Standard Motor Products, Inc. Announces Third Quarter 2023 Results and Quarterly Dividend

Rhea-AI Summary

Standard Motor Products reports Q3 2023 financial results with net sales of $386.4 million, a 1.3% increase compared to Q3 2022. Earnings from continuing operations were $24.9 million or $1.12 per diluted share. Consolidated net sales for the nine months ended September 30, 2023, were $1.07 billion. Mr. Eric Sills, CEO, stated that sales rebounded in Q3 after a sluggish Q2 and that the company expects flat to low-single digit sales growth for the full year 2023.

Positive

• Standard Motor Products reports Q3 2023 net sales of $386.4 million, a 1.3% increase compared to Q3 2022.
• Earnings from continuing operations for Q3 2023 were $24.9 million or $1.12 per diluted share.
• Consolidated net sales for the nine months ended September 30, 2023, were $1.07 billion.
• CEO Eric Sills expects flat to low-single digit sales growth for the full year 2023.

Negative

• None.

NEW YORK, Oct. 27, 2023 /PRNewswire/ -- Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, reported today its consolidated financial results for the three and nine months ended September 30, 2023.

Net sales for the third quarter of 2023 were $386.4 million, compared to consolidated net sales of $381.4 million during the comparable quarter in 2022. Earnings from continuing operations for the third quarter of 2023 were $24.9 million or $1.12 per diluted share, compared to $23.1 million or $1.06 per diluted share in the third quarter of 2022. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the third quarter of 2023 were $24.7 million or $1.11 per diluted share, compared to $22.9 million or $1.05 per diluted share in the third quarter of 2022.

Consolidated net sales for the nine months ended September 30, 2023, were $1.07 billion, compared to consolidated net sales of $1.06 billion during the comparable period in 2022.  Earnings from continuing operations for the nine months ended September 30, 2023, were $55.9 million or $2.52 per diluted share, compared to $64.5 million or $2.91 per diluted share in the comparable period of 2022.  Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the nine months ended September 30, 2023 and 2022 were $56.6 million or $2.55 per diluted share and $64.3 million or $2.90 per diluted share, respectively. 

Mr. Eric Sills, Standard Motor Products' Chief Executive Officer and President, stated, "We are pleased with our third quarter results as our sales rebounded after a sluggish second quarter with the return of hot summer weather.  Overall, sales increased 1.3% over last year's strong third quarter, while year-to-date we are roughly flat compared to 2022. The third quarter was again influenced by the recent bankruptcy of a large aftermarket customer, and while the business has since been acquired by other SMP accounts, we believe it will take some time to return to historical demand as the business gets fully digested."   

By segment, Vehicle Control sales were down 3.4% in the quarter against a difficult comparison of nearly 6% growth last year, and are relatively flat on a year-to-date basis.  The segment was negatively impacted by the previously discussed customer bankruptcy, as well as by certain 2022 customer pipeline orders that did not recur this year.

Thanks to a warm summer, Temperature Control sales increased 5.3% on top of the record sales experienced during the same quarter last year. However, a cool spring caused a slow start to the season, and we remain down slightly by 1.0% year-to-date against a difficult comparison.

Our Engineered Solutions segment sales increased 8.4% in the quarter due to solid demand from our existing customers as well as new business wins. Our team continues to foster relationships and bid on new business opportunities as we gain traction with our expanded customer base and take advantage of cross-selling opportunities. 

Looking at profitability, consolidated non-GAAP operating margins were 9.1% in the quarter, 30 basis points better than the 8.8% in the third quarter last year.  Our margin improvement benefited from measures to offset inflationary pressures, including price and cost containment actions, and we will continue to try to find ways to drive margin performance going forward.  During the quarter, our operating income was impacted by a $4.0 million (or 100 basis point) increase in customer factoring program expense over last year due to elevated interest rates.  On the bottom line, Adjusted EBITDA and earnings per share were up primarily due to the higher sales performance in Temperature Control and Engineered Solutions, despite headwinds from the impact of higher interest rates both on our customer factoring programs and on our borrowings. 

From a cash flow perspective, we were pleased with the impact of our initiatives on reducing both our inventory and borrowing levels.  At quarter-end, our inventory was $479.8 million, down from $528.7 million at year-end 2022 and $534.3 million in last year's third quarter.  Additionally, our total debt at quarter-end stood at $147.6 million as we paid down $75.6 million in the third quarter.    

