Genuine Parts Company Reports Sales And Earnings For The Third Quarter Ended September 30, 2016

Mittwoch, 19.10.2016 14:35 von

PR Newswire

ATLANTA, Oct. 19, 2016 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC) announced today sales and earnings for the third quarter and nine months ended September 30, 2016.

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Sales for the third quarter ended September 30, 2016 were $3.94 billion compared to $3.92 billion for the same period in 2015. Net income for the third quarter was $185.3 million compared to $188.0 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. 

Paul Donahue, President and Chief Executive Officer, commented, "Total sales in the third quarter were up 0.5% from the prior year, inclusive of a 3.5% contribution from acquisitions. Currency exchange was neutral to our overall results, with the slightly favorable Canadian and Australian currencies offsetting the ongoing weakness in the Mexican Peso. Sales for the Automotive Group were up 1.5%, consisting of a 2.5% contribution from acquisitions and a currency tailwind of 0.5%, offset by a 1.5% core sales decrease. Sales at Motion Industries, our Industrial Group, were down 0.7%, including a 2.5% underlying sales decrease and an approximate 2% benefit from acquisitions. Sales at EIS, our Electrical/Electronic Group, were down approximately 9%, and sales for S. P. Richards, our Office Products Group, were up 5%, consisting of an 11% contribution from acquisitions offset by a 6% underlying sales decrease."

Mr. Donahue stated, "Our third quarter results fell short of our expectations. We continue to operate in a tough sales environment, but our teams are working hard to overcome these challenges and generate growth. We recognize there is room for improvement and are working towards that in all aspects of our business. Our goal is to show improved results in the quarters ahead and better position the Company for sustainable growth well into the future. We have a strong balance sheet and excellent cash flows to support our efforts."

Sales for the nine months ended September 30, 2016 were $11.56 billion compared to $11.60 billion for the same period in 2015. Net income for the nine months was $534.7 million, down 2% from 2015, and earnings per share on a diluted basis were $3.56, equal to the same nine month period of the prior year.

2016 Outlook

For the full year 2016, the Company is updating its sales guidance to Flat to up 1% from up 1% to 2%. Diluted earnings per share is expected to be $4.55 to $4.60 as compared to prior guidance of $4.70 to $4.75 per share.

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 877-718-5098, conference ID 3577037. A replay will also be available on the Company's website or at 877-870-5176, conference ID 3577037, two hours after the completion of the call until 12:00 a.m. Eastern time on November 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, the Company's ability to successfully implement its business initiatives in each of its four business segments; slowing demand for the Company's products; changes in general economic conditions, including, unemployment, inflation or deflation; volatile exchange rates; high energy costs; uncertain credit markets and other macro-economic conditions; competitive product, service and pricing pressures; the ability to maintain favorable vendor arrangements and relationships; disruptions in our vendors' operations; the Company's ability to successfully integrate its acquired businesses; the uncertainties and costs of litigation; disruptions caused by a failure or breach of the Company's information systems, 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 Sept. 30,


Nine Months Ended Sept. 30,



2016


2015


2016


2015



(Unaudited)



(in thousands, except per share data)










Net sales


$3,941,743


$3,921,802


$11,559,648


$11,598,254

Cost of goods sold


2,743,142


2,752,577


8,091,124


8,137,880

Gross profit


1,198,601


1,169,225


3,468,524


3,460,374










Operating expenses:









Selling, administrative & other expenses


869,562


834,372


2,522,223


2,492,537

Depreciation and amortization


37,682


34,278


108,247


105,764



907,244


868,650


2,630,470


2,598,301










Income before income taxes


291,357


300,575


838,054


862,073

Income taxes


106,031


112,559


303,334


317,674










Net income


$   185,326


$   188,016


$    534,720


$    544,399










Basic net income per common share


$1.24


$1.24


$3.58


$3.58










Diluted net income per common share


$1.24


$1.24


$3.56


$3.56










Weighted average common shares outstanding


148,899


151,354


149,243


152,043










Dilutive effect of stock options and









   non-vested restricted stock awards


828


789


781


847










Weighted average common shares outstanding – assuming dilution


149,727


152,143


150,024


152,890

 

 

GENUINE PARTS COMPANY and SUBSIDIARIES

SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS










Three Months Ended Sept. 30,


Nine Months Ended Sept. 30,



2016


2015


2016


2015



(Unaudited)



(in thousands)










Net sales:









