-----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, CeEwtkThq75liA5SskX6KQpcIDr1SdJc6KTGgAHZHSaEK5mpqQK0ZXypfkDHxQok VPf0YXhuY2cf8u/cIni6ZA== 0000950144-04-006980.txt : 20040715 0000950144-04-006980.hdr.sgml : 20040715 20040715101547 ACCESSION NUMBER: 0000950144-04-006980 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040715 ITEM INFORMATION: FILED AS OF DATE: 20040715 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: 04915026 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 g89957e8vk.htm GENUINE PARTS COMPANY GENUINE PARTS COMPANY
 

UNITED STATES
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 15, 2004

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 July 15, 2004, reporting Genuine Parts Company financial results for the second quarter and six months ended June 30, 2004.

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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 15, 2004

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INDEX TO EXHIBITS

     
Exhibit No.
   Description
99.1
  Press Release, dated July 15, 2004.

 

EX-99.1 2 g89957exv99w1.txt EX-99.1 PRESS RELEASE 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 SECOND QUARTER AND FIRST HALF OF 2004 Atlanta, Georgia, July 15, 2004 -- Genuine Parts Company (NYSE: GPC) reported sales and earnings for the second quarter and six months ended June 30, 2004. Larry Prince, Chairman of the Board of Directors, announced today that sales totaling $2.3 billion were up 7% compared to the second quarter of 2003. Net income was $101.1 million, an increase of 12%, compared to $90.1 million for the second quarter of 2003. On a per share diluted basis, net income was 58 cents, up 12% compared to 52 cents for the second quarter last year. For the six months ended June 30, 2004, sales totaled $4.5 billion, up 8% compared to the same period in 2003. Net income for the six months was $201.3 million, an increase of 13% over $178.6 million recorded in the previous year before the cumulative effect of an accounting change adopted January 1, 2003. Earnings per share on a diluted basis were $1.15, up 13% compared to $1.02 for the same period last year before the accounting change. In accordance with the Financial Accounting Standards Board's EITF 02-16 affecting the accounting treatment of cash consideration received from vendors, a non-cash charge of $20 million was recorded as of January 1, 2003, representing the cumulative effect of a change in accounting principle. After the cumulative effect adjustment in 2003, net income for the six months ended June 30, 2004 was up 27% and diluted earnings per share were up 26% compared to the six months ended June 30, 2003. Mr. Prince stated: "Our second quarter results continued the positive direction established in the first quarter with both sales and earnings reaching record levels. We were again pleased to see each of our four business segments contribute to our success in the quarter." (Cont.) Page 2 Mr. Prince further commented: "Sales for Motion Industries, our Industrial Group, and EIS, our Electrical/Electronics Group, were especially strong. Both of these companies serve the manufacturing sector, which is currently experiencing a strong recovery from earlier periods. Motion's sales grew by 11% for the quarter and EIS was up 17%. Automotive sales were up 4% for the period and S.P. Richards, our Office Products Group, improved by 5%. It is interesting to note over a period of time how the diversity of our various businesses brings us strength and balance. The splendid performance we are now seeing at Motion and EIS is a clear statement to this idea." Mr. Prince concluded: "We have a number of positives working for us as we move into the second half of 2004. The diversity of our Company in four sound industries gives us great balance and we expect to see continued improvement. Our Balance Sheet remains in excellent shape to support the continued growth ahead of us and we believe the final half of 2004 will be a good one 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 8306890. A replay will also be available at 800-642-1687, conference ID 8306890, until 12:00 a.m. EDT on July 29, 2004. 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/Electronics 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, ----------------------------- ----------------------------- 2004 2003 2004 2003 ----------- ----------- ----------- ----------- (in thousands, except per share data) Net sales ............................................ $ 2,297,686 $ 2,152,794 $ 4,494,677 $ 4,174,652 Cost of goods sold ................................... 1,604,621 1,501,411 3,114,701 2,884,929 ----------- ----------- ----------- ----------- 693,065 651,383 1,379,976 1,289,723 Selling, administrative & other expenses ............. 529,132 503,356 1,053,646 996,501 ----------- ----------- ----------- ----------- Income before income taxes and cumulative effect of a change in accounting principle ........ 163,933 148,027 326,330 293,222 Income taxes ......................................... 62,787 57,879 124,985 114,650 ----------- ----------- ----------- ----------- Net income before cumulative effect of a change in accounting principle .................. 101,146 90,148 201,345 178,572 Cumulative effect of a change in accounting principle (1) .......................... -- -- -- (19,541) ----------- ----------- ----------- ----------- Net income ........................................... $ 101,146 $ 90,148 $ 201,345 $ 159,031 =========== =========== =========== =========== Basic net income per common share: Before cumulative effect of a change in accounting principle .............................. $ .58 $ .52 $ 1.15 $ 1.03 Cumulative effect of a change in accounting principle -- -- -- (.12) ----------- ----------- ----------- ----------- Basic net income ..................................... $ .58 $ .52 $ 1.15 $ 91 =========== =========== =========== =========== Diluted net income per common share: Before cumulative effect of a change in accounting principle .............................. $ .58 $ .52 $ 1.15 $ 1.02 Cumulative effect of a change in accounting principle -- -- -- (.11) ----------- ----------- ----------- ----------- Diluted net income ................................... $ .58 $ .52 $ 1.15 $ 91 =========== =========== =========== =========== Weighted average common shares outstanding ........... 174,829 173,895 174,575 174,019 Dilutive effect of stock options and non-vested restricted stock awards ................ 815 565 694 498 ----------- ----------- ----------- ----------- Weighted average common shares outstanding assuming dilution ................................. 175,644 174,460 175,269 174,517 =========== =========== =========== ===========
