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By OReilly Auto Parts
SPRINGFIELD, Mo., July 24, 2024 (GLOBE NEWSWIRE) -- O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenue for its second quarter ended June 30, 2024.
Second quarter comparable store sales growth of 2.3% 7% increase in year-to-date earnings per share to $19.75 $1.7 billion net cash provided by operating activities year-to-date SPRINGFIELD, Mo., July 24, 2024 (GLOBE NEWSWIRE) -- O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenue for its second quarter ended June 30, 2024.
2nd Quarter Financial Results
Brad Beckham, O’Reilly’s CEO, commented, “I would like to thank all of Team O’Reilly for their tremendous hard work and unwavering commitment to providing excellent customer service and taking care of our customers every day. Our comparable store sales results were below our expectations for the second quarter, as the soft demand environment we experienced at the beginning of the quarter persisted through May. Sales trends improved in June, in line with our expectations, aided by strong performance in summer weather-related categories in many of our markets. Against this challenging backdrop, our Team generated a second quarter comparable store sales increase of 2.3%, on top of a 9.0% increase last year, driven by solid, mid-single digit growth in our professional business. Our Team of Professional Parts People continues to be relentlessly focused on delivering unsurpassed levels of service to our customers, while also prudently managing expenses.”
Sales for the second quarter ended June 30, 2024, increased $203 million, or 5%, to $4.27 billion from $4.07 billion for the same period one year ago. Gross profit for the second quarter increased 4% to $2.17 billion (or 50.7% of sales) from $2.09 billion (or 51.3% of sales) for the same period one year ago. Selling, general and administrative expenses (“SG&A”) for the second quarter increased 6% to $1.30 billion (or 30.5% of sales) from $1.23 billion (or 30.3% of sales) for the same period one year ago. Operating income for the second quarter increased 1% to $863 million (or 20.2% of sales) from $854 million (or 21.0% of sales) for the same period one year ago.
Net income for the second quarter ended June 30, 2024, decreased $5 million, or 1%, to $623 million (or 14.6% of sales) from $627 million (or 15.4% of sales) for the same period one year ago. Diluted earnings per common share for the second quarter increased 3% to $10.55 on 59 million shares versus $10.22 on 61 million shares for the same period one year ago.
Year-to-Date Financial Results
Mr. Beckham concluded, “Based on our results so far this year, we are updating our full-year comparable store sales guidance from a range of 3.0% to 5.0% to a range of 2.0% to 4.0%. Despite the challenges we have seen in the demand environment in the first half of 2024, we believe our industry’s long-term drivers for demand remain strong. More importantly, we remain confident in our Team’s ability to grow market share by continuously providing exceptional service, supported by best-in-class inventory availability. We continue to be pleased with our new store performance and our Team’s ability to further grow share with expansion in both new and existing markets. During the first half of 2024, we opened 64 new stores in the U.S. and Mexico, and we continue to expect to hit our target of 190 to 200 net, new store openings this year.”
Sales for the first six months of 2024 increased $472 million, or 6%, to $8.25 billion from $7.78 billion for the same period one year ago. Gross profit for the first six months of 2024 increased 6% to $4.20 billion (or 50.9% of sales) from $3.98 billion (or 51.1% of sales) for the same period one year ago. SG&A for the first six months of 2024 increased 7% to $2.59 billion (or 31.4% of sales) from $2.41 billion (or 30.9% of sales) for the same period one year ago. Operating income for the first six months of 2024 increased 3% to $1.62 billion (or 19.6% of sales) from $1.57 billion (or 20.2% of sales) for the same period one year ago.
Net income for the first six months of 2024 increased $26 million, or 2%, to $1.17 billion (or 14.2% of sales) from $1.14 billion (or 14.7% of sales) for the same period one year ago. Diluted earnings per common share for the first six months of 2024 increased 7% to $19.75 on 59 million shares versus $18.49 on 62 million shares for the same period one year ago.
2nd Quarter Comparable Store Sales Results
Comparable store sales are calculated based on the change in sales for U.S. stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores, and sales to Team Members, as well as sales from Leap Day in the six months ended June 30, 2024. Online sales for ship-to-home orders and pick-up-in-store orders for U.S. stores open at least one year are included in the comparable store sales calculation. Comparable store sales increased 2.3% for the second quarter ended June 30, 2024, on top of 9.0% for the same period one year ago. Comparable store sales increased 2.8% for the six months ended June 30, 2024, on top of 9.8% for the same period one year ago.
