Genuine Parts Company Reports Results for the Fourth Quarter and Full Year 2021
Genuine Parts Company (GPC) reported a 13.0% increase in fourth-quarter sales, reaching $4.8 billion, and a 14.1% rise in full-year sales to $18.9 billion. Diluted EPS from continuing operations was $1.79 for Q4, and $6.23 for the full year, marking a 17.8% and 31.1% increase respectively. GPC announced plans for 2022 revenue growth of 9% to 11% and diluted EPS between $7.45 and $7.60. The company also completed the acquisition of Kaman Distribution Group on January 3, 2022, reinforcing growth strategies.
- Fourth-quarter sales rose to $4.8 billion, up 13.0% year-over-year.
- Full-year sales increased to $18.9 billion, a 14.1% growth from 2020.
- Diluted EPS from continuing operations for Q4 was $1.79, a 17.8% increase.
- Adjusted diluted EPS rose to $6.91 for 2021, up 31.1% year-over-year.
- Strong cash flow generation: $1.3 billion from operations, $1.0 billion in free cash flow.
- Plan for 2022 revenue growth of 9% to 11%.
- Automotive segment profit margin slightly decreased to 8.3% from 8.5% in the previous year.
- Uncertainty regarding COVID-19 could impact future results.
ATLANTA, Feb. 17, 2022 /PRNewswire/ --
Fourth Quarter 2021 Highlights
- Sales of
$4.8 billion , Up13.0% - Diluted EPS from Continuing Operations
$1.79 - Adjusted Diluted EPS from Continuing Operations
$1.79 , Up17.8% - 17th Consecutive Quarter of Year-Over-Year Gross Margin Improvement
- Announced Acquisition of Kaman Distribution Group; Completed January 3, 2022
Full Year 2021 Highlights
- Sales of
$18.9 billion , Up14.1% - Segment Profit Margin of
8.8% , Up 60 basis points - Diluted EPS from Continuing Operations
$6.23 - Adjusted Diluted EPS from Continuing Operations
$6.91 , Up31.1% and a New Record - Returned
$800 million to Shareholders via Cash Dividends and Share Repurchases - Cash Flow from Operations of
$1.3 billion and Free Cash Flow of$1.0 billion
2022 Outlook
- Revenue Growth of
9% to11% - Diluted EPS of
$7.45 to$7.60
Genuine Parts Company (NYSE: GPC) announced today its results for the fourth quarter and twelve months ended December 31, 2021.
"The GPC team finished the year with a strong fourth quarter, further building on the positive momentum of the first nine months of 2021. We are proud of our progress through the year and thankful to our 52,000 teammates for their hard work and ongoing commitment to excellence," said Paul Donahue, Chairman and Chief Executive Officer of Genuine Parts Company. "Strong sales growth combined with ongoing initiatives to improve gross margin and control expenses in an inflationary environment drove an
Fourth Quarter 2021 Results
Sales were
Net income from continuing operations was
Fourth Quarter 2021 Segment Highlights
Automotive Parts Group
Sales for the Automotive Group were
Industrial Parts Group
Sales for the Industrial Parts Group were
"The double digit sales and earnings growth for the Automotive and Industrial businesses is a reflection of strong global demand and the diligent execution of our initiatives to accelerate growth and improve profitability," Mr. Donahue said. "The strength in Automotive was broad-based across our operations, with
Full Year 2021 Results
Sales in 2021 were
Balance Sheet Cash Flow and Capital Allocation
The Company generated cash flow from continuing operations of
The Company ended the quarter and year with
"2021 was an exceptional year for GPC. Following the unprecedented challenges of 2020, our team was focused on advancing the strategic priorities for our global automotive and industrial businesses. With the backdrop of the economic recovery and strong industry fundamentals, we generated double-digit sales and earnings growth and significantly improved our profit margin, resulting in strong cash flow and further supporting our balance sheet strength and capital allocation priorities," Mr. Donahue said. "Looking ahead, we remain confident in our plans for accelerated growth and profitability as we build on the underlying momentum in our automotive and industrial operations and begin to realize the benefits from our recent industrial acquisition of Kaman Distribution Group."
