Napa Auto Parts 2010 Annual Report Download - page 17

Table of Contents
 SELECTED FINANCIAL DATA.
The following table sets forth certain selected historical financial and operating data of the Company as of the dates and for the
periods indicated. The following selected financial data are qualified by reference to, and should be read in conjunction with, the
consolidated financial statements, related notes and other financial information set forth beginning on page F-1, as well as in “Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this report.
     

Net sales  $10,057,512 $11,015,263 $10,843,195 $10,457,942
Cost of goods sold  7,047,750 7,742,773 7,625,972 7,353,447
Operating and non-operating expenses, net  2,365,597 2,504,022 2,400,478 2,333,579
Income before taxes  644,165 768,468 816,745 770,916
Income taxes  244,590 293,051 310,406 295,511
Net income  $ 399,575 $ 475,417 $ 506,339 $ 475,405
Weighted average common shares
outstanding during year — assuming
dilution  159,707 162,986 170,135 172,486
Per common share:
Diluted net income  $ 2.50 $ 2.92 $ 2.98 $ 2.76
Dividends declared  1.60 1.56 1.46 1.35
December 31 closing stock price  37.96 37.86 46.30 47.43
Long-term debt, less current maturities  500,000 500,000 250,000 500,000
Total equity  2,629,372 2,393,378 2,782,946 2,610,707
Total assets  $ 5,004,689 $ 4,786,350 $4,774,069 $ 4,496,984
 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.

Genuine Parts Company is a service organization engaged in the distribution of automotive replacement parts, industrial replacement
parts, office products and electrical/electronic materials. The Company has a long tradition of growth dating back to 1928, the year we
were founded in Atlanta, Georgia. In 2010, the Company conducted business throughout the United States, Canada, Mexico and Puerto
Rico from approximately 2,000 locations.
We recorded consolidated net sales of $11.2 billion for the year ended December 31, 2010, an increase of 11% compared to
$10.1 billion in 2009. Consolidated net income for the year ended December 31, 2010 was $476 million, up 19% from $400 million in
2009. The improving market conditions in the industries that we serve combined with our internal growth initiatives drove the
Company’s strong performance in 2010.
The 11% sales growth in 2010 follows a 9% decrease in revenues in 2009 and a 2% increase in revenues in 2008. Our 19% increase
in net income follows a 16% and 6% decrease in net income in 2009 and 2008, respectively. Throughout this three year period, the
Company has implemented a variety of initiatives in each of our four business segments to grow sales and earnings, including the
introduction of new and expanded product lines, geographic expansion (including acquisitions), sales to new markets, enhanced customer
marketing programs and a variety of gross margin and cost savings initiatives. The effects of the economic slowdown, which we began to
experience in the final quarter of 2008, adversely impacted the benefit of these initiatives through 2009. In 2010, however, the recovering
economy served to further support the benefits of our internal growth initiatives.
With regard to the December 31, 2010 consolidated balance sheet, the Company’s cash balance of $530 million was up
$193 million or 57% from $337 million at December 31, 2009. This increase marks the second consecutive year the Company has
significantly improved its cash position and relates to the increase in net income in 2010 and an improved working capital position for
both years. Accounts receivable increased by approximately 15%,
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