8-K
STANDARD MOTOR PRODUCTS, INC. (SMP)
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): October 30, 2024
STANDARD MOTOR PRODUCTS, INC.
(Exact Name of Registrant as Specified in its Charter)
| New York | 001-04743 | 11-1362020 |
|---|---|---|
| (State or Other<br><br>Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employee<br><br>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:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).
o 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 o
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. o
Item 2.02. Results of Operations and Financial Condition.
On October 30, 2024, Standard Motor Products, Inc. (the “Company”) issued a press release announcing its financial results for the three months and nine months ended September 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 October 30, 2024 announcing Standard Motor Products, Inc.’s financial results for the three months and nine months ended September 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: October 30, 2024
Exhibit Index
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release dated October 30, 2024 announcing Standard Motor Products, Inc.’s financial results for the three months and nine months ended September 30, 2024. |
| 104 | Cover Page Interactive Data File--the cover page XBRL tags are embedded within the Inline XBRL document. |
3
Document
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
Third Quarter 2024 Results and Quarterly Dividend
•Net Sales of $399.3M, up 3.3%, with all three operating segments showing increases
•Adjusted diluted earnings per share of $1.28, up 15%
•Adjusted EBITDA up 80 basis points to 12.2%
•Nissens Automotive acquisition expected to close in near future
•Full year guidance remains unchanged
New York, NY, October 30, 2024......Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, reported today its consolidated financial results for the three and nine months ended September 30, 2024.
Net sales for the third quarter of 2024 were $399.3 million, compared to consolidated net sales of $386.4 million during the comparable quarter in 2023. Earnings from continuing operations for the third quarter of 2024 were $26.6 million or $1.20 per diluted share, compared to $24.9 million or
$1.12 per diluted share in the third 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 third quarter of 2024 were $28.3 million or $1.28 per diluted share, compared to $24.7 million or $1.11 per diluted share in the third quarter of 2023.
Consolidated net sales for the nine months ended September 30, 2024, were $1.12 billion, compared to consolidated net sales of $1.07 billion during the comparable period in 2023. Earnings from continuing operations for the nine months ended September 30, 2024, were $54.4 million or $2.45 per diluted share, compared to $55.9 million or $2.52 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 nine months ended September 30, 2024 and 2023 were $59.9 million or $2.70 per diluted share and $56.6 million or $2.55 per diluted share, respectively.
Mr. Eric Sills, Standard Motor Products’ Chairman and Chief Executive Officer stated, “We are very pleased with our third quarter results, both in our top line growth as well as our earnings performance. Overall, sales increased 3.3% versus last year’s third quarter, while adjusted diluted earnings per share were up 15%. Year-to-date sales are up 5.0% compared to 2023, with adjusted diluted EPS up almost 6%. Sales for all three operating segments are ahead of last year both for the quarter and the year.”
By segment, Vehicle Control sales increased 5.2% in the quarter against an easy comparison in 2023. Sales in the segment are up 2.8% on a year-to-date basis as customer demand remains positive, indicating general market strength as our trading partners make ongoing investments to their assortments in our products.
Strong Temperature Control demand continued as sales grew 1.9% in the quarter against last year’s record results. The segment has performed well year-to-date with sales up nearly 10% over last year, as the selling season started early this year and remained strong throughout the summer.
Our Engineered Solutions segment continues to perform well, as sales increased nearly 1% in the quarter against a very difficult comparison to last year’s quarterly increase of over 8%, and are up 3.8% year-to-date. Modest softening in some end markets is being more than offset by the ramp up of recent wins, and while we expect ongoing market headwinds related to certain customers’ production schedules, we remain quite bullish as we see ongoing cross-selling opportunities and strengthening customer relationships.
Looking at profitability, Adjusted EBITDA improved from the third quarter last year, up 80 basis points to 12.2%. Margin improvement resulted from leverage gained on the solid sales performance, as well as from various cost containment actions to offset inflationary pressures, including the benefit from our previously disclosed early retirement program. We remain focused on our cost savings initiatives and continue to look at ways to drive margin improvement going forward.
