NEW
YORK, May 3, 2023 /PRNewswire/ -- Standard Motor
Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer
and distributor, reported today its consolidated financial results
for the three months ended March 31,
2023.
Net sales for the first quarter of 2023 were $328.0 million, compared to consolidated net
sales of $322.8 million during the
comparable quarter in 2022. Earnings from continuing operations for
the first quarter of 2023 were $12.7
million or $0.57 per diluted
share, compared to $20.6 million
or $0.91 per diluted share in the
first quarter of 2022. Excluding non-operational gains and losses
identified on the attached reconciliation of GAAP and non-GAAP
measures, earnings from continuing operations for the first quarter
of 2023 were $13.4 million or
$0.61 per diluted share, compared to
$20.6 million or $0.92 per diluted share in the first quarter of
2022.
Mr. Eric Sills, Standard Motor
Products' Chief Executive Officer and President stated, "We are
pleased with our first quarter results, as sales increased 1.6%
against a difficult comparison, as last year's first quarter was up
17% from the previous year."
By segment, Vehicle Control sales were up 4.1% in the quarter,
reflecting continued strength in demand within the aftermarket. Our
customers' POS throughout the quarter also remained favorable,
which bodes well for future demand.
Turning to Temperature Control, sales declined a modest 0.9%
versus the almost 30% growth experienced during the same quarter
last year. As a seasonal business, first quarter sales are
heavily dependent on customer preseason ordering patterns, and
therefore not indicative of the full year.
Engineered Solutions sales were 2% lower than last year's first
quarter, but 5% higher than the quarterly average sales level
achieved in 2022. We expect this segment to be slightly lumpy
quarter to quarter as a result of changes in customer order
patterns. Based upon customer interest, we continue to
believe long-term sales growth will be strong, though revenue
growth from business wins is not linear.
Looking at profitability, consolidated non-GAAP operating profit
margin was 6.6% in the quarter versus 8.3% in the first quarter
last year. The decline in profit of $5.3
million was mainly the result of a $5.5 million increase in customer factoring
program expense over last year, due to rising interest rates.
Excluding these incremental factoring costs, our operating expenses
would have been flat year over year at 19.5% of net sales.
Adjusted EBITDA margin was 8.8% in the quarter versus 11.0% last
year and was impacted by the above-mentioned factoring
expense. We continue to implement both pricing and cost
savings initiatives to help offset rising interest cost increases
and lingering inflationary pressures on certain commodities and
labor expense.
Our sales and profit expectations for the full year of 2023
remain unchanged with top line sales growth expected to be in the
low single digits with an Adjusted EBITDA margin of approximately
10% of revenue, assuming current interest rates.
As part of our commitment to return value to shareholders, the
Board of Directors has approved payment of a quarterly dividend of
29 cents per share on the common
stock outstanding, which will be paid on June 1, 2023 to stockholders of record on
May 15, 2023.
As we recently announced, we are pleased to have published our
2022 Corporate Sustainability report. This report outlines
our commitment to being environmentally and socially responsible,
and highlights the noticeable progress we have made to date. We
remain committed to leveraging sustainability as a catalyst for
positive change both within our organization and in the communities
within which we operate.
In closing, Mr. Sills commented, "While uncertainty remains, we
continue to be bullish on all of our markets. The aftermarket has a
long history of stability in challenging economic times, and while
still relatively new to us, we are excited about where we are
heading with our Engineered Solutions business and the attention it
has been getting from its customer base. We will continue to
look for ways to drive growth, offset rising costs and deliver
increasing value to all our customers and stakeholders alike."
Conference Call
Standard Motor Products, Inc. will hold a conference call at
11:00 AM, Eastern Time, on
Wednesday, May 3, 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 Q1
2023 Earnings Webcast link. Investors may also listen to the
call by dialing 800-225-9448 (domestic) or 203-518-9708
(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 800-934-4245 (domestic) or 402-220-1173 (international). The
participant passcode is 94640.
