Napa Auto Parts 2014 Annual Report Download - page 5

We also want to advise you that at our April 2014 Board meeting, the
Directors elected Kirk J. Allan to Vice President of Human Resources
Operations and Compliance, Thomas E. Dunmon to Vice President of
Corporate Reporting and Analysis and Vickie S. Smith to Vice President
Employee Relations. At our February 2015 Board meeting, the Directors
elected Robert A. Milstead, who joined the Company in January 2015, to
Senior Vice President Digital, Thomas K. Davis to Vice President Supplier
Business IT and Jennifer L. Ellis to Corporate Secretary and Associate
Counsel. Each of these individuals is very talented and well deserving of
their new positions. We look forward to their many future contributions.
CONCLUSION
The Company showed continued progress in a number of key areas in
2014 and we are proud of the GPC Team’s accomplishments. 2014 was
another year of record sales and earnings, and we are especially pleased
that each of our four business segments contributed to these records. We
also improved our operating margin for the year and further improved our
financial strength with effective asset management and solid cash flows.
We recognize there is still room for further improvement in our operations as
we move forward. To this end, we remain committed to our core objectives
of growing sales and earnings, showing continued operating margin
improvement, generating solid cash flows and maintaining a strong balance
sheet. Progress in each of these important areas will keep the Company
moving ahead and will help to ensure another successful year in 2015.
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,
Thomas C. Gallagher Paul D. Donahue
Chairman and President
Chief Executive Officer
Carol B. Yancey
Executive Vice President
and Chief Financial Officer
February 26, 2015
GPC DIRECTORS
In April of 2015, Dr. Michael M.E. Johns and George C. “Jack” Guynn will
retire from our Board of Directors. Dr. Johns is the Chancellor and Executive
Vice President of Health Affairs Emeritus at Emory University and has served
as a Director of our Company since 2000. Mr. Guynn is the retired President
and Chief Executive Officer of the Federal Reserve Bank of Atlanta and has
served on our Board since 2006. We want to thank both of them for their
dedicated service and excellent counsel over the years. They will be missed,
and we extend our sincerest gratitude and appreciation.
At our August 2014 Board meeting, E. Jenner Wood, III was elected by the
Board as a new Director of the Company. Accordingly, at the April 27, 2015
Shareholders’ Meeting, we are asking the shareholders to elect Mr. Wood
as a Director of the Company. Mr. Wood is the Executive Vice President
of SunTrust Banks, Inc., a position he has held since 2005, and was also
named Chairman, Chief Executive Officer and President of SunTrust’s Atlanta
Division in April 2014. Mr. Wood has 39 years of experience in banking
and investment management and he brings with him a wealth of business
experience and knowledge. He is sure to be a valuable member of our Board
and we are fortunate to have him 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. First, we want to recognize
William J. Stevens, who announced in November that he will retire as the
Chairman and Chief Executive Officer of Motion Industries effective
March 1, 2015. Mr. Stevens served Motion for 37 years, including the last
18 years as CEO, and we would add that Motion Industries is one of the
leading industrial distribution companies in North America, largely attributable
to his leadership. We wish Bill the very best in the years ahead. Upon Bill’s
announcement to retire, the Company’s Board of Directors elected Timothy
P. Breen to the position of President and Chief Executive Officer of Motion
Industries. Mr. Breen was previously President and Chief Operating Officer
at Motion Industries and his proven leadership and tremendous industry
experience make him the right person to lead Motion to further success in
the years ahead.
Additionally, Larry L. Griffin was elected President of EIS effective January
2, 2015. Mr. Griffin has over 31 years of sales and management experience
as both a supplier and distributor, including his most recent roles as Senior
Vice President of Marketing and Senior Vice President of the Fabrication and
Coating business at EIS. We are pleased to have Mr. Griffin in his new and
expanded role.
DIVIDENDS & SHAREHOLDER RETURN
The Company has paid a cash dividend
to shareholders every year since going
public in 1948, and on February 16, 2015
the Board of Directors raised the cash
dividend payable April 1, 2015 to an
annual rate of $2.46 per share, up 7%
from $2.30 in 2014.
2015 MARKS OUR 59TH
CONSECUTIVE YEAR
OF INCREASED
DIVIDENDS PAID TO
OUR SHAREHOLDERS.
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
$1.35
$1.46
$1.56 $1.60
$1.64
$1.80
$1.98
$2.15
$2.30
$2.46
TOTAL SHAREHOLDER RETURN
1
YEAR
31.4%
3
YEARS
23.8%
5
YEARS
26.9%
7
YEARS
16.6%
10
YEARS
12.9%
DIVIDENDS PER SHARE (IN DOLLARS)INCLUDES DIVIDENDS