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): | October 18, 2012 |
Genuine Parts Company
__________________________________________
(Exact name of registrant as specified in its charter)
| Georgia | 001-05690 | 58-0254510 |
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_____________________ (State or other jurisdiction |
_____________ (Commission |
______________ (I.R.S. Employer |
| of incorporation) | File Number) | Identification No.) |
| 2999 Circle 75 Pkwy, Atlanta, Georgia | 30339 | |
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_________________________________ (Address of principal executive offices) |
___________ (Zip Code) |
| Registrant’s 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 October 18, 2012, Genuine Parts Company issued a press release announcing its results of operations for the thrid quarter and nine months ended September 30, 2012. A copy of the press release is furnished with this Current Report on Form 8-K as exhibit 99.1.
The information, including the exhibits attached hereto contained in 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 and Item 9.01 of 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.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release dated October 18, 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 | ||||
| October 18, 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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99.1
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Press Release dated October 18, 2012 |
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
REPORTS RECORD SALES AND EARNINGS
FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2012
- Sales Up 3% and EPS Up 14% -
Atlanta, Georgia, October 18, 2012 — Genuine Parts Company (NYSE: GPC) reported record sales and earnings for the third quarter and nine months ended September 30, 2012. Thomas C. Gallagher, Chairman and Chief Executive Officer, announced today that sales totaling $3.4 billion were up 3% compared to the third quarter of 2011. Net income for the quarter was $172.9 million, an increase of 14% from $151.8 million recorded in the same period of the previous year. Earnings per share on a diluted basis were $1.11, up 14% compared to 97 cents for the third quarter last year.
For the nine months ended September 30, 2012, sales totaled $9.9 billion, up 5% compared to the same period in 2011. Net income for the nine months was $487.8 million, an increase of 13% from $430.2 million recorded in the previous year. Earnings per share on a diluted basis were $3.11, up 14% compared to $2.72 for the same period last year.
In review of the quarter, Mr. Gallagher commented, “We are pleased to report another quarter of record sales and earnings for Genuine Parts Company. After adjusting our sales results for one less selling day in the current quarter, total sales increased 4% from the third quarter of 2011. The Automotive Group reported a 2.5% sales increase and adjusted for the selling days, automotive sales were up 4%. Motion Industries, our Industrial Group, posted a 4.5% sales increase for the quarter and this reflects a 6% increase in sales on a daily basis. EIS, our Electrical Group, reported the strongest growth among our business segments, up 5%, or a 7% comparable sales increase. S. P. Richards, our Office Products Group, showed a 1% sales decrease for the quarter, which translates to a 1% increase in sales on a daily basis.”
Mr. Gallagher added, “Our balance sheet as of September 30, 2012, remains in excellent condition and we continue to generate strong cash flows from increased earnings and working capital, asset management and cost reduction initiatives. Our cash position offers us tremendous opportunities, and we continue to use our cash in several key areas to maximize the total return to shareholders. Our priorities for cash include the dividends paid to shareholders, the ongoing reinvestment back into each of our four businesses, strategic acquisitions and share repurchases.”Mr. Gallagher concluded, “We are encouraged by the record level of sales and earnings achieved for the quarter. While disappointed with the slower sales growth over the past two quarters, we are performing in-line or better than the current growth in our respective industries. The Company is well positioned to show continued growth in our businesses and we remain optimistic in our outlook for the fourth quarter of 2012 and beyond. Our management team remains committed to sustaining good revenue growth, further improving operating margins, generating solid cash flows and maintaining a strong balance sheet.”
