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): | February 20, 2012 |
Genuine Parts Company
__________________________________________
(Exact name of registrant as specified in its charter)
Georgia | 001-05690 | 58-0254510 |
_____________________ (State or other jurisdiction |
_____________ (Commission |
______________ (I.R.S. Employer |
of incorporation) | File Number) | Identification No.) |
2999 Circle 75 Pkwy, Atlanta, Georgia | 30339 | |
_________________________________ (Address of principal executive offices) |
___________ (Zip Code) |
Registrants telephone number, including area code: | 770.953.1700 |
Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On February 21, 2012, Genuine Parts Company issued a press release announcing its results of operations for the fourth quarter and fiscal year ended December 31, 2011. A copy of the press release is furnished with this Current Report on Form 8-K as exhibit 99.1.
The information, including exhibit 99.1 attached hereto contained in this Item 2.02 of this Current Report on Form 8-K of Genuine Parts Company 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. In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report and exhibit 99.1 attached hereto 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.
Item 8.01 Other Events.
On February 20, 2012, the Board of Directors of Genuine Parts Company declared an increase of 10% in the regular quarterly cash dividend for 2012. The Board increased the cash dividend payable to an annual rate of $1.98 per share compared with the previous dividend of $1.80 per share. The quarterly cash dividend of forty-nine and one-half cents ($.495) per share is payable April 2, 2012 to shareholders of record March 9, 2012.
In addition, the Board of Directors approved the following corporate officer changes. Treg S. Brown was elected to the position of Senior Vice President – Planning and Acquisitions and Lee A. Maher, Executive Vice President – U.S. Automotive Parts Group, was elected to the additional title of Chief Operating Officer of the U.S. Automotive Parts Group.
A copy of the press release announcing the foregoing is attached as Exhibit 99.2 to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release dated February 21, 2012
99.2 Press Release dated February 21, 2012
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 hereunto duly authorized.
Genuine Parts Company | ||||
February 21, 2012 | By: |
Jerry W. Nix
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Name: Jerry W. Nix | ||||
Title: Vice Chairman and CFO |
Exhibit Index
Exhibit No. | Description | |
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|
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99.1
|
Press Release dated February 21, 2012 | |
99.2
|
Press Release dated February 21, 2012 |
FOR IMMEDIATE RELEASE
Contact: Jerry W. Nix, Vice Chairman and CFO (770) 612-2048
Sidney G. Jones, Vice President Investor Relations (770) 818-4628
GENUINE PARTS COMPANY
REPORTS FOURTH QUARTER AND FULL YEAR RESULTS FOR 2011
- 4th Quarter Sales up 7% and EPS up 15% -
- Record Sales and Earnings for 2011 -
Atlanta, Georgia, February 21, 2012 Genuine Parts Company (NYSE: GPC) reports fourth quarter results and record sales and earnings for the year ended December 31, 2011.
Tom Gallagher, Chairman and Chief Executive Officer, announced today that sales in 2011 were $12.5 billion, up 11% compared to 2010. Net income for the year was $565 million, an increase of 19% compared to $476 million in 2010. Earnings per share on a diluted basis were $3.58, up 19% compared to $3.00 in 2010.
Mr. Gallagher stated, Genuine Parts Company had another excellent year in 2011, highlighted by double-digit sales and earnings growth and record sales and earnings per share for the second consecutive year. We further strengthened our financial condition with increased net income, an expanded operating margin and a continued emphasis on effectively managing the balance sheet. We are very proud of the job that was done throughout our organization.
Mr. Gallagher added, All four of our business segments produced top line growth for the year. The Automotive Group reported an 8% sales increase for the year, and the positive sales trends for this segment in 2011 reflect the ongoing solid fundamentals in the automotive aftermarket, including the overall aging of the vehicle population. Motion Industries, our industrial distribution company, generated a 19% sales increase with the strong double-digit sales growth at Motion driven by the combination of good internal growth initiatives and the strength in the manufacturing sector of the economy. EIS, our Electrical distribution company, had another outstanding year as well, and sales were up 24%. S.P. Richards, our Office Products Group, reported a 3% increase in revenues in 2011. We were pleased to show some growth in such a difficult environment for the office products industry.
Fourth Quarter 2011
Sales increased 7% to $3.0 billion in the fourth quarter ended December 31, 2011, compared to sales of $2.8 billion for the same period in 2010. Diluted earnings per share in the fourth quarter were 86 cents, up 15% compared to 75 cents per share for the fourth quarter of 2010.
