NEW
YORK, Feb. 22, 2023 /PRNewswire/ -- Standard
Motor Products, Inc. (NYSE: SMP), a leading automotive parts
manufacturer and distributor, reported today its consolidated
financial results for the three and twelve months ended
December 31, 2022.
Net sales for the fourth quarter of 2022 were $308.2 million, compared to consolidated net
sales of $309.9 million during the
same quarter in 2021. Earnings from continuing operations for the
fourth quarter of 2022 were $8.5
million or $0.39 per diluted
share, compared to $20.0 million
or $0.89 per diluted share in the
fourth quarter of 2021. Excluding non-operational gains and losses
identified on the attached reconciliation of GAAP and non-GAAP
measures, earnings from continuing operations for the fourth
quarter of 2022 were $15.1
million or $0.69 per diluted
share, compared to $20.3 million
or $0.90 per diluted share in the
fourth quarter of 2021.
Consolidated net sales for the twelve months ended December 31, 2022, were $1.37 billion, compared to consolidated net sales
of $1.30 billion during the
comparable period in 2021. Earnings from continuing
operations for the twelve months ended December 31, 2022, were $73.0 million or $3.30 per diluted share, compared to $99.4 million or $4.39 per diluted share in the comparable period
of 2021. Excluding non-operational gains and losses
identified on the attached reconciliation of GAAP and non-GAAP
measures, earnings from continuing operations for the twelve
months ended December 31, 2022 and
2021 were $79.4 million or
$3.59 per diluted share and
$100.7 million or $4.45 per diluted share, respectively. Our
earnings for both the fourth quarter and the full-year 2022 were
impacted by the recent announcement of a bankruptcy filing by an
Aftermarket customer. We recorded a pre-tax charge of $7.0 million in the fourth quarter related to
anticipated losses from this event, which has been treated as a
non-operational loss on our GAAP to non-GAAP reconciliation.
Mr. Eric Sills, Standard Motor
Products' Chief Executive Officer and President stated, "We are
pleased with our full year sales results, up 5.6% from 2021, with
both Engine Management and Temperature Control segments performing
well. Against a challenging comparison, sales for the fourth
quarter dropped a half a percentage point from the same period last
year, which was up nearly 10% from 2020."
By segment, Engine Management sales increased 4% for the full
year, on top of 12% growth in 2021. However, fourth quarter sales
were down slightly, just over 1%, versus a very strong 2021, which
was up 6% over the prior year. Our customers' Engine
Management POS sales remained robust in the quarter, reflecting
continued market strength and demand for our products.
Temperature Control sales remained strong in the fourth quarter
on the strength of winter related products and from another long,
hot summer. Sales grew 5.2% in the quarter versus last year, and
were up nearly 10% for the full year due to a combination of
favorable weather, successful pricing initiatives and overall
strength in customer demand.
Consolidated operating profit for the quarter, excluding
non-operational gains and losses, was 7.9%, in line with the
fourth quarter of 2021. Pricing actions taken earlier in 2022,
along with various cost reduction initiatives, largely offset
ongoing inflationary pressures.
Consolidated operating profit for the full year, excluding
non-operational gains and losses, finished at 8.2%, vs. 10.1% in
2021. As we've noted many times, 2021 was an anomaly year with many
non-recurring benefits associated with emerging from COVID
lockdowns while still operating in a very low interest rate
environment. Our operating profit of 8.2% was more in line with
historical trends despite incurring an additional $20.6 million of customer factoring costs, which
negatively affected operating profit by 150 basis points as
compared to 2021.
Mr. Sills added, "Today we are announcing our new operating
segment, 'Engineered Solutions', along with the intent to rename
the Engine Management segment to 'Vehicle Control'. These segment
changes, beginning in 2023, will better align the Company's
operating businesses with its strategic focus as well as provide
greater clarity into how the Company is positioned to capture
growth opportunities of the future. Please see our separate
press release on these changes, also distributed today, along with
a supplementary presentation available on the Company's Investor
Relations website. We will discuss in more detail on today's call."
