- Record Sales of $5.9 billion,
Up 5.6%
- Diluted EPS of $2.44, Down
6.9%, or Up 10.9% from Adjusted Diluted EPS in 2022
- Updates 2023 Outlook:
-
- Reaffirms Revenue Growth of 4% to 6%
- Increases Diluted EPS to $9.15
to $9.30, Up from $8.95 to $9.10
- Reaffirms Cash From Operations of $1.3 Billion to $1.4
Billion
ATLANTA, July 20,
2023 /PRNewswire/ -- Genuine Parts Company
(NYSE: GPC), a leading global distributor of automotive and
industrial replacement parts, announced today its results for the
second quarter ended June 30,
2023.
"We are pleased to report another solid quarter, which includes
record sales and double-digit adjusted earnings growth. Our second
quarter performance, once again, highlights the value and benefit
of our global Automotive and Industrial business mix and geographic
diversity, which we believe are competitive advantages that
differentiate GPC in the marketplace," said Paul Donahue, Chairman and Chief Executive
Officer. "Our global team remains focused on the strategic
initiatives we highlighted at our Investor Day in March, and we
believe our One GPC Team approach is contributing to our strong
financial performance. We want to thank all our GPC teammates for
their hard work and continued dedication to serving our
customers."
Second Quarter 2023 Results
Sales were $5.9 billion, a 5.6%
increase compared to $5.6 billion in
the same period of the prior year. The growth in sales is
attributable to a 4.9% increase in comparable sales and a 1.8%
benefit from acquisitions, partially offset by a 1.1% net
unfavorable impact of foreign currency and other.
Net income was $344 million, or a
diluted EPS of $2.44. This compares
to net income of $373 million, or
$2.62 per diluted share in the prior
year period.
Net income of $344 million
compares to adjusted net income of $313
million for the same three-month period of the prior year,
an increase of 10.0%. On a per share diluted basis, net income was
$2.44, an increase of 10.9% compared
to adjusted diluted earnings per share of $2.20 last year. Refer to the reconciliation of
GAAP net income to adjusted net income and GAAP diluted earnings
per share and adjusted diluted earnings per share for more
information.
Second Quarter 2023 Segment Highlights
Automotive Parts Group ("Automotive")
Global Automotive sales were $3.7
billion, up 5.4% from the same period in 2022, consisting of
a 4.3% increase in comparable sales and a 2.6% benefit from
acquisitions, net of a 1.5% unfavorable impact of foreign currency
and other. Segment profit of $329
million increased 2.1%, with segment profit margin of 9.0%
down 30 basis points from last year.
Industrial Parts Group ("Industrial")
Industrial sales were $2.3
billion, up 5.9% from the same period in 2022, and
reflecting a 6.0% increase in comparable sales and a 0.6% benefit
from acquisitions, slightly offset by a 0.7% unfavorable impact of
foreign currency. Segment profit of $283
million increased 25.7%, with segment profit margin of 12.5%
up 190 basis points from the same period of the prior year.
"Global Automotive sales continue to benefit from our global
diversification, as our businesses outside the U.S. posted
mid-single-digit to double-digit growth in local currency in the
second quarter," said Will Stengel,
President and Chief Operating Officer. "Our Industrial sales growth
was broad based, with all product categories and major industries
served growing from the prior year, allowing the Industrial team to
post its twelfth consecutive quarter of margin expansion. The
global GPC team delivered a solid second quarter and our teams
remain focused on the consistent execution of our strategic
initiatives. We believe our investments in our people, customer
solutions, technology, supply chain and emerging technology will
continue to enhance our capabilities and leadership positions."
Six Months 2023 Results
Sales for the six months ended June 30,
2023 were $11.7 billion, up
7.2% from the same period in 2022. Net income for the six months
was $648 million, or $4.58 per diluted share, an increase of 5.5%
compared to $4.34 per diluted share
in 2022. Net income of $648 million,
or $4.58 per diluted share, compares
to adjusted net income of $579
million, or adjusted diluted earnings per share of
$4.06, in 2022, an increase of
12.8%.
