GENUINE PARTS ATLANTA, April 21, 2015 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC) announced today first quarter sales and earnings for the quarter ended March 31, 2015.
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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
