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, KBmKxcjcDhNLcFDB8Ft9eW4YBCHWE9VW7AnxGznTbKMRT+JSPcVN61DTzI8Rms+V iJxj4W0k5l2N4F7rgEHqHQ== 0000950144-03-011543.txt : 20031016 0000950144-03-011543.hdr.sgml : 20031016 20031016095805 ACCESSION NUMBER: 0000950144-03-011543 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031016 ITEM INFORMATION: FILED AS OF DATE: 20031016 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: 03942979 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 g85279ae8vk.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): October 16, 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 12. Results of Operations and Financial Condition.

The information contained in 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 October 16, 2003, reporting Genuine Parts Company financial results for the quarter ended September 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: October 16, 2003

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INDEX TO EXHIBITS


Exhibit No.		Description

99.1		Press Release, dated October 16, 2003.

EX-99.1 3 g85279aexv99w1.txt EX-99.1 PRESS RELEASE DATED OCTOBER 16, 2003 EXHIBIT 99.1 FOR IMMEDIATE RELEASE Contact: Jerry W. Nix, Executive Vice President - Finance (770) 612-2048 GENUINE PARTS COMPANY REPORTS SALES AND EARNINGS FOR THIRD QUARTER AND NINE MONTHS OF 2003 Atlanta, Georgia, October 16, 2003 -- Genuine Parts Company (NYSE: GPC) reported sales and earnings for the third quarter and nine months ended September 30, 2003. Larry Prince, Chairman of the Board of Directors, announced today that sales totaling $2.2 billion were up 2% compared to the third quarter of 2002. Net income was $88 million, compared to $94 million for the third quarter of 2002. On a per share diluted basis, net income equaled $.51, compared to $.54 for the third quarter of 2002. For the nine months ended September 30, 2003, sales totaled $6.4 billion, up 2% as compared to the same period in 2002. Net income for the nine months, before the cumulative effect of changes in accounting principles related to cash consideration from vendors and goodwill as discussed below, was $266.9 million compared to $277.1 million for the same period in the prior year, a decrease of 4%. On a per share diluted basis, net income for the period before the cumulative effect of a change in accounting principle equaled $1.53. After accounting changes recorded in the first quarter of 2003 and 2002 as discussed below, net income was $247 million this year compared to a net loss of $118 million in the same period of the previous year. Earnings were $1.42 compared to a loss of $.67 for the nine 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 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, 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 3% for the quarter and by 2% for the nine months. S. P. Richards, our office products company, was up 5% for the quarter and 4% for the nine months, showing steady improvement. Motion Industries, our industrial group, was down 3% for the quarter and down slightly for the nine months reflecting the contracting manufacturing economy and declining capacity utilization. EIS, our electrical group, was down 6% for the quarter and 8% for the nine months." Mr. Prince concluded, "We are pleased with the initiatives in each segment and we are committed to the execution of these plans. Our priorities will be continued gradual sales improvement with close attention to operating costs and margin improvement. We are also fortunate to have a strong balance sheet and financial condition to support our activities as we move forward." Mr. Prince added, "In the fourth quarter, we also plan to finalize the acquisition of the NAPA Hawaii business, a long-standing NAPA distributor headquartered in Honolulu, Hawaii and with annual sales of approximately $35 million. The acquisition of NAPA Hawaii offers us excellent growth opportunities in their markets and we look forward to the contributions they will make to our 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 3081236. A replay will also be available at 800-642-1687, conference ID 3081236, until 12:00 a.m. EST on October 30, 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. and in Canada 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 Sept. 30, Nine Months Ended Sept. 30, ---------------------------- ------------------------------ 2003 2002 2003 2002 ----------- ----------- ----------- ----------- (000 omitted except per share data) Net sales ........................................... $ 2,189,388 $ 2,156,759 $ 6,364,040 $ 6,265,426 Cost of goods sold .................................. 1,537,439 1,506,966 4,422,368 4,367,432 ----------- ----------- ----------- ----------- 651,949 649,793 1,941,672 1,897,994 Selling, administrative & other expenses ............ 506,903 494,633 1,503,404 1,442,220 ----------- ----------- ----------- ----------- Income before income taxes .......................... 145,046 155,160 438,268 455,774 Income taxes ........................................ 56,713 61,133 171,363 178,673 ----------- ----------- ----------- ----------- Net income before cumulative effect of a change in accounting principle ................. 88,333 94,027 266,905 277,101 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 ................. $ 88,333 $ 94,027 $ 247,364 $ (117,989) =========== =========== =========== =========== Basic net income (loss) per common share: Before cumulative effect of a change in accounting principle ............................. $ .51 $ .54 $ 1.53 $ 1.59 Cumulative effect of a change in accounting principle -- -- (.11) (2.27) ----------- ----------- ----------- ----------- Basic net income (loss) ............................. $ .51 $ .54 $ 1.42 $ (.68) =========== =========== =========== =========== Diluted net income (loss) per common share: Before cumulative effect of a change in accounting principle ............................. $ .51 $ .54 $ 1.53 $ 1.58 Cumulative effect of a change in accounting principle -- -- (.11) (2.25) ----------- ----------- ----------- ----------- Diluted net income (loss) ........................... $ .51 $ .54 $ 1.42 $ (.67) =========== =========== =========== =========== Weighted average common shares outstanding .......... 173,948 174,709 173,995 174,347 Dilutive effect of stock options and non-vested restricted stock awards ............... 481 542 492 812 ----------- ----------- ----------- ----------- Weighted average common shares outstanding - assuming dilution ................................ 174,429 175,251 174,487 175,159 =========== =========== =========== ===========