2022 Outlook
The Company considered its past performance, business trends, current growth plans, strategic initiatives, global economic outlook and the continued uncertainty of COVID-19 and its potential impact on our results, in establishing its full-year 2022 guidance as outlined in the table below. In addition, the Company has accounted for an approximate
Year Ended 12/31/2022 | ||
Total sales growth | ||
Automotive sales growth | ||
Industrial sales growth | ||
Diluted earnings per share | ||
Adjusted diluted earnings per share | ||
Effective tax rate | Approx. | |
Net cash provided by operating activities | ||
Free cash flow |
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 from continuing operations, adjusted diluted net income from continuing operations per common share and free cash flow. The Company believes that the presentation of adjusted net income from continuing operations, adjusted diluted net income from continuing operations per common 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 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 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 the Company's core operations. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures as superior to, 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.
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. 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 11:00 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 888-317-6003, conference ID 8600891. A replay will also be available on the Company's website or at 877-344-7529 conference ID 6848555, two hours after the completion of the call.
About Genuine Parts Company
Founded in 1928, Genuine Parts Company is a global service organization engaged in the distribution of automotive and industrial replacement parts. The Company's Automotive Parts Group distributes automotive replacement parts in the U.S., Canada, Mexico, Australasia, France, the United Kingdom, Ireland, Germany, Poland, the Netherlands and Belgium. The Company's Industrial Parts Group distributes industrial replacement parts in the U.S., Canada, Mexico and Australasia. In total, the Company serves its global customers from an extensive network of more than 10,000 locations in 15 countries and has approximately 52,000 employees. Further information is available at www.genpt.com.
Forward Looking Statements
Some statements in this release, as well as in materials the Company files with the Securities and Exchange Commission (SEC), release to the public or make available on the Company's 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 the Company's view of business and economic trends for the coming year, the Company's ability to execute our strategic priorities and capitalize in light of these business and economic trends, and the established full-year 2022 financial guidance for the Company provided above. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking.
The Company cautions that all forward-looking statements involve risks and uncertainties, and while the Company believes that its 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 extent and duration of the disruption to the Company's business operations caused by the global health crisis associated with the COVID-19 pandemic, including the effects on the financial health of the Company's business partners and customers, on supply chains and the Company's suppliers, on vehicle miles driven as well as other metrics that affect the Company's business, and on access to capital and liquidity provided by the financial and capital markets; the Company's ability to maintain compliance with its debt covenants; the Company's ability to successfully integrate acquired businesses into the Company's operations and to realize the anticipated synergies and benefits; the Company's ability to successfully implement its business initiatives in its two business segments; changes in demand for the Company's products; the ability to maintain favorable supplier arrangements and relationships; disruptions in global supply chains and in the operations of the Company's suppliers, including as a result of the impact of COVID-19 on our suppliers and our supply chain; 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 the Company and its suppliers and customers; changes in general economic conditions, including unemployment, inflation (including the impact of tariffs) or deflation; changes in tax policies; volatile exchange rates; volatility in oil prices; significant cost increases, such as rising fuel and freight expenses; the Company's 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 the Company's disclosure controls and procedures and internal controls over financial reporting, including as a result of the work from home environment; 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 2021 and from time to time in the Company's subsequent filings with the SEC.
Forward-looking statements speak only as of the date they are made, and the Company undertakes 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.