Regarding our full year expectations for 2023, we anticipate top line sales growth to be flat to low-single digit, and our Adjusted EBITDA to be approximately 9.5% of revenue.  This outlook considers higher expense related to customer factoring programs that will be roughly $48-$50 million at current implied rates, as well as the impact of startup costs and duplicate overhead expense associated with the new distribution center discussed last quarter.

The Board of Directors has approved payment of a quarterly dividend of 29 cents per share on the common stock outstanding, which will be paid on December 1, 2023 to stockholders of record on November 15, 2023. 

In closing, Mr. Sills commented, "Moving into the last quarter of the year there continue to be near-term headwinds including inflationary pressures, interest rate uncertainty, and increasing economic challenges facing consumers.  That said, aftermarket fundamentals remain strong, and continued progress in our new Engineered Solutions segment presents exciting opportunities.  We want to thank all our employees for our current success and helping us achieve our goals for the future."

Conference Call

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Friday October 27, 2023.  This call will be webcast and can be accessed on our website at www.smpcorp.com and clicking on the SMP 3Q 2023 Earnings Webcast linkSMP 3Q 2023.  Investors may also listen to the call by dialing 800-245-3047 (domestic) or 203-518-9783 (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 888-269-5331(domestic) or 402-220-7327 (international). The participant passcode is 94640.

Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Standard Motor Products cautions investors that any forward-looking statements made by the company, including those that may be made in this press release, are based on management's expectations at the time they are made, but they are subject to risks and uncertainties that may cause actual results, events or performance to differ materially from those contemplated by such forward looking statements. Among the factors that could cause actual results, events or performance to differ materially from those risks and uncertainties discussed in this press release are those detailed from time-to-time in prior press releases and in the company's filings with the Securities and Exchange Commission, including the company's annual report on Form 10-K and quarterly reports on Form 10-Q.  By making these forward-looking statements, Standard Motor Products undertakes no obligation or intention to update these statements after the date of this release.

 

STANDARD MOTOR PRODUCTS, INC.
Consolidated Statements of Operations
(In thousands, except per share amounts)
		THREE MONTHS ENDED						NINE MONTHS ENDED
		SEPTEMBER 30,						SEPTEMBER 30,
		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
(a) "SMP" refers to Standard Motor Products, Inc. and subsidiaries.

 

STANDARD MOTOR PRODUCTS, INC.
Segment Revenues and Operating Profit
(In thousands)
		THREE MONTHS ENDED						NINE MONTHS ENDED
		SEPTEMBER 30,						SEPTEMBER 30,
		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 %

 

STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures
(In thousands, except per share amounts)
		THREE MONTHS ENDED				NINE MONTHS ENDED
		SEPTEMBER 30,				SEPTEMBER 30,
		2023		2022		2023		2022
		(Unaudited)				(Unaudited)
EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP
GAAP EARNINGS FROM CONTINUING OPERATIONS		$          24,859		$          23,140		$          55,915		$          64,494
RESTRUCTURING AND INTEGRATION EXPENSES		177		-		1,383		44
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD		(312)		(249)		(312)		(249)
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS		(46)		-		(360)		(11)
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS		$          24,678		$          22,891		$          56,626		$          64,278
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS		$             1.12		$             1.06		$             2.52		$             2.91
RESTRUCTURING AND INTEGRATION EXPENSES		-		-		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		-		-		(0.02)		-
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS		$             1.11		$             1.05		$             2.55		$             2.90
OPERATING INCOME
GAAP OPERATING INCOME		$          34,806		$          33,615		$          82,730		$          88,423
RESTRUCTURING AND INTEGRATION EXPENSES		177		-		1,383		44
OTHER INCOME, NET		(4)		(30)		(74)		(43)		LAST TWELVE MONTHS ENDED				YEAR ENDED
										SEPTEMBER 30,				DECEMBER 31,
NON-GAAP OPERATING INCOME		$          34,979		$          33,585		$          84,039		$          88,424		2023		2022		2022
										(Unaudited)
EBITDA WITHOUT SPECIAL ITEMS
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

