Genuine Parts Company · NYSE:GPC
Genuine Parts — Q2 2024 Earnings Presentation
21 slides from Genuine Parts's earnings presentation, Jul 23, 2024
Slide 1: Q2'24 Earnings Presentation
Q2’24 Earnings Presentation July 23, 2024
Slide 2: GPC Snapshot (as of 6/30/2024)
GPC Snapshot (as of 6/30/2024) Global Footprint Key Statistics TTM Revenue by Region Founded 1928 Headquarters Atlanta, GA Countries Served 17 Locations ~10,780 • Distribution Centers ~195 • Warehouses ~740 16% Europe • Retail (Owned/Independent) ~9,845 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 ✓ Quarterly results reflect softer than expected market conditions ✓ Results demonstrate the value of our complimentary business mix paired with our geographic diversity ✓ Despite a challenging macro-environment, our teams are operating well and remain focused on executing our long-term
Slide 5: Q2'24 Performance
Q2’24 Performance Sales Gross Margin Adj EBITDA1 Segment Profit1 Segment Margin1 Adj Diluted EPS1 $6.0B 36.6% $569M $591M 9.9% $2.44 Increase of 0.8% Improved 50 bps Increase of 1% Decreased 4% Decreased 50 bps In-line YoY At June 30 Cash From Operations Working Capital2 Capital Ample Liquidity Fina
Slide 6: Q2'24 Industrial Performance
Q2’24 Industrial Performance Global Sales Global Comps1 Segment Profit2 Segment Margin2 $2.2B -1.6% $277M 12.4% Decreased 1.1% 6% comp in the PY Decreased 2% Decreased 10 bps Highlights: • Monthly PMI readings entered back into Market Total Sales3 contraction territory versus our expectation of a sl
Slide 7: Q2'24 Automotive Performance
Q2’24 Automotive Performance Global Sales Global Comps1 Segment Profit2 Segment Margin2 $3.7B -0.6% $314M 8.4% Increase of 2.0% 4% comp in the PY Decreased 5% Decreased 60 bps Highlights: Market Total Sales3 Comp Sales1,3 • Experienced accelerated softness in Europe U.S. +0.5% (1.5%) and choppy dema
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 2024 Capital Deployment Key Priorities Reinvestment • ~$259M CapEx YTD 22% • Projecting ’24 CapEx of ~$500M 23% M&A • ~$580M YTD 6% ~$1.2B • Targeting additional acquisitions in ’24 Share Repurchases • ~$75M spend for ~510K shares YTD • Continued share buy-backs in ’
Slide 10: 2024 Outlook
2024 Outlook1 Current Previous Total Sales Growth 1% to 3% 3% to 5% • Automotive 1% to 3% 2% to 4% • Industrial 0% to 2% 3% to 5% Diluted EPS $8.55 to $8.75 $9.05 to $9.20 Adj Diluted EPS2 $9.30 to $9.50 $9.80 to $9.95 Adj EPS Growth2 0% to 2% 5% to 7% Cash from Operations $1.3B to $1.5B $1.3B to $1
Slide 11: 2024 Outlook (Cont.)
2024 Outlook (Cont.) ($ per share) 52 2H’24 Revisions ,2 . $9.80 – $9.95 . 82 32. 0 2 $9.30 – $9.50 0 01.01 0 0 .019 4 . 0 1 , 8 .0 6 1 7 0 . 0 0 6 0 1 Previous Q2 Below Sales Outlook Gross Margin SG&A Revised . Guidance Expectations Revision Upside Deleverage Guidance 3 0 GPC Q2’24 EARNINGS PRESENT
Slide 12: 2024 Outlook (Cont.)
2024 Outlook (Cont.) U.S. Business Days* Q1 Q2 Q3 Q4 FY 2024 64 64 64 63 255 2023 64 64 63 62 253 Difference 0 0 +1 +1 +2 *Our calculation of comparable sales is computed using total business days for the period, not calendar days. We believe a business day approach is a better representation given
Slide 13: Appendix
Appendix 13
Slide 14: Consolidated Net Sales and Diluted EPS Bridge
Consolidated Net Sales and Diluted EPS Bridge Appendix A Net Sales ($M) Adj Diluted Earnings Per Share1 $130 $5,963 $2.44 $2.44 $2.44 $5,915 ($26) $2.11 ($56) ($0.33) Q2'23 Core Sales Acquisitions FX & Other Q2'24 Q2'23 Adjustments Q2'23 EPS Core Q2'24 Adjustments Q2'24 GAAP EPS Operations Adj EPS G
Slide 15: 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, divestitures, foreign currency and other. Our calculation of comparable sales is computed using total b
Slide 16: Segment Data
Segment Data Appendix C 2024 2024 2023 (in thousands) TTM Q1 Q2 Q1 Q2 Q3 Q4 Net sales: Automotive $ 14,386,968 $ 3,574,020 $ 3,726,991 $ 3,505,827 $ 3,654,999 $ 3,626,943 $ 3,459,014 Industrial 8,769,716 2,209,611 2,235,576 2,259,291 2,260,007 2,197,659 2,126,870 Total net sales 23,156,684 5,783,631
Slide 17: 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 Q1 Q2 Q3 Q4 GAAP net income $ 1,212,511 $ 248,894 $ 295,544 $ 303,957 $ 344,494 $ 351,198 $ 316,875 Income taxes 382,724 76,287 90,657 100,449 109,595 1
Slide 18: 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 Q1 Q2 Q3 Q4 GAAP net income $ 1,212,511 $ 248,894 $ 295,544 $ 303,957 $ 344,494 $ 351,198 $ 316,875 Adjustments: Restructuring and other costs (1) 120,289 83,042 37,247 — — — — Acq
Slide 19: 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 Q1 Q2 Q3 Q4 GAAP net income $ 1,212,511 $ 248,894 $ 295,544 $ 303,957 $ 344,494 $ 351,198 $ 316,875 Depreciation and amortization 362,253 90,610 99,202 87,215 90,873 83,860 88,581 Inte
Slide 20: 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, 2024 TTM Ended June 30, 2024 Net cash provided by operating activities $ 611,915 $ 1,590,522 Less: Purchases of property, plant and equipment 259,245 566,584 Free Cash Flow $ 352,
Slide 21: 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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