NEW
YORK, May 1, 2024 /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,
2024.
Net sales for the first quarter of 2024 were $331.4 million, compared to consolidated net
sales of $328.0 million during the
comparable quarter in 2023. Earnings from continuing operations for
the first quarter of 2024 were $9.9
million or $0.44 per diluted
share, compared to $12.7 million
or $0.57 per diluted share in the
first quarter of 2023. 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 2024 were $10.0 million or
$0.45 per diluted share, compared to
$13.4 million or $0.61 per diluted share in the first quarter of
2023.
Mr. Eric Sills, Standard Motor
Products' Chief Executive Officer and President stated, "Our first
quarter experienced mixed results. We are pleased with our
record-setting top line performance as sales increased 1% against
last year's first quarter, rebounding from the sluggish sales we
saw at the end of 2023. However, as expected, we continued to
experience headwinds across various cost inputs, causing a drag on
our profitability."
By segment, Vehicle Control sales were up 0.5% against a
difficult comparison of over 4% growth last year, as customers
returned to more normalized ordering patterns after a slowdown in
the fourth quarter of last year.
Turning to Temperature Control, sales declined 1.1% versus the
same quarter last year. However, this is mainly due to the
timing of pre-season orders which can always shift between periods.
Ultimately, as a seasonal business, our annual results will be
determined by the degree and duration of hot weather the country
experiences, and therefore early results are not indicative of the
full year.
Engineered Solutions sales increased 4.5% over last year's first
quarter, setting a single quarter record for this segment, as our
traction with new and existing customers continues to build.
We remain encouraged with our progress in winning new business and
the overall opportunity we see in terms of long-term sales
growth.
Looking at profitability, our Adjusted EBITDA margin was 6.9% in
the quarter vs. 8.8% last year. Excluding $1.1 million of start-up costs related to our new
distribution center in Shawnee,
KS, Adjusted EBITDA was 7.2% in the quarter. Within the
combined Aftermarket segments, Adjusted EBITDA was helped by a 40
basis point gross margin improvement, but was offset by
$1.0 million of higher factoring
costs, as well as inflation in other SG&A expenses. Adjusted
EBITDA in Engineered Solutions was down primarily due to a lower
gross margin in the quarter, which was impacted by inflationary
cost increases and some unfavorable changes in mix of
sales.
Our sales and profit expectations for the full year of 2024
remain unchanged. We anticipate sales growth will be flat to low
single digits, and Adjusted EBITDA will be in a range of 9.0% to
9.5%. As previously discussed, we expect to incur roughly
$5 million of added costs in 2024 as
compared to 2023 for our new distribution center in Shawnee, KS, related to increased rent as well
as redundancy expenses as we transition away from our Edwardsville, KS distribution center.
Additionally, we anticipate approximately $25 million in capital expenditures as we outfit
the new facility. We are pleased to have successfully begun
the first phase of shipping from our new DC, and are optimistic
about the benefits it will bring once fully implemented. It will
provide SMP with expanded capacity for future growth, mitigate risk
through a multi-point distribution strategy, and improve product
delivery times in certain geographies.
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 3, 2024 to stockholders of record on
May 15, 2024. Additionally, we
purchased $2.6 million of common
stock under our existing $30 million
share repurchase authorization during the quarter. From the
end of the first quarter through April 29,
2024, we purchased an additional $3.5
million of common stock, leaving our remaining authorization
under the current program at $23.9
million.
In closing, Mr. Sills commented, "As we look to the long term,
we remain optimistic about both of our end markets. The fundamental
trends in the aftermarket are favorable – a growing and aging car
parc, a return to historical miles driven, and the high cost of new
vehicles should lead to ongoing demand for parts, especially in
non-discretionary categories such as ours. Our Engineered Solutions
business continues to grow globally as we become known as a capable
high-quality supplier, and opportunities continue to present
themselves. And while near-term cost pressures persist, we are
excited for 2024 and beyond, and we thank our employees that make
all of this possible."
Conference Call
Standard Motor Products, Inc. will hold a conference call at
11:00 AM, Eastern Time, on
Wednesday, May 1, 2024. 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
2024 Earnings Webcast link. Investors may also listen to the
call by dialing 800-267-6316 (domestic) or 203-518-9783
(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 888-215-1535 (domestic) or 402-220-4940 (international).