In reviewing the quarter, Mr. Gallagher commented, Overall, our businesses continued to perform well in the fourth quarter. Our Automotive sales were up 6%, our Industrial Group sales were up 13%, our Electrical Group sales were up 10% and our Office Products Group sales were down slightly for the quarter.
Mr. Gallagher concluded, We enter 2012 with a continued commitment to growing sales and earnings, generating solid cash flows and maintaining a strong balance sheet. Further progress in each of these important areas will keep the Company moving ahead and they will help to insure another successful year in 2012.
Conference Call
Genuine Parts Company will hold a conference call today at 11:00 a.m. EST to discuss the results of the quarter, the year and the future outlook. Interested parties may listen to the call on the Companys website, www.genpt.com, by clicking Investor Services, or by dialing 877-331-5106, conference ID 46254235. A replay will also be available on the Companys website or at 855-859-2056, conference ID 46254235, two hours after the completion of the call until 12:00 a.m. EST on March 6, 2012.
Forward Looking Statements
Some statements in this report, as well as in other materials we file with the Securities and Exchange Commission (SEC) or otherwise release to the public and in materials that we make available on our website, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking. Forward-looking statements may relate, for example, to future operations, prospects, strategies, financial condition, economic performance (including growth and earnings), industry conditions and demand for our products and services. The Company cautions that its forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on our forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors include, but are not limited to, the ability to maintain favorable supplier arrangements and relationships, changes in general economic conditions, the growth rate of the market demand for the Companys products and services, competitive product, service and pricing pressures, including internet related initiatives, changes in financial markets, including particularly the capital and credit markets, impairment of financial institutions with which we do business, the effectiveness of the Companys 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 in the Companys Annual Report on Form 10-K for 2010 and from time to time in the Companys subsequent filings with the SEC.
Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent Forms 10-K, 10-Q, Form 8-K and other reports to the SEC.
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 business products nationwide in the U.S. and Canada. The Electrical/Electronic Group, EIS, Inc., distributes electrical and electronic components throughout the U.S., Canada and Mexico.
GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Dec. 31, | Year Ended Dec. 31, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Unaudited) | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Net sales |
$ | 3,014,135 | $ | 2,807,728 | $ | 12,458,877 | $ | 11,207,589 | ||||||||
Cost of goods sold |
2,121,535 | 1,990,600 | 8,852,837 | 7,954,645 | ||||||||||||
Gross profit |
892,600 | 817,128 | 3,606,040 | 3,252,944 | ||||||||||||
Operating expenses: |
||||||||||||||||
Selling, administrative & other expenses |
660,428 | 608,832 | 2,626,298 | 2,401,829 | ||||||||||||
Depreciation and amortization |
21,997 | 21,910 | 88,936 | 89,332 | ||||||||||||
682,425 | 630,742 | 2,715,234 | 2,491,161 | |||||||||||||
Income before income taxes |
210,175 | 186,386 | 890,806 | 761,783 | ||||||||||||
Income taxes |
75,218 | 67,736 | 325,690 | 286,272 | ||||||||||||
Net income |
$ | 134,957 | $ | 118,650 | $ | 565,116 | $ | 475,511 | ||||||||
Basic net income per common share |
$ | .87 | $ | .75 | $ | 3.61 | $ | 3.01 | ||||||||
Diluted net income per common share |
$ | .86 | $ | .75 | $ | 3.58 | $ | 3.00 | ||||||||
Weighted average common shares outstanding |
155,567 | 157,543 | 156,656 | 158,032 | ||||||||||||
Dilutive effect of stock options and |
||||||||||||||||
non-vested restricted stock awards |
