Genuine Parts Company Reports Fourth Quarter And Full Year Results For 2012 - 4th Quarter Sales up 3.5% and EPS up 20% - - Record Sales and Earnings for 2012 - PR Newswire ATLANTA, Feb. 19, 2013 ATLANTA, Feb. 19, 2013 /PRNewswire/ --Genuine Parts Company (NYSE: GPC) reports fourth quarter results and record sales and earnings for the year ended December 31, 2012. (Logo: http://photos.prnewswire.com/prnh/20081002/CLTH108LOGO ) Tom Gallagher, Chairman and Chief Executive Officer, announced today that sales in 2012 were $13.0 billion, up 4.5% compared to 2011. Net income for the year was $648 million, an increase of 15% compared to $565 million in 2011. Earnings per share on a diluted basis were $4.14, up 16% compared to $3.58 in 2011. In December 2012 the Company's pension plan was amended to freeze future benefit accruals for all participants as of December 31, 2013. In connection with this amendment, the Company recorded a one-time noncash curtailment gain of $23.5 million, which is included in our earnings results for the quarter and year. Mr. Gallagher stated, "The record level of earnings achieved in 2012 reflects the third consecutive year of double-digit earnings growth for the Company. We further strengthened our financial condition with increased net income, an expanded operating margin and a continued emphasis on effectively managing the balance sheet. The progress in these areas produced record cash from operations for the year." Mr. Gallagher added, "Our total sales increase for the year was driven by respectable sales growth in three of our four businesses. The Automotive Group reported a 4% sales increase, led by solid progress in NAPA AutoCare and Major Accounts, our two primary commercial initiatives, combined with the incremental volume from the Quaker City acquisition. Motion Industries, our Industrial Group, increased sales by 7% for the year, driven by the combination of effective growth initiatives and a generally healthy industrial economy, although we did observe slower levels of manufacturing growth over the latter part of 2012. EIS, our Electrical/Electronic Group, was up 5% for the year. S.P. Richards, our Office Products Group, reported flat revenues in 2012 relative to 2011, as the industry-wide slowdown in office products consumption continued to pressure this segment." Fourth Quarter 2012 Sales increased 3.5% to $3.1 billion in the fourth quarter ended December 31, 2012, compared to sales of $3.0 billion for the same period in 2011. Net income in the fourth quarter was $160 million, an increase of 19% compared to $135 million in 2011. Diluted earnings per share in the fourth quarter were $1.03, up 20% compared to 86 cents per share for the fourth quarter of 2011. In reviewing the quarter, Mr. Gallagher commented, "Revenue growth in 2012 proved to be more challenging as the year progressed, and is reflective of slowing industry trends across our businesses. However, despite these industry trends, we were able to report Automotive sales up 5% for the fourth quarter and Industrial Group sales were up 2%. The Electrical Group sales were down 2% and the Office Products Group produced its strongest quarterly sales results for the year, up 3% over the fourth quarter in 2011." Mr. Gallagher concluded, "As we turn our focus to the new year, we remain committed to our core objectives of growing sales and earnings, showing continued operating margin improvement, generating solid cash flows and maintaining a strong balance sheet. Further progress in each of these important areas will ensure another successful year in 2013." 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 Company's website, www.genpt.com, by clicking "Investor Services", or by dialing 877-331-5106, conference ID 92943087. A replay will also be available on the Company's website or at 855-859-2056, conference ID 92943087, two hours after the completion of the call until 12:00 a.m. Eastern time on March 6, 2013. 