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,
|
|
|
|
2024
|
|
|
2023
|
|
|
|
(Unaudited)
|
|
NET SALES
|
|
$
331,403
|
|
|
$
328,028
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
241,881
|
|
|
236,761
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
89,522
|
|
|
91,267
|
|
|
|
|
|
|
|
|
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES
|
|
74,733
|
|
|
69,633
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
|
192
|
|
|
912
|
|
OTHER INCOME,
NET
|
|
22
|
|
|
24
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
14,619
|
|
|
20,746
|
|
|
|
|
|
|
|
|
OTHER NON-OPERATING
INCOME, NET
|
|
819
|
|
|
225
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
2,067
|
|
|
3,862
|
|
|
|
|
|
|
|
|
EARNINGS FROM
CONTINUING OPERATIONS BEFORE TAXES
|
|
13,371
|
|
|
17,109
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
|
3,342
|
|
|
4,372
|
|
|
|
|
|
|
|
|
EARNINGS FROM
CONTINUING OPERATIONS
|
|
10,029
|
|
|
12,737
|
|
|
|
|
|
|
|
|
LOSS FROM DISCONTINUED
OPERATION, NET OF INCOME TAXES
|
|
(1,039)
|
|
|
(780)
|
|
|
|
|
|
|
|
|
NET EARNINGS
|
|
8,990
|
|
|
11,957
|
|
|
|
|
|
|
|
|
NET EARNINGS
ATTRIBUTABLE TO NONCONTROLLING INTEREST
|
|
166
|
|
|
39
|
|
|
|
|
|
|
|
|
NET EARNINGS
ATTRIBUTABLE TO SMP (a)
|
|
$
8,824
|
|
|
$
11,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS ATTRIBUTABLE TO SMP
|
|
|
|
|
|
|
EARNINGS FROM
CONTINUING OPERATIONS
|
|
$
9,863
|
|
|
$
12,698
|
|
LOSS FROM DISCONTINUED
OPERATION, NET OF INCOME TAXES
|
|
(1,039)
|
|
|
(780)
|
|
TOTAL
|
|
$
8,824
|
|
|
$
11,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS PER COMMON SHARE ATTRIBUTABLE TO
SMP
|
|
|
|
|
|
|
BASIC
EARNINGS FROM CONTINUING OPERATIONS
|
|
$
0.45
|
|
|
$
0.59
|
|
DISCONTINUED OPERATION
|
|
(0.05)
|
|
|
(0.04)
|
|
NET
EARNINGS PER COMMON SHARE - BASIC
|
|
$
0.40
|
|
|
$
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED
EARNINGS FROM CONTINUING OPERATIONS
|
|
$
0.44
|
|
|
$
0.57
|
|
DISCONTINUED OPERATION
|
|
(0.05)
|
|
|
(0.03)
|
|
NET
EARNINGS PER COMMON SHARE - DILUTED
|
|
$
0.39
|
|
|
$
0.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
|
|
21,923,830
|
|
|
21,609,618
|
|
WEIGHTED AVERAGE NUMBER
OF COMMON AND DILUTIVE SHARES
|
|
22,372,543
|
|
|
22,097,750
|
|
|
|
|
|
|
|
|
(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,
|
|
|
|
|
|
|
2024
|
|
|
2023
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Engine Management
(Ignition, Emissions and
|
|
|
|
|
|
|
|
|
|
Fuel
Delivery)
|
|
$
116,085
|
|
|
$
116,083
|
|
|
|
|
Electrical and
Safety
|
|
52,407
|
|
|
51,804
|
|
|
|
|
Wire sets and
other
|
|
17,032
|
|
|
16,690
|
|
|
|
|
Vehicle
Control
|
|
185,524
|
|
|
184,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AC System
Components
|
|
49,960
|
|
|
50,798
|
|
|
|
|
Other Thermal
Components
|
|
21,648
|
|
|
21,608
|
|
|
|
|
Temperature Control
|
|
71,608
|
|
|
72,406
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Vehicle
|
|
22,908
|
|
|
20,232
|
|
|
|
|
Construction /
Agriculture
|
|
10,076
|
|
|
11,692
|
|
|
|
|
Light
Vehicle
|
|
21,803
|
|
|
23,019
|
|
|
|
|
All Other
|
|
19,484
|
|
|
16,102
|
|
|
|
|
Engineered Solutions
|
|
74,271
|
|
|
71,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
331,403
|
|
|
$