1,095 | 775 | 1,004 | 429 | ||||||||||||
Weighted average common shares outstanding |
||||||||||||||||
assuming dilution |
156,662 | 158,318 | 157,660 | 158,461 | ||||||||||||
GENUINE PARTS COMPANY and SUBSIDIARIES
SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS
Three Months Ended Dec. 31, | Year Ended Dec. 31, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Unaudited) | ||||||||||||||||
(in thousands) | ||||||||||||||||
Net sales: |
||||||||||||||||
Automotive |
$ | 1,460,152 | $ | 1,376,734 | $ | 6,061,424 | $ | 5,608,101 | ||||||||
Industrial |
1,032,719 | 915,166 | 4,173,574 | 3,521,863 | ||||||||||||
Office Products |
391,403 | 394,979 | 1,689,368 | 1,641,963 | ||||||||||||
Electrical/Electronic Materials |
137,601 | 125,603 | 557,537 | 449,770 | ||||||||||||
Other (1) |
(7,740 | ) | (4,754 | ) | (23,026 | ) | (14,108 | ) | ||||||||
Total net sales |
$ | 3,014,135 | $ | 2,807,728 | $ | 12,458,877 | $ | 11,207,589 | ||||||||
Operating profit: |
||||||||||||||||
Automotive |
$ | 89,879 | $ | 82,123 | $ | 467,806 | $ | 421,109 | ||||||||
Industrial |
89,139 | 73,796 | 337,628 | 255,616 | ||||||||||||
Office Products |
38,149 | 38,076 | 134,124 | 131,746 | ||||||||||||
Electrical/Electronic Materials |
10,283 | 8,754 | 40,663 | 30,910 | ||||||||||||
Total operating profit |
227,450 | 202,749 | 980,221 | 839,381 | ||||||||||||
Interest expense, net |
(5,628 | ) | (6,610 | ) | (24,608 | ) | (26,598 | ) | ||||||||
Other, net |
(11,647 | ) | (9,753 | ) | (64,807 | ) | (51,000 | ) | ||||||||
Income before income taxes |
$ | 210,175 | $ | 186,386 | $ | 890,806 | $ | 761,783 | ||||||||
Capital expenditures |
$ | 39,537 | $ | 26,448 | $ | 103,469 | $ | 85,379 | ||||||||
Depreciation and amortization |
$ | 21,997 | $ | 21,910 | $ | 88,936 | $ | 89,332 | ||||||||
(1) Represents the net effect of discounts, incentives and freight billed reported as a component of net sales.
GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Dec. 31, | Dec. 31, | |||||||
2011 | 2010 | |||||||
(in thousands) | ||||||||
ASSETS |
||||||||
CURRENT ASSETS |
||||||||
Cash and cash equivalents |
$ | 525,054 | $ | 529,968 | ||||
Trade accounts receivable, net |
1,461,011 | 1,364,406 | ||||||
Merchandise inventories, net |
2,261,997 | 2,224,717 | ||||||
Prepaid expenses and other current assets |
328,534 | 295,796 | ||||||
TOTAL CURRENT ASSETS |
4,576,596 | 4,414,887 | ||||||
Goodwill and other intangible assets, less accumulated amortization |
279,775 | 209,548 | ||||||
Deferred tax asset |
250,906 | 157,392 | ||||||
Other assets |
272,110 | 199,087 | ||||||
Net property, plant and equipment |
500,204 | 484,130 | ||||||
TOTAL ASSETS |
$ | 5,879,591 | $ | 5,465,044 | ||||
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LIABILITIES AND EQUITY |
||||||||
CURRENT LIABILITIES |
||||||||
Trade accounts payable |
$ | 1,440,762 | $ | 1,374,930 | ||||
Current portion of debt |
| 250,000 | ||||||
Income taxes payable |
35,267 | 23,145 | ||||||
Dividends payable |
70,021 | 64,600 | ||||||
Other current liabilities |
266,023 | 259,139 | ||||||
TOTAL CURRENT LIABILITIES |
1,812,073 | 1,971,814 | ||||||
Long-term debt |
500,000 | 250,000 | ||||||
Retirement and other post-retirement benefit liabilities |
493,721 | 258,807 | ||||||
Other long-term liabilities |
280,978 | 181,709 | ||||||
Common stock |
155,651 | 157,636 | ||||||
Retained earnings and other |
3,109,622 | 2,934,535 | ||||||
Accumulated other comprehensive loss |
(482,038 | ) | (298,352 | ) | ||||
TOTAL PARENT EQUITY |
2,783,235 | 2,793,819 | ||||||
Noncontrolling interests in subsidiaries |
9,584 | 8,895 | ||||||
TOTAL EQUITY |
2,792,819 | 2,802,714 | ||||||
TOTAL LIABILITIES AND EQUITY |
$ | 5,879,591 | $ | 5,465,044 | ||||
GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended Dec. 31, | ||||||||
2011 | 2010 | |||||||
(in thousands) | ||||||||
OPERATING ACTIVITIES: |
||||||||
Net income |
$ | 565,116 | $ | 475,511 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
88,936 | 89,332 | ||||||
Share-based compensation |
7,547 | 7,016 | ||||||
Excess tax benefits from share-based compensation |
(5,356 | ) | (3,251 | ) | ||||
Other |
(5,349 | ) | 10,309 | |||||
