Genuine Parts Company Reports Sales And Earnings For The First Quarter Ended March 31, 2014 - Sales Up 13% and EPS Up 10% -

ATLANTA, April 22, 2014 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC) reports sales and earnings for the first quarter ended March 31, 2014. 

Thomas C. Gallagher, Chairman and Chief Executive Officer, announced today that sales for the first quarter ended March 31, 2014, were $3.6 billion, up 13% compared to $3.2 billion in the first quarter of 2013.  Net income for the quarter was $157.5 million, up 9% from $144.4 million recorded in the same period of the previous year.  Earnings per share on a diluted basis were $1.02, up 10% compared to 93 cents for the first quarter last year.

Mr. Gallagher stated, "We are encouraged by our results in the first quarter and pleased to report a solid start to 2014.  Our total sales increase included a 10% contribution from acquisitions and 4% underlying sales growth offset by a 1% headwind from currency.  Automotive sales remained the strongest among our segments, up 23% and driven by a 17% contribution from the GPC Asia Pacific acquisition and underline growth of approximately 7%.  These strong results were offset by a negative translation effect of 1.6%.  Sales at Motion Industries, our Industrial Group, were up 4% and include 3% from acquisitions less a 1% translation effect.  Sales at EIS, our Electrical/Electronic Group, increased by 30% due primarily to acquisitions.  Sales for S. P. Richards, our Office Products Group, were down slightly in the quarter, although a small acquisition in the quarter positively impacted the results."

Mr. Gallagher concluded, "During the first quarter, we achieved our core objectives of growing sales and earnings, producing operating margin improvement, generating solid cash flows and maintaining a strong balance sheet. Looking ahead, we are well positioned to demonstrate continued progress in driving improved results and remain optimistic about our prospects for growth in each of our four businesses."

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 19450861.  A replay will also be available on the Company's website or at 855-859-2056, conference ID 19450861, two hours after the completion of the call until 12:00 a.m. EDT on May 7, 2014.

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 2013 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,


2014

2013


(Unaudited)


(in thousands, except per share data)




Net sales

$3,624,897

$3,198,802

Cost of goods sold

2,540,267

2,277,054

Gross profit

1,084,630

921,748




Operating expenses:



Selling, administrative & other expenses

803,802

673,612

Depreciation and amortization

36,856

25,999


840,658

699,611




Income before income taxes

243,972

222,137

Income taxes

86,488

77,748

Net income

$  157,484

$  144,389




Basic net income per common share

$1.02

$ .93

Diluted net income per common share

$1.02

$ .93




Weighted average common shares outstanding

153,729

154,891

Dilutive effect of stock options and non-vested restricted stock awards

1,067

1,040

Weighted average common shares outstanding – assuming dilution

154,796

155,931

 

 

 

GENUINE PARTS COMPANY and SUBSIDIARIES

SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS




Three Months Ended March 31,


2014

2013


(Unaudited)


(in thousands)




Net sales:



Automotive

$1,898,515

$1,544,537

Industrial

1,143,274

1,102,080

Office Products

418,098

420,128

Electrical/Electronic Materials

180,331

139,185

Other (1)

(15,321)

(7,128)

            Total net sales

$3,624,897

$3,198,802




Operating profit:



Automotive

$   150,110

$   121,043

Industrial

83,050

78,895

Office Products

33,946

33,192

Electrical/Electronic Materials

15,529

10,451

Total operating profit

282,635

243,581

Interest expense, net

(6,206)

(3,353)

Intangible amortization

(8,876)

(3,775)

Other, net

(23,581)

(14,316)

            Income before income taxes

$   243,972

$   222,137




Capital expenditures

$     18,387

$     12,924




Depreciation and amortization

$     36,856

$     25,999






(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,


2014

2013


(Unaudited)


(in thousands)

ASSETS



CURRENT ASSETS



Cash and cash equivalents

$   103,472

$   841,894

Trade accounts receivable, net

1,828,309

1,624,954

Merchandise inventories, net

2,974,306

2,560,077

Prepaid expenses and other current assets

440,344

324,679




TOTAL CURRENT ASSETS

5,346,431

5,351,604




Goodwill and other intangible assets, less accumulated amortization

1,409,812

492,756

Deferred tax assets

92,539

273,488

Other assets

468,903

639,335

Net property, plant and equipment

664,689

581,279




TOTAL ASSETS

$7,982,374

$7,338,462


LIABILITIES AND EQUITY



CURRENT LIABILITIES



Trade accounts payable

$2,335,327

$1,800,726

Current portion of debt

399,756

664,742

Income taxes payable

76,682

68,375

Dividends payable

88,421

83,267

Other current liabilities

522,552

406,204




TOTAL CURRENT LIABILITIES

3,422,738

3,023,314




Long-term debt

500,000

250,000

Retirement and other post-retirement benefit liabilities

137,638

505,543

Deferred tax liabilities

87,726

Other long-term liabilities

423,063

485,162




Common stock

153,604

154,966

Retained earnings and other

3,641,920

3,407,317

Accumulated other comprehensive loss

(393,762)

(497,934)

TOTAL PARENT EQUITY

3,401,762

3,064,349




Noncontrolling interests in subsidiaries

9,447

10,094

TOTAL EQUITY

3,411,209

3,074,443




TOTAL LIABILITIES AND EQUITY

$7,982,374

$7,338,462

 

 

 

GENUINE PARTS COMPANY and SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS




Three Months

Ended March 31,


2014

2013


(Unaudited)


(in thousands)




OPERATING ACTIVITIES:



Net income

$157,484

$144,389

Adjustments to reconcile net income to net cash provided by operating activities:



Depreciation and amortization

36,856

25,999

Share-based compensation

3,073

2,477

Excess tax benefits from share-based compensation

(4,106)

(3,840)

Other

13

(67)

Changes in operating assets and liabilities

(133,541)

(52,580)




NET CASH PROVIDED BY OPERATING ACTIVITIES

59,779

116,378




INVESTING ACTIVITIES:



Purchases of property, plant and equipment

(18,387)

(12,924)

Acquisitions and other investing activities

(156,853)

(6,745)




NET CASH USED IN INVESTING ACTIVITIES

(175,240)

(19,669)




FINANCING ACTIVITIES:



Proceeds from debt

740,012

439,742

Payments on debt

(610,604)

(25,000)

Share-based awards exercised, net of taxes paid

(4,736)

(4,425)

Excess tax benefits from share-based compensation

4,106

3,840

Dividends paid

(82,750)

(76,641)

Purchase of stock

(22,709)

(110)




NET CASH PROVIDED BY FINANCING ACTIVITIES

23,319

337,406




EFFECT OF EXCHANGE RATE CHANGES ON CASH

(1,279)

4,684




NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

(93,421)

438,799




CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

196,893

403,095




CASH AND CASH EQUIVALENTS AT END OF PERIOD

$103,472

$841,894

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SOURCE Genuine Parts Company



RELATED LINKS
http://www.genpt.com

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