The buying GPC did has increased sales, but has it really helped profits? Shareholders equity ended 1998 at 2.053 billion. Now on thi latest report they are at 2.099 billion. Over the last four years they have paid out dividend totaling about $4.28 per share which is about $750 million. They reduced share oustanding by about 6 million, with a value of about $216 million. So with no increase in assets, $750 million paid in dividend, and $216 if you count the value of the stock buy backs, you get profits over the last four years and 3 months of 966 million. 966 million divided by 174,247,000 shares, equal earnings per share of $5.54. Take $5.54 divided by 4.25 years, and you get average earnings of $1.30 per share in what I call real earnings or added worth to shareholders. Before the buys GPC made, they earned $1.90 in 1997 and $1.98 in 1998. Since then it has been smoke and mirrors when it comes to real added value for shareholders. Look at the real numbers.
Motion Industries is a solid business well respected within Industrial circles. The Napa piece is stagnant to down, no new stores , over reliance on Mom and Pop and lost shares to industry leaders AutoZone, O'Reilly, Advance. The company needs to dump auto and focus on Industrial.
Perfect Additions carries mostly off road products for trucks and suvs, but they do carry a good inventory of performance products. Edelbrock, Holley, Accel, K&N are just a few of the lines they carry performance wise. They do carry the "chrome stuff" as well, for the engine dress-up, and vehicle accesories consumers. Some of the biggest items noticed were the suspension kits including wheel and tires. It is a very different store, with a new look and exciting displays. I suspect that new stores will cater to the area they are in, as this one has catered to the truck crowd. I have seen that they do carry some items for the sport compact scene though. The most exciting feature is that they offer installation of most all of their product lines on site!!
POP...Yes I do like NASCAR! I also like the fact that NAPA put their label on NASCAR for a few years, it was good "household name/imaging" advertising. But, I am a bit skeptical about doing it every year after year after year. It's expensive as all get out I know DE Enterprises is not cheap.
A quick story about NASCAR AND DALE E since you are in to it. I get the story from NAPA that the decision to run a car with Michael Waltrip was done on a few hours notice and budget wrangling. Apparently Dale SR called NAPA and said I want a meeting, like now, and bring money! He flew to ATL and introduced the idea of the new team and driver to the powers that be and within literally hours had an ok from NAPA on a series car. Now that's power!
Hmmm... well, I understand what you mean about paradigm shifts, but that distribution model has worked for a long time right? Now, I've been out of the business world for almost 10 years now, but I do know that too much decentralization in distribution creates redundancy and waste. How could they avoid that?
ps - you keep on doing your Roger Moore impressions! You have more information than anyone else on the board and I, for one, want to hear it. My retirement is too tied up in GPC for me not to be informed.
biggame...this is going to be long. I am in this game to make money and so you HAVE TO HAVE leading edge and insightful information and be able to react and move on any play. You know as well as I do that the ability to beat and be out in front of the trend IS the game. So, the "007" in my moniker is an obvious play on the situation(s). You call it "spy" I call it "informed". This mode has made millions of dollars off of situations just like this.
The assumption by your posts that you are a commuting exec was right on? BTW, Thank you for the cuddos on that point and I promise not to print your name or position. It's not hard to figure out really and does not serve a purpose either. I am, that connected! Read on.
You have accused me sir of insulting the exec staff and those are too strong of words in my opinion. Usually, "being insulted", by simple critiscism, is a choice of mindset, so wear the shoe if it fits. I call it criticism of their antics in management style and motivation as well as now, big write offs for bad decisions/choices, regardless of where the fault lies. I will say that NOT all of the staff deserves this pounding (including yourself), but my opinion is that some of the upper crust exec staff is part of the problem and not the solution. No decentralization of authority, people shaking in their shoes and afraid to suggest change, no creative outside thinkers, too introspective solutions and moreover no new markets and/or products. This is all in the face of dire inventory issues, marketshare losses and huge write-offs? You do not know to what extent my participation with this company is, if any? I could be a rogue board member, or just a pee-on invester whinning about management waiting for an opportunity to leap, but an informed one at that. What I can tell you is that I have sat on big company boards and ran large companies myself. And, since you asked for a suggestion, I will tell you that in my opinion the GPC needs leadership by example, vision and positive incentives, not the old "I'll fire you" bit. I have seen, heard and been told of this type of management style for years within the executive ranks. One of the top officers of the company is known for his tyrants on others. I deplore this behaviour! Lead by positive example and outlining definitive, timely, measureable, constructive and moreover ATTAINABLE, goals and reward accordingly. As an interesting side note to this comment, I understand that the at management meeting recently, the morale of the management was discussed and purported changes are in the wind or promised. We shall see? Poor leadership, constant bashing/pressure and floudering are what drive good people away from the company. I don't want to see this happen in times when GPC needs them the most. This company needs a change out of top management and leadership. Someone with vision and the ability to motivate people positively.
I promised to report on the Penske/Kmart/GPC relationship. I was initially right about how this works. The stores are NOT involved but the DCs are. In fact, from what I gleaned, the DCs even have indigneous people to take the orders, serve the account and stock the Penske outlets. The rub lies where the DCs where either overstocking the outlets or just shipping inventory to the Penske stores for reporting reasons I guess. Kmart got an injunction to seize the assets due to monies owed by dear Roger, which included some of NAPA's inventory that was residing in locations, and certain NAPA management had to go to a Michigan court to allow their retraction of inventory. Accounting 101 this is not!
My guess is that the major DCs will be losing upwards of 1.5 to 2 million a year in product shipments to the now defunct Penske.This is how we lose as investors. Another poor decision and good ole boy BS.
Am I to assume you are a James Bond fan or perhaps you just fancy yourself some sort of spy?
Yes, the information you post has been generally accurate. I commend you on that.
My main issue with you, however, is your propensity for insulting the executive staff. I don't believe you to be in top management, therefore you don't really have the right to comment. How do you treat your subordinates? What is your management style? Perhaps you can do a better job? I'm not quite sure you see the whole picture.
I, for one, am interested in your thoughts. You obviously (hyfly) have better information than most.
These boards are always full of people will little information and lots of opinion.
Your thoughts on the supply chain sparked a couple of questions....what's your email - I'd like to ask them without the peanut gallery commentary ;-) I'm at email@example.com
Pa..I have yet to completely understand the relationship of the Penske-Napa connection/ramifications and even if what you say is true, the mear fact that parts that once moved thru the system are no more, is where we all lose here in loss revenues and profits. I am going to figure this out and report back. I have been told that inventory came back on that deal. How much and when is not known, yet.
I like your attitude about the current upper management (I think some of the middle guys are hard workers and smart, but affraid to stick their heads out of their shells). I welcome you to row on the other side of the boat, whereas I seem to be the only one rowing.....in circles so far. You can sure tell who the GPC management types are here when they come out with blind statements and no information or suggestions. They just want me to shut up or better yet,leave. One has even caught up with me on another board and emailed me to cease my "confidential information sharing" thinking that I am an employee or related to the company, which I am not!