ATLANTA, Feb. 21, 2017 /PRNewswire/ — Genuine Parts Company (NYSE: GPC) announced today sales and earnings for the fourth quarter and twelve months ended December 31, 2016.

Sales for the fourth quarter ended December 31, 2016 were $3.78 billion, a 3% increase compared to $3.68 billion for the same period in 2015.  Net income for the fourth quarter was $152.5 million compared to $161.3 million recorded for the same period in the previous year.  Earnings per share on a diluted basis were $1.02 compared to $1.07 for the fourth quarter last year. 

Fourth quarter sales for the Automotive Group were up 2%, including an approximate 1% comparable sales increase.  Sales at Motion Industries, our Industrial Group, were up 4%, sales at EIS, our Electrical/Electronic Group, were basically unchanged and sales for S. P. Richards, our Office Products Group, were up 4% for the quarter.

Paul Donahue, President and Chief Executive Officer, commented, «The fourth quarter was our strongest quarterly sales performance of the year, with acquisitions being the primary growth driver in each of our four business segments.  With that said, we did see improvement in our comparable sales trends in the Automotive, Industrial and Electrical/Electronic businesses relative to the second and third quarters of 2016.  Generally, we operated in more favorable market conditions as the fourth quarter progressed, and our teams were in position to benefit from that.»

Sales for the twelve months ended December 31, 2016 were $15.34 billion, up 0.4% compared to $15.28 billion for the same period in 2015.  Net income for the twelve months was $687.2 million, down 3% from 2015, and earnings per share on a diluted basis were $4.59, down 1% compared to $4.63 in 2015.

Mr. Donahue concluded, «We worked hard in every aspect of our business to overcome the challenging sales environment that persisted in our U.S. markets throughout most of 2016.  We also enhanced our measures to control rising costs and manage our assets to further strengthen the balance sheet and generate strong cash flows.  Due to these efforts, as well as the global growth initiatives across our operations and geographies, the Company enters 2017 well positioned for sustainable long-term growth.»

2017 Outlook

The Company is establishing its full year 2017 sales guidance at up 3% to 4%. Diluted earnings per share is expected to be $4.70 to $4.80.

Conference Call

Genuine Parts Company will hold a conference call today at 11:00 a.m. EST 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 «Investors», or by dialing 877-604-9665, conference ID 5619563.  A replay will also be available on the Company’s website or at 844-512-2921, conference ID 5619563, two hours after the completion of the call until 12:00 a.m. Eastern time on March 7, 2017.

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, the Company’s ability to successfully implement its business initiatives in each of its four business segments; slowing demand for the Company’s products; changes in legislation or government regulations or policies; changes in general economic conditions, including unemployment, inflation or deflation; changes in tax policies; volatile exchange rates; high energy costs; uncertain credit markets and other macro-economic conditions; competitive product, service and pricing pressures; the ability to maintain favorable vendor arrangements and relationships; disruptions in our vendors’ operations; the Company’s ability to successfully integrate its acquired businesses; the uncertainties and costs of litigation; disruptions caused by a failure or breach of the Company’s information systems, as well as other risks and uncertainties discussed in the Company’s Annual Report on Form 10-K for 2015 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, Mexico and Australasia.  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 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,

2016

2015

2016

2015

(in thousands, except per share data)

Net sales

$3,780,065

$3,681,790

$15,339,713

$15,280,044

Cost of goods sold

2,648,982

2,586,312

10,740,106

10,724,192

Gross profit

1,131,083

1,095,478

4,599,607

4,555,852

Operating expenses:

Selling, administrative & other expenses

855,557

797,959

3,377,780

3,290,496

Depreciation and amortization

39,240

35,911

147,487

141,675

894,797

833,870

3,525,267

3,432,171

Income before income taxes

236,286

261,608

1,074,340

1,123,681

Income taxes

83,766

100,335

387,100

418,009

Net income

$   152,520

$   161,273

$    687,240

$     705,672

Basic net income per common share

$1.03

$1.07

$4.61

$4.65

Diluted net income per common share

$1.02

$1.07

$4.59

$4.63

Weighted average common shares outstanding

148,478

150,552

149,051

151,667

Dilutive effect of stock options and

   non-vested restricted stock awards

699

803

753

829

Weighted average common shares outstanding – assuming dilution

149,177

151,355

149,804

152,496

 

 

 

