First Quarter 2012

Genuine Parts Company Reports First Quarter 2012 Results

PR Newswire
ATLANTA
Apr 19, 2012
5:06am

ATLANTA, April 19, 2012 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC) reports sales and earnings for the first quarter ended March 31, 2012. 

(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, 2012, were $3.2 billion, up 7% compared to the first quarter of 2011. Net income for the quarter was $146.3 million, an increase of 16% over $126.5 million recorded in the same period of the previous year. Earnings per share on a diluted basis were 93 cents, also up 16% compared to 80 cents for the first quarter last year.

Mr. Gallagher stated, "We are pleased to report another period of solid sales and earnings growth for the Company.  In the first quarter, the Automotive Group posted a 6% sales increase.  This Group has experienced steady and consistent sales growth dating back to the fourth quarter of 2009, reflecting the positive impact of our sales initiatives and the sound fundamentals in the automotive aftermarket, which continue to support a healthy marketplace.  Sales for Motion Industries, our Industrial Group, remain the strongest among our four business segments, growing by 12% in the quarter.  EIS, our Electrical Group, posted a 5% sales increase.  Both Motion Industries and EIS have generated very strong sales growth over the last two years, driven by their internal initiatives and the recovery of the manufacturing sector of the economy.  We remain encouraged by the continued strength we see in the industrial markets.  S. P. Richards, our Office Products Group, showed a 1.5% sales decrease for the quarter, reflecting the difficult environment for the office products industry.  Under the current conditions, we are relying on our internal sales initiatives for additional progress in this segment."

Mr. Gallagher concluded, "Our balance sheet is in excellent condition and we continue to generate strong cash flows, which offer us tremendous opportunities for growth.  As we turn to the second quarter, we are optimistic that our businesses will show continued progress over the balance of the year."

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 67410952.  A replay will also be available on the Company's website or at 855-859-2056, conference ID 67410952, two hours after the completion of the call until 12:00 a.m. EDT on May 3, 2012.

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 uncertainties and costs of litigation, as well as other risks and uncertainties discussed in the Company's Annual Report on Form 10-K for 2011 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, Form 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 and Mexico. 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,


2012

2011


(Unaudited)


(in thousands, except per share data)




Net sales

$3,181,288

$2,974,198

Cost of goods sold

2,262,177

2,125,404

Gross profit

919,111

848,794




Operating expenses:



Selling, administrative & other expenses

667,958

634,269

Depreciation and amortization

22,985

22,545


690,943

656,814




Income before income taxes

228,168

191,980

Income taxes

81,913

65,465

Net income

$  146,255

$  126,515




Basic net income per common share

$ .94

$ .80

Diluted net income per common share

$ .93

$ .80




Weighted average common shares outstanding

155,810

157,633

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

1,139

1,023

Weighted average common shares outstanding – assuming dilution

156,949

158,656

 

GENUINE PARTS COMPANY and SUBSIDIARIES
SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS

 


Three Months Ended March 31,


2012

2011


(Unaudited)


(in thousands)




Net sales:



      Automotive

$1,493,499

$1,404,865

      Industrial

1,121,223

999,771

      Office Products

426,153

432,666

      Electrical/Electronic Materials

147,116

139,814

      Other (1)

(6,703)

(2,918)

            Total net sales

$3,181,288

$2,974,198




Operating profit:



      Automotive

$   114,561

$    97,899

                  Industrial

84,328

66,009

      Office Products

37,515

37,404

      Electrical/Electronic Materials

11,966

10,070

      Total operating profit

248,370

211,382

      Interest expense, net

(4,715)

(6,500)

      Other, net

(15,487)

(12,902)

            Income before income taxes

$   228,168

$  191,980




Capital expenditures

$     16,889

$    14,534




Depreciation and amortization

$     22,985

$    22,545




(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,


2012

2011


(Unaudited)


(in thousands)

ASSETS



CURRENT ASSETS



Cash and cash equivalents

$   424,424

$   465,882

Trade accounts receivable, net

1,605,469

1,490,744

Merchandise inventories, net

2,264,398

2,236,758

Prepaid expenses and other current assets

307,255

301,845




      TOTAL CURRENT ASSETS

4,601,546

4,495,229




Goodwill and other intangible assets, less accumulated amortization

292,893

229,276

Deferred tax asset

246,590

155,543

Other assets

453,955

209,656

Net property, plant and equipment

500,845

479,816




TOTAL ASSETS

$6,095,829

$5,569,520


LIABILITIES AND EQUITY



CURRENT LIABILITIES



Trade accounts payable

$1,559,874

$1,369,542

Current portion of debt

-

250,000

Income taxes payable

86,266

74,661

Dividends payable

77,168

70,950

Other current liabilities

208,061

238,483




      TOTAL CURRENT LIABILITIES

1,931,369

2,003,636




Long-term debt

500,000

250,000

Retirement and other post-retirement benefit liabilities

487,932

252,432

Other long-term liabilities

282,534

184,584




Common stock

155,910

157,543

Retained earnings and other

3,182,118

2,982,748

Accumulated other comprehensive loss

(453,519)

(270,029)

      TOTAL PARENT EQUITY

2,884,509

2,870,262




Noncontrolling interests in subsidiaries

9,485

8,606

      TOTAL EQUITY

2,893,994

2,878,868




TOTAL LIABILITIES AND EQUITY

$6,095,829

$5,569,520

 

GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS




Three Months

Ended March 31,


2012

2011


(Unaudited)


(in thousands)




OPERATING ACTIVITIES:



      Net income

$146,255

$126,515

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



      Depreciation and amortization

22,985

22,545

      Share-based compensation

1,749

512

      Excess tax benefits from share-based compensation

(5,335)

(529)

      Other

(50)

85

      Changes in operating assets and liabilities

6,693

(95,717)




NET CASH PROVIDED BY OPERATING ACTIVITIES

172,297

53,411




INVESTING ACTIVITIES:



      Purchases of property, plant and equipment

(16,889)

(14,534)

      Acquisitions and other

(188,918)

(33,903)




NET CASH USED IN INVESTING ACTIVITIES

(205,807)

(48,437)




FINANCING ACTIVITIES:



      Stock options exercised

(3,122)

609

      Excess tax benefits from share-based compensation

5,335

529

      Dividends paid

(70,019)

(64,600)

      Purchase of stock

(296)

(9,095)




NET CASH USED IN FINANCING ACTIVITIES

(68,102)

(72,557)




EFFECT OF EXCHANGE RATE CHANGES ON CASH

982

3,497




NET DECREASE IN CASH AND CASH EQUIVALENTS

(100,630)

(64,086)




CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

525,054

529,968




CASH AND CASH EQUIVALENTS AT END OF PERIOD

$424,424

$465,882

SOURCE Genuine Parts Company


print email
HOME | ABOUT US | COMPANIES | INVESTOR SERVICES | CAREERS | CONTACT