Share Repurchase Program
During the second quarter ended June 30, 2024, the Company repurchased 0.8 million shares of its common stock, at an average price per share of $1,012.14, for a total investment of $794 million. During the first six months of 2024, the Company repurchased 1.0 million shares of its common stock, at an average price per share of $1,016.43, for a total investment of $1.06 billion. Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $10.6 million for the six months ended June 30, 2024. Subsequent to the end of the second quarter and through the date of this release, the Company repurchased an additional 0.2 million shares of its common stock, at an average price per share of $1,036.84, for a total investment of $224 million. The Company has repurchased a total of 95.3 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through the date of this release, at an average price of $256.59, for a total aggregate investment of $24.47 billion. As of the date of this release, the Company had approximately $1.28 billion remaining under its current share repurchase authorization.
Updated Full-Year 2024 Guidance
The table below outlines the Company’s updated guidance for selected full-year 2024 financial data:
For the Year Ending December 31, 2024 Net, new store openings 190 to 200 Comparable store sales 2.0% to 4.0% Total revenue $16.6 billion to $16.9 billion Gross profit as a percentage of sales 51.0% to 51.5% Operating income as a percentage of sales 19.6% to 20.1% Effective income tax rate 22.4% Diluted earnings per share (1) $40.75 to $41.25 Net cash provided by operating activities $2.7 billion to $3.1 billion Capital expenditures $900 million to $1.0 billion Free cash flow (2) $1.8 billion to $2.1 billion As previously announced, the Company completed the acquisition of Groupe Del Vasto in Canada (“Vast Auto”) in January of 2024, and the results of Vast Auto’s operations have been included in the Company’s consolidated financial statements since the acquisition date. The above updated consolidated guidance for selected full-year 2024 financial data includes expected impacts from Vast Auto’s operations, including an updated estimate of 30 basis points of dilution to gross profit as a percentage of sales but an unchanged estimate of 15 basis points of dilution to operating income as a percentage of sales for the full-year 2024.
(1) Weighted-average shares outstanding, assuming dilution, used in the denominator of this calculation, includes share repurchases made by the Company through the date of this release.
(2) Free cash flow is a non-GAAP financial measure. The table below reconciles Free cash flow guidance to Net cash provided by operating activities guidance, the most directly comparable GAAP financial measure:
For the Year Ending (in millions) December 31, 2024 Net cash provided by operating activities $ 2,715 to $ 3,125 Less: Capital expenditures 900 to 1,000 Excess tax benefit from share-based compensation payments 15 to 25 Free cash flow $ 1,800 to $ 2,100 Non-GAAP Information
This release contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”). These items include adjusted debt to earnings before interest, taxes, depreciation, amortization, share-based compensation, and rent (“EBITDAR”) and free cash flow. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The Company believes that the presentation of adjusted debt to EBITDAR and free cash flow provide meaningful supplemental information to both management and investors that is indicative of the Company’s core operations. The Company has included a reconciliation of this additional information to the most comparable GAAP measure in the table above and the selected financial information below.
Earnings Conference Call Information
The Company will host a conference call on Thursday, July 25, 2024, at 10:00 a.m. Central Time to discuss its results as well as future expectations. Investors may listen to the conference call live on the Company’s website at link hidden, please login to view by clicking on “Investor Relations” and then “News Room.” Interested analysts are invited to join the call. The dial-in number for the call is (888) 506-0062 and the conference call identification number is 298734. A replay of the conference call will be available on the Company’s website through Thursday, July 24, 2025.
About O’Reilly Automotive, Inc.
O’Reilly Automotive, Inc. was founded in 1957 by the O’Reilly family and is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, serving both the do-it-yourself and professional service provider markets. Visit the Company’s website at link hidden, please login to view for additional information about O’Reilly, including access to online shopping and current promotions, store locations, hours and services, employment opportunities, and other programs. As of June 30, 2024, the Company operated 6,244 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.
