UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 1, 2024

STANDARD MOTOR PRODUCTS, INC.
(Exact Name of Registrant as Specified in its Charter)

New York
001-04743
11-1362020
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(I.R.S. Employee Identification Number)

37-18 Northern Boulevard, Long Island City, New York 11101
(Address of Principal Executive Offices, including Zip Code)

Registrant’s Telephone Number, including Area Code:  718-392-0200

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $2.00 per share
SMP
New York Stock Exchange LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02.
Results of Operations and Financial Condition.

On August 1, 2024, Standard Motor Products, Inc. issued a press release announcing its financial results for the three months and six months ended June 30, 2024. A copy of such press release is furnished as Exhibit 99.1 hereto.

Such press release shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01.
Financial Statements and Exhibits.

 
(d)
Exhibits.


99.1
Press release dated August 1, 2024 announcing Standard Motor Products, Inc.’s financial results for the three months and six months ended June 30, 2024.




104
Cover Page Interactive Data File--the cover page XBRL tags are embedded within the Inline XBRL document.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


STANDARD MOTOR PRODUCTS, INC.




By:
/s/ Nathan R. Iles
 


Nathan R. Iles


Chief Financial Officer



Date: August 1, 2024



2

Exhibit Index
 
Exhibit No.

Description
 
 
 
 

Press release dated August 1, 2024 announcing Standard Motor Products, Inc.’s financial results for the three months and six months ended June 30, 2024.
 
 
104

Cover Page Interactive Data File--the cover page XBRL tags are embedded within the Inline XBRL document.


3


Exhibit 99.1


For Immediate Release
 

For more information, contact:

Anthony (Tony) Cristello

Standard Motor Products, Inc.

(972) 316-8107

tony.cristello@smpcorp.com

Standard Motor Products, Inc. Announces

Second Quarter 2024 Results and Quarterly Dividend

New York, NY, August 1, 2024......Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, reported today its consolidated financial results for the three and six months ended June 30, 2024.

Net sales for the second quarter of 2024 were $389.8 million, compared to consolidated net sales of $353.1 million during the comparable quarter in 2023. Earnings from continuing operations for the second quarter of 2024 were $18.0 million or $0.81 per diluted share, compared to $18.4 million or $0.83 per diluted share in the second 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 second quarter of 2024 were $21.7 million or $0.98 per diluted share, compared to $18.6 million or $0.84 per diluted share in the second quarter of 2023.


Consolidated net sales for the six months ended June 30, 2024, were $721.2 million, compared to consolidated net sales of $681.1 million during the comparable period in 2023.  Earnings from continuing operations for the six months ended June 30, 2024, were $27.8 million or $1.25 per diluted share, compared to $31.1 million or $1.40 per diluted share in the comparable period 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 six months ended June 30, 2024 and 2023 were $31.7 million or $1.42 per diluted share and $31.9 million or $1.44 per diluted share, respectively.
 
Mr. Eric Sills, Standard Motor Products’ Chairman and Chief Executive Officer stated, “We are pleased with our second quarter results as sales increased 10.4% versus last year’s second quarter, while year-to-date sales are up nearly 6% relative to 2023.  We experienced solid top line results in all segments, setting records across the board, most notably within Temperature Control.”

By segment, Vehicle Control sales improved 2.7% in the quarter, accelerating from the more modest growth seen in our first quarter.  Year-to-date sales are up 1.6%, and we are pleased with the trajectory.

Temperature Control sales increased 28.2% versus last year’s second quarter, representing an all-time quarterly sales record, as elevated heat persisted across much of the country.  Year-to-date we are up nearly 16%, and temperatures remain hot, which should be positive for the third quarter.

Our Engineered Solutions segment sales increased 6.1% in the quarter and 5.3% for the year, attributable to strong demand from our existing customers as well as new business wins. We continue to see positive results from our cross-selling efforts, and the pipeline of opportunities remains healthy.


