Standard Motor Products, Inc. Announces Third Quarter 2024 Results and Quarterly Dividend
Standard Motor Products (SMP) reported strong Q3 2024 results with net sales of $399.3 million, up 3.3% year-over-year. Adjusted diluted EPS increased 15% to $1.28, while Adjusted EBITDA improved by 80 basis points to 12.2%. All three operating segments showed growth: Vehicle Control sales up 5.2%, Temperature Control up 1.9%, and Engineered Solutions up nearly 1%. Year-to-date sales reached $1.12 billion, up 5.0% compared to 2023. The company maintains its full-year 2024 guidance expecting low- to mid-single-digit sales growth and Adjusted EBITDA of 9.0-9.5%. The pending Nissens Automotive acquisition received final regulatory approvals and is expected to close soon.
Standard Motor Products (SMP) ha riportato forti risultati per il terzo trimestre del 2024, con vendite nette di $399,3 milioni, in crescita del 3,3% rispetto all'anno precedente. L'EPS diluito rettificato è aumentato del 15% a $1,28, mentre l'EBITDA rettificato è migliorato di 80 punti base, raggiungendo il 12,2%. Tutti e tre i segmenti operativi hanno mostrato crescita: vendite del Controllo Veicolo in aumento del 5,2%, Controllo della Temperatura in aumento dell'1,9% e Soluzioni Ingegnerizzate in crescita di quasi l'1%. Le vendite dall'inizio dell'anno hanno raggiunto $1,12 miliardi, in aumento del 5,0% rispetto al 2023. L'azienda mantiene le sue previsioni per l'intero anno 2024, prevedendo una crescita delle vendite bassa o a una cifra media e un EBITDA rettificato compreso tra il 9,0% e il 9,5%. L'acquisizione in sospeso di Nissens Automotive ha ricevuto le approvazioni normative finali e si prevede che si chiuda a breve.
Standard Motor Products (SMP) informó resultados sólidos para el tercer trimestre de 2024, con ventas netas de $399,3 millones, un aumento del 3,3% en comparación con el año anterior. El EPS diluido ajustado aumentó un 15% a $1,28, mientras que el EBITDA ajustado mejoró en 80 puntos base, alcanzando el 12,2%. Los tres segmentos operativos mostraron crecimiento: ventas de Control de Vehículos aumentaron un 5,2%, Control de Temperatura un 1,9%, y Soluciones Ingenierizadas casi un 1%. Las ventas acumuladas hasta la fecha alcanzaron $1,12 mil millones, un aumento del 5,0% en comparación con 2023. La empresa mantiene su pronóstico para todo el año 2024, esperando un crecimiento en ventas de uno a tres dígitos y un EBITDA ajustado del 9,0% al 9,5%. La adquisición pendiente de Nissens Automotive recibió las aprobaciones regulatorias finales y se espera que se cierre pronto.
스탠다드 모터 제품 (SMP)는 2024년 3분기 강력한 실적을 보고했으며, 순매출은 $399.3 백만으로 전년 대비 3.3% 상승했습니다. 조정된 희석 EPS는 15% 증가하여 $1.28에 이르렀으며, 조정된 EBITDA는 80베이시스 포인트 상승하여 12.2%에 도달했습니다. 모든 운영 부문에서 성장세를 보였으며: 차량 제어 매출은 5.2% 증가, 온도 제어는 1.9% 증가, 엔지니어링 솔루션은 거의 1% 증가했습니다. 연초부터의 총 매출은 $1.12 십억으로 2023년 대비 5.0% 증가했습니다. 이 회사는 2024년 전체 연도 가이드를 유지하며, 저단위에서 중단위의 매출 성장을 예상하고 조정된 EBITDA는 9.0-9.5%로 예상하고 있습니다. 보류 중인 니센스 자동차 인수는 최종 규제 승인을 받았으며, 곧 마무리될 것으로 예상됩니다.
