For Immediate Release
|
|
For more information, contact:
|
|
Nathan Iles
|
|
Standard Motor Products, Inc.
|
|
(718) 392-0200
|
(In thousands, except per share amounts)
|
||||||||||||||||
THREE MONTHS ENDED
SEPTEMBER 30,
|
NINE MONTHS ENDED
SEPTEMBER 30,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
NET SALES
|
$
|
343,609
|
$
|
307,723
|
$
|
845,850
|
$
|
896,661
|
||||||||
COST OF SALES
|
235,861
|
215,635
|
603,349
|
637,705
|
||||||||||||
GROSS PROFIT
|
107,748
|
92,088
|
242,501
|
258,956
|
||||||||||||
SELLING, GENERAL & ADMINISTRATIVE EXPENSES
|
59,497
|
59,947
|
163,698
|
180,483
|
||||||||||||
RESTRUCTURING AND INTEGRATION EXPENSES
|
250
|
825
|
464
|
1,469
|
||||||||||||
OTHER EXPENSE, NET
|
37
|
12
|
31
|
15
|
||||||||||||
OPERATING INCOME
|
47,964
|
31,304
|
78,308
|
76,989
|
||||||||||||
OTHER NON-OPERATING INCOME, NET
|
514
|
225
|
592
|
2,282
|
||||||||||||
INTEREST EXPENSE
|
462
|
1,508
|
2,107
|
4,319
|
||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
|
48,016
|
30,021
|
76,793
|
74,952
|
||||||||||||
PROVISION FOR INCOME TAXES
|
11,804
|
7,367
|
19,118
|
18,639
|
||||||||||||
EARNINGS FROM CONTINUING OPERATIONS
|
36,212
|
22,654
|
57,675
|
56,313
|
||||||||||||
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES
|
(7,587
|
)
|
(7,903
|
)
|
(9,456
|
)
|
(9,914
|
)
|
||||||||
NET EARNINGS
|
$
|
28,625
|
$
|
14,751
|
$
|
48,219
|
$
|
46,399
|
||||||||
NET EARNINGS PER COMMON SHARE:
|
||||||||||||||||
BASIC EARNINGS FROM CONTINUING OPERATIONS
|
$
|
1.62
|
$
|
1.01
|
$
|
2.58
|
$
|
2.52
|
||||||||
DISCONTINUED OPERATION
|
(0.34
|
)
|
(0.35
|
)
|
(0.42
|
)
|
(0.44
|
)
|
||||||||
NET EARNINGS PER COMMON SHARE - BASIC
|
$
|
1.28
|
$
|
0.66
|
$
|
2.16
|
$
|
2.08
|
||||||||
DILUTED EARNINGS FROM CONTINUING OPERATIONS
|
$
|
1.59
|
$
|
1.00
|
$
|
2.53
|
$
|
2.47
|
||||||||
DISCONTINUED OPERATION
|
(0.33
|
)
|
(0.35
|
)
|
(0.41
|
)
|
(0.44
|
)
|
||||||||
NET EARNINGS PER COMMON SHARE - DILUTED
|
$
|
1.26
|
$
|
0.65
|
$
|
2.12
|
$
|
2.03
|
||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
|
22,349,093
|
22,329,835
|
22,372,466
|
22,359,637
|
||||||||||||
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES
|
22,758,458
|
22,754,440
|
22,795,426
|
22,814,228
|
(In thousands)
|
|||||||||||||||||||||||||
THREE MONTHS ENDED
SEPTEMBER 30,
|
NINE MONTHS ENDED
SEPTEMBER 30,
|
||||||||||||||||||||||||
2020
|
2019
|
2020
|
2019
|
||||||||||||||||||||||
(Unaudited)
|
(Unaudited)
|
||||||||||||||||||||||||
Revenues
|
|||||||||||||||||||||||||
Ignition, Emission Control, Fuel & Safety Related System
Products
|
$
|
190,891
|
$
|
180,826
|
$
|
498,204
|
$
|
538,718
|
|||||||||||||||||
Wire and Cable
|
38,663
|
35,147
|
105,621
|
108,486
|
|||||||||||||||||||||
Engine Management
|
229,554
|
215,973
|
603,825
|
647,204
|
|||||||||||||||||||||
Compressors
|
70,785
|
52,776
|
141,011
|
145,080
|
|||||||||||||||||||||
Other Climate Control Parts
|
39,608
|
35,525
|
93,216
|
96,551
|
|||||||||||||||||||||
Temperature Control
|
110,393
|
88,301
|
234,227
|
241,631
|
|||||||||||||||||||||
All Other
|
3,662
|
3,449
|
7,798
|
7,826
|
|||||||||||||||||||||
Revenues
|
$
|
343,609
|
$
|
307,723
|
$
|
845,850
|
$
|
896,661
|
|||||||||||||||||
Gross Margin
|
|||||||||||||||||||||||||
Engine Management
|
$
|
72,361
|
31.5%
|
$
|
66,264
|
30.7%
|
$
|
175,296
|
29.0%
|
$
|
189,737
|
29.3%
|
|
||||||||||||
Temperature Control
