Standard Motor Products, Inc 8-K, filed Oct 27, 2023

Standard Motor Products, Inc. (SMP)

8-K 2023-10-27 For: 2023-10-27

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Added on April 04, 2026

About this 8-K

Standard Motor Products, Inc filed this 8-K on October 27, 2023.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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

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

	STANDARD MOTOR PRODUCTS, INC.

	By:	/s/ Nathan R. Iles
		Nathan R. Iles
		Chief Financial Officer

Date: October 27, 2023

Exhibit No.		Description


99.1		Press release dated October 27, 2023 announcing Standard Motor Products, Inc.’s financial results for the three months and nine months ended September 30, 2023.

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

(In thousands, except per share amounts)

	THREE MONTHS ENDED						NINE MONTHS ENDED
	SEPTEMBER 30,						SEPTEMBER 30,
	2023			2022			2023			2022
	(Unaudited)						(Unaudited)
NET SALES	$	386,413		$	381,373		$	1,067,516		$	1,063,616

COST OF SALES		271,653			274,589			760,220			770,641

GROSS PROFIT		114,760			106,784			307,296			292,975

SELLING, GENERAL & ADMINISTRATIVE EXPENSES		79,781			73,199			223,257			204,551
RESTRUCTURING AND INTEGRATION EXPENSES		177			-			1,383			44
OTHER INCOME, NET		4			30			74			43

OPERATING INCOME		34,806			33,615			82,730			88,423

OTHER NON-OPERATING INCOME, NET		1,732			1,513			2,759			4,889

INTEREST EXPENSE		3,621			3,656			10,766			6,282

EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES		32,917			31,472			74,723			87,030

PROVISION FOR INCOME TAXES		7,995			8,280			18,656			22,407

EARNINGS FROM CONTINUING OPERATIONS		24,922			23,192			56,067			64,623

LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES		(18,200	)		(14,294	)		(28,201	)		(17,076	)

NET EARNINGS		6,722			8,898			27,866			47,547

NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST		63			52			152			129

NET EARNINGS ATTRIBUTABLE TO SMP (a)	$	6,659		$	8,846		$	27,714		$	47,418

NET EARNINGS ATTRIBUTABLE TO SMP
EARNINGS FROM CONTINUING OPERATIONS	$	24,859		$	23,140		$	55,915		$	64,494
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES		(18,200	)		(14,294	)		(28,201	)		(17,076	)
TOTAL	$	6,659		$	8,846		$	27,714		$	47,418

NET EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SMP
BASIC EARNINGS FROM CONTINUING OPERATIONS	$	1.14		$	1.08		$	2.58		$	2.97
DISCONTINUED OPERATION		(0.83	)		(0.67	)		(1.30	)		(0.79	)
NET EARNINGS PER COMMON SHARE - BASIC	$	0.31		$	0.41		$	1.28		$	2.18

DILUTED EARNINGS FROM CONTINUING OPERATIONS	$	1.12		$	1.06		$	2.52		$	2.91
DISCONTINUED OPERATION		(0.82	)		(0.66	)		(1.27	)		(0.77	)
NET EARNINGS PER COMMON SHARE - DILUTED	$	0.30		$	0.40		$	1.25		$	2.14

WEIGHTED AVERAGE NUMBER OF COMMON SHARES		21,727,119			21,427,393			21,675,699			21,719,281
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES		22,253,723			21,847,602			22,198,131			22,153,348

(In thousands)
	THREE MONTHS ENDED								NINE MONTHS ENDED
	SEPTEMBER 30,								SEPTEMBER 30,
	2023				2022				2023				2022
	(Unaudited)								(Unaudited)
Revenues
Engine Management (Ignition, Emissions and Fuel Delivery)	$	113,188			$	117,750			$	342,860			$	338,480
Electrical and Safety		62,049				63,867				166,720				173,178
Wire sets and other		15,700				16,082				49,723				49,076
Vehicle Control		190,937				197,699				559,303				560,734

AC System Components		96,794				90,341				216,995				219,323
Other Thermal Components		26,849				27,080				76,128				76,793
Temperature Control		123,643				117,421				293,123				296,116

Commercial Vehicle		16,253				19,299				62,852				60,253
Construction / Agriculture		13,643				10,971				34,541				33,177
Light Vehicle		24,667				21,409				71,181				70,523
All Other		17,270				14,574				46,516				42,813
Engineered Solutions		71,833				66,253				215,090				206,766

Revenues	$	386,413			$	381,373			$	1,067,516			$	1,063,616

Gross Margin
Vehicle Control	$	60,865		31.9%	$	60,350		30.5%	$	179,446		32.1%	$	169,502		30.2%
Temperature Control		37,785		30.6%		35,105		29.9%		83,452		28.5%		83,908		28.3%
Engineered Solutions		16,110		22.4%		11,329		17.1%		44,398		20.6%		39,565		19.1%
All Other		-				-				-				-
Gross Margin	$	114,760		29.7%	$	106,784		28.0%	$	307,296		28.8%	$	292,975		27.5%

