Genuine Parts Company (NYSE:GPC) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 11:00 am ET


Genuine Parts Company (NYSE:GPC) Q2 2020 Earnings Conference Call - Final Transcript


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Greetings. Welcome to Genuine Parts Second Quarter 2020 Earnings Conference Call. [Operator Instructions]

I will now turn the conference over to your host, Sid Jones, Senior Vice President of Investor Relations. Thank you. You may begin.

Sidney G. Jones

Good morning, and thank you for joining us today for the Genuine Parts Company Second Quarter 2020 Conference Call. With me today are Paul Donahue, our Chairman and Chief Executive Officer; and Carol Yancey, our Executive Vice President and Chief Financial Officer. Today's conference call and webcast are accompanied by a slide presentation that can be found on the Genuine Parts Company, Investor Relations website. Before we begin this morning, please be advised that this call may include certain non-GAAP financial measures which may be referred to during today's discussion of our results as reported under generally accepted accounting principles. A reconciliation of these measures is provided in the earnings press release issued this morning, which is also posted in the Investors section of our website.

Today's call may also involve forward-looking statements regarding the company and its businesses. The company's actual results could differ materially from any forward-looking statements due to several important factors described in the company's latest SEC filings, including today's press release. The company assumes no obligation to update any forward-looking statements made during this call. Finally, please note that we've accounted for the Business Products segment, S.P. Richards, as discontinued operations for all periods presented.

Now I'll turn the call over to Paul for his remarks.

Paul D. Donahue

Thank you, Sid, and good morning, everyone. We appreciate you joining us today for our second quarter 2020 earnings conference call. We hope you are staying safe and enjoying good health. So as we think about our quarterly performance and long-term focus, we want to highlight four key messages today. One, we are aggressively managing our company's operations through the challenges of COVID-19 by managing the short-term dynamics while staying focused on our long-term growth initiatives. This includes rigorous cost management as well as targeted investments to successfully position GPC in the recovery period and beyond. Two, we delivered strong quarterly results amid the challenging backdrop as we executed on our transformation strategy and omnichannel initiatives. Three, with the sale of our Business Products segment and our streamlined portfolio, we are now well positioned to maximize the full potential of our automotive and industrial segments. And four, we continue to strengthen our financial position by reducing our debt and generating stronger free cash flow.

We significantly enhanced our liquidity this quarter and remain in excellent position to deploy capital towards high ROIC initiatives. The COVID-19 pandemic continues to impact the world in significant ways, both in our personal lives and from a business and economic perspective. We remain focused on prioritizing the health and safety of our employees and their families, our customers and our suppliers. We also want to extend another heartfelt thank you to the health care providers and first responders on the front lines of our fight against this outbreak for