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): February 18, 2021
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 February 23, 2021, Standard Motor Products, Inc. (the “Company”) issued a press release announcing its financial results for the three months and year ended December 31, 2020. 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 5.02(b). | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
|---|
On February 18, 2021, Roger M. Widmann announced that he will retire from the Board of Directors of the Company at the end of his current term of office in May 2021. Following Mr. Widmann’s decision, upon the recommendation of the Nominating and Corporate Governance Committee, the Board of Directors decreased the size of the Board from ten to nine members, effective as of May 21, 2021.
| Item 9.01. | Financial Statements and Exhibits. |
|---|---|
| (d) | Exhibits. |
| --- | --- |
| 99.1 | Press release dated February 23, 2021 announcing Standard Motor Products, Inc.’s financial results for the three months and year ended December 31, 2020. |
| --- | --- |
| 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: February 23, 2021 |
2
Exhibit Index
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release dated February 23, 2021 announcing Standard Motor Products,<br> Inc.’s financial results for the three months and year ended December 31, 2020. |
| 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: |
|---|---|
| Nathan R. Iles | |
| Standard Motor Products, Inc. | |
| (718) 392-0200 |
Standard Motor Products, Inc. Announces
Fourth Quarter and 2020 Year-End Results
New York, NY, February 23, 2021......Standard Motor Products, Inc. (NYSE: SMP), a leading automotive replacement parts manufacturer and distributor, reported today its consolidated financial results for the three months and twelve months ended December 31, 2020.
Consolidated net sales for the fourth quarter of 2020 were $282.7 million, compared to consolidated net sales of $241.3 million during the comparable quarter in 2019. Earnings from continuing operations for the fourth quarter of 2020 were $22.7 million or $1.00 per diluted share, compared to $12.7 million or 56 cents per diluted share in the fourth quarter of 2019. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the fourth quarter of 2020 were $24.7 million or $1.08 per diluted share, compared to $13.6 million or 59 cents per diluted share in the fourth quarter of 2019.
Consolidated net sales for the twelve months ended December 31, 2020, were $1,128.6 million, compared to consolidated net sales of $1,137.9 million during the comparable period in 2019. Earnings from continuing operations for the twelve months ended December 31, 2020, were $80.4 million or $3.52 per diluted share, compared to $69.1 million or $3.03 per diluted share in the comparable period of 2019. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the twelve months ended December 31, 2020 and 2019 were $82.4 million or $3.61 per diluted share and $70.8 million or $3.10 per diluted share, respectively.
Loss from discontinued operations, net of income taxes, in the fourth quarter of 2020 was $13.6 million compared to $1.2 million in the comparable period last year. The loss pertains to asbestos-related liabilities from a brake business, originally acquired in 1986 and subsequently divested in 1998, and are adjusted at least annually, when the Company engages an independent actuary to assess the Company’s exposure.
Mr. Eric Sills, Standard Motor Products’ Chief Executive Officer and President stated, “We are very pleased with our fourth quarter results, as we achieved records in both sales and earnings from continuing operations. After a very difficult second quarter when we experienced a slowdown caused by the pandemic, business rebounded in the second half, and we ended within one percent of our 2019 full-year revenue, setting a new high for full-year earnings from continuing operations.
“By segment, Engine Management sales were up 14.8% in the quarter, due to a combination of carry-over of an order backlog coming out of the third quarter, and generally strong demand across our entire customer base. Customer POS was consistently up in the mid-single digits, reflecting ongoing positive sell-through. Temperature Control sales were up 30% in the quarter, as the warm weather continued into the period.
“Our strong profits for the quarter were mainly the result of increased absorption in our plants from elevated sales and production levels. For the full year, our record profits were primarily due to higher production levels in certain periods and annual savings initiatives, and to a lesser extent by certain non-recurring benefits from cost reduction initiatives and COVID-related government incentives, partially offset by COVID-related costs.
“Looking forward, we enter 2021 with many positives – our industry remains healthy and our customers’ POS has remained strong. However, as previously announced in December, we were informed of the loss of a major account in our Engine Management segment. When we initially reported the loss, the timing was still uncertain. We now know that the business will be phased out over the course of the first quarter of 2021. As we said before, the loss was due to a shift in business strategy by the customer, and we are aggressively working to reduce costs accordingly while we seek to replace the business. We remain very confident in our go-to-market strategy, which continues to be very well received by the balance of our customers. In fact, we are delighted to announce that we just received the 2020 Supplier of the Year award from O’Reilly Auto Parts, in which they recognized the strength of our partnership.
