Company Announcements

Genuine Parts Company Reports Second Quarter 2020 Results

ATLANTA, July 30, 2020 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC) announced today its results for the second quarter and six months ended June 30, 2020. For the periods presented, the Company's Business Products segment, sold on June 30, 2020, has been classified as Discontinued Operations.

The second quarter's sales environment was pressured by the unprecedented global COVID-19 pandemic. Broad shelter-in-place restrictions, full lockdowns and other measures significantly slowed mobility and overall economic activity, contributing to a significant sales decline in April. While Industrial segment sales remained pressured throughout the quarter, the Automotive Group had a stronger recovery in May and June led by sales volumes in Europe and Australasia that returned to pre-COVID-19 levels.

"We are aggressively managing our company's operations through the challenges of COVID-19, both by managing the short-term dynamics and impacts and staying focused on our long-term growth initiatives," said Paul Donahue, Chairman and Chief Executive Officer of Genuine Parts Company.

Second Quarter 2020 Results

Sales from continuing operations were $3.8 billion, a 14.2% decrease compared to $4.5 billion in the same period of the prior year. The decrease in sales is attributable to a 13.7% decline in comparable sales, a 4.1% impact from divestitures and a 0.6% net impact of foreign currency and other. These items were partially offset by a 4.2% benefit from acquisitions. Excluding divestitures, net sales from continuing operations were down 10.1% in the second quarter(1).

The net loss from continuing operations was $363.5 million, or a diluted loss per share of $2.52, primarily driven by a non-cash goodwill impairment charge related to our European operations. This compares to net income from continuing operations of $209.5 million, or $1.43 per diluted share in the prior year period. Excluding the impact of goodwill impairment, restructuring, transaction and other costs and income, the Company's adjusted net income from continuing operations was $190.5 million, compared to $215.4 million a year ago. On a per share diluted basis, adjusted net income from continuing operations was $1.32, a decrease of 10.2% compared to $1.47 per diluted share last year(1).

Mr. Donahue stated, "Working as a team, we have executed through the pandemic with speed and agility, which is evident in our second quarter results. Our financial performance was highlighted by improving sales trends in automotive, continued gross margin expansion, transformative cost actions that generated significant savings, operating margin expansion, a stronger, more flexible balance sheet and strong cash flows. We are also pleased to have completed the sale of our S.P. Richards'U.S. operations and The Safety Zone and Impact Products operations, marking a significant step toward fully optimizing our portfolio and further advancing our strategy to grow our higher-margin automotive and industrial businesses."

Second Quarter 2020 Segment Highlights

Automotive Parts Group

Sales for the Automotive Group were $2.5 billion in the second quarter, down 10.1% from 2019 and representing 65% of total company revenues. The decline consisted of an approximate 12.6% decrease in comparable sales and a 0.7% net impact of unfavorable foreign currency and other. These items were partially offset by a 3.2% benefit from acquisitions. Segment profit of $219 million was down 4.3%, with profit margin at 8.8%, up 60 basis points from 2019.

Industrial Parts Group

Sales for the Industrial Parts Group were $1.3 billion, down 21.1%, or down 10.2% excluding the EIS divestiture, and representing 35% of total company revenues. The decrease in sales excluding divestitures reflects an approximate 16.7% decrease in comparable sales and a slightly unfavorable foreign currency impact, offset by a 6.7% benefit from acquisitions. Segment profit of $109 million was down 20% from 2019, or down 9.8% excluding EIS, and profit margin was flat year over year at 8.2%.

Six Months 2020 Results

Sales from continuing operations for the six months ended June 20, 2020 were $7.9 billion, a 9.2% decrease as compared to $8.7 billion for the same period in 2019. Excluding divestitures, net sales from continuing operations were down 4.7% for the six months. The net loss from continuing operations for the six months was $241.2 million, or a loss of $1.67 per diluted share. Excluding items which impact comparability with prior periods as noted above, the Company's adjusted net income from continuing operations was $307.3 million, or $2.12 per diluted share(1).

(1) Adjusted net income, adjusted diluted net income per common share and sales excluding divestitures 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.

Balance Sheet Cash Flow and Capital Allocation

The Company generated cash flow from operations of $921 million during the first half of 2020, a significant increase from the prior year, driven primarily by entering into an agreement to sell accounts receivable which provided $500 million of operating cash flows and the effective management of our working capital. Capital expenditures during the first half of 2020 were $74 million, a decrease of 27% compared to the prior year, driven by the Company's efforts to reduce non-essential capital expenditures as a result of COVID-19. Proceeds from the sale of S.P Richards of approximately $400 million were used to pay down debt and further strengthen our cash position.

