- Sales of $6.0 billion
- Diluted EPS of $1.62
- Adjusted Diluted EPS of $1.88
- Revises 2024 Outlook:
- Revenue Growth of 1% to 2% from 1% to 3%
- Adjusted Diluted EPS of $8.00
to $8.20 from $9.30 to $9.50
ATLANTA, Oct. 22,
2024 /PRNewswire/ -- Genuine Parts Company (NYSE:
GPC), a leading global service provider of automotive and
industrial replacement parts and value-added solutions, announced
today its results for the third quarter ended September 30,
2024.
"I would like to thank our global GPC teammates for their hard
work in serving our customers during the third quarter," said
Will Stengel, President and Chief
Executive Officer. "Our results were below our expectations,
primarily driven by continued weakness in market conditions in
Europe and our Industrial
business. While the external environment remains challenging for
the balance of 2024, we expect the combination of near-term actions
and long-term investments to better position us when market
conditions improve."
Third Quarter 2024 Results
Sales were $6.0 billion, a 2.5%
increase compared to $5.8 billion in the same period of the
prior year. The growth in sales is attributable to a 3.2%
benefit from acquisitions and a net 0.1% favorable impact of
foreign currency and other, partially offset by a 0.8% decrease in
comparable sales. The third quarter included one additional selling
day in the U.S. versus the same period of the prior year, which
positively impacted sales growth by approximately 1.1%.
Net income was $227 million,
or $1.62 per diluted earnings per share. This compares to net
income of $351 million, or $2.49
per diluted share in the prior year period.
Adjusted net income was $263 million which excludes a net
expense of $36 million after tax adjustments, or $0.26 per diluted share, in costs related to our
global restructuring initiative and the acquisition and integration
of independent stores. This compares to net income of $351 million for the same period of the prior
year, a decrease of 25.1%. On a per share diluted basis, adjusted
net income was $1.88, a decrease
compared to $2.49 in the same period
of the prior year. Refer to the reconciliation of GAAP net income
to adjusted net income and GAAP diluted earnings per share to
adjusted diluted earnings per share for more information.
Third Quarter 2024 Segment Highlights
Automotive Parts Group ("Automotive")
Global Automotive sales were $3.8 billion, up 4.8%
from the same period in 2023, consisting of a 4.4% benefit from
acquisitions which was primarily driven by the acquisition of
automotive stores in the U.S., a 0.2% increase in comparable sales
and a net 0.2% favorable impact of foreign currency and other. The
additional selling day in the U.S. positively impacted Global
Automotive sales growth by approximately 0.9%. Segment profit of
$262 million decreased 18.6%, with segment profit margin of
6.9%, down 200 basis points from last year.
Industrial Parts Group ("Industrial")
Global Industrial sales were $2.2 billion, down 1.2%
from the same period in 2023, with a 1.3% benefit from
acquisitions, offset by a 2.4% decrease in comparable sales
and 0.1% unfavorable impact of foreign currency. The additional
selling day in the U.S. positively impacted Global Industrial sales
growth by approximately 1.4%. Segment profit of $259 million
decreased 8.5%, with a segment profit margin of 11.9%, down
100 basis points from the same period of the prior year.
Nine Months 2024 Results
Sales for the nine months ended September
30 were $17.7 billion, up 1.2% from the same
period in 2023. Net income for the nine months was $771 million, or $5.51 per diluted share, compared to $7.08
per diluted share in the prior year period. Adjusted net income
decreased 8.4% to $915 million
compared to net income of $1 billion
in the prior year period. Adjusted diluted earnings per share was
$6.55 compared to $7.08 in the prior year period, a decrease of
7.5%.
Balance Sheet, Cash Flow and Capital Allocation
The company generated cash flow from operations of $1.1 billion for the first nine months of 2024.
Net cash used in investing activities was $1.2 billion,
including $386 million for capital expenditures and
$954 million for M&A. The company also used
$125 million in cash for financing activities, including
$411 million for quarterly dividends paid to shareholders and
$112 million for stock repurchases.
Free cash flow was $711 million for the first nine months of
2024. 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 $2.6 billion of
total liquidity. Total liquidity consists of $1.1 billion in cash and cash equivalents
and $1.5 billion available on the revolving credit
facility.
