Genuine Parts Company Reports Sales And Earnings For The Third Quarter Ended September 30, 2019

- Record Sales of $5.0 billion, Up 6.2% -

Published

ATLANTA, Oct. 17, 2019 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC) announced today sales and earnings for the third quarter and nine months ended September 30, 2019.

Sales for the third quarter ended September 30, 2019 were a record $5.0 billion, a 6.2% increase compared to $4.7 billion for the same period in 2018. Total sales for the third quarter included the contribution of 1.2% comparable growth and 6.7% from acquisitions, offset by a 1.0% negative impact from foreign currency translation and 0.7% due primarily to the sale of Grupo Auto Todo in the first quarter of 2019. Net income for the third quarter was $227.5 million and earnings per share on a diluted basis were $1.56. Before the impact of certain transaction costs and other income primarily related to the acquisition of Inenco Group (Inenco) and the sale of EIS, Inc. (EIS), the Electrical Specialties Group of Motion Industries, adjusted net income was $219.0 million, or $1.50 per diluted share.

Third quarter sales for the Automotive Parts Group were up 5.3%, including a 1.8% comparable sales increase, a 6.5% benefit from acquisitions and an unfavorable foreign currency translation of 1.8%. In addition, automotive sales were impacted by 1.2% due primarily to the sale of Grupo Auto Todo. Sales for the Industrial Parts Group were up 9.9%, including a 0.9% comparable sales increase and 9.0% from acquisitions. Sales for the Business Products Group were down 0.9%, consisting primarily of the change in comparable sales growth.

Paul Donahue, Chairman and Chief Executive Officer, commented, "Our third quarter results were highlighted by several accomplishments, including our achieving the $5 billion sales mark for the first time in the history of the Company. In addition, we were pleased to report positive comparable sales in our U.S., Canadian and Australasian automotive businesses as well as our Industrial operations, and we further improved our gross margin. This translated to operating margin expansion in the Industrial and Business Products segments, an improved overall margin performance and strong cash flows for the quarter."

Mr. Donahue added, "Our team was also active executing on our strategy to further optimize our portfolio. We closed on the Inenco industrial acquisition and the Sparesbox ecommerce investment on July 1st, and we divested of Motion's Electrical Specialties Group on September 30th. We also made significant progress on our action plans to accelerate our ongoing cost savings efforts and develop expense reduction initiatives designed to more effectively address our cost structure, drive meaningful savings and deliver incremental value."

Sales for the nine months ended September 30, 2019 were $14.7 billion, a 3.9% increase compared to $14.1 billion for the same period in 2018. Net income for the nine months was $612.2 million and earnings per share on a diluted basis were $4.18. Before transaction costs and other income, adjusted net income was $636.5 million, or $4.34 per diluted share, for the nine months.

Mr. Donahue concluded, "We were pleased to perform in-line with our expectations for the quarter and are committed to our growth strategy and cost savings initiatives over the near and longer terms. We believe our focus in these areas will serve to deliver improved results and create significant long-term value for our shareholders."

2019 Outlook

In consideration of our results thus far in 2019, as well as the impact of the sale of EIS on September 30, 2019, the Company now expects sales to increase approximately 3.5%. This updated sales outlook represents a change from the Company's previous guidance for a 4.5% to 5.5% sales increase.

The Company expects diluted earnings per share to range from $5.44 to $5.52 and is updating its outlook for adjusted diluted earnings per share, which excludes any nine month and future transaction and other costs and income, to $5.60 to $5.68. This is a change from the Company's prior guidance of $5.65 to $5.75 and is primarily due to the sale of EIS. The Company continues to expect a tax rate of approximately 25% in 2019.

Non-GAAP Information

This release contains certain financial information not derived in accordance with United States generally accepted accounting principles ("GAAP"). These items include adjusted net income and adjusted diluted earnings per share. The Company believes that the presentation of adjusted net income and adjusted net income per common share, which are not calculated in accordance with GAAP, 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 the Company's core operations. The Company considers these metrics useful to investors because they provide greater transparency into management's view and assessment of the Company's ongoing operating performance by removing items management believes are not representative of our continuing operations and may distort our longer-term operating trends. We believe these measures to be useful to enhance the comparability of our results from period to period and with our competitors, as well as to show ongoing results from operations distinct from items that are infrequent or not associated with the Company's core operations. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The Company has included a reconciliation of this additional information to the most comparable GAAP measure following the financial statements below.

Conference Call

Genuine Parts Company will hold a conference call today at 11:00 a.m. Eastern time to discuss the results of the quarter and the future outlook. Interested parties may listen to the call on the Company's website, www.genpt.com, by clicking "Investors," or by dialing 877-407-0789, conference ID 13694686. A replay will also be available on the Company's website or at 844-512-2921, conference ID 13694686, two hours after the completion of the call until 12:00 a.m. Eastern time on November 1, 2019.

Forward Looking Statements

Some statements in this press release, as well as in other materials we file with the Securities and Exchange Commission ("SEC") or otherwise release to the public and in materials that we 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. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking. Forward-looking statements may relate, for example, to the anticipated strategic benefits, synergies and other attributes resulting from acquisitions, as well as future operations, prospects, strategies, financial condition, economic performance (including growth and earnings), industry conditions and demand for our products and services.

The Company cautions that its 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, the Company's ability to successfully integrate acquired businesses into the Company, including the challenges associated with the integration of processes and systems to ensure the adequacy of our internal controls in regard to the Alliance Automotive Group business, and to realize the anticipated synergies and benefits; changes in the European aftermarket; the Company's ability to successfully implement its business initiatives in each of its three business segments; slowing demand for the Company's products; changes in national and international legislation or government regulations or policies, including new import tariffs and the unpredictability of additional tariffs and data security policies and requirements; changes in general economic conditions, including unemployment, inflation (including the impact of potential tariffs) or deflation and the United Kingdom's referendum to exit from the European Union, commonly known as Brexit; changes in tax policies; volatile exchange rates; volatility in oil prices; significant cost increases, such as rising fuel and freight expenses; labor shortages; uncertain credit markets and other macroeconomic conditions; competitive product, service and pricing pressures; the ability to maintain favorable vendor arrangements and relationships; disruptions in our vendors' operations, including the impact of tariffs and trade considerations on their operations and output, as required to meet product demand; 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 the Company's information systems, as well as other risks and uncertainties discussed in the Company's Annual Report on Form 10-K for 2018 and from time to time in the Company's subsequent filings with the SEC.

Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its 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.

About Genuine Parts Company

Genuine Parts Company is a distributor of automotive replacement parts in the U.S., Canada, Mexico, Australasia, France, the U.K., Germany, Poland, the Netherlands and Belgium. The Company also distributes industrial replacement parts in the U.S., Canada, Mexico and Australasia through its Industrial Parts Group. S.P. Richards Company, the Business Products Group, distributes a variety of business products in the U.S. and in Canada. Further information is available at www.genpt.com.

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) 2019 2018 2019 2018
Net sales $ 5,015,023 $ 4,722,922 $ 14,686,116 $ 14,131,281
Cost of goods sold 3,390,597 3,238,687 9,954,941 9,689,653
Gross profit 1,624,426 1,484,235 4,731,175 4,441,628
Operating expenses:
Selling, administrative and other expenses 1,269,893 1,119,266 3,684,026 3,401,254
Depreciation and amortization 68,922 61,082 197,053 177,896
Provision for doubtful accounts 1,693 4,939 11,624 11,306
Total operating expenses 1,340,508 1,185,287 3,892,703 3,590,456
Non-operating (income) expenses:
Interest expense 26,485 25,084 73,664 75,669
Other (47,100) (17,871) (53,366) (45,822)
Total non-operating (income) expenses (20,615) 7,213 20,298 29,847
Income before income taxes 304,533 291,735 818,174 821,325
Income taxes 77,046 71,508 206,007 197,550
Net income $ 227,487 $ 220,227 $ 612,167 $ 623,775
Basic net income per common share $ 1.56 $ 1.50 $ 4.20 $ 4.25
Diluted net income per common share $ 1.56 $ 1.49 $ 4.18 $ 4.23
Dividends declared per common share $ .7625 $ .7200 $ 2.2875 $ 2.1600
Weighted average common shares outstanding 145,572 146,763 145,875 146,746
Dilutive effect of stock options and non-vested restricted stock awards 617 690 654 574
Weighted average common shares outstanding – assuming dilution 146,189 147,453 146,529 147,320

 

 

GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME SEGMENT INFORMATION
(UNAUDITED) (UNAUDITED)
Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30,
(in thousands, except per share data) 2019 2018 2019 2018 2019 2018 2019 2018
Net sales $ 5,015,023 $ 4,722,922 $ 14,686,116 $ 14,131,281 Net sales:
Cost of goods sold 3,390,597 3,238,687 9,954,941 9,689,653 Automotive $ 2,790,607 $ 2,649,716 $ 8,187,760 $ 7,950,176
Gross profit 1,624,426 1,484,235 4,731,175 4,441,628 Industrial 1,732,831 1,577,329 5,049,975 4,727,938
Operating expenses: Business products 491,585 495,877 1,448,381 1,453,167
Selling, administrative and other expenses 1,269,893 1,119,266 3,684,026 3,401,254 Total net sales $ 5,015,023 $ 4,722,922 $ 14,686,116 $ 14,131,281
Depreciation and amortization 68,922 61,082 197,053 177,896 Operating profit:
Provision for doubtful accounts 1,693 4,939 11,624 11,306 Automotive $ 222,100 $ 226,742 $ 629,713 $ 655,059
Total operating expenses 1,340,508 1,185,287 3,892,703 3,590,456 Industrial 137,525 119,153 394,887 356,535
Non-operating (income) expenses: Business products 21,611 19,846 63,727 62,869
Interest expense 26,485 25,084 73,664 75,669 Total operating profit 381,236 365,741 1,088,327 1,074,463
Other (47,100) (17,871) (53,366) (45,822) Interest expense, net (24,770) (21,881) (70,313) (70,713)
Total non-operating (income) expenses (20,615) 7,213 20,298 29,847 Intangible asset amortization (26,224) (23,593) (72,725) (66,802)
Income before income taxes 304,533 291,735 818,174 821,325 Corporate expense (1) (25,709) (28,532) (127,115) (115,623)
Income taxes 77,046 71,508 206,007 197,550 Income before income taxes $ 304,533 $ 291,735 $ 818,174 $ 821,325
Net income $ 227,487 $ 220,227 $ 612,167 $ 623,775
Basic net income per common share $ 1.56 $ 1.50 $ 4.20 $ 4.25
Diluted net income per common share $ 1.56 $ 1.49 $ 4.18 $ 4.23
Dividends declared per common share $ .7625 $ .7200 $ 2.2875 $ 2.1600
Weighted average common shares outstanding 145,572 146,763 145,875 146,746
Dilutive effect of stock options and non-vested restricted stock awards 617 690 654 574
Weighted average common shares outstanding – assuming dilution 146,189 147,453 146,529 147,320

GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME SEGMENT INFORMATION (1) Includes $12,413 of income and $25,809 of expense for the three and nine months ended September 30, 2019, respectively, in certain transaction and other costs related to acquisitions and dispositions. Also includes the realized currency losses incurred on the March 7, 2019 sale of Grupo Auto Todo and the September 30, 2019 sale of EIS, net of a gain from remeasuring the Company's preexisting 35% equity investment to fair value upon acquiring the remaining equity of Inenco on July 1, 2019.
(UNAUDITED) (UNAUDITED)
Includes $3,104 of income and $19,010 of expense for the three and nine months ended September 30, 2018, respectively, in certain transaction and other costs related to the acquisition of Alliance Automotive Group and the attempted Business Products Group spin-off, net of a $12,000 termination fee received in the third quarter of 2018.
Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30,
(in thousands, except per share data) 2019 2018 2019 2018 2019 2018 2019 2018
Net sales $ 5,015,023 $ 4,722,922 $ 14,686,116 $ 14,131,281 Net sales:
Cost of goods sold 3,390,597 3,238,687 9,954,941 9,689,653 Automotive $ 2,790,607 $ 2,649,716 $ 8,187,760 $ 7,950,176
Gross profit 1,624,426 1,484,235 4,731,175 4,441,628 Industrial 1,732,831 1,577,329 5,049,975 4,727,938
Operating expenses: Business products 491,585 495,877 1,448,381 1,453,167
Selling, administrative and other expenses 1,269,893 1,119,266 3,684,026 3,401,254 Total net sales $ 5,015,023 $ 4,722,922 $ 14,686,116 $ 14,131,281
Depreciation and amortization 68,922 61,082 197,053 177,896 Operating profit:
Provision for doubtful accounts 1,693 4,939 11,624 11,306 Automotive $ 222,100 $ 226,742 $ 629,713 $ 655,059
Total operating expenses 1,340,508 1,185,287 3,892,703 3,590,456 Industrial 137,525 119,153 394,887 356,535
Non-operating (income) expenses: Business products 21,611 19,846 63,727 62,869
Interest expense 26,485 25,084 73,664 75,669 Total operating profit 381,236 365,741 1,088,327 1,074,463
Other (47,100) (17,871) (53,366) (45,822) Interest expense, net (24,770) (21,881) (70,313) (70,713)
Total non-operating (income) expenses (20,615) 7,213 20,298 29,847 Intangible asset amortization (26,224) (23,593) (72,725) (66,802)
Income before income taxes 304,533 291,735 818,174 821,325 Corporate expense (1) (25,709) (28,532) (127,115) (115,623)
Income taxes 77,046 71,508 206,007 197,550 Income before income taxes $ 304,533 $ 291,735 $ 818,174 $ 821,325
Net income $ 227,487 $ 220,227 $ 612,167 $ 623,775
Basic net income per common share $ 1.56 $ 1.50 $ 4.20 $ 4.25
Diluted net income per common share $ 1.56 $ 1.49 $ 4.18 $ 4.23
Dividends declared per common share $ .7625 $ .7200 $ 2.2875 $ 2.1600
Weighted average common shares outstanding 145,572 146,763 145,875 146,746
Dilutive effect of stock options and non-vested restricted stock awards 617 690 654 574
Weighted average common shares outstanding – assuming dilution 146,189 147,453 146,529 147,320

