Genuine Parts Company · NYSE:GPC
Genuine Parts — Q3 2023 Earnings Presentation
19 slides from Genuine Parts's earnings presentation, Oct 19, 2023
Slide 1: Q3'23 Earnings Presentation
Q3’23 Earnings Presentation October 19, 2023
Slide 2: GPC Snapshot (as of 9/30/2023)
GPC Snapshot (as of 9/30/2023) Global Footprint Key Statistics TTM Revenue by Region Founded 1928 Headquarters Atlanta, GA Countries Served 17 Locations ~10,680 • Distribution Centers ~210 • Warehouses ~700 15% Europe • Retail (Owned/Independent) ~9,770 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 double-digit 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 diversity of our operatio
Slide 5: Q3'23 Performance
Q3’23 Performance Sales Gross Margin EBITDA Segment Profit2 Segment Margin2 Diluted EPS $5.8B 36.2% $565M $605M 10.4% $2.49 Up 2.6% Improved 130 bps Up 7%1 Up 10% Improved 70 bps Up 12%1 At September 30 Cash From Operations Working Capital3 Capital Ample Liquidity Financial $1.1B YTD $1.2B Structure
Slide 6: Q3'23 Industrial Performance
Q3’23 Industrial Performance Global Sales1 Global Comps1,2 Segment Profit3 Segment Margin3 $2.2B +0.3% $283M 12.9% Up 0.6% 20% comp in the PY Up 17% Improved 180 bps Highlights: Market Total Sales4 • 13th consecutive quarter of margin expansion • Making progress with sales excellence, pricing, North
Slide 7: Q3'23 Automotive Performance
Q3’23 Automotive Performance Global Sales1 Global Comps1,2 Segment Profit3 Segment Margin3 $3.6B +0.6% $322M 8.9% Up 3.9% 9% comp in the PY Up 4% In-line with the PY Highlights: Market Total Sales4 Comp Sales2,4 • Total Automotive results benefited from global U.S. (1.1%)1 (2.9%)1 diversification •
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 • $350M CapEx YTD • Projecting ’23 CapEx of $375M - $400M 31% M&A 35% • $211M YTD ~$1.1B • Targeting additional acquisitions in ’23 Share Repurchases • $172M spend for ~1.1M shares YTD 15% 19% • Plans for additional
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 $9.20 to $9.30 $9.15 to $9.30 Adj Diluted EPS $9.20 to $9.30 $9.15 to $9.30 Adj EPS Growth 10.3% to 11.5% 10% to 11.5% Cash from Operations $1.3B to $1.4B $1.
Slide 11: Appendix
Appendix 11
Slide 12: Consolidated Net Sales and Diluted EPS Bridge
Consolidated Net Sales and Diluted EPS Bridge Appendix A Net Sales ($M) Diluted Earnings Per Share1 $27 $5,825 $2.49 $2.49 $96 $0.26 $26 $5,675 $2.20 $0.03 $2.23 Q3'22 Core Sales Acquisitions FX & Other Q3'23 Q3'22 Adjustments Q3'22 Core Q2'23 EPS Adjustments Q3'23 GAAP EPS Adj. EPS Operations GAAP
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 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Net sales: Automotive $ 14,220,826 $ 3,505,827 $ 3,654,999 $ 3,626,943 $ 3,275,621 $ 3,467,494 $ 3,490,462 $ 3,433,057 Industrial 8,807,550 2,259,291 2,260,007 2,197,659 2,019,014 2,134,920 2,184,812 2,090,593 Total ne
Slide 15: 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) TTM Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q4 GAAP net income $ 1,251,625 $ 303,957 $ 344,494 $ 351,198 $ 245,838 $ 372,529 $ 312,358 $ 251,976 Income taxes 409,313 100,449 109,595
Slide 16: Reconciliation of Non-GAAP Financial Measures (Cont.)
Reconciliation of Non-GAAP Financial Measures (Cont.) Appendix D Adj Net Income 2023 2023 2022 (in thousands) TTM Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q4 GAAP net income $ 1,251,625 $ 303,957 $ 344,494 $ 351,198 $ 245,838 $ 372,529 $ 312,358 $ 251,976 Adjustments: Gain on sale of real estate (1) — — — — — (102,803)
Slide 17: Reconciliation of Non-GAAP Financial Measures (Cont.)
Reconciliation of Non-GAAP Financial Measures (Cont.) Appendix D Adj EBITDA 2023 2023 2022 (in thousands) TTM Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q4 GAAP net income $ 1,251,625 $ 303,957 $ 344,494 $ 351,198 $ 245,838 $ 372,529 $ 312,358 $ 251,976 Depreciation and amortization 349,945 87,215 90,873 83,860 87,369 85
Slide 18: 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, 2023 TTM Ended September 30, 2023 Net cash provided by operating activities $ 1,082,445 $ 1,304,825 Less: Purchases of property, plant and equipment (349,858) (445,492) Free
Slide 19: 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
Genuine Parts Company — Q3 2023 Earnings Presentation on 6ix