Genuine Parts Company Reports Record Results for 1999
23 February 2000
Genuine Parts Company Reports Record Results for 1999
ATLANTA--Feb. 22, 2000--39 CONSECUTIVE YEARS OF INCREASED EARNINGS
44 CONSECUTIVE YEARS OF INCREASED DIVIDENDS
Genuine Parts Company completed its 72nd year of operations with record sales and earnings for the fourth quarter and the year ended December 31, 1999.
Sales in 1999 were $7.98 billion, a 21% increase over 1998 sales of $6.6 billion. Net income increased 6% to $378 million, compared with $356 million recorded the prior year. 1999 earnings reached $2.11 per share versus $1.98 per share in 1998.
Larry Prince, Chairman of the Board of Directors, said: "Today, we are a Company with a high level of balance and diversity operating in four separate businesses. All are value added, service oriented distribution companies and hold leadership positions in their markets. We are pleased to report that each of these segments contributed to our growth in 1999. The Automotive Parts Group improved sales by 25%, the Motion Industries Industrial Group by 7% and the S. P. Richards Office Products Group increased 9%. The EIS Electrical/Electronic Materials Group, acquired July 1, 1998, grew substantially as a result of their acquisition activity along with internal growth and their sales reached $522.0 million in their first full year with GPC."
Sales rose 16% to $1.98 billion in the fourth quarter ended December 31, 1999, as compared to $1.7 billion for the same period in 1998. Net income in the fourth quarter of 1999 increased 4% to $108.4 million or 61 cents per share versus $103.8 million or 58 cents per share in the fourth quarter of 1998.
Mr. Prince added: "On February 21, 2000, the Board of Directors increased the cash dividend payable to an annual rate of $1.10 per share, an increase of 6%. The Company will return 52% of the previous year's earnings to Shareholders, marking our 44th consecutive year of dividend increases. The quarterly cash dividend of 27 1/2 cents per share is payable April 3, 2000 to shareholders of record March 3, 2000."
Mr. Prince concluded: "The Company's financial condition remains sound and our Balance Sheet continues to be strong. For the year, capital expenditures amounted to $88 million, working capital increased 6%, and current assets were 3.2 times current liabilities. We remain active in our share repurchase program and purchased approximately 3.9 million shares in 1999."
Genuine Parts Company is a distributor of automotive replacement parts, industrial replacement parts, office products, and electrical and electronic components from operations in the United States, Canada and Mexico.
GENUINE PARTS COMPANY and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the Quarter Ended
December 31 December 31
1999 1998
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(in thousands, except per share data)
Net Sales $1,975,207 $1,701,409
Cost of goods sold 1,325,188 1,137,466
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650,019 563,943
Selling, administrative & other
expenses 467,766 391,507
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Income before income taxes 182,253 172,436
Income taxes 73,903 68,663
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NET INCOME $108,350 $103,773
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Basic net income per common share $.61 $.58
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Diluted net income per common share $.61 $.58
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Average common shares outstanding 177,714 179,574
Dilutive effect of stock options and
non-vested restricted stock awards 345 733
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Average common shares outstanding -
Assuming dilution 178,059 180,307
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For the Year Ended
December 31 December 31
1999 1998
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(in thousands, except per share data)
Net Sales $7,981,687 $6,614,032
Cost of goods sold 5,587,557 4,611,525
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2,394,130 2,002,507
Selling, administrative & other
expenses 1,766,063 1,413,390
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Income before income taxes 628,067 589,117
Income taxes 250,445 233,323
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NET INCOME $377,622 $355,794
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Basic net income per common share $2.11 $1.98
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Diluted net income per common share $2.11 $1.98
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Average common shares outstanding 178,746 179,416
Dilutive effect of stock options and
non-vested restricted stock awards 492 665
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Average common shares outstanding -
Assuming dilution 179,238 180,081
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