-----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, IC2q6dlvVaUPou3hbQRMbrU4bhfMqFh70Z0s7OweWq/P3rsZ+ux2YwLvpoEOIppD TuL+YfCf789KCM2SdKsfZA== 0000950144-03-005085.txt : 20030417 0000950144-03-005085.hdr.sgml : 20030417 20030417093028 ACCESSION NUMBER: 0000950144-03-005085 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030417 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030417 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: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05690 FILM NUMBER: 03653479 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 8-K 1 g82096e8vk.htm GENUINE PARTS COMPANY GENUINE PARTS COMPANY
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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 17, 2003

GENUINE PARTS COMPANY

(Exact Name of Registrant as Specified in Charter)
         
Georgia   001-05690   58-0254510
 
 
(State or Other   (Commission   (IRS Employer
Jurisdiction of   File Number)   Identification No.)
Incorporation)        

2999 Circle 75 Parkway, Atlanta, GA 30339

(Addresses of Principal Executive Offices, including Zip Code)

(770) 953-1700

(Registrant’s Telephone Number, including Area Code)

 

SIGNATURE
INDEX TO EXHIBITS
PRESS RELEASE DATED 4/17/03

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Item 9. Regulation FD Disclosure

     On April 17, 2003, Genuine Parts Company (the “Company”) issued a press release setting forth the Company’s 1st quarter 2003 earnings. A copy of the Company’s press release is attached as Exhibit 99.1 to this Form 8-K and is hereby incorporated by reference.

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SIGNATURE

     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 hereunto duly authorized.

         
    GENUINE PARTS COMPANY
 
         
 
    By:   /s/ Jerry W. Nix
Name: Jerry W. Nix
Title: Executive Vice President –
Finance (Principal Financial Officer)
 
         
 
