-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, C9H+gVyIuXvdsYCShZlsX2xA7zpoM4ICqPSRMpV6jEvyr4hG4+Q9YcWHQJWWBosV xkK6rBGi1bYKAsOOvwcdgQ== 0000950144-00-005589.txt : 20000501 0000950144-00-005589.hdr.sgml : 20000501 ACCESSION NUMBER: 0000950144-00-005589 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENUINE PARTS CO CENTRAL INDEX KEY: 0000040987 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-MOTOR VEHICLE SUPPLIES & NEW PARTS [5013] IRS NUMBER: 580254510 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-05690 FILM NUMBER: 611710 BUSINESS ADDRESS: STREET 1: 2999 CIRCLE 75 PARKWAY CITY: ATLANTA STATE: GA ZIP: 30339 BUSINESS PHONE: 4049531700 MAIL ADDRESS: STREET 1: 2999 CIRCLE 75 PARKWAY CITY: ATLANTA STATE: GA ZIP: 30339 10-Q 1 GENUINE PARTS COMPANY 1 ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------------------- FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2000 Commission File Number 1-5690 -------------- ------ GENUINE PARTS COMPANY ------------------------------------------------------ (Exact name of registrant as specified in its charter) GEORGIA 58-0254510 ------------------------------- ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 2999 CIRCLE 75 PARKWAY, ATLANTA, GEORGIA 30339 - ---------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (770) 953-1700 -------------- Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date (the close of the period covered by this report). 176,857,299 ------------------------ (Shares of Common Stock) ================================================================================ 2 PART 1 - Financial Information Item 1 - Financial Statements GENUINE PARTS COMPANY and SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS Mar. 31, Dec. 31, 2000 1999 ----------- ----------- (Unaudited) (in thousands) CURRENT ASSETS Cash and cash equivalents ................................................... $ 80,459 $ 45,735 Trade accounts receivable, less allowance for doubtful accounts (2000 - $9,546; 1999 - $6,929) ........................ 1,108,076 1,006,663 Inventories - at lower of cost (substantially last-in, first-out method) or market ................................................. 1,743,235 1,771,789 Prepaid and other current accounts .......................................... 55,532 71,016 ----------- ----------- TOTAL CURRENT ASSETS ............................................... 2,987,302 2,895,203 Goodwill, less accumulated amortization (2000 - $29,100; 1999 - $25,286) .... 436,957 440,299 Other assets ................................................................ 228,644 180,627 Total property, plant and equipment, less allowance for depreciation (2000 - $409,648; 1999 - $403,021) ......................... 411,092 413,543 ----------- ----------- $ 4,063,995 $ 3,929,672 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable ............................................................ $ 626,063 $ 581,010 Current portion long-term debt and other borrowings ......................... 168,345 133,056 Income taxes ................................................................ 54,039 28,032 Dividends payable ........................................................... 48,410 45,355 Other current liabilities ................................................... 92,722 128,559 ----------- ----------- TOTAL CURRENT LIABILITIES .......................................... 989,579 916,012 Long-term debt .............................................................. 723,995 702,417 Deferred income taxes ....................................................... 96,931 87,466 Minority interests in subsidiaries .......................................... 44,358 46,260 SHAREHOLDERS' EQUITY Stated capital: Preferred Stock, par value - $1 per share Authorized - 10,000,000 shares - None Issued ......................... -0- -0- Common Stock, par value - $1 per share Authorized - 450,000,000 shares Issued - 2000 - 176,857,299; 1999 - 177,275,602 ...................... 176,857 177,276 Additional paid-in capital .................................................. -0- Accumulated other comprehensive income ...................................... (10,386) (6,857) Retained earnings ........................................................... 2,042,661 2,007,098 ----------- ----------- TOTAL SHAREHOLDERS' EQUITY ......................................... 2,209,132 2,177,517 ----------- ----------- $ 4,063,995 $ 3,929,672 =========== ===========
See notes to condensed consolidated financial statements. 2 3 GENUINE PARTS COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended March 31, ------------------------------- 2000 1999 ---------- ---------- (000 omitted except per share data) Net sales ............................................................. $2,078,004 $1,901,357 Cost of goods sold .................................................... 1,490,050 1,350,467 ---------- ---------- 587,954 550,890 Selling, administrative & other expenses .............................. 435,225 408,396 ---------- ---------- Income before income taxes ............................................ 152,729 142,494 Income taxes .......................................................... 61,000 56,428 ---------- ---------- NET INCOME ............................................................ $ 91,729 $ 86,066 ========== ========== Basic net income per common share ..................................... $ .52 $ .48 ========== ========== Diluted net income per common share ................................... $ .52 $ .48 ========== ========== Dividends declared per common share ................................... $ .275 $ .26 ========== ========== Average common shares outstanding ..................................... 176,774 179,784 Dilutive effect of stock options and non-vested restricted stock awards 300 508 ---------- ---------- Average common shares outstanding - assuming dilution ................. 177,074 180,292 ========== ==========
3 4 GENUINE PARTS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended Mar. 31, --------------------------- (000 omitted) 2000 1999 -------- --------- OPERATING ACTIVITIES: Net income .............................................. $ 91,729 $ 86,066 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization ......................... 23,824 22,740 Other ................................................. 2,424 2,534 Changes in operating assets and liabilities ........... (22,923) (36,142) -------- --------- NET CASH PROVIDED BY OPERATING ACTIVITIES .................. 95,054 75,198 INVESTING ACTIVITIES: Purchase of property, plant and equipment ............... (19,897) (20,376) Acquisitions of businesses and other investing activities (29,484) (85,669) -------- --------- NET CASH USED IN INVESTING ACTIVITIES ...................... (49,381) (106,045) FINANCING ACTIVITIES: Proceeds from credit facilities, net of payments ........ 56,866 186,141 Dividends paid .......................................... (45,489) (44,776) Purchase of stock ....................................... (22,326) (46,693) -------- --------- NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES ........ (10,949) 94,672 -------- --------- NET INCREASE IN CASH AND CASH EQUIVALENTS .................. 34,724 63,825 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ........... 45,735 84,972 -------- --------- CASH AND CASH EQUIVALENTS AT END OF PERIOD ................. $ 80,459 $ 148,797 ======== =========
