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 22, 2023

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

New York
(State or Other Jurisdiction of Incorporation)
001-04743
(Commission File Number)
11-1362020
(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 22, 2023, Standard Motor Products, Inc. (the “Company”) issued a press release announcing its financial results for the three months and year ended December 31, 2022.  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 7.01.
Regulation FD Disclosure.

On February 22, 2023, the Company issued a press release announcing operating segment changes beginning in the first quarter of 2023.  The press release references an investor presentation and a presentation of supplemental unaudited historical financial information under the new segment presentation for the years ended December 31, 2022 and 2021, and for each quarter of the years ended December 31, 2022 and 2021.  The Company did not operate under this new segment structure for any of these prior periods and will begin to report results under the new segment structure with its Quarterly Report on Form 10-Q for the three months ended March 31, 2023.

The press release, investor presentation and supplemental information are being furnished as Exhibit 99.2, Exhibit 99.3, and Exhibit 99.4 respectively.  Such press release, investor presentation and supplemental information shall not be deemed “filed” for purposes of Section 18 of 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 February 22, 2023, announcing Standard Motor Products, Inc.’s financial results for the three months and year ended December 31, 2022.
     
 
99.2
Press release dated February 22, 2023, announcing Standard Motor Products, Inc.’s operating segment changes beginning in the first quarter of 2023.
     
  99.3
 Investor presentation dated February 22, 2023.
     
 
99.4
Resegmentation announcement dated February 22, 2023, including supplemental unaudited historical financial information for the years ended December 31, 2022 and 2021, and for each quarter of the years ended December 31, 2022 and 2021, recast under the new segment presentation.
     
 
104
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2
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 22, 2023
    

3
Exhibit Index
 
Exhibit No.
  
Description
     
     
99.1
  
     
99.2
  
     
99.3
   Investor presentation dated February 22, 2023.
     
99.4
  
     
104
  
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4
Exhibit 99.1

For Immediate Release
  
 
For more information, contact:
 
Anthony (Tony) Cristello
 
Standard Motor Products, Inc.
 
(972) 316-8107
 

Standard Motor Products, Inc. Releases
 
Fourth Quarter and 2022 Year-End Results;
 
Announces Segment Reporting Changes
 
New York, NY, February 22, 2023......Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, reported today its consolidated financial results for the three and twelve months ended December 31, 2022.

Net sales for the fourth quarter of 2022 were $308.2 million, compared to consolidated net sales of $309.9 million during the same quarter in 2021. Earnings from continuing operations for the fourth quarter of 2022 were $8.5 million or $0.39 per diluted share, compared to $20.0 million or $0.89 per diluted share in the fourth quarter of 2021. 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 2022 were $15.1 million or $0.69 per diluted share, compared to $20.3 million or $0.90 per diluted share in the fourth quarter of 2021.

Consolidated net sales for the twelve months ended December 31, 2022, were $1.37 billion, compared to consolidated net sales of $1.30 billion during the comparable period in 2021.  Earnings from continuing operations for the twelve months ended December 31, 2022, were $73.0 million or $3.30 per diluted share, compared to $99.4 million or $4.39 per diluted share in the comparable period of 2021.  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, 2022 and 2021 were $79.4 million or $3.59 per diluted share and $100.7 million or $4.45 per diluted share, respectively. Our earnings for both the fourth quarter and the full-year 2022 were impacted by the recent announcement of a bankruptcy filing by an Aftermarket customer. We recorded a pre-tax charge of $7.0 million in the fourth quarter related to anticipated losses from this event, which has been treated as a non-operational loss on our GAAP to non-GAAP reconciliation.

Mr. Eric Sills, Standard Motor Products’ Chief Executive Officer and President stated, “We are pleased with our full year sales results, up 5.6% from 2021, with both Engine Management and Temperature Control segments performing well. Against a challenging comparison, sales for the fourth quarter dropped a half a percentage point from the same period last year, which was up nearly 10% from 2020.”

By segment, Engine Management sales increased 4% for the full year, on top of 12% growth in 2021. However, fourth quarter sales were down slightly, just over 1%, versus a very strong 2021, which was up 6% over the prior year.  Our customers’ Engine Management POS sales remained robust in the quarter, reflecting continued market strength and demand for our products.

Temperature Control sales remained strong in the fourth quarter on the strength of winter related products and from another long, hot summer. Sales grew 5.2% in the quarter versus last year, and were up nearly 10% for the full year due to a combination of favorable weather, successful pricing initiatives and overall strength in customer demand.

Consolidated operating profit for the quarter, excluding non-operational gains and losses, was 7.9%, in line with the fourth quarter of 2021. Pricing actions taken earlier in 2022, along with various cost reduction initiatives, largely offset ongoing inflationary pressures.

Consolidated operating profit for the full year, excluding non-operational gains and losses, finished at 8.2%, vs. 10.1% in 2021. As we’ve noted many times, 2021 was an anomaly year with many non-recurring benefits associated with emerging from COVID lockdowns while still operating in a very low interest rate environment. Our operating profit of 8.2% was more in line with historical trends despite incurring an additional $20.6 million of customer factoring costs, which negatively affected operating profit by 150 basis points as compared to 2021.

Mr. Sills added, “Today we are announcing our new operating segment, ‘Engineered Solutions’, along with the intent to rename the Engine Management segment to ‘Vehicle Control’. These segment changes, beginning in 2023, will better align the Company’s operating businesses with its strategic focus as well as provide greater clarity into how the Company is positioned to capture growth opportunities of the future.  Please see our separate press release on these changes, also distributed today, along with a supplementary presentation available on the Company’s Investor Relations website. We will discuss in more detail on today’s call.”

As we head into 2023, our outlook for the full year includes an expectation that sales will grow in the low single digits and Adjusted EBITDA will be approximately 10%.

In closing, Mr. Sills commented, “While there still remains uncertainty as it relates to the economy and various global dynamics, we believe our end markets’ resiliency and diversification should continue to afford opportunities for new wins and stable levels of growth throughout 2023 and into the future.”

Conference Call

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Wednesday, February 22, 2023.  This call will be web cast and can be accessed on the Investor Relations page of our website at www.smpcorp.com and clicking on the SMP Q4'22 Earnings Call Earnings Webcast link.  Investors may also listen to the call by dialing 800-343-1703 (domestic) or 785-424-1226 (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 800-723-1517 (domestic) or 402-220-2659 (international). The participant passcode is 73005.