From a cash flow perspective, we were pleased with the impact of our initiatives on managing both our inventory and borrowing levels. At quarter-end, our inventory was $503.0 million, down from $507.1 million at year-end, while our total debt at quarter-end stood at $142.8 million down $13.4 million from year-end.
With respect to our previously announced acquisition of Nissens Automotive in Europe, we have received final regulatory approvals and would expect to close on the transaction in the very near future. We are very excited about this major step forward for SMP, and look forward to working closely with the talented Nissens team to create an aftermarket leader in North America and Europe across our key product categories.
Regarding our sales and profit expectations for the full year of 2024, we anticipate sales growth will be in the low- to mid-single digits, and Adjusted EBITDA will be in a range of 9.0-9.5%, consistent with what we noted previously, and excludes any potential impact from the acquisition of Nissens Automotive. This outlook considers expenses related to customer factoring programs that will be roughly $48-$50 million at current implied rates, as well as the impact of startup costs and duplicate overhead expense associated with the new distribution center in Shawnee, KS, discussed in prior quarters.
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 December 2, 2024 to stockholders of record on November 15, 2024.
In closing, Mr. Sills commented, “Looking ahead, while there is always a degree of uncertainty across a variety of external factors, we are excited about where we are headed. North American aftermarket fundamentals remain strong, we are hitting our stride in our Engineered Solutions business, our new distribution center is coming on line, and we are soon to have Nissens on-
board with all the opportunities that it will bring. 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 Wednesday October 30, 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 3Q 2024 Earnings Webcast link. Investors may also listen to the call by dialing 800-343-4136 (domestic) or 203-518-9843 (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 800-374-0328 (domestic) or 402-220-0663 (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 | NINE MONTHS ENDED | |||||||||||
| SEPTEMBER 30, | SEPTEMBER 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| NET SALES | $ | 399,265 | $ | 386,413 | $ | 1,120,497 | $ | 1,067,516 | ||||
| COST OF SALES | 277,899 | 271,653 | 798,162 | 760,220 | ||||||||
| GROSS PROFIT | 121,366 | 114,760 | 322,335 | 307,296 | ||||||||
| SELLING, GENERAL & ADMINISTRATIVE EXPENSES | 81,204 | 79,781 | 239,822 | 223,257 | ||||||||
| RESTRUCTURING AND INTEGRATION EXPENSES | 3,023 | 177 | 5,774 | 1,383 | ||||||||
| OTHER INCOME, NET | — | 4 | 5 | 74 | ||||||||
| OPERATING INCOME | 37,139 | 34,806 | 76,744 | 82,730 | ||||||||
| OTHER NON-OPERATING INCOME, NET | 2,129 | 1,732 | 5,147 | 2,759 | ||||||||
| INTEREST EXPENSE | 3,145 | 3,621 | 7,964 | 10,766 | ||||||||
| EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES | 36,123 | 32,917 | 73,927 | 74,723 | ||||||||
| PROVISION FOR INCOME TAXES | 9,267 | 7,995 | 18,718 | 18,656 | ||||||||
| EARNINGS FROM CONTINUING OPERATIONS | 26,856 | 24,922 | 55,209 | 56,067 | ||||||||
| LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES | (22,771) | (18,200) | (24,727) | (28,201) | ||||||||
