ATLANTA, April 21, 2015 /PRNewswire/ -- Genuine Parts
Company (NYSE: GPC) announced today first quarter sales and
earnings for the quarter ended March 31,
2015.
Sales for the first quarter ended March
31, 2015, increased 3% to $3.7
billion compared to sales of $3.6
billion for the same period in 2014. Net income for
the first quarter was $161.0 million,
up 2% from $157.5 million recorded
for the same period in the previous year. Earnings per share on a
diluted basis were $1.05, up 3%
compared to $1.02 for the first
quarter last year.
Tom Gallagher, Chairman and Chief
Executive Officer, commented, "We are pleased to report a solid
start to 2015 and, although our sales and earnings growth rates
moderated from the results reported in recent quarters, we
performed in line with our expectations. Our total sales
increase of 3% included approximately 4% underlying sales growth
and a 1.5% contribution from acquisitions, offset by a currency
headwind of approximately 2%. Sales for the Automotive Group
were flat with the prior year and consisted of core automotive
growth of approximately 3% and a slight benefit from acquisitions,
less the negative impact of currency of approximately 4%.
Sales at Motion Industries, our Industrial Group, were up
approximately 3%, including 3% underlying growth and 1% from
acquisitions, offset by a currency headwind of approximately
1%. Sales at EIS, our Electrical/Electronic Group, increased
by 1% and included approximately 6% growth from acquisitions, net
of a 4% decrease in core sales and a 1% negative impact of copper
pricing. Sales for S. P.
Richards, our Office Products Group, were up approximately
17%, consisting of 11% underlying growth and 6% from
acquisitions."
Mr. Gallagher concluded, "Our sales and earnings growth in the
quarter was supported by solid cash flows and a strong balance
sheet. As we move forward in the year, we are well positioned
for further progress across our operations and remain optimistic
that 2015 will be another successful year for the
Company."
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 "Investors", or by dialing 844-857-1770, conference ID
10259415. A replay will also be available on the Company's
website or at 855-859-2056, conference ID 10259415, two hours after
the completion of the call until 12:00 a.m.
Eastern time on May 5,
2015.
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 2014 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 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,
|
|
2015
|
2014
|
|
(Unaudited)
|
|
(in thousands, except
per share data)
|
|
|
|
Net sales
|
$3,736,051
|
$3,624,897
|
Cost of goods
sold
|
2,623,232
|
2,540,267
|
Gross
profit
|
1,112,819
|
1,084,630
|
|
|
|
Operating
expenses:
|
|
|
Selling,
administrative & other expenses
|
825,554
|
803,802
|
Depreciation and
amortization
|
35,884
|
36,856
|
|
861,438
|
840,658
|
|
|
|
Income before income
taxes
|
251,381
|
243,972
|
Income
taxes
|
90,371
|
86,488
|
|
|
|
Net income
|
$
161,010
|
$
157,484
|
|
|
|
Basic net income per
common share
|
$1.05
|
$1.02
|
|
|
|
Diluted net income
per common share
|
$1.05
|
$1.02
|
|
|
|
Weighted average
common shares outstanding
|
152,656
|
153,729
|
|
|
|
Dilutive effect of
stock options and
|
|
|
non-vested restricted stock awards
|
918
|
1,067
|
|
|
|
Weighted average
common shares outstanding – assuming dilution
|
153,574
|
154,796
|
|
|
|
GENUINE PARTS
COMPANY and SUBSIDIARIES
|
SEGMENT
INFORMATION AND FINANCIAL HIGHLIGHTS
|
|
|
|
Three Months Ended
March 31,
|
|
2015
|
2014
|
|
(Unaudited)
|
|
(in
thousands)
|
|
|
|
Net sales:
|
|
|
Automotive
|
$1,898,508
|
$1,898,515
|
Industrial
|
1,181,823
|
1,143,274
|
Office
Products
|
490,298
|
418,098
|
Electrical/Electronic
Materials
|
182,046
|
180,331
|
Other (1)
|
(16,624)
|
(15,321)
|
Total net
sales
|
$3,736,051
