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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October 19, 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 October 19, 2015, Genuine Parts Company issued a press release announcing its results of operations for the third quarter and nine months ended September 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 October 19, 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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October 19, 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 October 19, 2015
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GENUINE PARTS COMPANY
NEWS RELEASE
FOR IMMEDIATE RELEASE
GENUINE PARTS COMPANY
REPORTS SALES AND EARNINGS
FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2015
- Company Reports Sales of $3.9 Billion and Earnings Per Share of $1.24 -
Atlanta, Georgia, October 19, 2015 Genuine Parts Company (NYSE: GPC) announced today sales and
earnings for the third quarter and nine months ended September 30, 2015.
Sales for the third quarter ended September 30, 2015 decreased 2% to $3.92 billion compared to
sales of $3.99 billion for the same period in 2014. Net income for the third quarter was $188.0
million compared to $190.5 million recorded for the same period in the previous year. Earnings per
share on a diluted basis were $1.24, equal to the earnings per share for the third quarter last
year. Currency negatively impacted revenue growth by approximately 4% and earnings per share by
$0.05 in the third quarter.
The Companys 2% third quarter sales decline included underlying sales growth of 1% and a 1%
contribution from acquisitions, offset by a currency headwind of approximately 4%. Sales for the
Automotive Group were down 2% reflecting core automotive growth of 4% offset by a 6% impact of
currency. Sales at Motion Industries, our Industrial Group, were down by approximately 4%, which
basically represents the underlying decrease 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 2% and included approximately 5% growth from acquisitions, offset by a 1.5%
decrease in core sales and a 1.5% negative impact of copper pricing. Sales for S. P. Richards, our
Office Products Group, were up 3%, which essentially reflects the underlying growth for this
business in the quarter.
Tom Gallagher, Chairman and Chief Executive Officer, commented, The strength in our underlying
Automotive distribution business, as well as positive sales growth in the Office and Electrical
distribution businesses, was offset by significant foreign currency headwinds and ongoing
challenging global economic conditions, particularly in our Industrial distribution business.
These factors pressured our overall sales and earnings growth as we moved through the third
quarter, although our focus on streamlining operations and controlling expenses drove positive
margin expansion.
Sales for the nine months ended September 30, 2015 were $11.60 billion, up 1% compared to 2014.
Net income for the nine months was $544.4 million, basically unchanged from 2014, and earnings per
share on a diluted basis were $3.56, up 1% compared to $3.53 in 2014. Currency negatively impacted
revenue growth by approximately 3% and earnings per share by $0.11 for the nine months.
Mr. Gallagher added, We enter the fourth quarter facing market conditions that have softened, most
prominently in our Industrial and Electrical businesses. Based on these uncertain conditions,
which are likely to persist through the balance of the year, we expect sales and earnings to be
further challenged as we work our way through the final quarter of 2015.
Mr. Gallagher concluded, We have initiatives in place in each of our businesses which are designed
to stimulate sales and earnings growth in the coming quarters. While these initiatives will take
time to fully materialize in our quarterly results, our teams are committed to generating growth
both organically and through selective accretive acquisitions that should enhance the long-term
growth profile of our four businesses in the coming years. Our strong cash flow generation, driven
by significant working capital improvement and our strong balance sheet provide us with the ability
to support these initiatives. Additionally, we expect to continue to maximize shareholder value
with our dividend and ongoing share repurchase program.
