Genuine Parts Company Reports Record First Quarter Results
ATLANTA--April 15, 2005--Genuine Parts Company reported record sales and earnings for the first quarter ended March 31, 2005. Thomas C. Gallagher, Chairman, President and Chief Executive Officer, announced today that sales totaling $2.3 billion were up 7% compared to the first quarter of 2004. Net income for the quarter was $106.6 million, an increase of 6% over $100.2 million recorded in the same period of the previous year. Earnings per share on a diluted basis were 61 cents, up 7% compared to 57 cents for the first quarter last year.Mr. Gallagher commented: "We are pleased to report that we are off to a solid start to 2005. Motion Industries, our Industrial Group, reported the strongest results, ending the quarter with a 13% sales increase. The Automotive Group reported a 4% increase for the period and S. P. Richards, our Office Products Group, improved sales 6%. EIS, our Electrical/Electronics Group, was up 1% for the quarter. The EIS revenues were impacted by the sale of a division in the Electronic side of their business during the quarter."
Mr. Gallagher concluded: "Our balance sheet remains in excellent condition and the combination of working capital initiatives and solid earnings growth has enabled us to continue to generate strong cash flows. As we look forward, we continue to feel that market conditions are favorable for each of our businesses and we are positioned to have another good year in 2005."
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 in Canada 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
Three Months Ended
March 31,
2005 2004
---------- ----------
(Unaudited)
(in thousands, except
per share data)
Net sales $2,342,201 $2,196,991
Cost of goods sold 1,605,721 1,510,080
---------- ----------
736,480 686,911
Selling, administrative & other expenses 564,270 524,514
---------- ----------
Income before income taxes 172,210 162,397
Income taxes 65,612 62,198
---------- ----------
Net income $ 106,598 $ 100,199
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Basic net income per common share $ .61 $ .57
Diluted net income per common share $ .61 $ .57
Weighted average common shares outstanding 174,772 174,320
Dilutive effect of stock options and non-vested
restricted stock awards 1,264 580
---------- ----------
Weighted average common shares outstanding -
assuming dilution 176,036 174,900
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GENUINE PARTS COMPANY and SUBSIDIARIES
SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS
Three Months Ended
March 31,
2005 2004
---------- ----------
(Unaudited)
(in thousands, except
ratio analysis)
Net sales:
Automotive $1,168,955 $1,126,551
Industrial 686,740 608,504
Office Products 410,929 386,790
Electrical/Electronic Materials 84,289 83,079
Other (8,712) (7,933)
---------- ----------
Total net sales $2,342,201 $2,196,991
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Operating profit:
Automotive $ 95,307 $ 93,261
Industrial 48,253 46,119
Office Products 46,027 43,754
Electrical/Electronic Materials 3,309 3,220
---------- ----------
Total operating profit 192,896 186,354
Interest expense (7,947) (9,977)
Other, net (12,739) (13,980)
---------- ----------
Income before income taxes $ 172,210 $ 162,397
========== ==========
Capital expenditures $ 20,768 $ 12,057
========== ==========
Depreciation and amortization $ 17,071 $ 16,193
========== ==========
Current ratio 3.1/1 3.5/1
========== ==========
Total debt to total capitalization 16.3% 21.9%
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GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, March 31,
2005 2004
---------- ----------
(Unaudited)
(in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 157,817 $ 28,088
Trade accounts receivable 1,195,034 1,135,227
Merchandise inventories 2,149,814 2,129,236
Prepaid expenses and other current assets 186,837 172,469
---------- ----------
TOTAL CURRENT ASSETS 3,689,502 3,465,020
Goodwill and other intangible assets 57,583 57,939
Other assets 404,300 350,928
Total property, plant and equipment, net 379,587 337,960
---------- ----------
TOTAL ASSETS $4,530,972 $4,211,847
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $ 878,640 $ 697,919
Current portion long-term debt and other
borrowings 897 36,900
Income taxes payable 98,994 70,627
Dividends payable 54,630 52,336
Other current liabilities 147,165 131,716
---------- ----------
TOTAL CURRENT LIABILITIES 1,180,326 989,498
Long-term debt 500,000 625,000
Other long-term liabilities 112,305 65,781
Deferred income taxes 116,689 114,409
Minority interests in subsidiaries 53,052 51,129
Common stock 174,450 174,442
Retained earnings and other 2,394,150 2,191,588
---------- ----------
TOTAL SHAREHOLDERS' EQUITY 2,568,600 2,366,030
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $4,530,972 $4,211,847
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Note: Certain balance sheet reclassifications have been made to prior year amounts to conform to current year presentation.
GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
March 31,
2005 2004
-------- --------
(Unaudited)
(in thousands)
OPERATING ACTIVITIES:
Net income $106,598 $100,199
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 17,071 16,193
Other 2,525 2,517
Changes in operating assets and liabilities (9,983) (37,782)
-------- --------
NET CASH PROVIDED BY OPERATING ACTIVITIES 116,211 81,127
INVESTING ACTIVITIES:
Purchase of property, plant and equipment (20,768) (12,057)
Other 6,804 -0-
-------- --------
NET CASH USED IN INVESTING ACTIVITIES (13,964) (12,057)
FINANCING ACTIVITIES:
Net payments on credit facilities (71) (15,733)
Stock options exercised 4,162 11,119
Dividends paid (52,495) (51,331)
Purchase of stock (30,966) (430)
-------- --------
NET CASH USED IN FINANCING ACTIVITIES (79,370) (56,375)
-------- --------
NET INCREASE IN CASH AND CASH EQUIVALENTS 22,877 12,695
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 134,940 15,393
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $157,817 $ 28,088
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