“We are very excited to announce the publication of our inaugural Sustainability Report, now available on our website. We believe we have a long heritage of investing in our people, our communities, and our planet, and we are pleased to share the details publicly.
“As we continue to return value to our shareholders, our Board of Directors recently approved the payment of a quarterly dividend of 25 cents per share, payable on March 1, 2021. Our Board has also authorized an additional $20 million common stock repurchase plan, which when added to the amount remaining under the prior plan will allow us to repurchase up to $26.5 million of our outstanding shares. We repurchased shares of our common stock in the amount of $4.8 million during the fourth quarter of 2020.”
Mr. Lawrence I. Sills, Chairman of the Board, then stated “Mr. Roger M. Widmann announced that he will retire from the Board this coming May, at the conclusion of his term. Roger has been a valuable member of our Board, where he has served since 2005, including as Chairman of our Compensation and Management Development Committee for the past nine years. He has been a major contributor in all areas, and he will be missed. We wish him a well-deserved retirement.”
Mr. Eric Sills continued, “In conclusion, as we reflect back on a year unlike any in history, certain positives come to mind. First, we cannot be more proud of our employees, who helped us navigate uncharted waters with tremendous dedication and skill. We owe them a debt of gratitude. Second, it demonstrated once again the resiliency of the automotive aftermarket, proving how essential it is to the basic functioning of our country and its infrastructure. We remain very confident about our future.”
Conference Call
Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Tuesday, February 23, 2021. The dial-in number is 888-632-3389 (domestic) or 785-424-1674 (international). The playback number is 800-839-9725 (domestic) or 402-220-6093 (international). The participant passcode is 62175.
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<br><br> <br>DECEMBER 31, | TWELVE MONTHS ENDED<br><br> <br>DECEMBER 31, | |||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| NET SALES | $ | 282,738 | $ | 241,252 | $ | 1,128,588 | $ | 1,137,913 | ||||
| COST OF SALES | 188,584 | 168,408 | 791,933 | 806,113 | ||||||||
| GROSS PROFIT | 94,154 | 72,844 | 336,655 | 331,800 | ||||||||
| SELLING, GENERAL & ADMINISTRATIVE EXPENSES | 60,972 | 54,232 | 224,670 | 234,715 | ||||||||
| INTANGIBLE ASSET IMPAIRMENT | 2,600 | - | 2,600 | - | ||||||||
| RESTRUCTURING AND INTEGRATION EXPENSES | - | 1,116 | 464 | 2,585 | ||||||||
| OTHER INCOME (EXPENSE), NET | 5 | 10 | (26 | ) | (5 | ) | ||||||
| OPERATING INCOME | 30,587 | 17,506 | 108,895 | 94,495 | ||||||||
| OTHER NON-OPERATING INCOME, NET | 220 | 305 | 812 | 2,587 | ||||||||
| INTEREST EXPENSE | 221 | 967 | 2,328 | 5,286 | ||||||||
| EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES | 30,586 | 16,844 | 107,379 | 91,796 | ||||||||
| PROVISION FOR INCOME TAXES | 7,844 | 4,106 | 26,962 | 22,745 | ||||||||
| EARNINGS FROM CONTINUING OPERATIONS | 22,742 | 12,738 | 80,417 | 69,051 | ||||||||
| LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES | (13,568 | ) | (1,220 | ) | (23,024 | ) | (11,134 | ) | ||||
| NET EARNINGS | $ | 9,174 | $ | 11,518 | $ | 57,393 | $ | 57,917 | ||||
| NET EARNINGS PER COMMON SHARE: | ||||||||||||
| BASIC EARNINGS FROM CONTINUING OPERATIONS | $ | 1.02 | $ | 0.57 | $ | 3.59 | $ | 3.09 | ||||
| DISCONTINUED OPERATION | (0.61 | ) | (0.06 | ) | (1.02 | ) | (0.50 | ) | ||||
| NET EARNINGS PER COMMON SHARE - BASIC | $ | 0.41 | $ | 0.51 | $ | 2.57 | $ | 2.59 | ||||
| DILUTED EARNINGS FROM CONTINUING OPERATIONS | $ | 1.00 | $ | 0.56 | $ | 3.52 | $ | 3.03 | ||||
| DISCONTINUED OPERATION | (0.60 | ) | (0.06 | ) | (1.01 | ) | (0.49 | ) | ||||
| NET EARNINGS PER COMMON SHARE - DILUTED | $ | 0.40 | $ | 0.50 | $ | 2.51 | $ | 2.54 | ||||
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES | 22,379,056 | 22,434,134 | 22,374,123 | 22,378,414 | ||||||||
| WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES | 22,855,523 | 22,882,235 | 22,825,885 | 22,818,451 |
STANDARD MOTOR PRODUCTS, INC.
