-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, Og2nMFrsmi4FRKoCDSx7G0ir0iOdCnPgb3s+EtO+YbWgKLGPLfPKaySfhQ8ySDDe byy9ce1fQqQBhg2mPNTlog== 0000950144-94-001392.txt : 19940803 0000950144-94-001392.hdr.sgml : 19940803 ACCESSION NUMBER: 0000950144-94-001392 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940630 FILED AS OF DATE: 19940801 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: 1934 Act SEC FILE NUMBER: 001-05690 FILM NUMBER: 94541024 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 GENUINE PARTS - 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 _________________________ For The Quarter Ended June 30, 1994 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 (404) 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 * No ____ ____ Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the close of the period covered by this report. 124,503,897 ________________________ (Shares of Common Stock) 1 2 FORM 10-Q PART 1 - Financial Information Item 1 - Financial Statements
GENUINE PARTS COMPANY and SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS ASSETS June 30, Dec. 31, ------ 1994 1993 -------- -------- (Unaudited) CURRENT ASSETS (dollars in thousands) - - -------------- Cash and cash equivalents . . . . . . . . . . . . . . . . . . . $ 117,970 $ 123,231 Short-term investments . . . . . . . . . . . . . . . . . . . . 64,452 64,599 Trade accounts and notes receivable, less allowance for doubtful accounts (1994-$5,881; 1993-$1,582) . . . . . . 498,807 428,911 Inventories - at lower of cost (substantially last-in, first-out method) or market . . . . . . . . . . . . . . . . 893,271 879,154 Prepaid and other current items . . . . . . . . . . . . . . . . 12,427 10,299 -------- ----------- TOTAL CURRENT ASSETS . . . . . . . . . . . . . 1,586,927 1,506,194 Investments and other assets . . . . . . . . . . . . . . . . . 134,431 133,364 Total property, plant and equipment, less allowance for depreciation (1994-$191,513; 1993-$185,101) . . . . . . 241,401 231,198 ----------- ----------- $ 1,962,759 $ 1,870,756 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ CURRENT LIABILITIES - - ------------------- Accounts payable. . . . . . . . . . . . . . . . . . . . . . $ 281,045 $ 258,949 Income taxes. . . . . . . . . . . . . . . . . . . . . . . . 10,722 11,688 Other current liabilities . . . . . . . . . . . . . . . . . 85,257 82,835 ----------- ---------- TOTAL CURRENT LIABILITIES. . . . . . . . . . 377,024 353,472 Long-term debt. . . . . . . . . . . . . . . . . . . . . . . 13,148 12,265 Deferred income taxes . . . . . . . . . . . . . . . . . . . 37,980 37,980 Minority interests in subsidiaries. . . . . . . . . . . . . 23,600 21,776 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 - 1994: 124,503,897; 1993: 124,282,289 . . . . . 124,504 124,282 Additional paid-in capital. . . . . . . . . . . . . . . . . 3,754 2,566 Retained earnings . . . . . . . . . . . . . . . . . . . . . 1,382,749 1,318,415 ----------- ----------- TOTAL SHAREHOLDERS' EQUITY . . . . . . . . . 1,511,007 1,445,263 ----------- ----------- $ 1,962,759 $ 1,870,756 =========== ===========
See notes to consolidated condensed financial statements. 2 3 FORM 10-Q
GENUINE PARTS COMPANY and SUBSIDIARIES -------------------------------------- CONSOLIDATED STATEMENTS OF INCOME --------------------------------- (Unaudited) Three Months Ended June 30, Six Months Ended June 30, --------------------------- ------------------------- 1994 1993 1994 1993 ---- ---- ---- ---- (000 omitted except per share data) Net Sales..................................... $1,219,801 $1,106,176 $2,381,876 $2,144,090 Cost of goods sold............................ 856,984 779,894 1,672,602 1,507,387 --------- --------- --------- --------- 362,817 326,282 709,274 636,703 Selling, administrative & other expenses...... 246,406 219,984 489,762 439,598 --------- --------- --------- --------- Income before income taxes and cumulative effect of changes in accounting principles.. 116,411 106,298 219,512 197,105 Income taxes.................................. 45,400 40,393 85,610 74,809 --------- --------- --------- --------- Income before cumulative effect of changes in accounting principles.................... 