Selling, General & Administrative
Vehicle Control	$	42,752		22.4%	$	39,229		19.8%	$	124,308		22.2%	$	111,947		20.0%
Temperature Control		24,624		19.9%		21,716		18.5%		61,736		21.1%		55,834		18.9%
Engineered Solutions		8,832		12.3%		8,027		12.1%		25,222		11.7%		24,866		12.0%
All Other		3,573				4,227				11,991				11,904
Selling, General & Administrative	$	79,781		20.6%	$	73,199		19.2%	$	223,257		20.9%	$	204,551		19.2%

Operating Income
Vehicle Control	$	18,113		9.5%	$	21,121		10.7%	$	55,138		9.9%	$	57,555		10.3%
Temperature Control		13,161		10.6%		13,389		11.4%		21,716		7.4%		28,074		9.5%
Engineered Solutions		7,278		10.1%		3,302		5.0%		19,176		8.9%		14,699		7.1%
All Other		(3,573	)			(4,227	)			(11,991	)			(11,904	)
Subtotal	$	34,979		9.1%	$	33,585		8.8%	$	84,039		7.9%	$	88,424		8.3%
Restructuring & Integration		(177	)	0.0%		-		0.0%		(1,383	)	-0.1%		(44	)	0.0%
Other Income, Net		4		0.0%		30		0.0%		74		0.0%		43		0.0%
Operating Income	$	34,806		9.0%	$	33,615		8.8%	$	82,730		7.7%	$	88,423		8.3%

GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES	$	32,917	$	31,472	$	74,723	$	87,030	$	86,025	$	111,817	$	98,332

DEPRECIATION AND AMORTIZATION		7,332		7,002		21,461		20,895		28,864		27,978		28,298
INTEREST EXPENSE		3,621		3,656		10,766		6,282		15,101		6,954		10,617
EBITDA		43,870		42,130		106,950		114,207		129,990		146,749		137,247

RESTRUCTURING AND INTEGRATION EXPENSES		177		-		1,383		44		3,230		270		1,891
CUSTOMER BANKRUPTCY CHARGE		-		-		-		-		7,002		-		7,002
ONE-TIME ACQUISITION COSTS		-		-		-		-		-		105		-
SPECIAL ITEMS		177		-		1,383		44		10,232		375		8,893

EBITDA WITHOUT SPECIAL ITEMS	$	44,047	$	42,130	$	108,333	$	114,251	$	140,222	$	147,124	$	146,140

(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	%

(In thousands)	THREE MONTHS ENDED SEPTEMBER 30, 2022
	Vehicle Control			Temperature Control			Engineered Solutions			All Other			Consolidated
	(Unaudited)
OPERATING INCOME

GAAP OPERATING INCOME	$	21,151		$	13,389		$	3,302		$	(4,227	)	$	33,615

RESTRUCTURING AND INTEGRATION EXPENSES		-			-			-			-			-
OTHER INCOME, NET		(30	)		-			-			-			(30	)

NON-GAAP OPERATING INCOME	$	21,121		$	13,389		$	3,302		$	(4,227	)	$	33,585

EBITDA WITHOUT SPECIAL ITEMS

GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES	$	18,745		$	12,351		$	4,650		$	(4,274	)	$	31,472

DEPRECIATION AND AMORTIZATION		3,511			661			2,424			406			7,002
INTEREST EXPENSE		2,748			788			202			(82	)		3,656
EBITDA		25,004			13,800			7,276			(3,950	)		42,130

RESTRUCTURING AND INTEGRATION EXPENSES		-			-			-			-			-
SPECIAL ITEMS		-			-			-			-			-

EBITDA WITHOUT SPECIAL ITEMS	$	25,004		$	13,800		$	7,276		$	(3,950	)	$	42,130
% of Net Sales		12.6	%		11.8	%		11.0	%					11.0	%

(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	%

(In thousands)	NINE MONTHS ENDED SEPTEMBER 30, 2022
	Vehicle Control			Temperature Control			Engineered Solutions			All Other			Consolidated
	(Unaudited)
OPERATING INCOME

GAAP OPERATING INCOME	$	57,554		$	28,074		$	14,699		$	(11,904	)	$	88,423

RESTRUCTURING AND INTEGRATION EXPENSES		44			-			-			-			44
OTHER INCOME, NET		(43	)		-			-			-			(43	)

NON-GAAP OPERATING INCOME	$	57,555		$	28,074		$	14,699		$	(11,904	)	$	88,424

EBITDA WITHOUT SPECIAL ITEMS

GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES	$	54,039		$	28,895		$	16,178		$	(12,082	)	$	87,030

DEPRECIATION AND AMORTIZATION		10,419			2,083			7,177			1,216			20,895
INTEREST EXPENSE		4,676			1,354			487			(235	)		6,282
EBITDA		69,134			32,332			23,842			(11,101	)		114,207