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
DECEMBER 31,
    
TWELVE MONTHS ENDED
DECEMBER 31,
  
   
2022
    
2021
    
2022
    
2021
  
   
(Unaudited)
    
(Unaudited)
  
NET SALES
  
$
308,199
    
$
309,877
    
$
1,371,815
    
$
1,298,816
  
                                 
COST OF SALES
    
218,635
      
221,207
      
989,276
      
921,885
  
                                 
GROSS PROFIT
    
89,564
      
88,670
      
382,539
      
376,931
  
                                 
SELLING, GENERAL & ADMINISTRATIVE EXPENSES
    
72,075
      
64,231
      
276,626
      
247,547
  
RESTRUCTURING AND INTEGRATION EXPENSES
    
1,847
      
226
      
1,891
      
392
  
OTHER INCOME (EXPENSE), NET
    
70
      
(1
)
    
113
      
7
  
                                 
OPERATING INCOME
    
15,712
      
24,212
      
104,135
      
128,999
  
                                 
OTHER NON-OPERATING INCOME (EXPENSE), NET
    
(75
)
    
1,247
      
4,814
      
3,494
  
                                 
INTEREST EXPENSE
    
4,335
      
672
      
10,617
      
2,028
  
                                 
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
    
11,302
      
24,787
      
98,332
      
130,465
  
                                 
PROVISION FOR INCOME TAXES
    
2,799
      
4,729
      
25,206
      
31,044
  
                                 
EARNINGS FROM CONTINUING OPERATIONS
    
8,503
      
20,058
      
73,126
      
99,421
  
                                 
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES
    
(615
)
    
(1,328
)
    
(17,691
)
    
(8,467
)
                                 
NET EARNINGS
    
7,888
      
18,730
      
55,435
      
90,954
  
                                 
NET EARNINGS (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST
    
(45
)
    
36
      
84
      
68
  
                                 
NET EARNINGS ATTRIBUTABLE TO SMP (a)
  
$
7,933
    
$
18,694
    
$
55,351
    
$
90,886
  
                                 
                                 
NET EARNINGS ATTRIBUTABLE TO SMP
                                
EARNINGS FROM CONTINUING OPERATIONS
  
$
8,548
    
$
20,022
    
$
73,042
    
$
99,353
  
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES
    
(615
)
    
(1,328
)
    
(17,691
)
    
(8,467
)
TOTAL
  
$
7,933
    
$
18,694
    
$
55,351
    
$
90,886
  
                                 
                                 
NET EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SMP
                                
BASIC EARNINGS FROM CONTINUING OPERATIONS
  
$
0.40
    
$
0.91
    
$
3.37
    
$
4.49
  
DISCONTINUED OPERATION
    
(0.03
)
    
(0.06
)
    
(0.82
)
    
(0.39
)
NET EARNINGS PER COMMON SHARE - BASIC
  
$
0.37
    
$
0.85
    
$
2.55
    
$
4.10
  
                                 
                                 
DILUTED EARNINGS  FROM CONTINUING OPERATIONS
  
$
0.39
    
$
0.89
    
$
3.30
    
$
4.39
  
DISCONTINUED OPERATION
    
(0.03
)
    
(0.06
)
    
(0.80
)
    
(0.37
)
NET EARNINGS  PER COMMON SHARE - DILUTED
  
$
0.36
    
$
0.83
    
$
2.50
    
$
4.02
  
                                 
                                 
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
    
21,578,194
      
21,987,480
      
21,683,719
      
22,147,479
  
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES
    
22,030,263
      
22,485,032
      
22,139,981
      
22,616,456
  

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

STANDARD MOTOR PRODUCTS, INC.
Segment Revenues and Operating Profit

(In thousands)

   
THREE MONTHS ENDED
DECEMBER 31,
        
TWELVE MONTHS ENDED
DECEMBER 31,
      
   
2022
      
2021
        
2022
        
2021
      
   
(unaudited)
        
(unaudited)
      
Revenues
                                      
Ignition, Emission Control, Fuel & Safety
                                      
Related System Products
  
$
206,479
      
$
211,919
        
$
824,677
        
$
786,514
      
Wire and Cable
    
35,893
        
33,632
          
150,566
          
151,422
      
Engine Management
    
242,372
        
245,551
          
975,243
          
937,936
      
                                               
Compressors
    
28,981
        
28,666
          
222,532
          
206,697
      
Other Climate Control Parts
    
34,560
        
31,738
          
159,753
          
141,726
      
Temperature Control
    
63,541
        
60,404
          
382,285
          
348,423
      
                                               
All Other
    
2,286
        
3,922
          
14,287
          
12,457
      
Revenues
  
$
308,199
      
$
309,877
        
$
1,371,815
        
$
1,298,816
      
                                               
Gross Margin
                                              
Engine Management
  
$
69,099
   28.5 %

$
67,776
  
27.6
%
  
$
262,954
  
27.0
%
  
$
267,285
  
28.5
%
Temperature Control
    
16,675
   26.2 %

 
16,670
  
27.6
%
    
102,640
  
26.8
%
    
95,138
  
27.3
%
All Other
    
3,790
          
4,270
          
16,945
          
14,832
      
Subtotal
  
$
89,564
   29.1 %

$
88,716
  
28.6
%
  
$
382,539
  
27.9
%
  
$
377,255
  
29.0
%
One-Time Acquisition Costs
    
-
   0.0 %

 
(46
)
0.0
%
    
-
  
0.0
%
    
(324
)
0.0
%
Gross Margin
  
$
89,564
   29.1 %

$
88,670
  
28.6
%
  
$
382,539
  
27.9
%
  
$
376,931
  
29.0
%
                                                 
Selling, General & Administrative
                                                
Engine Management
  
$
42,644
   17.6 %

$
39,485
  
16.1
%
  
$
165,389
  
17.0
%
  
$
149,206
  
15.9
%
Temperature Control
    
14,436
   22.7 %

 
13,192
  
21.8
%
    
68,666
  
18.0
%
    
58,144
  
16.7
%
All Other
    
7,993
          
11,495
          
35,569
          
38,810
      
Subtotal
  
$
65,073
   21.1 %

$
64,172
  
20.7
%
  
$
269,624
  
19.7
%
  
$
246,160
  
19.0
%
Customer Bankruptcy Charge
    
7,002
   2.3 %

 
-
  
0.0
%
    
7,002
  
0.5
%
    
-
  
0.0
%
One-Time Acquisition Costs
    
-
   0.0 %

 
59
  
0.0
%
    
-
  
0.0
%
    
1,387
  
0.1
%
Selling, General & Administrative
  
$
72,075
   23.4 %

$
64,231
  
20.7
%
  
$
276,626
  
20.2
%
  
$
247,547
  
19.1
%
                                                 
                                                 
Operating Income
                                                
Engine Management
  
$
26,455
   10.9 %

$
28,291
  
11.5
%
  
$
97,565
  
10.0
%
  
$
118,079
  
12.6
%
Temperature Control
    
2,239
   3.5 %

 
3,478
  
5.8
%
    
33,974
  
8.9
%
    
36,994
  
10.6
%
All Other
    
(4,203
)
        