As we head into 2023, our outlook for the full year includes an
expectation that sales will grow in the low single digits and
Adjusted EBITDA will be approximately 10%.
In closing, Mr. Sills commented, "While there still remains
uncertainty as it relates to the economy and various global
dynamics, we believe our end markets' resiliency and
diversification should continue to afford opportunities for new
wins and stable levels of growth throughout 2023 and into the
future."
Conference Call
Standard Motor Products, Inc.
will hold a conference call at 11:00 AM,
Eastern Time, on Wednesday, February
22, 2023. This call will be web cast and can be
accessed on the Investor Relations page of our website at
www.smpcorp.com and clicking on the SMP Q4'22 Earnings Call
Earnings Webcast link. Investors may also listen to the call
by dialing 800-343-1703 (domestic) or 785-424-1226
(international). Our playback will be made available for dial
in immediately following the call. For those choosing to
listen to the replay by webcast, the link should be active on our
website within 24 hours after the call. The playback number
is 800-723-1517 (domestic) or 402-220-2659 (international). The
participant passcode is 73005.
Under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, Standard Motor Products cautions
investors that any forward-looking statements made by the company,
including those that may be made in this press release, are based
on management's expectations at the time they are made, but they
are subject to risks and uncertainties that may cause actual
results, events or performance to differ materially from those
contemplated by such forward looking statements. Among the factors
that could cause actual results, events or performance to differ
materially from those risks and uncertainties discussed in this
press release are those detailed from time-to-time in prior press
releases and in the company's filings with the Securities and
Exchange Commission, including the company's annual report on Form
10-K and quarterly reports on Form 10-Q. By making these
forward-looking statements, Standard Motor Products undertakes no
obligation or intention to update these statements after the date
of this release.
STANDARD MOTOR
PRODUCTS, INC.
|
Consolidated
Statements of Operations
|
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(In thousands,
except per share amounts)
|
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THREE MONTHS
ENDED
|
|
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|
TWELVE MONTHS
ENDED
|
|
DECEMBER 31,
|
|
|
|
DECEMBER 31,
|
|
2022
|
|
|
2021
|
|
|
|
2022
|
|
|
2021
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
NET SALES
|
$
308,199
|
|
|
$
309,877
|
|
|
|
$
1,371,815
|
|
|
$
1,298,816
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
218,635
|
|
|
221,207
|
|
|
|
989,276
|
|
|
921,885
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
89,564
|
|
|
88,670
|
|
|
|
382,539
|
|
|
376,931
|
|
|
|
|
|
|
|
|
|
|
|
|
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES
|
72,075
|
|
|
64,231
|
|
|
|
276,626
|
|
|
247,547
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
1,847
|
|
|
226
|
|
|
|
1,891
|
|
|
392
|
OTHER INCOME (EXPENSE),
NET
|
70
|
|
|
(1)
|
|
|
|
113