|
32,212
|
29.2%
|
22,973
|
26.0%
|
60,828
|
26.0%
|
61,715
|
25.5%
|
|
||||||||||||||||
All Other
|
3,175
|
2,851
|
6,377
|
7,504
|
|||||||||||||||||||||
Gross Margin
|
$
|
107,748
|
31.4%
|
$
|
92,088
|
29.9%
|
$
|
242,501
|
28.7%
|
$
|
258,956
|
28.9%
|
|
||||||||||||
Selling, General & Administrative
|
|||||||||||||||||||||||||
Engine Management
|
$
|
35,665
|
15.5%
|
$
|
35,950
|
16.6%
|
$
|
100,237
|
16.6%
|
$
|
110,723
|
17.1%
|
|
||||||||||||
Temperature Control
|
15,571
|
14.1%
|
15,495
|
17.5%
|
40,568
|
17.3%
|
45,033
|
18.6%
|
|
||||||||||||||||
All Other
|
8,261
|
8,502
|
22,893
|
24,727
|
|||||||||||||||||||||
Selling, General & Administrative
|
$
|
59,497
|
17.3%
|
$
|
59,947
|
19.5%
|
$
|
163,698
|
19.4%
|
$
|
180,483
|
20.1%
|
|
||||||||||||
Operating Income
|
|||||||||||||||||||||||||
Engine Management
|
$
|
36,696
|
16.0%
|
$
|
30,314
|
14.0%
|
$
|
75,059
|
12.4%
|
$
|
79,014
|
12.2%
|
|
||||||||||||
Temperature Control
|
16,641
|
15.1%
|
7,478
|
8.5%
|
20,260
|
8.6%
|
16,682
|
6.9%
|
|
||||||||||||||||
All Other
|
(5,086
|
)
|
(5,651
|
)
|
(16,516
|
)
|
(17,223
|
)
|
|||||||||||||||||
Subtotal
|
48,251
|
14.0%
|
32,141
|
10.4%
|
78,803
|
9.3%
|
78,473
|
8.8%
|
|
||||||||||||||||
Restructuring & Integration
|
(250
|
)
|
-0.1%
|
(825
|
)
|
-0.3%
|
(464
|
)
|
-0.1%
|
(1,469
|
)
|
-0.2%
|
|
||||||||||||
Other Expense, Net
|
(37
|
)
|
0.0%
|
(12
|
)
|
0.0%
|
(31
|
)
|
0.0%
|
(15
|
)
|
0.0%
|
|
||||||||||||
Operating Income
|
$
|
47,964
|
14.0%
|
$
|
31,304
|
10.2%
|
$
|
78,308
|
9.3%
|
$
|
76,989
|
8.6%
|
|
(In thousands, except per share amounts)
|
||||||||||||||||
THREE MONTHS ENDED
SEPTEMBER 30,
|
NINE MONTHS ENDED
SEPTEMBER 30,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
EARNINGS FROM CONTINUING OPERATIONS
|
||||||||||||||||
GAAP EARNINGS FROM CONTINUING OPERATIONS
|
$
|
36,212
|
$
|
22,654
|
$
|
57,675
|
$
|
56,313
|
||||||||
RESTRUCTURING AND INTEGRATION EXPENSES
|
250
|
825
|
464
|
1,469
|
||||||||||||
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD
|
(235
|
)
|
(144
|
)
|
(235
|
)
|
(144
|
)
|
||||||||
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS
|
(65
|
)
|
(214
|
)
|
(121
|
)
|
(382
|
)
|
||||||||
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS
|
$
|
36,162
|
$
|
23,121
|
$
|
57,783
|
$
|
57,256
|
||||||||
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
|
||||||||||||||||
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
|
$
|
1.59
|
$
|
1.00
|
$
|
2.53
|
$
|
2.47
|
||||||||
RESTRUCTURING AND INTEGRATION EXPENSES
|
0.01
|
0.04
|
0.02
|
0.06
|
||||||||||||
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD
|
(0.01
|
)
|
(0.01
|
)
|
(0.01
|
)
|
(0.01
|
)
|
||||||||
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS
|
-
|
(0.01
|
)
|
(0.01
|
)
|
(0.01
|
)
|
|||||||||
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
|
$
|
1.59
|
$
|
1.02
|
$
|
2.53
|
$
|
2.51
|
||||||||
OPERATING INCOME
|
||||||||||||||||
GAAP OPERATING INCOME
|
$
|
47,964
|
$
|
31,304
|
$
|
78,308
|
$
|
76,989
|
||||||||
RESTRUCTURING AND INTEGRATION EXPENSES
|
250
|
825
|
464
|
1,469
|
||||||||||||
OTHER EXPENSE, NET
|
37
|
12
|
31
|
15
|
||||||||||||
NON-GAAP OPERATING INCOME
|
$
|
48,251
|
$
|
32,141
|
$
|
78,803
|
$
|
78,473
|
(In thousands)
|
||||||||
SEPTEMBER 30,
|
DECEMBER 31,
|
|||||||
2020
|
2019
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
CASH
|