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
|
MARCH 31,
|
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
(Unaudited)
|
|
|
NET SALES
|
|
$
328,028
|
100.0 %
|
|
$
322,831
|
100.0 %
|
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
236,761
|
72.2 %
|
|
232,991
|
72.2 %
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
91,267
|
27.8 %
|
|
89,840
|
27.8 %
|
|
|
|
|
|
|
|
|
|
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES
|
|
69,633
|
21.2 %
|
|
62,884
|
19.5 %
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
|
912
|
0.3 %
|
|
41
|
0.0 %
|
|
OTHER INCOME,
NET
|
|
24
|
0.0 %
|
|
-
|
0.0 %
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
20,746
|
6.3 %
|
|
26,915
|
8.3 %
|
|
|
|
|
|
|
|
|
|
OTHER NON-OPERATING
INCOME, NET
|
|
225
|
0.1 %
|
|
1,449
|
0.4 %
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
3,862
|
1.2 %
|
|
805
|
0.2 %
|
|
|
|
|
|
|
|
|
|
EARNINGS FROM
CONTINUING OPERATIONS BEFORE TAXES
|
|
17,109
|
5.2 %
|
|
27,559
|
8.5 %
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
|
4,372
|
1.3 %
|
|
7,005
|
2.2 %
|
|
|
|
|
|
|
|
|
|
EARNINGS FROM
CONTINUING OPERATIONS
|
|
12,737
|
3.9 %
|
|
20,554
|
6.4 %
|
|
|
|
|
|
|
|
|
|
LOSS FROM DISCONTINUED
OPERATION, NET OF INCOME TAXES
|
|
(780)
|
-0.2 %
|
|
(1,116)
|
-0.3 %
|
|
|
|
|
|
|
|
|
|
NET EARNINGS
|
|
11,957
|
3.6 %
|
|
19,438
|
6.0 %
|
|
|
|
|
|
|
|
|
|
NET EARNINGS (LOSS)
ATTRIBUTABLE TO NONCONTROLLING INTEREST
|
39
|
0.0 %
|
|
(8)
|
0.0 %
|
|
|
|
|
|
|
|
|
|
NET EARNINGS
ATTRIBUTABLE TO SMP (a)
|
|
$
11,918
|
3.6 %
|
|
$
19,446
|
6.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS
ATTRIBUTABLE TO SMP
|
|
|
|
|
|
|
|
EARNINGS FROM
CONTINUING OPERATIONS
|
|
$
12,698
|
3.9 %
|
|
$
20,562
|
6.4 %
|
|
LOSS FROM DISCONTINUED
OPERATION, NET OF INCOME TAXES
|
|
(780)
|
-0.2 %
|
|
(1,116)
|
-0.3 %
|
|
TOTAL
|
|
$
11,918
|
3.6 %
|
|
$
19,446
|
6.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS PER COMMON
SHARE ATTRIBUTABLE TO SMP
|
|
|
|
|
|
|
|
BASIC
EARNINGS FROM CONTINUING OPERATIONS
|
|
$
0.59
|
|
|
$
0.94
|
|
|
DISCONTINUED OPERATION
|
|
(0.04)
|
|
|
(0.06)
|
|
|
NET
EARNINGS PER COMMON SHARE - BASIC
|
|
$
0.55
|
|
|
$
0.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED
EARNINGS FROM CONTINUING OPERATIONS
|
|
$
0.57
|
|
|
$
0.91
|
|
|
DISCONTINUED OPERATION
|
|
(0.03)
|
|
|
(0.04)
|
|
|
NET
EARNINGS PER COMMON SHARE - DILUTED
|
|
$
0.54
|
|
|
$
0.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
|
|
21,609,618
|
|
|
21,978,507
|
|
|
WEIGHTED AVERAGE NUMBER
OF COMMON AND DILUTIVE SHARES
|
|
22,097,750
|
|
|
22,477,819
|
|
|
|
|
|
|
|
|
|
|
(a) "SMP"
refers to Standard Motor Products, Inc. and
subsidiaries.
|
|
|
|
|
|
|
|
STANDARD MOTOR
PRODUCTS, INC.