Changes in operating assets and liabilities |
(25,967 | ) | 99,746 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
624,927 | 678,663 | ||||||
INVESTING ACTIVITIES: |
||||||||
Purchases of property, plant and equipment |
(103,469 | ) | (85,379 | ) | ||||
Acquisitions and other |
(128,028 | ) | (86,969 | ) | ||||
NET CASH USED IN INVESTING ACTIVITIES |
(231,497 | ) | (172,348 | ) | ||||
FINANCING ACTIVITIES: |
||||||||
Proceeds from debt |
250,000 | | ||||||
Payments on debt |
(250,000 | ) | | |||||
Stock options exercised |
(1,049 | ) | 9,085 | |||||
Excess tax benefits from share-based compensation |
5,356 | 3,251 | ||||||
Dividends paid |
(276,369 | ) | (257,898 | ) | ||||
Purchase of stock |
(122,078 | ) | (75,007 | ) | ||||
NET CASH USED IN FINANCING ACTIVITIES |
(394,140 | ) | (320,569 | ) | ||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH |
(4,204 | ) | 7,419 | |||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |
(4,914 | ) | 193,165 | |||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR |
529,968 | 336,803 | ||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR |
$ | 525,054 | $ | 529,968 | ||||
FOR IMMEDIATE RELEASE
Contacts: Jerry W. Nix, Vice Chairman and CFO (770) 612-2048
Sidney G. Jones, Vice President-Investor Relations (770) 818-4628
GENUINE PARTS COMPANY
MARKS THE 56th CONSECUTIVE YEAR OF INCREASED DIVIDENDS
WITH A 10% INCREASE AND ANNOUNCES OFFICER CHANGES
Atlanta, Georgia, February 21, 2012 Genuine Parts Company (NYSE: GPC) announced today a 10% increase in the regular quarterly cash dividend for 2012. The Board of Directors of the Company, at its February 20, 2012 board meeting, increased the cash dividend payable to an annual rate of $1.98 per share compared with the previous dividend of $1.80 per share. The quarterly cash dividend of forty-nine and one-half cents ($.495) per share is payable April 2, 2012 to shareholders of record March 9, 2012. GPC has paid a cash dividend every year since going public in 1948, and 2012 marks the 56th consecutive year of increased dividends paid to shareholders.
Genuine Parts Company also announced today that its Board of Directors elected Treg S. Brown to the position of Senior Vice President Planning and Acquisitions. In addition, the Board approved Lee A. Maher, Executive Vice President of the U.S. Automotive Parts Group, to assume the additional title of Chief Operating Officer of the U.S. Automotive Parts Group.
Tom Gallagher, Chairman and Chief Executive Officer of Genuine Parts Company, stated, Both Treg and Lee have made significant contributions to the Company over their careers and are well deserving of these promotions. Treg has been instrumental in leading our acquisition initiatives during his 17 years with the Company and we look forward to his continued contributions in this very important strategic area for us. Lee has held a variety of important automotive positions in his 35 years with the Company and, as Executive Vice President for the last two years, has been a key member of the executive management team for the Automotive Parts Group. Lee is well qualified for his expanded role and he will continue to report directly to Paul Donahue, President of the Company.
Genuine Parts Company plans to release Fourth Quarter and Year-End Earnings later today. Management will also conduct a conference call at 11:00 a.m. Eastern time. You are invited to join the call, which will be hosted by Chairman and CEO Tom Gallagher and Vice Chairman and CFO Jerry Nix. The public may access the call on the Companys website, www.genpt.com, by clicking Investor Services, or by dialing 877-331-5106. The conference ID is 46254235. If you are unable to participate during the call, a replay of the call will be available on the Companys website or toll-free at 855-859-2056, ID 46254235, two hours after the completion of the conference call until 12:00 a.m. Eastern time on March 6, 2012.
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 business products nationwide in the U.S. and in Canada. The Electrical/Electronic Group, EIS, Inc., distributes electrical and electronic components throughout the U.S., Canada and Mexico.