GENUINE PARTS COMPANY

-----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, CpJ8Bv0j1yihxHkbjl54iDj4zIRbYvsc4RCga8wcLMHFrN5kqyDVDtDZ7LdbLLvk Vs9NoLmB3PdimCKX8FSl6w== 0000950144-03-008648.txt : 20030717 0000950144-03-008648.hdr.sgml : 20030717 20030717094231 ACCESSION NUMBER: 0000950144-03-008648 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030717 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030717 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: 03790392 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 g83852e8vk.htm GENUINE PARTS COMPANY GENUINE PARTS COMPANY

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): July 17, 2003

GENUINE PARTS COMPANY

(Exact Name of Registrant as Specified in Charter)


Georgia	001-05690	58-0254510

(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

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)

Item 9. Regulation FD Disclosure.

The information contained in this Item 9 of this Current Report on Form 8-K of Genuine Parts Company is being furnished pursuant to “Item 12. Results of Operations and Financial Condition” of the Securities and Exchange Commission’s (the “SEC”) Form 8-K in accordance with the guidance provided under SEC Release Nos. 33-8216 and 34-47583.

The information, including the exhibits attached hereto, in this Current Report on Form 8-K is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or into any filing or other document pursuant to the Securities Exchange Act of 1934, as amended, except as otherwise expressly stated in any such filing.

Attached and incorporated herein by reference as Exhibit 99.1 is a copy of the press release of Genuine Parts Company, dated July 17, 2003, reporting Genuine Parts Company financial results for the quarter ended June 30, 2003.

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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: July 17, 2003