Standard Motor Products (SMP) a annoncé de solides résultats pour le troisième trimestre 2024, avec un chiffre d'affaires net de $399,3 millions, en hausse de 3,3 % par rapport à l'année précédente. Le BAIIA dilué ajusté a augmenté de 15 % pour atteindre $1,28, tandis que le BAIIA ajusté s'est amélioré de 80 points de base à 12,2 %. Les trois segments d'activité ont montré une croissance : les ventes du contrôle des véhicules ont augmenté de 5,2 %, le contrôle de la température de 1,9 % et les solutions d'ingénierie d'environ 1 %. Les ventes depuis le début de l'année ont atteint $1,12 milliard, en hausse de 5,0 % par rapport à 2023. L'entreprise maintient ses prévisions pour l'année 2024, s'attendant à une croissance des ventes à un chiffre bas à moyen et un BAIIA ajusté de 9,0 à 9,5 %. L'acquisition de Nissens Automotive en attente a reçu les approbations réglementaires finales et devrait être finalisée bientôt.
Standard Motor Products (SMP) berichtete starke Ergebnisse für das 3. Quartal 2024 mit Nettoumsätzen von $399,3 Millionen, was einem Anstieg von 3,3 % im Jahresvergleich entspricht. Der bereinigte verwässerte EPS stieg um 15 % auf $1,28, während das bereinigte EBITDA um 80 Basispunkte auf 12,2 % verbessert wurde. Alle drei Betriebssparten zeigten Wachstum: Umsatz im Fahrzeugkontrollbereich stieg um 5,2 %, im Temperaturkontrollbereich um 1,9 % und im Bereich der technischen Lösungen um nahezu 1 %. Die Verkäufe seit Jahresbeginn betrugen $1,12 Milliarden, was einem Anstieg von 5,0 % im Vergleich zu 2023 entspricht. Das Unternehmen hält an seiner Prognose für das Gesamtjahr 2024 fest und erwartet ein Wachstum der Umsätze im niedrigen bis mittleren einstelligen Bereich sowie ein bereinigtes EBITDA von 9,0-9,5 %. Die ausstehende Übernahme von Nissens Automotive erhielt die endgültigen behördlichen Genehmigungen und soll bald abgeschlossen werden.
- Net sales increased 3.3% to $399.3M in Q3 2024
- Adjusted diluted EPS grew 15% to $1.28
- Adjusted EBITDA improved by 80 basis points to 12.2%
- All three operating segments showed sales growth
- Total debt reduced by $13.4M from year-end
- Inventory levels decreased from $507.1M to $503.0M
- Nine-month earnings per diluted share decreased from $2.52 to $2.45
- Expected $48-50M in customer factoring program expenses
- Additional costs expected from new distribution center startup
Insights
Strong quarterly performance from SMP with notable improvements across key metrics.
All three segments showed growth, with Vehicle Control leading at
The maintained guidance of low to mid-single-digit growth and
The automotive aftermarket sector shows resilience with SMP's results reflecting strong market fundamentals. The Temperature Control segment's
The strategic expansion through Nissens acquisition will significantly enhance SMP's competitive position in both North American and European markets. The new distribution center in Shawnee, KS, though causing temporary duplicate overhead costs, positions the company for improved operational efficiency and market coverage.