 

 

GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME SEGMENT INFORMATION (1) Includes $12,413 of income and $25,809 of expense for the three and nine months ended September 30, 2019, respectively, in certain transaction and other costs related to acquisitions and dispositions. Also includes the realized currency losses incurred on the March 7, 2019 sale of Grupo Auto Todo and the September 30, 2019 sale of EIS, net of a gain from remeasuring the Company's preexisting 35% equity investment to fair value upon acquiring the remaining equity of Inenco on July 1, 2019. CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED) (UNAUDITED) (UNAUDITED)
Includes $3,104 of income and $19,010 of expense for the three and nine months ended September 30, 2018, respectively, in certain transaction and other costs related to the acquisition of Alliance Automotive Group and the attempted Business Products Group spin-off, net of a $12,000 termination fee received in the third quarter of 2018.
Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) September 30, 2019 September 30, 2018
(in thousands, except per share data) 2019 2018 2019 2018 2019 2018 2019 2018 Assets
Net sales $ 5,015,023 $ 4,722,922 $ 14,686,116 $ 14,131,281 Net sales: Current assets:
Cost of goods sold 3,390,597 3,238,687 9,954,941 9,689,653 Automotive $ 2,790,607 $ 2,649,716 $ 8,187,760 $ 7,950,176 Cash and cash equivalents $ 451,275 $ 359,105
Gross profit 1,624,426 1,484,235 4,731,175 4,441,628 Industrial 1,732,831 1,577,329 5,049,975 4,727,938 Trade accounts receivable, less allowance for doubtful accounts (2019 – $32,374; 2018 – $23,584) 2,739,971 2,655,888
Operating expenses: Business products 491,585 495,877 1,448,381 1,453,167 Merchandise inventories, net 3,718,307 3,536,503
Selling, administrative and other expenses 1,269,893 1,119,266 3,684,026 3,401,254 Total net sales $ 5,015,023 $ 4,722,922 $ 14,686,116 $ 14,131,281 Prepaid expenses and other current assets 1,149,118 998,999
Depreciation and amortization 68,922 61,082 197,053 177,896 Operating profit: Total current assets 8,058,671 7,550,495
Provision for doubtful accounts 1,693 4,939 11,624 11,306 Automotive $ 222,100 $ 226,742 $ 629,713 $ 655,059 Goodwill 2,278,066 2,097,990
Total operating expenses 1,340,508 1,185,287 3,892,703 3,590,456 Industrial 137,525 119,153 394,887 356,535 Other intangible assets, less accumulated amortization 1,523,656 1,420,480
Non-operating (income) expenses: Business products 21,611 19,846 63,727 62,869 Deferred tax assets 30,301 22,898
Interest expense 26,485 25,084 73,664 75,669 Total operating profit 381,236 365,741 1,088,327 1,074,463 Property, plant and equipment, less accumulated depreciation (2019 – $1,341,995; 2018 – $1,177,952) 1,118,912 937,740
Other (47,100) (17,871) (53,366) (45,822) Interest expense, net (24,770) (21,881) (70,313) (70,713) Operating lease assets 1,048,462
Total non-operating (income) expenses (20,615) 7,213 20,298 29,847 Intangible asset amortization (26,224) (23,593) (72,725) (66,802) Other assets 455,122 627,516
Income before income taxes 304,533 291,735 818,174 821,325 Corporate expense (1) (25,709) (28,532) (127,115) (115,623) Total assets $ 14,513,190 $ 12,657,119
Income taxes 77,046 71,508 206,007 197,550 Income before income taxes $ 304,533 $ 291,735 $ 818,174 $ 821,325
Net income $ 227,487 $ 220,227 $ 612,167 $ 623,775 Liabilities and equity
Basic net income per common share $ 1.56 $ 1.50 $ 4.20 $ 4.25 Current liabilities:
Diluted net income per common share $ 1.56 $ 1.49 $ 4.18 $ 4.23 Trade accounts payable $ 4,195,869 $ 4,036,006
Dividends declared per common share $ .7625 $ .7200 $ 2.2875 $ 2.1600 Current portion of debt 622,132 450,493
Weighted average common shares outstanding 145,572 146,763 145,875 146,746 Dividends payable 110,784 105,673
Dilutive effect of stock options and non-vested restricted stock awards 617 690 654 574 Other current liabilities 1,444,028 1,069,017
Weighted average common shares outstanding – assuming dilution 146,189 147,453 146,529 147,320 Total current liabilities 6,372,813 5,661,189
Long-term debt 2,795,878 2,463,452
Operating lease liabilities 797,166
Pension and other post–retirement benefit liabilities 202,188 200,558
Deferred tax liabilities 236,064 188,467
Other long-term liabilities 444,344 480,374
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 – 2019 – 145,293,115 shares; 2018 – 146,759,273 shares 145,293 146,759
Additional paid-in capital 90,560 77,558
Retained earnings 4,674,918 4,349,014
Accumulated other comprehensive loss (1,268,580) (962,277)
Total parent equity 3,642,191 3,611,054
Noncontrolling interests in subsidiaries 22,546 52,025
Total equity 3,664,737 3,663,079
Total liabilities and equity $ 14,513,190 $ 12,657,119