|
Segment Revenues and
Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
March
31,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
(Unaudited)
|
|
Revenues
|
|
|
|
|
|
|
Engine Management
(Ignition, Emissions and
|
|
|
|
|
|
|
Fuel
Delivery)
|
|
$
116,083
|
|
|
$
109,149
|
|
Electrical and
Safety
|
|
51,804
|
|
|
52,257
|
|
Wire sets and
other
|
|
16,690
|
|
|
15,858
|
|
Vehicle
Control
|
|
184,577
|
|
|
177,264
|
|
|
|
|
|
|
|
|
AC System
Components
|
|
45,752
|
|
|
47,374
|
|
Other Thermal
Components
|
|
26,654
|
|
|
25,684
|
|
Temperature Control
|
|
72,406
|
|
|
73,058
|
|
|
|
|
|
|
|
|
Commercial
Vehicle
|
|
19,857
|
|
|
21,451
|
|
Construction /
Agriculture
|
|
12,795
|
|
|
10,984
|
|
Light
Vehicle
|
|
22,966
|
|
|
26,075
|
|
All Other
|
|
15,427
|
|
|
13,999
|
|
Engineered Solutions
|
|
71,045
|
|
|
72,509
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
328,028
|
|
|
$
322,831
|
|
|
|
|
|
|
|
|
Gross
Margin
|
|
|
|
|
|
|
Vehicle
Control
|
|
$
58,472
|
31.7 %
|
|
$
55,424
|
31.3 %
|
Temperature
Control
|
|
19,155
|
26.5 %
|
|
19,488
|
26.7 %
|
Engineered
Solutions
|
|
13,640
|
19.2 %
|
|
14,928
|
20.6 %
|
All Other
|
|
-
|
|
|
-
|
|
Gross
Margin
|
|
$
91,267
|
27.8 %
|
|
$
89,840
|
27.8 %
|
|
|
|
|
|
|
|
Selling, General
& Administrative
|
|
|
|
|
|
|
Vehicle
Control
|
|
$
40,836
|
22.1 %
|
|
$
35,039
|
19.8 %
|
Temperature
Control
|
|
16,528
|
22.8 %
|
|
15,326
|
21.0 %
|
Engineered
Solutions
|
|
7,909
|
11.1 %
|
|
8,640
|
11.9 %
|
All Other
|
|
4,360
|
|
|
3,879
|
|
Selling, General & Administrative
|
|
$
69,633
|
21.2 %
|
|
$
62,884
|
19.5 %
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
|
|
|
Vehicle
Control
|
|
$
17,636
|
9.6 %
|
|
$
20,385
|
11.5 %
|
Temperature
Control
|
|
2,627
|
3.6 %
|
|
4,162
|
5.7 %
|
Engineered
Solutions
|
|
5,731
|
8.1 %
|
|
6,288
|
8.7 %
|
All Other
|
|
(4,360)
|
|
|
(3,879)
|
|
Subtotal
|
|
$
21,634
|
6.6 %
|
|
$
26,956
|
8.3 %
|
Restructuring &
Integration
|
|
(912)
|
-0.3 %
|
|
(41)
|
0.0 %
|
Other Income,
Net
|
|
24
|
0.0 %
|
|
-
|
0.0 %
|
Operating Income
|
|
$
20,746
|
6.3 %
|
|
$
26,915
|
8.3 %
|
STANDARD MOTOR
PRODUCTS, INC.