Date: April 17, 2003        

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INDEX TO EXHIBITS

     
Exhibit No.   Description
 
99.1   Press Release, dated April 17, 2003.

EX-99.1 3 g82096exv99w1.txt PRESS RELEASE DATED 4/17/03 Exhibit 99.1 FOR IMMEDIATE RELEASE Contact: Jerry W. Nix, Executive Vice President - Finance (770) 612-2048 GENUINE PARTS COMPANY REPORTS FIRST QUARTER RESULTS AND DECLARES REGULAR QUARTERLY DIVIDEND Atlanta, Georgia, April 17, 2003 -- Genuine Parts Company (NYSE: GPC) reported sales and earnings for the first quarter ended March 31, 2003. Larry Prince, Chairman of the Board of Directors, announced today that sales totaling $2.02 billion were up 2% compared to the first quarter of 2002. Net income, before the effect of changes in accounting principles discussed below, was $88.4 million, an increase of 2% over $87 million for the first quarter of 2002 and, on a per share diluted basis, net income equaled 51 cents, up 2% compared to 50 cents reported in the comparable quarter of the prior year. After accounting changes for the first quarter of 2002 and 2003 as discussed below, net income was $69 million this year compared to a net loss of $308 million in the previous year. Earnings per share were 39 cents compared to a loss of $1.76 last year. Mr. Prince stated: "There have been a number of accounting changes coming forward from the Financial Accounting Standards Board in recent times. As you may recall in the first quarter of 2002, we completed our impairment testing for goodwill in conjunction with the new provisions introduced in FASB Statement No. 142 resulting in a non-cash charge of $395 million. This was recorded as of January 2002 as a cumulative effect of a change in accounting principle. Now, effective January 1, 2003, all companies including GPC are required to adopt the Financial Accounting Standards Board's EITF No. 02-16 affecting the accounting treatment of cash consideration received from vendors. This encompasses certain advertising and promotional allowances, catalog support and other cash support arrangements that normally exist among retailers and distributors with their vendors. "GPC has in certain instances accounted for funds of this type as a reduction in our SG&A, an approved method and in compliance with generally accepted accounting principles. Under the new method, vendor allowances are generally considered a reduction in the cost of goods sold. As a result of EITF No. 02-16, a non-cash charge of $20 million was recorded as of January 1, representing the cumulative effect of a change in accounting principle." Page 2 Mr. Prince further commented: "The Automotive Group improved revenues by 2% for the quarter and this was the seventh consecutive quarter of sales growth for our automotive parts operations. Both Motion Industries, our industrial group, and S.P. Richards, our office products company, were up 3% for the quarter showing steady improvement. EIS, our electrical group, was down 8% and in line with our expectations as they continue to make progress." Mr. Prince also announced: "The Board of Directors of the Company declared a regular quarterly dividend of 29.5 cents per share on the Company's common stock. The dividend is payable July 1, 2003 to shareholders of record June 6, 2003." Mr. Prince concluded: "We plan to continue to push hard to outperform all of the markets we are operating in. Our balance sheet remains strong and we currently have tight expense controls in place. We continue to be an excellent cash generator. We look forward to reporting continued improvement to you as 2003 progresses." 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 by dialing 877-422-4780, conference ID 9502099. A replay will also be available at 800-642-1687 two hours after the completion of the conference call until 12:00 a.m. Eastern Time on May 1, 2003. FORWARD LOOKING STATEMENTS Various statements in this release may constitute forward-looking statements. Actual results may differ materially from those indicated as a result of various important factors. 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. ABOUT GENUINE PARTS COMPANY Genuine Parts Company is a distributor of automotive replacement parts in the U.S., Canada and Mexico. 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 product nationwide in the U.S. and in Canada. The Electrical/Electronic Group, EIS, Inc., distributes electrical and electronic components throughout the U.S. and Mexico. GENUINE PARTS COMPANY and SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME --------------------------------- (Unaudited)
Three Months Ended March 31, 2003 2002 ----------- ----------- (in thousands, except per share data) Net Sales ................................................................... $ 2,021,858 $ 1,977,743 Cost of goods sold .......................................................... 1,383,518 1,373,774 ----------- ----------- 638,340 603,969 Selling, administrative & other expenses .................................... 493,145 461,067 ----------- ----------- Income before income taxes and cumulative effect of a change in accounting principle ..................................................... 145,195 142,902 Income taxes ................................................................ 56,771 55,875 ----------- ----------- Net income before cumulative effect of a change in accounting principle ..... 88,424 87,027 Cumulative effect of a change in accounting principle (1) ................... (19,541) (395,090) ----------- ----------- Net income (loss) ........................................................... $ 68,883 $ (308,063) =========== =========== Basic net income (loss) per common share: Before cumulative effect of a change in accounting principle ............. $ .51 $ .50 Cumulative effect of a change in accounting principle (1) ................ (.11) (2.27) ----------- ----------- Basic net income (loss) .................................................. $ .40 $ (1.77) =========== =========== Diluted net income (loss) per common share: Before cumulative effect of a change in accounting principle ............. $ .51 $ .50 Cumulative effect of a change in accounting principle (1) ................ (.12) (2.26) ----------- ----------- Diluted net income (loss) per common share ............................... $ .39 $ (1.76) =========== =========== Weighted average common shares outstanding .................................. 174,146 173,877 Dilutive effect of stock options and non-vested restricted stock awards ..... 456 1,005 ----------- ----------- Weighted average common shares outstanding - assuming dilution .............. 174,602 174,882 =========== ===========