| NET EARNINGS | 4,085 | 6,722 | 30,482 | 27,866 | ||||||||
| NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST | 275 | 63 | 785 | 152 | ||||||||
| NET EARNINGS ATTRIBUTABLE TO SMP (a) | $ | 3,810 | $ | 6,659 | $ | 29,697 | $ | 27,714 | ||||
| NET EARNINGS ATTRIBUTABLE TO SMP | ||||||||||||
| EARNINGS FROM CONTINUING OPERATIONS | $ | 26,581 | $ | 24,859 | $ | 54,424 | $ | 55,915 | ||||
| LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES | (22,771) | (18,200) | (24,727) | (28,201) | ||||||||
| TOTAL | $ | 3,810 | $ | 6,659 | $ | 29,697 | $ | 27,714 | ||||
| NET EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SMP | ||||||||||||
| BASIC EARNINGS FROM CONTINUING OPERATIONS | $ | 1.22 | $ | 1.14 | $ | 2.50 | $ | 2.58 | ||||
| DISCONTINUED OPERATION | (1.04) | (0.84) | (1.14) | (1.30) | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| NET EARNINGS PER COMMON SHARE - BASIC | $ | 0.18 | $ | 0.31 | $ | 1.36 | $ | 1.28 | ||||
| DILUTED EARNINGS FROM CONTINUING OPERATIONS | $ | 1.20 | $ | 1.12 | $ | 2.45 | $ | 2.52 | ||||
| DISCONTINUED OPERATION | (1.03) | (0.82) | (1.11) | (1.27) | ||||||||
| NET EARNINGS PER COMMON SHARE - DILUTED | $ | 0.17 | $ | 0.30 | $ | 1.34 | $ | 1.25 | ||||
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES | 21,716,083 | 21,727,119 | 21,802,164 | 21,675,699 | ||||||||
| WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES | 22,154,222 | 22,253,723 | 22,225,444 | 22,198,131 | ||||||||
| (a) "SMP" refers to Standard Motor Products, Inc. and subsidiaries. | ||||||||||||
| STANDARD MOTOR PRODUCTS, INC. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Segment Revenues and Operating Profit | ||||||||||||
| (In thousands) | ||||||||||||
| THREE MONTHS ENDED | NINE MONTHS ENDED | |||||||||||
| SEPTEMBER 30, | SEPTEMBER 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| Revenues | ||||||||||||
| Engine Management (Ignition, Emissions | ||||||||||||
| and Fuel Delivery) | ||||||||||||
| Electrical and Safety | 63,237 | 62,049 | 172,772 | 166,720 | ||||||||
| Wire sets and other | 16,208 | 15,700 | 49,324 | 49,723 | ||||||||
| Vehicle Control | 200,877 | 190,937 | 575,142 | 559,303 | ||||||||
| AC System Components | 95,698 | 94,385 | 245,628 | 217,913 | ||||||||
| Other Thermal Components | 30,287 | 29,258 | 76,446 | 75,210 | ||||||||
| Temperature Control | 125,985 | 123,643 | 322,074 | 293,123 | ||||||||
| Commercial Vehicle | 22,625 | 18,701 | 69,016 | 59,158 | ||||||||
| Construction / Agriculture | 8,082 | 9,974 | 27,631 | 32,804 | ||||||||
| Light Vehicle | 24,287 | 24,123 | 70,776 | 71,123 | ||||||||
| All Other | 17,409 | 19,035 | 55,858 | 52,005 | ||||||||
| Engineered Solutions | 72,403 | 71,833 | 223,281 | 215,090 | ||||||||
| Revenues | ||||||||||||
| Gross Margin | ||||||||||||
| Vehicle Control | 65,652 | 32.7 | % | 60,865 | 31.9 | % | 184,520 | 32.1 | % | 179,446 | 32.1 | % |
| Temperature Control | 42,323 | 33.6 | % | 37,785 | 30.6 | % | 98,621 | 30.6 | % | 83,452 | 28.5 | % |
| Engineered Solutions | 13,391 | 18.5 | % | 16,110 | 22.4 | % | 39,194 | 17.6 | % | 44,398 | 20.6 | % |
| All Other | — | — | — | — | ||||||||
| Gross Margin | 30.4 | % | 29.7 | % | 28.8 | % | 28.8 | % | ||||
| Selling, General & Administrative | ||||||||||||
| Vehicle Control | 43,021 | 21.4 | % | 42,752 | 22.4 | % | 130,123 | 22.6 | % | 124,308 | 22.2 | % |
All values are in US Dollars.