Balance Sheet, Cash Flow and Capital Allocation
The company generated cash flow from operations of $457 million for the first six months of 2023. We
used $226 million in cash for
investing activities, including $205 million for capital
expenditures and $106 million for acquisitions, net of
$80 million in proceeds from the sale of our remaining
investment in S.P. Richards and other investments. We also used
$358 million in cash for financing
activities, including $260
million for quarterly dividends paid to shareholders and
$135 million for stock repurchases.
Free cash flow was $252 million for
the first six months of 2023. Refer to the reconciliation of GAAP
net cash provided by operating activities to free cash flow for
more information.
The company ended the quarter with $2.0
billion in total liquidity, consisting of $1.4 billion availability on the revolving credit
facility and $530 million in cash and
cash equivalents.
2023 Outlook
The company is updating full-year 2023 guidance previously
provided in its earnings release on April
20, 2023. The company considered its recent business trends
and financial results, current growth plans, strategic initiatives,
global economic outlook, geopolitical conflicts and the potential
impact on results in updating its guidance, which is outlined in
the table below.
|
|
For the Year Ending
December 31, 2023
|
|
|
Previous
Outlook
|
|
Updated
Outlook
|
Total sales
growth
|
|
4% to 6%
|
|
4% to 6%
|
Automotive sales
growth
|
|
4% to 6%
|
|
4% to 6%
|
Industrial sales
growth
|
|
4% to 6%
|
|
4% to 6%
|
Diluted earnings per
share
|
|
$8.95 to
$9.10
|
|
$9.15 to
$9.30
|
Adjusted diluted
earnings per share
|
|
$8.95 to
$9.10
|
|
$9.15 to
$9.30
|
Effective tax
rate
|
|
Approximately
25%
|
|
Approximately
25%
|
Net cash provided by
operating activities
|
|
$1.3 billion to $1.4
billion
|
|
$1.3 billion to $1.4
billion
|
Free cash
flow
|
|
$900 million to $1.0
billion
|
|
$900 million to $1.0
billion
|
"We are very pleased with the solid start to 2023. And, with the
strong earnings growth in the second quarter, we are once again
raising our outlook for 2023 earnings per share. As we look
forward, we remain confident in our strategic plans and will
continue to invest to strengthen our business and achieve both our
near-term and long-term financial targets while returning capital
to shareholders through the dividend and share repurchases,"
Mr. Donahue concluded.
Non-GAAP Information
This release contains certain financial information not derived
in accordance with United States
("U.S.") generally accepted accounting principles ("GAAP"). These
items include adjusted net income, adjusted diluted earnings per
share and free cash flow. We believe that the presentation of
adjusted net income, adjusted diluted earnings per share and free
cash flow, when considered together with the corresponding
GAAP financial measures and the reconciliations to those measures,
provide meaningful supplemental information to both management and
investors that is indicative of our core operations. We considered
these metrics useful to investors because they provide greater
transparency into management's view and assessment of our ongoing
operating performance by removing items management believes are not
representative of our operations and may distort our longer-term
operating trends. We believe these measures are useful and enhance
the comparability of our results from period to period and with our
competitors, as well as show ongoing results from operations
distinct from items that are infrequent or not associated with our
core operations. We do not, nor do we suggest investors should,
consider such non-GAAP financial measures as superior to, in
isolation from, or as a substitute for, GAAP financial information.
We have included a reconciliation of this additional information to
the most comparable GAAP measure following the financial statements
below. We do not provide forward-looking guidance for certain
financial measures on a GAAP basis because we are unable to predict
certain items contained in the GAAP measures without unreasonable
efforts. These items may include acquisition-related costs,
litigation charges or settlements, impairment charges, and certain
other unusual adjustments.