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 Dec. 31, Year Ended Dec. 31, 2012 2011 2012 2011 (in thousands, except per share data) Net sales $3,118,966 $3,014,135 $13,013,868 $12,458,877 Cost of goods sold 2,208,308 2,121,535 9,235,777 8,852,837 Gross profit 910,658 892,600 3,778,091 3,606,040 Operating expenses: Selling, administrative & 633,678 660,428 2,660,776 2,626,298 other expenses Depreciation and 25,054 21,997 98,383 88,936 amortization 658,732 682,425 2,759,159 2,715,234 Income before income taxes 251,926 210,175 1,018,932 890,806 Income taxes 91,701 75,218 370,891 325,690 Net income $160,225 $134,957 $648,041 $565,116 Basic net income per $1.03 $ .87 $4.17 $3.61 common share Diluted net income per $1.03 $ .86 $4.14 $3.58 common share Weighted average common 154,952 155,567 155,413 156,656 shares outstanding Dilutive effect of stock options and non-vested restricted 943 1,095 1,007 1,004 stock awards Weighted average common shares outstanding – assuming dilution 155,895 156,662 156,420 157,660 GENUINE PARTS COMPANY and SUBSIDIARIES SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS Three Months Ended Dec. Year Ended Dec. 31, 31, 2012 2011 2012 2011 (in thousands) Net sales: Automotive $1,531,624 $1,460,152 $6,320,882 $6,061,424 Industrial 1,054,773 1,032,719 4,453,574 4,173,574 Office Products 402,942 391,403 1,686,690 1,689,368 Electrical/Electronic 135,387 137,601 582,820 557,537 Materials Other (1) (5,760) (7,740) (30,098) (23,026) Total net sales $3,118,966 $3,014,135 $13,013,868 $12,458,877 Operating profit: Automotive $122,491 $89,879 $540,678 $467,806 Industrial 78,117 89,139 352,119 337,628 Office Products 36,373 38,149 134,441 134,124 Electrical/Electronic 12,456 10,283 50,910 40,663 Materials Total operating profit 249,437 227,450 1,078,148 980,221 Interest expense, net (4,914) (5,628) (19,619) (24,608) Intangible amortization (3,811) (1,942) (12,991) (6,774) Other, net 11,214 (9,705) (26,606) (58,033) Income before $251,926 $210,175 $1,018,932 $890,806 income taxes Capital expenditures $30,360 $39,537 $101,987 $103,469 Depreciation and amortization $25,054 $21,997 $98,383 $88,936 (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, 2012 2011 (in thousands) ASSETS CURRENT ASSETS Cash and cash equivalents $ 403,095 $ 525,054 Trade accounts receivable, net 1,490,028 1,461,011 Merchandise inventories, net 2,602,560 2,440,111 Prepaid expenses and other current assets 324,448 328,534 TOTAL CURRENT ASSETS 4,820,131 4,754,710 Goodwill and other intangible assets, less accumulated 497,839 279,775 amortization Deferred tax asset 279,463 261,608 Other assets 643,263 406,477 Net property, plant and equipment 566,365 500,204 TOTAL ASSETS $6,807,061 $6,202,774 LIABILITIES AND EQUITY CURRENT LIABILITIES Trade accounts payable $1,681,900 $1,440,762 Current portion of debt 250,000 - Income taxes payable 4,354 21,081 Dividends payable 76,641 70,021 Other current liabilities 474,743 480,684 TOTAL CURRENT LIABILITIES 2,487,638 2,012,548 Long-term debt 250,000 500,000 Retirement and other post-retirement benefit 572,988 493,721 liabilities Other long-term liabilities 488,256 442,914 Common stock 154,841 155,651 Retained earnings and other 3,344,538 3,070,394 Accumulated other comprehensive loss (501,492) (482,038) TOTAL PARENT EQUITY 2,997,887 2,744,007 Noncontrolling interests in subsidiaries 10,292 9,584 TOTAL EQUITY 3,008,179 2,753,591 TOTAL LIABILITIES AND EQUITY $6,807,061 $6,202,774 GENUINE PARTS COMPANY and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended Dec. 31, 2012 2011 (in thousands) OPERATING ACTIVITIES: Net income $648,041 $565,116 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 98,383 88,936 Share-based compensation 10,747 7,547 Excess tax benefits from share-based compensation (11,018) (5,356) Other 10,808 (5,349) Changes in operating assets and liabilities 149,477 (25,967) NET CASH PROVIDED BY OPERATING ACTIVITIES 906,438 624,927 INVESTING ACTIVITIES: Purchases of property, plant and equipment (101,987) (103,469) Acquisitions and other (549,880) (128,028) NET CASH USED IN INVESTING ACTIVITIES (651,867) (231,497) FINANCING ACTIVITIES: Proceeds from debt 750,000 250,000 Payments on debt (750,000) (250,000) Stock options exercised (7,043) (1,049) Excess tax benefits from share-based compensation 11,018 5,356 Dividends paid (300,983) (276,369) Purchase of stock (81,826) (122,078) NET CASH USED IN FINANCING ACTIVITIES (378,834) (394,140) EFFECT OF EXCHANGE RATE CHANGES ON CASH 2,304 (4,204) NET DECREASE IN CASH AND CASH EQUIVALENTS (121,959) (4,914) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 525,054 529,968 CASH AND CASH EQUIVALENTS AT END OF YEAR $403,095 $525,054 SOURCE Genuine Parts Company Website: http://www.genpt.com Contact: Jerry W. Nix, Vice Chairman and CFO - +1-770-612-2048; Carol B. Yancey, Executive Vice President - Finance - +1-770-612-2044; Sidney G. Jones, Vice President - Investor Relations - +1-770-818-4628
Genuine Parts Company Reports Fourth Quarter And Full Year Results For 2012
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