Looking at profitability, our Adjusted EBITDA margin was 10.1% in the quarter vs. 10.0% last year. Excluding $1.3 million of start-up costs related to our new distribution center in Shawnee, KS, Adjusted EBITDA was 10.4% in the quarter.   During the quarter, our operating income was impacted by a roughly $1.0 million increase in customer factoring program expense over last year mainly due to higher sales volumes, although it appears we are finally starting to see a leveling off from the impact of elevated interest rates.

Mr. Sills commented, “While we are pleased with our sales results, we continue to work on our profitability, as cost pressures persist.  To address this, we chose to implement an early retirement program launched in the second quarter.  Benefits of this program will phase in over the next few quarters, and once fully realized, we anticipate achieving an estimated $10 million of annualized savings. We expect one-time severance costs of approximately $6 million related to this program, of which $2.6 million was incurred in the second quarter, and an additional $3.1 million is expected to be incurred in the second half of 2024 as people retire.”

During the quarter, we announced a definitive agreement to acquire AX V Nissens III APS (“Nissens”), a leading European manufacturer and distributor of aftermarket engine cooling and air conditioning products with a growing array of vehicle control technologies, for approximately $388 million (€360 million) in cash. Nissens has annual revenues of approximately $260 million with a mid-teens EBITDA margin rate.  The transaction is expected to be completed before the end of 2024, and is subject to certain closing conditions, including receipt of applicable antitrust and other regulatory approvals. We are extremely excited about this major step forward for our company. For more details, please see our July 10, 2024 press release and investor presentation related to the Nissens acquisition located on our website www.smpcorp.com.


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 September 3, 2024 to stockholders of record on August 15, 2024. Additionally, we purchased $7.8 million of common stock under our existing share repurchase authorization during the quarter, leaving our remaining authorization under the current program at $19.6 million.

Regarding our sales and profit expectations for the full year of 2024, and excluding any impact from the Nissens acquisition, we anticipate sales growth will be in the low- to mid-single digits, up from prior projections, and Adjusted EBITDA will be in a range of 9.0-9.5%, consistent with what we noted previously.  We expect to incur roughly $3-4 million of additional start-up costs in 2024 as compared to 2023 for our new distribution center in Shawnee, KS, related to increased rent as well as duplicate expenses as we transition away from our Edwardsville, KS distribution center.

In closing, Mr. Sills commented “As we look towards the second half of the year, we are encouraged with the demand seen so far across all our segments.  Aftermarket fundamentals remain positive, and our Engineered Solutions business is performing well. Lastly, we are excited about our planned acquisition of Nissens that expands our geographic presence, and provides a meaningful global growth platform for many years to come.  We want to thank all our employees for our current success and helping us achieve our goals for the future.”


Conference Call
Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Thursday, August 1, 2024.  This call will be webcast and can be accessed on the Investor Relations page of our website at www.smpcorp.com and clicking on the SMP 2Q 2024 Earnings Webcast link.  Investors may also listen to the call by dialing 800-343-4136 (domestic) or 203-518-9843 (international) and using conference ID SMP2Q2024.  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 800-938-2490 (domestic) or 402-220-9028 (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
   
SIX MONTHS ENDED
 
   
JUNE 30,
   
JUNE 30,
 
   
2024
   
2023
   
2024
   
2023
 
   
(Unaudited)
   
(Unaudited)
 
NET SALES
 
$
389,829
   
$
353,075
   
$
721,232
   
$
681,103
 
                                 
COST OF SALES
   
278,382
     
251,806
     
520,263
     
488,567
 
                                 
GROSS PROFIT
   
111,447
     
101,269
     
200,969
     
192,536
 
                                 
SELLING, GENERAL & ADMINISTRATIVE EXPENSES
   
83,885
     
73,843
     
158,618
     
143,476
 
RESTRUCTURING AND INTEGRATION EXPENSES
   
2,559
     
294
     
2,751
     
1,206
 
OTHER INCOME (EXPENSE), NET
   
(17
)
   