328,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
|
Vehicle
Control
|
|
$
58,899
|
31.7 %
|
|
$
58,472
|
31.7 %
|
|
|
|
Temperature
Control
|
|
19,689
|
27.5 %
|
|
19,155
|
26.5 %
|
|
|
|
Engineered
Solutions
|
|
10,934
|
14.7 %
|
|
13,640
|
19.2 %
|
|
|
|
All Other
|
|
-
|
|
|
-
|
|
|
|
|
Gross
Margin
|
|
$
89,522
|
27.0 %
|
|
$
91,267
|
27.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General &
Administrative
|
|
|
|
|
|
|
|
|
|
Vehicle
Control
|
|
$
43,258
|
23.3 %
|
|
$
40,836
|
22.1 %
|
|
|
|
Temperature
Control
|
|
17,600
|
24.6 %
|
|
16,528
|
22.8 %
|
|
|
|
Engineered
Solutions
|
|
8,691
|
11.7 %
|
|
7,909
|
11.1 %
|
|
|
|
All Other
|
|
5,184
|
|
|
4,360
|
|
|
|
|
Selling, General & Administrative
|
|
$
74,733
|
22.6 %
|
|
$
69,633
|
21.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
|
|
|
|
|
Vehicle
Control
|
|
$
15,641
|
8.4 %
|
|
$
17,636
|
9.6 %
|
|
|
|
Temperature
Control
|
|
2,089
|
2.9 %
|
|
2,627
|
3.6 %
|
|
|
|
Engineered
Solutions
|
|
2,243
|
3.0 %
|
|
5,731
|
8.1 %
|
|
|
|
All Other
|
|
(5,184)
|
|
|
(4,360)
|
|
|
|
|
Subtotal
|
|
$
14,789
|
4.5 %
|
|
$
21,634
|
6.6 %
|
|
|
|
Restructuring &
Integration
|
|
(192)
|
-0.1 %
|
|
(912)
|
-0.3 %
|
|
|
|
Other Income,
Net
|
|
22
|
0.0 %
|
|
24
|
0.0 %
|
|
|
|
Operating Income
|
|
$
14,619
|
4.4 %
|
|
$
20,746
|
6.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STANDARD MOTOR
PRODUCTS, INC
|
Reconciliation of
GAAP and Non-GAAP Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
|
|
|
|
|
MARCH
31,
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE
TO SMP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM
CONTINUING OPERATIONS
|
|
$
9,863
|
|
$
12,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
|
192
|
|
912
|
|
|
|
|
|
|
INCOME TAX EFFECT
RELATED TO RECONCILING ITEMS
|
|
(50)
|
|
(237)
|
|
|
|
|
|
|
NON-GAAP EARNINGS FROM
CONTINUING OPERATIONS
|
|
$
10,005
|
|
$
13,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER SHARE FROM CONTINUING
OPERATIONS ATTRIBUTABLE TO SMP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP DILUTED EARNINGS
PER SHARE FROM CONTINUING OPERATIONS
|
|
$
0.44
|
|
$
0.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
|
0.01
|
|
0.04
|
|
|
|
|
|
|
INCOME TAX EFFECT
RELATED TO RECONCILING ITEMS
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP DILUTED
EARNINGS PER SHARE FROM CONTINUING OPERATIONS
|
|
$
0.45
|
|
$
0.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING
INCOME
|
|
$
14,619
|
|
$
20,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
|
192
|
|
912
|
|
|
|
|
|
|
OTHER INCOME,
NET
|
|
(22)
|
|
(24)
|
|
LAST TWELVE MONTHS
ENDED
|
|
YEAR
ENDED
|
|
|
|
|
|
|
MARCH
31,
|
|
DECEMBER
31,
|
NON-GAAP OPERATING
INCOME
|
|
$
14,789
|
|
$
21,634
|
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
|
|
(Unaudited)
|
|
|
EBITDA WITHOUT SPECIAL ITEMS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM
CONTINUING OPERATIONS BEFORE TAXES
|
|
$
13,371
|
|
$
17,109
|
|
$
77,978
|
|
$
87,882
|
|
$
81,716
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION AND
AMORTIZATION
|
|
7,301
|
|
7,082
|
|
29,241
|
|
28,428
|
|
29,022
|
INTEREST
EXPENSE
|
|
2,067
|
|
3,862
|
|
11,492
|
|
13,674
|
|
13,287
|
EBITDA
|
|
22,739
|
|
28,053
|
|
118,711
|
|
129,984
|
|
124,025