_____________________________________ |
1 Adjusted net income from continuing operations, adjusted diluted net income from continuing operations per common share and free cash flow referred in this press release are non-GAAP financial measures. Please refer to the supplemental information presented below for reconciliations of the non-GAAP financial measures used in this release to the most comparable GAAP financial measure and related disclosures. |
GENUINE PARTS COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) | ||||||||
Three Months Ended | Twelve Months Ended | |||||||
(in thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||
Net sales | $ 4,803,209 | $ 4,251,594 | ||||||
Cost of goods sold | 3,109,760 | 2,803,484 | 12,236,374 | 10,882,592 | ||||
Gross profit | 1,693,449 | 1,448,110 | 6,634,136 | 5,654,841 | ||||
Operating expenses: | ||||||||
Selling, administrative and other expenses | 1,279,265 | 1,132,297 | 5,162,506 | 4,386,739 | ||||
Depreciation and amortization | 72,594 | 69,758 | 290,971 | 272,842 | ||||
Provision for doubtful accounts | 3,509 | 125 | 17,739 | 23,577 | ||||
Restructuring costs | — | 11,010 | — | 50,019 | ||||
Goodwill impairment charge | — | — | — | 506,721 | ||||
Total operating expenses | 1,355,368 | 1,213,190 | 5,471,216 | 5,239,898 | ||||
Non-operating (income) expenses: | ||||||||
Interest expense, net | 14,297 | 21,083 | 62,150 | 91,048 | ||||
Other | (22,122) | (11,709) | (99,576) | (55,473) | ||||
Total non-operating (income) expenses | (7,825) | 9,374 | (37,426) | 35,575 | ||||
Income before income taxes | 345,906 | 225,546 | 1,200,346 | 379,368 | ||||
Income taxes | 89,907 | 53,914 | 301,556 | 215,973 | ||||
Net income from continuing operations | 255,999 | 171,632 | 898,790 | 163,395 | ||||
Net loss from discontinued operations | — | (428) | — | (192,497) | ||||
Net income (loss) | $ 255,999 | $ 171,204 | $ 898,790 | $ (29,102) | ||||
Dividends declared per common share | $ 0.815 | $ 0.790 | $ 3.260 | $ 3.160 | ||||
Basic earnings (loss) per share: | ||||||||
Continuing operations | $ 1.80 | $ 1.19 | $ 6.27 | $ 1.13 | ||||
Discontinued operations | — | — | — | (1.33) | ||||
Basic earnings (loss) per share | $ 1.80 | $ 1.19 | $ 6.27 | $ (0.20) | ||||
Diluted earnings (loss) per share: | ||||||||
Continuing operations | $ 1.79 | $ 1.18 | $ 6.23 | $ 1.13 | ||||
Discontinued operations | — | — | — | (1.33) | ||||
Diluted earnings (loss) per share | $ 1.79 | $ 1.18 | $ 6.23 | $ (0.20) | ||||
Weighted average common shares outstanding | 142,275 | 144,313 | 143,435 | 144,474 | ||||
Dilutive effect of stock options and non-vested restricted | 778 | 847 | 786 | 641 | ||||
Weighted average common shares outstanding — | 143,053 | 145,160 | 144,221 | 145,115 | ||||
GENUINE PARTS COMPANY AND SUBSIDIARIES SEGMENT INFORMATION (UNAUDITED) | ||||||||
Three Months Ended | Twelve Months Ended | |||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||
Net sales: | ||||||||
Automotive | $ 3,190,133 | $ 2,821,832 | ||||||
Industrial | 1,613,076 | 1,429,762 | 6,326,379 | 5,676,738 | ||||
Total net sales | $ 4,803,209 | $ 4,251,594 | ||||||
Segment profit: | ||||||||
Automotive | $ 265,841 | $ 240,135 | $ 1,073,427 | $ 867,743 | ||||
Industrial | 153,773 | 133,373 | 595,232 | 481,854 | ||||
Total segment profit | 419,614 | 373,508 | 1,668,659 | 1,349,597 | ||||
Interest expense, net | (14,297) | (21,083) | (62,150) | (91,048) | ||||
Corporate expense | (44,813) | (32,701) | (174,842) | (149,754) | ||||
Intangible asset amortization | (25,034) | (24,743) | (103,273) | (94,962) | ||||
Other unallocated costs | 10,436 | (69,435) | (128,048) | (634,465) | ||||
Income before income taxes from continuing | $ 345,906 | $ 225,546 | $ 1,200,346 | $ 379,368 | ||||
The following table presents a summary of the other unallocated costs:
Three Months Ended | Twelve Months Ended | |||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||
Other unallocated costs: | ||||||||
Loss on software disposal | $ — | $ — | $ (61,063) | $ — | ||||
Product liability damages award | — | — | (77,421) | — | ||||
Goodwill impairment charge | — | — | — | (506,721) | ||||
Restructuring costs | — | (11,010) | — | (50,019) | ||||
Realized currency and other divestiture losses | — | — | — | (11,356) | ||||