| Temperature Control | 25,876 | 20.5 | % | 24,624 | 19.9 | % | 66,641 | 20.7 | % | 61,736 | 21.1 | % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Engineered Solutions | 8,124 | 11.2 | % | 8,832 | 12.3 | % | 25,491 | 11.4 | % | 25,222 | 11.7 | % |
| All Other | 5,190 | 3,573 | 16,163 | 11,991 | ||||||||
| Subtotal | 20.6 | % | 20.6 | % | 21.3 | % | 20.9 | % | ||||
| Acquisition Expenses | (1,007) | -0.3 | % | — | — | % | 1,404 | 0.1 | % | — | — | % |
| Selling, General & Administrative | 20.3 | % | 20.6 | % | 21.4 | % | 20.9 | % | ||||
| Operating Income | ||||||||||||
| Vehicle Control | 22,631 | 11.3 | % | 18,113 | 9.5 | % | 54,397 | 9.5 | % | 55,138 | 9.9 | % |
| Temperature Control | 16,447 | 13.1 | % | 13,161 | 10.6 | % | 31,980 | 9.9 | % | 21,716 | 7.4 | % |
| Engineered Solutions | 5,267 | 7.3 | % | 7,278 | 10.1 | % | 13,703 | 6.1 | % | 19,176 | 8.9 | % |
| All Other | (5,190) | (3,573) | (16,163) | (11,991) | ||||||||
| Subtotal | 9.8 | % | 9.1 | % | 7.5 | % | 7.9 | % | ||||
| Restructuring & Integration | (3,023) | -0.8 | % | (177) | — | % | (5,774) | -0.5 | % | (1,383) | -0.1 | % |
| Acquisition Expenses | 1,007 | 0.3 | % | — | — | % | (1,404) | -0.1 | % | — | — | % |
| Other Income, Net | — | — | % | 4 | — | % | 5 | — | % | 74 | — | % |
| Operating Income | 9.3 | % | 9.0 | % | 6.8 | % | 7.7 | % |
All values are in US Dollars.
| STANDARD MOTOR PRODUCTS, INC. | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Reconciliation of GAAP and Non-GAAP Measures | ||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||
| THREE MONTHS ENDED | NINE MONTHS ENDED | |||||||||||||
| SEPTEMBER 30, | SEPTEMBER 30, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP | ||||||||||||||
| GAAP EARNINGS FROM CONTINUING OPERATIONS | $ | 26,581 | $ | 24,859 | $ | 54,424 | $ | 55,915 | ||||||
| RESTRUCTURING AND INTEGRATION EXPENSES | 3,023 | 177 | 5,774 | 1,383 | ||||||||||
| ACQUISITION EXPENSES | (207) | — | 2,204 | — | ||||||||||
| CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD | (380) | (312) | (380) | (312) | ||||||||||
| INCOME TAX EFFECT RELATED TO RECONCILING ITEMS | (732) | (46) | (2,074) | (360) | ||||||||||
| NON-GAAP EARNINGS FROM CONTINUING OPERATIONS | $ | 28,285 | $ | 24,678 | $ | 59,948 | $ | 56,626 | ||||||
| DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP | ||||||||||||||
| GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS | $ | 1.20 | $ | 1.12 | $ | 2.45 | $ | 2.52 | ||||||
| RESTRUCTURING AND INTEGRATION EXPENSES | 0.14 | — | 0.26 | 0.06 | ||||||||||
| ACQUISITION EXPENSES | (0.01) | — | 0.10 | — | ||||||||||
| CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD | (0.02) | (0.01) | (0.02) | (0.01) | ||||||||||
| INCOME TAX EFFECT RELATED TO RECONCILING ITEMS | (0.03) | — | (0.09) | (0.02) | ||||||||||
| NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS | $ | 1.28 | $ | 1.11 | $ | 2.70 | $ | 2.55 | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| OPERATING INCOME | ||||||||||||||
