Genuine Parts Company · NYSE:GPC
Genuine Parts — Q2 2023 Earnings Presentation
18 slides from Genuine Parts's earnings presentation, Jul 20, 2023
Slide 1: Q2'23 Earnings Presentation
Q2’23 Earnings Presentation July 20, 2023
Slide 2: GPC Snapshot (as of 6/30/2023)
GPC Snapshot (as of 6/30/2023) Global Footprint Key Statistics TTM Revenue by Region Founded 1928 Headquarters Atlanta, GA Countries Served 17 Locations ~10,630 • Distribution Centers ~205 • Warehouses ~710 15% Europe • Retail (Owned/Independent) ~9,715 Employees ~58,000 76% 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 ✓ Solid quarter, which includes record sales and double-digit adjusted earnings growth ✓ 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
Slide 5: Q2'23 Performance
Q2’23 Performance Sales Gross Margin EBITDA Segment Profit2 Segment Margin2 Diluted EPS $5.9B 36.1% $561M $613M 10.4% $2.44 Up 5.6% Improved 110 bps Up 8%1 Up 12% Improved 60 bps Up 11%1 At June 30 Cash From Operations Working Capital4 Capital Ample Liquidity Financial Strength and $457M YTD $1.2B S
Slide 6: Q2'23 Industrial Performance
Q2’23 Industrial Performance Global Sales Global Comps1 Segment Profit2 Segment Margin2 $2.3B +6.0% $283M 12.5% Up 5.9% 18% comp in the PY Up 26% Improved 190 bps Highlights: Market Total Sales3 • All product categories and major industries served posting positive gains from the prior year North Ame
Slide 7: Q2'23 Automotive Performance
Q2’23 Automotive Performance Global Sales Global Comps1 Segment Profit2 Segment Margin2 $3.7B 4.3% $329M 9.0% Up 5.4% 8% comp in the PY Up 2% Down 30 bps Highlights: Market Total Sales3 Comp Sales1,3 • DIFM and DIY sales were both positive, with U.S. +2% +1% DIFM growth outpacing DIY • Continued ben
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 YTD 2023 Capital Deployment Key Priorities Reinvestment • $205M CapEx YTD • Projecting ’23 CapEx of $375M - $400M 29% M&A 37% • $106M YTD ~$706M • Targeting additional acquisitions in ‘23 Share Repurchases 15% • $135M spend for ~841K shares YTD • Plans for additional sha
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 $9.15 to $9.30 $8.95 to $9.10 Adj Diluted EPS $9.15 to $9.30 $8.95 to $9.10 Adj EPS Growth 10% to 11.5% 7% to 9% Cash from Operations $1.3B to $1.4B $1.3B to
Slide 11: Appendix
Appendix 11
Slide 12: Consolidated Net Sales and Diluted EPS Bridge
Consolidated Net Sales and Diluted EPS Bridge Appendix A Net Sales ($M) Diluted Earnings Per Share1 $2.62 $2.44 $2.44 $103 $5,915 $0.24 $277 $2.20 ($67) $5,602 ($0.42) Q2'22 Core Sales Acquisitions FX & Other Q2'23 Q2'22 Adjustments Q2'22 Core Q2'23 EPS Adjustments Q2'23 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 Q2 Q1 Q2 Q1 Q2 Q3 Q4 Net sales: Automotive $ 14,084,345 $ 3,505,827 $ 3,654,999 $ 3,275,621 $ 3,467,494 $ 3,490,462 $ 3,433,057 Industrial 8,794,703 2,259,291 2,260,007 2,019,014 2,134,920 2,184,812 2,090,593 Total net sales 22,879,048 5,765,
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 Q2 Q1 Q2 Q1 Q2 Q3 Q4 GAAP net income $ 1,212,785 $ 303,957 $ 344,494 $ 245,838 $ 372,529 $ 312,358 $ 251,976 Adjustments: Gain on sale of real estate (1) — — — — (102,803) — — Gain on insurance
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 Q2 Q1 Q2 Q1 Q2 Q3 Q4 GAAP net income $ 1,212,785 $ 303,957 $ 344,494 $ 245,838 $ 372,529 $ 312,358 $ 251,976 Depreciation and amortization 352,648 87,215 90,873 87,369 85,890 86,563 87,997 I
Slide 17: Reconciliation of Non-GAAP Financial Measures (Cont.)
Reconciliation of Non-GAAP Financial Measures (Cont.) Appendix D Free Cash Flow (in thousands) Six Months Ended June 30, 2023 TTM Ended June 30, 2023 Net cash provided by operating activities $ 457,003 $ 1,132,989 Less: Purchases of property, plant and equipment (205,336) (391,992) Free Cash Flow $
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
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