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INDEX TO EXHIBITS


Exhibit		No. Description


99.1		Press Release, dated July 17, 2003.

EX-99.1 3 g83852exv99w1.txt EX-99.1 PRESS RELEASE DATED JULY 17, 2003 FOR IMMEDIATE RELEASE Contact: Jerry W. Nix, Executive Vice President - Finance (770) 612-2048 GENUINE PARTS COMPANY REPORTS SALES AND EARNINGS FOR SECOND QUARTER AND FIRST HALF OF 2003 Atlanta, Georgia, July 17, 2003 -- Genuine Parts Company (NYSE: GPC) reported sales and earnings for the second quarter and six months ended June 30, 2003. Larry Prince, Chairman of the Board of Directors, announced today that sales totaling $2.15 billion were up 1% compared to the second quarter of 2002. Net income was $90 million, compared to $96 million for the second quarter of 2002. On a per share diluted basis, net income equaled $.52. For the six months ended June 30, 2003, sales totaled $4.2 billion, up 2% as compared to the same period in 2002. Net income for the six months, before the cumulative effect of changes in accounting principles related to cash consideration from vendors and goodwill as discussed below, was $178.6 million compared to $183.1 million for the same period in the prior year, a decrease of 2%. On a per share diluted basis, net income for the period before the cumulative effect of a change in accounting principle equaled $1.02. After accounting changes recorded in the first quarter of 2003 and 2002 as discussed below, net income was $159 million this year compared to a net loss of $212 million in the previous six months. Earnings were $.91 compared to a loss of $1.21 for the six months in 2002. Mr. Prince stated: "As you may recall, in the first quarter of 2003, the Company adopted Financial Accounting Standards Board's EITF No. 02-16 related to the accounting treatment for cash consideration received from vendors. Under this new method, vendor allowances are 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, 2003, representing the cumulative effect of a change in accounting principle. In addition, 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." (Cont.) Page 2 Mr. Prince further commented: "The Automotive Group improved revenues by 2% for the quarter and for the six months and this was the eighth consecutive quarter of sales growth for our automotive parts operations. S. P. Richards, our office products company, was up 6% for the quarter and 4% for the six months, showing steady improvement. Motion Industries, our industrial group, was down 1% for the quarter and up 1% for the six months reflecting the contracting manufacturing economy and declining capacity utilization. EIS, our electrical group, was down 9% for the quarter and 8% for the six months." Mr. Prince concluded: "We are pleased with the initiatives in each segment and we are committed to the execution of these plans. Our balance sheet remains in excellent shape and we continue to generate strong cash flows. We remain optimistic about the long-term sales and earnings growth opportunities for Genuine Parts Company." 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 1511156. A replay will also be available at 800-642-1687, conference ID 1511156, until 12:00 a.m. EDT on July 31, 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. (Cont.) GENUINE PARTS COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended June 30, Six Months Ended June 30, ----------------------------- ------------------------------ 2003 2002 2003 2002 ----------- ----------- ----------- ----------- (000 omitted except per share data) Net sales ........................................... $ 2,152,794 $ 2,130,924 $ 4,174,652 $ 4,108,667 Cost of goods sold .................................. 1,501,411 1,486,692 2,884,929 2,860,466 ----------- ----------- ----------- ----------- 651,383 644,232 1,289,723 1,248,201 Selling, administrative & other expenses ............ 503,356 486,520 996,501 947,587 ----------- ----------- ----------- ----------- Income before income taxes .......................... 148,027 157,712 293,222 300,614 Income taxes ........................................ 57,879 61,665 114,650 117,540 ----------- ----------- ----------- ----------- Net income before cumulative effect of a change in accounting principle ................. 90,148 96,047 178,572 183,074 Cumulative effect of a change in accounting principle (1) ......................... -- -- (19,541) (395,090) ----------- ----------- ----------- ----------- Net income (loss) after cumulative effect of a change in accounting principle ................. $ 90,148 $ 96,047 $ 159,031 $ (212,016) =========== =========== =========== =========== Basic net income (loss) per common share: Before cumulative effect of a change in accounting principle ............................. $ .52 $ .55 $ 1.03 $ 1.05 Cumulative effect of a change in accounting principle -- -- (.12) (2.27) ----------- ----------- ----------- ----------- Basic net income (loss) ............................. $ .52 $ .55 $ .91 $ (1.22) =========== =========== =========== =========== Diluted net income (loss) per common share: Before cumulative effect of a change in accounting principle ............................. $ .52 $ .55 $ 1.02 $ 1.05 Cumulative effect of a change in accounting principle -- -- (.11) (2.26) ----------- ----------- ----------- ----------- Diluted net income (loss) ........................... $ .52 $ .55 $ .91 $ (1.21) =========== =========== =========== =========== Weighted average common shares outstanding .......... 173,895 174,445 174,019 174,163 Dilutive effect of stock options and non-vested restricted stock awards ............... 565 903 498 945 ----------- ----------- ----------- ----------- Weighted average common shares outstanding - assuming dilution ................................ 174,460 175,348 174,517 175,108 =========== =========== =========== ===========
(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". (Cont.) GENUINE PARTS COMPANY AND SUBSIDIARIES SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS -------------------------------------------- (Unaudited)