Forward-Looking Statements
The Company claims the protection of the safe-harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as “estimate,” “may,” “could,” “will,” “believe,” “expect,” “would,” “consider,” “should,” “anticipate,” “project,” “plan,” “intend,” “guidance,” “target,” or similar words. In addition, statements contained within this press release that are not historical facts are forward-looking statements, such as statements discussing, among other things, expected growth, store development, integration and expansion strategy, business strategies, future revenues, and future performance. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events and results. Such statements are subject to risks, uncertainties, and assumptions, including, but not limited to, the economy in general; inflation; consumer debt levels; product demand; a public health crisis; the market for auto parts; competition; weather; tariffs; availability of key products and supply chain disruptions; business interruptions, including terrorist activities, war and the threat of war; failure to protect our brand and reputation; challenges in international markets; volatility of the market price of our common stock; our increased debt levels; credit ratings on public debt; damage, failure, or interruption of information technology systems, including information security and cyber-attacks; historical growth rate sustainability; our ability to hire and retain qualified employees; risks associated with the performance of acquired businesses; and governmental regulations. Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the “Risk Factors” section of the annual report on Form 10-K for the year ended December 31, 2023, and subsequent Securities and Exchange Commission filings, for additional factors that could materially affect the Company’s financial performance. Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.
For further information contact: Investor Relations Contacts Mark Merz (417) 829-5878 Eric Bird (417) 868-4259 Media Contact Sonya Cox (417) 829-5709
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data) June 30, 2024 June 30, 2023 December 31, 2023 (Unaudited) (Unaudited) (Note) Assets Current assets: Cash and cash equivalents $ 145,042 $ 57,880 $ 279,132 Accounts receivable, net 475,596 374,714 375,049 Amounts receivable from suppliers 144,303 138,666 140,443 Inventory 4,788,686 4,626,410 4,658,367 Other current assets 125,861 113,597 105,311 Total current assets 5,679,488 5,311,267 5,558,302 Property and equipment, at cost 8,730,297 7,872,672 8,312,367 Less: accumulated depreciation and amortization 3,434,610 3,170,474 3,275,387 Net property and equipment 5,295,687 4,702,198 5,036,980 Operating lease, right-of-use assets 2,240,314 2,185,196 2,200,554 Goodwill 1,000,074 897,128 897,696 Other assets, net 177,619 180,834 179,463 Total assets $ 14,393,182 $ 13,276,623 $ 13,872,995 Liabilities and shareholders’ deficit Current liabilities: Accounts payable $ 6,226,238 $ 6,219,838 $ 6,091,700 Self-insurance reserves 125,859 131,781 128,548 Accrued payroll 143,194 127,333 138,122 Accrued benefits and withholdings 186,715 150,453 174,650 Income taxes payable 89,344 233,507 7,860 Current portion of operating lease liabilities 401,713 380,618 389,536 Other current liabilities 950,145 450,169 730,937 Total current liabilities 8,123,208 7,693,699 7,661,353 Long-term debt 5,397,774 4,873,702 5,570,125 Operating lease liabilities, less current portion 1,912,036 1,870,392 1,881,344 Deferred income taxes 335,600 260,642 295,471 Other liabilities 207,956 205,661 203,980 Shareholders’ equity (deficit): Common stock, $0.01 par value: Authorized shares – 245,000,000 Issued and outstanding shares – 58,238,711 as of June 30, 2024, and 60,402,359 as of June 30, 2023, and 59,072,792 as of December 31, 2023 582 604 591 Additional paid-in capital 1,415,799 1,330,270 1,352,275 Retained deficit (3,008,665 ) (2,994,418 ) (3,131,532 ) Accumulated other comprehensive income 8,892 36,071 39,388 Total shareholders’ deficit (1,583,392 ) (1,627,473 ) (1,739,278 ) Total liabilities and shareholders’ deficit $ 14,393,182 $ 13,276,623 $ 13,872,995 Note: The balance sheet at December 31, 2023, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data) For