46
     
5
     
70
 
                                 
OPERATING INCOME
   
24,986
     
27,178
     
39,605
     
47,924
 
                                 
OTHER NON-OPERATING INCOME, NET
   
2,199
     
802
     
3,018
     
1,027
 
                                 
INTEREST EXPENSE
   
2,752
     
3,283
     
4,819
     
7,145
 
                                 
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
   
24,433
     
24,697
     
37,804
     
41,806
 
                                 
PROVISION FOR INCOME TAXES
   
6,109
     
6,289
     
9,451
     
10,661
 
                                 
EARNINGS FROM CONTINUING OPERATIONS
   
18,324
     
18,408
     
28,353
     
31,145
 
                                 
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES
   
(917
)
   
(9,221
)
   
(1,956
)
   
(10,001
)
                                 
NET EARNINGS
   
17,407
     
9,187
     
26,397
     
21,144
 
                                 
NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST
   
344
     
50
     
510
     
89
 
                                 
NET EARNINGS ATTRIBUTABLE TO SMP (a)
 
$
17,063
   
$
9,137
   
$
25,887
   
$
21,055
 
                                 
NET EARNINGS ATTRIBUTABLE TO SMP
                               
EARNINGS FROM CONTINUING OPERATIONS
 
$
17,980
   
$
18,358
   
$
27,843
   
$
31,056
 
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES
   
(917
)
   
(9,221
)
   
(1,956
)
   
(10,001
)
TOTAL
 
$
17,063
   
$
9,137
   
$
25,887
   
$
21,055
 
                                 
NET EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SMP
                               
BASIC EARNINGS FROM CONTINUING OPERATIONS
 
$
0.83
   
$
0.85
   
$
1.27
   
$
1.43
 
DISCONTINUED OPERATION
   
(0.05
)
   
(0.43
)
   
(0.09
)
   
(0.46
)
NET EARNINGS PER COMMON SHARE - BASIC
 
$
0.78
   
$
0.42
   
$
1.18
   
$
0.97
 
                                 
DILUTED EARNINGS  FROM CONTINUING OPERATIONS
 
$
0.81
   
$
0.83
   
$
1.25
   
$
1.40
 
DISCONTINUED OPERATION
   
(0.04
)
   
(0.42
)
   
(0.09
)
   
(0.45
)
NET EARNINGS  PER COMMON SHARE - DILUTED
 
$
0.77
   
$
0.41
   
$
1.16
   
$
0.95
 
                                 
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
   
21,767,526
     
21,689,067
     
21,845,678
     
21,649,562
 
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES
   
22,185,536
     
22,183,489
     
22,277,590
     
22,139,708
 

(a) “SMP” refers to Standard Motor Products, Inc. and subsidiaries.
 

STANDARD MOTOR PRODUCTS, INC.
Segment Revenues and Operating Profit
(In thousands)
   
THREE MONTHS ENDED
       
SIX MONTHS ENDED
     
   
JUNE 30,
       
JUNE 30,
     
   
2024
       
2023
       
2024
       
2023
     
   
(Unaudited)
       
(Unaudited)
     
Revenues
                                       
Engine Management (Ignition, Emissions and Fuel Delivery)
 
