-----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, QiyL0DnQNxslyuLUSzYQyNF1ruBDyKKADxNRCpPxZX62Vtc6FFl+5Kah+UGmBore pdneWpeyTYHJYOSa0BR0BA== 0000950144-97-011376.txt : 19971031 0000950144-97-011376.hdr.sgml : 19971031 ACCESSION NUMBER: 0000950144-97-011376 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971030 SROS: NYSE 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: 10-Q SEC ACT: SEC FILE NUMBER: 001-05690 FILM NUMBER: 97703746 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 CO 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------------------------- FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 1997 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 (770)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 X No ------ ------ Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date (the close of the period covered by this report). 178,693,967 ----------- (Shares of Common Stock) 2 PART 1 - FINANCIAL INFORMATION Item 1 - Financial Statements GENUINE PARTS COMPANY and SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS Sept. 30, Dec. 31, 1997 1996 ----------- ---------- (Unaudited) (in thousands) CURRENT ASSETS - -------------- Cash and cash equivalents ............................. $ 53,987 $ 67,373 Trade accounts receivable, less allowance for doubtful accounts (1997 - $9,905; 1996 - $1,771) .. 709,597 622,836 Inventories - at lower of cost (substantially last-in, first-out method) or market ........................... 1,249,165 1,233,820 Prepaid and other current accounts .................... 19,360 13,613 ----------- ---------- TOTAL CURRENT ASSETS .............................. 2,032,109 1,937,642 Investments and other assets .......................... 240,938 237,994 Total property, plant and equipment, less allowance for depreciation (1997 - $258,783; 1996 - $234,791) ... 367,741 345,995 ----------- ---------- $ 2,640,788 $2,521,631 =========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable .................................... $ 430,621 $ 401,842 Revolving line of credit ............................ 20,000 47,000 Income taxes ........................................ 16,127 15,765 Dividends payable ................................... 43,030 40,258 Other current liabilities ........................... 61,050 63,514 ----------- -------- TOTAL CURRENT LIABILITIES ...................... 570,828 568,379 Long-term debt ...................................... 159,942 110,241 Deferred income taxes ............................... 75,388 75,388 Minority interests in subsidiaries .................. 40,287 35,569 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 - 1997 - 178,693,967; 1996 - 180,048,435 . 178,694 180,048 Retained earnings ................................... 1,615,649 1,552,006 ------------ --------- TOTAL SHAREHOLDERS' EQUITY ..................... 1,794,343 1,732,054 ------------ ---------- $ 2,640,788 $2,521,631 ============ ==========
See notes to condensed consolidated financial statements. 2 3 GENUINE PARTS COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended Sept. 30, Nine Months Ended Sept. 30, ---------------------------- --------------------------- 1997 1996 1997 1996 ---- ---- ---- ---- (000 omitted except per share data) Net sales ..................................... $1,555,776 $1,474,836 $4,523,878 $4,319,631 Cost of goods sold ............................ 1,091,809 1,039,564 3,185,524 3,050,798 ---------- ---------- ---------- ---------- 463,967 435,272 1,338,354 1,268,833 Selling, administrative & other expenses ...... 325,601 300,476 935,011 878,356 ---------- ---------- ---------- ---------- Income before income taxes .................... 138,366 134,796 403,343 390,477 Income taxes .................................. 54,654 53,244 159,295 154,238 ---------- ---------- ---------- ---------- NET INCOME .................................... $ 83,712 $ 81,552 $ 244,048 $ 236,239 ========== ========== ========== ========== Average common shares outstanding - Note B .... 179,447 181,172 179,800 181,991 ========== ========== ========== ========== Net income per common share - Note B .......... $ .47 $ .45 $ 1.36 $ 1.30 ========== ========== ========== ========== Dividends declared per common share - Note B .. $ .24 $ .22 $ .72 $ .67 ========== ========== ========== ==========
See notes to condensed consolidated financial statements. 3 4 GENUINE PARTS COMPANY AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended Sept. 30, --------------- (000 omitted) Cash Provided By: 1997 1996 ---- ---- OPERATING ACTIVITIES: Net income ...................................................................... $ 244,048 $ 236,239 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation .................................................................. 43,882 39,171 Other ......................................................................... 4,718 5,587 Changes in operating assets and liabilities: Trade accounts receivable ................................................... (86,761) (75,662) Merchandise inventories ..................................................... (15,345) (60,600) Trade accounts payable ...................................................... 28,779 90,116 Income taxes payable ........................................................ 