the Three Months Ended For the Six Months Ended June 30, June 30, 2024 2023 2024 2023 Sales $ 4,272,201 $ 4,068,991 $ 8,248,441 $ 7,776,855 Cost of goods sold, including warehouse and distribution expenses 2,104,141 1,982,409 4,046,209 3,799,944 Gross profit 2,168,060 2,086,582 4,202,232 3,976,911 Selling, general and administrative expenses 1,304,762 1,232,809 2,586,453 2,406,493 Operating income 863,298 853,773 1,615,779 1,570,418 Other income (expense): Interest expense (54,831 ) (49,587 ) (111,979 ) (94,159 ) Interest income 1,528 760 3,184 1,628 Other, net 1,561 4,186 4,962 8,665 Total other expense (51,742 ) (44,641 ) (103,833 ) (83,866 ) Income before income taxes 811,556 809,132 1,511,946 1,486,552 Provision for income taxes 188,708 181,767 341,860 342,302 Net income $ 622,848 $ 627,365 $ 1,170,086 $ 1,144,250 Earnings per share-basic: Earnings per share $ 10.61 $ 10.32 $ 19.88 $ 18.66 Weighted-average common shares outstanding – basic 58,679 60,817 58,849 61,324 Earnings per share-assuming dilution: Earnings per share $ 10.55 $ 10.22 $ 19.75 $ 18.49 Weighted-average common shares outstanding – assuming dilution 59,044 61,366 59,250 61,878
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands) For the Six Months Ended June 30, 2024 2023 Operating activities: Net income $ 1,170,086 $ 1,144,250 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of property, equipment and intangibles 222,885 191,673 Amortization of debt discount and issuance costs 3,201 2,431 Deferred income taxes 18,175 13,507 Share-based compensation programs 14,229 14,571 Other 5,215 75 Changes in operating assets and liabilities: Accounts receivable (79,475 ) (31,443 ) Inventory (85,137 ) (257,337 ) Accounts payable 117,582 335,299 Income taxes payable 81,228 261,208 Other 185,085 (22,865 ) Net cash provided by operating activities 1,653,074 1,651,369 Investing activities: Purchases of property and equipment (474,607 ) (460,942 ) Proceeds from sale of property and equipment 7,528 7,056 Investment in tax credit equity investments — (4,149 ) Other, including acquisitions, net of cash acquired (155,376 ) (1,971 ) Net cash used in investing activities (622,455 ) (460,006 ) Financing activities: Proceeds from borrowings on revolving credit facility 30,000 2,776,000 Payments on revolving credit facility (30,000 ) (1,976,000 ) Net payments of commercial paper (173,500 ) — Principal payments on long-term debt — (300,000 ) Payment of debt issuance costs — (24 ) Repurchases of common stock (1,063,791 ) (1,791,451 ) Net proceeds from issuance of common stock 73,790 48,680 Other (569 ) (354 ) Net cash used in financing activities (1,164,070 ) (1,243,149 ) Effect of exchange rate changes on cash (639 ) 1,083 Net decrease in cash and cash equivalents (134,090 ) (50,703 ) Cash and cash equivalents at beginning of the period 279,132 108,583 Cash and cash equivalents at end of the period $ 145,042 $ 57,880 Supplemental disclosures of cash flow information: Income taxes paid $ 80,401 $ 65,361 Interest paid, net of capitalized interest 110,449 88,924
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(Unaudited) For the Twelve Months Ended June 30, Adjusted Debt to EBITDAR: 2024 2023 (In thousands, except adjusted debt to EBITDAR ratio) GAAP debt $ 5,397,774 $ 4,873,702 Add: Letters of credit 137,501 111,428 Unamortized discount and debt issuance costs 27,226 26,298 Six-times rent expense 2,625,438 2,455,938 Adjusted debt $ 8,187,939 $ 7,467,366 GAAP net income $ 2,372,417 $ 2,258,260 Add: Interest expense 219,488 179,654 Provision for income taxes 657,727 636,388 Depreciation and amortization 440,273 381,561 Share-based compensation expense 27,169 28,327 Rent expense (i) 437,573 409,323 EBITDAR $ 4,154,647 $ 3,893,513 Adjusted debt to EBITDAR 1.97 1.92 (i) The table below outlines the calculation of Rent expense and reconciles Rent expense to Total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the twelve months ended June 30, 2024 and 2023 (in thousands):
For the Twelve Months Ended June 30, 2024 2023 Total lease cost, per ASC 842 $ 520,327 $ 485,805 Less: Variable non-contract operating lease components, related to property taxes and insurance 82,754 76,482 Rent expense $ 437,573 $ 409,323