(7,225
)
        
(18,624
)
        
(23,978
)
    
Subtotal
  
$
24,491
   7.9 %

$
24,544
  
7.9
%
  
$
112,915
  
8.2
%
  
$
131,095
  
10.1
%
Customer Bankruptcy Charge
    
(7,002
)
 -2.3 %

 
-
  
0.0
%
    
(7,002
)
-0.5
%
    
-
  
0.0
%
One-Time Acquisition Costs
    
-
   0.0 %

 
(105
)
0.0
%
    
-
  
0.0
%
    
(1,711
)
-0.1
%
Restructuring & Integration
    
(1,847
)
 -0.6 %

 
(226
)
-0.1
%
    
(1,891
)
-0.1
%
    
(392
)
0.0
%
Other Income (Expense), Net
    
70
   0.0 %

 
(1
)
0.0
%
    
113
  
0.0
%
    
7
  
0.0
%
Operating Income
  
$
15,712
   5.1 %

$
24,212
  
7.8
%
  
$
104,135
  
7.6
%
  
$
128,999
  
9.9
%

STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures

(In thousands, except per share amounts)

   
THREE MONTHS ENDED
DECEMBER 31,
    
TWELVE MONTHS ENDED
DECEMBER 31,
  
   
2022
    
2021
    
2022
    
2021
  
   
(Unaudited)
    
(Unaudited)
  
EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP
                        
                         
GAAP EARNINGS FROM CONTINUING OPERATIONS
  
$
8,548
    
$
20,022
    
$
73,042
    
$
99,353
  
                                 
RESTRUCTURING AND INTEGRATION EXPENSES
    
1,847
      
226
      
1,891
      
392
  
CUSTOMER BANKRUPTCY CHARGE
    
7,002
      
-
      
7,002
      
-
  
ONE-TIME ACQUISITION COSTS
    
-
      
105
      
-
      
1,711
  
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD
    
-
      
-
      
(249
)
    
(259
)
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS
    
(2,301
)
    
(86
)
    
(2,312
)
    
(547
)
                                 
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS
  
$
15,096
    
$
20,267
    
$
79,374
    
$
100,650
  
                                 
                                 
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP
                                
                                 
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
  
$
0.39
    
$
0.89
    
$
3.30
    
$
4.39
  
                                 
RESTRUCTURING AND INTEGRATION EXPENSES
    
0.08
      
0.01
      
0.08
      
0.02
  
CUSTOMER BANKRUPTCY CHARGE
    
0.32
      
-
      
0.32
      
-
  
ONE-TIME ACQUISITION COSTS
    
-
      
-
      
-
      
0.07
  
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD
    
-
      
-
      
(0.01
)
    
(0.01
)
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS
    
(0.10
)
    
-
      
(0.10
)
    
(0.02
)
                                 
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
  
$
0.69
    
$
0.90
    
$
3.59
    
$
4.45
  
                                 
                                 
OPERATING INCOME
                                
                                 
GAAP OPERATING INCOME
  
$
15,712
    
$
24,212
    
$
104,135
    
$
128,999
  
                                 
RESTRUCTURING AND INTEGRATION EXPENSES
    
1,847
      
226
      
1,891
      
392
  
CUSTOMER BANKRUPTCY CHARGE
    
7,002
      
-
      
7,002
      
-
  
ONE-TIME ACQUISITION COSTS
    
-
      
105
      
-
      
1,711
  
OTHER (INCOME) EXPENSE, NET
    
(70
)
    
1
      
(113
)
    
(7
)
                                 
NON-GAAP OPERATING INCOME
  
$
24,491
    
$
24,544
    
$
112,915
    
$
131,095
  
                                 
EBITDA WITHOUT SPECIAL ITEMS
                                
                                 
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
  
$
11,302
    
$
24,787
    
$
98,332
    
$
130,465
  
                                 
DEPRECIATION AND AMORTIZATION
    
7,403
      
7,083
      
28,298
      
27,243
  
INTEREST EXPENSE
    
4,335
      
672
      
10,617
      
2,028
  
EBITDA
    
23,040
      
32,542
      
137,247
      
159,736
  
                                 
RESTRUCTURING AND INTEGRATION EXPENSES
    
1,847
      
226
      
1,891
      
392
  
CUSTOMER BANKRUPTCY CHARGE
    
7,002
      
-
      
7,002
      
-
  
ONE-TIME ACQUISITION COSTS
    
-
      
105
      
-
      
1,711
  
SPECIAL ITEMS
    
8,849
      
331
      
8,893
      
2,103
  
                                 
EBITDA WITHOUT SPECIAL ITEMS
  
$
31,889
    
$
32,873
    
$
146,140
    
$
161,839
  

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.
Condensed Consolidated Balance Sheets

(In thousands)

 
December 31,
2022
    
December 31,
2021
  
   
(Unaudited)
        
             
ASSETS
  
             
CASH
  
$
21,150
    
$
21,755
  
                 
ACCOUNTS RECEIVABLE, GROSS
    
173,013
      
186,774
  
ALLOWANCE FOR EXPECTED CREDIT LOSSES
    
5,375
      
6,170
  
ACCOUNTS RECEIVABLE, NET
    
167,638
      
180,604
  
                 
INVENTORIES
    
528,715
      
468,755
  
UNRETURNED CUSTOMER INVENTORY
    
19,695
      
22,268
  
OTHER CURRENT ASSETS
    
25,241
      
17,823
  
                 
TOTAL CURRENT ASSETS
    
762,439
      
711,205
  
                 
PROPERTY, PLANT AND EQUIPMENT, NET
    
107,148
      
102,786
  
OPERATING LEASE RIGHT-OF-USE ASSETS
    
49,838
      
40,469
  
GOODWILL
    
132,087
      
131,652
  
OTHER INTANGIBLES, NET
    
100,504
      
106,234
  
DEFERRED INCOME TAXES
    
33,658
      
36,126
  
INVESTMENT IN UNCONSOLIDATED AFFILIATES
    
41,745
      
44,087
  
OTHER ASSETS
    
27,510
      
25,402
  
                 
TOTAL ASSETS
  
$
1,254,929
    
$
1,197,961
  
                 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
  
                 
                 
