UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Date of Report (Date of Earliest Event Reported):
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July 20, 2015
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Genuine Parts Company
__________________________________________
(Exact name of registrant as specified in its charter)
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Georgia
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001-05690
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58-0254510
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_____________________
(State or other jurisdiction
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_____________
(Commission
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______________
(I.R.S. Employer
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of incorporation)
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File Number)
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Identification No.)
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2999 Circle 75 Pkwy, Atlanta, Georgia
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30339
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_________________________________
(Address of principal executive offices)
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___________
(Zip Code)
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Registrants telephone number, including area code:
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770.953.1700
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Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On July 20, 2015, Genuine Parts Company issued a press release announcing its results of operations for the second quarter and six months ended June 30, 2015. A copy of the press release is furnished with this Current Report on Form 8-K as exhibit 99.1.
The information, including the exhibits attached hereto contained in this Current Report on Form 8-K of Genuine Parts Company is being "furnished" and shall not be deemed "filed" for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 and Item 9.01 of this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or into any filing or other document pursuant to the Securities Exchange Act of 1934, as amended, except as otherwise expressly stated in any such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release dated July 20, 2015
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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Genuine Parts Company
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July 20, 2015
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By:
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Carol B. Yancey
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Name: Carol B. Yancey
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Title: Executive Vice President and CFO
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Exhibit Index
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Exhibit No.
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Description
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99.1
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Press Release dated July 20, 2015
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GENUINE PARTS COMPANY
NEWS RELEASE
FOR IMMEDIATE RELEASE
GENUINE PARTS COMPANY
REPORTS SALES AND EARNINGS
FOR THE SECOND QUARTER ENDED JUNE 30, 2015
- Company Reports Sales of $3.9 Billion and Earnings Per Share of $1.28 -
Atlanta, Georgia, July 20, 2015 Genuine Parts Company (NYSE: GPC) announced today sales and
earnings for the second quarter and six months ended June 30, 2015.
Sales for the second quarter ended June 30, 2015, increased 1% to $3.94 billion compared to sales
of $3.91 billion for the same period in 2014. Net income for the second quarter was $195.4 million
compared to $197.7 million recorded for the same period in the previous year. Earnings per share on
a diluted basis were $1.28, equal to the earnings per share for the second quarter last year.
Tom Gallagher, Chairman and Chief Executive Officer, commented, Our results reflect the moderation
in our sales and earnings growth rates in the second quarter, primarily due to the ongoing
choppiness in the economy. This is especially the case for our Industrial business. Overall, our
1% second quarter sales increase included underlying sales growth of 2.2% and a 1.3% contribution
from acquisitions, offset by an expected currency headwind of 2.7%. Sales for the Automotive Group
were essentially flat with the prior year and consisted of core automotive growth of approximately
4% offset by the impact of currency. Sales at Motion Industries, our Industrial Group, decreased
by approximately 2%, which basically represents the underlying growth for this business, as a 1%
contribution from acquisitions was offset by an equal currency headwind. Sales at EIS, our
Electrical/Electronic Group, increased by 3.5% and included approximately 6% growth from
acquisitions, net of a 2% decrease in core sales and a 0.5% negative impact of copper pricing.
Sales for S. P. Richards, our Office Products Group, were up 14%, consisting of 9% underlying
growth and approximately 5% from acquisitions.
Sales for the six months ended June 30, 2015 were $7.68 billion, up 2% compared to 2014. Net
income for the six months was $356.4 million, basically unchanged from 2014, and earnings per share
on a diluted basis were $2.33, up 1% compared to $2.30 in 2014.
Mr. Gallagher concluded, In the midst of the challenging sales environment, two important
highlights thus far in 2015 include the further strengthening of our balance sheet and improved
cash flows, which position us well for future growth. Our teams are very focused on driving
improved results over the balance of the year. We believe the initiatives we have put in place
should contribute to our growth in each of our four distribution businesses as we move ahead.
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 Companys
website, www.genpt.com, by clicking Investors, or by dialing 844-857-1770, conference ID
77046416. A replay will also be available on the Companys website or at 855-859-2056, conference
ID 77046416, two hours after the completion of the call until 12:00 a.m. Eastern time on August 4,
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 Companys 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 Companys ability to successfully implement its business initiatives in each of its
four business segments, the Companys ability to successfully integrate its acquired businesses,
the uncertainties and costs of litigation, as well as other risks and uncertainties discussed in
the Companys Annual Report on Form 10-K for 2014 and from time to time in the Companys 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.