|
|
|
|
|
|
Reconciliation of
GAAP and Non-GAAP Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
|
|
|
|
|
MARCH
31,
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
EARNINGS FROM
CONTINUING OPERATIONS ATTRIBUTABLE TO SMP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM
CONTINUING OPERATIONS
|
|
$
12,698
|
|
$
20,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
|
912
|
|
41
|
|
|
|
|
|
|
INCOME TAX EFFECT
RELATED TO RECONCILING ITEMS
|
|
(237)
|
|
(11)
|
|
|
|
|
|
|
NON-GAAP EARNINGS FROM
CONTINUING OPERATIONS
|
|
$
13,373
|
|
$
20,592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP DILUTED EARNINGS
PER SHARE FROM CONTINUING OPERATIONS
|
|
$
0.57
|
|
$
0.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
|
0.04
|
|
0.01
|
|
|
|
|
|
|
INCOME TAX EFFECT
RELATED TO RECONCILING ITEMS
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP DILUTED
EARNINGS PER SHARE FROM CONTINUING OPERATIONS
|
|
$
0.61
|
|
$
0.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING
INCOME
|
|
$
20,746
|
|
$
26,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
|
912
|
|
41
|
|
|
|
|
|
|
OTHER INCOME,
NET
|
|
(24)
|
|
-
|
|
LAST TWELVE MONTHS
ENDED
|
|
YEAR
ENDED
|
|
|
|
|
|
|
MARCH
31,
|
|
DECEMBER
31,
|
NON-GAAP OPERATING
INCOME
|
|
$
21,634
|
|
$
26,956
|
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
(Unaudited)
|
|
|
EBITDA WITHOUT
SPECIAL ITEMS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM
CONTINUING OPERATIONS BEFORE TAXES
|
|
$
17,109
|
|
$
27,559
|
|
$
87,882
|
|
$
128,274
|
|
$
98,332
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION AND
AMORTIZATION
|
|
7,082
|
|
6,952
|
|
28,428
|
|
27,681
|
|
28,298
|
INTEREST
EXPENSE
|
|
3,862
|
|
805
|
|
13,674
|
|
2,624
|
|
10,617
|
EBITDA
|
|
28,053
|
|
35,316
|
|
129,984
|
|
158,579
|
|
137,247
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
|
912
|
|
41
|
|
2,762
|
|
433
|
|
1,891
|
CUSTOMER BANKRUPTCY
CHARGE
|
|
-
|
|
-
|
|
7,002
|
|
-
|
|
7,002
|
ONE-TIME ACQUISITION
COSTS
|
|
-
|
|
-
|
|
-
|
|
1,711
|
|
-
|
SPECIAL ITEMS
|
|
912
|
|
41
|
|
9,764
|
|
2,144
|
|
8,893
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL
ITEMS
|
|
$
28,965
|
|
$
35,357
|
|
$
139,748
|
|
$
160,723
|
|
$
146,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
Reconciliation of
GAAP and Non-GAAP Measures by Segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
THREE MONTHS ENDED
MARCH 31, 2023
|
|
|
|
Vehicle
Control
|
|
Temperature
Control
|
|
Engineered
Solutions
|
|
All
Other
|
|
Consolidated
|
|
|
|
(Unaudited)
|
|
OPERATING
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING
INCOME
|
|
$
17,375
|
|
$
2,084
|
|
$
5,647
|
|
$
(4,360)
|
|
$
20,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
|
285
|
|
543
|
|
84
|
|
-
|
|
912
|
|
OTHER INCOME,
NET
|
|
(24)
|
|
-
|
|
-
|
|
-
|
|
(24)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP OPERATING
INCOME
|
|
$
17,636
|
|
$
2,627
|
|
$
5,731
|
|
$
(4,360)
|
|
$
21,634
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT
SPECIAL ITEMS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM
CONTINUING OPERATIONS BEFORE TAXES
|
|
$
