Napa Auto Parts 2015 Annual Report Download - page 5

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Board approved Gregory N. Miller as Senior Vice President and Chief
Information Officer. Mr. Miller was previously the Senior Vice President
and Chief Financial Officer of the U.S. Automotive Parts Group. Charlie
and Greg are strong executives and we look forward to their many
future contributions.
Lastly, at our August 2015 Board meeting, the Directors elected
Christopher T. Galla to Vice President and Assistant Corporate Counsel
and Robert L. Swann to Vice President Internal Audit, Compliance
and Risk. Chris and Robert are very talented individuals and their well
deserved promotions serve to strengthen our corporate legal and
finance teams.
CONCLUSION
The Company generated record cash flows in 2015 and is well
positioned for future growth. While the challenging sales environment
and difficult macro-economic and end market conditions may persist,
we remained focused on our growth initiatives.
We enter 2016 with a cautious outlook on the overall economy. However,
we remain committed to growing sales and earnings, showing continued
operating margin improvement, generating solid cash flows and
maintaining a strong balance sheet. We have plans in place for further
improvement in each of these important areas in the year ahead.
We want to take this opportunity to express our appreciation to our
employees, customers, vendors and shareholders for their commitment
to and ongoing support of Genuine Parts Company.
Respectfully submitted,
a private investment and commercial real estate company. Previously, Ms.
Camp held other business executive roles and was also an accountant and
attorney with major accounting and law firms. Additionally, at our November
2015 Board meeting, Donna W. Hyland was elected by the Board as a
new Director of the Company. Ms. Hyland is President and Chief Executive
Officer of Children’s Healthcare of Atlanta, one of the largest pediatric
healthcare systems in the country. Before being named to her current
position in 2008, Ms. Hyland’s career at Children’s included roles as Chief
Financial Officer and Chief Operating Officer. Both of these new directors
bring with them a wealth of business acumen and knowledge as well as
public company board and committee experience. We are fortunate to have
them serve with us.
MANAGEMENT
Over the last year, there were a number of key management changes and
promotions that we would like to share with you. Scott W. LeProhon was
named the Company’s Executive Vice President of Global Procurement
effective January 1, 2016. Mr. LeProhon brings with him 28 years of
experience in a variety of key management roles, most recently serving as
Executive Vice President of Merchandising and Product Strategy for the
U.S. Automotive Parts Group. Scott is a great fit for this position and we
are pleased to have him in his new and expanded role.
Lee A. Maher was named President and Chief Operating Officer of the
U.S. Automotive Parts Group effective February 1, 2016. Mr. Maher is a
38 year veteran of the Company’s automotive business, most recently
serving as Executive Vice President and Chief Operating Officer of the
U.S. Automotive Parts Group. We are pleased to have a proven executive
like Lee so uniquely qualified for this important leadership position. Alain
Masse was named President of NAPA Canada, effective September 1,
2015. Mr. Masse has extensive leadership and business experience and
was previously NAPA Canada’s Executive Vice President of the Auto Parts
and Heavy Duty Parts Divisions. Alain is well qualified to successfully lead
this key automotive group.
Effective February 15, 2016, Frank M. Howard retired from the Company
after nearly 39 years of service in a variety of key financial roles, including
the last 12 years as Senior Vice President and Treasurer. We want to thank
Frank for his many significant contributions to the Company and wish him
the very best in his retirement.
In consideration of this change, the Company’s Board named Charles A.
Chesnutt Senior Vice President and Treasurer. Mr. Chesnutt was previously
Senior Vice President and Chief Information Officer. Additionally, the
DIVIDENDS & SHAREHOLDER RETURN
The Company has paid a cash dividend to
shareholders every year since going public
in 1948, and on February 15, 2016, the
Board of Directors raised the 2016 cash
dividend to an annual rate of $2.63 per
share, up 7% from $2.46 in 2015.
2016 MARKS OUR
60TH CONSECUTIVE
YEAR OF INCREASED
DIVIDENDS PAID TO
OUR SHAREHOLDERS.
20162008 2009 2010 2011 2012 2013 2014 2015
$1.56 $1.60 $1.64
$1.80
$1.98
$2.15
$2.30
INCLUDES DIVIDENDS
TOTAL SHAREHOLDER RETURN
1
YEAR
-17.1%
3
YEARS
13.6 %
5
YEARS
14.1%
7
YEARS
16.2%
10
YEARS
10.6%
DIVIDENDS PER SHARE (IN DOLLARS)
$2.46
$2.63
2007
$1.46
February 26, 2016
Carol B. Yancey
Executive Vice President
and Chief Financial Officer
Thomas C. Gallagher
Chairman and
Chief Executive Officer
Paul D. Donahue
President