2024 Outlook
The company is revising full-year 2024 guidance previously
provided in its earnings release on July 23,
2024. 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, 2024
|
|
|
Previous
Outlook
|
|
Updated
Outlook
|
Total sales
growth
|
|
1% to 3%
|
|
1% to 2%
|
Automotive sales
growth
|
|
1% to 3%
|
|
3% to 4%
|
Industrial sales
growth
|
|
0% to 2%
|
|
-2% to -1%
|
Diluted earnings per
share
|
|
$8.55 to
$8.75
|
|
$6.60 to
$6.80
|
Adjusted diluted
earnings per share
|
|
$9.30 to
$9.50
|
|
$8.00 to
$8.20
|
Effective tax
rate
|
|
Approximately
24%
|
|
Approximately
24%
|
Net cash provided by
operating activities
|
|
$1.3 billion to $1.5
billion
|
|
$1.3 billion to $1.5
billion
|
Free cash
flow
|
|
$800 million to $1.0
billion
|
|
$800 million to $1.0
billion
|
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. For example, for the three and nine
months ended September 30, 2024,
adjusted net income and adjusted diluted earnings per share exclude
costs relating to our global restructuring initiative and
acquisition of Motor Parts and Equipment Corporation, which are
one-time events that do not recur in the ordinary course of our
business. 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. Our calculation of
comparable sales is computed using total business days for the
period. The company considers this metric useful to investors
because it provides greater transparency into management's view and
assessment of the company's 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
Genuine Parts Company will hold a conference call today at
8:30 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 the company's investor
relations website. The call is also available by dialing
800-836-8184. A replay of the call will be available on the
company's website or toll-free at 888-660-6345, conference ID
72988#, two hours after the completion of the call.
About Genuine Parts Company
Established in 1928, Genuine Parts Company is a leading global
service provider of automotive and industrial replacement parts and
value-added solutions. Our Automotive Parts Group operates across
the U.S., Canada, Mexico, Australasia, France, the U.K., Ireland, Germany, Poland, the
Netherlands, Belgium,
Spain and Portugal, while our Industrial Parts Group
serves customers in the U.S., Canada, Mexico and Australasia. We keep the world
moving with a vast network of over 10,700 locations spanning 17
countries supported by more than 60,000 teammates. Learn more at
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 revised full-year 2024 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, the conflict in the
Gaza strip and other unrest in the
Middle East; volatility in oil
prices; significant cost increases, such as rising fuel and freight
expenses; natural disasters or adverse weather conditions, such as
recent severe hurricanes; public health emergencies, 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; 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 2023 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
September 30,
|
|
Nine Months Ended
September 30,
|
(in thousands, except per share data)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Net sales
|
|
$ 5,970,198
|
|
$ 5,824,602
|
|
$
17,716,396
|
|
$
17,504,726
|
Cost of goods
sold
|
|
3,771,757
|
|
3,715,361
|
|
11,262,997
|
|
11,247,341
|
Gross profit
|
|
2,198,441
|
|
2,109,241
|
|
6,453,399
|
|
6,257,385
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling,
administrative and other expenses
|
|
1,722,400
|
|
1,551,799
|
|
4,944,783
|
|
4,644,696
|
Depreciation and
amortization
|
|
106,036
|
|
83,860
|
|
295,848
|
|
261,948
|
Provision for doubtful
accounts
|
|
7,119
|
|
8,417
|
|
19,008
|
|
22,378
|
Restructuring and
other costs
|
|
41,023
|
|
—
|
|
153,825
|
|
—
|
Total operating
expenses
|
|
1,876,578
|
|
1,644,076
|
|
5,413,464
|
|
4,929,022
|
Non-operating (income)
expense:
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
27,818
|
|
15,827
|
|
67,429
|
|
49,146
|
Other
|
|
(3,548)
|
|
(15,722)
|
|
(36,469)
|
|
(44,338)
|
Total non-operating
(income) expense
|
|
24,270
|
|
105
|
|
30,960
|
|
4,808
|
Income before income
taxes
|
|
297,593