June 30, 2024 2023 Selected Balance Sheet Ratios: Inventory turnover (1) 1.7 1.7 Average inventory per store (in thousands) (2) $ 767 $ 762 Accounts payable to inventory (3) 130.0% 134.4%
For the Three Months Ended For the Six Months Ended June 30, June 30, 2024 2023 2024 2023 Reconciliation of Free Cash Flow (in thousands): Net cash provided by operating activities $ 948,859 $ 937,605 $ 1,653,074 $ 1,651,369 Less: Capital expenditures 225,367 237,674 474,607 460,942 Excess tax benefit from share-based compensation payments 5,258 14,612 21,378 18,990 Investment in tax credit equity investments — 4,149 — 4,149 Free cash flow $ 718,234 $ 681,170 $ 1,157,089 $ 1,167,288
For the Three Months Ended For the Six Months Ended June 30, June 30, 2024 2023 2024 2023 Revenue Disaggregation (in thousands): Sales to do-it-yourself customers $ 2,149,044 $ 2,130,002 $ 4,151,030 $ 4,048,469 Sales to professional service provider customers 1,999,704 1,853,364 3,869,444 3,565,328 Other sales, sales adjustments, and sales from the acquired Vast Auto stores 123,453 85,625 227,967 163,058 Total sales $ 4,272,201 $ 4,068,991 $ 8,248,441 $ 7,776,855
For the Three Months Ended For the Six Months Ended For the Twelve Months Ended June 30, June 30, June 30, 2024 2023 2024 2023 2024 2023 Store Count: Beginning domestic store count 6,131 5,986 6,095 5,929 6,027 5,873 New stores opened 21 41 57 100 126 158 Stores closed — — — (2 ) (1 ) (4 ) Ending domestic store count 6,152 6,027 6,152 6,027 6,152 6,027 Beginning Mexico store count 63 43 62 42 44 27 New stores opened 6 1 7 2 25 17 Ending Mexico store count 69 44 69 44 69 44 Beginning Canada store count 23 — — — — — Stores acquired — — 23 — 23 — Ending Canada store count 23 — 23 — 23 — Total ending store count 6,244 6,071 6,244 6,071 6,244 6,071
For the Three Months Ended For the Twelve Months Ended June 30, June 30, 2024 2023 2024 2023 Store and Team Member Information: Total employment 91,874 90,670 Square footage (in thousands) (4) 47,500 45,622 Sales per weighted-average square foot (4)(5) $ 87.88 $ 88.12 $ 341.51 $ 334.21 Sales per weighted-average store (in thousands) (4)(6) $ 677 $ 665 $ 2,613 $ 2,516 (1) Calculated as cost of goods sold for the last 12 months divided by average inventory. Average inventory is calculated as the average of inventory for the trailing four quarters used in determining the denominator.
(2) Calculated as inventory divided by store count at the end of the reported period.
(3) Calculated as accounts payable divided by inventory.
(4) Represents O’Reilly’s U.S. and Puerto Rico operations only.
(5) Calculated as sales less jobber sales, divided by weighted-average square footage. Weighted-average square footage is determined by weighting store square footage based on the approximate dates of store openings, acquisitions, expansions, or closures.
(6) Calculated as sales less jobber sales, divided by weighted-average stores. Weighted-average stores is determined by weighting stores based on their approximate dates of openings, acquisitions, or closures.
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By NAPA
ATLANTA, July 23, 2024 /
link hidden, please login to view/ -- Genuine Parts Company (NYSE: GPC), a leading global distributor of automotive and industrial replacement parts, announced today its results for the second quarter ended June 30, 2024. "I want to thank each of our global GPC teammates for their hard work and dedication to serving our customers," said Will Stengel, President and Chief Executive Officer. "Our quarterly results reflect softer than expected market conditions, which are tempering demand particularly in our Industrial and U.S. and European Automotive businesses. Despite a challenging macro-environment, our teams are operating well and remain focused on executing our long-term strategic initiatives."
Second Quarter 2024 Results
Sales were $6.0 billion, a 0.8% increase compared to $5.9 billion in the same period of the prior year. The sales result is attributable to a 2.2% benefit from acquisitions, partially offset by a 0.9% decrease in comparable sales and 0.5% unfavorable impact of foreign currency and other.
Net income was $296 million, or $2.11 per diluted earnings per share. This compares to net income of $344 million, or $2.44 per diluted share in the prior year period.
