Q3 2009 Earning Report of Genuine Parts Co.

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Q3 2009 Earning Report of Genuine Parts Co.

  1. 1. FORM 8-K GENUINE PARTS CO - gpc Filed: October 16, 2009 (period: October 16, 2009) Report of unscheduled material events or corporate changes.
  2. 2. Table of Contents 8-K - LIVE FILING Item 2.02 Results of Operations and Financial Condition. Item 9.01 Financial Statements and Exhibits. SIGNATURES Exhibit Index EX-99.1 (EX-99.1)
  3. 3. 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 16, 2009 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) 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)) Source: GENUINE PARTS CO, 8-K, October 16, 2009
  4. 4. Top of the Form Item 2.02 Results of Operations and Financial Condition. On October 16, 2009, Genuine Parts Company issued a press release announcing its results of operations for the third quarter and nine months ended September 30, 2009. 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 16, 2009 Source: GENUINE PARTS CO, 8-K, October 16, 2009
  5. 5. Top of the Form 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 16, 2009 By: Jerry W. Nix Name: Jerry W. Nix Title: Vice Chairman and CFO Source: GENUINE PARTS CO, 8-K, October 16, 2009
  6. 6. Top of the Form Exhibit Index Exhibit No. Description 99.1 Press Release dated October 16, 2009 Source: GENUINE PARTS CO, 8-K, October 16, 2009
  7. 7. 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 SALES AND EARNINGS FOR THE THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2009 Atlanta, Georgia, October 16, 2009 — Genuine Parts Company (NYSE: GPC) reported sales and earnings for the third quarter and nine months ended September 30, 2009. Thomas C. Gallagher, Chairman, President and Chief Executive Officer, announced today that sales totaling $2.6 billion were down 10% compared to the third quarter of 2008. Net income for the quarter was $107.6 million, a decrease of 18% from $131.0 million recorded in the same period of the previous year. Earnings per share on a diluted basis were 67 cents, down 17% compared to 81 cents for the third quarter last year. For the nine months ended September 30, 2009, sales totaled $7.6 billion, down 11% compared to the same period in 2008. Net income for the nine months was $300.4 million, a decrease of 23% from $387.6 million recorded in the previous year. Earnings per share on a diluted basis were $1.88, down 20% compared to $2.36 for the same period last year. In review of the quarter, Mr. Gallagher commented, “The Automotive Group reported a 1% decrease in sales for the quarter, which is improved from the 7% and 5% sales declines reported for this group in the first and second quarters, respectively. S.P. Richards, our Office Products Group, was down 5% and this compares to a 7% sales decrease in the first quarter and a 6% decrease last quarter. Sales for the Industrial and Electrical Groups were down significantly, but they were consistent with their results for the second quarter, which we believe is a reflection of stabilizing conditions in the manufacturing segment of the economy. Motion Industries, our Industrial Group, had a 22% sales decrease in the quarter, and EIS, our Electrical Group, had a 30% decrease.” Mr. Gallagher added, “The balance sheet at September 30, 2009 remains in excellent condition and we continue to strengthen our financial position through working capital and asset management initiatives, cost reduction efforts and steady and strong cash flows. The Company’s sound cash position provides us with significant financial flexibility and our priorities for cash in several key areas serve to maximize the total return to shareholders.” Mr. Gallagher concluded, “2009 has proven to be a challenging year for GPC. However, we continue to have confidence in the long-term positive fundamentals for all four of our business segments. Our primary focus currently is to keep the balance sheet strong and to position each of our businesses to show improved sales and earnings results as the economy begins to improve.” 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 877-316-2549, conference ID 85294980. A replay will also be available on the Company’s website or at 800-642-1687, conference ID 85294980, two hours after the completion of the conference call until 12:00 a.m. Eastern time on October 31, 2009. Forward Looking Statements Some statements in this release, 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 our 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 Source: GENUINE PARTS CO, 8-K, October 16, 2009
