Napa Auto Parts 2014 Annual Report Download - page 24

ITEM 6. 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 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.
Year Ended December 31, 2014 2013 2012 2011 2010
(In thousands, except per share data)
Net sales ....................... $15,341,647 $14,077,843 $13,013,868 $12,458,877 $11,207,589
Cost of goods sold ................ 10,747,886 9,857,923 9,235,777 8,852,837 7,954,645
Operating and non-operating
expenses, net .................. 3,476,022 3,175,616 2,759,159 2,715,234 2,491,161
Income before taxes .............. 1,117,739 1,044,304 1,018,932 890,806 761,783
Income taxes .................... 406,453 359,345 370,891 325,690 286,272
Net income ..................... $ 711,286 $ 684,959 $ 648,041 $ 565,116 $ 475,511
Weighted average common shares
outstanding during year —
assuming dilution .............. 154,375 155,714 156,420 157,660 158,461
Per common share:
Diluted net income ............. $ 4.61 $ 4.40 $ 4.14 $ 3.58 $ 3.00
Dividends declared ............. 2.30 2.15 1.98 1.80 1.64
December 31 closing stock price . . 106.57 83.19 63.58 61.20 51.34
Total debt, less current maturities .... 500,000 500,000 250,000 500,000 250,000
Total equity ..................... 3,312,364 3,358,768 3,008,179 2,753,591 2,763,486
Total assets ..................... $ 8,246,238 $ 7,680,297 $ 6,807,061 $ 6,202,774 $ 5,788,227
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
OVERVIEW
Genuine Parts Company is a service organization engaged in the distribution of automotive parts, industrial
parts, office products and electrical/electronic materials. We have a long tradition of growth dating back to 1928,
the year we were founded in Atlanta, Georgia. The Company conducted business in 2014 throughout the United
States, Canada, Australia, New Zealand, Mexico and Puerto Rico from approximately 2,600 locations.
We recorded consolidated net sales of $15.3 billion for the year ended December 31, 2014, an increase of
9% compared to $14.1 billion in 2013. Consolidated net income for the year ended December 31, 2014 was
$711 million, up 4% from $685 million in 2013. Before the one-time income adjustment in 2013 related to the
acquisition of GPC Asia Pacific, net income was up 9%. The Company’s internal growth initiatives, including
the positive impact of acquisitions, as well as effective cost management, which we discuss further below, served
to drive our solid financial performance for the year. Each of our four business segments positively contributed to
both our sales and earnings growth in 2014.
The 9% sales growth in 2014 follows an 8% revenue increase in 2013 and a 4.5% increase in revenues in
2012. The increase in net income in 2014 follows a 6% increase in net income in 2013 and a 15% increase in net
income in 2012. In 2012, we experienced a relatively challenging sales environment and, in 2013, we continued
to experience difficult market conditions in the Industrial, Electrical/Electronic and Office industries, while the
Automotive business performed reasonably well. Over the three year period of 2012 through 2014, our financial
performance was positively impacted by a variety of initiatives we implemented to grow sales and earnings in
each of our four businesses. Examples of such initiatives include strategic acquisitions, the introduction of new
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