Automotive


$2,095,030


$2,064,099


$  6,115,186


$  6,065,733

Industrial


1,162,224


1,170,252


3,482,246


3,540,106

Office Products


535,175


510,825


1,493,434


1,478,878

Electrical/Electronic Materials


178,448


196,837


538,803


573,584

Other (1)


(29,134)


(20,211)


(70,021)


(60,047)

Total net sales


$3,941,743


$3,921,802


$11,559,648


$11,598,254










Operating profit:









Automotive


$   197,874


$   201,986


$     555,156


$     560,070

Industrial


85,608


90,081


255,704


266,726

Office Products


30,257


36,406


97,101


107,431

Electrical/Electronic Materials


14,277


19,988


45,105


54,019

Total operating profit


328,016


348,461


953,066


988,246

Interest expense, net


(5,244)


(5,055)


(14,731)


(16,056)

Intangible amortization


(10,339)


(8,545)


(28,324)


(25,945)

Other, net


(21,076)


(34,286)


(71,957)


(84,172)

Income before income taxes


$   291,357


$   300,575


$     838,054


$     862,073










Capital expenditures


$     36,939


$     24,531


$       86,650


$       61,994










Depreciation and amortization


$     37,682


$     34,278


$     108,247


$     105,764










(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





Sept. 30,


Sept. 30,



2016


2015



(Unaudited)



(in thousands)

ASSETS





CURRENT ASSETS





Cash and cash equivalents


$   225,177


$   199,294

Trade accounts receivable, net


2,032,548


1,963,158

Merchandise inventories, net


3,146,157


2,967,724

Prepaid expenses and other current assets


504,600


493,306






TOTAL CURRENT ASSETS


5,908,482


5,623,482






Goodwill and other intangible assets, less accumulated amortization


 

1,550,435


 

1,328,431

Deferred tax assets


109,679


136,618

Other assets


491,925


486,136

Net property, plant and equipment


688,851


628,461






TOTAL ASSETS


$8,749,372


$8,203,128






LIABILITIES AND EQUITY





CURRENT LIABILITIES





Trade accounts payable


$3,099,438


$2,851,022

Current portion of debt


475,000


125,000

Income taxes payable


32,594


6,643

Dividends payable


97,955


92,905

Other current liabilities


696,544


688,498






TOTAL CURRENT LIABILITIES


4,401,531


3,764,068











Long-term debt


300,000


500,000

Pension and other post-retirement benefit liabilities


202,131


248,709

Deferred tax liabilities


51,472


62,419

Other long-term liabilities


458,944


456,908






Common stock


148,737


150,763

Retained earnings


4,038,985


3,922,609

Accumulated other comprehensive loss


(865,510)


(914,586)






TOTAL  PARENT EQUITY


3,322,212


3,158,786






Noncontrolling interests in subsidiaries


13,082


12,238






TOTAL  EQUITY


3,335,294


3,171,024






TOTAL LIABILITIES AND EQUITY


$8,749,372


$8,203,128

 

 

GENUINE PARTS COMPANY and SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS







Nine Months Ended Sept. 30,



2016


2015



(Unaudited)



(in thousands)






OPERATING ACTIVITIES:





Net income


$534,720


$544,399

Adjustments to reconcile net income to net cash provided by
operating activities:





Depreciation and amortization


108,247


105,764

Share-based compensation


15,362


13,582

Excess tax benefits from share-based compensation


(10,475)


(5,381)

Changes in operating assets and liabilities


93,498


237,623











NET CASH PROVIDED BY OPERATING ACTIVITIES


741,352


895,987






INVESTING ACTIVITIES:





Purchases of property, plant and equipment


(86,650)


(61,994)

Acquisitions and other investing activities


(365,545)


(115,414)






NET CASH USED IN INVESTING ACTIVITIES


(452,195)


(177,408)






FINANCING ACTIVITIES:





Proceeds from debt


3,020,000


2,537,224

Payments on debt


(2,870,000)


(2,680,191)

Share-based awards exercised, net of taxes paid


(11,942)


(6,030)

Excess tax benefits from share-based compensation


10,475


5,381

Dividends paid


(288,909)


(275,379)

Purchase of stock


(143,810)


(225,175)






NET CASH USED IN FINANCING ACTIVITIES


(284,186)


(644,170)






EFFECT OF EXCHANGE RATE CHANGES ON CASH


8,575


(12,845)






NET INCREASE IN CASH AND CASH EQUIVALENTS


13,546


61,564






CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD


211,631


137,730






CASH AND CASH EQUIVALENTS AT END OF PERIOD


$225,177


$199,294

 

 

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SOURCE Genuine Parts Company