$
115,529
       
$
113,589
       
$
231,614
       
$
229,672
     
Electrical and Safety
   
57,128
         
52,867
         
109,535
         
104,671
     
Wire sets and other
   
16,084
         
17,333
         
33,116
         
34,023
     
Vehicle Control
   
188,741
         
183,789
         
374,265
         
368,366
     
                                                 
AC System Components
   
99,970
         
72,730
         
149,930
         
123,528
     
Other Thermal Components
   
24,511
         
24,344
         
46,159
         
45,952
     
Temperature Control
   
124,481
         
97,074
         
196,089
         
169,480
     
                                                 
Commercial Vehicle
   
23,483
         
20,225
         
46,391
         
40,457
     
Construction / Agriculture
   
9,473
         
11,138
         
19,549
         
22,830
     
Light Vehicle
   
24,686
         
23,981
         
46,489
         
47,000
     
All Other
   
18,965
         
16,868
         
38,449
         
32,970
     
Engineered Solutions
   
76,607
         
72,212
         
150,878
         
143,257
     
                                         
-
     
Revenues
 
$
389,829
       
$
353,075
       
$
721,232
       
$
681,103
     
                                                 
Gross Margin
                                               
Vehicle Control
 
$
59,969
    31.8
%
 
$
60,109
   
32.7
%
 
$
118,868
   
31.8
%
 
$
118,581
   
32.2
%
Temperature Control
   
36,609
   
29.4
%
   
26,512
   
27.3
%
 
 
56,298
   
28.7
%
 
 
45,667
   
26.9
%
Engineered Solutions
   
14,869
   
19.4
%    
14,648
   
20.3
%
 
 
25,803
   
17.1
%
 
 
28,288
   
19.7
%
All Other
   
-
           
-
           
-
           
-
       
Gross Margin
 
$
111,447
   
28.6
%  
$
101,269
   
28.7
%
 
$
200,969
   
27.9
%
 
$
192,536
   
28.3
%
                                                         
Selling, General & Administrative
                                                       
Vehicle Control
 
$
43,844
   
23.2
%  
$
40,720
   
22.2
%
 
$
87,102
   
23.3
%
 
$
81,556
   
22.1
%
Temperature Control
   
23,165
   
18.6
%    
20,584
   
21.2
%
 
 
40,765
   
20.8
%
 
 
37,112
   
21.9
%
Engineered Solutions
   
8,676
   
11.3
%    
8,481
   
11.7
%
 
 
17,367
   
11.5
%
 
 
16,390
   
11.4
%
All Other
   
5,789
           
4,058
           
10,973
           
8,418
       
Subtotal
 
$
81,474
   
20.9
%  
$
73,843
   
20.9
%
 
$
156,207
   
21.7
%
 
$
143,476
   
21.1
%
Acquisition Expenses
   
2,411
   
0.6
%    
-
   
0.0
%
 
 
2,411
   
0.3
%
 
 
-
   
0.0
%
Selling, General & Administrative
 
$
83,885
   
21.5
%  
$
73,843
   
20.9
%
 
$
158,618
   
22.0
%
 
$
143,476
   
21.1
%
                                                         
Operating Income
                                                       
Vehicle Control
 
$
16,125
   
8.5
%  
$
19,389
   
10.5
%
 
$
31,766
   
8.5
%
 
$
37,025
   
10.1
%
Temperature Control
   
13,444
   
10.8
%    
5,928
   
6.1
%
 
 
15,533
   
7.9
%
 
 
8,555
   
5.0
%
Engineered Solutions
   
6,193
   
8.1
%    
6,167
   
8.5
%
 
 
8,436
   
5.6
%
 
 
11,898
   
8.3
%
All Other
   
(5,789
)
         
(4,058
)
         
(10,973
)
         
(8,418
)
     
Subtotal
 
$
29,973
   
7.7
%  
$
27,426
   
7.8
%
 
$
44,762
   
6.2
%
 
$
49,060
   
7.2
%
Restructuring & Integration
   
(2,559
)
 
-0.7
%    
(294
)
 
-0.1
%
 
 
(2,751
)
 
-0.4
%
 
 
(1,206
)
 
-0.2
%
Acquisition Expenses
   
(2,411
)
 
-0.6
%    
-
   
0.0
%
 
 
(2,411
)
 
-0.3
%
 
 
-
   
0.0
%
Other Income (Expense), Net
   
(17
)
 
0.0
%    
46
   
0.0
%
 
 
5
   
0.0
%
 
 
70
   
0.0
%
Operating Income
 
$
24,986
   
6.4
%  
$
27,178
   
7.7
%
 
$
39,605
   
5.5
%
 
$
47,924
   
7.0
%


STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures
(In thousands, except per share amounts)

   
THREE MONTHS ENDED
   
SIX MONTHS ENDED
                   
   
JUNE 30,
   
JUNE 30,
                   
   
2024
   
2023
   
2024
   
2023
                   
   
(Unaudited)
   