Gain on insurance proceeds related to SPR fire | 3,862 | — | 3,862 | 13,448 | ||||
Gain on equity investments | 10,229 | — | 10,229 | — | ||||
Inventory adjustment | — | (40,000) | — | (40,000) | ||||
Transaction and other costs | (3,655) | (18,425) | (3,655) | (39,817) | ||||
Total other unallocated costs (1) | $ 10,436 | $ (69,435) | $ (128,048) | $ (634,465) | ||||
(1) | Refer to the reconciliation of GAAP net income from continuing operations to adjusted net income from continuing operations for explanation of adjustments. |
GENUINE PARTS COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||
As of December 31, | ||||
(in thousands, except share and per share data) | 2021 | 2020 | ||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | $ 714,701 | $ 990,166 | ||
Trade accounts receivable, less allowance for doubtful accounts (2021 – | 1,797,955 | 1,556,966 | ||
Merchandise inventories, net | 3,889,919 | 3,506,271 | ||
Prepaid expenses and other current assets | 1,353,847 | 1,060,360 | ||
Total current assets | 7,756,422 | 7,113,763 | ||
Goodwill | 1,915,307 | 1,917,477 | ||
Other intangible assets, net | 1,406,401 | 1,498,257 | ||
Deferred tax assets | 829 | 65,658 | ||
Property, plant and equipment, less accumulated depreciation (2021 – | 1,234,399 | 1,162,043 | ||
Operating lease assets | 1,053,689 | 1,038,877 | ||
Other assets | 985,055 | 644,140 | ||
Total assets | ||||
Liabilities and equity | ||||
Current liabilities: | ||||
Trade accounts payable | $ 4,804,939 | $ 4,128,084 | ||
Current portion of debt | — | 160,531 | ||
Other current liabilities | 1,660,768 | 1,491,426 | ||
Dividends payable | 115,876 | 114,043 | ||
Total current liabilities | 6,581,583 | 5,894,084 | ||
Long-term debt | 2,409,363 | 2,516,614 | ||
Operating lease liabilities | 789,175 | 789,294 | ||
Pension and other post-retirement benefit liabilities | 265,134 | 265,687 | ||
Deferred tax liabilities | 280,778 | 212,910 | ||
Other long-term liabilities | 522,779 | 543,623 | ||
Equity: | ||||
Preferred stock, par value | — | — | ||
Common stock, par value | 142,181 | 144,354 | ||
Additional paid-in capital | 119,975 | 117,165 | ||
Accumulated other comprehensive loss | (857,739) | (1,036,502) | ||
Retained earnings | 4,086,325 | 3,979,779 | ||
Total parent equity | 3,490,742 | 3,204,796 | ||
Noncontrolling interests in subsidiaries | 12,548 | 13,207 | ||
Total equity | 3,503,290 | 3,218,003 | ||
Total liabilities and equity | ||||
GENUINE PARTS COMPANY AND SUBSIDIARIES | ||||||
Year Ended December 31 | ||||||
(in thousands) | 2021 | 2020 | 2019 | |||
Operating activities: | ||||||
Net income (loss) | $ 898,790 | $ (29,102) | $ 621,085 | |||
Net loss from discontinued operations | — | (192,497) | (25,390) | |||
Net income from continuing operations | 898,790 | 163,395 | 646,475 | |||
Adjustments to reconcile net income from continuing operations to net cash | ||||||
Depreciation and amortization | 290,971 | 272,842 | 257,263 | |||
Excess tax benefit from share-based compensation | (7,076) | (677) | (4,920) | |||
Deferred income taxes | 31,676 | (27,722) | (55,939) | |||
Share-based compensation | 25,597 | 22,621 | 28,703 | |||
Loss on software disposal | 61,063 | — | — | |||
Realized currency and other divestiture losses | — | 11,356 | 34,701 | |||
Gain on equity investments | (10,229) | — | (38,663) | |||
Goodwill impairment charge | — | 506,721 | — | |||
Other operating activities | (21,183) | 12,569 | (17,589) | |||
Changes in operating assets and liabilities: | ||||||
Trade accounts receivable, net | (258,994) | 957,514 | (134,163) | |||
Merchandise inventories, net | (329,237) | 58,462 | (54,765) | |||
Trade accounts payable | 777,318 | 89,350 | 82,739 | |||
Other short-term assets and liabilities | (148,089) | (109,812) | 11,740 | |||
Other long-term assets and liabilities | (52,322) | 57,903 | 76,937 | |||
Net cash provided by operating activities from continuing operations | 1,258,285 | 2,014,522 | 832,519 | |||
Investing activities: | ||||||
Purchases of property, plant and equipment | (266,136) | (153,502) | (277,873) | |||
Proceeds from sale of property, plant and equipment | 26,549 | 18,064 | 24,387 | |||
Proceeds from divestitures of businesses | 17,738 | 387,379 | 434,609 | |||
Acquisitions of businesses and other investing activities | (284,315) | (69,173) | (724,718) | |||