|
$3,624,897
|
|
|
|
Operating
profit:
|
|
|
Automotive
|
$ 150,641
|
$ 150,110
|
Industrial
|
87,769
|
83,050
|
Office
Products
|
36,524
|
33,946
|
Electrical/Electronic
Materials
|
15,463
|
15,529
|
Total operating
profit
|
290,397
|
282,635
|
Interest expense,
net
|
(5,327)
|
(6,206)
|
Intangible
amortization
|
(8,604)
|
(8,876)
|
Other, net
|
(25,085)
|
(23,581)
|
Income before income
taxes
|
$
251,381
|
$
243,972
|
|
|
|
Capital
expenditures
|
$
16,427
|
$
18,387
|
|
|
|
Depreciation and
amortization
|
$
35,884
|
$
36,856
|
|
|
|
|
|
|
(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,
|
|
2015
|
2014
|
|
(Unaudited)
|
|
(in
thousands)
|
ASSETS
|
|
|
CURRENT
ASSETS
|
|
|
Cash and cash
equivalents
|
$ 166,495
|
$ 103,472
|
Trade accounts
receivable, net
|
1,978,233
|
1,828,309
|
Merchandise
inventories, net
|
3,007,295
|
2,974,306
|
Prepaid expenses and
other current assets
|
482,676
|
440,344
|
|
|
|
TOTAL CURRENT
ASSETS
|
5,634,699
|
5,346,431
|
|
|
|
Goodwill and other
intangible assets, less accumulated amortization
|
1,346,336
|
1,409,812
|
Deferred tax
assets
|
144,112
|
92,539
|
Other
assets
|
467,092
|
468,903
|
Net property, plant
and equipment
|
646,116
|
664,689
|
|
|
|
TOTAL
ASSETS
|
$8,238,355
|
$7,982,374
|
|
LIABILITIES AND
EQUITY
|
|
|
CURRENT
LIABILITIES
|
|
|
Trade accounts
payable
|
$2,608,491
|
$2,335,327
|
Current portion of
debt
|
393,697
|
399,756
|
Income taxes
payable
|
26,479
|
76,682
|
Dividends
payable
|
93,844
|
88,421
|
Other accrued
expenses
|
636,850
|
522,552
|
|
|
|
TOTAL CURRENT
LIABILITIES
|
3,759,361
|
3,422,738
|
|
|
|
|
|
|
Long-term
debt
|
500,000
|
500,000
|
Pension and other
post-retirement benefit liabilities
|
275,470
|
137,638
|
Deferred tax
liabilities
|
67,672
|
87,726
|
Other long-term
liabilities
|
444,810
|
423,063
|
|
|
|
Common
stock
|
152,325
|
153,604
|
Retained
earnings
|
3,855,295
|
3,641,920
|
Accumulated other
comprehensive loss
|
(827,682)
|
(393,762)
|
|
|
|
TOTAL PARENT
EQUITY
|
3,179,938
|
3,401,762
|
|
|
|
Noncontrolling
interests in subsidiaries
|
11,104
|
9,447
|
|
|
|
TOTAL
EQUITY
|
3,191,042
|
3,411,209
|
|
|
|
TOTAL LIABILITIES AND
EQUITY
|
$8,238,355
|
$7,982,374
|
|
|
|
|
|
|
|
GENUINE PARTS
COMPANY and SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
Three Months Ended
March 31,
|
|
2015
|
2014
|
|
(Unaudited)
|
|
(in
thousands)
|
OPERATING
ACTIVITIES:
|
|
|
Net income
|
$161,010
|
$157,484
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
Depreciation and
amortization
|
35,884
|
36,856
|
Share-based
compensation
|
3,316
|
3,073
|
Excess tax benefits
from share-based compensation
|
(3,734)
|
(4,106)
|
Changes in operating
assets and liabilities
|
(73,964)
|
(133,528)
|
|
|
|
NET CASH PROVIDED BY
OPERATING ACTIVITIES
|
122,512
|
59,779
|
|
|
|
INVESTING
ACTIVITIES:
|
|
|
Purchases of property,
plant and equipment
|
(16,427)
|
(18,387)
|
Acquisitions and other
investing activities
|
(30,129)
|
(156,853)
|
|
|
|
NET CASH USED IN
INVESTING ACTIVITIES
|
(46,556)
|
(175,240)
|
|
|
|
FINANCING
ACTIVITIES:
|
|
|
Proceeds from
debt
|
779,910
|
740,012
|
Payments on
debt
|
(650,000)
|
(610,604)
|
Share-based awards
exercised, net of taxes paid
|
(3,804)
|
(4,736)
|
Excess tax benefits
from share-based compensation
|
3,734
|
4,106
|
Dividends
paid
|
(88,039)
|
(82,750)
|
Purchase of
stock
|
(84,252)
|
(22,709)
|
|
|
|
NET CASH (USED IN)
PROVIDED BY FINANCING ACTIVITIES
|
(42,451)
|
23,319
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH
|
(4,740)
|
(1,279)
|
|
|
|
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
28,765
|
(93,421)
|
|
|
|
CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD
|
137,730
|
196,893
|
|
|
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
$166,495
|
$103,472
|
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SOURCE Genuine Parts Company