Comparable Sales
Comparable sales is a key metric that refers to
period-over-period comparisons of our sales excluding the impact of
acquisitions, foreign currency and other. We consider this metric
useful to investors because it provides greater transparency into
management's view and assessment of the our core ongoing
operations. This is a metric that is widely used by analysts,
investors and competitors in our industry, although our calculation
of the metric may not be comparable to similar measures disclosed
by other companies, because not all companies and analysts
calculate this metric in the same manner.
Conference Call
We will hold a conference call today at 11:00 a.m. Eastern time to discuss the results of
the quarter. A supplemental earnings deck will also be available
for reference. Interested parties may listen to the call and view
the supplemental earnings deck on our website at
http://genuineparts.investorroom.com. The call is also available by
dialing 888-317-6003, conference ID 3398770. A replay will also be
available on our website or at 877-344-7529, conference ID 9035640,
two hours after the completion of the call.
About Genuine Parts Company
Founded in 1928, Genuine Parts Company is a global service
organization engaged in the distribution of automotive and
industrial replacement parts. The company's Automotive Parts Group
distributes automotive replacement parts in the U.S., Canada, Mexico, Australasia, France, the United
Kingdom, Ireland,
Germany, Poland, the
Netherlands, Belgium,
Spain and Portugal. The company's Industrial Parts Group
distributes industrial replacement parts in the U.S., Canada, Mexico and Australasia. In total, the company
serves its global customers from an extensive network of more than
10,000 locations in 17 countries and has approximately 58,000
employees. Further information is available at
www.genpt.com.
Forward-Looking Statements
Some statements in this release, as well as in other materials
we file with the Securities and Exchange Commission (SEC), release
to the public, or 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.
All statements in the future tense and all statements accompanied
by words such as "expect," "likely," "outlook," "forecast,"
"preliminary," "would," "could," "should," "position," "will,"
"project," "intend," "plan," "on track," "anticipate," "to come,"
"may," "possible," "assume," or similar expressions are intended to
identify such forward-looking statements. These forward-looking
statements include our view of business and economic trends for the
remainder of the year, our expectations regarding our ability to
capitalize on these business and economic trends and to execute our
strategic priorities, and the updated full-year 2022 financial
guidance provided above. Senior officers may also make verbal
statements to analysts, investors, the media and others that are
forward-looking.
We caution you that all 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, changes in
general economic conditions, including unemployment, inflation
(including the impact of tariffs) or deflation, financial
institution disruptions and geopolitical conflicts such as the
conflict between Russia and
Ukraine; volatility in oil prices;
significant cost increases, such as rising fuel and freight
expenses; public health emergencies such as the COVID-19 pandemic,
including the effects on the financial health of our business
partners and customers, on supply chains and our suppliers, on
vehicle miles driven as well as other metrics that affect our
business, and on access to capital and liquidity provided by the
financial and capital markets; our ability to maintain compliance
with our debt covenants; our ability to successfully integrate
acquired businesses into our operations and to realize the
anticipated synergies and benefits; our ability to successfully
implement our business initiatives in our two business segments;
slowing demand for our products; the ability to maintain favorable
supplier arrangements and relationships; changes in national and
international legislation or government regulations or policies,
including changes to import tariffs, environmental and social
policy, infrastructure programs and privacy legislation, and their
impact to us, our suppliers and customers; changes in tax policies;
volatile exchange rates; our ability to successfully attract and
retain employees in the current labor market; uncertain credit
markets and other macroeconomic conditions; competitive product,
service and pricing pressures; failure or weakness in our
disclosure controls and procedures and internal controls over
financial reporting, including as a result of the work from home
environment; the uncertainties and costs of litigation; disruptions
caused by a failure or breach of our information systems, as well
as other risks and uncertainties discussed in our Annual Report on
Form 10-K for 2022 and from time to time in our subsequent filings
with the SEC.
Forward-looking statements speak only as of the date they are
made, and we undertake no duty to update any 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 filed with the
SEC.