The Company returned $321 million to shareholders during the first half of 2020, including $225 million in the form of quarterly dividends and $96 million in share repurchases. As previously announced, the Company decided to pause its share repurchase program and curtail any material acquisition activities until there is greater visibility into the macro environment. Given the current economic conditions, and out of an abundance of caution, the Company remains focused on maintaining liquidity and maximizing cash flow.

Net debt (debt maturities less cash and cash equivalents) at the end of the quarter was approximately $2.2 billion, and the Company has available liquidity of approximately $2.6 billion, inclusive of approximately $1.0 billion in cash on hand. The Company reduced debt by $400 million and strengthened its cash position during the quarter and is in compliance with all its debt covenants as of the quarter-end.

Mr. Donahue concluded, "We move forward as a streamlined organization focused on our automotive and industrial operations and with a well-defined strategic framework intended to maximize growth and value creation for all stakeholders. Despite the economic uncertainty, future impact of COVID-19 and the pace of recovery, GPC stands well-positioned and prepared for the various scenarios that may evolve over the near term, and we look forward to executing our strategic plans into 2021."

2020 Outlook

On April 6, 2020, the Company withdrew its full-year 2020 guidance due to the economic uncertainty relating to the rapidly evolving COVID-19 pandemic and the limited visibility on the impacts to our businesses. We will not be providing annual guidance updates until macro-economic conditions stabilize.

Non-GAAP Information

This release contains certain financial information not derived in accordance with United States generally accepted accounting principles ("GAAP"). These items include changes in sales excluding divestitures, adjusted net (loss) income from continuing operations and adjusted diluted net (loss) income from continuing operations per common share to account for the impact of these adjustments. The Company believes that the presentation of changes in sales excluding divestitures, adjusted net (loss) income from continuing operations and adjusted diluted net (loss) income from continuing operations 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 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, divestitures and foreign currency. 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.

Daily Sales

Daily sales is a key metric that represents the amounts invoiced to the Company's customers each day. Daily sales do not represent GAAP-based sales because, among other things, invoices are not always generated at the same time goods and services are delivered to customers and the amounts do not include adjustments for estimates of returns, rebates or other forms of variable consideration. Management uses this metric to monitor demand trends at each of its subsidiaries throughout each month for the purposes of monitoring performance against forecasts and to make operational decisions. The Company considers this metric useful to investors because it provides greater transparency into management's view and assessment of the Company's ongoing operations. The calculation of this 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 website at http://genuineparts.investorroom.com. The call is also available by dialing 877-407-0789, conference ID 13706045. A replay will also be available on the Company's website or at 844-512-2921, conference ID 13706045, two hours after the completion of the call until 12:00 a.m. Eastern time on August 13, 2020.

About Genuine Parts Company

Founded in 1928, Genuine Parts Company is a global service organization engaged in the distribution of automotive replacement parts and industrial parts. The Company's Automotive Parts Group distributes automotive replacement parts in the U.S., Canada, Mexico, Australasia, France, the U.K., Germany, Poland, the Netherlands and Belgium. The Company's Industrial Parts Group distributes industrial replacement parts in the U.S., Canada, Mexico and Australasia. Further information is available at www.genpt.com.

Forward Looking Statements

Some statements in this press release and the related conference call, 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. 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," and variations of such words and similar expressions are intended to identify such forward-looking statements. Senior officers may also make verbal statements, including during today's conference call, to analysts, investors, the media and others that are forward-looking. These forward-looking statements include, without limitation, our expected ability to operate and protect our workforce during the COVID-19 pandemic, our strategy to grow our higher-margin automotive and industrial businesses, the execution and effect of our cost savings initiatives, our efforts and initiatives to help us emerge from the pandemic well-positioned, our ongoing efforts to maintain compliance and flexibility under our debt covenants, our liquidity position and actions to maximize cash flow to continue to operate during these highly uncertain times and plans for future cost savings.

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 extent and duration of the disruption to our business operations caused by the global health crisis associated with the COVID-19 outbreak, including the effects on the financial health of our business partners and customers, on supply chains and our suppliers, on vehicle miles driven as well as other metrics that affect our business, and on access to capital and liquidity provided by the financial and capital markets; the Company's ability to maintain compliance with its debt covenants; the Company's ability to successfully integrate acquired businesses into the Company and to realize the anticipated synergies and benefits; the Company's ability to successfully divest businesses; the Company's ability to successfully implement its business initiatives in its two business segments; slowing demand for the Company's products; the ability to maintain favorable supplier arrangements and relationships; disruptions in our suppliers' operations, including the impact of COVID-19 on our suppliers as well as our supply chain; changes in national and international legislation or government regulations or policies, including changes to import tariffs, short term government subsidies, and the unpredictability of such changes and their impact to the Company and its suppliers and customers, data security policies and requirements as well as privacy legislation; changes in general economic conditions, including unemployment, inflation (including the impact of tariffs) or deflation and the United Kingdom's exit from the European Union, commonly known as Brexit, and the unpredictability of the impact following such exit from the European Union; 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 our 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 2019, the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020 and Item 1A, risk factors (all of which risks may be amplified by the COVID-19 outbreak) 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.