Net cash (used in) provided by investing activities from continuing operations | (506,164) | 182,768 | (543,595) | |||
Financing activities: | ||||||
Proceeds from debt | 892,694 | 2,638,014 | 5,037,168 | |||
Payments on debt | (1,053,423) | (3,533,017) | (4,897,769) | |||
Share-based awards exercised | (22,346) | (4,120) | (11,413) | |||
Dividends paid | (465,649) | (453,277) | (438,890) | |||
Purchase of stock | (333,599) | (96,215) | (74,187) | |||
Other financing activities | (7,209) | (65,150) | (871) | |||
Net cash used in financing activities from continuing operations | (989,532) | (1,513,765) | (385,962) | |||
Cash flows from discontinued operations: | ||||||
Net cash flows provided by operating activities from discontinued operations | — | 5,039 | 59,491 | |||
Net cash used in investing activities from discontinued operations | — | (11,131) | (19,611) | |||
Net cash provided by financing activities from discontinued operations | — | — | — | |||
Net cash (used in) provided by discontinued operations | — | (6,092) | 39,880 | |||
Effect of exchange rate changes on cash and cash equivalents | (38,054) | 35,741 | 603 | |||
Net (decrease) increase in cash and cash equivalents | (275,465) | 713,174 | (56,555) | |||
Cash and cash equivalents at beginning of year | 990,166 | 276,992 | 333,547 | |||
Cash and cash equivalents at end of year | $ 714,701 | $ 990,166 | $ 276,992 | |||
Supplemental disclosures of cash flow information | ||||||
Cash paid during the year for: | ||||||
Income taxes | $ 305,326 | $ 223,019 | $ 303,736 | |||
Interest | $ 65,732 | $ 91,344 | $ 95,281 | |||
GENUINE PARTS COMPANY AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME FROM CONTINUING OPERATIONS TO ADJUSTED NET INCOME FROM CONTINUING OPERATIONS AND GAAP DILUTED NET INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE TO ADJUSTED DILUTED NET INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE (UNAUDITED) | ||||||||
Three Months Ended | Twelve Months Ended | |||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||
GAAP net income from continuing operations | $ 255,999 | $ 171,632 | $ 898,790 | $ 163,395 | ||||
Adjustments: | ||||||||
Loss on software disposal (1) | — | — | 61,063 | — | ||||
Product liability damages award (2) | — | — | 77,421 | — | ||||
Goodwill impairment charge (3) | — | — | — | 506,721 | ||||
Restructuring costs (4) | — | 11,010 | — | 50,019 | ||||
Realized currency and other divestiture losses (5) | — | — | — | 11,356 | ||||
Gain on insurance proceeds related to SPR fire (6) | (3,862) | — | (3,862) | (13,448) | ||||
Gain on equity investments (7) | (10,229) | — | (10,229) | — | ||||
Inventory adjustment (8) | — | 40,000 | — | 40,000 | ||||
Transaction and other costs (9) | 3,655 | 18,425 | 3,655 | 39,817 | ||||
Total adjustments | (10,436) | 69,435 | 128,048 | 634,465 | ||||
Tax impact of adjustments | 10,661 | (20,089) | (29,828) | (32,822) | ||||
Adjusted net income from continuing operations | $ 256,224 | $ 220,978 | $ 997,010 | $ 765,038 | ||||
The table below represent amounts per common share assuming dilution:
Three Months Ended | Twelve Months Ended | |||||||
(in thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||
GAAP net income from continuing operations per common | $ 1.79 | $ 1.18 | $ 6.23 | $ 1.13 | ||||
Adjustments: | ||||||||
Loss on software disposal (1) | — | — | 0.42 | — | ||||
Product liability damages award (2) | — | — | 0.54 | — | ||||
Goodwill impairment charge (3) | — | — | — | 3.49 | ||||
Restructuring costs (4) | — | 0.08 | — | 0.34 | ||||
Realized currency and other divestiture losses (5) | — | — | — | 0.08 | ||||
Gain on insurance proceeds related to SPR fire (6) | (0.03) | — | (0.03) | (0.09) | ||||
Gain on equity investments (7) | (0.07) | — | (0.07) | — | ||||
Inventory adjustment (8) | — | 0.28 | — | 0.28 | ||||
Transaction and other costs (9) | 0.03 | 0.12 | 0.03 | 0.27 | ||||
Total adjustments | (0.07) | 0.48 | 0.89 | 4.37 | ||||
Tax impact of adjustments | 0.07 | (0.14) | (0.21) | (0.23) | ||||
Adjusted diluted net income from continuing operations | $ 1.79 | $ 1.52 | $ 6.91 | $ 5.27 | ||||
Weighted average common shares outstanding - | 143,053 | 145,160 | 144,221 | 145,115 | ||||
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 consolidated statements of income (loss).