GENUINE PARTS COMPANY
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
|
|
|
|
Three Months Ended June
30,
|
|
Six Months Ended June
30,
|
(in thousands, except per share data)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net sales
|
|
$ 5,915,006
|
|
$ 5,602,414
|
|
$
11,680,124
|
|
$
10,897,049
|
Cost of goods
sold
|
|
3,780,263
|
|
3,641,615
|
|
7,531,980
|
|
7,110,303
|
Gross profit
|
|
2,134,743
|
|
1,960,799
|
|
4,148,144
|
|
3,786,746
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling,
administrative and other expenses
|
|
1,581,653
|
|
1,364,015
|
|
3,092,897
|
|
2,767,994
|
Depreciation and
amortization
|
|
90,873
|
|
85,890
|
|
178,088
|
|
173,259
|
Provision for doubtful
accounts
|
|
8,322
|
|
2,899
|
|
13,961
|
|
7,393
|
Total operating
expenses
|
|
1,680,848
|
|
1,452,804
|
|
3,284,946
|
|
2,948,646
|
Non-operating expense
(income):
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
16,455
|
|
20,248
|
|
33,319
|
|
40,098
|
Other
|
|
(16,649)
|
|
(3,820)
|
|
(28,616)
|
|
(19,281)
|
Total non-operating
expense (income)
|
|
(194)
|
|
16,428
|
|
4,703
|
|
20,817
|
Income before income
taxes
|
|
454,089
|
|
491,567
|
|
858,495
|
|
817,283
|
Income taxes
|
|
109,595
|
|
119,038
|
|
210,044
|
|
198,916
|
Net income
|
|
$
344,494
|
|
$
372,529
|
|
$
648,451
|
|
$
618,367
|
Dividends declared per
common share
|
|
$
0.9500
|
|
$
0.8950
|
|
$
1.9000
|
|
$
1.7900
|
Basic earnings per
share
|
|
$
2.45
|
|
$
2.63
|
|
$
4.61
|
|
$
4.36
|
Diluted earnings per
share
|
|
$
2.44
|
|
$
2.62
|
|
$
4.58
|
|
$
4.34
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares
outstanding
|
|
140,574
|
|
141,581
|
|
140,688
|
|
141,747
|
Dilutive effect of
stock options and non-
vested restricted stock awards
|
|
673
|
|
723
|
|
808
|
|
835
|
Weighted average common
shares
outstanding – assuming dilution
|
|
141,247
|
|
142,304
|
|
141,496
|
|
142,582
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
SEGMENT INFORMATION
(UNAUDITED)
|
|
|
|
Three Months Ended June
30,
|
|
Six Months Ended June
30,
|
(in
thousands)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net sales:
|
|
|
|
|
|
|
|
|
Automotive
|
|
$ 3,654,999
|
|
$ 3,467,494
|
|
$ 7,160,826
|
|
$ 6,743,115
|
Industrial
|
|
2,260,007
|
|
2,134,920
|
|
4,519,298
|
|
4,153,934
|
Total net
sales
|
|
$ 5,915,006
|
|
$ 5,602,414
|
|
$
11,680,124
|
|
$
10,897,049
|
Segment
profit:
|
|
|
|
|
|
|
|
|
Automotive
|
|
$
329,347
|
|
$
322,553
|
|
$
593,767
|
|
$
587,126
|
Industrial
|
|
283,372
|
|
225,472
|
|
545,359
|
|
413,825
|
Total segment
profit
|
|
612,719
|
|
548,025
|
|
1,139,126
|
|
1,000,951
|
Interest expense,
net
|
|
(16,455)
|
|
(20,248)
|
|
(33,319)
|
|
(40,098)
|
Intangible asset
amortization
|
|
(40,625)
|
|
(39,630)
|
|
(79,747)
|
|
(79,324)
|
Corporate
expense
|
|
(101,550)
|
|
(73,312)
|
|
(167,565)
|
|
(115,063)
|
Other unallocated
income, net (1)
|
|
—
|
|
76,732
|
|
—
|
|
50,817
|
Income before income
taxes
|
|
$
454,089
|
|
$
491,567
|
|
$
858,495
|
|
$
817,283
|
(1) The following table
presents a summary of the other unallocated income, net:
|
|
|
|
Three Months Ended June
30,
|
|
Six Months Ended June
30,
|
(in
thousands)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Other unallocated
income, net:
|
|
|
|
|
|
|
|
|
Gain on sale of real
estate (2)
|
|
$
—
|
|
$
102,803
|
|
$
—
|
|
$
102,803
|
Gain on insurance
proceeds (3)
|
|
—
|
|
873
|
|
—
|
|
1,507
|
Transaction and other
costs (4)
|
|
—
|
|
(26,944)
|
|
—
|
|
(53,493)
|
Total other unallocated
income, net
|
|
$
—
|
|
$
76,732
|
|
$
—
|
|
$
50,817
|
|
|
(2)
|
Adjustment reflects a
gain on the sale of real estate that had been leased to S.P.
