Genuine Parts Company · NYSE:GPC
Genuine Parts — Q3 2024 Earnings Presentation
22 slides from Genuine Parts's earnings presentation, Oct 22, 2024
Slide 1: Q3'24 Earnings Presentation
Q3’24 Earnings Presentation October 22, 2024
Slide 2: GPC Snapshot (as of 9/30/2024)
GPC Snapshot (as of 9/30/2024) Global Footprint Key Statistics TTM Revenue by Region Founded 1928 Headquarters Atlanta, GA Countries Served 17 Locations ~10,820 • Distribution Centers ~195 • Warehouses ~755 16% Europe • Retail (Owned/Independent) ~9,870 Employees ~60,000 75% 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 Weaker demand environment, along with ongoing cost pressures drove quarterly results below our expectations Remain urgent and focused on controlling what we can to grow in excess of market growth and to improve our business Despite the quarterly results, we are confident that we a
Slide 5: Q3'24 Performance
Q3’24 Performance Sales Gross Margin Adj EBITDA1 Segment Profit1 Segment Margin1 Adj Diluted EPS1 $6.0B 36.8% $477M $521M 8.7% $1.88 Increase of 2.5% Improved 60 bps Decreased 16% Decreased 14% Decreased 170 bps Decreased 24% At September 30 Cash From Operations Financial $1.1B Working Capital2 Capi
Slide 6: Q3'24 Industrial Performance
Q3’24 Industrial Performance Global Sales1 Global Comps1,2 Segment Profit3 Segment Margin3 $2.2B -2.4% $259M 11.9% Decreased 1.2% Decreased 9% Decreased 100 bps Highlights: Market Total Sales4 • Lagging industrial production activity continues to be the main headwind; longest period of contraction f
Slide 7: Q3'24 Automotive Performance
Q3’24 Automotive Performance Global Sales1 Global Comps1,2 Segment Profit3 Segment Margin3 $3.8B +0.2% $262M 6.9% Increase of 4.8% Decreased 19% Decreased 200 bps Market Total Sales4 Comp Sales2,4 Highlights: • Continued softness in market conditions across U.S.1 +4.0% (0.1%) our global geographies
Slide 8: GPC Q3'24 Adjusted EPS Bridge
GPC Q3’24 Adjusted EPS Bridge ($ per share) 2 2. $2.49 . 23 2 ($0.25) . $1.88 0 2 01.01 ($0.38) ($0.06) $0.08 0 . 0 1 9 4 .0 1 , 8. 6 01 7 0 .0 0 6 0 1 Q3’23 Planned Sales Deleverage Hurricanes / Restructuring Q3’24 . IT, D&A, & SG&A Inflation CrowdStrike Initiatives 3 Interest Costs Impact 0 GPC Q3
Slide 9: 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 10: Effective Capital Allocation
Effective Capital Allocation YTD 2024 Capital Deployment Key Priorities Reinvestment • ~$386M CapEx YTD 22% 21% • Projecting ’24 CapEx of ~$500M M&A • ~$954M YTD 6% ~$1.9B • Targeting additional acquisitions in ’24 Share Repurchases • ~$112M spend for ~779K shares YTD • Continued share buy-backs in
Slide 11: 2024 Outlook
2024 Outlook1 Current Previous Total Sales Growth 1% to 2% 1% to 3% • Automotive 3% to 4% 1% to 3% • Industrial -2% to -1% 0% to 2% Diluted EPS $6.60 to $6.80 $8.55 to $8.75 Adj Diluted EPS2 $8.00 to $8.20 $9.30 to $9.50 Adj EPS Growth2 -14% to -12% 0% to 2% Cash from Operations $1.3B to $1.5B $1.3B
Slide 12: GPC 2024 Adjusted EPS Guidance Bridge
GPC 2024 Adjusted EPS Guidance Bridge ($ per share) 52 ,.$9.30 – $9.50 83 00 $8.00 – $8.20 0 Previous Q3’24 Below Q4’24 Revised Sales Deleverage New Guidance Expectation End Market & Sales & SG&A Inflation Guidance Outlook GPC Q3’24 EARNINGS PRESENTATION | 12
Slide 13: 2024 Outlook (Cont.)