  8. 8. maintain favorable supplier arrangements and relationships, changes in general economic conditions, the growth rate of the market for the Company’s products and services, competitive product, service and pricing pressures, including internet related initiatives, the effectiveness of the Company’s promotional, marketing and advertising programs, changes in financial markets, including particularly the capital and credit markets, 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 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 Form 10-Q, 10-K, 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. and Canada 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, 2009 2008 2009 2008 (Unaudited) (in thousands, except per share data) Net sales $2,606,757 $2,882,115 $7,586,298 $8,495,073 Cost of goods sold 1,841,511 2,033,110 5,343,996 5,974,372 765,246 849,005 2,242,302 2,520,701 Selling, administrative & other expenses 594,540 638,163 1,760,878 1,902,467 Income before income taxes 170,706 210,842 481,424 618,234 Income taxes 63,067 79,825 181,016 230,601 Net income $ 107,639 $ 131,017 $ 300,408 $ 387,633 Basic net income per common share $ .67 $ .81 $ 1.88 $ 2.37 Diluted net income per common share $ .67 $ .81 $ 1.88 $ 2.36 Weighted average common shares outstanding 159,541 161,603 159,500 163,324 Dilutive effect of stock options and Non-vested restricted stock awards 335 673 268 689 Weighted average common shares outstanding – assuming dilution 159,876 162,276 159,768 164,013 1 Source: GENUINE PARTS CO, 8-K, October 16, 2009
  9. 9. GENUINE PARTS COMPANY and SUBSIDIARIES SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS Three Months Ended Sept. 30, Nine Months Ended Sept. 30, 2009 2008 2009 2008 (Unaudited) (in thousands) Net sales: Automotive $1,381,578 $1,393,118 $3,960,743 $4,127,518 Industrial 711,471 907,015 2,149,200 2,686,297 Office Products 436,287 458,968 1,255,169 1,332,167 Electrical/Electronic Materials 89,364 126,827 256,106 363,712 Other (1) (11,943) (3,813) (34,920) (14,621) Total net sales $2,606,757 $2,882,115 $7,586,298 $8,495,073 Operating profit: Automotive $ 107,735 $ 111,730 $ 312,919 $ 317,888 Industrial 36,495 77,220 102,113 222,781 Office Products 26,692 33,426 99,081 114,721 Electrical/Electronic Materials 6,802 10,272 17,560 29,175 Total operating profit 177,724 232,648 531,673 684,565 Interest expense, net (6,662) (7,391) (20,510) (21,877) Other, net (356) (14,415) (29,739) (44,454) Income before income taxes $ 170,706 $ 210,842 $ 481,424 $ 618,234 Capital expenditures $ 12,405 $ 15,761 $ 49,360 $ 60,091 Depreciation and amortization $ 22,562 $ 21,768 $ 67,494 $ 66,469 (1) Represents the net effect of discounts, incentives and freight billed reported as a component of net sales. 2 Source: GENUINE PARTS CO, 8-K, October 16, 2009
  10. 10. GENUINE PARTS COMPANY and SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS Sept. 30, Sept. 30, 2009 2008 (Unaudited) (in thousands) ASSETS CURRENT ASSETS Cash and cash equivalents $ 363,133 $ 124,428 Trade accounts receivable, net 1,250,575 1,350,568 Merchandise inventories, net 2,188,133 2,318,215 Prepaid expenses and other current assets 232,450 279,932 TOTAL CURRENT ASSETS 4,034,291 4,073,143 Goodwill and other intangible assets, less accumulated amortization 171,573 147,940 Other assets 285,730 185,420 Net property, plant and equipment 485,647 412,755 TOTAL ASSETS $4,977,241 $4,819,258 LIABILITIES AND EQUITY CURRENT LIABILITIES Trade accounts payable $1,124,276 $1,070,513 Current portion of debt — 250,000 Income taxes payable 56,997 18,506 Dividends payable 63,819 63,003 Other current liabilities 199,419 223,634 TOTAL CURRENT LIABILITIES 1,444,511 1,625,656 Long-term debt 500,000 250,000 Other long-term liabilities 128,729 115,027 Retirement and other post-retirement benefit liabilities 289,659 91,031 Noncontrolling interests in subsidiaries 7,447 68,439 Common stock 159,552 160,557 Retained earnings and other 2,447,343 2,508,548 TOTAL EQUITY 2,614,342 2,737,544 TOTAL LIABILITIES AND EQUITY $4,977,241 $4,819,258 NOTE: Certain prior period amounts have been reclassified to conform to current year presentation. GENUINE PARTS COMPANY and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Ended Sept. 30, 2009 2008 (Unaudited) (in thousands) OPERATING ACTIVITIES: Net income $ 300,408 $ 387,633 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 67,494 66,469 Other 8,563 13,067 Changes in operating assets and liabilities 390,038 1,836 NET CASH PROVIDED BY OPERATING ACTIVITIES 766,503 469,005 INVESTING ACTIVITIES: Purchases of property, plant and equipment (49,360) (60,091) Acquisitions and other (123,047) (98,735) Source: GENUINE PARTS CO, 8-K, October 16, 2009
  11. 11. Purchase of properties under construction and lease agreement (72,811) — NET CASH USED IN INVESTING ACTIVITIES (245,218) (158,826) FINANCING ACTIVITIES: Stock options exercised 2,178 1,364 Excess tax benefits from share-based compensation 63 313 Dividends paid (189,739) (188,805) Changes in cash overdraft position (52,000) — Purchase of stock (159) (228,863) NET CASH USED IN FINANCING ACTIVITIES (239,657) (415,991) EFFECT OF EXCHANGE RATE CHANGES ON CASH 13,728 (1,597) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 295,356 (107,409) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 67,777 231,837 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 363,133 $ 124,428 3 _______________________________________________ Created by Morningstar Document Research documentresearch.morningstar.com Source: GENUINE PARTS CO, 8-K, October 16, 2009

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