Richards.
|
(3)
|
Adjustment reflects
insurance recoveries in excess of losses incurred on inventory,
property, plant and equipment and other fire-related
costs.
|
(4)
|
Adjustment primarily
reflects costs associated with the January 3, 2022 acquisition of
Kaman Distribution Group.
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
|
(in thousands, except
share and per share data)
|
|
June 30,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
530,105
|
|
$
653,463
|
Trade accounts
receivable, less allowance for doubtful accounts
(2023 – $60,480; 2022 – $53,872)
|
|
2,554,171
|
|
2,188,868
|
Merchandise
inventories, net
|
|
4,512,874
|
|
4,441,649
|
Prepaid expenses and
other current assets
|
|
1,486,556
|
|
1,532,759
|
Total current
assets
|
|
9,083,706
|
|
8,816,739
|
Goodwill
|
|
2,627,031
|
|
2,588,113
|
Other intangible
assets, less accumulated amortization
|
|
1,778,378
|
|
1,812,510
|
Property, plant and
equipment, less accumulated depreciation
(2023 – $1,509,715; 2022 –
$1,435,677)
|
|
1,441,757
|
|
1,326,014
|
Operating lease
assets
|
|
1,142,140
|
|
1,104,678
|
Other assets
|
|
868,623
|
|
847,325
|
Total assets
|
|
$ 16,941,635
|
|
$ 16,495,379
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Trade accounts
payable
|
|
$
5,570,566
|
|
$
5,456,550
|
Current portion of
debt
|
|
417,630
|
|
252,029
|
Dividends
payable
|
|
133,491
|
|
126,191
|
Other current
liabilities
|
|
1,778,107
|
|
1,851,340
|
Total current
liabilities
|
|
7,899,794
|
|
7,686,110
|
Long-term
debt
|
|
2,986,138
|
|
3,076,794
|
Operating lease
liabilities
|
|
862,549
|
|
836,019
|
Pension and other
post–retirement benefit liabilities
|
|
197,783
|
|
197,879
|
Deferred tax
liabilities
|
|
397,801
|
|
391,163
|
Other long-term
liabilities
|
|
511,776
|
|
502,967
|
Equity:
|
|
|
|
|
Preferred stock, par
value – $1 per share; authorized –
10,000,000 shares; none issued
|
|
—
|
|
—
|
Common stock, par value
– $1 per share; authorized –
450,000,000 shares; issued and outstanding –
2023 –
140,467,550 shares; 2022 – 140,941,649
shares
|
|
140,468
|
|
140,941
|
Additional paid-in
capital
|
|
153,748
|
|
140,324
|
Accumulated other
comprehensive loss
|
|
(1,011,857)
|
|
(1,032,542)
|
Retained
earnings
|
|
4,788,852
|
|
4,541,640
|
Total parent
equity
|
|
4,071,211
|
|
3,790,363
|
Noncontrolling
interests in subsidiaries
|
|
14,583
|
|
14,084
|
Total equity
|
|
4,085,794
|
|
3,804,447
|
Total liabilities and
equity
|
|
$ 16,941,635
|
|
$ 16,495,379
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
|
Six Months Ended June
30,
|
(in
thousands)
|
|
2023
|
|
2022
|
Operating
activities:
|
|
|
|
|
Net income
|
|
$
648,451
|
|
$
618,367
|
Adjustments to
reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
178,088
|
|
173,259
|
Share-based
compensation
|
|
36,945
|
|
17,882
|
Excess tax benefits
from share-based compensation
|
|
(6,431)
|
|
(3,137)
|
Gain on sale of real
estate
|
|
—
|
|
(102,803)
|
Changes in operating
assets and liabilities
|
|
(400,050)
|
|
87,417
|
Net cash provided by
