Genuine Parts Company Reports Record Results for 2000
ATLANTA--Feb. 20, 2001--| -- | 51 Consecutive Years of Increased Sales |
| -- | 40 Consecutive Years of Increased Earnings |
| -- | 45 Consecutive Years of Increased Dividends |
Genuine Parts Company completed its 73rd year of operations with record sales and earnings for the year ended December 31, 2000.
Sales in 2000 were $8.37 billion, a 5% increase over 1999 sales of $7.95 billion. Net income increased 2% to $385 million, compared with $378 million recorded in the prior year. 2000 earnings reached $2.20 per share versus $2.11 per share in 1999, an increase of 4%.
Larry Prince, Chairman of the Board of Directors, said: "We are pleased to report that each of our four segments contributed to our growth in 2000. The Automotive Parts Group improved sales by 2%, the Motion Industries Industrial Group by 9% and the S. P. Richards Office Products Group increased 10%. The EIS Electrical/Electronic Materials Group increased their sales by 7%."
Fourth Quarter 2000
Sales increased 3% to $2.02 billion in the fourth quarter ended December 31, 2000, as compared to $1.97 billion for the same period in 1999. Net income in the fourth quarter of 2000 was $105.3 million versus $108.4 million in the fourth quarter of 1999. Earnings per share in the fourth quarter were even with the prior year at 61 cents per share.
Dividends Increased 45 Consecutive Years
Genuine Parts Company also announced an increase of 4% in the regular quarterly cash dividend for 2000. On February 19, 2001, the Board of Directors increased the cash dividend payable to an annual rate of $1.14 per share compared with the previous dividend of $1.10 per share. The quarterly cash dividend of 28 1/2 cents per share is payable April 2, 2001 to shareholders of record March 9, 2001.
Mr. Prince stated, "We are pleased to report that cash dividends to shareholders were increased for the 45th consecutive year."
Mr. Prince continued: "The Company's financial condition remains sound and our Balance Sheet continues to be strong. For the year, capital expenditures amounted to $71 million, working capital increased 3%, and current assets were 3.1 times current liabilities. We remain active in our share repurchase program and purchased approximately 5.5 million shares in 2000."
2001 Outlook
"We continue to feel fortunate that we are in four separate businesses and we have a high level of balance and diversity to lead us into 2001. We remain committed to our sales and profit growth and expect 2001 to be another record year of increased sales and earnings," concluded Mr. Prince.
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 by dialing 800-482-2225, conference ID 915176. A replay will also be available at 800-625-5288 through February 27, 2001.
Forward-Looking Statements
Various statements in this release may constitute forward-looking statements. Actual results may differ materially from those indicated as a result of various important factors. Such factors include, but are not limited to, changes in general economic conditions, the growth rate of the market for the Company's products and services, the ability to maintain favorable supplier arrangements and relationships, competitive product and pricing pressures, the effectiveness of the Company's 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 from time to time in the Company's filings with the Securities and Exchange Commission.
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 product nationwide in the U.S. and in Canada. The Electrical/Electronic Group, EIS, Inc., distributes electrical and electronic components throughout the U.S. and Mexico.
GENUINE PARTS COMPANY and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (1)
For the Quarter Ended For the Year Ended
December 31 December 31
----------- -----------
2000 1999 2000 1999
---- ---- ---- ----
(in thousands, except per share data)
Net Sales $2,018,916 $1,965,551 $8,369,857 $7,950,822
Cost of goods sold 1,338,939 1,285,326 5,764,360 5,436,056
--------- --------- --------- ---------
679,977 680,225 2,605,497 2,514,766
Selling, administrative
& other expenses 500,177 497,972 1,958,747 1,886,699
--------- --------- --------- ---------
Income before income
taxes 179,800 182,253 646,750 628,067
Income taxes 74,528 73,903 261,427 250,445
--------- --------- --------- ---------
NET INCOME $ 105,272 $ 108,350 $ 385,323 $ 377,622
========= ========= ========= =========
Basic and diluted net
income per common
share $ .61 $ .61 $ 2.20 $ 2.11
========= ========= ========= =========
Average common shares
outstanding 172,762 177,714 175,009 178,746
Dilutive effect of stock options and non-vested
restricted stock awards 263 345 318 492
--------- --------- --------- ---------
Average common shares
outstanding - Assuming
dilution 173,025 178,059 175,327 179,238
========= ========= ========= =========
Note (1): The financial statements for 1999 have been reclassified
in connection with the Company's fourth quarter 2000 adoption of new
accounting pronouncements related to the income statement
classification of freight billed to customers and other discounts and
incentives. These reclassifications had no effect on net income.
GENUINE PARTS COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS
Year ended December 31,
2000 1999
-------------------------
(In thousands)
Net sales:
Automotive $4,163,814 $4,084,775
Industrial 2,342,686 2,156,134
Office Products 1,336,500 1,218,367
Electrical/Electronic Materials 557,866 522,411
Other (1) (31,009) (30,865)
--------- ---------
Total net sales $8,369,857 $7,950,822
========= =========
Operating profit (2):
Automotive $ 381,250 $ 383,830
Industrial 206,193 186,203
Office Products 134,343 118,345
Electrical/Electronic Materials 28,010 23,343
--------- ---------
Total operating profit 749,796 711,721
Interest expense (63,496) (41,487)
Other, net (39,550) (42,167)
--------- ---------
Income before income taxes $ 646,750 $ 628,067
========= =========
Capital expenditures $ 71,129 $ 88,283
========= =========
Depreciation and amortization $ 92,303 $ 89,967
========= =========
EBITDA $ 802,549 $ 759,521
========= =========
Current ratio 3.1 3.2
========= =========
Return on beginning equity 17.7% 18.4%
========= =========
(1) Represents the net effect of discounts, incentives and freight
billed reported as a component of net sales based on accounting
pronouncements adopted in fourth quarter 2000.
(2) In connection with a 2000 management reporting change, certain
corporate expenses were reclassified to the Automotive segment.
GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
Dec. 31, Dec. 31,
2000 1999
---------------------------------
(in thousands)
CURRENT ASSETS
Cash and cash equivalents $ 27,738 $ 45,735
Accounts receivable 1,031,662 1,006,663
Inventories 1,864,334 1,771,789
Prepaid expenses and other
current assets 95,747 71,016
--------- ---------
TOTAL CURRENT ASSETS 3,019,481 2,895,203
Goodwill 451,435 440,299
Other assets 275,938 180,627
Total property, plant and
equipment, net 395,260 413,543
--------- ---------
TOTAL ASSETS $4,142,114 $3,929,672
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 635,499 $ 581,010
Current portion of long-term
debt and other borrowings 151,452 133,056
Income taxes 37,043 28,032
Dividends payable 47,494 45,355
Other current liabilities 116,825 128,559
--------- --------
TOTAL CURRENT LIABILITIES 988,313 916,012
Long-term debt 770,581 702,417
Deferred income taxes 77,814 87,466
Minority interests in subsidiaries 44,600 46,260
Common stock 172,390 177,276
Retained earnings and other 2,088,416 2,000,241
--------- ---------
SHAREHOLDERS' EQUITY 2,260,806 2,177,517
--------- ---------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $4,142,114 $3,929,672
========= =========