Conference Call
Genuine Parts Company will hold a conference call today at 11:00 a.m. Eastern time to discuss the results of the quarter and the future outlook. Interested parties may listen to the call on the Company’s website, www.genpt.com, by clicking “Investor Services”, or by dialing toll-free at 877-331-5106, conference ID 94840651. A replay will also be available on the Company’s website or by dialing toll-free at 855-859-2056, conference ID 94840651, after the completion of the conference call until 12:00 a.m. Eastern time on November 2, 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 may include, among other things, slowing demand for the Company’s products, changes in general economic conditions, including, unemployment, inflation or deflation, high energy costs, uncertain credit markets and other macro-economic conditions, the ability to maintain favorable vendor arrangements and relationships, disruptions in our vendors’ operations, competitive product, service and pricing pressures, the Company’s ability to successfully implement its business initiatives in each of its four business segments, the Company’s ability to successfully integrate its acquired businesses, the uncertainties and costs of litigation, as well as other risks and uncertainties discussed in the Company’s Annual Report on Form 10-K for 2011 and from time to time in the Company’s 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, 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 Sept. 30, | Nine Months Ended Sept. 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
Net sales |
$ | 3,375,778 | $ | 3,285,560 | $ | 9,894,902 | $ | 9,444,742 | ||||||||
Cost of goods sold |
2,399,742 | 2,337,028 | 7,027,469 | 6,731,302 | ||||||||||||
Gross profit |
976,036 | 948,532 | 2,867,433 | 2,713,440 | ||||||||||||
Operating expenses: |
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Selling, administrative & other expenses |
678,894 | 679,967 | 2,027,098 | 1,965,871 | ||||||||||||
Depreciation and amortization |
25,609 | 21,465 | 73,329 | 66,938 | ||||||||||||
| 704,503 | 701,432 | 2,100,427 | 2,032,809 | |||||||||||||
Income before income taxes |
271,533 | 247,100 | 767,006 | 680,631 | ||||||||||||
Income taxes |
98,590 | 95,268 | 279,190 | 250,472 | ||||||||||||
Net income |
$ | 172,943 | $ | 151,832 | $ | 487,816 | $ | 430,159 | ||||||||
Basic net income per common share |
$ | 1.11 | $ | .97 | $ | 3.14 | $ | 2.74 | ||||||||
Diluted net income per common share |
$ | 1.11 | $ | .97 | $ | 3.11 | $ | 2.72 | ||||||||
Weighted average common shares outstanding |
155,147 | 156,206 | 155,568 | 157,024 | ||||||||||||
Dilutive effect of stock options and |
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non-vested restricted stock awards |
988 | 942 | 1,038 | 965 | ||||||||||||
Weighted average common shares outstanding – |
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assuming dilution |
156,135 | 157,148 | 156,606 | 157,989 | ||||||||||||
GENUINE PARTS COMPANY and SUBSIDIARIES
SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS
| Three Months Ended Sept. 30, | Nine Months Ended Sept. 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| (in thousands) | ||||||||||||||||
Net sales: |
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Automotive |
$ | 1,650,857 | $ | 1,611,333 | $ | 4,789,258 | $ | 4,601,272 | ||||||||
Industrial |
1,138,854 | 1,089,826 | 3,398,801 | 3,140,855 | ||||||||||||
Office Products |
444,255 | 447,310 | 1,283,748 | 1,297,965 | ||||||||||||
Electrical/Electronic Materials |
150,877 | 143,342 | 447,433 | 419,936 | ||||||||||||
Other (1) |
(9,065 | ) | (6,251 | ) | (24,338 | ) | (15,286 | ) | ||||||||
Total net sales |
$ | 3,375,778 | $ | 3,285,560 | $ | 9,894,902 | $ | 9,444,742 | ||||||||
Operating profit: |
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Automotive |
$ | 150,648 | $ | 141,233 | $ | 418,187 | $ | 377,927 | ||||||||
Industrial |
94,621 | 97,191 | 274,002 | 248,489 | ||||||||||||
Office Products |
29,942 | 27,204 | 98,068 | 95,975 | ||||||||||||
Electrical/Electronic Materials |
13,555 | 11,138 | 38,454 | 30,380 | ||||||||||||
Total operating profit |
288,766 | 276,766 | 828,711 | 752,771 | ||||||||||||