| GAAP OPERATING INCOME | $ | 37,139 | $ | 34,806 | $ | 76,744 | $ | 82,730 | ||||||
| RESTRUCTURING AND INTEGRATION EXPENSES | 3,023 | 177 | 5,774 | 1,383 | ||||||||||
| ACQUISITION EXPENSES | (1,007) | — | 1,404 | — | ||||||||||
| OTHER (INCOME) EXPENSE, NET | — | (4) | (5) | (74) | LAST TWELVE MONTHS ENDED | YEAR ENDED | ||||||||
| SEPTEMBER 30, | DECEMBER 31, | |||||||||||||
| NON-GAAP OPERATING INCOME | $ | 39,155 | $ | 34,979 | $ | 83,917 | $ | 84,039 | 2024 | 2023 | 2023 | |||
| (Unaudited) | ||||||||||||||
| EBITDA WITHOUT SPECIAL ITEMS | ||||||||||||||
| GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES | $ | 36,123 | $ | 32,917 | $ | 73,927 | $ | 74,723 | $ | 80,920 | $ | 86,025 | $ | 81,716 |
| DEPRECIATION AND AMORTIZATION | 7,389 | 7,332 | 22,008 | 21,461 | 29,569 | 28,864 | 29,022 | |||||||
| INTEREST EXPENSE | 3,145 | 3,621 | 7,964 | 10,766 | 10,485 | 15,101 | 13,287 | |||||||
| EBITDA | 46,657 | 43,870 | 103,899 | 106,950 | 120,974 | 129,990 | 124,025 | |||||||
| RESTRUCTURING AND INTEGRATION EXPENSES | 3,023 | 177 | 5,774 | 1,383 | 7,033 | 3,230 | 2,642 | |||||||
| ACQUISITION EXPENSES | (1,007) | — | 1,404 | — | 1,404 | — | — | |||||||
| CUSTOMER BANKRUPTCY CHARGE | — | — | — | — | — | 7,002 | — | |||||||
| SPECIAL ITEMS | 2,016 | 177 | 7,178 | 1,383 | 8,437 | 10,232 | 2,642 | |||||||
| EBITDA WITHOUT SPECIAL ITEMS | $ | 48,673 | $ | 44,047 | $ | 111,077 | $ | 108,333 | $ | 129,411 | $ | 140,222 | $ | 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 SEPTEMBER 30, 2024 | |||||||||||||
| Vehicle Control | Temperature Control | Engineered Solutions | All Other | Consolidated | ||||||||||
| (Unaudited) | ||||||||||||||
| OPERATING INCOME | ||||||||||||||
| GAAP OPERATING INCOME | $ | 21,029 | $ | 16,074 | $ | 5,010 | $ | (4,974) | $ | 37,139 | ||||
| RESTRUCTURING AND INTEGRATION EXPENSES | 1,602 | 373 | 257 | 791 | 3,023 | |||||||||
| ACQUISITION EXPENSES | — | — | — | (1,007) | (1,007) | |||||||||
| OTHER EXPENSE, NET | — | — | — | — | — | |||||||||
| NON-GAAP OPERATING INCOME | $ | 22,631 | $ | 16,447 | $ | 5,267 | $ | (5,190) | $ | 39,155 | ||||
| EBITDA WITHOUT SPECIAL ITEMS | ||||||||||||||
| GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES | $ | 18,844 | $ | 16,530 | $ | 5,607 | $ | (4,858) | $ | 36,123 | ||||
| DEPRECIATION AND AMORTIZATION | 3,850 | 802 | 2,308 | 429 | 7,389 | |||||||||
| INTEREST EXPENSE | 2,166 | 791 | 434 | (246) | 3,145 | |||||||||
| EBITDA | 24,860 | 18,123 | 8,349 | (4,675) | 46,657 | |||||||||
| RESTRUCTURING AND INTEGRATION EXPENSES | 1,602 | 373 | 257 | 791 | 3,023 | |||||||||
| ACQUISITION EXPENSES | — | — | — | (1,007) | (1,007) | |||||||||
| SPECIAL ITEMS | 1,602 | 373 | 257 | (216) | 2,016 | |||||||||
| EBITDA WITHOUT SPECIAL ITEMS | $ | 26,462 | $ | 18,496 | $ | 8,606 | $ | (4,891) | $ | 48,673 | ||||
| % of Net Sales | 13.2 | % | 14.7 | % | 11.9 | % | 12.2 | % | ||||||
| (In thousands) | THREE MONTHS ENDED SEPTEMBER 30, 2023 | |||||||||||||