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
|
192
|
|
912
|
|
1,922
|
|
2,762
|
|
2,642
|
CUSTOMER BANKRUPTCY
CHARGE
|
|
-
|
|
-
|
|
-
|
|
7,002
|
|
-
|
SPECIAL ITEMS
|
|
192
|
|
912
|
|
1,922
|
|
9,764
|
|
2,642
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL
ITEMS
|
|
$
22,931
|
|
$
28,965
|
|
$
120,633
|
|
$
139,748
|
|
$
126,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2024
|
|
|
|
Vehicle
Control
|
|
Temperature
Control
|
|
Engineered
Solutions
|
|
All Other
|
|
Consolidated
|
|
|
|
(Unaudited)
|
|
OPERATING INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING
INCOME
|
|
$
15,540
|
|
$
2,031
|
0
|
$
2,232
|
0
|
$
(5,184)
|
|
$
14,619
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
|
101
|
|
58
|
|
33
|
|
-
|
|
192
|
|
OTHER INCOME,
NET
|
|
-
|
|
-
|
|
(22)
|
|
-
|
|
(22)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP OPERATING
INCOME
|
|
$
15,641
|
|
$
2,089
|
|
$
2,243
|
|
$
(5,184)
|
|
$
14,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM
CONTINUING OPERATIONS BEFORE TAXES
|
|
$
14,315
|
|
$
1,888
|
|
$
2,346
|
|
$
(5,178)
|
|
$
13,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION AND
AMORTIZATION
|
|
3,525
|
|
898
|
|
2,469
|
|
409
|
|
7,301
|
|
INTEREST
EXPENSE
|
|
1,427
|
|
531
|
|
664
|
|
(555)
|
|
2,067
|
|
EBITDA
|
|
19,267
|
|
3,317
|
|
5,479
|
|
(5,324)
|
|
22,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND
INTEGRATION EXPENSES
|
|
101
|
|
58
|
0
|
33
|
0
|
-
|
|
192
|
|
SPECIAL ITEMS
|
|
101
|
|
58
|
|
33
|
|
-
|
|
192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL
ITEMS
|
|
$
19,368
|
|
$
3,375
|
|
$
5,512
|
|
$
(5,324)
|
|
$
22,931
|
|
% of Net
Sales
|
|
10.4 %
|
|
4.7 %
|
|
7.4 %
|
|
|
|
6.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS
|
|
$
27,113
|
|
$
24,196
|
|
$
32,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCOUNTS RECEIVABLE,
GROSS
|
|
212,224
|
|
216,617
|
|
168,327
|
|
|
|
|
|
|
ALLOWANCE FOR EXPECTED
CREDIT LOSSES
|
|
8,284
|
|
5,816
|
|
8,045
|
|
|
|
|
|
|
ACCOUNTS RECEIVABLE,
NET
|
|
203,940
|
|
210,801
|
|
160,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVENTORIES
|
|
520,702
|
|
522,039
|
|
507,075
|
|
|
|
|
|
|
UNRETURNED CUSTOMER
INVENTORY
|
|
18,007
|
|
20,626
|
|
18,240
|
|
|
|
|
|
|
OTHER CURRENT
ASSETS
|
|
26,674
|
|
26,192
|
|
26,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT
ASSETS
|
|
796,436
|
|
803,854
|
|
744,223
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY, PLANT AND
EQUIPMENT, NET
|
|
124,822
|
|
107,123
|
|
121,872
|
|
|
|
|
|
|
OPERATING LEASE
RIGHT-OF-USE ASSETS
|
|
102,060
|
|
74,291
|
|
100,065
|
|
|
|
|
|
|
GOODWILL
|
|
134,624
|
|
132,289
|
|
134,729
|
|
|
|
|
|
|
OTHER INTANGIBLES,
NET
|
|
90,000
|
|
98,389
|
|
92,308
|
|
|
|
|
|
|
DEFERRED INCOME
TAXES
|
|
40,241
|
|
33,893
|
|
40,533
|
|
|
|
|
|
|
INVESTMENT IN
UNCONSOLIDATED AFFILIATES
|
|
24,751
|
|
42,719
|
|
24,050
|
|
|
|
|
|
|
OTHER ASSETS
|
|
38,627
|
|
27,462
|
|
35,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$ 1,351,561
|
|
$ 1,320,020
|
|
$ 1,293,047
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT PORTION OF
REVOLVING CREDIT FACILITY
|
|
$
-
|
|
$
52,600
|
|
$
-
|
|
|
|
|
|
|
CURRENT PORTION OF TERM
LOAN AND OTHER DEBT
|
|
5,030
|
|
5,014
|
|
5,029