Three month period ended June 30, Six month period ended June 30, 2003 2002 2003 2002 --------------------------------- ------------------------------- (in thousands) Net sales: Automotive $ 1,167,797 $ 1,148,572 $ 2,190,268 $ 2,147,230 Industrial 565,912 572,618 1,135,542 1,123,788 Office Products 355,448 336,599 719,274 689,356 Electrical/Electronic Materials 73,283 80,558 148,700 162,178 Other (1) (9,646) (7,423) (19,132) (13,885) ----------- ----------- ----------- ----------- Total net sales $ 2,152,794 $ 2,130,924 $ 4,174,652 $ 4,108,667 =========== =========== =========== =========== Operating profit (loss): Automotive $ 103,832 $ 108,648 $ 187,262 $ 192,943 Industrial 33,232 44,502 76,419 87,031 Office Products 31,333 29,854 72,889 70,928 Electrical/Electronic Materials 1,916 600 3,513 (80) ----------- ----------- ----------- ----------- Total operating profit 170,313 183,604 340,083 350,822 Interest expense (13,350) (16,409) (27,044) (32,858) Other, net (8,936) (9,483) (19,817) (17,350) ----------- ----------- ----------- ----------- Income before income taxes and accounting changes $ 148,027 $ 157,712 $ 293,222 $ 300,614 =========== =========== =========== =========== Capital expenditures $ 11,529 $ 14,540 $ 37,188 $ 25,982 =========== =========== =========== =========== Depreciation and amortization $ 18,740 $ 17,882 $ 35,771 $ 36,299 =========== =========== =========== =========== Current ratio 3.4/1 3.3/1 =========== =========== Total debt to total capitalization 26.6% 25.9% =========== ===========
(1) Represents the net effect of discounts, incentives and freight billed reported as a component of net sales. (Cont.) GENUINE PARTS COMPANY and SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS June 30, June 30, 2003 2002 --------------------------- (Unaudited) (in thousands) CURRENT ASSETS Cash and cash equivalents ................................................. $ 21,942 $ 24,549 Trade accounts receivable ................................................. 1,138,389 1,112,717 Inventories ............................................................... 2,044,336 1,921,481 Prepaid and other current accounts ........................................ 84,776 74,908 ---------- ---------- TOTAL CURRENT ASSETS ............................................. 3,289,443 3,133,655 Goodwill and other intangible assets ...................................... 58,297 59,363 Other assets .............................................................. 334,771 301,885 Total property, plant and equipment, net .................................. 338,982 332,577 ---------- ---------- TOTAL ASSETS .............................................................. $4,021,493 $3,827,480 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable .......................................................... $ 624,476 $ 689,987 Current portion long-term debt and other borrowings ....................... 130,818 44,782 Income taxes .............................................................. 24,105 34,215 Dividends payable ......................................................... 51,297 50,581 Other current liabilities ................................................. 150,392 139,918 ---------- ---------- TOTAL CURRENT LIABILITIES ........................................ 981,088 959,483 Long-term debt ............................................................ 671,682 675,407 Deferred income taxes ..................................................... 100,597 81,898 Minority interests in subsidiaries ........................................ 48,559 46,906 Common stock .............................................................. 173,936 174,729 Retained earnings and other ............................................... 2,045,631 1,889,057 ---------- ---------- TOTAL SHAREHOLDERS' EQUITY ....................................... 2,219,567 2,063,786 ---------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ................................ $4,021,493 $3,827,480 ========== ==========
(Cont.) GENUINE PARTS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended June 30, ------------------------ (in thousands) 2003 2002 --------- --------- OPERATING ACTIVITIES: Net income (loss) ...................................................................... $ 159,031 $(212,016) 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 ........................................................ 35,771 36,299 Other ................................................................................ (2,242) 6,538 Changes in operating assets and liabilities .......................................... (66,186) (20,509) --------- --------- NET CASH PROVIDED BY OPERATING ACTIVITIES ................................................. 145,915 205,402 INVESTING ACTIVITIES: Purchase of property, plant and equipment .............................................. (37,188) (25,982) Other .................................................................................. (863) -0- --------- --------- NET CASH USED IN INVESTING ACTIVITIES ..................................................... (38,051) (25,982) FINANCING ACTIVITIES: Net proceeds (payments) on credit facilities ........................................... 10,999 (173,421) Stock options exercised ................................................................ 1,401 35,291 Dividends paid ......................................................................... (101,946) (102,236) Purchase of stock ...................................................................... (16,371) (275) --------- --------- NET CASH USED IN FINANCING ACTIVITIES ..................................................... (105,917) (240,641) --------- --------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ...................................... 1,947 (61,221) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD .......................................... 19,995 85,770 --------- --------- CASH AND CASH EQUIVALENTS AT END OF PERIOD ................................................ $ 21,942 $ 24,549 ========= =========
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