Genuine Parts Company Reports First Quarter 2013 Results

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



RELATED LINKS
http://www.genpt.com

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