$
|
16,781
|
$
|
10,372
|
||||
ACCOUNTS RECEIVABLE, GROSS
|
244,106
|
140,728
|
||||||
ALLOWANCE FOR DOUBTFUL ACCOUNTS
|
6,061
|
5,212
|
||||||
ACCOUNTS RECEIVABLE, NET
|
238,045
|
135,516
|
||||||
INVENTORIES
|
311,390
|
368,221
|
||||||
UNRETURNED CUSTOMER INVENTORY
|
19,964
|
19,722
|
||||||
OTHER CURRENT ASSETS
|
10,094
|
15,602
|
||||||
TOTAL CURRENT ASSETS
|
596,274
|
549,433
|
||||||
PROPERTY, PLANT AND EQUIPMENT, NET
|
88,288
|
89,649
|
||||||
OPERATING LEASE RIGHT-OF-USE ASSETS
|
30,910
|
36,020
|
||||||
GOODWILL
|
77,681
|
77,802
|
||||||
OTHER INTANGIBLES, NET
|
58,543
|
64,861
|
||||||
DEFERRED INCOME TAXES
|
39,807
|
37,272
|
||||||
INVESTMENT IN UNCONSOLIDATED AFFILIATES
|
38,945
|
38,858
|
||||||
OTHER ASSETS
|
20,549
|
18,835
|
||||||
TOTAL ASSETS
|
$
|
950,997
|
$
|
912,730
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
NOTES PAYABLE
|
$
|
8,416
|
$
|
52,460
|
||||
CURRENT PORTION OF OTHER DEBT
|
3,580
|
4,456
|
||||||
ACCOUNTS PAYABLE
|
79,260
|
92,535
|
||||||
ACCRUED CUSTOMER RETURNS
|
75,279
|
44,116
|
||||||
ACCRUED CORE LIABILITY
|
19,981
|
24,357
|
||||||
OTHER CURRENT LIABILITIES
|
117,298
|
91,540
|
||||||
TOTAL CURRENT LIABILITIES
|
303,814
|
309,464
|
||||||
OTHER LONG-TERM DEBT
|
103
|
129
|
||||||
NONCURRENT OPERATING LEASE LIABILITIES
|
23,452
|
28,376
|
||||||
ACCRUED ASBESTOS LIABILITIES
|
53,164
|
49,696
|
||||||
OTHER LIABILITIES
|
25,560
|
20,837
|
||||||
TOTAL LIABILITIES
|
406,093
|
408,502
|
||||||
TOTAL STOCKHOLDERS’ EQUITY
|
544,904
|
504,228
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
950,997
|
$
|
912,730
|
(In thousands)
|
||||||||
NINE MONTHS ENDED
SEPTEMBER 30,
|
||||||||
2020
|
2019
|
|||||||
(Unaudited)
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
NET EARNINGS
|
$
|
48,219
|
$
|
46,399
|
||||
ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH
|
||||||||
PROVIDED BY OPERATING ACTIVITIES:
|
||||||||
DEPRECIATION AND AMORTIZATION
|
19,313
|
19,261
|
||||||
OTHER
|
19,098
|
21,623
|
||||||
CHANGE IN ASSETS AND LIABILITIES:
|
||||||||
ACCOUNTS RECEIVABLE
|
(104,020
|
)
|
(16,583
|
)
|
||||
INVENTORIES
|
53,330
|
11,824
|
||||||
ACCOUNTS PAYABLE
|
(13,117
|
)
|
(24,107
|
)
|
||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS
|
5,634
|
(6,502
|
)
|
|||||
SUNDRY PAYABLES AND ACCRUED EXPENSES
|
51,867
|
(2,551
|
)
|
|||||
OTHER
|
(1,719
|
)
|
(6,260
|
)
|
||||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
78,605
|
43,104
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES
|
-
|
(43,490
|
)
|
|||||
NET PROCEEDS FROM SALE OF FACILITY
|
-
|
4,801
|
||||||
CAPITAL EXPENDITURES
|
(13,170
|
)
|
(12,329
|
)
|
||||
OTHER INVESTING ACTIVITIES
|
14
|
47
|
||||||
NET CASH USED IN INVESTING ACTIVITIES
|
(13,156
|
)
|
(50,971
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
NET CHANGE IN DEBT
|
(44,852
|
)
|
34,656
|
|||||
PURCHASE OF TREASURY STOCK
|
(8,726
|
)
|
(10,738
|
)
|
||||
DIVIDENDS PAID
|
(5,615
|
)
|
(15,429
|
)
|
||||
OTHER FINANCING ACTIVITIES
|
86
|
1,109
|
||||||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
(59,107
|
)
|
9,598
|
|||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
67
|
390
|
||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
6,409
|
2,121
|
||||||
CASH AND CASH EQUIVALENTS at beginning of Period
|
10,372
|
11,138
|
||||||
CASH AND CASH EQUIVALENTS at end of Period
|
$
|
16,781
|
$
|
13,259
|