Three Months Ended | Twelve Months Ended | |||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||
Cost of goods sold | $ — | $ 40,000 | $ — | $ 53,495 | ||||
Selling, administrative and other expenses | 3,655 | 1,881 | 142,139 | 10,094 | ||||
Restructuring costs | — | 11,010 | — | 50,019 | ||||
Goodwill impairment charge | — | — | — | 506,721 | ||||
Non-operating (income): Other | (14,091) | 16,544 | (14,091) | 14,136 | ||||
Total adjustments | $ (10,436) | $ 69,435 | $ 128,048 | $ 634,465 | ||||
(1) | Adjustment reflects a loss on an internally developed software project that was disposed of due to a change in management strategy related to advances in alternative technologies. |
(2) | Adjustment reflects damages reinstated by the Washington Supreme Court order on July 8, 2021 in connection with a 2017 automotive product liability claim. |
(3) | Adjustment reflects a goodwill impairment charge related to the Company's European reporting unit. |
(4) | Adjustment reflects restructuring costs related to the execution of the 2019 Cost Savings Plan. The costs are primarily associated with severance and other employee costs, including a voluntary retirement program, and facility and closure costs related to the consolidation of operations. |
(5) | Adjustment reflects realized currency losses related to divestitures. |
(6) | Adjustment reflects insurance recoveries in excess of losses incurred on inventory, property, plant and equipment and other fire-related costs related to the S.P. Richards Headquarters and Distribution Center. |
(7) | Adjustment relates to gains recognized upon remeasurement of certain equity investments to fair value upon acquiring the remaining equity of those entities. |
(8) | Adjustment reflects an increase to cost of goods sold due to the correction of an immaterial error related to the accounting in prior years for consideration received from vendors. |
(9) | Adjustment for the twelve months ended December 31, 2021 include transaction and other costs related to acquisitions. For the twelve months ended December 31, 2020, adjustment includes a |
GENUINE PARTS COMPANY AND SUBSIDIARIES CHANGE IN NET SALES SUMMARY (UNAUDITED) | ||||||||||
Three Months Ended December 31, 2021 | ||||||||||
Comparable Sales | Acquisitions | Foreign Currency | Other | GAAP Total Net Sales | ||||||
Automotive | 10.6 % | 2.8 % | (0.2) % | (0.1) % | 13.1 % | |||||
Industrial | 12.5 % | — % | 0.3 % | — % | 12.8 % | |||||
Total Net Sales | 11.3 % | 1.9 % | (0.1) % | (0.1) % | 13.0 % | |||||
Twelve Months Ended December 31, 2021 | ||||||||||
Comparable Sales | Acquisitions | Foreign Currency | Other | GAAP Total Net Sales | ||||||
Automotive | 11.0 % | 2.0 % | 3.0 % | (0.5) % | 15.5 % | |||||
Industrial | 9.7 % | 0.4 % | 1.3 % | — % | 11.4 % | |||||
Total Net Sales | 10.5 % | 1.5 % | 2.4 % | (0.3) % | 14.1 % | |||||
GENUINE PARTS COMPANY AND SUBSIDIARIES RECONCILIATION OF GAAP NET CASH PROVIDED BY OPERATING ACTIVITIES FROM CONTINUING OPERATIONS TO FREE CASH FLOW (UNAUDITED) | ||||
Twelve Months Ended December 31, | ||||
(in thousands) | 2021 | 2020 | ||
Net cash provided by operating activities from continuing operations | $ 1,258,285 | $ 2,014,522 | ||
Purchases of property, plant and equipment | (266,136) | (153,502) | ||
Free Cash Flow | $ 992,149 | $ 1,861,020 | ||
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SOURCE Genuine Parts Company
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