|
|
465,060
|
|
1,008,975
|
|
1,323,555
|
Income taxes
|
|
71,011
|
|
113,862
|
|
237,955
|
|
323,906
|
Net income
|
|
$
226,582
|
|
$
351,198
|
|
$
771,020
|
|
$
999,649
|
Dividends declared per
common share
|
|
$
1.000
|
|
$
0.950
|
|
$
3.000
|
|
$
2.850
|
Basic earnings per
share
|
|
$
1.63
|
|
$
2.50
|
|
$
5.53
|
|
$
7.11
|
Diluted earnings per
share
|
|
$
1.62
|
|
$
2.49
|
|
$
5.51
|
|
$
7.08
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding
|
|
139,193
|
|
140,335
|
|
139,326
|
|
140,569
|
Dilutive effect of
stock options and non-vested restricted stock awards
|
|
406
|
|
599
|
|
500
|
|
716
|
Weighted average common
shares outstanding – assuming dilution
|
|
139,599
|
|
140,934
|
|
139,826
|
|
141,285
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
SEGMENT
INFORMATION
(UNAUDITED)
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(in
thousands)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Net sales:
|
|
|
|
|
|
|
|
|
Automotive
|
|
$ 3,799,789
|
|
$ 3,626,943
|
|
$
11,100,800
|
|
$
10,787,769
|
Industrial
|
|
2,170,409
|
|
2,197,659
|
|
6,615,596
|
|
6,716,957
|
Total net
sales
|
|
$ 5,970,198
|
|
$ 5,824,602
|
|
$
17,716,396
|
|
$
17,504,726
|
Segment
profit:
|
|
|
|
|
|
|
|
|
Automotive
|
|
$
262,195
|
|
$
322,004
|
|
$
849,106
|
|
$
915,771
|
Industrial
|
|
258,753
|
|
282,807
|
|
806,433
|
|
828,166
|
Interest expense,
net
|
|
(27,818)
|
|
(15,827)
|
|
(67,429)
|
|
(49,146)
|
Intangible asset
amortization
|
|
(36,292)
|
|
(33,667)
|
|
(105,077)
|
|
(113,414)
|
Corporate
expense
|
|
(113,949)
|
|
(90,257)
|
|
(283,695)
|
|
(257,822)
|
Other unallocated costs
(1)
|
|
(45,296)
|
|
—
|
|
(190,363)
|
|
—
|
Income before income
taxes
|
|
$
297,593
|
|
$
465,060
|
|
$
1,008,975
|
|
$
1,323,555
|
|
(1)
The following table presents a
summary of the other unallocated costs:
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(in
thousands)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Other unallocated
costs:
|
|
|
|
|
|
|
|
|
Restructuring and
other costs (2)
|
|
$
(41,023)
|
|
$
—
|
|
$ (161,312)
|
|
$
—
|
Acquisition and
integration related costs and other (3)
|
|
(4,273)
|
|
—
|
|
(29,051)
|
|
—
|
Total other unallocated
costs
|
|
$
(45,296)
|
|
$
—
|
|
$ (190,363)
|
|
$
—
|
|
|
(2)
|
Amount reflects the
global restructuring initiative which includes a voluntary
retirement offer in the U.S., inventory liquidation costs, and
rationalization and optimization of certain distribution centers,
stores and other facilities.
|
(3)
|
Amount primarily
reflects integration costs related to the completion of the
acquisitions of Motor Parts and Equipment Corporation ("MPEC") in
April 2024 and Walker Automotive Supply, Inc. ("Walker") in July
2024, including professional services costs, personnel costs, and
lease and other exit costs.
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
CONDENSED CONSOLIDATED
BALANCE SHEETS
(UNAUDITED)
|
|
(in thousands, except
share and per share data)
|
|
September 30,
2024
|
|
December 31,
2023
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,078,118
|
|
$
1,102,007
|
Trade accounts
receivable, less allowance for doubtful accounts (2024 – $64,138;
2023 – $56,608)
|
|
2,380,518
|
|
2,223,431
|
Merchandise
inventories, net
|
|
5,527,034
|
|
4,676,686
|
Prepaid expenses and
other current assets
|
|
1,723,832
|
|
1,603,728
|
Total current
assets
|
|
10,709,502
|
|
9,605,852
|
Goodwill
|
|
3,034,339
|
|
2,734,681
|
Other intangible
assets, less accumulated amortization
|
|
1,915,832
|
|
1,792,913
|
Property, plant and
equipment, less accumulated depreciation (2024 – $1,783,163; 2023 –
$1,592,658)
|
|
1,909,522
|
|
1,616,785
|
Operating lease
assets
|
|
1,665,818
|
|
1,268,742
|
Other assets
|
|
1,024,165
|
|
949,481
|
Total assets
|
|
$ 20,259,178
|
|
$ 17,968,454
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Trade accounts
payable
|
|
$
6,100,534
|
|
$
5,499,536
|
Current portion of
debt
|
|
810,982
|
|
355,298
|
Dividends
payable
|
|
139,111
|
|
132,635
|
Other current
liabilities
|
|
2,072,781
|
|
1,839,640
|
Total current
liabilities
|
|
9,123,408
|
|
7,827,109
|
Long-term
debt
|
|
3,806,950
|
|
3,550,930
|
Operating lease
liabilities
|
|