 

 

GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME SEGMENT INFORMATION (1) Includes $12,413 of income and $25,809 of expense for the three and nine months ended September 30, 2019, respectively, in certain transaction and other costs related to acquisitions and dispositions. Also includes the realized currency losses incurred on the March 7, 2019 sale of Grupo Auto Todo and the September 30, 2019 sale of EIS, net of a gain from remeasuring the Company's preexisting 35% equity investment to fair value upon acquiring the remaining equity of Inenco on July 1, 2019. CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
Includes $3,104 of income and $19,010 of expense for the three and nine months ended September 30, 2018, respectively, in certain transaction and other costs related to the acquisition of Alliance Automotive Group and the attempted Business Products Group spin-off, net of a $12,000 termination fee received in the third quarter of 2018.
Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) September 30, 2019 September 30, 2018 Nine Months Ended September 30,
(in thousands, except per share data) 2019 2018 2019 2018 2019 2018 2019 2018 Assets (in thousands) 2019 2018
Net sales $ 5,015,023 $ 4,722,922 $ 14,686,116 $ 14,131,281 Net sales: Current assets: Operating activities:
Cost of goods sold 3,390,597 3,238,687 9,954,941 9,689,653 Automotive $ 2,790,607 $ 2,649,716 $ 8,187,760 $ 7,950,176 Cash and cash equivalents $ 451,275 $ 359,105 Net income $ 612,167 $ 623,775
Gross profit 1,624,426 1,484,235 4,731,175 4,441,628 Industrial 1,732,831 1,577,329 5,049,975 4,727,938 Trade accounts receivable, less allowance for doubtful accounts (2019 – $32,374; 2018 – $23,584) 2,739,971 2,655,888 Adjustments to reconcile net income to net cash provided by operating activities:
Operating expenses: Business products 491,585 495,877 1,448,381 1,453,167 Merchandise inventories, net 3,718,307 3,536,503 Depreciation and amortization 197,053 177,896
Selling, administrative and other expenses 1,269,893 1,119,266 3,684,026 3,401,254 Total net sales $ 5,015,023 $ 4,722,922 $ 14,686,116 $ 14,131,281 Prepaid expenses and other current assets 1,149,118 998,999 Share-based compensation 19,820 15,417
Depreciation and amortization 68,922 61,082 197,053 177,896 Operating profit: Total current assets 8,058,671 7,550,495 Excess tax benefits from share-based compensation (4,054) (3,079)
Provision for doubtful accounts 1,693 4,939 11,624 11,306 Automotive $ 222,100 $ 226,742 $ 629,713 $ 655,059 Goodwill 2,278,066 2,097,990 Other non-operating activities (22,329)
Total operating expenses 1,340,508 1,185,287 3,892,703 3,590,456 Industrial 137,525 119,153 394,887 356,535 Other intangible assets, less accumulated amortization 1,523,656 1,420,480 Changes in operating assets and liabilities (57,445) 111,517
Non-operating (income) expenses: Business products 21,611 19,846 63,727 62,869 Deferred tax assets 30,301 22,898 Net cash provided by operating activities 745,212 925,526
Interest expense 26,485 25,084 73,664 75,669 Total operating profit 381,236 365,741 1,088,327 1,074,463 Property, plant and equipment, less accumulated depreciation (2019 – $1,341,995; 2018 – $1,177,952) 1,118,912 937,740 Investing activities:
Other (47,100) (17,871) (53,366) (45,822) Interest expense, net (24,770) (21,881) (70,313) (70,713) Operating lease assets 1,048,462 Purchases of property, plant and equipment (182,612) (91,942)
Total non-operating (income) expenses (20,615) 7,213 20,298 29,847 Intangible asset amortization (26,224) (23,593) (72,725) (66,802) Other assets 455,122 627,516 Proceeds from divestitures of businesses 416,784
Income before income taxes 304,533 291,735 818,174 821,325 Corporate expense (1) (25,709) (28,532) (127,115) (115,623) Total assets $ 14,513,190 $ 12,657,119 Acquisitions of businesses and other investing activities (625,565) (153,988)
Income taxes 77,046 71,508 206,007 197,550 Income before income taxes $ 304,533 $ 291,735 $ 818,174 $ 821,325 Net cash used in investing activities (391,393) (245,930)
Net income $ 227,487 $ 220,227 $ 612,167 $ 623,775 Liabilities and equity Financing activities:
Basic net income per common share $ 1.56 $ 1.50 $ 4.20 $ 4.25 Current liabilities: Proceeds from debt 3,928,716 3,406,975
Diluted net income per common share $ 1.56 $ 1.49 $ 4.18 $ 4.23 Trade accounts payable $ 4,195,869 $ 4,036,006 Payments on debt (3,749,509) (3,710,934)
Dividends declared per common share $ .7625 $ .7200 $ 2.2875 $ 2.1600 Current portion of debt 622,132 450,493 Share-based awards exercised (7,495) (5,860)
Weighted average common shares outstanding 145,572 146,763 145,875 146,746 Dividends payable 110,784 105,673 Dividends paid (328,106) (310,310)
Dilutive effect of stock options and non-vested restricted stock awards 617 690 654 574 Other current liabilities 1,444,028 1,069,017 Purchases of stock (73,052) (1,918)
Weighted average common shares outstanding – assuming dilution 146,189 147,453 146,529 147,320 Total current liabilities 6,372,813 5,661,189 Net cash used in financing activities (229,446) (622,047)
Long-term debt 2,795,878 2,463,452 Effect of exchange rate changes on cash and cash equivalents (6,645) (13,343)
Operating lease liabilities 797,166 Net increase in cash and cash equivalents 117,728 44,206
Pension and other post–retirement benefit liabilities 202,188 200,558 Cash and cash equivalents at beginning of period 333,547 314,899
Deferred tax liabilities 236,064 188,467 Cash and cash equivalents at end of period $ 451,275 $ 359,105
Other long-term liabilities 444,344 480,374
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 – 2019 – 145,293,115 shares; 2018 – 146,759,273 shares 145,293 146,759
Additional paid-in capital 90,560 77,558
Retained earnings 4,674,918 4,349,014
Accumulated other comprehensive loss (1,268,580) (962,277)
Total parent equity 3,642,191 3,611,054
Noncontrolling interests in subsidiaries 22,546 52,025
Total equity 3,664,737 3,663,079
Total liabilities and equity $ 14,513,190 $ 12,657,119