CURRENT PORTION OF REVOLVING CREDIT FACILITY
  
$
50,000
    
$
125,298
  
CURRENT PORTION OF TERM LOAN AND OTHER DEBT
    
5,031
      
3,117
  
ACCOUNTS PAYABLE
    
89,247
      
137,167
  
ACCRUED CUSTOMER RETURNS
    
37,169
      
42,412
  
ACCRUED CORE LIABILITY
    
22,952
      
23,663
  
ACCRUED REBATES
    
37,381
      
42,472
  
PAYROLL AND COMMISSIONS
    
31,361
      
45,058
  
SUNDRY PAYABLES AND ACCRUED EXPENSES
    
49,990
      
57,182
  
                 
TOTAL CURRENT LIABILITIES
    
323,131
      
476,369
  
                 
OTHER LONG-TERM DEBT
    
184,589
      
21
  
NONCURRENT OPERATING LEASE LIABILITY
    
40,709
      
31,206
  
ACCRUED ASBESTOS LIABILITIES
    
63,305
      
52,698
  
OTHER LIABILITIES
    
22,157
      
25,040
  
                 
TOTAL LIABILITIES
    
633,891
      
585,334
  
                 
TOTAL SMP STOCKHOLDERS' EQUITY
    
610,020
      
601,580
  
NONCONTROLLING INTEREST
    
11,018
      
11,047
  
TOTAL STOCKHOLDERS' EQUITY
    
621,038
      
612,627
  
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  
$
1,254,929
    
$
1,197,961
  

STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Statements of Cash Flows

(In thousands)

   
TWELVE MONTHS ENDED
DECEMBER 31,
  
   
2022
    
2021
  
   
(Unaudited)
  
             
CASH FLOWS FROM OPERATING ACTIVITIES
            
             
NET EARNINGS
  
$
55,435
    
$
90,954
  
ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH
                
PROVIDED BY (USED IN) OPERATING ACTIVITIES:
                
DEPRECIATION AND AMORTIZATION
    
28,298
      
27,243
  
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAXES
    
17,691
      
8,467
  
CUSTOMER BANKRUPTCY CHARGE
    
7,002
      
-
  
OTHER
    
13,064
      
7,456
  
CHANGE IN ASSETS AND LIABILITIES:
                
ACCOUNTS RECEIVABLE
    
6,916
      
28,464
  
INVENTORY
    
(67,495
)
    
(107,609
)
ACCOUNTS PAYABLE
    
(48,604
)
    
33,046
  
PREPAID EXPENSES AND OTHER CURRENT ASSETS
    
(5,509
)
    
(843
)
SUNDRY PAYABLES AND ACCRUED EXPENSES
    
(29,089
)
    
13,430
  
OTHER
    
(5,242
)
    
(15,044
)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
    
(27,533
)
    
85,564
  
                 
                 
CASH FLOWS FROM INVESTING ACTIVITIES
                
                 
ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES
    
(1,934
)
    
(125,419
)
CAPITAL EXPENDITURES
    
(25,956
)
    
(25,875
)
OTHER INVESTING ACTIVITIES
    
73
      
45
  
NET CASH USED IN INVESTING ACTIVITIES
    
(27,817
)
    
(151,249
)
                 
                 
CASH FLOWS FROM FINANCING ACTIVITIES
                
                 
NET CHANGE IN DEBT
    
111,307
      
118,346
  
PURCHASE OF TREASURY STOCK
    
(29,656
)
    
(26,862
)
DIVIDENDS PAID
    
(23,428
)
    
(22,179
)
DIVIDENDS PAID TO NONCONTROLLING INTEREST
    
-
      
(540
)
PAYMENTS OF DEBT ISSUANCE COSTS
    
(2,128
)
    
-
  
OTHER FINANCING ACTIVITIES
    
(595
)
    
247
  
NET CASH PROVIDED BY FINANCING ACTIVITIES
    
55,500
      
69,012
  
                 
EFFECT OF EXCHANGE RATE CHANGES ON CASH
    
(755
)
    
(1,060
)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
    
(605
)
    
2,267
  
CASH AND CASH EQUIVALENTS at beginning of period
    
21,755
      
19,488
  
CASH AND CASH EQUIVALENTS at end of period
  
$
21,150
    
$
21,755
  


Exhibit 99.2

For Immediate Release

Standard Motor Products, Inc. Announces Segment Reporting Changes

New Engineered Solutions Segment Focused on Diverse Non-Aftermarket End Markets

Engine Management Segment Renamed Vehicle Control to Reflect Current Product Suite

Additional Details in Today’s Fourth Quarter Financial Results Call

New York, NY, February 22, 2023......Standard Motor Products, Inc. (NYSE: SMP) (the “Company”), a leading automotive parts manufacturer and distributor, today announced its new operating segment, “Engineered Solutions,” along with the intent to rename its Engine Management segment to “Vehicle Control”. These segment changes, beginning in 2023, will better align the Company’s operating categories with its strategic focus as well as provide greater clarity into how the Company is positioned to capture growth opportunities of the future. Management will discuss the resegmentation in depth during the Company’s fourth quarter and full year 2022 earnings call today at 11:00 AM Eastern Time. A revised investor presentation along with a supplementary resegmentation presentation are available on the Company’s Investor Relations website.

Highlights of the Resegmentation
 

 •
New Engineered Solutions segment will focus on non-Aftermarket end markets, including both on-highway (commercial and light vehicles) and off-highway (construction, agriculture, power sports, and other) applications
 

 •
Elevates overall growth profile and opportunity for the Company while also diversifying revenue mix and cash flow generation
 

 •
New segment will be carved from existing two segments, Engine Management and Temperature Control, which will now solely represent sales to Aftermarket channels
 

 •
Supports the Company’s ongoing focus as a best-in-class supplier of premium replacement parts products to the North American Aftermarket
 

 •
Offers clarity to the unique dynamics and margin profiles of the markets served by each segment with detailed segment financial reporting beginning in Q1’23
 

 •
Engine Management to be renamed “Vehicle Control” to reflect the expanding portfolio including powertrain-neutral product categories
 
“The resegmentation of Standard Motor Products marks an important development in our company’s 100-year history as a leader in vehicle technologies,” said Mr. Eric Sills, Standard Motor Products’ Chief Executive Officer and President. “I am pleased to unveil our three complementary business segments – Engineered Solutions, Vehicle Control, and Temperature Control – which will let SMP’s stakeholders better track the performance and focus of our business. These segments will allow us to penetrate diverse end markets while continuing to provide customers with best-in-class products and services.

