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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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 Commission File
September 30, 1996 Number 1-5690
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GENUINE PARTS COMPANY
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(Exact name of registrant as specified in its charter)
GEORGIA 58-0254510
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2999 CIRCLE 75 PARKWAY, ATLANTA, GEORGIA 30339
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (770)953-1700
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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
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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).
120,395,546
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(Shares of Common Stock)
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FORM 10-Q
PART 1 - FINANCIAL INFORMATION
Item 1 - Financial Statements
GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS Sept. 30, Dec. 31,
1996 1995
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(Unaudited)
(in thousands)
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents ............................. $ 74,219 $ 44,254
Trade accounts receivable, less allowance
for doubtful accounts (1996 - $9,117; 1995 - $2,104) .. 640,967 565,305
Inventories - at lower of cost (substantially last-in,
first-out method) or market ........................... 1,188,056 1,127,456
Prepaid and other current accounts .................... 22,135 26,946
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TOTAL CURRENT ASSETS .............................. 1,925,377 1,763,961
Investments and other assets .......................... 214,122 206,932
Total property, plant and equipment, less allowance
for depreciation (1996 - $234,715; 1995 - $209,797) ... 334,120 303,239
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$2,473,619 $2,274,132
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and notes payable .................. $ 504,120 $ 376,704
Income taxes ........................................ 22,827 1,807
Dividends payable ................................... 40,471 38,401
Other current liabilities ........................... 58,262 58,612
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TOTAL CURRENT LIABILITIES ....................... 625,680 475,524
Long-term debt ...................................... 60,206 60,607
Deferred income taxes ............................... 58,690 58,690
Minority interests in subsidiaries .................. 34,016 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 - 120,395,546; 1995 - 121,913,040 .. 120,396 121,913
Additional paid-in capital .......................... -0- -0-
Retained earnings ................................... 1,574,631 1,528,969
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TOTAL SHAREHOLDERS' EQUITY ...................... 1,695,027 1,650,882
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$2,473,619 $2,274,132
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</TABLE>
See notes to condensed consolidated financial statements.
2
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FORM 10-Q
GENUINE PARTS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Sept. 30, Nine Months Ended Sept. 30,
------------------------------ ------------------------------
1996 1995 1996 1995
---- ---- ---- ----
(000 omitted except per share data)
<S> <C> <C> <C> <C>
Net sales ................................. $1,474,836 $1,362,481 $4,319,631 $3,952,423
Cost of goods sold ........................ 1,039,564 953,986 3,050,798 2,770,418
---------- ---------- ---------- ----------
435,272 408,495 1,268,833 1,182,005
Selling, administrative & other expenses .. 300,476 281,302 878,356 817,617
---------- ---------- ---------- ----------
Income before income taxes ................ 134,796 127,193 390,477 364,388
Income taxes .............................. 53,244 50,241 154,238 143,469
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NET INCOME ................................ $ 81,552 $ 76,952 $ 236,239 $ 220,919
========== ========== ========== ==========
Average common shares outstanding ......... 120,782 122,779 121,327 122,736
========== ========== ========== ==========
Net income per common share ............... $ .68 $ .63 $1.95 $ 1.80
========== ========== ========== ==========
Dividends declared per common share ....... $ .335 $ .315 $ 1.005 $ .945
========== ========== ========== ==========
</TABLE>
See notes to condensed consolidated financial statements.
