|
|
(14,091)
|
|
16,544
|
|
(14,091)
|
|
14,136
|
Total
adjustments
|
|
$
(10,436)
|
|
$
69,435
|
|
$
128,048
|
|
$
634,465
|
|
|
(1)
|
Adjustment reflects a
loss on an internally developed software project that was disposed
of due to a change in management strategy related to advances in
alternative technologies.
|
(2)
|
Adjustment reflects
damages reinstated by the Washington Supreme Court order on July 8,
2021 in connection with a 2017 automotive product liability
claim.
|
(3)
|
Adjustment reflects a
goodwill impairment charge related to the Company's European
reporting unit.
|
(4)
|
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.
|
(5)
|
Adjustment reflects
realized currency losses related to divestitures.
|
(6)
|
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.
|
(7)
|
Adjustment relates to
gains recognized upon remeasurement of certain equity investments
to fair value upon acquiring the remaining equity of those
entities.
|
(8)
|
Adjustment reflects
an increase to cost of goods sold due to the correction of an
immaterial error related to the accounting in prior years for
consideration received from vendors.
|
(9)
|
Adjustment for the
twelve months ended December 31, 2021 include transaction and other
costs related to acquisitions. For the twelve months ended December
31, 2020, adjustment includes a $17 million loss on
investment, $10 million of incremental costs associated with
COVID-19 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
December 31, 2021
|
|
|
Comparable
Sales
|
|
Acquisitions
|
|
Foreign
Currency
|
|
Other
|
|
GAAP Total Net
Sales
|
Automotive
|
|
10.6 %
|
|
2.8 %
|
|
(0.2) %
|
|
(0.1) %
|
|
13.1 %
|
Industrial
|
|
12.5 %
|
|
— %
|
|
0.3 %
|
|
— %
|
|
12.8 %
|
Total Net
Sales
|
|
11.3
%
|
|
1.9
%
|
|
(0.1)
%
|
|
(0.1)
%
|
|
13.0
%
|
|
|
|
Twelve Months Ended
December 31, 2021
|
|
|
Comparable
Sales
|
|
Acquisitions
|
|
Foreign
Currency
|
|
Other
|
|
GAAP Total Net
Sales
|
Automotive
|
|
11.0 %
|
|
2.0 %
|
|
3.0 %
|
|
(0.5) %
|
|
15.5 %
|
Industrial
|
|
9.7 %
|
|
0.4 %
|
|
1.3 %
|
|
— %
|
|
11.4 %
|
Total Net
Sales
|
|
10.5
%
|
|
1.5
%
|
|
2.4
%
|
|
(0.3)
%
|
|
14.1
%
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
RECONCILIATION OF
GAAP NET CASH PROVIDED BY OPERATING ACTIVITIES FROM CONTINUING
OPERATIONS TO FREE CASH FLOW
(UNAUDITED)
|
|
|
|
Twelve Months Ended
December 31,
|
(in
thousands)
|
|
2021
|
|
2020
|
Net cash provided by
operating activities from continuing operations
|
|
$
1,258,285
|
|
$
2,014,522
|
Purchases of
property, plant and equipment
|
|
(266,136)
|
|
(153,502)
|
Free Cash
Flow
|
|
$
992,149
|
|
$
1,861,020
|
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SOURCE Genuine Parts Company