1
Conference Call
Genuine Parts Company will hold a conference call today at 11:00 a.m. Eastern time 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 46339913. A replay will also be available on the Companys website or at 855-859-2056,
conference ID 46339913, two hours after the completion of the call until 12:00 a.m. Eastern time on
November 3, 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
2
GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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Three Months Ended Sept. 30, |
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Nine Months Ended Sept. 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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$ |
3,921,802 |
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$ |
3,985,909 |
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$ |
11,598,254 |
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$ |
11,519,193 |
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Cost of goods sold |
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2,752,577 |
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2,802,487 |
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8,137,880 |
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8,071,973 |
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Gross profit |
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1,169,225 |
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1,183,422 |
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3,460,374 |
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3,447,220 |
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Operating expenses: |
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Selling, administrative & other expenses |
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834,372 |
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850,156 |
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2,492,537 |
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2,486,162 |
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Depreciation and amortization |
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34,278 |
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34,983 |
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105,764 |
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108,623 |
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868,650 |
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885,139 |
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2,598,301 |
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2,594,785 |
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Income before income taxes |
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300,575 |
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298,283 |
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862,073 |
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852,435 |
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Income taxes |
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112,559 |
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107,767 |
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317,674 |
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306,708 |
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Net income |
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$ |
188,016 |
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$ |
190,516 |
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$ |
544,399 |
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$ |
545,727 |
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Basic net income per common share |
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$ |
1.24 |
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$ |
1.25 |
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$ |
3.58 |
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$ |
3.56 |
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Diluted net income per common share |
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$ |
1.24 |
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$ |
1.24 |
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$ |
3.56 |
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$ |
3.53 |
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Weighted average common shares outstanding |
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151,354 |
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153,018 |
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152,043 |
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153,401 |
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Dilutive effect of stock options and |
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non-vested restricted stock awards |
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789 |
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1,080 |
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847 |
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1,062 |
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Weighted average common shares
outstanding assuming dilution |
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152,143 |
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154,098 |
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152,890 |
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154,463 |
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3
GENUINE PARTS COMPANY and SUBSIDIARIES
SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS
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Three Months Ended Sept. 30, |
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Nine Months Ended Sept. 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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$ |
2,064,099 |
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$ |
2,099,518 |
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$ |
6,065,733 |
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$ |
6,108,429 |
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Industrial |
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1,170,252 |
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1,220,539 |
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3,540,106 |
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3,573,048 |
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Office Products |
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510,825 |
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496,572 |
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1,478,878 |
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1,333,455 |
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Electrical/Electronic Materials |
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196,837 |
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193,321 |
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573,584 |
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561,686 |
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Other (1) |
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(20,211 |
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(24,041 |
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(60,047 |
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(57,425 |
) |
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Total net sales |
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$ |
3,921,802 |
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$ |
3,985,909 |
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$ |
11,598,254 |
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$ |
11,519,193 |
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Operating profit: |
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Automotive |
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$ |
201,986 |
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$ |
193,258 |
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$ |
560,070 |
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$ |
550,051 |
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Industrial |
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90,081 |
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95,262 |
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266,726 |
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273,740 |
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Office Products |
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36,406 |
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33,318 |
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107,431 |
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98,447 |
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Electrical/Electronic Materials |
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19,988 |
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17,766 |
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54,019 |
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49,758 |
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Total operating profit |
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348,461 |
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339,604 |
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988,246 |
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971,996 |
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Interest expense, net |
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(5,055 |
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(6,283 |
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(16,056 |
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(18,713 |
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Intangible amortization |
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(8,545 |
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(8,947 |
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(25,945 |
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(26,321 |
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Other, net |
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(34,286 |
) |
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(26,091 |
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(84,172 |
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(74,527 |
) |
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Income before income taxes |
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$ |
300,575 |
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$ |
298,283 |
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$ |
862,073 |
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$ |
852,435 |
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Capital expenditures |
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$ |
24,531 |
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$ |
33,862 |
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$ |
61,994 |
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$ |
73,785 |
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Depreciation and amortization |
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$ |
34,278 |
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$ |
34,983 |
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$ |
105,764 |
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$ |
108,623 |
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(1) Represents the net effect of discounts, incentives and freight billed reported as a component
of net sales.