 

GENUINE PARTS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)





Three Months Ended June 30,


Six Months Ended June 30,

(in thousands, except per share data)


2020


2019


2020


2019

Net sales


$

3,823,227



$

4,457,931



$

7,915,753



$

8,717,060


Cost of goods sold


2,532,740



2,975,227



5,237,088



5,841,558


Gross profit


1,290,487



1,482,704



2,678,665



2,875,502


Operating expenses:









Selling, administrative and other expenses


971,589



1,127,296



2,114,286



2,238,715


Depreciation and amortization


66,733



62,684



133,987



121,301


Provision for doubtful accounts


11,300



5,513



17,819



9,238


Restructuring costs


25,059





28,041




Goodwill impairment charge


506,721





506,721




Total operating expenses


1,581,402



1,195,493



2,800,854



2,369,254


Non-operating (income) expenses:









Interest expense


25,465



23,262



46,430



47,116


Other


(11,944)



(18,250)



(24,776)



(15,082)


Total non-operating (income) expenses


13,521



5,012



21,654



32,034


(Loss) income before income taxes


(304,436)



282,199



(143,843)



474,214


Income taxes


59,065



72,680



97,312



119,011


Net (loss) income from continuing operations


(363,501)



209,519



(241,155)



355,203


Net (loss) income from discontinued operations


(200,871)



14,911



(186,682)



29,477


Net (loss) income


$

(564,372)



$

224,430



$

(427,837)



$

384,680


Dividends declared per common share


$

0.7900



$

0.7625



$

1.5800



$

1.5250


Basic (loss) earnings per share from continuing operations


$

(2.52)



$

1.43



$

(1.67)



$

2.43


Diluted (loss) earnings per share from continuing operations


$

(2.52)



$

1.43



$

(1.67)



$

2.42


Weighted average common shares outstanding


144,262



146,075



144,657



146,029


Dilutive effect of stock options and non-vested restricted stock awards




661





684


Weighted average common shares outstanding – assuming dilution


144,262



146,736



144,657



146,713


 

GENUINE PARTS COMPANY AND SUBSIDIARIES

SEGMENT INFORMATION

(UNAUDITED)





Three Months Ended June 30,


Six Months Ended June 30,

(in thousands)


2020


2019


2020


2019

Net sales:









Automotive


$

2,495,799



$

2,776,210



$

5,078,484



$

5,399,916


Industrial


1,327,428



1,681,721



2,837,269



3,317,144


Total net sales


$

3,823,227



$

4,457,931



$

7,915,753



$

8,717,060


Segment profit:









Automotive


$

218,906



$

228,736



$

361,484



$

408,304


Industrial


108,928



136,334



222,861



257,362


Total segment profit


327,834



365,070



584,345



665,666


Interest expense, net


(24,876)



(22,586)



(44,744)



(45,603)


Intangible asset amortization


(23,256)



(22,604)



(45,996)



(43,875)


Corporate expense


(28,613)



(33,573)



(83,674)



(64,752)


Other unallocated costs (1)


(555,525)



(4,108)



(553,774)



(37,222)


(Loss) income before income taxes from continuing operations


$

(304,436)



$

282,199



$

(143,843)



$

474,214



(1) The following table presents a summary of the other unallocated costs:




Three Months Ended June 30,


Six Months Ended June 30,

(in thousands)


2020


2019


2020


2019

Other unallocated costs:









Goodwill impairment charge


$

(506,721)



$



$

(506,721)



$


Restructuring costs


(25,059)





(28,041)




Realized currency loss


(11,356)





(11,356)



(27,037)


Gain on insurance proceeds related to SPR Fire


1,166





13,448




Transaction and other costs


(13,555)



(4,108)



(21,104)



(10,185)


Total other unallocated costs


$

(555,525)



$

(4,108)



$

(553,774)



$

(37,222)


 

GENUINE PARTS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)



 (in thousands, except share and per share data)


June 30, 2020


June 30, 2019

Assets





Current assets:





Cash and cash equivalents


$

983,759



$

562,551


Trade accounts receivable, less allowance for doubtful accounts (2020 – $42,139; 2019 – $27,295)


1,823,357



2,595,035


Merchandise inventories, net


3,351,751



3,384,044


Prepaid expenses and other current assets


1,132,461



911,623


Current assets of discontinued operations




731,417


 Total current assets


7,291,328



8,184,670


Goodwill


1,771,835



2,247,354


Other intangible assets, less accumulated amortization


1,422,680



1,436,724


Deferred tax assets


76,154



34,097


Property, plant and equipment, less accumulated depreciation (2020 – $1,275,388; 2019 – $1,248,386)


1,133,990



1,056,862


Operating lease assets


997,146



887,007


Other assets


570,829



482,440


Noncurrent assets of discontinued operations




310,318


Total assets


$

13,263,962



$

14,639,472







Liabilities and equity





Current liabilities:





Trade accounts payable


$

3,745,031



$

3,881,404


Current portion of debt


489,028



1,011,334


Dividends payable


113,968



111,380


Other current liabilities


1,620,703



1,256,087


Current liabilities of discontinued operations




238,023


Total current liabilities


5,968,730



6,498,228


Long-term debt


2,727,929



2,871,106


Operating lease liabilities


756,346



662,727


Pension and other post–retirement benefit liabilities


249,649



208,008


Deferred tax liabilities


210,003



212,308


Other long-term liabilities


480,417



437,165


Noncurrent liabilities of discontinued operations




61,955


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 – 2020 – 144,264,189 shares; 2019 – 146,078,369 shares


144,264



146,078


Additional paid-in capital


107,819



83,949


Retained earnings


3,809,564



4,630,480


Accumulated other comprehensive loss


(1,212,372)



(1,195,179)


Total parent equity


2,849,275



3,665,328


Noncontrolling interests in subsidiaries


21,613



22,647


Total equity


2,870,888



3,687,975


Total liabilities and equity


$

13,263,962



14,639,472


 

GENUINE PARTS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)





Six Months Ended June 30,

(in thousands)


2020


2019

Operating activities:





Net (loss) income


$

(427,837)



$

384,680


Net (loss) income from discontinued operations


(186,682)



29,477


Net (loss) income from continuing operations


(241,155)



355,203


Adjustments to reconcile net (loss) income from continuing operations to net cash provided by operating activities:





Depreciation and amortization


133,987



121,301


Share-based compensation


9,854



11,407


Excess tax benefits from share-based compensation


162



(3,986)


Realized currency losses


11,356



27,037


Goodwill impairment charge


506,721




Changes in operating assets and liabilities


499,795



(262,997)


Net cash provided by operating activities from continuing operations


920,720



247,965


Investing activities:





Purchases of property, plant and equipment


(74,358)



(102,180)


Proceeds from sale of property, plant and equipment


6,838



8,888


Proceeds from divestitures of businesses


382,737



12,028


Acquisitions of businesses and other investing activities


(15,393)



(378,237)


Net cash provided by (used in) investing activities from continuing operations


299,824



(459,501)


Financing activities:





Proceeds from debt


1,885,109



2,973,236


Payments on debt


(2,082,271)



(2,359,975)


Share-based awards exercised


(790)



(7,371)


Dividends paid


(225,327)



(216,724)


Purchases of stock


(95,719)




Other financing activities


(8,357)




Net cash (used in) provided by financing activities from continuing operations


(527,355)



389,166


Cash flows from discontinued operations:





Net cash provided by operating activities from discontinued operations


31,668



53,410


Net cash used in investing activities from discontinued operations


(11,131)



(4,497)


Net cash provided by financing activities from discontinued operations





Net cash provided by discontinued operations


20,537



48,913


Effect of exchange rate changes on cash and cash equivalents


(6,959)



2,461


Net increase in cash and cash equivalents


706,767



229,004


Cash and cash equivalents at beginning of period


276,992



333,547


Cash and cash equivalents at end of period


$

983,759



$

562,551


 

GENUINE PARTS COMPANY AND SUBSIDIARIES

RECONCILIATION OF GAAP NET (LOSS) 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 (LOSS) INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE

(UNAUDITED)





Three Months Ended June 30,


Six Months Ended June 30,

(in thousands)


2020


2019


2020


2019

GAAP net (loss) income from continuing operations


$

(363,501)



$

209,519



$

(241,155)



$

355,203











Adjustments:









Goodwill impairment charge (1)


506,721





506,721




Restructuring costs (2)


25,059





28,041




Realized currency loss (3)


11,356





11,356



27,037


Gain on insurance proceeds related to SPR Fire (4)