“The Aftermarket has been and will continue to be the heart of our business. It is a robust industry demonstrating tremendous stability and resiliency and has a very bright future. Our value proposition of being the best full-line full-service supplier of premium products continues to be very well received by our broad customer base. We remain steadfastly committed to the Aftermarket as a primary driver of our business.

“Meanwhile, over the past several years we have aggressively grown our sales to non-Aftermarket customers, focusing on diverse on-highway and off-highway end markets.  We believe this has reached the critical mass to become a standalone operating segment.  Through strategic acquisitions and organic growth, we achieved 2022 sales of $270 million, and broadened our market access with expanded product capabilities, collective customer lists, and global reach. This combination will provide significant cross-selling opportunities which are beginning to bear fruit.  As we build our presence, we expect strong growth potential due to the diversity of the end markets and the breadth of our offerings and capabilities.

“Concurrent with the resegmentation, we are launching a new Engineered Solutions website, http://www.SMPEngineeredSolutions.com, which will provide customers with commercial and technical information, as well as a full suite of our product capabilities across all the industries and markets we serve.”

Additional detail on the three business segments:

Engineered Solutions –This new segment focuses on custom-engineered solutions to vehicle and equipment manufacturers across diverse global end markets, including both on-highway and off-highway applications such as commercial vehicles, construction and agricultural equipment, power sports, and others. Our offerings include product categories from both of our legacy operating segments and provide a broad array of conventional and future-oriented technologies, including those that are specific to vehicle electrification and those that are powertrain-neutral.

Vehicle Control – To more accurately reflect the evolution of the products and categories SMP offers, and the future areas of product growth including powertrain-neutral and electrification-specific offerings, the Company will rename its “Engine Management” segment to “Vehicle Control”. The three subcategories are:


 •
“Ignition, Emissions, & Fuel” will include internal combustion engine (ICE) related categories
 

 •
“Wire Sets & Other” will include spark plug wire sets and other related products
 

 •
“Electrical & Safety” will include non-ICE related conventional and evolving vehicle technologies
 
Temperature Control – This legacy Aftermarket business segment is poised to benefit from the broader adoption of more complex air conditioning systems that provide passenger comfort regardless of the vehicle’s powertrain propulsion, and from systems being developed to manage the temperature of batteries and other products used on electric vehicles. The two subcategories are:


 •
“A/C System Components” includes compressors, connecting lines, heat exchangers, and expansion devices which comprise the parts found in a vehicle’s air conditioning system
 

 •
“Other Thermal Components” includes parts that provide engine, transmission, electric drive motor, and battery temperature management

Conference Call
Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Wednesday, February 22, 2023.  This call will be web cast and can be accessed on the Investor Relations page of our website at www.smpcorp.com and clicking on the SMP Q4'22 Earnings Call Earnings Webcast link.  Investors may also listen to the call by dialing 800-343-1703 (domestic) or 785-424-1226 (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 800-723-1517 (domestic) or 402-220-2659 (international). The participant passcode is 73005.

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.

For more information, contact:
Anthony (Tony) Cristello
Standard Motor Products, Inc.
(972) 316-8107
[email protected]

Source: Standard Motor Products, Inc.


Exhibit 99.3

 Standard Motor Products, Inc.  Q4 Investor Presentation  February 22, 2023  1 
 
 Standard Motor Products, Inc.  Q4 Investor Presentation  February 22, 2023  1 
 
 Safe Harbor – Forward Looking Statements  2  You should be aware that except for historical information, the matters discussed herein are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements, including projections and anticipated levels of future performance, are based on current information and assumptions and involve risks and uncertainties which may cause actual results to differ materially from those discussed herein.   In addition, we use metrics such as Adjusted EBITDA and Income from Operations without Special Items throughout this presentation, which are non-GAAP measures.   You are urged to review all of our filings with the SEC and our press releases from time to time for details of risks and uncertainties that could cause future performance to vary from the expectations expressed or implied by the forward-looking statements herein and for certain reconciliations of GAAP to non-GAAP results.  
 
 Consistent Dividend Growth  Consistent Revenue Growth  2022 Sales Mix by Segment  SMP Corporate Snapshot  3  Founded:1919  HQ: Long Island City, NY  Locations: 32 Globally   Employees: 6,100*  2022 Financial Highlights  Revenue: $1.37B  Aftermarket: $1.1B  Vehicle Control $751M  Temperature Control: $351M  Engineered Solutions: $270M  EBITDA**: 10.7%  Dividend Yield: 2.8%  2022 EBITDA** Mix by Segment  *includes JVs  CAGR: 11%  * Dividend paid out for two quarters only due to COVID-19 pandemic  **reflects adjusted EBITDA which is a non-GAAP financial measure; see reconciliation in appendix 
 
 Global Footprint with Customer Adjacency   4 
 
 Strategy Overview  5 
 
 Automotive Aftermarket  Engineered Solutions  Sustainability &   Continuous Improvement  Capital Allocation  Continued leadership in North American Aftermarket  Best-in-class, full-line, full-service supplier of premium products within our categories  Innovative product solutions for multiple On-Highway and Off-Highway vehicle markets  Leveraging our diverse customer relationships, engineering capabilities, operational skills, and global footprint  Commitment to ongoing ESG and DEI initiatives  Operational excellence in manufacturing, product development, and supply chain  Capital investment supports future growth  Take advantage of opportunistic M&A  Effectively balance our use of debt and equity  Dividends and stock repurchases  Strategic Objectives  6 
 
 Aftermarket Snapshot  7  Aftermarket Net Sales  2022 Aftermarket Sales Mix  Nationally Recognized Brands  Supplier to All Major Distributors  Aftermarket EBITDA* & Margin%  *reflects adjusted EBITDA which is a non-GAAP financial measure; see reconciliation in appendix 
 
 8  To be the best full-line, full-service supplier of premium vehicle control and temperature control products  Value Proposition  Aftermarket Strategy  Our suite of products and services is designed to provide all the needed support for our customer and the technicians who install our parts 
 
