<PAGE> 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, 1996 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 (770) 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).
121,759,614
---------------
(Shares of Common Stock)
<PAGE> 2
FORM 10-Q
PART 1 - FINANCIAL INFORMATION
Item 1 - Financial Statements
GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS Mar. 31, Dec. 31,
------ 1996 1995
---- ----
(Unaudited)
(in thousands)
CURRENT ASSETS
- --------------
<S> <C> <C>
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 73,679 44,254
Trade accounts receivable, less allowance
for doubtful accounts (1996 - $6,650; 1995 - $ 2,104) . . . . . . . . . . . . . . . . . . . . 631,384 565,305
Inventories - at lower of cost (substantially last-in,
first-out method) or market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,120,315 1,127,456
Prepaid and other current accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,948 26,946
------------ -----------
TOTAL CURRENT ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,846,326 1,763,961
Investments and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208,653 206,932
Total property, plant and equipment, less allowance
for depreciation (1996 - $ 217,065; 1995 - $209,797 ) . . . . . . . . . . . . . . . . . . . . 309,695 303,239
------------ -----------
$ 2,364,674 $ 2,274,132
============ ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
- -------------------
Accounts and notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 397,404 $ 376,704
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,495 1,807
Dividends payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,828 38,401
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,815 58,612
------ ------
TOTAL CURRENT LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 541,542 475,524
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,550 60,607
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,690 58,690
Minority interests in subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,277 28,429
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 - 1996 - 121,759,614; 1995 - 121,913,040 . . . . . . . . . . . . . . . . . . . 121,760 121,913
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,182 -0-
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,547,673 1,528,969
------------ -----------
TOTAL SHAREHOLDERS' EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,674,615 1,650,882
------------ -----------
$ 2,364,674 $ 2,274,132
============ ===========
</TABLE>
See notes to condensed consolidated financial statements.
2
<PAGE> 3
See notes to condensed consolidated financial statements.
<PAGE> 4
FORM 10-Q
GENUINE PARTS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31,
1996 1995
---- ----
(000 omitted except per share data)
<S> <C> <C>
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,399,922 $1,281,230
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 990,302 898,676
------------ --------
409,620 382,554
Selling, administrative & other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 287,514 269,008
------------ --------
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122,106 113,546
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,232 44,510
------------ --------
NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 73,874 $ 69,036
============ ========
Average common shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121,809 122,671
============ ========
Net income per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .61 $ .56
============ ========
Dividends declared per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .335 $ .315
============ ========
See notes to condensed consolidated financial statements.
</TABLE>
3
<PAGE> 5
FORM 10-Q
GENUINE PARTS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months
Ended Mar. 31,
--------------
(000 omitted)
Cash Provided By:
1996 1995
---- ----
<S> <C> <C>
OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 73,874 $ 69,036
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,740 10,395
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 848 804
Changes in operating assets and liabilities:
Trade accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (66,079) (69,726)
Merchandise inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,141 7,912
Trade accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,700 (28,332)
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,688 38,710
Other operating assets and liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 2,154 (12,528)
---------- ----------
NET CASH PROVIDED BY OPERATING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . 117,066 16,271
INVESTING ACTIVITIES:
Purchase of property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . (20,550) (23,726)
Other investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,019 (1,922)
---------- ----------
NET CASH USED IN INVESTING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15,531) (25,648)
FINANCING ACTIVITIES:
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (38,401) (35,246)
Purchase of stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,342) -0-
Other financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19,367) 2,300
---------- ----------
NET CASH USED IN FINANCING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (72,110) (32,946)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . . . 29,425 (42,323)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD . . . . . . . . . . . . . . . . . . . . . . . 44,254 82,410
---------- ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD . . . . . . . . . . . . . . . . . . . . . . . . . . $ 73,679 $ 40,087
========== =========
</TABLE>
See notes to condensed consolidated financial statements.
4
<PAGE> 6
FORM 10-Q
NOTES TO FINANCIAL STATEMENTS
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, 1996,
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 1996. Sales for the quarter were $1.4 billion, up 9% over the
same period in 1995. Net income in the quarter advanced 7% to $73.9 million.
On a per-share basis, net income in the quarter was 61 cents versus 56 cents in
the same quarter of the prior year.
All three business segments reflected good sales progress in the first quarter.
The Automotive Parts Group advanced its sales by 7% over the first quarter of
1995 reflecting that the NAPA growth initiatives are working well and increased
market share. The Industrial Parts Group had an excellent quarter with sales
advancing an impressive 11% over the same quarter last year. The Industrial
Group benefited from geographic expansion and strong industrial production
during the quarter. S.P. Richards Company, the Office Products Group,
continues to move steadily forward and posted a sales gain of 13% for the
quarter, reflecting continued geographic expansion and increased market share.
The ratio of current assets to current liabilities remains very good at 3.4 to
1 and the Company's cash position is good.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) The following exhibit is filed as part of this report:
Exhibit 27 Financial Data Schedule (for SEC use only).
(b) No reports on Form 8-K were filed by the registrant during the quarter
ended March 31, 1996.
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 April 30, 1996 /s/ Jerry 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
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF GENUINE PARTS COMPANY FOR THE QUARTER ENDED MARCH 31,
1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 73,679
<SECURITIES> 0
<RECEIVABLES> 631,384
<ALLOWANCES> 6,650
<INVENTORY> 1,120,315
<CURRENT-ASSETS> 1,846,326
<PP&E> 309,695
<DEPRECIATION> 217,065
<TOTAL-ASSETS> 2,364,674
<CURRENT-LIABILITIES> 541,542
<BONDS> 60,550
0
0
<COMMON> 121,760
<OTHER-SE> 1,552,855
<TOTAL-LIABILITY-AND-EQUITY> 2,364,674
<SALES> 1,399,922
<TOTAL-REVENUES> 1,399,922
<CGS> 990,302
<TOTAL-COSTS> 990,302
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 122,106
<INCOME-TAX> 48,232
<INCOME-CONTINUING> 73,874
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 73,874
<EPS-PRIMARY> .61
<EPS-DILUTED> .61
</TABLE>