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
15,712
|
|
|
24,212
|
|
|
|
104,135
|
|
|
128,999
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER NON-OPERATING
INCOME (EXPENSE), NET
|
(75)
|
|
|
1,247
|
|
|
|
4,814
|
|
|
3,494
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
4,335
|
|
|
672
|
|
|
|
10,617
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|
|
2,028
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS FROM
CONTINUING OPERATIONS BEFORE TAXES
|
11,302
|
|
|
24,787
|
|
|
|
98,332
|
|
|
130,465
|
|
|
|
|
|
|
|
|
|
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|
PROVISION FOR INCOME
TAXES
|
2,799
|
|
|
4,729
|
|
|
|
25,206
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|
|
31,044
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS FROM
CONTINUING OPERATIONS
|
8,503
|
|
|
20,058
|
|
|
|
73,126
|
|
|
99,421
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM DISCONTINUED
OPERATION, NET OF INCOME TAXES
|
(615)
|
|
|
(1,328)
|
|
|
|
(17,691)
|
|
|
(8,467)
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS
|
7,888
|
|
|
18,730
|
|
|
|
55,435
|
|
|
90,954
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS (LOSS)
ATTRIBUTABLE TO NONCONTROLLING INTEREST
|
(45)
|
|
|
36
|
|
|
|
84
|
|
|
68
|
|
|
|
|
|
|
|
|
|
|
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|
NET EARNINGS
ATTRIBUTABLE TO SMP (a)
|
$
7,933
|
|
|
$
18,694
|
|
|
|
$
55,351
|
|
|
$
90,886
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS
ATTRIBUTABLE TO SMP
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS FROM
CONTINUING OPERATIONS
|
$
8,548
|
|
|
$
20,022
|
|
|
|
$
73,042
|
|
|
$
99,353
|
LOSS FROM DISCONTINUED
OPERATION, NET OF INCOME TAXES
|
(615)
|
|
|
(1,328)
|
|
|
|
(17,691)
|
|
|
(8,467)
|
TOTAL
|
$
7,933
|
|
|
$
18,694
|
|
|
|
$
55,351
|
|
|
$
90,886
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
NET EARNINGS PER COMMON
SHARE ATTRIBUTABLE TO SMP
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
EARNINGS FROM CONTINUING OPERATIONS
|
$
0.40
|
|
|
$
0.91
|
|
|
|
$
3.37
|
|
|
$
4.49
|
DISCONTINUED OPERATION
|
(0.03)
|
|
|
(0.06)
|
|
|
|
(0.82)
|
|
|
(0.39)
|
NET
EARNINGS PER COMMON SHARE - BASIC
|
$
0.37
|
|
|
$
0.85
|
|
|
|
$
2.55
|
|
|
$
4.10
|
|
|
|
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|
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|
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|
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|
DILUTED
EARNINGS FROM CONTINUING OPERATIONS
|
$
0.39
|
|
|
$
0.89
|
|
|
|
$
3.30
|
|
|
$
4.39
|
DISCONTINUED OPERATION
|
(0.03)
|
|
|
(0.06)
|
|
|
|
(0.80)
|
|
|
(0.37)
|
NET
EARNINGS PER COMMON SHARE - DILUTED
|
$
0.36
|
|
|
$
0.83
|
|
|
|
$
2.50
|
|
|
$
4.02
|
|
|
|
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|
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|
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|
|
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
|
21,578,194
|
|
|
21,987,480
|
|
|
|
21,683,719
|
|
|
22,147,479
|
WEIGHTED AVERAGE NUMBER
OF COMMON AND DILUTIVE SHARES
|
22,030,263
|
|
|
22,485,032
|
|
|
|
22,139,981
|
|
|
22,616,456
|
|
|
(a)
|
"SMP" refers to
Standard Motor Products, Inc. and subsidiaries.
|
STANDARD MOTOR
PRODUCTS, INC.
|
Segment Revenues and
Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
TWELVE MONTHS
ENDED
|
|
|
DECEMBER
31,
|
|
|
DECEMBER
31,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Ignition, Emission
Control, Fuel & Safety
|
|
|
|
|
|
|
|
|
|
|
|
Related
System Products
|
$ 206,479
|
|
|
$ 211,919
|
|
|
$ 824,677
|
|
|
$ 786,514
|
|
Wire and
Cable
|
35,893
|
|
|
33,632
|
|
|
150,566
|
|
|
151,422
|
|
Engine
Management
|
242,372
|
|
|
245,551
|
|
|
975,243
|
|
|
937,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compressors
|
28,981
|
|
|
28,666
|
|
|
222,532
|
|
|
206,697
|
|
Other Climate Control
Parts
|
34,560
|
|
|
31,738
|
|
|
159,753
|
|
|
141,726
|
|
Temperature Control
|
63,541
|
|
|
60,404
|
|
|
382,285
|
|
|
348,423
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Other
|
2,286
|
|
|
3,922
|
|
|
14,287
|
|
|
12,457
|
|
Revenues
|
$ 308,199
|
|
|
$ 309,877
|
|
|
$
1,371,815
|
|
|
$
1,298,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Margin
|
|
|
|
|
|
|
|
|
|
|
|
Engine
Management
|
$
69,099
|
28.5 %
|
|
$
67,776
|
27.6 %
|
|
$ 262,954
|
27.0 %
|
|
$ 267,285
|
28.5 %
|
Temperature
Control
|
16,675
|
26.2 %
|
|
16,670
|
27.6 %
|
|
102,640
|
26.8 %
|
|
95,138
|
27.3 %
|
All Other
|
3,790
|
|
|
4,270
|
|
|
16,945
|
|
|
14,832
|
|
Subtotal
|
$
89,564
|
29.1 %
|
|
$
88,716
|
28.6 %
|
|
$ 382,539
|
27.9 %
|
|
$ 377,255
|
29.0 %
|
One-Time Acquisition
Costs
|
-
|
0.0 %
|
|
(46)
|
0.0 %
|
|
-
|
0.0 %
|
|
(324)
|
0.0 %
|
Gross
Margin
|
$
89,564
|
29.1 %
|
|
$
88,670
|
28.6 %
|
|
$ 382,539
|
27.9 %
|
|
$ 376,931
|
29.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General
& Administrative
|
|
|
|
|
|
|
|
|
|
|
|
Engine
Management
|
$
42,644
|
17.6 %
|
|
$
39,485
|
16.1 %
|
|
$ 165,389
|
17.0 %
|
|
$ 149,206
|
15.9 %
|
Temperature
Control
|
14,436
|
22.7 %
|
|
13,192
|
21.8 %
|
|
68,666
|
18.0 %
|
|
58,144
|
16.7 %
|
All Other
|
7,993
|
|
|
11,495
|
|
|
35,569
|
|
|
38,810
|
|
Subtotal
|
$
65,073
|
21.1 %
|
|
$
64,172
|
20.7 %
|
|
$ 269,624
|
19.7 %
|
|
$ 246,160
|
19.0 %
|
Customer Bankruptcy
Charge
|
7,002
|
2.3 %
|
|
-
|
0.0 %
|
|
7,002
|
0.5 %
|
|
-
|
0.0 %
|
One-Time Acquisition
Costs
|
-
|
0.0 %
|
|
59
|
0.0 %
|
|
-
|
0.0 %
|
|
1,387
|
0.1 %
|
Selling, General & Administrative
|
$
72,075
|
23.4 %
|
|
$
64,231
|
20.7 %
|
|
$ 276,626
|
20.2 %
|
|
$ 247,547
|
19.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
|
|
|
|
|
|
|
|
Engine
Management
|
$
26,455
|
10.9 %
|
|
$
28,291
|
11.5 %
|
|
$
97,565
|
10.0 %
|
|
$ 118,079
|
12.6 %
|
Temperature
Control
|
2,239
|
3.5 %
|
|
3,478
|
5.8 %
|
|
33,974
|
8.9 %
|
|
36,994
|
10.6 %
|
All Other
|
(4,203)
|
|
|
(7,225)
|
|
|
(18,624)
|
|
|
(23,978)
|
|
Subtotal
|
$
24,491
|
7.9 %
|
|
$
24,544
|
7.9 %
|
|
$ 112,915
|
8.2 %
|
|
$ 131,095
|
10.1 %
|
Customer Bankruptcy
Charge
|
(7,002)
|
-2.3 %
|
|
-
|
0.0 %
|
|
(7,002)
|
-0.5 %
|
|
-
|
0.0 %
|
One-Time Acquisition
Costs
|
-
|
0.0 %
|
|
(105)
|
0.0 %
|
|
-
|
0.0 %
|
|
(1,711)
|
-0.1 %
|
Restructuring &
Integration
|
(1,847)
|
-0.6 %
|
|
(226)
|
-0.1 %
|
|
(1,891)
|
-0.1 %
|
|
(392)
|
0.0 %
|
Other Income
(Expense), Net
|
70
|
0.0 %
|
|
(1)
|
0.0 %
|
|
113
|
0.0 %
|
|
7
|
0.0 %
|
Operating Income
|
$
15,712
|
5.1 %
|
|
$
24,212
|
7.8 %
|
|
$ 104,135
|
7.6 %
|
|
$ 128,999
|
9.9 %
|
STANDARD MOTOR
PRODUCTS, INC.