operating activities
|
|
457,003
|
|
790,985
|
Investing
activities:
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(205,336)
|
|
(152,976)
|
Proceeds from sale of
property, plant and equipment
|
|
4,762
|
|
140,841
|
Proceeds from sale of
investments
|
|
80,482
|
|
—
|
Acquisitions and other
investing activities
|
|
(106,028)
|
|
(1,531,318)
|
Net cash used in
investing activities
|
|
(226,120)
|
|
(1,543,453)
|
Financing
activities:
|
|
|
|
|
Proceeds from
debt
|
|
1,668,757
|
|
3,850,642
|
Payments on
debt
|
|
(1,602,138)
|
|
(2,872,124)
|
Shares issued from
employee incentive plans
|
|
(23,155)
|
|
(14,420)
|
Dividends
paid
|
|
(259,929)
|
|
(242,767)
|
Purchases of
stock
|
|
(134,849)
|
|
(122,919)
|
Other financing
activities
|
|
(6,436)
|
|
(13,901)
|
Net cash provided by
(used in) financing activities
|
|
(357,750)
|
|
584,511
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
3,509
|
|
(27,613)
|
Net decrease in cash
and cash equivalents
|
|
(123,358)
|
|
(195,570)
|
Cash and cash
equivalents at beginning of period
|
|
653,463
|
|
714,701
|
Cash and cash
equivalents at end of period
|
|
$
530,105
|
|
$
519,131
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME AND
GAAP
DILUTED NET INCOME PER COMMON SHARE TO ADJUSTED DILUTED NET INCOME
PER
COMMON SHARE
(UNAUDITED)
|
|
|
|
Three Months Ended June
30,
|
|
Six Months Ended June
30,
|
(in
thousands)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP net
income
|
|
$
344,494
|
|
$
372,529
|
|
$
648,451
|
|
$
618,367
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Gain on sale of real
estate (1)
|
|
—
|
|
(102,803)
|
|
—
|
|
(102,803)
|
Gain on insurance
proceeds (2)
|
|
—
|
|
(873)
|
|
—
|
|
(1,507)
|
Transaction and other
costs (3)
|
|
—
|
|
26,944
|
|
—
|
|
53,493
|
Total
adjustments
|
|
—
|
|
(76,732)
|
|
—
|
|
(50,817)
|
Tax impact of
adjustments
|
|
—
|
|
17,291
|
|
—
|
|
11,187
|
Adjusted net
income
|
|
$
344,494
|
|
$
313,088
|
|
$
648,451
|
|
$
578,737
|
The table below
represent amounts per common share assuming dilution:
|
|
|
|
Three Months Ended June
30,
|
|
Six Months Ended June
30,
|
(in thousands, except
per share
data)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP net
income
|
|
$
2.44
|
|
$
2.62
|
|
$
4.58
|
|
$
4.34
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Gain on sale of real
estate (1)
|
|
—
|
|
(0.72)
|
|
—
|
|
(0.72)
|
Gain on insurance
proceeds (2)
|
|
—
|
|
(0.01)
|
|
—
|
|
(0.02)
|
Transaction and other
costs (3)
|
|
—
|
|
0.19
|
|
—
|
|
0.38
|
Total
adjustments
|
|
—
|
|
(0.54)
|
|
—
|
|
(0.36)
|
Tax impact of
adjustments
|
|
—
|
|
0.12
|
|
—
|
|
0.08
|
Adjusted net
income
|
|
$
2.44
|
|
$
2.20
|
|
$
4.58
|
|
$
4.06
|
Weighted average common
shares
outstanding – assuming dilution
|
|
141,247
|
|
142,304
|
|
141,496
|
|
142,582
|
The table below
clarifies where the items that have been adjusted above to improve
comparability of the
financial information from period to period are presented in the
condensed consolidated statements of
income.