 

 

GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME SEGMENT INFORMATION (1) Includes $12,413 of income and $25,809 of expense for the three and nine months ended September 30, 2019, respectively, in certain transaction and other costs related to acquisitions and dispositions. Also includes the realized currency losses incurred on the March 7, 2019 sale of Grupo Auto Todo and the September 30, 2019 sale of EIS, net of a gain from remeasuring the Company's preexisting 35% equity investment to fair value upon acquiring the remaining equity of Inenco on July 1, 2019. CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
Includes $3,104 of income and $19,010 of expense for the three and nine months ended September 30, 2018, respectively, in certain transaction and other costs related to the acquisition of Alliance Automotive Group and the attempted Business Products Group spin-off, net of a $12,000 termination fee received in the third quarter of 2018.
Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) September 30, 2019 September 30, 2018 Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30,
(in thousands, except per share data) 2019 2018 2019 2018 2019 2018 2019 2018 Assets (in thousands) 2019 2018 (in thousands, except per share data) 2019 2018 2019 2018
Net sales $ 5,015,023 $ 4,722,922 $ 14,686,116 $ 14,131,281 Net sales: Current assets: Operating activities: GAAP net income $ 227,487 $ 220,227 $ 612,167 $ 623,775
Cost of goods sold 3,390,597 3,238,687 9,954,941 9,689,653 Automotive $ 2,790,607 $ 2,649,716 $ 8,187,760 $ 7,950,176 Cash and cash equivalents $ 451,275 $ 359,105 Net income $ 612,167 $ 623,775 Diluted net income per common share $ 1.56 $ 1.49 $ 4.18 $ 4.23
Gross profit 1,624,426 1,484,235 4,731,175 4,441,628 Industrial 1,732,831 1,577,329 5,049,975 4,727,938 Trade accounts receivable, less allowance for doubtful accounts (2019 – $32,374; 2018 – $23,584) 2,739,971 2,655,888 Adjustments to reconcile net income to net cash provided by operating activities:
Operating expenses: Business products 491,585 495,877 1,448,381 1,453,167 Merchandise inventories, net 3,718,307 3,536,503 Depreciation and amortization 197,053 177,896 Adjustments:
Selling, administrative and other expenses 1,269,893 1,119,266 3,684,026 3,401,254 Total net sales $ 5,015,023 $ 4,722,922 $ 14,686,116 $ 14,131,281 Prepaid expenses and other current assets 1,149,118 998,999 Share-based compensation 19,820 15,417 Realized currency losses $ 7,664 $ $ 34,701 $
Depreciation and amortization 68,922 61,082 197,053 177,896 Operating profit: Total current assets 8,058,671 7,550,495 Excess tax benefits from share-based compensation (4,054) (3,079) Termination fee (12,000) (12,000)
Provision for doubtful accounts 1,693 4,939 11,624 11,306 Automotive $ 222,100 $ 226,742 $ 629,713 $ 655,059 Goodwill 2,278,066 2,097,990 Other non-operating activities (22,329) Gain on equity investment (38,663) (38,663)
Total operating expenses 1,340,508 1,185,287 3,892,703 3,590,456 Industrial 137,525 119,153 394,887 356,535 Other intangible assets, less accumulated amortization 1,523,656 1,420,480 Changes in operating assets and liabilities (57,445) 111,517 Transaction and other costs 18,586 8,896 29,771 31,010
Non-operating (income) expenses: Business products 21,611 19,846 63,727 62,869 Deferred tax assets 30,301 22,898 Net cash provided by operating activities 745,212 925,526 Total adjustments $ (12,413) $ (3,104) $ 25,809 $ 19,010
Interest expense 26,485 25,084 73,664 75,669 Total operating profit 381,236 365,741 1,088,327 1,074,463 Property, plant and equipment, less accumulated depreciation (2019 – $1,341,995; 2018 – $1,177,952) 1,118,912 937,740 Investing activities: Tax impact of adjustments 3,973 512 (1,450) (5,137)
Other (47,100) (17,871) (53,366) (45,822) Interest expense, net (24,770) (21,881) (70,313) (70,713) Operating lease assets 1,048,462 Purchases of property, plant and equipment (182,612) (91,942) Adjusted net income $ 219,047 $ 217,635 $ 636,526 $ 637,648
Total non-operating (income) expenses (20,615) 7,213 20,298 29,847 Intangible asset amortization (26,224) (23,593) (72,725) (66,802) Other assets 455,122 627,516 Proceeds from divestitures of businesses 416,784 Adjusted diluted net income per common share $ 1.50 $ 1.48 $ 4.34 $ 4.33
Income before income taxes 304,533 291,735 818,174 821,325 Corporate expense (1) (25,709) (28,532) (127,115) (115,623) Total assets $ 14,513,190 $ 12,657,119 Acquisitions of businesses and other investing activities (625,565) (153,988)
Income taxes 77,046 71,508 206,007 197,550 Income before income taxes $ 304,533 $ 291,735 $ 818,174 $ 821,325 Net cash used in investing activities (391,393) (245,930) The table below clarifies where the items adjusted above are presented in the consolidated statements of income.
Net income $ 227,487 $ 220,227 $ 612,167 $ 623,775 Liabilities and equity Financing activities:
Basic net income per common share $ 1.56 $ 1.50 $ 4.20 $ 4.25 Current liabilities: Proceeds from debt 3,928,716 3,406,975 Three Months Ended September 30, Nine Months Ended September 30,
Diluted net income per common share $ 1.56 $ 1.49 $ 4.18 $ 4.23 Trade accounts payable $ 4,195,869 $ 4,036,006 Payments on debt (3,749,509) (3,710,934) (in thousands) 2019 2018 2019 2018
Dividends declared per common share $ .7625 $ .7200 $ 2.2875 $ 2.1600 Current portion of debt 622,132 450,493 Share-based awards exercised (7,495) (5,860) Line item:
Weighted average common shares outstanding 145,572 146,763 145,875 146,746 Dividends payable 110,784 105,673 Dividends paid (328,106) (310,310) Cost of goods sold $ 4,521 $ $ 7,481 $ 5,779
Dilutive effect of stock options and non-vested restricted stock awards 617 690 654 574 Other current liabilities 1,444,028 1,069,017 Purchases of stock (73,052) (1,918) Selling, administrative and other expenses 15,879 (3,104) 24,103 13,231
Weighted average common shares outstanding – assuming dilution 146,189 147,453 146,529 147,320 Total current liabilities 6,372,813 5,661,189 Net cash used in financing activities (229,446) (622,047) Non-operating (income): Other (32,813) (5,775)
Long-term debt 2,795,878 2,463,452 Effect of exchange rate changes on cash and cash equivalents (6,645) (13,343) Total adjustments $ (12,413) $ (3,104) $ 25,809 $ 19,010
Operating lease liabilities 797,166 Net increase in cash and cash equivalents 117,728 44,206
Pension and other post–retirement benefit liabilities 202,188 200,558 Cash and cash equivalents at beginning of period 333,547 314,899
Deferred tax liabilities 236,064 188,467 Cash and cash equivalents at end of period $ 451,275 $ 359,105
Other long-term liabilities 444,344 480,374
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 – 2019 – 145,293,115 shares; 2018 – 146,759,273 shares 145,293 146,759
Additional paid-in capital 90,560 77,558
Retained earnings 4,674,918 4,349,014
Accumulated other comprehensive loss (1,268,580) (962,277)
Total parent equity 3,642,191 3,611,054
Noncontrolling interests in subsidiaries 22,546 52,025
Total equity 3,664,737 3,663,079
Total liabilities and equity $ 14,513,190 $ 12,657,119