Adjusted net income was $342 million which excludes a net expense of $46 million of after tax adjustments, or $0.33 per diluted share, in costs related to our global restructuring initiative and the acquisition of Motor Parts and Equipment Corporation. This compares to net income of $344 million for the same three-month period of the prior year, a decrease of 0.9%. On a per share diluted basis, adjusted net income was $2.44, in-line with the same period of the prior year. Refer to the reconciliation of GAAP net income to adjusted net income and GAAP diluted earnings per share to adjusted diluted earnings per share for more information.
Second Quarter 2024 Segment Highlights
Automotive Parts Group ("Automotive")
Global Automotive sales were $3.7 billion, up 2.0% from the same period in 2023, reflecting a 3.1% benefit from acquisitions, partially offset by a 0.6% decrease in comparable sales and 0.5% unfavorable impact of foreign currency and other. Segment profit of $314 million decreased 4.7%, with segment profit margin of 8.4%, down 60 basis points from last year.
Industrial Parts Group ("Industrial")
Industrial sales were $2.2 billion, down 1.1% from the same period in 2023, with a 0.7% benefit from acquisitions, offset by a 1.6% decrease in comparable sales and 0.2% unfavorable impact of foreign currency. Segment profit of $277 million decreased 2.3%, with segment profit margin of 12.4%, down 10 basis points from the same period of the prior year.
Six Months 2024 Results
Sales for the six months ended June 30, 2024 were $11.7 billion, up 0.6% from the same period in 2023. Net income for the six months was $544 million, or $3.89 per diluted share, compared to $4.58 per diluted share in the prior year period. Adjusted net income increased 0.6% to $652 million in the first half of 2024 compared to net income of $648 million in the prior year period. Adjusted diluted earnings per share was $4.66 compared to $4.58 in the prior year period, an increase of 1.7%.
Balance Sheet, Cash Flow and Capital Allocation
The company generated cash flow from operations of $612 million for the first six months of 2024. Net cash used in investing activities was $762 million, including $259 million for capital expenditures and $580 million for M&A. The company also used $382 million in cash for financing activities, including $272 million for quarterly dividends paid to shareholders and $75 million for stock repurchases. Free cash flow was $353 million for the first six months of 2024. Refer to the reconciliation of GAAP net cash provided by operating activities to free cash flow for more information.
The company ended the quarter with $2.0 billion of total liquidity. Total liquidity comprises of $555 million in cash and cash equivalents and $1.4 billion of our $1.5 billion revolving credit facility available after the effect of $100 million of commercial paper outstanding as of June 30, 2024.
2024 Outlook
The company is revising full-year 2024 guidance previously provided in its earnings release on April 18, 2024. The company considered its recent business trends and financial results, current growth plans, strategic initiatives, global economic outlook, geopolitical conflicts and the potential impact on results in updating its guidance, which is outlined in the table below.
For the Year Ending December 31, 2024
Previous Outlook
Updated Outlook
Total sales growth
3% to 5%
1% to 3%
Automotive sales growth
2% to 4%
1% to 3%
Industrial sales growth
3% to 5%
0% to 2%
Diluted earnings per share
$9.05 to $9.20
$8.55 to $8.75
Adjusted diluted earnings per share
$9.80 to $9.95
$9.30 to $9.50
Effective tax rate
Approximately 24%
Approximately 24%
Net cash provided by operating activities
$1.3 billion to $1.5 billion
$1.3 billion to $1.5 billion
Free cash flow
$800 million to $1.0 billion
$800 million to $1.0 billion
Non-GAAP Information
This release contains certain financial information not derived in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP"). These items include adjusted net income, adjusted diluted earnings per share and free cash flow. We believe that the presentation of adjusted net income, adjusted diluted earnings per share and free cash flow, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provide meaningful supplemental information to both management and investors that is indicative of our core operations. We considered these metrics useful to investors because they provide greater transparency into management's view and assessment of our ongoing operating performance by removing items management believes are not representative of our operations and may distort our longer-term operating trends. For example, for the three and six months ended June 30, 2024, adjusted net income and adjusted diluted earnings per share exclude costs relating to our global restructuring initiative and acquisition of Motor Parts and Equipment Corporation, which are one-time events that do not recur in the ordinary course of our business. We believe these measures are useful and enhance the comparability of our results from period to period and with our competitors, as well as show ongoing results from operations distinct from items that are infrequent or not associated with our core operations. We do not, nor do we suggest investors should, consider such non-GAAP financial measures as superior to, in isolation from, or as a substitute for, GAAP financial information. We have included a reconciliation of this additional information to the most comparable GAAP measure following the financial statements below. We do not provide forward-looking guidance for certain financial measures on a GAAP basis because we are unable to predict certain items contained in the GAAP measures without unreasonable efforts. These items may include acquisition-related costs, litigation charges or settlements, impairment charges, and certain other unusual adjustments.