| Vehicle Control | Temperature Control | Engineered Solutions | All Other | Consolidated | ||||||||||
| (Unaudited) | ||||||||||||||
| OPERATING INCOME | ||||||||||||||
| GAAP OPERATING INCOME | $ | 18,071 | $ | 13,054 | $ | 7,254 | $ | (3,573) | $ | 34,806 | ||||
| RESTRUCTURING AND INTEGRATION EXPENSES | 45 | 107 | 25 | — | 177 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| OTHER INCOME, NET | (3) | — | (1) | — | (4) | |||||||||
| NON-GAAP OPERATING INCOME | $ | 18,113 | $ | 13,161 | $ | 7,278 | $ | (3,573) | $ | 34,979 | ||||
| EBITDA WITHOUT SPECIAL ITEMS | ||||||||||||||
| GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES | $ | 15,702 | $ | 12,780 | $ | 8,078 | $ | (3,643) | $ | 32,917 | ||||
| DEPRECIATION AND AMORTIZATION | 3,482 | 908 | 2,450 | 492 | 7,332 | |||||||||
| INTEREST EXPENSE | 2,563 | 942 | 620 | (504) | 3,621 | |||||||||
| EBITDA | 21,747 | 14,630 | 11,148 | (3,655) | 43,870 | |||||||||
| RESTRUCTURING AND INTEGRATION EXPENSES | 45 | 107 | 25 | — | 177 | |||||||||
| SPECIAL ITEMS | 45 | 107 | 25 | — | 177 | |||||||||
| EBITDA WITHOUT SPECIAL ITEMS | $ | 21,792 | $ | 14,737 | $ | 11,173 | $ | (3,655) | $ | 44,047 | ||||
| % of Net Sales | 11.4 | % | 11.9 | % | 15.6 | % | 11.4 | % | ||||||
| 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) | NINE MONTHS ENDED SEPTEMBER 30, 2024 | |||||||||||||
| Vehicle Control | Temperature Control | Engineered Solutions | All Other | Consolidated | ||||||||||
| (Unaudited) | ||||||||||||||
| OPERATING INCOME | ||||||||||||||
| GAAP OPERATING INCOME | $ | 51,685 | $ | 31,302 | $ | 13,054 | $ | (19,297) | $ | 76,744 | ||||
| RESTRUCTURING AND INTEGRATION EXPENSES | 2,712 | 678 | 654 | 1,730 | 5,774 | |||||||||
| ACQUISITION EXPENSES | — | — | — | 1,404 | 1,404 | |||||||||
| OTHER INCOME, NET | — | — | (5) | — | (5) | |||||||||
| NON-GAAP OPERATING INCOME | $ | 54,397 | $ | 31,980 | $ | 13,703 | $ | (16,163) | $ | 83,917 | ||||
| EBITDA WITHOUT SPECIAL ITEMS | ||||||||||||||
| GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES | $ | 46,226 | $ | 32,396 | $ | 14,482 | $ | (19,177) | $ | 73,927 | ||||
| DEPRECIATION AND AMORTIZATION | 10,981 | 2,480 | 7,240 | 1,307 | 22,008 | |||||||||
| INTEREST EXPENSE | 5,492 | 2,048 | 1,804 | (1,380) | 7,964 | |||||||||
| EBITDA | 62,699 | 36,924 | 23,526 | (19,250) | 103,899 | |||||||||
| RESTRUCTURING AND INTEGRATION EXPENSES | 2,712 | 678 | 654 | 1,730 | 5,774 | |||||||||
| ACQUISITION EXPENSES | — | — | — | 1,404 | 1,404 | |||||||||
| SPECIAL ITEMS | 2,712 | 678 | 654 | 3,134 | 7,178 | |||||||||
| EBITDA WITHOUT SPECIAL ITEMS | $ | 65,411 | $ | 37,602 | $ | 24,180 | $ | (16,116) | $ | 111,077 | ||||
| % of Net Sales | 11.4 | % | 11.7 | % | 10.8 | % | 9.9 | % | ||||||
| (In thousands) | NINE MONTHS ENDED SEPTEMBER 30, 2023 | |||||||||||||
| Vehicle Control | Temperature Control | Engineered Solutions | All Other | Consolidated | ||||||||||
| (Unaudited) | ||||||||||||||
| OPERATING INCOME | ||||||||||||||