4
GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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Sept. 30, |
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Sept. 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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$ |
199,294 |
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$ |
135,537 |
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Trade accounts receivable, net |
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1,963,158 |
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1,976,056 |
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Merchandise inventories, net |
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2,967,724 |
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3,014,102 |
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Prepaid expenses and other current assets |
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493,306 |
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459,682 |
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TOTAL CURRENT ASSETS |
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5,623,482 |
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5,585,377 |
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Goodwill and other intangible assets, less
accumulated amortization |
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1,328,431 |
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1,444,356 |
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Deferred tax assets |
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136,618 |
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|
90,539 |
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Other assets |
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486,136 |
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558,932 |
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Net property, plant and equipment |
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628,461 |
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662,253 |
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TOTAL ASSETS |
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$ |
8,203,128 |
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$ |
8,341,457 |
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LIABILITIES AND EQUITY |
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CURRENT LIABILITIES |
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Trade accounts payable |
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$ |
2,851,022 |
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$ |
2,549,193 |
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Current portion of debt |
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125,000 |
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|
335,394 |
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Income taxes payable |
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|
6,643 |
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|
24,481 |
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Dividends payable |
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|
92,905 |
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|
87,906 |
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Other current liabilities |
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|
688,498 |
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|
638,808 |
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|
|
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TOTAL CURRENT LIABILITIES |
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3,764,068 |
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|
3,635,782 |
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Long-term debt |
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|
500,000 |
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|
500,000 |
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Pension and other post-retirement benefit liabilities |
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|
248,709 |
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|
|
135,407 |
|
Deferred tax liabilities |
|
|
62,419 |
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|
|
79,690 |
|
Other long-term liabilities |
|
|
456,908 |
|
|
|
482,430 |
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Common stock |
|
|
150,763 |
|
|
|
152,857 |
|
Retained earnings |
|
|
3,922,609 |
|
|
|
3,791,172 |
|
Accumulated other comprehensive loss |
|
|
(914,586 |
) |
|
|
(446,854 |
) |
|
|
|
|
|
|
|
|
|
TOTAL PARENT EQUITY |
|
|
3,158,786 |
|
|
|
3,497,175 |
|
Noncontrolling interests in subsidiaries |
|
|
12,238 |
|
|
|
10,973 |
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY |
|
|
3,171,024 |
|
|
|
3,508,148 |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
8,203,128 |
|
|
$ |
8,341,457 |
|
|
|
|
|
|
|
|
|
|
5
GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended Sept. 30, |
|
|
2015 |
|
2014 |
|
|
(Unaudited) |
|
|
(in thousands) |
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
544,399 |
|
|
$ |
545,727 |
|
Adjustments to reconcile net income to net cash
provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
105,764 |
|
|
|
108,623 |
|
Share-based compensation |
|
|
13,582 |
|
|
|
12,641 |
|
Excess tax benefits from share-based compensation |
|
|
(5,381 |
) |
|
|
(7,269 |
) |
Changes in operating assets and liabilities |
|
|
237,623 |
|
|
|
(70,399 |
) |
|
|
|
|
|
|
|
|
|
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
|
895,987 |
|
|
|
589,323 |
|
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
(61,994 |
) |
|
|
(73,785 |
) |
Acquisitions and other investing activities |
|
|
(115,414 |
) |
|
|
(275,295 |
) |
|
|
|
|
|
|
|
|
|
NET CASH USED IN INVESTING ACTIVITIES |
|
|
(177,408 |
) |
|
|
(349,080 |
) |
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from debt |
|
|
2,537,224 |
|
|
|
2,032,550 |
|
Payments on debt |
|
|
(2,680,191 |
) |
|
|
(1,974,581 |
) |
Share-based awards exercised, net of taxes paid |
|
|
(6,030 |
) |
|
|
(8,266 |
) |
Excess tax benefits from share-based compensation |
|
|
5,381 |
|
|
|
7,269 |
|
Dividends paid |
|
|
(275,379 |
) |
|
|
(259,365 |
) |
Purchase of stock |
|
|
(225,175 |
) |
|
|
(95,546 |
) |
|
|
|
|
|
|
|
|
|
NET CASH USED IN FINANCING ACTIVITIES |
|
|
(644,170 |
) |
|
|
(297,939 |
) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH |
|
|
(12,845 |
) |
|
|
(3,660 |
) |
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
|
61,564 |
|
|
|
(61,356 |
) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
|
|
137,730 |
|
|
|
196,893 |
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
$ |
199,294 |
|
|
$ |
135,537 |
|
|
|
|
|
|
|
|
|
|
6
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