- Net Sales of
$399.3M 3.3% , with all three operating segments showing increases - Adjusted diluted earnings per share of
$1.28 15% - Adjusted EBITDA up 80 basis points to
12.2% - Nissens Automotive acquisition expected to close in near future
- Full year guidance remains unchanged
Net sales for the third quarter of 2024 were
Consolidated net sales for the nine months ended September 30, 2024, were
Mr. Eric Sills, Standard Motor Products' Chairman and Chief Executive Officer stated, "We are very pleased with our third quarter results, both in our top line growth as well as our earnings performance. Overall, sales increased
By segment, Vehicle Control sales increased
Strong Temperature Control demand continued as sales grew
Our Engineered Solutions segment continues to perform well, as sales increased nearly
Looking at profitability, Adjusted EBITDA improved from the third quarter last year, up 80 basis points to
From a cash flow perspective, we were pleased with the impact of our initiatives on managing both our inventory and borrowing levels. At quarter-end, our inventory was
With respect to our previously announced acquisition of Nissens Automotive in
Regarding our sales and profit expectations for the full year of 2024, we anticipate sales growth will be in the low- to mid-single digits, and Adjusted EBITDA will be in a range of 9.0
The Board of Directors has approved payment of a quarterly dividend of
In closing, Mr. Sills commented, "Looking ahead, while there is always a degree of uncertainty across a variety of external factors, we are excited about where we are headed. North American aftermarket fundamentals remain strong, we are hitting our stride in our Engineered Solutions business, our new distribution center is coming on line, and we are soon to have Nissens on-board with all the opportunities that it will bring. 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 Wednesday October 30, 2024. This call will be webcast and can be accessed on the Investor Relations page of our website at www.smpcorp.com and clicking on the SMP 3Q 2024 Earnings Webcast link. Investors may also listen to the call by dialing 800-343-4136 (domestic) or 203-518-9843 (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 800-374-0328 (domestic) or 402-220-0663 (international).
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, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(Unaudited) | (Unaudited) | |||||||
NET SALES | $ 399,265 | $ 386,413 | ||||||
COST OF SALES | 277,899 | 271,653 | 798,162 | 760,220 | ||||
GROSS PROFIT | 121,366 | 114,760 | 322,335 | 307,296 | ||||
SELLING, GENERAL & ADMINISTRATIVE EXPENSES | 81,204 | 79,781 | 239,822 | 223,257 | ||||
RESTRUCTURING AND INTEGRATION EXPENSES | 3,023 | 177 | 5,774 | 1,383 | ||||
OTHER INCOME, NET | - | 4 | 5 | 74 | ||||
OPERATING INCOME | 37,139 | 34,806 | 76,744 | 82,730 | ||||
OTHER NON-OPERATING INCOME, NET | 2,129 | 1,732 | 5,147 | 2,759 | ||||
INTEREST EXPENSE | 3,145 | 3,621 | 7,964 | 10,766 | ||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES | 36,123 | 32,917 | 73,927 | 74,723 | ||||
PROVISION FOR INCOME TAXES | 9,267 | 7,995 | 18,718 | 18,656 | ||||
EARNINGS FROM CONTINUING OPERATIONS | 26,856 | 24,922 | 55,209 | 56,067 | ||||
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES | (22,771) | (18,200) | (24,727) | (28,201) | ||||
