Genuine Parts Company · NYSE:GPC
Genuine Parts — Q4 2023 Earnings Presentation
22 slides from Genuine Parts's earnings presentation, Feb 15, 2024
Slide 1: Q4'23 Earnings Presentation
Q4’23 Earnings Presentation February 15, 2024
Slide 2: GPC Snapshot (as of 12/31/2023)
GPC Snapshot (as of 12/31/2023) Global Footprint Key Statistics 2023 Revenue by Region Founded 1928 Headquarters Atlanta, GA Countries Served 17 Locations ~10,730 • Distribution Centers ~200 • Warehouses ~725 16% Europe • Retail (Owned/Independent) ~9,805 Employees ~60,000 75% North America Market C
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 on our financial commitments in 2023, third consecutive year of double-digit earnings growth Results demonstrate the value of our complimentary business mix paired with our geographic diversity Our Board approved the 68th consecutive annual increase to the GPC dividend
Slide 5: Q4'23 Performance
Q4’23 Performance Sales Gross Margin EBITDA Segment Profit2 Segment Margin2 Diluted EPS $5.6B 36.4% $523M $534M 9.6% $2.26 Increase of 1.1% Improved 70 bps Increase of 6%1 Increase of 2% Improved 10 bps Increase of 10%1 Cash From Operations Working Capital3 Capital Ample Liquidity Financial $1.4B FY
Slide 6: Q4'23 Industrial Performance
Q4’23 Industrial Performance Global Sales Global Comps1 Segment Profit2 Segment Margin2 $2.1B +1.2% $275M 12.9% Increase of 1.7% 17% comp in the PY Increase of 19% Improved 190 bps Highlights: Market Total Sales3 • 14th consecutive quarter of margin expansion • Continued progress with sales excellen
Slide 7: Q4'23 Automotive Performance
Q4’23 Automotive Performance Global Sales Global Comps1 Segment Profit2 Segment Margin2 $3.5B -2.7% $259M 7.5% Increase of 0.8% 8% comp in the PY Down 12% Down 110 bps Highlights: Market Total Sales3 Comp Sales1,3 • Total Automotive results benefited from global U.S. (5.6%) (6.1%) diversification •
Slide 8: FY'23 Performance
FY’23 Performance GPC Global Sales Gross Margin EBITDA Segment Profit2 Segment Margin2 Diluted EPS $23.1B 35.9% $2.2B $2.3B 9.9% $9.33 Increase of 4.5% Improved 80 bps1 Increase of 8%1 Increase of 10% Improved 50 bps Increase of 12% Industrial Global Sales Global Comps3 Segment Profit4 Segment Margi
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 2023 Capital Deployment Key Priorities Reinvestment • $513M CapEx in ‘23 • Projecting ’24 CapEx of ~$500M 33% 32% M&A • $309M in ‘23 ~$1.6B • Targeting additional acquisitions in ’24 Share Repurchases • $261M spend for ~1.8M shares in ‘23 16% 19% • Continued share buy-ba
Slide 11: 2024 Outlook
2024 Outlook1 Total Sales Growth 3% to 5% • Automotive 2% to 4% • Industrial 3% to 5% Diluted EPS $8.95 to $9.15 Adj Diluted EPS $9.70 to $9.90 Adj EPS Growth 4% to 6% Cash from Operations $1.3B to $1.5B Free Cash Flow2 $800M to $1B • Corporate expenses ~1.5% to 2% of sales • Capex ~$500M OTHER ASSU
Slide 12: 2024 Outlook (Cont.)
2024 Outlook (Cont.) U.S. Business Days* Q1 Q2 Q3 Q4 FY 2024 64 64 64 63 255 2023 64 64 63 62 253 Difference 0 0 +1 +1 +2 *Our calculation of comparable sales is computed using total business days for the period, not calendar days. We believe a business day approach is a better representation given
Slide 13: Appendix
Appendix 13
Slide 14: Consolidated Net Sales and Diluted EPS Bridge
Consolidated Net Sales and Diluted EPS Bridge Appendix A Net Sales ($M) Diluted Earnings Per Share1 $17 $5,586 $111 $5,524 $0.21 $2.26 $2.26 ($66) $0.28 $2.05 $1.77 Q4'22 Core Sales Acquisitions FX & Other Q4'23 Q4'22 Adj. Q4'22 Core Q4'23 EPS Adj. Q4'23 GAAP EPS Adj. EPS Operations GAAP EPS 1See Ap
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 2023 2023 2022 (in thousands) Full-Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net sales: Automotive $ 14,246,783 $ 3,505,827 $ 3,654,999 $ 3,626,943 $ 3,459,014 $ 3,275,621 $ 3,467,494 $ 3,490,462 $ 3,433,057 Industrial 8,843,827 2,259,291 2,260,007 2,197,659 2,126,870 2,019,014 2,134,920
Slide 17: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Appendix D Total Segment Profit & Total Segment Profit Margin 2023 2023 2022 (in thousands) Full-Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 GAAP net income $ 1,316,524 $ 303,957 $ 344,494 $ 351,198 $ 316,875 $ 245,838 $ 372,529 $ 312,358 $ 251,976 Income taxes 425,824
Slide 18: Reconciliation of Non-GAAP Financial Measures (Cont.)
Reconciliation of Non-GAAP Financial Measures (Cont.) Appendix D Adj Net Income 2023 2023 2022 (in thousands) Full-Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 GAAP net income $ 1,316,524 $ 303,957 $ 344,494 $ 351,198 $ 316,875 $ 245,838 $ 372,529 $ 312,358 $ 251,976 Adjustments: Gain on sale of real estate (1) — —
Slide 19: Reconciliation of Non-GAAP Financial Measures (Cont.)
Reconciliation of Non-GAAP Financial Measures (Cont.) Appendix D Adj EBITDA 2023 2023 2022 (in thousands) Full-Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 GAAP net income $ 1,316,524 $ 303,957 $ 344,494 $ 351,198 $ 316,875 $ 245,838 $ 372,529 $ 312,358 $ 251,976 Depreciation and amortization 350,529 87,215 90,873
Slide 20: 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 December 31, QTD Change (in thousands) 2023 2022 $ Change % Change GAAP operating and non-operating expenses $ 1,614,494 $ 1,636,308 $ (21,814) (1.3)% Adjustments: Product lia
Slide 21: Reconciliation of Non-GAAP Financial Measures (Cont.)
Reconciliation of Non-GAAP Financial Measures (Cont.) Appendix D Free Cash Flow (in thousands) Twelve Months Ended December 31, 2023 Net cash provided by operating activities $ 1,435,610 Less: Purchases of property, plant and equipment 512,675 Free Cash Flow $ 922,935 Outlook Year Ending December 31
Slide 22: 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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