(Unaudited)
                   
EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP
                                         
                                           
GAAP EARNINGS FROM CONTINUING OPERATIONS
 
$
17,980
   
$
18,358
   
$
27,843
   
$
31,056
                   
                                                   
RESTRUCTURING AND INTEGRATION EXPENSES
   
2,559
     
294
     
2,751
     
1,206
                   
ACQUISITION EXPENSES
   
2,411
     
-
     
2,411
     
-
                   
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS
   
(1,292
)
   
(77
)
   
(1,342
)
   
(314
)
                 
                                                   
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS
 
$
21,658
   
$
18,575
   
$
31,663
   
$
31,948
                   
                                                   
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP
                                                 
                                                   
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
 
$
0.81
   
$
0.83
   
$
1.25
   
$
1.40
                   
                                                   
RESTRUCTURING AND INTEGRATION EXPENSES
   
0.12
     
0.01
     
0.12
     
0.05
                   
ACQUISITION EXPENSES
   
0.11
     
-
     
0.11
     
-
                   
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS
   
(0.06
)
   
-
     
(0.06
)
   
(0.01
)
                 
                                                   
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
 
$
0.98
   
$
0.84
   
$
1.42
   
$
1.44
                   
                                                   
OPERATING INCOME
                                                 
                                                   
GAAP OPERATING INCOME
 
$
24,986
   
$
27,178
   
$
39,605
   
$
47,924
                   
                                                   
RESTRUCTURING AND INTEGRATION EXPENSES
   
2,559
     
294
     
2,751
     
1,206
                   
ACQUISITION EXPENSES
   
2,411
     
-
     
2,411
     
-
                   
OTHER (INCOME) EXPENSE, NET
   
17
     
(46
)
   
(5
)
   
(70
)
 
LAST TWELVE MONTHS ENDED
   
YEAR ENDED
 
                                   
JUNE 30,
   
DECEMBER 31,
 
NON-GAAP OPERATING INCOME
 
$
29,973
   
$
27,426
   
$
44,762
   
$
49,060
   
2024
   
2023
   
2023
 
                                   
(Unaudited)
         
EBITDA WITHOUT SPECIAL ITEMS
                                                       
                                                         
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
 
$
24,433
   
$
24,697
   
$
37,804
   
$
41,806
   
$
77,714
   
$
84,580
   
$
81,716
 
                                                         
DEPRECIATION AND AMORTIZATION
   
7,318
     
7,047
     
14,619
     
14,129
     
29,512
     
28,534
     
29,022
 
INTEREST EXPENSE
   
2,752
     
3,283
     
4,819
     
7,145
     
10,961
     
15,136
     
13,287
 
EBITDA
   
34,503
     
35,027
     
57,242
     
63,080
     
118,187
     
128,250
     
124,025
 
                                                         
RESTRUCTURING AND INTEGRATION EXPENSES
   
2,559
     
294
     
2,751
     
1,206
     
4,187
     
3,053
     
2,642
 
ACQUISITION EXPENSES
   
2,411
     
-
     
2,411
     
-
     
2,411
     
-
     
-
 
CUSTOMER BANKRUPTCY CHARGE
   
-
     
-
     
-
     
-
     
-
     
7,002
     
-
 
SPECIAL ITEMS
   
4,970
     
294
     
5,162
     
1,206
     
6,598
     
10,055
     
2,642
 
                                                         
EBITDA WITHOUT SPECIAL ITEMS
 
$
39,473
   
$
35,321
   
$
62,404
   
$
64,286
   
$
124,785
   
$
138,305
   
$
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 JUNE 30, 2024
 
   
Vehicle Control
   
Temperature
Control
   
Engineered
Solutions
   
All Other
    Consolidated  
   
(Unaudited)
 
OPERATING INCOME
                             
                               
GAAP OPERATING INCOME
 
$
15,116
   
$
13,197
   
$
5,812
   
$
(9,139
)
 
