Genuine Parts Company · NYSE:GPC
Genuine Parts — Q1 2023 Earnings Presentation
18 slides from Genuine Parts's earnings presentation, Apr 20, 2023
Slide 1: Q1'23 Earnings Presentation
Q1’23 Earnings Presentation April 20, 2023
Slide 2: GPC Snapshot (as of 3/31/2023)
GPC Snapshot (as of 3/31/2023) Global Footprint Key Statistics TTM Revenue by Region Founded 1928 Headquarters Atlanta, GA Countries Served 17 Locations ~10,545 • Distribution Centers ~205 • Warehouses ~720 14% Europe • Retail (Owned/Independent) ~9,620 Employees ~58,000 77% North America Market Cap
Slide 3: Safe Harbor Statement
Safe Harbor Statement FORWARD-LOOKING STATEMENTS: Some statements in this presentation, as well as in other materials we file with the Securities and Exchange Commission (SEC), release to the public, or make available on our website, constitute forward-looking statements that are subject to the safe
Slide 4: Key Messages
Key Messages Sales and earnings exceeded our expectations Strategic transformation to a global Automotive and Industrial company is a competitive advantage that distinguishes GPC in the marketplace Continue to benefit from business mix and the geographic diversity of our operations We are pr
Slide 5: Q1'23 Performance
Q1’23 Performance Sales Gross Margin EBITDA1 Segment Profit2 Segment Margin2 Diluted EPS $5.8B 34.9% $508M $526M 9.1% $2.14 Up 8.9% Improved 30 bps1 Up 11% Up 16% Improved 50 bps Up 15%1 At March 31 Cash From Operations Improved Working Capital Ample Liquidity Financial $198M YTD Capital4 Structure
Slide 6: Q1'23 Industrial Performance
Q1’23 Industrial Performance Global Sales Global Comps1 Segment Profit2 Segment Margin2 $2.3B +12.1% $262M 11.6% Up 11.9% 8th Consecutive Quarter of Up 39.1% Improved 230 bps DD Comp Sales Growth Highlights: Market Total Sales3 • Double-digit growth across most product categories and major industrie
Slide 7: Q1'23 Automotive Performance
Q1’23 Automotive Performance Global Sales Global Comps1 Segment Profit2 Segment Margin2 $3.5B 6.6% $264M 7.5% Up 7.0% 10.3% comp Down 0.1% Decreased 60 bps in the PY Highlights: Market Total Sales3 Comp Sales1,3 • DIFM and DIY sales were both positive, with U.S. 4% 3% DIFM growth outpacing DIY • Con
Slide 8: How We Win
How We Win Foundational Priorities for Strategic Investments Talent & Sales Supply Emerging Technology Culture Effectiveness Chain Technology Develop high potential Utilize data and analytics Enhance data and Modernize operations Lead in emerging talent and infuse to understand our digital capabilit
Slide 9: Effective Capital Allocation
Effective Capital Allocation Key Priorities Q1 2023 Capital Deployment Reinvestment • $88M CapEx in Q1 • Projecting ’23 CapEx of $375M - $400M 28% M&A 39% • $40M in Q1 ~$321M • Targeting additional acquisitions in ‘23 Share Repurchases 12% • $68M spend for ~411K shares in Q1 • Plans for additional s
Slide 10: 2023 Outlook
2023 Outlook1 Current Previous Total Sales Growth 4% to 6% 4% to 6% • Automotive 4% to 6% 4% to 6% • Industrial 4% to 6% 4% to 6% Diluted EPS $8.95 to $9.10 $8.80 to $8.95 Adj Diluted EPS $8.95 to $9.10 $8.80 to $8.95 Adj EPS Growth 7% to 9% 6% to 7% Cash from Operations $1.3B to $1.4B $1.2B to $1.4
Slide 11: Appendix
Appendix 11
Slide 12: Consolidated Net Sales and Diluted EPS Bridge
Consolidated Net Sales and Diluted EPS Bridge Appendix A Net Sales ($M) Diluted Earnings Per Share1 $127 $461 $5,765 ($118) $0.28 $2.14 $2.14 $5,295 $1.86 $0.14 $1.72 Q1'22 Core Sales Acquisitions FX & Other Q1'23 Q1'22 Adjustments Q1'22 Core Q1'23 EPS Adjustments Q1'23 GAAP EPS Adj. EPS Operations
Slide 13: Other Information
Other Information Appendix B Comparable Sales: Comparable sales or “comp sales” refer to period-over-period comparisons of our net sales excluding the impact of acquisitions, divestitures, foreign currency and other. The company considers this metric useful to investors because it provides greater t
Slide 14: Segment Data
Segment Data Appendix C 2023 2023 2022 (in thousands) TTM Q1 Q1 Q2 Q3 Q4 Net sales: Automotive $ 13,896,840 $ 3,505,827 $ 3,275,621 $ 3,467,494 $ 3,490,462 $ 3,433,057 Industrial 8,669,616 2,259,291 2,019,014 2,134,920 2,184,812 2,090,593 Total net sales 22,566,456 5,765,118 5,294,635 5,602,414 5,67
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Appendix D Adj Net Income 2023 2023 2022 (in thousands) TTM Q1 Q1 Q2 Q3 Q4 GAAP net income $ 1,240,820 $ 303,957 $ 245,838 $ 372,529 $ 312,358 $ 251,976 Adjustments: Gain on sale of real estate (1) (102,803) — — (102,803) — — Gain on insurance proceeds (
Slide 16: Reconciliation of Non-GAAP Financial Measures (Cont.)
Reconciliation of Non-GAAP Financial Measures (Cont.) Appendix D Adj EBITDA 2023 2023 2022 (in thousands) TTM Q1 Q1 Q2 Q3 Q4 GAAP net income $ 1,240,820 $ 303,957 $ 245,838 $ 372,529 $ 312,358 $ 251,976 Depreciation and amortization 347,665 87,215 87,369 85,890 86,563 87,997 Interest expense, net 70
Slide 17: Reconciliation of Non-GAAP Financial Measures (Cont.)
Reconciliation of Non-GAAP Financial Measures (Cont.) Appendix D Adj Operating and Non-Operating Expenses Three Months Ended March 31, QTD Change (in thousands) 2023 2022 $ Change % Change GAAP operating and non-operating expenses $ 1,608,995 $ 1,500,231 $ 108,764 7.2% Adjustments: Gain on insurance
Slide 18: Explanation of Adjustments
Explanation of Adjustments Appendix D (1) Gain on sale of real estate: Adjustment reflects a gain on the sale of real estate that had been leased to S.P. Richards. (2) Gain on insurance proceeds: Adjustment reflects insurance recoveries in excess of losses incurred on inventory, property, plant and
Genuine Parts Company — Q1 2023 Earnings Presentation on 6ix