(1) On January 1, 2003 the Company recorded a non-cash charge related to the capitalization of certain vendor consideration in connection with the Financial Accounting Standards Board's EITF No. 02-16, "Accounting by a Customer (Including a Reseller) for Certain Consideration Received from a Vendor". (Cont.) GENUINE PARTS COMPANY AND SUBSIDIARIES SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS (Unaudited)
Three month period ended June 30, Six month period ended June 30, 2004 2003 2004 2003 ----------- ----------- ----------- ----------- (in thousands) Net sales: Automotive ...................... $ 1,218,695 $ 1,167,797 $ 2,345,246 $ 2,190,268 Industrial ...................... 629,402 565,912 1,237,906 1,135,542 Office Products ................. 372,354 355,448 759,144 719,274 Electrical/Electronic Materials . 85,827 73,283 168,906 148,700 Other (1) ....................... (8,592) (9,646) (16,525) (19,132) ----------- ----------- ----------- ----------- Total net sales ............. $ 2,297,686 $ 2,152,794 $ 4,494,677 $ 4,174,652 =========== =========== =========== =========== Operating profit: Automotive ...................... $ 109,492 $ 103,832 $ 202,753 $ 187,262 Industrial ...................... 38,179 33,232 84,298 76,419 Office Products ................. 32,694 31,333 76,448 72,889 Electrical/Electronic Materials . 4,300 1,916 7,520 3,513 ----------- ----------- ----------- ----------- Total operating profit ...... 184,665 170,313 371,019 340,083 Interest expense ................ (9,870) (13,350) (19,847) (27,044) Other, net ...................... (10,862) (8,936) (24,842) (19,817) ----------- ----------- ----------- ----------- Income before income taxes and accounting change ..... $ 163,933 $ 148,027 $ 326,330 $ 293,222 =========== =========== =========== =========== Capital expenditures ................. $ 13,514 $ 11,529 $ 25,571 $ 37,188 =========== =========== =========== =========== Depreciation and amortization ........ $ 16,998 $ 18,740 $ 33,191 $ 35,771 =========== =========== =========== =========== Current ratio ........................ 3.0/1 3.4/1 =========== =========== Total debt to total capitalization ... 20.5% 26.6% =========== ===========
(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
June 30, June 30, 2004 2003 ---------- ---------- (Unaudited) (in thousands) CURRENT ASSETS Cash and cash equivalents ................................................. $ 127,732 $ 21,942 Trade accounts receivable ................................................. 1,173,766 1,138,389 Inventories ............................................................... 2,139,207 2,044,336 Prepaid and other current accounts ........................................ 110,937 84,776 ---------- ---------- TOTAL CURRENT ASSETS ............................................. 3,551,642 3,289,443 Goodwill and other intangible assets ...................................... 57,850 58,297 Other assets .............................................................. 319,735 334,771 Total property, plant and equipment, net .................................. 332,863 338,982 ---------- ---------- TOTAL ASSETS .............................................................. $4,262,090 $4,021,493 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable .......................................................... $ 772,563 $ 624,476 Current portion long-term debt and other borrowings ....................... 127,172 130,818 Income taxes .............................................................. 45,386 24,105 Dividends payable ......................................................... 52,483 51,297 Other current liabilities ................................................. 173,897 150,392 ---------- ---------- TOTAL CURRENT LIABILITIES ........................................ 1,171,501 981,088 Long-term debt ............................................................ 500,000 671,682 Deferred income taxes ..................................................... 113,254 100,597 Minority interests in subsidiaries ........................................ 51,514 48,559 Common stock .............................................................. 174,993 173,936 Retained earnings and other ............................................... 2,250,828 2,045,631 ---------- ---------- TOTAL SHAREHOLDERS' EQUITY ....................................... 2,425,821 2,219,567 ---------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ................................ $4,262,090 4,021,493 ========== ==========
(Cont.) GENUINE PARTS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended June 30, -------------- (in thousands) 2004 2003 --------- --------- OPERATING ACTIVITIES: Net income .................................................................. $ 201,345 $ 159,031 Adjustments to reconcile net income to net cash provided by operating activities: Cumulative effect of a change in accounting principle ..................... -- 19,541 Depreciation and amortization ............................................. 33,191 35,771 Other ..................................................................... 1,656 (2,242) Changes in operating assets and liabilities ............................... 1,483 (66,186) --------- --------- NET CASH PROVIDED BY OPERATING ACTIVITIES ...................................... 237,675 145,915 INVESTING ACTIVITIES: Purchase of property, plant and equipment ................................... (25,571) (37,188) Other ....................................................................... -- (863) --------- --------- NET CASH USED IN INVESTING ACTIVITIES .......................................... (25,571) (38,051) FINANCING ACTIVITIES: Net (payments) proceeds on credit facilities ................................ (21,900) 10,999 Stock options exercised ..................................................... 28,918 1,401 Dividends paid .............................................................. (103,667) (101,946) Purchase of stock ........................................................... (3,116) (16,371) --------- --------- NET CASH USED IN FINANCING ACTIVITIES .......................................... (99,765) (105,917) --------- --------- NET INCREASE IN CASH AND CASH EQUIVALENTS ...................................... 112,339 1,947 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ............................... 15,393 19,995 --------- --------- CASH AND CASH EQUIVALENTS AT END OF PERIOD ..................................... $ 127,732 $ 21,942 ========= =========
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