GENUINE PARTS COMPANY and SUBSIDIARIES

SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS

Three Months Ended Dec. 31,

Year Ended Dec. 31,

2016

2015

2016

2015

(in thousands)

Net sales:

Automotive

$1,996,325

$1,949,365

$  8,111,511

$  8,015,098

Industrial

1,151,966

1,106,583

4,634,212

4,646,689

Office Products

475,971

458,751

1,969,405

1,937,629

Electrical/Electronic Materials

176,847

177,186

715,650

750,770

Other (1)

(21,044)

(10,095)

(91,065)

(70,142)

Total net sales

$3,780,065

$3,681,790

$15,339,713

$15,280,044

Operating profit:

Automotive

$   159,998

$   169,082

$     715,154

$     729,152

Industrial

80,904

72,454

336,608

339,180

Office Products

19,934

33,435

117,035

140,866

Electrical/Electronic Materials

15,434

16,132

60,539

70,151

Total operating profit

276,270

291,103

1,229,336

1,279,349

Interest expense, net

(4,794)

(4,298)

(19,525)

(20,354)

Intangible amortization

(12,546)

(8,933)

(40,870)

(34,878)

Other, net

(22,644)

(16,264)

(94,601)

(100,436)

Income before income taxes

$   236,286

$   261,608

$  1,074,340

$  1,123,681

Capital expenditures

$     73,993

$     47,550

$     160,643

$     109,544

Depreciation and amortization

$     39,240

$     35,911

$     147,487

$     141,675

(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,

2016

2015

(in thousands)

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$   242,879

$   211,631

Trade accounts receivable, net

1,938,562

1,822,419

Merchandise inventories, net

3,210,320

2,999,966

Prepaid expenses and other current assets

556,670

521,300

TOTAL CURRENT ASSETS

5,948,431

5,555,316

Goodwill and other intangible assets, less accumulated amortization

1,574,663

1,361,795

Deferred tax assets

132,652

118,525

Other assets

475,530

460,918

Net property, plant and equipment

728,124

648,217

TOTAL ASSETS

$8,859,400

$8,144,771

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Trade accounts payable

$3,081,111

$2,821,526

Current portion of debt

325,000

375,000

Dividends payable

97,584

92,595

Other current liabilities

740,455

651,533

TOTAL CURRENT LIABILITIES

4,244,150

3,940,654

Long-term debt

550,000

250,000

Pension and other post-retirement benefit liabilities

341,510

284,235

Deferred tax liabilities

48,326

50,684

Other long-term liabilities

468,058

459,956

Common stock

148,410

150,081

Retained earnings

4,058,339

3,927,104

Accumulated other comprehensive loss

(1,013,021)

(930,618)

TOTAL  PARENT EQUITY

3,193,728

3,146,567

Noncontrolling interests in subsidiaries

13,628

12,675

TOTAL  EQUITY

3,207,356

3,159,242

TOTAL LIABILITIES AND EQUITY

$8,859,400

$8,144,771

 

 

 

GENUINE PARTS COMPANY and SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended Dec. 31,

2016

2015

(in thousands)

OPERATING ACTIVITIES:

Net income

$687,240

$705,672

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

147,487

141,675

Share-based compensation

19,719

17,717

Excess tax benefits from share-based compensation

(12,021)

(7,024)

Changes in operating assets and liabilities

103,653

301,333

NET CASH PROVIDED BY OPERATING ACTIVITIES

946,078

1,159,373

INVESTING ACTIVITIES:

Purchases of property, plant and equipment

(160,643)

(109,544)

Acquisitions and other investing activities

(433,356)

(154,083)

NET CASH USED IN INVESTING ACTIVITIES

(593,999)

(263,627)

FINANCING ACTIVITIES:

Proceeds from debt

4,350,000

3,862,224

Payments on debt

(4,100,000)

(4,005,191)

Share-based awards exercised, net of taxes paid

(16,147)

(9,572)

Excess tax benefits from share-based compensation

12,021

7,024

Dividends paid

(386,863)

(368,284)

Purchase of stock

(181,417)

(292,275)

NET CASH USED IN FINANCING ACTIVITIES

(322,406)

(806,074)

EFFECT OF EXCHANGE RATE CHANGES ON CASH

1,575

(15,771)

NET INCREASE IN CASH AND CASH EQUIVALENTS

31,248

73,901

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

211,631

137,730

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$242,879

$211,631

 

 

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SOURCE Genuine Parts Company