3
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FORM 10-Q
GENUINE PARTS COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months
Ended Sept. 30,
---------------
(000 omitted)
Cash Provided By:
1996 1995
---- ----
<S> <C> <C>
OPERATING ACTIVITIES:
Net income ...................................................................... $ 236,239 $ 220,919
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation .................................................................. 39,171 31,634
Other ......................................................................... 5,587 2,639
Changes in operating assets and liabilities:
Trade accounts receivable ................................................... (75,662) (93,642)
Merchandise inventories ..................................................... (60,600) (45,445)
Trade accounts payable ...................................................... 90,116 (8,890)
Income taxes payable ........................................................ 21,020 2,569
Other operating assets and liabilities ...................................... 4,414 (8,982)
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NET CASH PROVIDED BY OPERATING ACTIVITIES ........................................ 260,285 100,802
INVESTING ACTIVITIES:
Purchase of property, plant and equipment ....................................... (77,818) (70,441)
Other investing activities ...................................................... 623 (13,054)
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NET CASH USED IN INVESTING ACTIVITIES ............................................ (77,195) (83,495)
FINANCING ACTIVITIES:
Dividends paid .................................................................. (119,825) (112,577)
Purchase of stock ............................................................... (68,729) -0-
Other financing activities ...................................................... 35,429 42,783
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NET CASH USED IN FINANCING ACTIVITIES ............................................ (153,125) (69,794)
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NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ............................. 29,965 (52,487)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ................................. 44,254 82,410
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CASH AND CASH EQUIVALENTS AT END OF PERIOD ....................................... $ 74,219 $ 29,923
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</TABLE>
See notes to condensed consolidated financial statements.
4
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FORM 10-Q
NOTES TO FINANCIAL STATEMENTS
Note A - Basis of Presentation
The accompanying unaudited condensed consolidated 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 nine months ended September 30,
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
third quarter of 1996. Sales for the quarter were $1.5 billion, up 8% over the
same period in 1995. Net income in the quarter advanced 6% to $82 million. On
a per-share basis, net income in the quarter was $.68 versus $.63 in the same
quarter of the prior year.
For the nine months ended September 30, 1996, sales totaled $4.3 billion, up 9%
over the same period in 1995, while net income was $236 million, an increase of
7%. Earnings per share were $1.95 for the first nine months of 1996 and $1.80
for the same period in 1995.
Sales for the Automotive Parts Group advanced 7% for the quarter and for the
first nine months, reflecting the success of NAPA marketing programs and
market share gain. Sales for the Industrial Parts Group increased 11% for the
quarter and 12% for the nine months ended September 30, 1996, reflecting strong
industrial production and factory utilization. The Office Products Group was
up 9% for the quarter and 12% for the nine month period as service levels
continue to be outstanding and their marketing programs continue to improve.
Cost of goods sold increased slightly as a percentage of net sales over the
same quarter the prior year. Selling, administrative and other expenses
increased 7% for the quarter and for the nine months. The percentage of
selling, administrative and other expenses to net sales decreased slightly, due
mostly to improved expense control.
The ratio of current assets to current liabilities remains very good at 3.1 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 exhibits are filed as part of this report:
Exhibit 3.1 Restated Articles of Incorporation of the Company
(incorporated herein by reference from the Company's
Annual Report on Form 10-K, dated March 3, 1995).
Exhibit 3.2 Bylaws of the Company, as amended (incorporated herein by
reference from the Company's Annual Report on Form 10-K,
dated March 5, 1993).
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 September 30, 1996.
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FORM 10-Q
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 October 30, 1996 /s/ Jerry W. Nix
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Jerry W. Nix
Senior Vice President - Finance
/s/ George W. Kalafut
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George W. Kalafut
Executive Vice President - Finance and
Administration (Principal Financial and
Accounting Officer)
6
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF GENUINE PARTS COMPANY FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 74,219
<SECURITIES> 0
<RECEIVABLES> 640,967
<ALLOWANCES> 9,117
<INVENTORY> 1,188,056
<CURRENT-ASSETS> 1,925,377
<PP&E> 334,120
<DEPRECIATION> 234,715
<TOTAL-ASSETS> 2,473,619
<CURRENT-LIABILITIES> 625,680
<BONDS> 60,206
0
0
<COMMON> 120,396
<OTHER-SE> 1,574,631
<TOTAL-LIABILITY-AND-EQUITY> 2,473,619
<SALES> 4,319,631
<TOTAL-REVENUES> 4,319,631
<CGS> 3,050,798
<TOTAL-COSTS> 3,050,798
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 390,477
<INCOME-TAX> 154,238
<INCOME-CONTINUING> 236,239
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 236,239
<EPS-PRIMARY> 1.95
<EPS-DILUTED> 1.95
</TABLE>