| GAAP OPERATING INCOME | $ | 54,719 | $ | 20,938 | $ | 19,064 | $ | (11,991) | $ | 82,730 | ||||
| RESTRUCTURING AND INTEGRATION EXPENSES | 484 | 778 | 121 | — | 1,383 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| OTHER INCOME, NET | (65) | — | (9) | — | (74) | |||||||||
| NON-GAAP OPERATING INCOME | $ | 55,138 | $ | 21,716 | $ | 19,176 | $ | (11,991) | $ | 84,039 | ||||
| EBITDA WITHOUT SPECIAL ITEMS | ||||||||||||||
| GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES | $ | 47,994 | $ | 19,144 | $ | 19,611 | $ | (12,026) | $ | 74,723 | ||||
| DEPRECIATION AND AMORTIZATION | 10,267 | 2,439 | 7,417 | 1,338 | 21,461 | |||||||||
| INTEREST EXPENSE | 7,608 | 2,677 | 1,616 | (1,135) | 10,766 | |||||||||
| EBITDA | 65,869 | 24,260 | 28,644 | (11,823) | 106,950 | |||||||||
| RESTRUCTURING AND INTEGRATION EXPENSES | 484 | 778 | 121 | — | 1,383 | |||||||||
| SPECIAL ITEMS | 484 | 778 | 121 | — | 1,383 | |||||||||
| EBITDA WITHOUT SPECIAL ITEMS | $ | 66,353 | $ | 25,038 | $ | 28,765 | $ | (11,823) | $ | 108,333 | ||||
| % of Net Sales | 11.9 | % | 8.5 | % | 13.4 | % | 10.1 | % | ||||||
| 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) | ||||||||||||||
| SEPTEMBER | DECEMBER | |||||||||||||
| 2024 | 2023 | |||||||||||||
| (Unaudited) | ||||||||||||||
| ASSETS | ||||||||||||||
| CASH AND CASH EQUIVALENTS | ||||||||||||||
| ACCOUNTS RECEIVABLE, GROSS | 225,827 | 168,327 | ||||||||||||
| ALLOWANCE FOR EXPECTED CREDIT LOSSES | 8,697 | 8,045 | ||||||||||||
| ACCOUNTS RECEIVABLE, NET | 217,130 | 160,282 | ||||||||||||
| INVENTORIES | 503,015 | 507,075 | ||||||||||||
| UNRETURNED CUSTOMER INVENTORY | 17,843 | 18,240 | ||||||||||||
| OTHER CURRENT ASSETS | 28,873 | 26,100 | ||||||||||||
| TOTAL CURRENT ASSETS | 793,209 | 744,223 | ||||||||||||
| PROPERTY, PLANT AND EQUIPMENT, NET | 138,490 | 121,872 | ||||||||||||
| OPERATING LEASE RIGHT-OF-USE ASSETS | 96,039 | 100,065 | ||||||||||||
| GOODWILL | 134,725 | 134,729 | ||||||||||||
| OTHER INTANGIBLES, NET | 85,837 | 92,308 | ||||||||||||
| DEFERRED INCOME TAXES | 45,315 | 40,533 | ||||||||||||
| INVESTMENT IN UNCONSOLIDATED AFFILIATES | 23,914 | 24,050 | ||||||||||||
| OTHER ASSETS | 33,012 | 35,267 | ||||||||||||
| TOTAL ASSETS | ||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
| CURRENT PORTION OF REVOLVING CREDIT FACILITY | — | — | ||||||||||||
| CURRENT PORTION OF TERM LOAN AND OTHER DEBT | 2,685 | 5,029 | ||||||||||||
| ACCOUNTS PAYABLE | 112,404 | 107,455 | ||||||||||||
| ACCRUED CUSTOMER RETURNS | 62,326 | 38,238 | ||||||||||||
| ACCRUED CORE LIABILITY | 15,226 | 18,399 | ||||||||||||
| ACCRUED REBATES | 53,163 | 42,278 | ||||||||||||
| PAYROLL AND COMMISSIONS | 37,050 | 29,561 | ||||||||||||
| SUNDRY PAYABLES AND ACCRUED EXPENSES | 69,666 | 63,303 | ||||||||||||
| TOTAL CURRENT LIABILITIES | 352,520 | 304,263 | ||||||||||||
| LONG-TERM DEBT | 140,163 | 151,182 | ||||||||||||
| NONCURRENT OPERATING LEASE LIABILITY | 86,259 | 88,974 |
All values are in US Dollars.