 Source: 2023 Auto Care Factbook, 2022 S&P Global Mobility (formerly IHS Markit)   Favorable Aftermarket Industry Trends  9  Car Parc Continues to Age  U.S. Light Vehicle Parc  Number of Repairable Vehicles Continue to Climb  DIFM Revenue Continues to Grow  Source: Auto Care Association / Modern Tire Dealer  Source: Auto Care Association / IHS Markit  Source: Auto Care Association / IHS Markit  +3% increase  “Sweet Spot” a foundation for growth over next 5-10 years  Millions  Years 
 
 Committed to Growing Technologies  10  DEGREE OF COMPLEXITY  TECHNOLOGY EVOLUTION  SMP evolves to meet the advanced automotive technology of today and tomorrow  ADVANCED INTERNAL COMBUSTION ENGINE COMPONENTS   ADVANCED HEV, EV, AND POWERTRAIN-NEUTRAL COMPONENTS  POWER MANAGEMENT  COMMUNICATIONS  ADAS  ALTERNATIVE ENERGY  SENSORS  SWITCHES  IGNITION SYSTEM  EMISSION CONTROLS, VVT & EVAP SYSTEMS  DIESEL  FUEL SYSTEM  AIRFLOW MANAGEMENT  OIL TEMP CONTROL  VEHICLE ACTUATORS & MOTORS  A/C COMPONENTS  AUXILIARY COOLING  ELECTRIC & HYBRID COMPRESSORS  DOOR & WINDOW COMPONENTS  ADVANCED A/C COMPONENTS  HVAC ACTUATORS & MOTORS  ENGINE COOLING 
 
 Vehicle Control Segment  11  Ignition, Emission & Fuel   Electrical & Safety   Wire Sets & Other   Powertrain Neutral,  Hybrid & EV Specific  Traditional and Advanced ICE Categories  Variable Valve Timing Components  Ignition Coils  Turbochargers  Electronic Throttle Bodies  Gasoline and Diesel Injection  Emission Controls  Air & Fuel Sensors & Switches  Many other categories  Growing categories used on all vehicles regardless if they are gas, diesel, hybrid or electric  165+ Powertrain Neutral Categories  ADAS (Advance Driver Assist Systems)  TPMS Sensors  Electrical Connectors  Fluid Level & Temperature Sensors  Electrical Switches & Relays   Door, Trunk and Hood Lock Actuators  Hundreds of other categories  Conventional Wire & Cable categories for ICE vehicles   Ignition Wire Sets  Coil-on-Plug Boots  Wire Leads  Wire Terminals   $231M ‘22 Net Sales   31% of Segment  ICE-Related1  ICE-Related  $455M ‘22 Net Sales   60% of Segment  $66M ‘22 Net Sales   9% of Segment  1 ICE: Internal Combustion Engine  
 
 Temperature Control Segment  Favorably impacted by electrification  Most product categories are powertrain-neutral or electrification-specific   A/C Compressors transition to year-round operation (battery cooling)  12  Most interior heating and cooling components remain the same for ICE and Hybrid / EV vehicles   Fan Clutches  Electric Thermal Pumps  Battery Cooling Fan Motors  Liquid Cooled Heat Exchangers   Other Thermal Components  Provide engine, transmission, electric drive, and battery temperature management  A/C Compressors  Accumulators   Evaporators  Blend Door Actuators  Expansion Devices  A/C System Components  $245M Net Sales   (70% in 2022)   $106M Net Sales   (30% in 2022)  
 
 Engineered Solutions Snapshot  13  Commercial Vehicle - $80M   Light Vehicle - $92M   All Other - $56M   Construction / Agriculture - $42M   Engineered Solutions Net Sales  Engineered Solutions EBITDA & Margin%  *reflects adjusted EBITDA which is a non-GAAP financial measure; see reconciliation in appendix 
 
 Engineered Solutions Opportunities  14  Increasing Demand  Market Expansion  Growth  Collaboration  Broadens the Company’s target opportunities across multiple industries with new end markets  Sales driver as new segment has potential for expanded long-term growth rates  Supports and expands SMP’s Aftermarket position through sharing technologies and engineering expertise  2022 Global Sales   Diverse Customer Mix  *excludes non-controlled JV sales to third parties  Diversification  Diverse end markets, geographies, and customers  
 
 New Product Development  Diversification  Market Expansion  M&A Opportunities  Sales Support  Customer Service  Engineering  Technical Resources  Adaptable development and manufacturing for unique and specific requirements   Advanced quality systems  Committed to continuous improvement  Focused Growth  Global Reach with Local Support  Customizable Designs  World Class Manufacturing   An extensive portfolio of adaptable products and a global network of resources positioned to serve a diverse customer base   Engineered Solutions Strategy  15 
 
 16  Construction & Agriculture  Engineered Solutions Markets  Commercial Vehicle  Hydraulics & Industrial  Powersports  Light Vehicle  Outdoor Power Equipment 
 
 Engineered Solutions Products  17  Electronics  SMPEngineeredSolutions.com  Thermal Management  Sensors  Switches  Power Distribution  Ignition & Emission  Injection &   Fuel Delivery  Clamping 
 
 Optimized Supply Chain   Commitment to Manufacturing  Basic manufacturer with 12 manufacturing facilities  13 design and development centers  Diverse low-cost footprint  Global sourcing and supplier development   Expansive distribution network  Operational Excellence   Manufacturing by Geography  18 
 
 2013  2013  2014  2014  2014  2016  2017  2019  2019  2021  2021  2021  2022   Aftermarket                                          Engineered Solutions                                          New Products / Technology                                          Vertical Integration                                          Geographic Expansion                                         Strategic Acquisitions   19  Target technologies, products, and processes:  Align with our core competencies  Diversification plays in adjacent markets or technologies  Servicing common customers and markets  Consolidating competitors or suppliers  Synergistic product line carve-outs that enhance our capabilities  Vertical integration of key technologies 
 
 Sustainability  20  SMP is committed to ongoing ESG and DE&I initiatives  We believe in being a good corporate citizen  We are committed to our company, our employees, our shareholders, our business partners, and our communities  Environmental  Ambition to achieve net-zero by 2050  Established Scope 1 + Scope 2 GHG emission reduction targets  Expanded product offering to reduce emissions and improve fuel economy  Transitioning sales fleet to hybrid vehicles  Social  Increased diversity in hiring and promotion of our workforce  Safety protocols leading to low incidence of injuries  Financial support of community organizations, scholarship providers and Ukranian refugees  Employee development programs  Governance  Board of Directors oversight of ESG strategy  Increased diversity of our Board of Directors  Code of Ethics enforces a culture of compliance  Independently run whistle-blower hotline  Stock ownership guidelines align with shareholder interests 
 