Interest expense, net |
(4,971 | ) | (6,244 | ) | (14,705 | ) | (18,980 | ) | ||||||||
Other, net |
(12,262 | ) | (23,422 | ) | (47,000 | ) | (53,160 | ) | ||||||||
Income before income taxes |
$ | 271,533 | $ | 247,100 | $ | 767,006 | $ | 680,631 | ||||||||
Capital expenditures |
$ | 20,259 | $ | 22,184 | $ | 71,627 | $ | 63,932 | ||||||||
Depreciation and amortization |
$ | 25,609 | $ | 21,465 | $ | 73,329 | $ | 66,938 | ||||||||
(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
| Sept. 30, | Sept. 30, | |||||||
| 2012 | 2011 | |||||||
| (Unaudited) | ||||||||
| (in thousands) | ||||||||
ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
$ | 398,118 | $ | 534,801 | ||||
Trade accounts receivable, net |
1,606,297 | 1,531,046 | ||||||
Merchandise inventories, net |
2,351,321 | 2,250,309 | ||||||
Prepaid expenses and other current assets |
308,839 | 330,157 | ||||||
TOTAL CURRENT ASSETS |
4,664,575 | 4,646,313 | ||||||
Goodwill and other intangible assets, less accumulated
amortization |
504,192 | 277,924 | ||||||
Deferred tax asset |
232,845 | 153,319 | ||||||
Other assets |
483,370 | 227,615 | ||||||
Net property, plant and equipment |
560,900 | 479,547 | ||||||
TOTAL ASSETS |
$ | 6,445,882 | $ | 5,784,718 | ||||
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LIABILITIES AND EQUITY |
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CURRENT LIABILITIES |
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Trade accounts payable |
$ | 1,754,253 | $ | 1,587,326 | ||||
Current portion of debt |
— | 250,000 | ||||||
Income taxes payable |
26,682 | 44,812 | ||||||
Dividends payable |
76,814 | 70,134 | ||||||
Other current liabilities |
243,868 | 288,388 | ||||||
TOTAL CURRENT LIABILITIES |
2,101,617 | 2,240,660 | ||||||
Long-term debt |
500,000 | 250,000 | ||||||
Retirement and other post-retirement benefit liabilities |
476,108 | 212,876 | ||||||
Other long-term liabilities |
301,988 | 189,791 | ||||||
Common stock |
155,131 | 155,653 | ||||||
Retained earnings and other |
3,321,517 | 3,051,467 | ||||||
Accumulated other comprehensive loss |
(420,845 | ) | (325,392 | ) | ||||
TOTAL PARENT EQUITY |
3,055,803 | 2,881,728 | ||||||
Noncontrolling interests in subsidiaries |
10,366 | 9,663 | ||||||
TOTAL EQUITY |
3,066,169 | 2,891,391 | ||||||
TOTAL LIABILITIES AND EQUITY |
$ | 6,445,882 | $ | 5,784,718 | ||||
GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Nine Months Ended | ||||||||
| Sept. 30, | ||||||||
| 2012 | 2011 | |||||||
| (Unaudited) | ||||||||
| (in thousands) | ||||||||
OPERATING ACTIVITIES: |
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Net income |
$ | 487,816 | $ | 430,159 | ||||
Adjustments to reconcile net income to net cash
provided by operating activities: |
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Depreciation and amortization |
73,329 | 66,938 | ||||||
Share-based compensation |
8,098 | 5,835 | ||||||
Excess tax benefits from share-based compensation |
(9,239 | ) | (2,446 | ) | ||||
Other |
(1,011 | ) | (952 | ) | ||||
Changes in operating assets and liabilities |
205,827 | (2,126 | ) | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
764,820 | 497,408 | ||||||
INVESTING ACTIVITIES: |
||||||||
Purchases of property, plant and equipment |
(71,627 | ) | (63,932 | ) | ||||
Acquisitions and other |
(545,378 | ) | (105,129 | ) | ||||
NET CASH USED IN INVESTING ACTIVITIES |
(617,005 | ) | (169,061 | ) | ||||
FINANCING ACTIVITIES: |
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Proceeds from line of credit |
750,000 | — | ||||||
Payments on line of credit |
(750,000 | ) | — | |||||
Stock options exercised |
(4,008 | ) | 1,638 | |||||
Excess tax benefits from share-based compensation |
9,239 | 2,446 | ||||||
Dividends paid |
(224,170 | ) | (206,236 | ) | ||||
Purchase of stock |
(58,808 | ) | (113,359 | ) | ||||
NET CASH USED IN FINANCING ACTIVITIES |
(277,747 | ) | (315,511 | ) | ||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH |
2,996 | (8,003 | ) | |||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |
(126,936 | ) | 4,833 | |||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
525,054 | 529,968 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ | 398,118 | $ | 534,801 | ||||