 

 

GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME SEGMENT INFORMATION (1) Includes $12,413 of income and $25,809 of expense for the three and nine months ended September 30, 2019, respectively, in certain transaction and other costs related to acquisitions and dispositions. Also includes the realized currency losses incurred on the March 7, 2019 sale of Grupo Auto Todo and the September 30, 2019 sale of EIS, net of a gain from remeasuring the Company's preexisting 35% equity investment to fair value upon acquiring the remaining equity of Inenco on July 1, 2019. CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME CHANGE IN NET SALES SUMMARY
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
Includes $3,104 of income and $19,010 of expense for the three and nine months ended September 30, 2018, respectively, in certain transaction and other costs related to the acquisition of Alliance Automotive Group and the attempted Business Products Group spin-off, net of a $12,000 termination fee received in the third quarter of 2018.
Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) September 30, 2019 September 30, 2018 Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, 2019
(in thousands, except per share data) 2019 2018 2019 2018 2019 2018 2019 2018 Assets (in thousands) 2019 2018 (in thousands, except per share data) 2019 2018 2019 2018 Comparable Sales Acquisitions Divestitures and Other Foreign Currency Total Net Sales
Net sales $ 5,015,023 $ 4,722,922 $ 14,686,116 $ 14,131,281 Net sales: Current assets: Operating activities: GAAP net income $ 227,487 $ 220,227 $ 612,167 $ 623,775 Automotive 1.8 % 6.5 % (1.2) % (1.8) % 5.3 %
Cost of goods sold 3,390,597 3,238,687 9,954,941 9,689,653 Automotive $ 2,790,607 $ 2,649,716 $ 8,187,760 $ 7,950,176 Cash and cash equivalents $ 451,275 $ 359,105 Net income $ 612,167 $ 623,775 Diluted net income per common share $ 1.56 $ 1.49 $ 4.18 $ 4.23 Industrial 0.9 % 9.0 % % % 9.9 %
Gross profit 1,624,426 1,484,235 4,731,175 4,441,628 Industrial 1,732,831 1,577,329 5,049,975 4,727,938 Trade accounts receivable, less allowance for doubtful accounts (2019 – $32,374; 2018 – $23,584) 2,739,971 2,655,888 Adjustments to reconcile net income to net cash provided by operating activities: Business Products (0.9) % % % % (0.9) %
Operating expenses: Business products 491,585 495,877 1,448,381 1,453,167 Merchandise inventories, net 3,718,307 3,536,503 Depreciation and amortization 197,053 177,896 Adjustments: Total Net Sales 1.2 % 6.7 % (0.7) % (1.0) % 6.2 %
Selling, administrative and other expenses 1,269,893 1,119,266 3,684,026 3,401,254 Total net sales $ 5,015,023 $ 4,722,922 $ 14,686,116 $ 14,131,281 Prepaid expenses and other current assets 1,149,118 998,999 Share-based compensation 19,820 15,417 Realized currency losses $ 7,664 $ $ 34,701 $
Depreciation and amortization 68,922 61,082 197,053 177,896 Operating profit: Total current assets 8,058,671 7,550,495 Excess tax benefits from share-based compensation (4,054) (3,079) Termination fee (12,000) (12,000)
Provision for doubtful accounts 1,693 4,939 11,624 11,306 Automotive $ 222,100 $ 226,742 $ 629,713 $ 655,059 Goodwill 2,278,066 2,097,990 Other non-operating activities (22,329) Gain on equity investment (38,663) (38,663) Nine Months Ended September 30, 2019
Total operating expenses 1,340,508 1,185,287 3,892,703 3,590,456 Industrial 137,525 119,153 394,887 356,535 Other intangible assets, less accumulated amortization 1,523,656 1,420,480 Changes in operating assets and liabilities (57,445) 111,517 Transaction and other costs 18,586 8,896 29,771 31,010 Comparable Sales Acquisitions Divestitures and Other Foreign Currency Total Net Sales
Non-operating (income) expenses: Business products 21,611 19,846 63,727 62,869 Deferred tax assets 30,301 22,898 Net cash provided by operating activities 745,212 925,526 Total adjustments $ (12,413) $ (3,104) $ 25,809 $ 19,010 Automotive 2.1 % 4.3 % (0.8) % (2.6) % 3.0 %
Interest expense 26,485 25,084 73,664 75,669 Total operating profit 381,236 365,741 1,088,327 1,074,463 Property, plant and equipment, less accumulated depreciation (2019 – $1,341,995; 2018 – $1,177,952) 1,118,912 937,740 Investing activities: Tax impact of adjustments 3,973 512 (1,450) (5,137) Industrial 2.7 % 4.3 % % (0.2) % 6.8 %
Other (47,100) (17,871) (53,366) (45,822) Interest expense, net (24,770) (21,881) (70,313) (70,713) Operating lease assets 1,048,462 Purchases of property, plant and equipment (182,612) (91,942) Adjusted net income $ 219,047 $ 217,635 $ 636,526 $ 637,648 Business Products (0.2) % % % (0.1) % (0.3) %
Total non-operating (income) expenses (20,615) 7,213 20,298 29,847 Intangible asset amortization (26,224) (23,593) (72,725) (66,802) Other assets 455,122 627,516 Proceeds from divestitures of businesses 416,784 Adjusted diluted net income per common share $ 1.50 $ 1.48 $ 4.34 $ 4.33 Total Net Sales 2.1 % 3.9 % (0.6) % (1.5) % 3.9 %
Income before income taxes 304,533 291,735 818,174 821,325 Corporate expense (1) (25,709) (28,532) (127,115) (115,623) Total assets $ 14,513,190 $ 12,657,119 Acquisitions of businesses and other investing activities (625,565) (153,988)
Income taxes 77,046 71,508 206,007 197,550 Income before income taxes $ 304,533 $ 291,735 $ 818,174 $ 821,325 Net cash used in investing activities (391,393) (245,930) The table below clarifies where the items adjusted above are presented in the consolidated statements of income.
Net income $ 227,487 $ 220,227 $ 612,167 $ 623,775 Liabilities and equity Financing activities:
Basic net income per common share $ 1.56 $ 1.50 $ 4.20 $ 4.25 Current liabilities: Proceeds from debt 3,928,716 3,406,975 Three Months Ended September 30, Nine Months Ended September 30,
Diluted net income per common share $ 1.56 $ 1.49 $ 4.18 $ 4.23 Trade accounts payable $ 4,195,869 $ 4,036,006 Payments on debt (3,749,509) (3,710,934) (in thousands) 2019 2018 2019 2018
Dividends declared per common share $ .7625 $ .7200 $ 2.2875 $ 2.1600 Current portion of debt 622,132 450,493 Share-based awards exercised (7,495) (5,860) Line item:
Weighted average common shares outstanding 145,572 146,763 145,875 146,746 Dividends payable 110,784 105,673 Dividends paid (328,106) (310,310) Cost of goods sold $ 4,521 $ $ 7,481 $ 5,779
Dilutive effect of stock options and non-vested restricted stock awards 617 690 654 574 Other current liabilities 1,444,028 1,069,017 Purchases of stock (73,052) (1,918) Selling, administrative and other expenses 15,879 (3,104) 24,103 13,231
Weighted average common shares outstanding – assuming dilution 146,189 147,453 146,529 147,320 Total current liabilities 6,372,813 5,661,189 Net cash used in financing activities (229,446) (622,047) Non-operating (income): Other (32,813) (5,775)
Long-term debt 2,795,878 2,463,452 Effect of exchange rate changes on cash and cash equivalents (6,645) (13,343) Total adjustments $ (12,413) $ (3,104) $ 25,809 $ 19,010
Operating lease liabilities 797,166 Net increase in cash and cash equivalents 117,728 44,206
Pension and other post–retirement benefit liabilities 202,188 200,558 Cash and cash equivalents at beginning of period 333,547 314,899
Deferred tax liabilities 236,064 188,467 Cash and cash equivalents at end of period $ 451,275 $ 359,105
Other long-term liabilities 444,344 480,374
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 – 2019 – 145,293,115 shares; 2018 – 146,759,273 shares 145,293 146,759
Additional paid-in capital 90,560 77,558
Retained earnings 4,674,918 4,349,014
Accumulated other comprehensive loss (1,268,580) (962,277)
Total parent equity 3,642,191 3,611,054
Noncontrolling interests in subsidiaries 22,546 52,025
Total equity 3,664,737 3,663,079
Total liabilities and equity $ 14,513,190 $ 12,657,119