|
Reconciliation of
GAAP and Non-GAAP Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
TWELVE MONTHS
ENDED
|
|
DECEMBER 31,
|
|
DECEMBER 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
EARNINGS FROM
CONTINUING OPERATIONS ATTRIBUTABLE TO SMP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM
CONTINUING OPERATIONS
|
$
8,548
|
|
$
20,022
|
|
$
73,042
|
|
$
99,353
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
1,847
|
|
226
|
|
1,891
|
|
392
|
CUSTOMER BANKRUPTCY
CHARGE
|
7,002
|
|
-
|
|
7,002
|
|
-
|
ONE-TIME ACQUISITION
COSTS
|
-
|
|
105
|
|
-
|
|
1,711
|
CERTAIN TAX CREDITS AND
PRODUCTION DEDUCTIONS FINALIZED IN PERIOD
|
-
|
|
-
|
|
(249)
|
|
(259)
|
INCOME TAX EFFECT
RELATED TO RECONCILING ITEMS
|
(2,301)
|
|
(86)
|
|
(2,312)
|
|
(547)
|
NON-GAAP EARNINGS FROM
CONTINUING OPERATIONS
|
$
15,096
|
|
$
20,267
|
|
$
79,374
|
|
$
100,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP DILUTED EARNINGS
PER SHARE FROM CONTINUING OPERATIONS
|
$
0.39
|
|
$
0.89
|
|
$
3.30
|
|
$
4.39
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
0.08
|
|
0.01
|
|
0.08
|
|
0.02
|
CUSTOMER BANKRUPTCY
CHARGE
|
0.32
|
|
-
|
|
0.32
|
|
-
|
ONE-TIME ACQUISITION
COSTS
|
-
|
|
-
|
|
-
|
|
0.07
|
CERTAIN TAX CREDITS AND
PRODUCTION DEDUCTIONS FINALIZED IN PERIOD
|
-
|
|
-
|
|
(0.01)
|
|
(0.01)
|
INCOME TAX EFFECT
RELATED TO RECONCILING ITEMS
|
(0.10)
|
|
-
|
|
(0.10)
|
|
(0.02)
|
|
|
|
|
|
|
|
|
NON-GAAP DILUTED
EARNINGS PER SHARE FROM CONTINUING OPERATIONS
|
$
0.69
|
|
$
0.90
|
|
$
3.59
|
|
$
4.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING
INCOME
|
$
15,712
|
|
$
24,212
|
|
$
104,135
|
|
$
128,999
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
1,847
|
|
226
|
|
1,891
|
|
392
|
CUSTOMER BANKRUPTCY
CHARGE
|
7,002
|
|
-
|
|
7,002
|
|
-
|
ONE-TIME ACQUISITION
COSTS
|
-
|
|
105
|
|
-
|
|
1,711
|
OTHER (INCOME) EXPENSE,
NET
|
(70)
|
|
1
|
|
(113)
|
|
(7)
|
|
|
|
|
|
|
|
|
NON-GAAP OPERATING
INCOME
|
$
24,491
|
|
$
24,544
|
|
$
112,915
|
|
$
131,095
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT
SPECIAL ITEMS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM
CONTINUING OPERATIONS BEFORE TAXES
|
$
11,302
|
|
$
24,787
|
|
$
98,332
|
|
$
130,465
|
|
|
|
|
|
|
|
|
DEPRECIATION AND
AMORTIZATION
|
7,403
|
|
7,083
|
|
28,298
|
|
27,243
|
INTEREST
EXPENSE
|
4,335
|
|
672
|
|
10,617
|
|
2,028
|
EBITDA
|
23,040
|
|
32,542
|
|
137,247
|
|
159,736
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
1,847
|
|
226
|
|
1,891
|
|
392
|
CUSTOMER BANKRUPTCY
CHARGE
|
7,002
|
|
-
|
|
7,002
|
|
-
|
ONE-TIME ACQUISITION
COSTS
|
-
|
|
105
|
|
-
|
|
1,711
|
SPECIAL ITEMS
|
8,849
|
|
331
|
|
8,893
|
|
2,103
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL
ITEMS
|
$
31,889
|
|
$
32,873
