-----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, RhcXYYe0t33CLsy2jS/BnsiPHH6u5ErVwhx6K4I4J7jVf/b7eKN8e5jLiWTiIzW8 t24NEMElGRXpXNw61V88ag== /in/edgar/work/0000950144-00-012700/0000950144-00-012700.txt : 20001031 0000950144-00-012700.hdr.sgml : 20001031 ACCESSION NUMBER: 0000950144-00-012700 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000930 FILED AS OF DATE: 20001030 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENUINE PARTS CO CENTRAL INDEX KEY: 0000040987 STANDARD INDUSTRIAL CLASSIFICATION: [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: 748283 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 g64739e10-q.txt 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 September 30, 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). 173,076,735 ----------- (Shares of Common Stock) ================================================================================ 2 FORM 10-Q PART I - Financial Information Item 1 - Financial Statements GENUINE PARTS COMPANY and SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
Sept. 30, Dec. 31, 2000 1999 ------------ ------------ (Unaudited) (in thousands) ASSETS CURRENT ASSETS Cash and cash equivalents ...................................................... $ 40,928 $ 45,735 Trade accounts receivable, less allowance for doubtful accounts (2000 - $15,301; 1999 - $6,929) .......................... 1,087,834 1,006,663 Inventories - at lower of cost (substantially last-in, first-out method) or market .................................................... 1,758,566 1,771,789 Prepaid and other current accounts ............................................. 51,391 71,016 ------------ ------------ TOTAL CURRENT ASSETS .................................................. 2,938,719 2,895,203 Goodwill, less accumulated amortization (2000 - $35,528; 1999 - $25,286) ....... 430,277 440,299 Other assets ................................................................... 230,598 180,627 Total property, plant and equipment, less allowance for depreciation (2000 - $431,929; 1999 - $403,021) ............................ 404,518 413,543 ------------ ------------ $ 4,004,112 $ 3,929,672 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable ............................................................... $ 650,894 $ 581,010 Current portion of long-term debt and other borrowings ......................... 158,650 133,056 Income taxes ................................................................... 22,428 28,032 Dividends payable .............................................................. 47,823 45,355 Other current liabilities ...................................................... 99,839 128,559 ------------ ------------ TOTAL CURRENT LIABILITIES ............................................. 979,634 916,012 Long-term debt ................................................................. 676,438 702,417 Deferred income taxes .......................................................... 87,466 87,466 Minority interests in subsidiaries ............................................. 44,282 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 - 173,076,735; 1999 - 177,275,602 ......................... 173,077 177,276 Additional paid-in capital ..................................................... -0- -0- Accumulated other comprehensive income ......................................... (13,086) (6,857) Retained earnings .............................................................. 2,056,301 2,007,098 ------------ ------------ TOTAL SHAREHOLDERS' EQUITY ............................................ 2,216,292 2,177,517 ------------ ------------ $ 4,004,112 $ 3,929,672 ============ ============
See notes to condensed consolidated financial statements. 2 3 FORM 10-Q GENUINE PARTS COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended Sept. 30, Nine Months Ended Sept. 30, ---------------------------- --------------------------- 2000 1999 2000 1999 ---------- ---------- ---------- ---------- (000 omitted except per share data) Net sales ................................... $2,159,940 $2,082,229 $6,373,446 $6,006,480 Cost of goods sold .......................... 1,535,799 1,479,065 4,544,448 4,262,369 ---------- ---------- ---------- ---------- 624,141 603,164 1,828,998 1,744,111 Selling, administrative & other expenses .... 470,747 453,103 1,362,048 1,298,297 ---------- ---------- ---------- ---------- Income before income taxes .................. 153,394 150,061 466,950 445,814 Income taxes ................................ 61,665 59,424 186,899 176,542 ---------- ---------- ---------- ---------- NET INCOME .................................. $ 91,729 $ 90,637 $ 280,051 $ 269,272 ========== ========== ========== ========== Basic net income per common share ........... $ .53 $ .51 $ 1.59 $ 1.50 ========== ========== ========== ========== Diluted net income per common share ......... $ .53 $ .51 $ 1.59 $ 1.50 ========== ========== ========== ========== Dividends declared per common share ......... $ .275 $ .26 $ .825 $ .78 ========== ========== ========== ========== Average common shares outstanding ........... 174,192 178,546 175,763 179,143 Dilutive effect of stock options and non-vested restricted stock awards ....... 267 480 331 534 ---------- ---------- ---------- ---------- Average common shares outstanding, assuming dilution ........................ 174,459 179,026 176,094 179,677 ========== ========== ========== ==========