15,057
|
|
$
1,105
|
|
$
5,286
|
|
$
(4,339)
|
|
$
17,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION AND
AMORTIZATION
|
|
3,412
|
|
763
|
|
2,481
|
|
426
|
|
7,082
|
|
INTEREST
EXPENSE
|
|
2,741
|
|
893
|
|
359
|
|
(131)
|
|
3,862
|
|
EBITDA
|
|
21,210
|
|
2,761
|
|
8,126
|
|
(4,044)
|
|
28,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
|
285
|
|
543
|
|
84
|
|
-
|
|
912
|
|
SPECIAL ITEMS
|
|
285
|
|
543
|
|
84
|
|
-
|
|
912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL
ITEMS
|
|
$
21,495
|
|
$
3,304
|
|
$
8,210
|
|
$
(4,044)
|
|
$
28,965
|
|
% of Net
Sales
|
|
11.6 %
|
|
4.6 %
|
|
11.6 %
|
|
|
|
8.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
MARCH 31, 2022
|
|
|
|
Vehicle
Control
|
|
Temperature
Control
|
|
Engineered
Solutions
|
|
All
Other
|
|
Consolidated
|
|
|
|
(Unaudited)
|
|
OPERATING
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING
INCOME
|
|
$
20,344
|
|
$
4,162
|
|
$
6,288
|
|
$
(3,879)
|
|
$
26,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
|
41
|
|
-
|
|
-
|
|
-
|
|
41
|
|
OTHER INCOME,
NET
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP OPERATING
INCOME
|
|
$
20,385
|
|
$
4,162
|
|
$
6,288
|
|
$
(3,879)
|
|
$
26,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT
SPECIAL ITEMS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM
CONTINUING OPERATIONS BEFORE TAXES
|
|
$
20,366
|
|
$
4,480
|
|
$
6,578
|
|
$
(3,865)
|
|
$
27,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION AND
AMORTIZATION
|
|
3,417
|
|
680
|
|
2,458
|
|
397
|
|
6,952
|
|
INTEREST
EXPENSE
|
|
575
|
|
160
|
|
146
|
|
(76)
|
|
805
|
|
EBITDA
|
|
24,358
|
|
5,320
|
|
9,182
|
|
(3,544)
|
|
35,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
|
41
|
|
-
|
|
-
|
|
-
|
|
41
|
|
SPECIAL ITEMS
|
|
41
|
|
-
|
|
-
|
|
-
|
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL
ITEMS
|
|
$
24,399
|
|
$
5,320
|
|
$
9,182
|
|
$
(3,544)
|
|
$
35,357
|
|
% of Net
Sales
|
|
13.8 %
|
|
7.3 %
|
|
12.7 %
|
|
|
|
11.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT BELIEVES
THAT 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARCH
|
|
MARCH
|
|
DECEMBER
|
|
|
2023
|
|
2022
|
|
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
CASH
|
|
$
24,196
|
|
$
19,999
|
|
$
21,150
|
|
|
|
|
|
|
|
ACCOUNTS RECEIVABLE,
GROSS
|
|
216,617
|
|
231,963
|
|
173,013
|
ALLOWANCE FOR EXPECTED
CREDIT LOSSES
|
|
5,816
|
|
6,660
|
|
5,375
|
ACCOUNTS RECEIVABLE,
NET
|
|
210,801
|
|
225,303
|
|
167,638
|
|
|
|
|
|
|
|
INVENTORIES
|
|
522,039
|
|
534,421
|
|
528,715
|
UNRETURNED CUSTOMER
INVENTORY
|
|
20,626
|
|
22,221
|
|
19,695
|
OTHER CURRENT
ASSETS
|
|
26,192
|
|
17,471
|
|
25,241
|
|
|
|
|
|
|
|
TOTAL CURRENT
ASSETS
|
|
803,854
|
|
819,415
|
|
762,439
|
|
|
|
|
|
|
|
PROPERTY, PLANT AND
EQUIPMENT, NET
|
|
107,123
|
|
102,984
|
|
107,148
|
OPERATING LEASE
RIGHT-OF-USE ASSETS
|
|
74,291
|
|
42,116
|
|
49,838
|
GOODWILL
|
|
132,289
|
|
131,538
|
|
132,087
|
OTHER INTANGIBLES,
NET
|
|
98,389
|
|
104,344
|
|
100,504
|
DEFERRED INCOME
TAXES
|
|
33,893
|
|
35,964
|
|
33,658
|
INVESTMENT IN
UNCONSOLIDATED AFFILIATES
|
|
42,719
|
|
45,518
|
|
41,745
|
OTHER ASSETS
