1
==============================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 1995 Commission File Number 1-5690
-------------- ------
GENUINE PARTS COMPANY
---------------------
(Exact name of registrant as specified in its charter)
GEORGIA 58-0254510
------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2999 CIRCLE 75 PARKWAY, ATLANTA, GEORGIA 30339
- ---------------------------------------- -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (404)953-1700
-------------
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
--- ---
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date (the close of the period
covered by this report).
122,732,826
-----------
(Shares of Common Stock)
==============================================================================
2
PART 1 - FINANCIAL INFORMATION FORM 10-Q
Item 1 - Financial Statements
GENUINE PARTS COMPANY and SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
Mar. 31, Dec. 31,
1995 1994
------------ ------------
(Unaudited)
(in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40,087 $ 82,410
Trade accounts receivable, less allowance
for doubtful accounts (1995 - $3,978; 1994 - $1,600) . . . . . . . . . . . . . . . . . . . . 557,121 487,395
Inventories - at lower of cost (substantially last-in,
first-out method) or market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 996,668 1,004,580
Prepaid and other current accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,127 21,396
------------ ------------
TOTAL CURRENT ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,623,003 1,595,781
Investments and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178,252 175,658
Total property, plant and equipment, less allowance
for depreciation (1995 - $196,037; 1994 - $192,081) . . . . . . . . . . . . . . . . . . . . . 270,690 258,032
------------ ------------
$ 2,071,945 $ 2,029,471
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 288,257 $ 316,589
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,192 11,482
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,606 94,337
------------ ------------
TOTAL CURRENT LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431,055 422,408
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,193 11,431
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,540 44,540
Minority interests in subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,731 24,927
SHAREHOLDERS' EQUITY
Stated capital:
Preferred Stock, par value - $1 per share
Authorized - 10,000,000 shares - None Issued . . . . . . . . . . . . . . . . . . . . . -0- -0-
Common Stock, par value - $1 per share
Authorized - 450,000,000 shares
Issued - 1995 - 122,732,826; 1994 - 122,627,303 . . . . . . . . . . . . . . . . . . . 122,733 122,627
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,779 -0-
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,433,914 1,403,538
------------ ------------
TOTAL SHAREHOLDERS' EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,559,426 1,526,165
------------ ------------
$ 2,071,945 $ 2,029,471
============ ============
See notes to consolidated condensed financial statements.
2
3
GENUINE PARTS COMPANY AND SUBSIDIARIES FORM 10-Q
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended March 31,
-----------------------------
1995 1994
------------ ------------
(000 omitted except per share data)
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,281,230 $ 1,162,075
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 898,676 815,618
------------ ------------
382,554 346,457
Selling, administrative & other expenses . . . . . . . . . . . . . . . . . . . . . . 269,008 243,356
------------ ------------
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113,546 103,101
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,510 40,210
------------ ------------
NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 69,036 $ 62,891
============ ============
Average common shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . 122,671 124,469
============ ============
Net income per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .56 $ .51
============ ============
Dividends declared per common share . . . . . . . . . . . . . . . . . . . . . . . . . $ .315 $ .2875
============ ============
See notes to consolidated condensed financial statements.
3
4
GENUINE PARTS COMPANY AND SUBSIDIARIES FORM 10-Q
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months
Ended Mar. 31,
----------------------
1995 1994
---------- --------
(000 omitted)
Cash Provided By:
OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 69,036 $ 62,891
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,395 9,073
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 804 798
Changes in operating assets and liabilities:
Trade accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (69,726) (58,907)
Merchandise inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,912 8,403
Trade accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (28,332) 17,699
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,710 31,666
Other operating assets and liabilities . . . . . . . . . . . . . . . . . . . . . . . . . (12,528) (10,575)
---------- --------
NET CASH PROVIDED BY OPERATING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,271 61,048
INVESTING ACTIVITIES:
Purchase of short-term investments, net of proceeds from sale and maturity . . . . . . . . . -0- 6,637
Purchase of property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . (23,726) (12,651)
Other investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,922) 2,876
---------- --------
NET CASH USED IN INVESTING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (25,648) (3,138)
FINANCING ACTIVITIES:
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (35,246) (32,933)
Other financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,300 1,909
---------- --------
NET CASH USED IN FINANCING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (32,946) (31,024)
---------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . . . (42,323) 26,886
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD . . . . . . . . . . . . . . . . . . . . . . . 82,410 123,231
---------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40,087 $150,117
========== ========
See notes to consolidated condensed financial statements.
4
5
NOTES TO FINANCIAL STATEMENTS FORM 10-Q
Note A - Basis of Presentation
The accompanying unaudited consolidated condensed financial statements have
been prepared in accordance with the instructions to Form 10-Q and therefore do
not include all information and footnotes necessary for a fair presentation of
financial position, results of operations and cash flows in conformity with
generally accepted accounting principles. However, in the opinion of
management, all adjustments necessary to a fair statement of the operations of
the interim period have been made. These adjustments are of a normal recurring
nature. The results of operations for the three months ended March 31, 1995,
are not necessarily indicative of results for the entire year.
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Genuine Parts Company (the "Company") reported record sales and earnings in the
first quarter of 1995. Sales for the quarter were $1.28 billion, up 10% over
the same period in 1994. Net income in the quarter advanced 10% to $69
million. On a per-share basis, net income in the quarter was $.56 versus $.51
in the same quarter of the prior year.
All three business segments reflected sound sales progress in the first
quarter. In spite of a mild winter, the Automotive Parts Group advanced its
sales by 6% over the first quarter of 1994. The Industrial Parts Group had an
excellent quarter with sales advancing an impressive 19% over the same quarter
last year. The Industrial Group benefited from strong industrial production
and factory utilization during the quarter. S.P. Richards Company, the Office
Products Group, continues to move steadily forward and posted a sales gain of
11% for the quarter.
The ratio of current assets to current liabilities remains very good at 3.8 to
1 and the Company's cash position is good.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(b) No reports on Form 8-K were filed by the registrant during the quarter
ended March 31, 1995.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Genuine Parts Company
---------------------
(Registrant)
Date May 2, 1995 /s/ Jerry W. Nix
----------- --------------------------------------
Jerry W. Nix
Senior Vice President - Finance
/s/ George W. Kalafut
--------------------------------------
George W. Kalafut
Executive Vice President - Finance and
Administration (Principal Financial and
Accounting Officer)
5