First Quarter 2005

Genuine Parts Company Reports Record First Quarter Results

Apr 15, 2005
11:17am

Contact: Jerry W. Nix, Executive Vice President - Finance 
(770) 612-2048

Atlanta, Georgia, April 15, 2005 -- Genuine Parts Company (NYSE: GPC) reported record sales and earnings for the first quarter ended March 31, 2005. Thomas C. Gallagher, Chairman, President and Chief Executive Officer, announced today that sales totaling $2.3 billion were up 7% compared to the first quarter of 2004. Net income for the quarter was $106.6 million, an increase of 6% over $100.2 million recorded in the same period of the previous year. Earnings per share on a diluted basis were 61 cents, up 7% compared to 57 cents for the first quarter last year.

Mr. Gallagher commented: "We are pleased to report that we are off to a solid start to 2005. Motion Industries, our Industrial Group, reported the strongest results, ending the quarter with a 13% sales increase. The Automotive Group reported a 4% increase for the period and S. P. Richards, our Office Products Group, improved sales 6%. EIS, our Electrical/Electronics Group, was up 1% for the quarter. The EIS revenues were impacted by the sale of a division in the Electronic side of their business during the quarter."

Mr. Gallagher concluded: "Our balance sheet remains in excellent condition and the combination of working capital initiatives and solid earnings growth has enabled us to continue to generate strong cash flows. As we look forward, we continue to feel that market conditions are favorable for each of our businesses and we are positioned to have another good year in 2005." 

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 by dialing 877-422-4780, conference ID 5171608. A replay will also be available at 800-642-1687, conference ID 5171608, two hours after the completion of the conference call until 12:00 a.m. Eastern time on April 29, 2005.

Forward Looking Statements

Some statements in this release constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company cautions that its forward-looking statements involve risks and uncertainties. The Company undertakes no duty to update its forward-looking statements, which reflect the Company's beliefs, expectations, and plans as of the present. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors include, but are not limited to, changes in general economic conditions, the growth rate of the market for the Company's products and services, the ability to maintain favorable supplier arrangements and relationships, competitive product and pricing pressures, including internet-related initiatives, the effectiveness of the Company's promotional, marketing and advertising programs, changes in laws and regulations, including changes in accounting and taxation guidance, the uncertainties of litigation, as well as other risks and uncertainties discussed from time to time in the Company's filings with the Securities and Exchange Commission. 

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. and in Canada through its Motion Industries subsidiary. S. P. Richards Company, the Office Products Group, distributes product nationwide in the U.S. and in Canada. The Electrical/Electronic Group, EIS, Inc., distributes electrical and electronic components throughout the U.S. and Mexico. 
 


 

GENUINE PARTS COMPANY and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME

  Three Months Ended March 31,
  2005 2004
  (Unaudited)              
  (in thousands, except per share data)  
     
Net sales $2,342,201 $2,196,991
Cost of goods sold 1,605,721 1,510,080
  736,480 686,911
Selling, administrative & other expenses 564,270 524,514
Income before income taxes 172,210 162,397
Income taxes 65,612 62,198
Net income $106,598 $100,199
     
Basic net income per common share $.61 $.57
Diluted net income per common share $.61 $.57
     
Weighted average common shares outstanding 174,772 174,320
Dilutive effect of stock options and non-vested restricted stock awards 1,264 580
Weighted average common shares outstanding - assuming dilution 176,036 174,900
 
   
 
 
 

GENUINE PARTS COMPANY and SUBSIDIARIES
SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS

  Three Months Ended March 31,
  2005 2004
  (Unaudited)               
  (in thousands, except ratio analysis)       
Net Sales:    
   Automotive $1,168,955 $1,126,551
   Industrial 686,740 608,504
   Office Products 410,929 386,790
   Electrical/Electronic Materials 84,289 83,079
   Other (8,712) (7,933)
      Total net sales $2,342,201 $2,196,991
     
Operating profit:    
   Automotive $95,307 $93,261
   Industrial 48,253 46,119
   Office Products 46,027 43,754
   Electrical/Electronic Materials 3,309 3,220
      Total operating profit 192,896 186,354
   Interest expense (7,947) (9,977)
   Other, net (12,739) (13,980)
     
      Income before income taxes $172,210 $162,397
     
Capital expenditures $20,768 $12,057
     
Depreciation and amortization $17,071 $16,193
     
Current ratio 3.1/1 3.5/1
     
Total debt to total capitalization 16.3% 21.9%
     
   
 
 
 

GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS


 

  March 31,
2005
March 31,
2004
 
              (Unaudited)
              (in thousands)
ASSETS
CURRENT ASSETS
   

Cash and cash equivalents

$157,817 $28,088

Trade accounts receivable

1,195,034 1,135,227

Merchandise inventories

2,149,814 2,129,236

Prepaid expenses and other current assets

186,837 172,469
     

TOTAL CURRENT ASSETS

3,689,502 3,465,020

Goodwill and other intangible assets

57,583 57,939

Other assets

404,300 350,928

Total property, plant and equipment, net

379,587 337,960
     

TOTAL ASSETS

$4,530,972 $4,211,847


LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
   

Trade accounts payable

$878,640 $697,919

Current portion long-term debt and other borrowings

897 36,900

Income taxes payable

98,994 70,627

Dividends payable

54,630 52,336

Other current liabilities

147,165 131,716
     

TOTAL CURRENT LIABILITIES

1,180,326 989,498

Long-term debt

500,000 625,000

Other long-term liabilities

112,305 65,781

Deferred income taxes

116,689 114,409

Minority interests in subsidiaries

53,052 51,129
     

Common stock

174,450 174,442

Retained earnings and other

2,394,150 2,191,588
     

TOTAL SHAREHOLDERS' EQUITY

2,568,600 2,366,030
     

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$4,530,972 $4,211,847


Note: Certain balance sheet reclassifications have been made to prior year amounts to conform to current year presentation.
 
 
 

GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

              Three Months
            Ended March 31,
              (Unaudited)
              (in thousands)
  2005 2004
     
OPERATING ACTIVITIES:    
Net income $106,598 $100,199
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 17,071 16,193
Other 2,525 2,517
Changes in operating assets and liabilities (9,983) (37,782)
     
NET CASH PROVIDED BY OPERATING ACTIVITIES 116,211 81,127
     
INVESTING ACTIVITIES:    
Purchase of property, plant and equipment (20,768) (12,057)
Other 6,804 -0-
     
NET CASH USED IN INVESTING ACTIVITIES (13,964) (12,057)
     
FINANCING ACTIVITIES:    
Net payments on credit facilities (71) (15,733)

Stock options exercised

4,162 11,119
Dividends paid (52,495) (51,331)
Purchase of stock (30,966) (430)
     
NET CASH USED IN FINANCING ACTIVITIES (79,370) (56,375)
     
NET INCREASE IN CASH AND CASH EQUIVALENTS 22,877 12,695
     
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 134,940 15,393
     
CASH AND CASH EQUIVALENTS AT END OF PERIOD $157,817 $28,088

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