362 21,020 Other operating assets and liabilities ...................................... (8,211) 4,414 --------- --------- NET CASH PROVIDED BY OPERATING ACTIVITIES ........................................ 211,472 260,285 INVESTING ACTIVITIES: Purchase of property, plant and equipment ....................................... (73,451) (77,818) Other investing activities ...................................................... 4,879 623 --------- --------- NET CASH USED IN INVESTING ACTIVITIES ............................................ (68,572) (77,195) FINANCING ACTIVITIES: Proceeds from revolving line of credit and long-term debt, net .................. 23,000 35,000 Dividends paid .................................................................. (126,664) (119,825) Purchase of stock ............................................................... (65,020) (68,729) Other financing activities ...................................................... 12,398 429 --------- --------- NET CASH USED IN FINANCING ACTIVITIES ............................................ (156,286) (153,125) --------- --------- NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ............................. (13,386) 29,965 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ................................. 67,373 44,254 --------- --------- CASH AND CASH EQUIVALENTS AT END OF PERIOD ....................................... $ 53,987 $ 74,219 ========= =========
See notes to condensed consolidated financial statements. 4 5 NOTES TO FINANCIAL STATEMENTS Note A - Basis of Presentation The accompanying unaudited condensed consolidated 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 nine months ended September 30, 1997, are not necessarily indicative of results for the entire year. Note B - Stock Split The retroactive effect of a March 1997 three-for-two stock split effected in the form of a 50% stock dividend has been accounted for in the reported figures for the preceding year. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Genuine Parts Company (the "Company") reported record sales and earnings in the third quarter of 1997. Sales for the quarter were $1.56 billion, up 5% over the same period in 1996. Net income in the quarter advanced 3% to $84 million. On a per-share basis, net income in the quarter was $.47 versus $.45 in the same quarter of the prior year. For the nine months ended September 30, 1997, sales totaled $4.5 billion, up 5% over the same period in 1996, while net income was $244 million, an increase of 3%. Earnings per share were $1.36 for the first nine months of 1997 and $1.30 for the same period in 1996. The Automotive Parts Group had a sales increase of 4% for the quarter. This improving trend moved sales up 3% for the nine months. These results, while modest, provided market share gain as the automotive aftermarket remained relatively flat. Marketing programs designed for the professional installer and the do-it-yourself customer should provide continued progress. Sales for the Industrial Parts Group increased 10% for the quarter and 9% for the nine months ended September 30, 1997, reflecting continued geographic expansion, increased market share and outstanding customer service to a growing customer base. The Office Products Group was up 5% for the quarter and 3% for the nine month period as S. P. Richards continues to expand and improve its geographic coverage and service level. Cost of goods sold decreased slightly as a percentage of net sales over the same quarter the prior year and the nine month period. Selling, administrative and other expenses increased 8% for the quarter and 6% for the nine months. The percentage of selling, administrative and other expenses to net sales increased slightly, due mostly to increased salaries, employee benefit expenses and store upgrade expenses. The ratio of current assets to current liabilities remains very good at 3.6 to 1 and the Company's cash position is good. PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) The following exhibits are filed as part of this report: Exhibit 3.1 Restated Articles of Incorporation of the Company (incorporated herein by reference from the Company's Annual Report on Form 10-K, dated March 3, 1995). Exhibit 3.2 Bylaws of the Company, as amended (incorporated herein by reference from the Company's Annual Report on Form 10-K, dated March 5, 1993). Exhibit 27 Financial Data Schedule (for SEC use only). (b) No reports on Form 8-K were filed by the registrant during the quarter ended September 30, 1997. 5 6 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 October 30, 1997 /s/ Jerry W. Nix ---------------- --------------------------------------- Jerry W. Nix Senior Vice President - Finance Date October 30, 1997 /s/ George W. Kalafut ---------------- --------------------------------------- George W. Kalafut Executive Vice President - Finance and Administration (Principal Financial and Accounting Officer) 6 EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF GENUINE PARTS COMPANY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-31-1997 JAN-01-1997 SEP-30-1997 53,987 0 709,597 9,905 1,249,165 2,032,109 367,741 258,783 2,640,788 570,828 159,942 0 0 178,694 1,615,649 2,640,788 4,523,878 4,523,878 3,185,524 935,011 0 0 0 403,343 159,295 244,048 0 0 0 244,048 1.36 1.36
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