NET EARNINGS | 4,085 | 6,722 | 30,482 | 27,866 | ||||
NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST | 275 | 63 | 785 | 152 | ||||
NET EARNINGS ATTRIBUTABLE TO SMP (a) | $ 3,810 | $ 6,659 | $ 29,697 | $ 27,714 | ||||
NET EARNINGS ATTRIBUTABLE TO SMP | ||||||||
EARNINGS FROM CONTINUING OPERATIONS | $ 26,581 | $ 24,859 | $ 54,424 | $ 55,915 | ||||
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES | (22,771) | (18,200) | (24,727) | (28,201) | ||||
TOTAL | $ 3,810 | $ 6,659 | $ 29,697 | $ 27,714 | ||||
NET EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SMP | ||||||||
BASIC EARNINGS FROM CONTINUING OPERATIONS | $ 1.22 | $ 1.14 | $ 2.50 | $ 2.58 | ||||
DISCONTINUED OPERATION | (1.04) | (0.84) | (1.14) | (1.30) | ||||
NET EARNINGS PER COMMON SHARE - BASIC | $ 0.18 | $ 0.31 | $ 1.36 | $ 1.28 | ||||
DILUTED EARNINGS FROM CONTINUING OPERATIONS | $ 1.20 | $ 1.12 | $ 2.45 | $ 2.52 | ||||
DISCONTINUED OPERATION | (1.03) | (0.82) | (1.11) | (1.27) | ||||
NET EARNINGS PER COMMON SHARE - DILUTED | $ 0.17 | $ 0.30 | $ 1.34 | $ 1.25 | ||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES | 21,716,083 | 21,727,119 | 21,802,164 | 21,675,699 | ||||
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES | 22,154,222 | 22,253,723 | 22,225,444 | 22,198,131 | ||||
(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, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
(Unaudited) | (Unaudited) | |||||||||||
Revenues | ||||||||||||
Engine Management (Ignition, Emissions | ||||||||||||
and Fuel Delivery) | $ 121,432 | $ 113,188 | $ 353,046 | $ 342,860 | ||||||||
Electrical and Safety | 63,237 | 62,049 | 172,772 | 166,720 | ||||||||
Wire sets and other | 16,208 | 15,700 | 49,324 | 49,723 | ||||||||
Vehicle Control | 200,877 | 190,937 | 575,142 | 559,303 | ||||||||
- | ||||||||||||
AC System Components | 95,698 | 94,385 | 245,628 | 217,913 | ||||||||
Other Thermal Components | 30,287 | 29,258 | 76,446 | 75,210 | ||||||||
Temperature Control | 125,985 | 123,643 | 322,074 | 293,123 | ||||||||
Commercial Vehicle | 22,625 | 18,701 | 69,016 | 59,158 | ||||||||
Construction / Agriculture | 8,082 | 9,974 | 27,631 | 32,804 | ||||||||
Light Vehicle | 24,287 | 24,123 | 70,776 | 71,123 | ||||||||
All Other | 17,409 | 19,035 | 55,858 | 52,005 | ||||||||
Engineered Solutions | 72,403 | 71,833 | 223,281 | 215,090 | ||||||||
- | ||||||||||||
Revenues | $ 399,265 | $ 386,413 | $ 1,120,497 | $ 1,067,516 | ||||||||
Gross Margin | ||||||||||||
Vehicle Control | $ 65,652 | 32.7 % | $ 60,865 | 31.9 % | $ 184,520 | 32.1 % | $ 179,446 | 32.1 % | ||||
Temperature Control | 42,323 | 33.6 % | 37,785 | 30.6 % | 98,621 | 30.6 % | 83,452 | 28.5 % | ||||
Engineered Solutions | 13,391 | 18.5 % | 16,110 | 22.4 % | 39,194 | 17.6 % | 44,398 | 20.6 % | ||||
All Other | - | - | - | - | ||||||||
Gross Margin | $ 121,366 | 30.4 % | $ 114,760 | 29.7 % | $ 322,335 | 28.8 % | $ 307,296 | 28.8 % | ||||
Selling, General & Administrative | ||||||||||||
Vehicle Control | $ 43,021 | 21.4 % | $ 42,752 | 22.4 % | $ 130,123 | 22.6 % | $ 124,308 | 22.2 % | ||||
Temperature Control | 25,876 | 20.5 % | 24,624 | 19.9 % | 66,641 | 20.7 % | 61,736 | 21.1 % | ||||
Engineered Solutions | 8,124 | 11.2 % | 8,832 | 12.3 % | 25,491 | 11.4 % | 25,222 | 11.7 % | ||||
All Other | 5,190 | 3,573 | 16,163 | 11,991 | ||||||||