|
|
|
|
|
|
|
ACCOUNTS
PAYABLE
|
|
98,293
|
|
94,372
|
|
107,455
|
|
|
|
|
|
|
ACCRUED CUSTOMER
RETURNS
|
|
47,220
|
|
42,153
|
|
38,238
|
|
|
|
|
|
|
ACCRUED CORE
LIABILITY
|
|
17,438
|
|
21,319
|
|
18,399
|
|
|
|
|
|
|
ACCRUED
REBATES
|
|
45,191
|
|
39,657
|
|
42,278
|
|
|
|
|
|
|
PAYROLL AND
COMMISSIONS
|
|
27,326
|
|
24,268
|
|
29,561
|
|
|
|
|
|
|
SUNDRY PAYABLES AND
ACCRUED EXPENSES
|
|
58,714
|
|
42,041
|
|
63,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT
LIABILITIES
|
|
299,212
|
|
321,424
|
|
304,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM
DEBT
|
|
209,872
|
|
215,487
|
|
151,182
|
|
|
|
|
|
|
NONCURRENT OPERATING
LEASE LIABILITY
|
|
90,667
|
|
65,319
|
|
88,974
|
|
|
|
|
|
|
ACCRUED ASBESTOS
LIABILITIES
|
|
68,985
|
|
60,820
|
|
72,013
|
|
|
|
|
|
|
OTHER
LIABILITIES
|
|
27,704
|
|
24,298
|
|
25,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
696,440
|
|
687,348
|
|
642,174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL SMP STOCKHOLDERS'
EQUITY
|
|
639,150
|
|
621,644
|
|
635,064
|
|
|
|
|
|
|
NONCONTROLLING
INTEREST
|
|
15,971
|
|
11,028
|
|
15,809
|
|
|
|
|
|
|
TOTAL
STOCKHOLDERS' EQUITY
|
|
655,121
|
|
632,672
|
|
650,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$ 1,351,561
|
|
$ 1,320,020
|
|
$ 1,293,047
|
|
|
|
|
|
|
STANDARD MOTOR
PRODUCTS, INC
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
|
|
|
MARCH 31,
|
|
|
|
|
|
|
2024
|
|
|
2023
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS
|
$
8,990
|
|
|
$
11,957
|
|
|
|
|
|
ADJUSTMENTS TO
RECONCILE NET EARNINGS TO NET CASH
|
|
|
|
|
|
|
|
|
|
USED IN OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
DEPRECIATION AND
AMORTIZATION
|
7,301
|
|
|
7,082
|
|
|
|
|
|
OTHER
|
3,511
|
|
|
4,587
|
|
|
|
|
|
CHANGE IN ASSETS AND
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
ACCOUNTS
RECEIVABLE
|
(43,978)
|
|
|
(42,617)
|
|
|
|
|
|
INVENTORY
|
(14,670)
|
|
|
6,195
|
|
|
|
|
|
ACCOUNTS
PAYABLE
|
(9,274)
|
|
|
4,809
|
|
|
|
|
|
PREPAID EXPENSES AND
OTHER CURRENT ASSETS
|
1,649
|
|
|
1,165
|
|
|
|
|
|
SUNDRY PAYABLES AND
ACCRUED EXPENSES
|
3,988
|
|
|
(10,656)
|
|
|
|
|
|
OTHER
|
(3,233)
|
|
|
(2,964)
|
|
|
|
|
|
NET CASH USED IN
OPERATING ACTIVITIES
|
(45,716)
|
|
|
(20,442)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
EXPENDITURES
|
(10,086)
|
|
|
(4,363)
|
|
|
|
|
|
OTHER INVESTING
ACTIVITIES
|
15
|
|
|
13
|
|
|
|
|
|
NET CASH USED IN
INVESTING ACTIVITIES
|
(10,071)
|
|
|
(4,350)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET CHANGE IN
DEBT
|
58,692
|
|
|
33,478
|
|
|
|
|
|
PURCHASE OF TREASURY
STOCK
|
(2,235)
|
|
|
-
|
|
|
|
|
|
DIVIDENDS
PAID
|
(6,392)
|
|
|
(6,261)
|
|
|
|
|
|
OTHER FINANCING
ACTIVITIES
|
315
|
|
|
125
|
|
|
|
|
|
NET CASH PROVIDED BY
FINANCING ACTIVITIES
|
50,380
|
|
|
27,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE
CHANGES ON CASH
|
(6)
|
|
|
496
|
|
|
|
|
|
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
|
(5,413)
|
|
|
3,046
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS at beginning of period
|
32,526
|
|
|
21,150
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS at end of period
|
$
27,113
|
|
|
$
24,196
|
|
|
|
|
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SOURCE Standard Motor Products, Inc.