RESTRUCTURING AND INTEGRATION EXPENSES		44			-			-			-			44
SPECIAL ITEMS		44			-			-			-			44

EBITDA WITHOUT SPECIAL ITEMS	$	69,178		$	32,332		$	23,842		$	(11,101	)	$	114,251
% of Net Sales		12.3	%		10.9	%		11.5	%					10.7	%

(In thousands)

	SEPTEMBER		SEPTEMBER		DECEMBER
	2023		2022		2022
	(Unaudited)		(Unaudited)

ASSETS

CASH AND CASH EQUIVALENTS	$	28,485	$	17,525	$	21,150

ACCOUNTS RECEIVABLE, GROSS		213,925		236,342		173,013
ALLOWANCE FOR EXPECTED CREDIT LOSSES		5,872		5,900		5,375
ACCOUNTS RECEIVABLE, NET		208,053		230,442		167,638

INVENTORIES		479,788		534,310		528,715
UNRETURNED CUSTOMER INVENTORY		21,847		21,485		19,695
OTHER CURRENT ASSETS		24,240		25,911		25,241

TOTAL CURRENT ASSETS		762,413		829,673		762,439

PROPERTY, PLANT AND EQUIPMENT, NET		113,012		104,199		107,148
OPERATING LEASE RIGHT-OF-USE ASSETS		99,067		47,168		49,838
GOODWILL		134,382		130,727		132,087
OTHER INTANGIBLES, NET		94,324		99,756		100,504
DEFERRED INCOME TAXES		36,455		34,484		33,658
INVESTMENT IN UNCONSOLIDATED AFFILIATES		22,909		42,648		41,745
OTHER ASSETS		37,368		30,071		27,510

TOTAL ASSETS	$	1,299,930	$	1,318,726	$	1,254,929


LIABILITIES AND STOCKHOLDERS' EQUITY


CURRENT PORTION OF REVOLVING CREDIT FACILITY	$	47,400	$	52,100	$	50,000
CURRENT PORTION OF TERM LOAN AND OTHER DEBT		5,026		6,036		5,031
ACCOUNTS PAYABLE		103,237		103,894		89,247
ACCRUED CUSTOMER RETURNS		48,556		53,857		37,169
ACCRUED CORE LIABILITY		19,778		23,845		22,952
ACCRUED REBATES		46,329		42,378		37,381
PAYROLL AND COMMISSIONS		31,718		37,539		31,361
SUNDRY PAYABLES AND ACCRUED EXPENSES		71,298		54,215		49,990

TOTAL CURRENT LIABILITIES		373,342		373,864		323,131

LONG-TERM DEBT		95,170		211,400		184,589
NONCURRENT OPERATING LEASE LIABILITY		88,186		38,618		40,709
ACCRUED ASBESTOS LIABILITIES		73,962		63,820		63,305
OTHER LIABILITIES		23,797		20,637		22,157

TOTAL LIABILITIES		654,457		708,339		633,891

TOTAL SMP STOCKHOLDERS' EQUITY		629,348		599,387		610,020
NONCONTROLLING INTEREST		16,125		11,000		11,018
TOTAL STOCKHOLDERS' EQUITY		645,473		610,387		621,038

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,299,930	$	1,318,726	$	1,254,929

(In thousands)

	NINE MONTHS ENDED
	SEPTEMBER 30,
	2023			2022
	(Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES

NET EARNINGS	$	27,866		$	47,547
ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES:
DEPRECIATION AND AMORTIZATION		21,461			20,895
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAXES		28,201			17,076
OTHER		4,701			8,828
CHANGE IN ASSETS AND LIABILITIES:
ACCOUNTS RECEIVABLE		(38,850	)		(51,887	)
INVENTORY		54,286			(75,300	)
ACCOUNTS PAYABLE		15,852			(31,844	)
PREPAID EXPENSES AND OTHER CURRENT ASSETS		2,916			(6,270	)
SUNDRY PAYABLES AND ACCRUED EXPENSES		12,345			3,807
OTHER		4,115			(8,327	)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		132,893			(75,475	)


CASH FLOWS FROM INVESTING ACTIVITIES

ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES		(3,954	)		-
CASH ACQUIRED IN STEP ACQUISITION		6,779			-
CAPITAL EXPENDITURES		(17,977	)		(19,499	)
OTHER INVESTING ACTIVITIES		95			12
NET CASH USED IN INVESTING ACTIVITIES		(15,057	)		(19,487	)


CASH FLOWS FROM FINANCING ACTIVITIES

NET CHANGE IN DEBT		(92,149	)		141,457
PURCHASE OF TREASURY STOCK		-			(29,656	)
DIVIDENDS PAID		(18,846	)		(17,602	)
PAYMENTS OF DEBT ISSUANCE COSTS		-			(2,128	)