See notes to condensed consolidated financial statements. 4 5 NOTES TO FINANCIAL STATEMENTS Note A - Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with generally accepted accounting principles. However, in the opinion of management, all adjustments necessary to a fair statement of the operations of the interim period have been made. These adjustments are of a normal recurring nature. The results of operations for the three months ended March 31, 2000 are not necessarily indicative of results for the entire year. Note B - Segment Information
THREE MONTH PERIOD ENDED MARCH 31 2000 1999 --------------------------------- (In thousands) Net sales: Automotive $1,005,310 $941,350 Industrial 594,348 522,503 Office products 337,584 310,003 Electrical/electronic materials 140,762 127,501 --------------------------------- Total net sales $2,078,004 $1,901,357 ================================= Operating profit: Automotive $88,270 $83,593 Industrial 49,814 43,855 Office products 38,073 34,983 Electrical/electronic materials 6,333 5,640 --------------------------------- Total operating profit 182,490 168,071 Interest expense (15,160) (12,443) Other, net (14,601) (13,134) --------------------------------- Income before income taxes $152,729 $142,494 =================================
Note C - Comprehensive Income Total comprehensive income was $88,200,000 and $86,848,000 for the three month periods ended March 31, 2000 and 1999, respectively. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Genuine Parts Company (the "Company") reported record sales and earnings in the first quarter of 2000. Sales for the quarter were $2.1 billion, up 9% over the same period in 1999. Net income in the quarter advanced 7% to $91.7 million. On a per-share diluted basis, net income in the quarter was 52 cents versus 48 cents in the same quarter of the prior year, an increase of 8%. Sales for the Automotive Parts Group increased 7% for the quarter. The sales increase is attributed to unit share gain, improved market conditions and the impact of acquisitions. Sales for the Industrial Parts Group increased 14% for the quarter reflecting continued geographic expansion through acquisitions and opening new branches. The Office Products Group was up 9% for the quarter reflecting increased product offerings, new marketing programs and an expanded customer base. Sales for EIS, the Electrical/Electronic Materials Group, increased 10% for the quarter due to the impact of acquisitions and moderate improvement in the electronic industry. Cost of goods sold increased slightly as a percentage of net sales compared to the same quarter of the prior year as a result of the Company's recent acquisitions that have lower gross margins due to industry or geographic differences. Selling, administrative and other expenses increased 7% for the quarter and the percentage of selling, administrative and other expenses to net sales decreased slightly, reflecting increased focus on operating margin efficiencies. The ratio of current assets to current liabilities is 3.0 to 1 and the Company's cash position is good. 5 6 Forward-Looking Statements: The Private Securities Litigation Reform Act of 1995 (the Act) provides a safe harbor for forward-looking statements made by or on behalf of the Company. The Company and its representatives may from time to time make written or verbal forward-looking statements, including statements contained in our Company's filings with the Securities and Exchange Commission and in our reports to shareholders. All statements which address operating performance, events or developments that we expect or anticipate will occur in the future, including statements relating to revenue, market share and net income growth, or statements expressing general optimism about future operating results, are forward-looking statements within the meaning of the Act. The forward-looking statements are and will be based on management's then current views and assumptions regarding future events and operating performance. There are many factors which could cause actual results to differ materially from those anticipated by statements made herein. Such factors include, but are not limited to, changes in general economic conditions, the growth rate of the market for the Company's products and services, the ability to maintain favorable supplier arrangements and relationships, competitive product and pricing pressures, the effectiveness of the Company's promotional, marketing and advertising programs, changes in laws and regulations, including changes in accounting and taxation guidance, the uncertainties of litigation, as well as other risks and uncertainties discussed from time to time in the Company's filings with the Securities and Exchange Commission. PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) The following exhibits are filed as part of this report: Exhibit 3.1 Restated Articles of Incorporation of the Company (incorporated herein by reference from the Company's Annual Report on Form 10-K, dated March 3, 1995). Exhibit 3.2 Bylaws of the Company, as amended (incorporated herein by reference from the Company's Annual Report on Form 10-K, dated March 5, 1993). Exhibit 27 Financial Data Schedule (for SEC use only).
(b) No reports on Form 8-K were filed by the registrant during the quarter ended March 31, 2000. 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 thereunto duly authorized. Genuine Parts Company (Registrant) Date April 28, 2000 /s/ Jerry Nix -------------- ----------------------------------- Jerry W. Nix Executive Vice President - Finance (Principal Financial and Accounting Officer) 6 EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF GENUINE PARTS COMPANY FOR THE THREE MONTHS ENDED MARCH 31, 2000, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-2000 JAN-01-2000 MAR-31-2000 80,459 0 1,108,076 9,546 1,743,235 2,987,302 411,092 409,648 4,063,995 989,579 723,995 0 0 176,857 2,032,275 4,063,995 2,078,004 2,078,004 1,490,050 1,490,050 0 0 15,160 152,729 61,000 91,729 0 0 0 91,729 .52 .52
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