Comparable Sales
Comparable sales is a key metric that refers to period-over-period comparisons of our sales excluding the impact of acquisitions, foreign currency and other. Our calculation of comparable sales is computed using total business days for the period. The company considers this metric useful to investors because it provides greater transparency into management's view and assessment of the company's core ongoing operations. This is a metric that is widely used by analysts, investors and competitors in our industry, although our calculation of the metric may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate this metric in the same manner.
Conference Call
Genuine Parts Company will hold a conference call today at 8:30 a.m. Eastern Time to discuss the results of the quarter. A supplemental earnings deck will also be available for reference. Interested parties may listen to the call and view the supplemental earnings deck on the
link hidden, please login to view. The call is also available by dialing 800-836-8184. A replay of the call will be available on the company's website or toll-free at 888-660-6345, conference ID 93997#, two hours after the completion of the call. About Genuine Parts Company
Established in 1928, Genuine Parts Company is a leading global service organization specializing in the distribution of automotive and industrial replacement parts. Our Automotive Parts Group operates across the U.S., Canada, Mexico, Australasia, France, the U.K., Ireland, Germany, Poland, the Netherlands, Belgium, Spain and Portugal, while our Industrial Parts Group serves customers in the U.S., Canada, Mexico and Australasia. We keep the world moving with a vast network of over 10,700 locations spanning 17 countries supported by more than 60,000 teammates. Learn more at
link hidden, please login to view. Forward-Looking Statements
Some statements in this release, 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 harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in the future tense and all statements accompanied by words such as "expect," "likely," "outlook," "forecast," "preliminary," "would," "could," "should," "position," "will," "project," "intend," "plan," "on track," "anticipate," "to come," "may," "possible," "assume," or similar expressions are intended to identify such forward-looking statements. These forward-looking statements include our view of business and economic trends for the remainder of the year, our expectations regarding our ability to capitalize on these business and economic trends and to execute our strategic priorities, and the revised full-year 2024 financial guidance provided above. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking.
We caution you that all forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on our forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors may include, among other things, changes in general economic conditions, including unemployment, inflation (including the impact of tariffs) or deflation, financial institution disruptions and geopolitical conflicts such as the conflict between Russia and Ukraine, the conflict in the Gaza strip and other unrest in the Middle East; volatility in oil prices; significant cost increases, such as rising fuel and freight expenses; public health emergencies, including the effects on the financial health of our business partners and customers, on supply chains and our suppliers, on vehicle miles driven as well as other metrics that affect our business, and on access to capital and liquidity provided by the financial and capital markets; our ability to maintain compliance with our debt covenants; our ability to successfully integrate acquired businesses into our operations and to realize the anticipated synergies and benefits; our ability to successfully implement our business initiatives in our two business segments; slowing demand for our products; the ability to maintain favorable supplier arrangements and relationships; changes in national and international legislation or government regulations or policies, including changes to import tariffs, environmental and social policy, infrastructure programs and privacy legislation, and their impact to us, our suppliers and customers; changes in tax policies; volatile exchange rates; our ability to successfully attract and retain employees in the current labor market; uncertain credit markets and other macroeconomic conditions; competitive product, service and pricing pressures; failure or weakness in our disclosure controls and procedures and internal controls over financial reporting, including as a result of the work from home environment; the uncertainties and costs of litigation; disruptions caused by a failure or breach of our information systems, as well as other risks and uncertainties discussed in our Annual Report on Form 10-K for 2023 and from time to time in our subsequent filings with the SEC.
Forward-looking statements speak only as of the date they are made, and we undertake no duty to update any forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent Forms 10-K, 10-Q, 8-K and other reports filed with the SEC.
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By Mia
To extend the lifespan of your brake pads, you can adopt several practices and maintenance habits. Here are some tips to help make your brake pads a longer
Drive Smoothly
Avoid Hard Braking: Try to brake gently and gradually instead of slamming on the brakes Coast to Stop: whenever possible, let your vehicle coast to a stop rather than braking abruptly.