MANAGEMENT BELIEVES THAT NON-GAAP EARNINGS FROM CONTINUING OPERATIONS AND NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS WHICH ARE ATTRIBUTABLE TO SMP, AND NON-GAAP OPERATING INCOME AND EBITDA WITHOUT SPECIAL ITEMS, EACH OF WHICH ARE NON-GAAP MEASUREMENTS AND ARE ADJUSTED FOR SPECIAL ITEMS, ARE MEANINGFUL TO INVESTORS BECAUSE THEY PROVIDE A VIEW OF THE COMPANY WITH RESPECT TO ONGOING OPERATING RESULTS.  SPECIAL ITEMS REPRESENT SIGNIFICANT CHARGES OR CREDITS THAT ARE IMPORTANT TO AN UNDERSTANDING OF THE COMPANY'S OVERALL OPERATING RESULTS IN THE PERIODS PRESENTED. SUCH NON-GAAP MEASUREMENTS ARE NOT RECOGNIZED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND SHOULD NOT BE VIEWED AS AN ALTERNATIVE TO GAAP MEASURES OF PERFORMANCE.

 

STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures by Segments
(In thousands)		THREE MONTHS ENDED SEPTEMBER 30, 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 %

MANAGEMENT BELIEVES THAT NON-GAAP OPERATING INCOME AND EBITDA WITHOUT SPECIAL ITEMS, EACH OF WHICH ARE NON-GAAP MEASUREMENTS AND ARE ADJUSTED FOR SPECIAL ITEMS, ARE MEANINGFUL TO INVESTORS BECAUSE THEY PROVIDE A VIEW OF THE COMPANY WITH RESPECT TO ONGOING OPERATING RESULTS.  SPECIAL ITEMS REPRESENT SIGNIFICANT CHARGES OR CREDITS THAT ARE IMPORTANT TO AN UNDERSTANDING OF THE COMPANY'S OVERALL OPERATING RESULTS IN THE PERIODS PRESENTED. SUCH NON-GAAP MEASUREMENTS ARE NOT RECOGNIZED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND SHOULD NOT BE VIEWED AS AN ALTERNATIVE TO GAAP MEASURES OF PERFORMANCE.

 

STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures by Segments
(In thousands)		NINE MONTHS ENDED SEPTEMBER 30, 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 %

MANAGEMENT BELIEVES THAT NON-GAAP OPERATING INCOME AND EBITDA WITHOUT SPECIAL ITEMS, EACH OF WHICH ARE NON-GAAP MEASUREMENTS AND ARE ADJUSTED FOR SPECIAL ITEMS, ARE MEANINGFUL TO INVESTORS BECAUSE THEY PROVIDE A VIEW OF THE COMPANY WITH RESPECT TO ONGOING OPERATING RESULTS.  SPECIAL ITEMS REPRESENT SIGNIFICANT CHARGES OR CREDITS THAT ARE IMPORTANT TO AN UNDERSTANDING OF THE COMPANY'S OVERALL OPERATING RESULTS IN THE PERIODS PRESENTED. SUCH NON-GAAP MEASUREMENTS ARE NOT RECOGNIZED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND SHOULD NOT BE VIEWED AS AN ALTERNATIVE TO GAAP MEASURES OF PERFORMANCE.

 

STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Balance Sheets
(In thousands)
		SEPTEMBER		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

 

STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Statements of Cash Flows
	(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)
	OTHER FINANCING ACTIVITIES	(2)			(54)
	NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(110,997)			92,017
	EFFECT OF EXCHANGE RATE CHANGES ON CASH	496			(1,285)
	NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	7,335			(4,230)
	CASH AND CASH EQUIVALENTS at beginning of period	21,150			21,755
	CASH AND CASH EQUIVALENTS at end of period	$       28,485			$       17,525

 

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SOURCE Standard Motor Products, Inc

FAQ

What were the net sales for Q3 2023?

Net sales for Q3 2023 were $386.4 million.

What were the earnings from continuing operations for Q3 2023?

Earnings from continuing operations for Q3 2023 were $24.9 million or $1.12 per diluted share.

What were the consolidated net sales for the nine months ended September 30, 2023?

Consolidated net sales for the nine months ended September 30, 2023, were $1.07 billion.

What sales growth does the CEO expect for the full year 2023?

The CEO expects flat to low-single digit sales growth for the full year 2023.