Contacts
Carol B. Yancey, Executive Vice President and CFO (770) 612-2044
Sidney G. Jones, Vice President Investor Relations (770) 818-4628
1
GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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Three Months Ended June 30, |
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Six months Ended June 30, |
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2015 |
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2014 |
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2015 |
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2014 |
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(Unaudited) |
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(in thousands, except per share data) |
Net sales |
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$ |
3,940,401 |
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$ |
3,908,387 |
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$ |
7,676,452 |
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$ |
7,533,284 |
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Cost of goods sold |
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2,762,071 |
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2,729,219 |
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5,385,303 |
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5,269,486 |
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Gross profit |
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1,178,330 |
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1,179,168 |
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2,291,149 |
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2,263,798 |
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Operating expenses: |
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Selling, administrative & other expenses |
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832,610 |
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832,205 |
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1,658,164 |
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1,636,006 |
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Depreciation and amortization |
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35,603 |
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36,783 |
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71,487 |
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73,640 |
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868,213 |
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868,988 |
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1,729,651 |
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1,709,646 |
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Income before income taxes |
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310,117 |
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310,180 |
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561,498 |
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554,152 |
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Income taxes |
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114,744 |
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112,453 |
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205,115 |
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198,941 |
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Net income |
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$ |
195,373 |
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$ |
197,727 |
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$ |
356,383 |
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$ |
355,211 |
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Basic net income per common share |
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$ |
1.28 |
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$ |
1.29 |
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$ |
2.34 |
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$ |
2.31 |
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Diluted net income per common share |
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$ |
1.28 |
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$ |
1.28 |
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$ |
2.33 |
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$ |
2.30 |
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Weighted average common shares outstanding |
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152,134 |
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153,463 |
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152,394 |
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153,595 |
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Dilutive effect of stock options and |
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non-vested restricted stock awards |
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855 |
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1,069 |
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880 |
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1,063 |
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Weighted average common shares
outstanding assuming dilution |
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152,989 |
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154,532 |
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153,274 |
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154,658 |
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2
GENUINE PARTS COMPANY and SUBSIDIARIES
SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2015 |
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2014 |
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2015 |
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2014 |
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(Unaudited) |
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(in thousands) |
Net sales: |
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Automotive |
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$ |
2,103,126 |
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$ |
2,110,396 |
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$ |
4,001,634 |
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$ |
4,008,911 |
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Industrial |
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1,188,031 |
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1,209,235 |
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2,369,854 |
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2,352,509 |
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Office Products |
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477,755 |
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418,785 |
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968,053 |
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836,883 |
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Electrical/Electronic Materials |
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194,701 |
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188,034 |
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376,747 |
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368,365 |
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Other (1) |
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(23,212 |
) |
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(18,063 |
) |
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(39,836 |
) |
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(33,384 |
) |
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Total net sales |
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$ |
3,940,401 |
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$ |
3,908,387 |
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$ |
7,676,452 |
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$ |
7,533,284 |
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Operating profit: |
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Automotive |
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$ |
207,443 |
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$ |
206,683 |
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$ |
358,084 |
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$ |
356,793 |
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Industrial |
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88,876 |
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95,428 |
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176,645 |
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178,478 |
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Office Products |
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34,501 |
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31,183 |
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71,025 |
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65,129 |
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Electrical/Electronic Materials |
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18,568 |
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16,463 |
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34,031 |
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31,992 |
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Total operating profit |
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349,388 |
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349,757 |
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639,785 |
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632,392 |
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Interest expense, net |
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(5,674 |
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(6,224 |
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(11,001 |
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(12,430 |
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Intangible amortization |
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(8,796 |
) |
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(8,498 |
) |
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(17,400 |
) |
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(17,374 |
) |
Other, net |
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(24,801 |
) |
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(24,855 |
) |
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(49,886 |
) |
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(48,436 |
) |
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Income before income taxes |
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$ |
310,117 |
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$ |
310,180 |
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$ |
561,498 |
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$ |
554,152 |
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Capital expenditures |
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$ |
21,037 |
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$ |
21,536 |
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$ |
37,464 |
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$ |
39,923 |
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Depreciation and amortization |
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$ |
35,603 |
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$ |
36,783 |
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$ |
71,487 |
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$ |
73,640 |
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(1) Represents the net effect of discounts, incentives and freight billed reported as a component
of net sales.