(1,166)





(13,448)




Transaction and other costs (5)


13,555



4,108



21,104



10,185


Total adjustments


555,525



4,108



553,774



37,222


Tax impact of adjustments


(1,500)



1,769



(5,310)



(5,140)


Adjusted net income from continuing operations


$

190,524



$

215,396



$

307,309



$

387,285



The table below represent amounts per common share assuming dilution:




Three Months Ended June 30,


Six Months Ended June 30,

(in thousands, except per share data)


2020


2019


2020


2019

GAAP net (loss) income from continuing operations


$

(2.52)



$

1.43



$

(1.67)



$

2.42











Adjustments:









Goodwill impairment charge (1)


3.51





3.50




Restructuring costs (2)


0.17





0.19




Realized currency loss (3)


0.08





0.08



0.18


Gain on insurance proceeds related to SPR Fire (4)


(0.01)





(0.09)




Transaction and other costs (5)


0.10



0.03



0.15



0.07


Total adjustments


3.85



0.03



3.83



0.25


Tax impact of adjustments


(0.01)



0.01



(0.04)



(0.04)


Adjusted diluted net income from continuing operations  per common share


$

1.32



$

1.47



$

2.12



$

2.63


Weighted average common shares outstanding – assuming dilution


144,262



146,736



144,657



146,713



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.




Three Months Ended June 30,


Six Months Ended June 30,

(in thousands)


2020


2019


2020


2019

Cost of goods sold


$

12,891



$

2,960



$

12,891



$

2,960


Selling, administrative and other expenses


663



1,148



8,213



7,225


Goodwill impairment charge


506,721





506,721




Restructuring costs


25,059





28,041




Non-operating (income): Other


10,191





(2,092)



27,037


Total adjustments


$

555,525



$

4,108



$

553,774



$

37,222



(1) Adjustment reflects the second quarter goodwill impairment charge related to our European reporting unit.

(2) Adjustment reflects restructuring costs related to the ongoing execution of the 2019 Cost Savings Plan announced in the fourth quarter of 2019. 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.

(3) Adjustment reflects realized currency losses related to divestitures.

(4) 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.

(5) Adjustment reflects (i) $2.5 million and $8.5 million of incremental costs associated with COVID-19 for the three and six months ended June 30, 2020, respectively, and (ii) costs associated with certain divestitures. COVID-19 related costs include incremental costs incurred relating to fees to cancel marketing events and increased cleaning and sanitization materials, among other things.

 

 

GENUINE PARTS COMPANY AND SUBSIDIARIES

RECONCILIATION OF CHANGES IN GAAP TOTAL NET SALES TO NET SALES EXCLUDING DIVESTITURES

(UNAUDITED)




Three Months Ended June 30, 2020


GAAP Total Net Sales


Divestitures


Net Sales Excluding
Divestitures

Automotive

(10.1)

%


0.0

%


(10.1)

%

Industrial

(21.1)

%


(10.9)

%


(10.2)

%

Total Net Sales

(14.2)

%


(4.1)

%


(10.1)

%




Six Months Ended June 30, 2020


GAAP Total Net Sales


Divestitures


Net Sales Excluding
Divestitures

Automotive

(6.0)

%


(0.3)

%


(5.7)

%

Industrial

(14.5)

%


(11.7)

%


(2.8)

%

Total Net Sales

(9.2)

%


(4.5)

%


(4.7)

%

 

GENUINE PARTS COMPANY AND SUBSIDIARIES

CHANGE IN NET SALES SUMMARY

(UNAUDITED)





Three Months Ended June 30, 2020



Comparable
Sales


Acquisitions


Divestitures


Foreign
Currency


Other


GAAP Total
Net Sales

Automotive


(12.6)

%


3.2

%


0.0

%


(1.2)

%


0.5

%


(10.1)

%

Industrial


(16.7)

%


6.7

%


(10.9)

%


(0.2)

%


%


(21.1)

%

Total Net Sales


(13.7)

%


4.2

%


(4.1)

%


(0.9)

%


0.3

%


(14.2)

%





Six Months Ended June 30, 2020



Comparable
Sales


Acquisitions


Divestitures


Foreign
Currency


Other


GAAP Total
Net Sales

Automotive


(8.9)

%


4.2

%


(0.3)

%


(1.5)

%


0.5

%


(6.0)

%

Industrial


(9.9)

%


7.2

%


(11.7)

%


(0.1)

%


%


(14.5)

%

Total Net Sales


(9.0)

%


5.0

%


(4.5)

%


(1.0)

%


0.3

%


(9.2)

%

 

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SOURCE Genuine Parts Company