 

 

GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES GENUINE PARTS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME SEGMENT INFORMATION (1) Includes $12,413 of income and $25,809 of expense for the three and nine months ended September 30, 2019, respectively, in certain transaction and other costs related to acquisitions and dispositions. Also includes the realized currency losses incurred on the March 7, 2019 sale of Grupo Auto Todo and the September 30, 2019 sale of EIS, net of a gain from remeasuring the Company's preexisting 35% equity investment to fair value upon acquiring the remaining equity of Inenco on July 1, 2019. CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME CHANGE IN NET SALES SUMMARY RECONCILIATION OF 2019 FORECASTED GAAP NET INCOME TO FORECASTED ADJUSTED NET INCOME
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
Includes $3,104 of income and $19,010 of expense for the three and nine months ended September 30, 2018, respectively, in certain transaction and other costs related to the acquisition of Alliance Automotive Group and the attempted Business Products Group spin-off, net of a $12,000 termination fee received in the third quarter of 2018.
Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) September 30, 2019 September 30, 2018 Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, 2019 (in thousands, except per share data) Low End High End
(in thousands, except per share data) 2019 2018 2019 2018 2019 2018 2019 2018 Assets (in thousands) 2019 2018 (in thousands, except per share data) 2019 2018 2019 2018 Comparable Sales Acquisitions Divestitures and Other Foreign Currency Total Net Sales Forecasted GAAP net income $ 796,500 $ 809,000
Net sales $ 5,015,023 $ 4,722,922 $ 14,686,116 $ 14,131,281 Net sales: Current assets: Operating activities: GAAP net income $ 227,487 $ 220,227 $ 612,167 $ 623,775 Automotive 1.8 % 6.5 % (1.2) % (1.8) % 5.3 % Forecasted diluted net income per common share $ 5.44 $ 5.52
Cost of goods sold 3,390,597 3,238,687 9,954,941 9,689,653 Automotive $ 2,790,607 $ 2,649,716 $ 8,187,760 $ 7,950,176 Cash and cash equivalents $ 451,275 $ 359,105 Net income $ 612,167 $ 623,775 Diluted net income per common share $ 1.56 $ 1.49 $ 4.18 $ 4.23 Industrial 0.9 % 9.0 % % % 9.9 %
Gross profit 1,624,426 1,484,235 4,731,175 4,441,628 Industrial 1,732,831 1,577,329 5,049,975 4,727,938 Trade accounts receivable, less allowance for doubtful accounts (2019 – $32,374; 2018 – $23,584) 2,739,971 2,655,888 Adjustments to reconcile net income to net cash provided by operating activities: Business Products (0.9) % % % % (0.9) % Add forecasted after-tax adjustments:
Operating expenses: Business products 491,585 495,877 1,448,381 1,453,167 Merchandise inventories, net 3,718,307 3,536,503 Depreciation and amortization 197,053 177,896 Adjustments: Total Net Sales 1.2 % 6.7 % (0.7) % (1.0) % 6.2 % Forecasted transaction and other costs 24,359 24,359
Selling, administrative and other expenses 1,269,893 1,119,266 3,684,026 3,401,254 Total net sales $ 5,015,023 $ 4,722,922 $ 14,686,116 $ 14,131,281 Prepaid expenses and other current assets 1,149,118 998,999 Share-based compensation 19,820 15,417 Realized currency losses $ 7,664 $ $ 34,701 $ Forecasted adjusted net income $ 820,859 $ 833,359
Depreciation and amortization 68,922 61,082 197,053 177,896 Operating profit: Total current assets 8,058,671 7,550,495 Excess tax benefits from share-based compensation (4,054) (3,079) Termination fee (12,000) (12,000) Forecasted adjusted diluted net income per common share $ 5.60 $ 5.68
Provision for doubtful accounts 1,693 4,939 11,624 11,306 Automotive $ 222,100 $ 226,742 $ 629,713 $ 655,059 Goodwill 2,278,066 2,097,990 Other non-operating activities (22,329) Gain on equity investment (38,663) (38,663) Nine Months Ended September 30, 2019
Total operating expenses 1,340,508 1,185,287 3,892,703 3,590,456 Industrial 137,525 119,153 394,887 356,535 Other intangible assets, less accumulated amortization 1,523,656 1,420,480 Changes in operating assets and liabilities (57,445) 111,517 Transaction and other costs 18,586 8,896 29,771 31,010 Comparable Sales Acquisitions Divestitures and Other Foreign Currency Total Net Sales
