GENUINE PARTS ATLANTA, April 19, 2016 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC) announced today first quarter sales and earnings for the quarter ended March 31, 2016.
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Sales for the first quarter ended March 31, 2016 were $3.72 billion, compared to sales of $3.74 billion for the same period in 2015. Net income for the first quarter was $158.0 million compared to $161.0 million recorded for the same period in the previous year. Earnings per share on a diluted basis were $1.05, equal to the earnings per share for the first quarter last year. Currency negatively impacted total revenue growth by approximately 1.5% and earnings per share by an approximate $0.01 in the first quarter.
Tom Gallagher, Chairman and Chief Executive Officer, commented, "We are pleased to report that our first quarter performance was in-line with our expectations. Our growth initiatives for the automotive business along with consistently strong industry fundamentals continue to drive our positive automotive performance. Our non-automotive businesses continue to operate in a difficult economic environment."
Total sales in the first quarter were down 0.5% from the prior year, inclusive of the 1.5% currency headwind, which was partially offset by acquisitions. Sales for the Automotive Group were up 2%, consisting of an approximate 3.5% core sales increase, a 1% benefit from acquisitions, and a reduction of 2.5% from currency translation. Sales at Motion Industries, our Industrial Group, were down 2.5%, including a 3% underlying sales decrease and a 1% currency headwind, offset by a 1.5% contribution from acquisitions. Sales at EIS, our Electrical/Electronic Group, and S. P. Richards, our Office Products Group, were each down approximately 3%.
Mr. Gallagher concluded, "Despite the fragile industrial economic conditions which continue to pressure our near term growth outlook, our teams remain focused on key sales and cost initiatives necessary to drive long term growth for the Company. We will continue to support our sales and earnings growth with a strong balance sheet, solid cash flows and effective capital allocation intended to maximize shareholder value."
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 800-263-8506, conference ID 4915825. A replay will also be available on the Company's website or at 877-870-5176, conference ID 4915825, two hours after the completion of the call until 12:00 a.m. Eastern time on May 3, 2016.
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 2015 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,
2016 2015
---- ----
(Unaudited)
(in thousands, except per
share data)
Net sales $3,718,267 $3,736,051
Cost of goods sold 2,613,796 2,623,232
--------- ---------
Gross profit 1,104,471 1,112,819
Operating expenses:
Selling, administrative & other
expenses 823,172 825,554
Depreciation and amortization 34,654 35,884
------ ------
857,826 861,438
Income before income taxes 246,645 251,381
Income taxes 88,620 90,371
------ ------
Net income $158,025 $161,010
======== ========
Basic net income per common share $1.06 $1.05
Diluted net income per common
share $1.05 $1.05
Weighted average common shares
outstanding 149,593 152,656
Dilutive effect of stock options and
non-vested restricted stock
awards 749 918
--- ---
Weighted average common shares
outstanding - assuming dilution 150,342 153,574
======= =======
GENUINE PARTS COMPANY and SUBSIDIARIES
SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS
--------------------------------------------
Three Months Ended March 31,
2016 2015
---- ----
(Unaudited)
(in thousands)
Net sales:
Automotive $1,932,178 $1,898,508
Industrial 1,152,627 1,181,823
Office Products 476,654 490,298
Electrical/Electronic Materials 175,847 182,046
Other (1) (19,039) (16,624)
------- -------
Total net sales $3,718,267 $3,736,051
========== ==========
Operating profit:
Automotive $153,710 $150,641
Industrial 81,833 87,769
Office Products 34,204 36,524
Electrical/Electronic Materials 14,841 15,463
------ ------
Total operating profit 284,588 290,397
Interest expense, net (4,822) (5,327)
Intangible amortization (8,760) (8,604)
Other, net (24,361) (25,085)
------- -------
Income before income taxes $246,645 $251,381
======== ========
Capital expenditures $11,670 $16,427
======= =======
Depreciation and amortization $34,654 $35,884
======= =======
(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,
2016 2015
---- ----
(Unaudited)
(in thousands)
ASSETS
CURRENT ASSETS
Cash and
cash
equivalents $205,135 $166,495
Trade
accounts
receivable,
net 1,981,651 1,978,233
Merchandise
inventories,
net 3,074,641 3,007,295
Prepaid
expenses
and
other
current
assets 508,841 482,676
------- -------
TOTAL
CURRENT
ASSETS 5,770,268 5,634,699
Goodwill
and
other
intangible
assets,
less
accumulated
amortization 1,412,985 1,346,336
Deferred
tax
assets 114,917 144,112
Other
assets 504,153 467,092
Net
property,
plant
and
equipment 648,204 646,116
------- -------
TOTAL
ASSETS $8,450,527 $8,238,355
========== ==========
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade
accounts
payable $2,961,318 $2,608,491
Current
portion
of debt 450,000 393,697
Income
taxes
payable 46,137 26,479
Dividends
payable 98,339 93,844
Other
current
liabilities 656,132 636,850
------- -------
TOTAL
CURRENT
LIABILITIES 4,211,926 3,759,361
Long-
term
debt 250,000 500,000
Pension
and
other
post-
retirement
benefit
liabilities 231,652 275,470
Deferred
tax
liabilities 50,736 67,672
Other
long-
term
liabilities 462,501 444,810
Common
stock 149,623 152,325
Retained
earnings 3,944,626 3,855,295
Accumulated
other
comprehensive
loss (862,519) (827,682)
-------- --------
TOTAL
PARENT
EQUITY 3,231,730 3,179,938
Noncontrolling
interests
in
subsidiaries 11,982 11,104
------ ------
TOTAL
EQUITY 3,243,712 3,191,042
--------- ---------
TOTAL
LIABILITIES
AND
EQUITY $8,450,527 $8,238,355
========== ==========
GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
-----------------------------------------------
Three Months Ended March
31,
2016 2015
---- ----
(Unaudited)
(in thousands)
OPERATING ACTIVITIES:
Net income $158,025 $161,010
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization 34,654 35,884
Share-based compensation 4,249 3,316
Excess tax benefits from share-
based compensation (5,144) (3,734)
Changes in operating assets and
liabilities (56,739) (73,964)
------- -------
NET CASH PROVIDED BY OPERATING
ACTIVITIES 135,045 122,512
INVESTING ACTIVITIES:
Purchases of property, plant and
equipment (11,670) (16,427)
Acquisitions and other investing
activities (73,625) (30,129)
------- -------
NET CASH USED IN INVESTING
ACTIVITIES (85,295) (46,556)
FINANCING ACTIVITIES:
Proceeds from debt 975,000 779,910
Payments on debt (900,000) (650,000)
Share-based awards exercised, net
of taxes paid (5,586) (3,804)
Excess tax benefits from share-
based compensation 5,144 3,734
Dividends paid (92,596) (88,039)
Purchases of stock (46,431) (84,252)
------- -------
NET CASH USED IN FINANCING
ACTIVITIES (64,469) (42,451)
EFFECT OF EXCHANGE RATE CHANGES ON
CASH 8,223 (4,740)
----- ------
NET (DECREASE) INCREASE IN CASH AND
CASH EQUIVALENTS (6,496) 28,765
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 211,631 137,730
------- -------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD $205,135 $166,495
======== ========
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SOURCE Genuine Parts Company