71,011 65,905 133,902 122,296 Cumulative effect of changes in accounting principles, net of tax - Note B............. -- -- -- (1,055) --------- --------- --------- --------- NET INCOME.................................... $ 71,011 $ 65,905 $ 133,902 $ 121,241 ========= ========= ========= ========= Average common shares outstanding............. 124,501 124,207 124,485 124,193 ========= ========= ========= ========= Net income per common share................... $ .57 $ .53 $ 1.08 $ .98 ========= ========= ========= ========= Dividends declared per common share........... $ .2875 $ .265 $ .575 $ .53 ========= ========= ========= ========= *****************************************************************************************************************************
See notes to consolidated condensed financial statements. 3 4 FORM 10-Q
GENUINE PARTS COMPANY and SUBSIDIARIES -------------------------------------- CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW ---------------------------------------------- PART I (Unaudited) - - ------ Six Months Ended June 30, -------------- (000 omitted) Cash Provided By: - - ----------------- 1994 1993 ---- ---- OPERATING ACTIVITIES: Net income . . . . . . . . . . . . . . . . . . . . . . . . $ 133,902 $ 121,241 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization . . . . . . . . . . . . . 18,125 17,287 Other . . . . . . . . . . . . . . . . . . . . . . . . . 1,824 1,191 Changes in operating assets and liabilities: Trade accounts receivable (69,896) (50,986) Merchandise inventories (14,117) (9,505) Trade accounts payable 22,096 14,802 Income taxes payable (966) (7,931) Other operating assets and liabilities (2,334) 1,231 --------- --------- NET CASH PROVIDED BY OPERATING ACTIVITIES . . . . . . . . . . 88,634 87,330 INVESTING ACTIVITIES: Purchases of short-term investments, net of proceeds from sale and maturity 147 (41,448) Purchase of property, plant and equipment (29,056) (26,816) Other investing activities 1,680 (5,567) --------- --------- NET CASH USED IN INVESTING ACTIVITIES . . . . . . . . . . . . (27,229) (73,831) FINANCING ACTIVITIES: Dividends paid (68,724) (64,009) Other financing activities 2,058 1,396 --------- --------- NET CASH USED IN FINANCING ACTIVITIES . . . . . . . . . . . . (66,666) (62,613) --------- --------- NET DECREASE IN CASH AND CASH EQUIVALENTS . . . . . . . . . . (5,261) (49,114) --------- --------- CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD. . . . . . . 123,231 168,019 --------- --------- CASH AND CASH EQUIVALENTS AT END OF PERIOD . . . . . . . . . $ 117,970 $ 118,905 ========= =========
See notes to consolidated condensed financial statements. 4 5 FORM 10-Q NOTES TO FINANCIAL STATEMENTS Note A - Basis of Presentation The accompanying unaudited consolidated condensed 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 six months ended June 30, 1994, are not necessarily indicative of results for the entire year. Note B - Accounting Changes During the quarter ended March 31, 1993, the Company adopted Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions" which requires the projected future costs of providing postretirement benefits, such as health care and life insurance, be recognized as an expense as employees render service instead of when benefits are paid. The Company has applied the new rules using the cumulative effect method, resulting in a charge of $5,055,000 (net of income taxes of $3,095,000). Also during the quarter ended March 31, 1993, the Company adopted Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes". The cumulative effect as of January 1, 1993, of adopting Statement 109 increased net income by $4,000,000. As permitted by the Statement, prior year financial statements have not been restated to reflect the impact of the change in accounting method. The impact of adopting Statements 106 and 109 did not have a material impact on the Company's financial statements or its results of operations. Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The Company reported record sales and earnings in the second quarter and for the first six months of 1994. Sales for the quarter were $1.2 billion, up 10% over the same period in 1993. Net income in the quarter advanced 8% to $71.0 million. On a per-share basis, net income for the quarter was $.57 versus $.53 in the same quarter of the prior year. For the six months ended June 30, 1994, sales totaled $2.4 billion, up 11% over the first half of 1993, while net income was $133.9 million, an increase of 10%. Earnings per share were $1.08 for the first six months of 1994 and $.98 for the same period in 1993. 5 6 FORM 10-Q Sales for the Automotive Parts Group advanced 8% for the quarter and 9% for the first six months, reflecting the strength of NAPA programs in the marketplace and increased market penetration. Sales for the Industrial Parts Group increased 13% for the quarter and 12% for the six months ended June 30, 1994, as industrial production continues to increase. The Office Products Group was up 15% for the quarter and 17% for the six month period, reflecting innovative marketing programs, an outstanding level of service and geographic expansion. Each of these groups continue to outpace growth in their respective industries and to improve market share. Cost of goods sold decreased slightly as a percentage of net sales over the same quarter the prior year. Selling, administrative and other expenses increased 12% for the quarter and the percentage to net sales increased slightly, due mostly to increased salaries, employee benefits and expenses associated with the automotive total growth strategy. The first quarter results for 1993 included the net effect of adoption of FAS 106, "Employers' Accounting for Postretirement Benefits Other Than Pension", of a charge of $5,055,000 (net of income taxes of $3,095,000) and an increase in net income of $4,000,000 for the adoption of FAS 109, "Accounting for Income Taxes". The adoption of FAS 106 and 109 did not have a material impact on the Company's financial statements or its results of operations. The ratio of current assets to current liabilities remains very good at 4.2, and the Company's cash position is excellent. PART II Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS The 1994 Annual Meeting of Shareholders of the Company was held on April 18, 1994, pursuant to notice given to shareholders of record on February 18, 1994, at which date there were 124,464,667 shares of Common Stock outstanding. At the Annual Meeting, the shareholders elected four Class II directors with terms to expire at the 1997 Annual Meeting. As to the following named individuals, the holders of 106,117,237 shares of the Company's Common Stock voted in favor of their election, the holders of 42,146 shares voted against, the holders of 1,781,319 shares abstained, and there were no broker non-votes: Class II -------- John B. Ellis William A. Parker, Jr. John J. Scalley James B. Williams The following individuals' term of office as a director continued after the Annual Meeting: Class I Class III ------- --------- James R. Courim Jean Douville Bradley Currey, Jr. E. Reginald Hancock Thomas C. Gallagher Larry L. Prince Gardner E. Larned Alana S. Shepherd Lawrence G.Steiner 6 7 FORM 10-Q The shareholders adopted an amendment to the Company's Restated Articles of Incorporation increasing the aggregate number of authorized shares of $1.00 par value Common Stock of the Company from 150,000,000 shares to 450,000,000 shares. The holders of 84,657,566 shares of Common Stock voted in favor of the amendment, holders of 22,780,394 voted against, holders of 502,742 abstained, and there were no broker non-votes. The shareholders also ratified the selection of Ernst & Young as independent auditors of the Company for 1994. The holders of 107,276,892 shares of Common Stock voted in favor of the ratification, holders of 222,857 shares voted against, holders of 440,953 shares abstained, and there were no broker non-votes. Exhibits and Reports on Form 8-K No reports on Form 8-K were filed by the registrant during the quarter ended June 30, 1994. 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 August 1, 1994 /s/ Jerry Nix ------------------------- -------------------------------------- Senior Vice President - Finance /s/ George Kalafut -------------------------------------- Executive Vice President - Finance and Administration (Principal Financial and Accounting Officer) 7 -----END PRIVACY-ENHANCED MESSAGE-----