Maintain A Safe Following Distance
Reduce Frequent Braking: Keeping a safe distance from the car in front of you allows more time to brake gently.
Anticipate Stops
Pay attention to traffic flow and road conditions ahead to anticipate stops. Gradually slowing down instead of slamming on the brakes can significantly extend the life of your brake pads.
Avoid Overloading
Excessive weight puts additional strain on your vehicle's braking system. Try to avoid overloading your vehicle beyond its recommended capacity.
Coast When Possible
When approaching a stop sign or red light, coasting instead of maintaining speed can reduce the need for heavy braking.
Brake Gently When Towing
If you're towing a trailer or carrying heavy loads, be extra cautious with braking. Allow more distance to stop and brake gently to reduce strain on the brake pads.
Regular Maintenance
Follow the manufacturer's recommended maintenance schedule for your vehicle, including brake inspections. Promptly replace worn brake pads before they cause damage to other brake components.
Use Engine Braking
When driving downhill, downshift (if you have a manual transmission) or use the engine to slow down the vehicle instead of relying solely on the brakes.
Avoid Riding The Brakes
Constantly keeping your foot on the brake pedal, especially when not actively braking, can lead to premature wear of the brake pads. Practice keeping your foot off the brake pedal when not needed
Quality Brake Pads
Invest in high-quality brake pads that are suited for your vehicle. While they may cost more upfront, they can last longer and provide better performance.
Avoid Harsh Weather Conditions
If possible, avoid driving in harsh weather conditions like heavy rain or snow, as these can accelerate brake pad wear.
Check Brake Fluid
Ensure your brake fluid is at the proper level
If you want to know more basic information about brake pads, you can refer to this website：
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By Max
We offer photo sets of spare parts for your online store (by manufacturer brands).
Good quality photos, no logos or watermarks. Resolution from 3Mpix.
HEPU ( Timing Belt Kit, Water Pump) - 957 images.
BOSCH (Brake Pads, Brake Shoes) - 1024 images.
GATES (Belts, Timing Kits, Water Hoses, Pulleys, Thermostats) - 2081 images.
ZIMMERMANN ( Brake Pads, Brake Shoes, Brake Discs, Brake Drums)
List of available photos IMAGES.xlsx
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By 袁春凤 (Tiffany)
The phenomenon that two objects move relative to each other to produce motion resistance between their contact surfaces is called friction, which is called friction. The existence of friction not only increases the power consumption, but also causes the wear of parts' contact surfaces. Therefore, lubricating oil is usually used between the relative moving surfaces of automobile parts to reduce friction. Failure of automotive parts 75% is caused by friction.
Friction can be divided into dry friction, liquid friction, boundary friction and mixed friction according to the lubrication state of the parts.
(1) dry friction
The friction between the frictional surfaces without any lubricating medium is called dry friction.
When the parts are in the state of dry friction, the surface of the parts is abraded sharply, so the surface of the moving parts of the automobile should avoid the occurrence of dry friction as far as possible.
Dry friction and boundary friction are the main friction between the upper part of cylinder wall and piston ring. Dry friction will occur when the journal and bearing are subjected to impact load in the working process.
(2) liquid friction
Two the friction of the friction surface when the lubricant is completely separated is called liquid friction.
In liquid friction, the two friction surfaces are completely separated by a layer of lubricating oil film with a thickness of 1.5-2.0um, which avoids direct contact between the working surfaces of the two parts. Friction only occurs between the lubricating fluid molecules, so the friction resistance is very small, and the wear of the parts is very slight.
Most of the relative motion parts of a car are carried out under the condition of liquid friction (for example, crankshaft and bearing).
(3) boundary friction
Two friction surface separated by a very thin boundary film is called boundary friction.
The oil film thickness is usually below 0.1um. Friction only occurs between the outer molecules of the boundary film, reducing the friction and wear of the parts. But its thickness is very small, and it is easy to be destroyed by impact and high temperature, so it is not as reliable as liquid friction.
For example: between cylinder wall and piston ring; if the work crankshaft and journal between the insufficient supply of lubricant, easy to produce boundary friction.
(4) Mixed friction
The friction between two friction surfaces in the presence of dry friction, liquid friction and boundary friction is called mixed friction.
In the actual working state, the parts usually work under the mixed friction state, and the friction state varies with the working conditions.
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