1,372,283
|
|
979,938
|
Pension and other
post–retirement benefit liabilities
|
|
224,019
|
|
219,644
|
Deferred tax
liabilities
|
|
483,262
|
|
437,674
|
Other long-term
liabilities
|
|
539,102
|
|
536,174
|
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 –
2024 – 139,078,065 shares; 2023 – 139,567,071
shares
|
|
139,078
|
|
139,567
|
Additional paid-in
capital
|
|
193,491
|
|
173,025
|
Accumulated other
comprehensive loss
|
|
(942,852)
|
|
(976,872)
|
Retained
earnings
|
|
5,306,755
|
|
5,065,327
|
Total parent
equity
|
|
4,696,472
|
|
4,401,047
|
Noncontrolling
interests in subsidiaries
|
|
13,682
|
|
15,938
|
Total equity
|
|
4,710,154
|
|
4,416,985
|
Total liabilities and
equity
|
|
$ 20,259,178
|
|
$ 17,968,454
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
|
Nine Months Ended
September 30,
|
(in
thousands)
|
|
2024
|
|
2023
|
Operating
activities:
|
|
|
|
|
Net income
|
|
$
771,020
|
|
$
999,649
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
295,848
|
|
261,948
|
Share-based
compensation
|
|
37,280
|
|
47,340
|
Excess tax benefits
from share-based compensation
|
|
(8,301)
|
|
(6,770)
|
Other operating
activities, including changes in operating assets and
liabilities
|
|
378
|
|
—
|
Net cash provided by
operating activities
|
|
1,096,225
|
|
1,082,446
|
Investing
activities:
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(385,590)
|
|
(349,858)
|
Proceeds from sale of
property, plant and equipment
|
|
74,215
|
|
7,339
|
Acquisitions of
businesses
|
|
(954,207)
|
|
(218,177)
|
Proceeds from
divestitures of businesses
|
|
3,401
|
|
—
|
Proceeds from sale of
investments
|
|
—
|
|
80,482
|
Other investing
activities
|
|
16,989
|
|
6,785
|
Net cash used in
investing activities
|
|
(1,245,192)
|
|
(473,429)
|
Financing
activities:
|
|
|
|
|
Proceeds from
debt
|
|
797,602
|
|
2,543,882
|
Payments on
debt
|
|
(124,337)
|
|
(2,544,619)
|
Shares issued from
employee incentive plans
|
|
(16,524)
|
|
(23,689)
|
Dividends
paid
|
|
(411,396)
|
|
(393,420)
|
Purchases of
stock
|
|
(112,499)
|
|
(172,347)
|
Other financing
activities
|
|
(8,018)
|
|
(8,826)
|
Net cash used in
financing activities
|
|
124,828
|
|
(599,019)
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
250
|
|
(8,824)
|
Net decrease in cash
and cash equivalents
|
|
(23,889)
|
|
1,174
|
Cash and cash
equivalents at beginning of period
|
|
1,102,007
|
|
653,463
|
Cash and cash
equivalents at end of period
|
|
$ 1,078,118
|
|
$
654,637
|
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
September 30,
|
|
Nine Months Ended
September 30,
|
(in
thousands)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
GAAP net
income
|
|
$
226,582
|
|
$
351,198
|
|
$
771,020
|
|
$
999,649
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Restructuring and
other costs (1)
|
|
41,023
|
|
—
|
|
161,312
|
|
—
|
Acquisition and
integration related costs and other (2)
|
|
4,273
|
|
—
|
|
29,051
|
|
—
|
Total
adjustments
|
|
45,296
|
|
—
|
|
190,363
|
|
—
|
Tax impact of
adjustments (3)
|
|
(8,865)
|
|
—
|
|
(45,911)
|
|
—
|
Adjusted net
income
|
|
$
263,013
|
|
$
351,198
|
|
$
915,472
|
|
$
999,649
|
|
The table below
represents amounts per common share assuming dilution:
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(in thousands, except
per share data)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
GAAP diluted earnings
per share
|
|
$
1.62
|
|
$
2.49
|
|
$
5.51
|
|
$
7.08
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Restructuring and
other costs (1)
|
|
0.29
|
|
—
|
|
1.15
|
|
—
|
Acquisition and
integration related costs and other (2)
|
|
0.03
|
|
—
|
|
0.22
|
|
—
|
Total
adjustments
|
|
0.32
|
|
—
|
|
1.37
|
|
—
|
Tax impact of
adjustments (3)
|
|
(0.06)
|
|
—
|
|
(0.33)
|
|
—
|
Adjusted diluted
earnings per share
|
|
$
1.88
|
|
$
2.49
|
|
$
6.55
|
|
$
7.08
|
Weighted average common
shares outstanding – assuming dilution
|
|
139,599
|
|
140,934
|
|
139,826
|
|
141,285
|
|
|
(1)
|
Amount reflects the
global restructuring initiative which includes a voluntary
retirement offer in the U.S., inventory liquidation costs,
and rationalization and optimization of certain distribution
centers, stores and other facilities.