Non-operating (income) expenses: Business products 21,611 19,846 63,727 62,869 Deferred tax assets 30,301 22,898 Net cash provided by operating activities 745,212 925,526 Total adjustments $ (12,413) $ (3,104) $ 25,809 $ 19,010 Automotive 2.1 % 4.3 % (0.8) % (2.6) % 3.0 %
Interest expense 26,485 25,084 73,664 75,669 Total operating profit 381,236 365,741 1,088,327 1,074,463 Property, plant and equipment, less accumulated depreciation (2019 – $1,341,995; 2018 – $1,177,952) 1,118,912 937,740 Investing activities: Tax impact of adjustments 3,973 512 (1,450) (5,137) Industrial 2.7 % 4.3 % % (0.2) % 6.8 %
Other (47,100) (17,871) (53,366) (45,822) Interest expense, net (24,770) (21,881) (70,313) (70,713) Operating lease assets 1,048,462 Purchases of property, plant and equipment (182,612) (91,942) Adjusted net income $ 219,047 $ 217,635 $ 636,526 $ 637,648 Business Products (0.2) % % % (0.1) % (0.3) %
Total non-operating (income) expenses (20,615) 7,213 20,298 29,847 Intangible asset amortization (26,224) (23,593) (72,725) (66,802) Other assets 455,122 627,516 Proceeds from divestitures of businesses 416,784 Adjusted diluted net income per common share $ 1.50 $ 1.48 $ 4.34 $ 4.33 Total Net Sales 2.1 % 3.9 % (0.6) % (1.5) % 3.9 %
Income before income taxes 304,533 291,735 818,174 821,325 Corporate expense (1) (25,709) (28,532) (127,115) (115,623) Total assets $ 14,513,190 $ 12,657,119 Acquisitions of businesses and other investing activities (625,565) (153,988)
Income taxes 77,046 71,508 206,007 197,550 Income before income taxes $ 304,533 $ 291,735 $ 818,174 $ 821,325 Net cash used in investing activities (391,393) (245,930) The table below clarifies where the items adjusted above are presented in the consolidated statements of income.
Net income $ 227,487 $ 220,227 $ 612,167 $ 623,775 Liabilities and equity Financing activities:
Basic net income per common share $ 1.56 $ 1.50 $ 4.20 $ 4.25 Current liabilities: Proceeds from debt 3,928,716 3,406,975 Three Months Ended September 30, Nine Months Ended September 30,
Diluted net income per common share $ 1.56 $ 1.49 $ 4.18 $ 4.23 Trade accounts payable $ 4,195,869 $ 4,036,006 Payments on debt (3,749,509) (3,710,934) (in thousands) 2019 2018 2019 2018
Dividends declared per common share $ .7625 $ .7200 $ 2.2875 $ 2.1600 Current portion of debt 622,132 450,493 Share-based awards exercised (7,495) (5,860) Line item:
Weighted average common shares outstanding 145,572 146,763 145,875 146,746 Dividends payable 110,784 105,673 Dividends paid (328,106) (310,310) Cost of goods sold $ 4,521 $ $ 7,481 $ 5,779
Dilutive effect of stock options and non-vested restricted stock awards 617 690 654 574 Other current liabilities 1,444,028 1,069,017 Purchases of stock (73,052) (1,918) Selling, administrative and other expenses 15,879 (3,104) 24,103 13,231
Weighted average common shares outstanding – assuming dilution 146,189 147,453 146,529 147,320 Total current liabilities 6,372,813 5,661,189 Net cash used in financing activities (229,446) (622,047) Non-operating (income): Other (32,813) (5,775)
Long-term debt 2,795,878 2,463,452 Effect of exchange rate changes on cash and cash equivalents (6,645) (13,343) Total adjustments $ (12,413) $ (3,104) $ 25,809 $ 19,010
Operating lease liabilities 797,166 Net increase in cash and cash equivalents 117,728 44,206
Pension and other post–retirement benefit liabilities 202,188 200,558 Cash and cash equivalents at beginning of period 333,547 314,899
Deferred tax liabilities 236,064 188,467 Cash and cash equivalents at end of period $ 451,275 $ 359,105
Other long-term liabilities 444,344 480,374
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 – 2019 – 145,293,115 shares; 2018 – 146,759,273 shares 145,293 146,759
Additional paid-in capital 90,560 77,558
Retained earnings 4,674,918 4,349,014
Accumulated other comprehensive loss (1,268,580) (962,277)
Total parent equity 3,642,191 3,611,054
Noncontrolling interests in subsidiaries 22,546 52,025
Total equity 3,664,737 3,663,079
Total liabilities and equity $ 14,513,190 $ 12,657,119

 

 

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