|
|
|
|
Three Months Ended June
30,
|
|
Six Months Ended June
30,
|
(in
thousands)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Line item:
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
5,000
|
Selling,
administrative and other expenses
|
|
—
|
|
(75,859)
|
|
—
|
|
(54,310)
|
Non-operating income:
Other
|
|
—
|
|
(873)
|
|
—
|
|
(1,507)
|
Total
adjustments
|
|
$
—
|
|
$
(76,732)
|
|
$
—
|
|
$
(50,817)
|
|
|
(1)
|
Adjustment reflects a
gain on the sale of real estate that had been leased to S.P.
Richards.
|
(2)
|
Adjustment reflects
insurance recoveries in excess of losses incurred on inventory,
property, plant and equipment and other fire-related
costs.
|
(3)
|
Adjustment primarily
reflects costs associated with the January 3, 2022 acquisition of
Kaman Distribution Group.
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
CHANGE IN NET SALES SUMMARY
(UNAUDITED)
|
|
|
|
Three Months Ended June
30, 2023
|
|
|
Comparable
Sales
|
|
Acquisitions
|
|
Foreign
Currency
|
|
Other
|
|
GAAP Total
Net Sales
|
Automotive
|
|
4.3 %
|
|
2.6 %
|
|
(1.1) %
|
|
(0.4) %
|
|
5.4 %
|
Industrial
|
|
6.0 %
|
|
0.6 %
|
|
(0.7) %
|
|
— %
|
|
5.9 %
|
Total Net
Sales
|
|
4.9 %
|
|
1.8 %
|
|
(0.9) %
|
|
(0.2) %
|
|
5.6 %
|
|
|
Six Months Ended June
30, 2023
|
|
|
Comparable
Sales
|
|
Acquisitions
|
|
Foreign
Currency
|
|
Other
|
|
GAAP Total
Net Sales
|
Automotive
|
|
5.4 %
|
|
3.0 %
|
|
(2.1) %
|
|
(0.1) %
|
|
6.2 %
|
Industrial
|
|
9.0 %
|
|
0.6 %
|
|
(0.8) %
|
|
— %
|
|
8.8 %
|
Total Net
Sales
|
|
6.8 %
|
|
2.1 %
|
|
(1.6) %
|
|
(0.1) %
|
|
7.2 %
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
RECONCILIATION OF GAAP NET CASH PROVIDED BY OPERATING ACTIVITIES TO
FREE
CASH FLOW
(UNAUDITED)
|
|
|
|
Six Months Ended June
30,
|
(in
thousands)
|
|
2023
|
|
2022
|
Net cash provided by
operating activities
|
|
$
457,003
|
|
$
790,985
|
Purchases of property,
plant and equipment
|
|
(205,336)
|
|
(152,976)
|
Free Cash
Flow
|
|
$
251,667
|
|
$
638,009
|
|
|
For the Year Ending
December 31, 2023
|
|
|
Previous
Outlook
|
|
Updated
Outlook
|
Net cash provided by
operating activities
|
|
$1.3 billion to $1.4
billion
|
|
$1.3 billion to $1.4
billion
|
Purchases of property,
plant and equipment
|
|
$375 million to $400
million
|
|
$375 million to $400
million
|
Free Cash
Flow
|
|
$900 million to $1.0
billion
|
|
$900 million to $1.0
billion
|
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SOURCE Genuine Parts Company