See notes to condensed consolidated financial statements. 3 4 FORM 10-Q GENUINE PARTS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended Sept. 30, --------------- (000 omitted) 2000 1999 ---------- ---------- OPERATING ACTIVITIES: Net income ............................................................................ $ 280,051 $ 269,272 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization ....................................................... 69,760 67,634 Other ............................................................................... 4,418 1,016 Changes in operating assets and liabilities ......................................... (11,113) (11,792) ---------- ---------- NET CASH PROVIDED BY OPERATING ACTIVITIES ................................................ 343,116 326,130 INVESTING ACTIVITIES: Purchase of property, plant and equipment ............................................. (52,043) (59,010) Acquisitions of businesses and other investing activities ............................. (43,468) (116,320) ---------- ---------- NET CASH USED IN INVESTING ACTIVITIES .................................................... (95,511) (175,330) FINANCING ACTIVITIES: Proceeds from credit facilities, net of payments ...................................... (4,757) 67,621 Dividends paid ........................................................................ (143,210) (138,125) Purchase of stock ..................................................................... (104,445) (88,773) ---------- ---------- NET CASH USED IN FINANCING ACTIVITIES .................................................... (252,412) (159,277) ---------- ---------- NET DECREASE IN CASH AND CASH EQUIVALENTS ................................................ (4,807) (8,477) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ......................................... 45,735 84,972 ---------- ---------- CASH AND CASH EQUIVALENTS AT END OF PERIOD ............................................... $ 40,928 $ 76,495 ========== ==========
See notes to condensed consolidated financial statements. 4 5 FORM 10-Q 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 nine months ended September 30, 2000, are not necessarily indicative of results for the entire year. Note B - Segment Information
Three month period ended Sept. 30, Nine month period ended Sept. 30, 2000 1999 2000 1999 ------------ ------------ ------------ ------------ Net sales: Automotive ............................. $ 1,078,221 $ 1,091,015 $ 3,169,367 $ 3,090,847 Industrial ............................. 594,589 541,622 1,779,353 1,607,917 Office Products ........................ 345,893 316,156 1,002,927 916,650 Electrical/Electronic Materials ........ 141,237 133,436 421,799 391,066 ------------ ------------ ------------ ------------ Total net sales .................... $ 2,159,940 $ 2,082,229 $ 6,373,446 $ 6,006,480 ============ ============ ============ ============ Operating profit: Automotive ............................. $ 104,611 $ 104,258 $ 300,593 $ 295,798 Industrial ............................. 41,105 38,929 138,947 126,581 Office Products ........................ 29,979 27,560 96,092 87,411 Electrical/Electronic Materials ........ 7,426 6,107 20,697 17,487 ------------ ------------ ------------ ------------ Total operating profit ............. 183,121 176,854 556,329 527,277 Interest expense ....................... (16,123) (13,683) (47,305) (39,501) Other, net ............................. (13,604) (13,110) (42,074) (41,962) ------------ ------------ ------------ ------------ Income before income taxes ......... $ 153,394 $ 150,061 $ 466,950 $ 445,814 ============ ============ ============ ============
Note C - Comprehensive Income Total comprehensive income was $273,822,000 and $275,872,000 for the nine month periods ended September 30, 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 third quarter of 2000. Sales for the quarter were $2.2 billion, up 4% over the same period in 1999. Net income in the quarter advanced 1% to $91.7 million. On a per-share diluted basis, net income in the quarter was $.53 versus $.51 in the same quarter of the prior year, an increase of 4%. For the nine months ended September 30, 2000, sales totaled $6.4 billion, up 6% over the first nine months of 1999, while net income was $280 million, an increase of 4%. Diluted earnings per share were $1.59 for the first nine months of 2000 and $1.50 for the same period in 1999, an increase of 6%. Sales for the Automotive Parts Group decreased 1% for the quarter. The sales decrease is reflective of the general softness in the automotive aftermarket. Sales for the Industrial Parts Group increased 10% for the quarter reflecting continued improvement in the overall industrial market and industrial production as well as geographical expansion. The Office Products Group was up 9% for the quarter reflecting steady sales progress in a competitive market due to increased product offerings 5 6 FORM 10-Q and enhanced marketing programs. The Electrical/Electronic Materials Group increased sales by 6%, reflecting increased market share and continued emphasis on sales growth. Cost of goods sold increased slightly as a percentage of net sales compared to the same quarter of the prior year. Selling, administrative and other expenses increased 4% for the quarter and 5% for the nine months, and the percentage of selling, administrative and other expenses to net sales decreased slightly for the nine months, reflecting improved operating efficiencies. The effective tax rate increased as a percentage of pre-tax profit in the quarter and nine months due to goodwill on acquisitions and foreign operations. The ratio of current assets to current liabilities remains very good at 3.0 to 1 and the Company's cash position is good. 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, electronic marketing, 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 September 30, 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 October 30, 2000 /s/ Jerry W. Nix ---------------- -------------------------------------------- Jerry W. Nix Executive Vice President - Finance (Principal Financial and Accounting Officer) 6 EX-27 2 g64739ex27.txt FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF GENUINE PARTS COMPANY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-31-2000 JAN-01-2000 SEP-30-2000 40,928 0 1,087,834 15,301 1,758,566 2,938,719 404,518 431,929 4,004,112 979,634 676,438 0 0 173,077 2,043,215 4,004,112 6,373,446 6,373,446 4,544,448 4,544,448 0 0 47,305 466,950 186,899 280,051 0 0 0 280,051 1.59 1.59
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