|
|
27,462
|
|
28,530
|
|
27,510
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
1,320,020
|
|
$
1,310,409
|
|
$
1,254,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT PORTION OF
REVOLVING CREDIT FACILITY
|
|
$
52,600
|
|
$
245,450
|
|
$
50,000
|
CURRENT PORTION OF TERM
LOAN AND OTHER DEBT
|
5,014
|
|
3,235
|
|
5,031
|
ACCOUNTS
PAYABLE
|
|
94,372
|
|
139,392
|
|
89,247
|
ACCRUED CUSTOMER
RETURNS
|
|
42,153
|
|
46,085
|
|
37,169
|
ACCRUED CORE
LIABILITY
|
|
21,319
|
|
23,513
|
|
22,952
|
ACCRUED
REBATES
|
|
39,657
|
|
42,606
|
|
37,381
|
PAYROLL AND
COMMISSIONS
|
|
24,268
|
|
31,972
|
|
31,361
|
SUNDRY PAYABLES AND
ACCRUED EXPENSES
|
|
42,041
|
|
45,875
|
|
49,990
|
|
|
|
|
|
|
|
TOTAL CURRENT
LIABILITIES
|
|
321,424
|
|
578,128
|
|
323,131
|
|
|
|
|
|
|
|
LONG-TERM
DEBT
|
|
215,487
|
|
-
|
|
184,589
|
NONCURRENT OPERATING
LEASE LIABILITY
|
|
65,319
|
|
32,281
|
|
40,709
|
ACCRUED ASBESTOS
LIABILITIES
|
|
60,820
|
|
51,909
|
|
63,305
|
OTHER
LIABILITIES
|
|
24,298
|
|
25,178
|
|
22,157
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
687,348
|
|
687,496
|
|
633,891
|
|
|
|
|
|
|
|
TOTAL SMP STOCKHOLDERS'
EQUITY
|
|
621,644
|
|
611,871
|
|
610,020
|
NONCONTROLLING
INTEREST
|
|
11,028
|
|
11,042
|
|
11,018
|
TOTAL
STOCKHOLDERS' EQUITY
|
|
632,672
|
|
622,913
|
|
621,038
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
1,320,020
|
|
$
1,310,409
|
|
$
1,254,929
|
STANDARD MOTOR
PRODUCTS, INC.
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
MARCH 31,
|
|
|
2023
|
|
|
2022
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
NET
EARNINGS
|
$
11,957
|
|
|
$
19,438
|
|
ADJUSTMENTS TO
RECONCILE NET EARNINGS TO NET CASH
|
|
|
|
|
|
USED IN OPERATING
ACTIVITIES:
|
|
|
|
|
|
DEPRECIATION AND
AMORTIZATION
|
7,082
|
|
|
6,952
|
|
OTHER
|
4,587
|
|
|
4,374
|
|
CHANGE IN ASSETS AND
LIABILITIES:
|
|
|
|
|
|
ACCOUNTS
RECEIVABLE
|
(42,617)
|
|
|
(44,706)
|
|
INVENTORY
|
6,195
|
|
|
(67,662)
|
|
ACCOUNTS
PAYABLE
|
4,809
|
|
|
1,942
|
|
PREPAID EXPENSES AND
OTHER CURRENT ASSETS
|
1,165
|
|
|
2,171
|
|
SUNDRY PAYABLES AND
ACCRUED EXPENSES
|
(10,656)
|
|
|
(21,226)
|
|
OTHER
|
(2,964)
|
|
|
(5,245)
|
|
NET CASH USED IN
OPERATING ACTIVITIES
|
(20,442)
|
|
|
(103,962)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
EXPENDITURES
|
(4,363)
|
|
|
(6,449)
|
|
OTHER INVESTING
ACTIVITIES
|
13
|
|
|
-
|
|
NET CASH USED IN
INVESTING ACTIVITIES
|
(4,350)
|
|
|
(6,449)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
NET CHANGE IN
DEBT
|
33,478
|
|
|
120,340
|
|
PURCHASE OF TREASURY
STOCK
|
-
|
|
|
(6,517)
|
|
DIVIDENDS
PAID
|
(6,261)
|
|
|
(5,935)
|
|
OTHER FINANCING
ACTIVITIES
|
125
|
|
|
444
|
|
NET CASH PROVIDED BY
FINANCING ACTIVITIES
|
27,342
|
|
|
108,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE
CHANGES ON CASH
|
496
|
|
|
323
|
|
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
|
3,046
|
|
|
(1,756)
|
|
CASH AND CASH
EQUIVALENTS at beginning of period
|
21,150
|
|
|
21,755
|
|
CASH AND CASH
EQUIVALENTS at end of period
|
$
24,196
|
|
|
$
19,999
|
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SOURCE Standard Motor Products, Inc.