| ACCRUED ASBESTOS LIABILITIES | 89,544 | 72,013 | |||
|---|---|---|---|---|---|
| OTHER LIABILITIES | 28,611 | 25,742 | |||
| TOTAL LIABILITIES | 697,097 | 642,174 | |||
| TOTAL SMP STOCKHOLDERS' EQUITY | 638,833 | 635,064 | |||
| NONCONTROLLING INTEREST | 14,611 | 15,809 | |||
| TOTAL STOCKHOLDERS' EQUITY | 653,444 | 650,873 | |||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,350,541 | $ | 1,293,047 | |
| STANDARD MOTOR PRODUCTS, INC. | |||||
| --- | --- | --- | --- | --- | --- |
| Condensed Consolidated Statements of Cash Flows | |||||
| (In thousands) | |||||
| NINE MONTHS ENDED | |||||
| SEPTEMBER 30, | |||||
| 2024 | 2023 | ||||
| (Unaudited) | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||
| NET EARNINGS | $ | 30,482 | $ | 27,866 | |
| ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH | |||||
| PROVIDED BY OPERATING ACTIVITIES: | |||||
| DEPRECIATION AND AMORTIZATION | 22,008 | 21,461 | |||
| LOSS FROM DISCONTINUED OPERATIONS, NET OF TAXES | 24,727 | 28,201 | |||
| OTHER | 4,473 | 4,701 | |||
| CHANGE IN ASSETS AND LIABILITIES: | |||||
| ACCOUNTS RECEIVABLE | (59,040) | (38,850) | |||
| INVENTORY | 2,895 | 54,286 | |||
| ACCOUNTS PAYABLE | 4,487 | 15,852 | |||
| PREPAID EXPENSES AND OTHER CURRENT ASSETS | (2,739) | 2,916 | |||
| SUNDRY PAYABLES AND ACCRUED EXPENSES | 45,470 | 12,345 | |||
| OTHER | 5,437 | 4,115 | |||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 78,200 | 132,893 | |||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||
| ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES | — | (3,954) | |||
| CASH ACQUIRED IN STEP ACQUISITION | — | 6,779 | |||
| CAPITAL EXPENDITURES | (34,136) | (17,977) | |||
| OTHER INVESTING ACTIVITIES | 18 | 95 | |||
| NET CASH USED IN INVESTING ACTIVITIES | (34,118) | (15,057) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||
| NET CHANGE IN DEBT | (13,422) | (92,149) | |||
| PURCHASE OF TREASURY STOCK | (10,409) | — | |||
| DIVIDENDS PAID | (19,004) | (18,846) | |||
| PAYMENTS OF DEBT ISSUANCE COSTS | (4,183) | — | |||
| OTHER FINANCING ACTIVITIES | (651) | (2) | |||
| NET CASH USED IN FINANCING ACTIVITIES | (47,669) | (110,997) | |||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | (2,591) | 496 | |||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (6,178) | 7,335 | |||
| CASH AND CASH EQUIVALENTS at beginning of period | 32,526 | 21,150 | |||
| --- | --- | --- | --- | --- | |
| CASH AND CASH EQUIVALENTS at end of period | $ | 26,348 | $ | 28,485 |