 Return to Shareholders  21  Share Repurchase Program  * Dividend paid out for two quarters only due to COVID-19 pandemic  2011  2012  2013  2014  2015  2016  2017  2018  2019  2020  2021  2022   Period Total  Spend   ($000's)  $4,136   $4,999   $6,864   $10,000   $19,623   $377   $24,376   $14,886   $10,738   $13,482   $26,862   $29,656   $166,000  Shares   ($000's)  322  381  210  284  552  10  531  323  222  324  622  692  4,473  Avg. Price  $12.85   $13.13   $32.69   $35.18   $35.56   $37.24   $45.92   $46.12   $48.43   $41.63   $43.17   $42.86  $37.11  Quarterly Dividends 
 
 SMP Cash Utilization  22  Total Utilization  This is an image  Cash Allocation %  Capex & M&A  79%  59%  70%  35%  85%  43%  47%  66%  42%  76%  34%  Dividends & Repurchases  21%  41%  30%  65%  15%  57%  53%  34%  58%  24%  66% 
 
 Engineered Solutions provides diversified and fast growth potential across new opportunities  Strong financial results with healthy cash flow generation  Leader in Aftermarket with significant share; generating consistent annual growth  Longstanding business led by experienced management team  Commitment to corporate and social responsibility  Disciplined capital allocation strategy driving organic and inorganic growth with improving ROIC  Why Invest in SMP  23 
 
 Full Year 2022 Financial Results  24 
 
 Year-Over-Year Performance Measures  25  Consolidated Net Sales ($M)  Operating Profit  EBITDA ($M & % Net Sales)  ‡ Operating Profit, EBITDA and Diluted EPS shown without Special Items   UP 5.6%  $1,128.6  $1,298.8  Diluted EPS 
 
 Income Statement Non-GAAP  26 
 
 Condensed Balance Sheet  27 
 
 Condensed Statement of Cash Flows  28 
 
 Appendix  29 
 
 Reconciliation of GAAP and Non-GAAP Measures  30 
 
 Reconciliation of GAAP and Non-GAAP Measures (cont’d)  31 
 
 Thank you   For more information, contact:  Anthony (Tony) Cristello  Standard Motor Products, Inc.  (972) 316-8107  [email protected] 
 


Exhibit 99.4

 Standard Motor Products, Inc.  Resegmentation Announcement  February 22, 2023 
 
 Safe Harbor – Forward Looking Statements  2  You should be aware that except for historical information, the matters discussed herein are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements, including projections and anticipated levels of future performance, are based on current information and assumptions and involve risks and uncertainties which may cause actual results to differ materially from those discussed herein.   In addition, we use metrics such as Adjusted EBITDA and Income from Operations without Special Items throughout this presentation, which are non-GAAP measures.   You are urged to review all of our filings with the SEC and our press releases from time to time for details of risks and uncertainties that could cause future performance to vary from the expectations expressed or implied by the forward-looking statements herein and for certain reconciliations of GAAP to non-GAAP results.  
 
 Announcing New Operating Segment  Renaming the Engine Management Segment  To better align the Company’s operating categories with its strategic focus and more accurately reflect the evolution of the products and categories SMP offers  Providing Greater Clarity  Provides greater clarity into how the Company is positioned to capture growth opportunities including powertrain-neutral and electrification-specific offerings  New Alignment with Strategic Focus  This new segment focuses on custom designed parts for vehicle and equipment manufacturers (OEMs) across diverse global end markets  New Subcategories   Vehicle Control  3 
 
 Broadens the Company’s target opportunities for manufacturers across multiple industries with new end markets   Market Expansion   Sales driver as new segment has potential for long-term organic growth  Growth  Provides better visibility of the unique dynamics and margin profiles across segments   Clarity  Supports and expands SMP’s aftermarket position through sharing technologies and engineering expertise  Collaboration  Greater Visibility Into Our Performance  4 
 
 SMP Segment Transition Snapshot  5  Engine Management 73% Sales Mix  Prior 2022 Segments  New 2023 Segments (2022 Sales)  Temperature Control 27% Sales Mix  Vehicle Control  55% Total Sales Mix  Engineered Solutions   20% Total Sales Mix  Temperature Control  25% Total Sales Mix  Vehicle Control and Temperature Control are Aftermarket Only 
 
 Aftermarket Snapshot  6  Aftermarket Net Sales  2022 Aftermarket Sales Mix  Nationally Recognized Brands  Supplier to All Major Distributors  Aftermarket EBITDA* & Margin%  *reflects adjusted EBITDA which is a non-GAAP financial measure; see reconciliation in appendix 
 
 Engineered Solutions Snapshot  7  Commercial Vehicle - $80M   Light Vehicle - $92M   All Other - $56M   Construction / Agriculture - $42M   Engineered Solutions Net Sales  Engineered Solutions EBITDA* & Margin%  *reflects adjusted EBITDA which is a non-GAAP financial measure; see reconciliation in appendix 
 
 New Product Development  Diversification  Market Expansion  M&A Opportunities  Sales Support  Customer Service  Engineering  Technical Resources  Adaptable development and manufacturing for unique and specific requirements   Advanced quality systems  Committed to continuous improvement  Focused Growth  Global Reach with Local Support  Customizable Designs  World Class Manufacturing   An extensive portfolio of adaptable products and a global network of resources positioned to serve a diverse customer base   Engineered Solutions Strategy  8 
 
 Engineered Solutions provides diversified and fast growth potential across new opportunities  Strong financial results with healthy cash flow generation  Leader in Aftermarket with significant share; generating consistent annual growth  Longstanding business led by experienced management team  Commitment to corporate and social responsibility  Disciplined capital allocation strategy driving organic and inorganic growth with improving ROIC  Why Invest in SMP  9 
 
