Genuine Parts Company · NYSE:GPC
Genuine Parts — Q1 2024 Earnings Presentation
20 slides from Genuine Parts's earnings presentation, Apr 18, 2024
Slide 1: Q1'24 Earnings Presentation
Q1’24 Earnings Presentation April 18, 2024
Slide 2: GPC Snapshot (as of 3/31/2024)
GPC Snapshot (as of 3/31/2024) Global Footprint Key Statistics TTM Revenue by Region Founded 1928 Headquarters Atlanta, GA Countries Served 17 Locations ~10,820 • Distribution Centers ~200 • Warehouses ~720 16% Europe • Retail (Owned/Independent) ~9,900 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 ✓ Delivered solid first quarter results that exceeded our expectations ✓ Results demonstrate the value of our complimentary business mix paired with our geographic diversity ✓ Making great progress with our key investment pillars, driving meaningful change in our businesses that is posi
Slide 5: Q1'24 Performance
Q1’24 Performance Sales Gross Margin Adj EBITDA1 Segment Profit1 Segment Margin1 Adj Diluted EPS1 $5.8B 35.9% $517M $544M 9.4% $2.22 Increase of 0.3% Improved 100 bps Increase of 2% Increase of 3% Improved 30 bps Increase of 4% At March 31 Cash From Operations Working Capital2 Capital Ample Liquidit
Slide 6: Q1'24 Industrial Performance
Q1’24 Industrial Performance Global Sales Global Comps1 Segment Profit2 Segment Margin2 $2.2B -2.6% $271M 12.3% Decreased 2.2% 12% comp in the PY Increase of 3% Improved 70 bps Highlights: Market Total Sales3 • Results were in-line with our expectations, against the backdrop of the most challenging
Slide 7: Q1'24 Automotive Performance
Q1’24 Automotive Performance Global Sales Global Comps1 Segment Profit2 Segment Margin2 $3.6B +0.2% $273M 7.6% Increase of 1.9% 7% comp in the PY Increase of 3% Improved 10 bps Highlights: Market Total Sales3 Comp Sales1,3 • Total Automotive results benefited from global U.S. (0.3%) +0.6%* diversifi
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 • ~$116M CapEx YTD • Projecting ’24 CapEx of ~$500M 27% 32% M&A • ~$135M YTD ~$420M • Targeting additional acquisitions in ’24 Share Repurchases 9% • ~$37M spend for ~261K shares YTD 32% • Continued share buy-backs
Slide 10: 2024 Outlook
2024 Outlook1 Current Previous Total Sales Growth 3% to 5% 3% to 5% • Automotive 2% to 4% 2% to 4% • Industrial 3% to 5% 3% to 5% Diluted EPS $9.05 to $9.20 $8.95 to $9.15 Adj Diluted EPS $9.80 to $9.95 $9.70 to $9.90 Adj EPS Growth 5% to 7% 4% to 6% Cash from Operations $1.3B to $1.5B $1.3B to $1.5
Slide 11: 2024 Outlook (Cont.)
2024 Outlook (Cont.) U.S. Business Days* Q1 Q2 Q3 Q4 FY 2024 64 64 64 63 255 2023 64 64 63 62 253 Difference 0 0 +1 +1 +2 *Our calculation of comparable sales is computed using total business days for the period, not calendar days. We believe a business day approach is a better representation given
Slide 12: Appendix
Appendix 12
Slide 13: Consolidated Net Sales and Diluted EPS Bridge
Consolidated Net Sales and Diluted EPS Bridge Appendix A Net Sales ($M) Adj Diluted Earnings Per Share1 $0.08 $2.22 $109 $2.14 $2.14 $5,784 $5,765 ($41) $1.78 ($49) ($0.44) Q1'23 Core Sales Acquisitions FX & Other Q1'24 Q1'23 Adjustments Q1'23 EPS Core Q1'24 Adjustments Q1'24 GAAP EPS Operations Adj
Slide 14: 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 15: Segment Data
Segment Data Appendix C 2024 2024 2023 (in thousands) TTM Q1 Q1 Q2 Q3 Q4 Net sales: Automotive $ 14,314,976 $ 3,574,020 $ 3,505,827 $ 3,654,999 $ 3,626,943 $ 3,459,014 Industrial 8,794,147 2,209,611 2,259,291 2,260,007 2,197,659 2,126,870 Total net sales 23,109,123 5,783,631 5,765,118 5,915,006 5,82
Slide 16: 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 Q1 Q2 Q3 Q4 GAAP net income $ 1,261,461 $ 248,894 $ 303,957 $ 344,494 $ 351,198 $ 316,875 Income taxes 401,662 76,287 100,449 109,595 113,862 101,918 Incom
Slide 17: 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 Q1 Q2 Q3 Q4 GAAP net income $ 1,261,461 $ 248,894 $ 303,957 $ 344,494 $ 351,198 $ 316,875 Adjustments: Restructuring and other costs (1) 83,042 83,042 — — — — Total adjustments 83,042
Slide 18: 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 Q1 Q2 Q3 Q4 GAAP net income $ 1,261,461 $ 248,894 $ 303,957 $ 344,494 $ 351,198 $ 316,875 Depreciation and amortization 353,924 90,610 87,215 90,873 83,860 88,581 Interest expense, net 65
Slide 19: Reconciliation of Non-GAAP Financial Measures (Cont.)
Reconciliation of Non-GAAP Financial Measures (Cont.) Appendix D Free Cash Flow (in thousands) Three Months Ended March 31, 2024 TTM Ended March 31, 2024 Net cash provided by operating activities $ 318,306 $ 1,556,409 Less: Purchases of property, plant and equipment 115,690 540,265 Free Cash Flow $
Slide 20: Explanation of Adjustments
Explanation of Adjustments Appendix D (1) Restructuring and other costs: Adjustment reflects the global restructuring initiative, which includes costs related to a voluntary retirement offer in the U.S. and rationalization and optimization of certain distribution centers, stores and other facilities
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