$
24,986
 
                                         
RESTRUCTURING AND INTEGRATION EXPENSES
   
1,009
     
247
     
364
     
939
     
2,559
 
ACQUISITION EXPENSES
   
-
     
-
     
-
     
2,411
     
2,411
 
OTHER EXPENSE, NET
   
-
     
-
     
17
     
-
     
17
 
                                         
NON-GAAP OPERATING INCOME
 
$
16,125
   
$
13,444
   
$
6,193
   
$
(5,789
)
 
$
29,973
 
                                         
EBITDA WITHOUT SPECIAL ITEMS
                                       
                                         
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
 
$
13,067
   
$
13,978
   
$
6,529
   
$
(9,141
)
 
$
24,433
 
                                         
DEPRECIATION AND AMORTIZATION
   
3,606
     
780
     
2,463
     
469
     
7,318
 
INTEREST EXPENSE
   
1,899
     
726
     
706
     
(579
)
   
2,752
 
EBITDA
   
18,572
     
15,484
     
9,698
     
(9,251
)
   
34,503
 
                                         
RESTRUCTURING AND INTEGRATION EXPENSES
   
1,009
     
247
     
364
     
939
     
2,559
 
ACQUISITION EXPENSES
   
-
     
-
     
-
     
2,411
     
2,411
 
SPECIAL ITEMS
   
1,009
     
247
     
364
     
3,350
     
4,970
 
                                         
EBITDA WITHOUT SPECIAL ITEMS
 
$
19,581
   
$
15,731
   
$
10,062
   
$
(5,901
)
 
$
39,473
 
% of Net Sales
   
10.4
%
   
12.6
%
   
13.1
%
           
10.1
%

(In thousands)
  THREE MONTHS ENDED JUNE 30, 2023  
   
Vehicle Control


Temperature
Control


Engineered
Solutions


All Other

Consolidated
 
   
(Unaudited)
 
OPERATING INCOME
 












 
                               
GAAP OPERATING INCOME
 
$
19,273
   
$
5,800
   
$
6,163
   
$
(4,058
)
 
$
27,178
 
                                         
RESTRUCTURING AND INTEGRATION EXPENSES
   
154
     
128
     
12
     
-
     
294
 
OTHER INCOME, NET
   
(38
)
   
-
     
(8
)
   
-
     
(46
)
                                         
NON-GAAP OPERATING INCOME
 
$
19,389
   
$
5,928
   
$
6,167
   
$
(4,058
)
 
$
27,426
 
                                         
EBITDA WITHOUT SPECIAL ITEMS
                                       
                                         
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
 
$
17,235
   
$
5,259
   
$
6,247
   
$
(4,044
)
 
$
24,697
 
                                         
DEPRECIATION AND AMORTIZATION
   
3,373
     
768
     
2,486
     
420
     
7,047
 
INTEREST EXPENSE
   
2,304
     
842
     
637
     
(500
)
   
3,283
 
EBITDA
   
22,912
     
6,869
     
9,370
     
(4,124
)
   
35,027
 
                                         
RESTRUCTURING AND INTEGRATION EXPENSES
   
154
     
128
     
12
     
-
     
294
 
SPECIAL ITEMS
   
154
     
128
     
12
     
-
     
294
 
                                         
EBITDA WITHOUT SPECIAL ITEMS
 
$
23,066
   
$
6,997
   
$
9,382
   
$
(4,124
)
 
$
35,321
 
% of Net Sales
   
12.6
%
   
7.2
%
   
13.0
%
           
10.0
%

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.
Reconciliation of GAAP and Non-GAAP Measures by Segments

(In thousands)
 
SIX MONTHS ENDED JUNE 30, 2024
 
   
Vehicle Control
   
Temperature
Control


Engineered
Solutions


All Other


Consolidated
 
   
(Unaudited)
 
OPERATING INCOME
                             
                               
GAAP OPERATING INCOME
 
$
30,656
   
$
15,228
   
$
8,044
   
$