2024 Outlook (Cont.) U.S. Business Days* Q1 Q2 Q3 Q4 FY 2024 64 64 64 63 255 2023 64 64 63 62 253 Difference 0 0 +1 +1 +2 *Our calculation of comparable sales is computed using total business days for the period, not calendar days. We believe a business day approach is a better representation given
Slide 14: Appendix
Appendix 14
Slide 15: Consolidated Net Sales and Diluted EPS Bridge
Consolidated Net Sales and Diluted EPS Bridge Appendix A Net Sales ($M) Adj Diluted Earnings Per Share1 $2.49 $2.49 $7 $5,970 $186 $5,825 $1.88 ($0.61) $1.62 ($47) ($0.26) Q3'23 Core Sales Acquisitions FX & Other Q3'24 Q3'23 Adjustments Q3'23 EPS Core Q3'24 Adjustments Q3'24 GAAP EPS Operations Adj
Slide 16: Other Information
Other Information Appendix B Comparable Sales: Comparable sales or “comp sales” is a key metric that refers to period-over-period comparisons of our net sales excluding the impact of acquisitions, foreign currency and other. Our calculation of comparable sales is computed using total business days f
Slide 17: Segment Data
Segment Data Appendix C 2024 2024 2023 (in thousands) TTM Q1 Q2 Q3 Q1 Q2 Q3 Q4 Net sales: Automotive $ 14,559,814 $ 3,574,020 $ 3,726,991 $ 3,799,789 $ 3,505,827 $ 3,654,999 $ 3,626,943 $ 3,459,014 Industrial 8,742,466 2,209,611 2,235,576 2,170,409 2,259,291 2,260,007 2,197,659 2,126,870 Total net s
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Appendix D Total Segment Profit & Total Segment Profit Margin 2024 2024 2023 (in thousands) TTM Q1 Q2 Q3 Q1 Q2 Q3 Q4 GAAP net income $ 1,087,895 $ 248,894 $ 295,544 $ 226,582 $ 303,957 $ 344,494 $ 351,198 $ 316,875 Income taxes 339,873 76,287 90,657 71,0
Slide 19: Reconciliation of Non-GAAP Financial Measures (Cont.)
Reconciliation of Non-GAAP Financial Measures (Cont.) Appendix D Adj Net Income 2024 2024 2023 (in thousands) TTM Q1 Q2 Q3 Q1 Q2 Q3 Q4 GAAP net income $ 1,087,895 $ 248,894 $ 295,544 $ 226,582 $ 303,957 $ 344,494 $ 351,198 $ 316,875 Adjustments: Restructuring and other costs (1) 161,312 83,042 37,24
Slide 20: Reconciliation of Non-GAAP Financial Measures (Cont.)
Reconciliation of Non-GAAP Financial Measures (Cont.) Appendix D Adj EBITDA 2024 2024 2023 (in thousands) TTM Q1 Q2 Q3 Q1 Q2 Q3 Q4 GAAP net income $ 1,087,895 $ 248,894 $ 295,544 $ 226,582 $ 303,957 $ 344,494 $ 351,198 $ 316,875 Depreciation and amortization 384,429 90,610 99,202 106,036 87,215 90,8
Slide 21: Reconciliation of Non-GAAP Financial Measures (Cont.)
Reconciliation of Non-GAAP Financial Measures (Cont.) Appendix D Free Cash Flow (in thousands) Nine Months Ended September 30, 2024 TTM Ended September 30, 2024 Net cash provided by operating activities $ 1,096,225 $ 1,449,389 Less: Purchases of property, plant and equipment 385,590 548,407 Free Cas
Slide 22: Explanation of Adjustments
Explanation of Adjustments Appendix D (1) Restructuring and other costs: Adjustment reflects the global restructuring initiative which includes a voluntary retirement offer in the U.S., inventory liquidation costs, and rationalization and optimization of certain distribution centers, stores and othe
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