Segment Revenues and Operating Income
| (In thousands) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| THREE MONTHS ENDED<br><br> <br>DECEMBER 31, | TWELVE MONTHS ENDED<br><br> <br>DECEMBER 31, | |||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| Revenues | ||||||||||||
| Ignition, Emission Control, Fuel & Safety Related System Products | $ | 193,518 | $ | 167,276 | $ | 691,722 | $ | 705,994 | ||||
| Wire and Cable | 38,342 | 34,681 | 143,963 | 143,167 | ||||||||
| Engine Management | 231,860 | 201,957 | 835,685 | 849,161 | ||||||||
| Compressors | 22,060 | 15,405 | 163,071 | 160,485 | ||||||||
| Other Climate Control Parts | 25,667 | 21,319 | 118,883 | 117,870 | ||||||||
| Temperature Control | 47,727 | 36,724 | 281,954 | 278,355 | ||||||||
| All Other | 3,151 | 2,571 | 10,949 | 10,397 | ||||||||
| Revenues | $ | 282,738 | $ | 241,252 | $ | 1,128,588 | $ | 1,137,913 | ||||
| Gross Margin | ||||||||||||
| Engine Management | $ | 76,451 | 33.0% | $ | 61,823 | 30.6% | $ | 251,747 | 30.1% | $ | 251,560 | 29.6% |
| Temperature Control | 14,333 | 30.0% | 8,349 | 22.7% | 75,161 | 26.7% | 70,064 | 25.2% | ||||
| All Other | 3,370 | 2,672 | 9,747 | 10,176 | ||||||||
| Gross Margin | $ | 94,154 | 33.3% | $ | 72,844 | 30.2% | $ | 336,655 | 29.8% | $ | 331,800 | 29.2% |
| Selling, General & Administrative | ||||||||||||
| Engine Management | $ | 37,203 | 16.0% | $ | 34,439 | 17.1% | $ | 137,440 | 16.4% | $ | 145,162 | 17.1% |
| Temperature Control | 13,297 | 27.9% | 11,364 | 30.9% | 53,865 | 19.1% | 56,397 | 20.3% | ||||
| All Other | 10,472 | 8,429 | 33,365 | 33,156 | ||||||||
| Selling, General & Administrative | $ | 60,972 | 21.6% | $ | 54,232 | 22.5% | $ | 224,670 | 19.9% | $ | 234,715 | 20.6% |
| Operating Income | ||||||||||||
| Engine Management | $ | 39,248 | 16.9% | $ | 27,384 | 13.6% | $ | 114,307 | 13.7% | $ | 106,398 | 12.5% |
| Temperature Control | 1,036 | 2.2% | (3,015) | -8.2% | 21,296 | 7.6% | 13,667 | 4.9% | ||||
| All Other | (7,102) | (5,757) | (23,618) | (22,980) | ||||||||
| Subtotal | 33,182 | 11.7% | 18,612 | 7.7% | 111,985 | 9.9% | 97,085 | 8.5% | ||||
| Intangible Asset Impairment | (2,600) | -0.9% | - | 0.0% | (2,600) | -0.2% | - | 0.0% | ||||
| Restructuring & Integration | - | 0.0% | (1,116) | -0.5% | (464) | 0.0% | (2,585) | -0.2% | ||||
| Other Income (Expense), Net | 5 | 0.0% | 10 | 0.0% | (26) | 0.0% | (5) | 0.0% | ||||
| Operating Income | $ | 30,587 | 10.8% | $ | 17,506 | 7.3% | $ | 108,895 | 9.6% | $ | 94,495 | 8.3% |
STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures
| (In thousands, except per share amounts) | ||||||||
|---|---|---|---|---|---|---|---|---|
| THREE MONTHS ENDED<br><br> <br>DECEMBER 31, | TWELVE MONTHS ENDED<br><br> <br>DECEMBER 31, | |||||||
| 2020 | 2019 | 2020 | 2019 | |||||
| (Unaudited) | (Unaudited) | |||||||
| EARNINGS FROM CONTINUING OPERATIONS | ||||||||
| GAAP EARNINGS FROM CONTINUING OPERATIONS | $ | 22,742 | $ | 12,738 | $ | 80,417 | $ | 69,051 |
| RESTRUCTURING AND INTEGRATION EXPENSES | - | 1,116 | 464 | 2,585 | ||||
| INTANGIBLE ASSET IMPAIRMENT | 2,600 | - | 2,600 | - | ||||
| CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD | - | - | (235) | (144) | ||||
| INCOME TAX EFFECT RELATED TO RECONCILING ITEMS | (676) | (291) | (797) | (673) | ||||
| NON-GAAP EARNINGS FROM CONTINUING OPERATIONS | $ | 24,666 | $ | 13,563 | $ | 82,449 | $ | 70,819 |
| DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS | ||||||||
| GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS | $ | 1.00 | $ | 0.56 | $ | 3.52 | $ | 3.03 |
| RESTRUCTURING AND INTEGRATION EXPENSES | - | 0.05 | 0.02 | 0.11 | ||||
| INTANGIBLE ASSET IMPAIRMENT | 0.11 | - | 0.11 | - | ||||
| CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD | - | - | (0.01) | (0.01) | ||||
| INCOME TAX EFFECT RELATED TO RECONCILING ITEMS | (0.03) | (0.02) | (0.03) | (0.03) | ||||
| NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS | $ | 1.08 | $ | 0.59 | $ | 3.61 | $ | 3.10 |
| OPERATING INCOME | ||||||||
| GAAP OPERATING INCOME | $ | 30,587 | $ | 17,506 | $ | 108,895 | $ | 94,495 |
| INTANGIBLE ASSET IMPAIRMENT | 2,600 | - | 2,600 | - | ||||
| RESTRUCTURING AND INTEGRATION EXPENSES | - | 1,116 | 464 | 2,585 | ||||
| OTHER (INCOME) EXPENSE, NET | (5) | (10) | 26 | 5 | ||||
| NON-GAAP OPERATING INCOME | $ | 33,182 | $ | 18,612 | $ | 111,985 | $ | 97,085 |
MANAGEMENT BELIEVES THAT EARNINGS FROM CONTINUING OPERATIONS, DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS, AND OPERATING INCOME, EACH OF WHICH ARE NON-GAAP MEASUREMENTS AND ARE ADJUSTED FOR SPECIAL ITEMS, ARE MEANINGFUL TO INVESTORS BECAUSE THEY PROVIDE A VIEW OF THE COMPANY WITH RESPECT TO ONGOING OPERATING RESULTS. SPECIAL ITEMS REPRESENT SIGNIFICANT CHARGES OR CREDITS THAT ARE IMPORTANT TO AN UNDERSTANDING OF THE COMPANY’S OVERALL OPERATING RESULTS IN THE PERIODS PRESENTED. SUCH NON-GAAP MEASUREMENTS ARE NOT RECOGNIZED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND SHOULD NOT BE VIEWED AS AN ALTERNATIVE TO GAAP MEASURES OF PERFORMANCE.
STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Balance Sheets
| (In thousands) | ||||
|---|---|---|---|---|
| DECEMBER 31,<br><br> <br>2020 | DECEMBER 31,<br><br> <br>2019 | |||
| (Unaudited) | ||||
| ASSETS | ||||
| CASH | $ | 19,488 | $ | 10,372 |
| ACCOUNTS RECEIVABLE, GROSS | 203,861 | 131,852 | ||
| ALLOWANCE FOR DOUBTFUL ACCOUNTS | 5,822 | 5,212 | ||
| ACCOUNTS RECEIVABLE, NET | 198,039 | 126,640 | ||
| INVENTORIES | 345,502 | 368,221 | ||
| UNRETURNED CUSTOMER INVENTORY | 19,632 | 19,722 | ||
| PREPAID EXPENSES AND OTHER CURRENT ASSETS | 15,875 | 15,602 | ||
| TOTAL CURRENT ASSETS | 598,536 | 540,557 | ||
| PROPERTY, PLANT AND EQUIPMENT, NET | 89,105 | 89,649 | ||
| OPERATING LEASE RIGHT-OF-USE ASSETS | 29,958 | 36,020 | ||
| GOODWILL | 77,837 | 77,802 | ||
| OTHER INTANGIBLES, NET | 54,004 | 64,861 | ||
| DEFERRED INCOME TAXES | 44,770 | 37,272 | ||
| INVESTMENT IN UNCONSOLIDATED AFFILIATES | 40,507 | 38,858 | ||
| OTHER ASSETS | 21,823 | 18,835 | ||
| TOTAL ASSETS | $ | 956,540 | $ | 903,854 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
| NOTES PAYABLE | $ | 10,000 | $ | 52,460 |
| CURRENT PORTION OF OTHER DEBT | 135 | 4,456 | ||
| ACCOUNTS PAYABLE | 100,018 | 92,535 | ||
| ACCRUED CUSTOMER RETURNS | 40,982 | 35,240 | ||
| ACCRUED CORE LIABILITY | 22,014 | 24,357 | ||
| ACCRUED REBATES | 46,437 | 26,072 | ||
| PAYROLL AND COMMISSIONS | 35,938 | 26,649 | ||
| SUNDRY PAYABLES AND ACCRUED EXPENSES | 47,078 | 38,819 | ||
| TOTAL CURRENT LIABILITIES | 302,602 | 300,588 | ||
| OTHER LONG-TERM DEBT | 97 | 129 | ||
| NONCURRENT OPERATING LEASE LIABILITIES | 22,450 | 28,376 | ||
| ACCRUED ASBESTOS LIABILITIES | 55,226 | 49,696 | ||
| OTHER LIABILITIES | 25,929 | 20,837 | ||
| TOTAL LIABILITIES | 406,304 | 399,626 | ||
| TOTAL STOCKHOLDERS’ EQUITY | 550,236 | 504,228 | ||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 956,540 | $ | 903,854 |
STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Statements of Cash Flows
| (In thousands) | ||||||
|---|---|---|---|---|---|---|
| TWELVE MONTHS ENDED<br><br> <br>DECEMBER 31, | ||||||
| 2020 | 2019 | |||||
| (Unaudited) | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
| NET EARNINGS | $ | 57,393 | $ | 57,917 | ||
| ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH | ||||||
| PROVIDED BY OPERATING ACTIVITIES: | ||||||
| DEPRECIATION AND AMORTIZATION | 26,323 | 25,809 | ||||
| DEFERRED INCOME TAXES | (7,470 | ) | 5,094 | |||
| LOSS FROM DISCONTINUED OPERATIONS, NET OF TAXES | 23,024 | 11,134 | ||||
| OTHER | 18,768 | 11,359 | ||||
| CHANGE IN ASSETS AND LIABILITIES: | ||||||
| ACCOUNTS RECEIVABLE | (71,933 | ) | 2,789 | |||
| INVENTORIES | 17,984 | (17,901 | ) | |||
| ACCOUNTS PAYABLE | 7,428 | (1,950 | ) | |||
| PREPAID EXPENSES AND OTHER CURRENT ASSETS | (370 | ) | (8,296 | ) | ||
| SUNDRY PAYABLES AND ACCRUED EXPENSES | 40,651 | (2,957 | ) | |||
| OTHER | (13,902 | ) | (6,070 | ) | ||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 97,896 | 76,928 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
| ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES | - | (43,490 | ) | |||
| NET PROCEEDS FROM SALE OF FACILITY | - | 4,801 | ||||
| CAPITAL EXPENDITURES | (17,820 | ) | (16,185 | ) | ||
| OTHER INVESTING ACTIVITIES | 21 | 62 | ||||
| NET CASH USED IN INVESTING ACTIVITIES | (17,799 | ) | (54,812 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
| NET CHANGE IN DEBT | (46,708 | ) | 7,860 | |||
| PURCHASE OF TREASURY STOCK | (13,482 | ) | (10,738 | ) | ||
| DIVIDENDS PAID | (11,218 | ) | (20,593 | ) | ||
| OTHER FINANCING ACTIVITIES | (108 | ) | 93 | |||
| NET CASH USED IN FINANCING ACTIVITIES | (71,516 | ) | (23,378 | ) | ||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | 535 | 496 | ||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 9,116 | (766 | ) | |||
| CASH AND CASH EQUIVALENTS at beginning of year | 10,372 | 11,138 | ||||
| CASH AND CASH EQUIVALENTS at end of year | $ | 19,488 | $ | 10,372 |