(1) On January 1, 2003 the Company recorded a non-cash charge related to the capitalization of certain vendor consideration in connection with the new Financial Accounting Standards Board's EITF No. 02-16, "Accounting by a Customer for Cash Consideration Received from a Vendor". In addition, on January 1, 2002 the Company recorded a non-cash charge related to goodwill impairment in conjunction with the new Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets". GENUINE PARTS COMPANY AND SUBSIDIARIES SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS -------------------------------------------- (Unaudited)
Three month period ended March 31, 2003 2002 ----------- ----------- (In thousands) Net sales: Automotive $ 1,022,471 $ 998,659 Industrial 569,630 551,169 Office Products 363,826 352,757 Electrical/Electronic 75,417 81,620 Other (1) (9,486) (6,462) ----------- ----------- Total net sales $ 2,021,858 $ 1,977,743 =========== =========== Operating profit (loss): Automotive $ 83,430 $ 83,988 Industrial 43,187 42,644 Office Products 41,556 41,266 Electrical/Electronic 1,597 (680) ----------- ----------- Total operating profit 169,770 167,218 Interest expense (13,694) (16,449) Other, net (10,881) (7,867) ----------- ----------- Income before income taxes and accounting changes $ 145,195 $ 142,902 =========== =========== Capital expenditures $ 25,659 $ 11,442 =========== =========== Depreciation and amortization $ 17,031 $ 18,417 =========== =========== Current ratio 3.3 3.4 =========== =========== Total debt to total capitalization 28.3% 28.1% =========== ===========
(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 ASSETS
March 31, March 31, 2003 2002 ---------- ---------- (Unaudited) (in thousands) CURRENT ASSETS Cash and cash equivalents ............................. $ 25,030 $ 56,358 Trade accounts receivable ............................. 1,110,334 1,088,018 Inventories ........................................... 2,057,917 1,864,095 Prepaid and other current accounts .................... 77,881 59,565 ---------- ---------- TOTAL CURRENT ASSETS ......................... 3,271,162 3,068,036 Goodwill and other intangible assets .................. 58,932 60,052 Other assets .......................................... 300,944 289,502 Total property, plant and equipment, net .............. 346,520 337,435 ---------- ---------- TOTAL ASSETS .......................................... $3,977,558 $3,755,025 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable ...................................... $ 596,255 $ 613,392 Current portion long-term debt and other borrowings ... 172,540 50,750 Income taxes .......................................... 54,096 43,751 Dividends payable ..................................... 51,360 50,468 Other current liabilities ............................. 130,183 144,623 ---------- ---------- TOTAL CURRENT LIABILITIES .................... 1,004,434 902,984 Long-term debt ........................................ 674,733 735,461 Deferred income taxes ................................. 99,441 60,985 Minority interests in subsidiaries .................... 47,967 46,110 SHAREHOLDERS' EQUITY Common stock .......................................... 173,848 174,247 Retained earnings and other ........................... 1,977,135 1,835,238 ---------- ---------- TOTAL SHAREHOLDERS' EQUITY ................... 2,150,983 2,009,485 ---------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ............ $3,977,558 $3,755,025 ========== ==========
GENUINE PARTS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended March 31, ---------------------------- (in thousands) 2003 2002 -------- --------- OPERATING ACTIVITIES: Net income (loss) .......................................... $ 68,883 $(308,063) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Cumulative effect of a change in accounting principle .... 19,541 395,090 Depreciation and amortization ............................ 17,031 18,417 Other .................................................... (62,565) 1,908 Changes in operating assets and liabilities .............. (462) 12,830 -------- --------- NET CASH PROVIDED BY OPERATING ACTIVITIES ..................... 42,428 120,182 INVESTING ACTIVITIES: Purchase of property, plant and equipment .................. (25,659) (11,442) Other ...................................................... (863) -0- -------- --------- NET CASH USED IN INVESTING ACTIVITIES ......................... (26,522) (11,442) FINANCING ACTIVITIES: Proceeds on credit facilities, net of payments ............. 55,998 (106,559) Stock options exercised .................................... 628 20,180 Dividends paid ............................................. (51,126) (51,539) Purchase of stock .......................................... (16,371) (234) -------- --------- NET CASH USED IN FINANCING ACTIVITIES ......................... (10,871) (138,152) -------- --------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS .......... 5,035 (29,412) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD .............. 19,995 85,770 -------- --------- CASH AND CASH EQUIVALENTS AT END OF PERIOD .................... $ 25,030 $ 56,358 ======== =========
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