|
|
$
146,140
|
|
$
161,839
|
|
MANAGEMENT BELIEVES
THAT NON-GAAP EARNINGS FROM CONTINUING OPERATIONS AND NON-GAAP
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS WHICH ARE
ATTRIBUTABLE TO SMP, AND NON-GAAP OPERATING INCOME AND EBITDA
WITHOUT SPECIAL ITEMS, EACH OF WHICH ARE NON-GAAP MEASUREMENTS AND
ARE ADJUSTED FOR SPECIAL ITEMS, ARE MEANINGFUL TO INVESTORS BECAUSE
THEY PROVIDE A VIEW OF THE COMPANY WITH RESPECT TO ONGOING
OPERATING RESULTS. SPECIAL ITEMS REPRESENT SIGNIFICANT
CHARGES OR CREDITS THAT ARE IMPORTANT TO AN UNDERSTANDING OF THE
COMPANY'S OVERALL OPERATING RESULTS IN THE PERIODS PRESENTED. SUCH
NON-GAAP MEASUREMENTS ARE NOT RECOGNIZED IN ACCORDANCE WITH
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND SHOULD NOT BE VIEWED
AS AN ALTERNATIVE TO GAAP MEASURES OF PERFORMANCE.
|
STANDARD MOTOR
PRODUCTS, INC.
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
CASH
|
$
21,150
|
|
$
21,755
|
|
|
|
|
ACCOUNTS RECEIVABLE,
GROSS
|
173,013
|
|
186,774
|
ALLOWANCE FOR EXPECTED
CREDIT LOSSES
|
5,375
|
|
6,170
|
ACCOUNTS RECEIVABLE,
NET
|
167,638
|
|
180,604
|
|
|
|
|
INVENTORIES
|
528,715
|
|
468,755
|
UNRETURNED CUSTOMER
INVENTORY
|
19,695
|
|
22,268
|
OTHER CURRENT
ASSETS
|
25,241
|
|
17,823
|
|
|
|
|
TOTAL CURRENT
ASSETS
|
762,439
|
|
711,205
|
|
|
|
|
PROPERTY, PLANT AND
EQUIPMENT, NET
|
107,148
|
|
102,786
|
OPERATING LEASE
RIGHT-OF-USE ASSETS
|
49,838
|
|
40,469
|
GOODWILL
|
132,087
|
|
131,652
|
OTHER INTANGIBLES,
NET
|
100,504
|
|
106,234
|
DEFERRED INCOME
TAXES
|
33,658
|
|
36,126
|
INVESTMENT IN
UNCONSOLIDATED AFFILIATES
|
41,745
|
|
44,087
|
OTHER ASSETS
|
27,510
|
|
25,402
|
|
|
|
|
TOTAL ASSETS
|
$
1,254,929
|
|
$
1,197,961
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
CURRENT PORTION OF
REVOLVING CREDIT FACILITY
|
$
50,000
|
|
$
125,298
|
CURRENT PORTION OF TERM
LOAN AND OTHER DEBT
|
5,031
|
|
3,117
|
ACCOUNTS
PAYABLE
|
89,247
|
|
137,167
|
ACCRUED CUSTOMER
RETURNS
|
37,169
|
|
42,412
|
ACCRUED CORE
LIABILITY
|
22,952
|
|
23,663
|
ACCRUED
REBATES
|
37,381
|
|
42,472
|
PAYROLL AND
COMMISSIONS
|
31,361
|
|
45,058
|
SUNDRY PAYABLES AND
ACCRUED EXPENSES
|
49,990
|
|
57,182
|
|
|
|
|
TOTAL CURRENT
LIABILITIES
|
323,131
|
|
476,369
|
|
|
|
|
OTHER LONG-TERM
DEBT
|
184,589
|
|
21
|
NONCURRENT OPERATING
LEASE LIABILITY
|
40,709
|
|
31,206
|
ACCRUED ASBESTOS
LIABILITIES
|
63,305
|
|
52,698
|
OTHER
LIABILITIES
|
22,157
|
|
25,040
|
|
|
|
|
TOTAL
LIABILITIES
|
633,891
|
|
585,334
|
|
|
|
|
TOTAL SMP STOCKHOLDERS'
EQUITY
|
610,020
|
|
601,580
|
NONCONTROLLING
INTEREST
|
11,018
|
|
11,047
|
TOTAL
STOCKHOLDERS' EQUITY
|
621,038
|
|
612,627
|
|
|
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
1,254,929
|
|
$
1,197,961
|
STANDARD MOTOR
PRODUCTS, INC.