3
GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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June 30, |
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June 30, |
|
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2015 |
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2014 |
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(Unaudited) |
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(in thousands) |
ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
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$ |
223,840 |
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$ |
152,863 |
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Trade accounts receivable, net |
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2,008,445 |
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1,909,268 |
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Merchandise inventories, net |
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3,025,165 |
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2,987,143 |
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Prepaid expenses and other current assets |
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506,070 |
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463,087 |
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TOTAL CURRENT ASSETS |
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5,763,520 |
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|
5,512,361 |
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Goodwill and other intangible assets, less
accumulated amortization |
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1,382,766 |
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1,432,862 |
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Deferred tax assets |
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139,928 |
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|
89,196 |
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Other assets |
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486,885 |
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|
555,825 |
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Net property, plant and equipment |
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|
640,534 |
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|
661,304 |
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|
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TOTAL ASSETS |
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$ |
8,413,633 |
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$ |
8,251,548 |
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LIABILITIES AND EQUITY |
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CURRENT LIABILITIES |
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Trade accounts payable |
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$ |
2,743,444 |
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$ |
2,489,570 |
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Current portion of debt |
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|
350,000 |
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|
306,358 |
|
Income taxes payable |
|
|
1,069 |
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|
|
22,639 |
|
Dividends payable |
|
|
93,496 |
|
|
|
88,211 |
|
Other accrued expenses |
|
|
679,613 |
|
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|
600,076 |
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|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES |
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|
3,867,622 |
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|
|
3,506,854 |
|
Long-term debt |
|
|
500,000 |
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|
|
500,000 |
|
Pension and other post-retirement benefit liabilities |
|
|
261,783 |
|
|
|
137,616 |
|
Deferred tax liabilities |
|
|
68,428 |
|
|
|
85,584 |
|
Other long-term liabilities |
|
|
460,302 |
|
|
|
484,000 |
|
Common stock |
|
|
151,709 |
|
|
|
153,306 |
|
Retained earnings |
|
|
3,901,607 |
|
|
|
3,725,279 |
|
Accumulated other comprehensive loss |
|
|
(809,501 |
) |
|
|
(351,415 |
) |
|
|
|
|
|
|
|
|
|
TOTAL PARENT EQUITY |
|
|
3,243,815 |
|
|
|
3,527,170 |
|
Noncontrolling interests in subsidiaries |
|
|
11,683 |
|
|
|
10,324 |
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY |
|
|
3,255,498 |
|
|
|
3,537,494 |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
8,413,633 |
|
|
$ |
8,251,548 |
|
|
|
|
|
|
|
|
|
|
4
GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
2015 |
|
2014 |
|
|
(Unaudited) |
|
|
(in thousands) |
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
356,383 |
|
|
$ |
355,211 |
|
Adjustments to reconcile net income to net cash
provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
71,487 |
|
|
|
73,640 |
|
Share-based compensation |
|
|
8,646 |
|
|
|
7,855 |
|
Excess tax benefits from share-based compensation |
|
|
(5,300 |
) |
|
|
(5,948 |
) |
Changes in operating assets and liabilities |
|
|
22,892 |
|
|
|
(63,656 |
) |
|
|
|
|
|
|
|
|
|
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
|
454,108 |
|
|
|
367,102 |
|
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
(37,464 |
) |
|
|
(39,923 |
) |
Acquisitions and other investing activities |
|
|
(80,140 |
) |
|
|
(178,889 |
) |
|
|
|
|
|
|
|
|
|
NET CASH USED IN INVESTING ACTIVITIES |
|
|
(117,604 |
) |
|
|
(218,812 |
) |
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from debt |
|
|
1,634,587 |
|
|
|
1,246,613 |
|
Payments on debt |
|
|
(1,552,554 |
) |
|
|
(1,214,169 |
) |
Share-based awards exercised, net of taxes paid |
|
|
(5,914 |
) |
|
|
(6,754 |
) |
Excess tax benefits from share-based compensation |
|
|
5,300 |
|
|
|
5,948 |
|
Dividends paid |
|
|
(181,883 |
) |
|
|
(171,171 |
) |
Purchase of stock |
|
|
(145,219 |
) |
|
|
(53,769 |
) |
|
|
|
|
|
|
|
|
|
NET CASH USED IN FINANCING ACTIVITIES |
|
|
(245,683 |
) |
|
|
(193,302 |
) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH |
|
|
(4,711 |
) |
|
|
982 |
|
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
|
86,110 |
|
|
|
(44,030 |
) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
|
|
137,730 |
|
|
|
196,893 |
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
$ |
223,840 |
|
|
$ |
152,863 |
|
|
|
|
|
|
|
|
|
|
5
Genuine Parts (NYSE:GPC)
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From Mar 2024 to Apr 2024
Genuine Parts (NYSE:GPC)
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From Apr 2023 to Apr 2024