|
(2)
|
Amount primarily
reflects ongoing acquisition and integration costs related to the
acquisitions of MPEC in April 2024 and Walker in July 2024,
including professional services costs, personnel costs, and lease
and other exit costs.
|
(3)
|
We determine the tax
effect of non-GAAP adjustments by considering the tax laws and
statutory income tax rates applicable in the tax jurisdictions of
the underlying non-GAAP adjustments, including any related
valuation allowances. For the three and nine months ended September
30, 2024, we applied the statutory income tax rates to the taxable
portion of all of our adjustments, which resulted in a tax impact
of $9 million and $46 million.
|
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
September 30,
|
|
Nine Months Ended
September 30,
|
(in
thousands)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Line item:
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
$
—
|
|
$
—
|
|
$
7,487
|
|
$
—
|
Selling,
administrative and other expenses
|
|
4,273
|
|
—
|
|
29,051
|
|
—
|
Restructuring and
other costs
|
|
41,023
|
|
—
|
|
153,825
|
|
—
|
Total
adjustments
|
|
$
45,296
|
|
$
—
|
|
$
190,363
|
|
$
—
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
CHANGE IN NET SALES
SUMMARY
(UNAUDITED)
|
|
|
|
Three Months Ended
September 30, 2024
|
|
|
Comparable
Sales
|
|
Acquisitions
|
|
Foreign
Currency
|
|
Other
|
|
GAAP Total
Net Sales
|
Automotive
|
|
0.2 %
|
|
4.4 %
|
|
0.5 %
|
|
(0.3) %
|
|
4.8 %
|
Industrial
|
|
(2.4) %
|
|
1.3 %
|
|
(0.1) %
|
|
— %
|
|
(1.2) %
|
Total Net
Sales
|
|
(0.8) %
|
|
3.2 %
|
|
0.3 %
|
|
(0.2) %
|
|
2.5 %
|
|
|
|
|
|
Nine Months Ended
September 30, 2024
|
|
|
Comparable
Sales
|
|
Acquisitions
|
|
Foreign
Currency
|
|
Other
|
|
GAAP Total
Net Sales
|
Automotive
|
|
(0.1) %
|
|
3.4 %
|
|
0.1 %
|
|
(0.5) %
|
|
2.9 %
|
Industrial
|
|
(2.2) %
|
|
0.8 %
|
|
(0.1) %
|
|
— %
|
|
(1.5) %
|
Total Net
Sales
|
|
(0.9) %
|
|
2.4 %
|
|
— %
|
|
(0.3) %
|
|
1.2 %
|
GENUINE PARTS COMPANY
AND SUBSIDIARIES
RECONCILIATION OF GAAP
NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH
FLOW
(UNAUDITED)
|
|
|
|
Nine Months Ended
September 30,
|
(in
thousands)
|
|
2024
|
|
2023
|
Net cash provided by
operating activities
|
|
$
1,096,225
|
|
$
1,082,446
|
Purchases of property,
plant and equipment
|
|
(385,590)
|
|
(349,858)
|
Free Cash
Flow
|
|
$
710,635
|
|
$
732,588
|
|
|
|
For the Year Ending
December 31, 2024
|
|
|
Previous
Outlook
|
|
Updated
Outlook
|
Net cash provided by
operating activities
|
|
$1.3 billion to $1.5
billion
|
|
$1.3 billion to $1.5
billion
|
Purchases of property,
plant and equipment
|
|
~$500
million
|
|
~$500
million
|
Free Cash
Flow
|
|
$800 million to $1.0
billion
|
|
$800 million to $1.0
billion
|
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SOURCE Genuine Parts Company