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
TWELVE MONTHS
ENDED
|
|
DECEMBER 31,
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
NET
EARNINGS
|
$
55,435
|
|
$
90,954
|
ADJUSTMENTS TO
RECONCILE NET EARNINGS TO NET CASH
|
|
|
|
PROVIDED BY (USED IN)
OPERATING ACTIVITIES:
|
|
|
|
DEPRECIATION AND
AMORTIZATION
|
28,298
|
|
27,243
|
LOSS FROM DISCONTINUED
OPERATIONS, NET OF TAXES
|
17,691
|
|
8,467
|
CUSTOMER BANKRUPTCY
CHARGE
|
7,002
|
|
-
|
OTHER
|
13,064
|
|
7,456
|
CHANGE IN ASSETS AND
LIABILITIES:
|
|
|
|
ACCOUNTS
RECEIVABLE
|
6,916
|
|
28,464
|
INVENTORY
|
(67,495)
|
|
(107,609)
|
ACCOUNTS
PAYABLE
|
(48,604)
|
|
33,046
|
PREPAID EXPENSES AND
OTHER CURRENT ASSETS
|
(5,509)
|
|
(843)
|
SUNDRY PAYABLES AND
ACCRUED EXPENSES
|
(29,089)
|
|
13,430
|
OTHER
|
(5,242)
|
|
(15,044)
|
NET CASH PROVIDED BY
(USED IN) OPERATING ACTIVITIES
|
(27,533)
|
|
85,564
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
ACQUISITIONS OF AND
INVESTMENTS IN BUSINESSES
|
(1,934)
|
|
(125,419)
|
CAPITAL
EXPENDITURES
|
(25,956)
|
|
(25,875)
|
OTHER INVESTING
ACTIVITIES
|
73
|
|
45
|
NET CASH USED IN
INVESTING ACTIVITIES
|
(27,817)
|
|
(151,249)
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
NET CHANGE IN
DEBT
|
111,307
|
|
118,346
|
PURCHASE OF TREASURY
STOCK
|
(29,656)
|
|
(26,862)
|
DIVIDENDS
PAID
|
(23,428)
|
|
(22,179)
|
DIVIDENDS PAID TO
NONCONTROLLING INTEREST
|
-
|
|
(540)
|
PAYMENTS OF DEBT
ISSUANCE COSTS
|
(2,128)
|
|
-
|
OTHER FINANCING
ACTIVITIES
|
(595)
|
|
247
|
NET CASH PROVIDED BY
FINANCING ACTIVITIES
|
55,500
|
|
69,012
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE
CHANGES ON CASH
|
(755)
|
|
(1,060)
|
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
|
(605)
|
|
2,267
|
CASH AND CASH
EQUIVALENTS at beginning of period
|
21,755
|
|
19,488
|
CASH AND CASH
EQUIVALENTS at end of period
|
$
21,150
|
|
$
21,755
|
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SOURCE Standard Motor Products, Inc.