(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 (Including a Reseller) for Certain 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 Sept. 30, Nine month period ended Sept. 30, 2003 2002 2003 2002 ----------- ----------- ----------- ----------- (in thousands) Net sales: Automotive $ 1,192,621 $ 1,155,395 $ 3,382,889 $ 3,302,625 Industrial 556,959 571,306 1,692,501 1,695,094 Office Products 375,875 359,568 1,095,149 1,048,924 Electrical/Electronic Materials 74,455 79,531 223,155 241,709 Other (1) (10,522) (9,041) (29,654) (22,926) ----------- ----------- ----------- ----------- Total net sales $ 2,189,388 $ 2,156,759 $ 6,364,040 $ 6,265,426 =========== =========== =========== =========== Operating profit: Automotive $ 103,007 $ 107,524 $ 290,269 $ 300,467 Industrial 34,201 38,955 110,620 125,986 Office Products 30,339 30,165 103,228 101,093 Electrical/Electronic Materials 1,890 1,128 5,403 1,048 ----------- ----------- ----------- ----------- Total operating profit 169,437 177,772 509,520 528,594 Interest expense (12,982) (14,810) (40,026) (47,668) Other, net (11,409) (7,802) (31,226) (25,152) ----------- ----------- ----------- ----------- Income before income taxes and accounting changes $ 145,046 $ 155,160 $ 438,268 $ 455,774 =========== =========== =========== =========== Capital expenditures $ 26,425 $ 20,523 $ 63,613 $ 46,505 =========== =========== =========== =========== Depreciation and amortization $ 16,335 $ 16,698 $ 52,106 $ 52,997 =========== =========== =========== =========== Current ratio 3.4/1 3.3/1 =========== =========== Total debt to total capitalization 23.7% 25.6% =========== ===========
(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 Sept. 30, Sept. 30, 2003 2002 ---------- ---------- (Unaudited) (in thousands) CURRENT ASSETS Cash and cash equivalents ............................................................. $ 31,476 $ 39,600 Trade accounts receivable ............................................................. 1,132,837 1,084,270 Inventories ........................................................................... 2,083,143 1,967,400 Prepaid and other current accounts .................................................... 77,885 65,655 ---------- ---------- TOTAL CURRENT ASSETS ......................................................... 3,325,341 3,156,925 Goodwill and other intangible assets .................................................. 58,163 59,829 Other assets .......................................................................... 321,685 310,802 Total property, plant and equipment, net .............................................. 346,960 333,003 ---------- ---------- TOTAL ASSETS .......................................................................... $4,052,149 $3,860,559 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable....................................................................... $ 667,846 $ 690,900 Current portion long-term debt and other borrowings ................................... 30,009 43,780 Income taxes .......................................................................... 41,510 36,692 Dividends payable ..................................................................... 51,303 50,657 Other current liabilities ............................................................. 179,135 144,712 ---------- ---------- TOTAL CURRENT LIABILITIES .................................................... 969,803 966,741 Long-term debt ........................................................................ 671,658 675,266 Deferred income taxes ................................................................. 102,777 80,847 Minority interests in subsidiaries .................................................... 49,128 47,276 Common stock .......................................................................... 173,968 174,656 Retained earnings and other ........................................................... 2,084,815 1,915,773 ---------- ---------- TOTAL SHAREHOLDERS' EQUITY ................................................... 2,258,783 2,090,429 ---------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ............................................ $4,052,149 $3,860,559 ========== ==========
(Cont.) GENUINE PARTS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended Sept. 30, --------------- (in thousands) 2003 2002 ---- ---- OPERATING ACTIVITIES: Net income (loss) ............................................................................. $ 247,364 $(117,989) 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 ............................................................... 52,106 52,997 Other ....................................................................................... (32) 1,890 Changes in operating assets and liabilities ................................................. 7,004 (35,540) --------- --------- NET CASH PROVIDED BY OPERATING ACTIVITIES ........................................................ 325,983 296,448 INVESTING ACTIVITIES: Purchase of property, plant and equipment ..................................................... (63,613) (46,505) Other ......................................................................................... 7,237 (2,098) --------- --------- NET CASH USED IN INVESTING ACTIVITIES ............................................................ (56,376) (48,603) FINANCING ACTIVITIES: Net payments on credit facilities ............................................................. (90,034) (173,750) Stock options exercised ....................................................................... 2,838 35,540 Dividends paid ................................................................................ (153,253) (152,979) Purchase of stock ............................................................................. (17,677) (2,826) --------- --------- NET CASH USED IN FINANCING ACTIVITIES ............................................................ (258,126) (294,015) --------- --------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ............................................. 11,481 (46,170) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ................................................. 19,995 85,770 --------- --------- CASH AND CASH EQUIVALENTS AT END OF PERIOD ....................................................... $ 31,476 $ 39,600 ========= =========
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