 Appendix 
 
 Segment Reporting - Annual Sales and Profit by Segment   11  2021  2022        Vehicle Control  Temperature Control  Engineered Solutions  Other  Total     Vehicle Control  Temperature Control  Engineered Solutions  Other  Total  Net Sales   737,431    324,080    237,305    -    1,298,816    750,571    351,237    270,007    -    1,371,815   Net Sales % of total  53.8%  23.6%  17.3%  100.0%  54.7%  25.6%  19.7%  100.0%  Gross Margin   238,790    91,738    46,727    -    377,255    232,267    98,913    51,359    -    382,539   32.4%  28.3%  19.7%  29.0%  30.9%  28.2%  19.0%  27.9%  Operating Expenses   141,373    61,664    26,421    16,702    246,160    151,596    70,192    32,646    15,190    269,624   19.2%  19.0%  11.1%  19.0%  20.2%  20.0%  12.1%  19.7%  Operating Profit      97,417    30,074    20,306    (16,702)   131,095       80,671    28,721    18,713    (15,190)   112,915   13.2%  9.3%  8.6%  10.1%  10.7%  8.2%  6.9%  8.2%  Adjusted EBITDA   111,234    35,461    30,136    (14,992)   161,839    95,961    33,593    30,465    (13,879)   146,140   15.1%  10.9%  12.7%  12.5%  12.8%  9.6%  11.3%  10.7%  Note: All operating results provided except for revenues are on a non-GAAP basis. See GAAP to non-GAAP reconciliation later in the Appendix.  Years ending December 31 
 
 Segment Reporting - Mix by Segment   12  2021  2022  Total Aftermarket - % by category  Q1'21  Q2'21  Q3'21  Q4'21  FY 2021        Q1'22  Q2'22  Q3'22  Q4'22  FY 2022  Ignition, Emissions & Fuel  44.6%  39.6%  37.0%  47.8%  41.8%  43.6%  38.3%  37.4%  47.4%  41.3%  Electrical & Safety  22.9%  19.2%  19.4%  23.8%  21.2%  20.9%  19.6%  20.3%  23.4%  20.9%  Wire Sets & Other  8.1%  6.0%  5.8%  6.3%  6.5%        6.3%  5.9%  5.1%  6.7%  5.9%   Vehicle Control Total  75.6%  64.9%  62.2%  77.9%  69.5%        70.8%  63.7%  62.7%  77.5%  68.1%  AC System Components  15.8%  27.5%  28.8%  12.4%  21.8%  18.9%  28.0%  28.7%  10.7%  22.3%  Other Thermal Components  8.6%  7.6%  9.0%  9.7%  8.7%        10.3%  8.2%  8.6%  11.8%  9.6%   Temperature Control Total  24.4%  35.1%  37.8%  22.1%  30.5%  29.2%  36.3%  37.3%  22.5%  31.9%  Aftermarket Total  100.0%  100.0%  100.0%  100.0%  100.0%        100.0%  100.0%  100.0%  100.0%  100.0%  Engineered Solutions - % by category  Commercial Vehicle  33.8%  29.4%  32.9%  32.4%  32.1%  29.6%  28.7%  29.1%  31.7%  29.7%  Construction / Agriculture  14.2%  13.4%  14.0%  14.5%  14.0%  15.1%  16.5%  16.6%  14.6%  15.7%  Light Vehicle  44.3%  43.4%  31.3%  29.9%  36.4%  36.0%  33.9%  32.3%  33.2%  33.9%  All Other  7.7%  13.9%  21.9%  23.2%  17.5%  19.3%  20.9%  22.0%  20.6%  20.7%  Total  100.0%  100.0%  100.0%  100.0%  100.0%        100.0%  100.0%  100.0%  100.0%  100.0%  Years ending December 31 
 
 Segment Reporting - Vehicle Control By Quarter  13  2021  2022  Q1'21  Q2'21  Q3'21  Q4'21  FY 2021  Q1'22  Q2'22  Q3'22  Q4'22  FY 2022  Ignition, Emissions & Fuel   $ 103,032    $ 112,107    $ 111,036    $ 118,021    $ 444,196    $ 109,149    $ 111,581    $ 117,750    $ 116,091    $ 454,571   Electrical & Safety   52,985    54,388    58,284    58,863    224,520    52,257    57,054    63,867    57,309    230,487   Wire Sets & Other   18,713    17,002    17,468    15,532    68,715    15,858    17,137    16,081    16,437    65,513    Net Sales   174,730    183,497    186,788    192,416    737,431    177,264    185,772    197,698    189,837    750,571   Gross Margin   58,008    59,126    59,292    62,364    238,790    55,424    53,728    60,350    62,765    232,267    Gross Margin %  33.2%  32.2%  31.7%  32.4%  32.4%  31.3%  28.9%  30.5%  33.1%  30.9%  Operating Expenses   33,481    35,910    35,902    36,080    141,373    35,039    37,679    39,229    39,649    151,596    Operating Expense %  19.2%  19.6%  19.2%  18.8%  19.2%  19.8%  20.3%  19.8%  20.9%  20.2%  Operating Profit   $ 24,527    $ 23,216    $ 23,390    $ 26,284    $ 97,417    $ 20,385    $ 16,049    $ 21,121    $ 23,116    $ 80,671    Operating Profit Margin %  14.0%  12.7%  12.5%  13.7%  13.2%  11.5%  8.6%  10.7%  12.2%  10.7%  Adjusted EBITDA   $ 28,739    $ 26,945    $ 26,493    $ 29,057    $ 111,234    $ 24,399    $ 19,776    $ 25,004    $ 26,782    $ 95,961    EBITDA %  16.4%  14.7%  14.2%  15.1%  15.1%  13.8%  10.6%  12.6%  14.1%  12.8%  Note: All operating results provided except for revenues are on a non-GAAP basis. See GAAP to non-GAAP reconciliation later in the Appendix.  Years ending December 31 
 
 Segment Reporting – Temperature Control By Quarter  14  Years ending December 31 
 
 Segment Reporting – Engineered Solutions By Quarter  15  Years ending December 31 
 
 Segment Reporting - Analysis by Quarter (Percent of Net Sales)  16  Years ending December 31 
 
 GAAP to Non-GAAP Reconciliations 
 
 18  GAAP to non-GAAP Reconciliation  Segment Reporting - Annual Sales and Profit by Segment  
 
 19  GAAP to non-GAAP Reconciliation  Segment Reporting - 2022 Quarterly Sales and Profit by Segment  
 
 20  GAAP to non-GAAP Reconciliation  Segment Reporting - 2021 Quarterly Sales and Profit by Segment  
 
 Thank you   For more information, contact:  Anthony (Tony) Cristello  Standard Motor Products, Inc.  (972) 316-8107  [email protected]