Subtotal | $ 82,211 | 20.6 % | $ 79,781 | 20.6 % | $ 238,418 | 21.3 % | $ 223,257 | 20.9 % | ||||
Acquisition Expenses | (1,007) | -0.3 % | - | 0.0 % | 1,404 | 0.1 % | - | 0.0 % | ||||
Selling, General & Administrative | $ 81,204 | 20.3 % | $ 79,781 | 20.6 % | $ 239,822 | 21.4 % | $ 223,257 | 20.9 % | ||||
Operating Income | ||||||||||||
Vehicle Control | $ 22,631 | 11.3 % | $ 18,113 | 9.5 % | $ 54,397 | 9.5 % | $ 55,138 | 9.9 % | ||||
Temperature Control | 16,447 | 13.1 % | 13,161 | 10.6 % | 31,980 | 9.9 % | 21,716 | 7.4 % | ||||
Engineered Solutions | 5,267 | 7.3 % | 7,278 | 10.1 % | 13,703 | 6.1 % | 19,176 | 8.9 % | ||||
All Other | (5,190) | (3,573) | (16,163) | (11,991) | ||||||||
Subtotal | $ 39,155 | 9.8 % | $ 34,979 | 9.1 % | $ 83,917 | 7.5 % | $ 84,039 | 7.9 % | ||||
Restructuring & Integration | (3,023) | -0.8 % | (177) | 0.0 % | (5,774) | -0.5 % | (1,383) | -0.1 % | ||||
Acquisition Expenses | 1,007 | 0.3 % | - | 0.0 % | (1,404) | -0.1 % | - | 0.0 % | ||||
Other Income, Net | - | 0.0 % | 4 | 0.0 % | 5 | 0.0 % | 74 | 0.0 % | ||||
Operating Income | $ 37,139 | 9.3 % | $ 34,806 | 9.0 % | $ 76,744 | 6.8 % | $ 82,730 | 7.7 % | ||||
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, | |||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
(Unaudited) | (Unaudited) | |||||||||||||
EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP | ||||||||||||||
GAAP EARNINGS FROM CONTINUING OPERATIONS | $ 26,581 | $ 24,859 | $ 54,424 | $ 55,915 | ||||||||||
RESTRUCTURING AND INTEGRATION EXPENSES | 3,023 | 177 | 5,774 | 1,383 | ||||||||||
ACQUISITION EXPENSES | (207) | - | 2,204 | - | ||||||||||
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD | (380) | (312) | (380) | (312) | ||||||||||
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS | (732) | (46) | (2,074) | (360) | ||||||||||
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS | $ 28,285 | $ 24,678 | $ 59,948 | $ 56,626 | ||||||||||
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP | ||||||||||||||
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS | $ 1.20 | $ 1.12 | $ 2.45 | $ 2.52 | ||||||||||
RESTRUCTURING AND INTEGRATION EXPENSES | 0.14 | - | 0.26 | 0.06 | ||||||||||
ACQUISITION EXPENSES | (0.01) | - | 0.10 | - | ||||||||||
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD | (0.02) | (0.01) | (0.02) | (0.01) | ||||||||||
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS | (0.03) | - | (0.09) | (0.02) | ||||||||||
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS | $ 1.28 | $ 1.11 | $ 2.70 | $ 2.55 | ||||||||||
OPERATING INCOME | ||||||||||||||
GAAP OPERATING INCOME | $ 37,139 | $ 34,806 | $ 76,744 | $ 82,730 | ||||||||||
RESTRUCTURING AND INTEGRATION EXPENSES | 3,023 | 177 | 5,774 | 1,383 | ||||||||||
ACQUISITION EXPENSES | (1,007) | - | 1,404 | - | ||||||||||
OTHER (INCOME) EXPENSE, NET | - | (4) | (5) | (74) | LAST TWELVE MONTHS ENDED | YEAR ENDED | ||||||||
SEPTEMBER 30, | DECEMBER 31, | |||||||||||||
NON-GAAP OPERATING INCOME | $ 39,155 | $ 34,979 | $ 83,917 | $ 84,039 | 2024 | 2023 | 2023 | |||||||
(Unaudited) | ||||||||||||||
EBITDA WITHOUT SPECIAL ITEMS | ||||||||||||||
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES | $ 36,123 | $ 32,917 | $ 73,927 | $ 74,723 | $ 80,920 | $ 86,025 | $ 81,716 | |||||||
DEPRECIATION AND AMORTIZATION | 7,389 | 7,332 | 22,008 | 21,461 | 29,569 | 28,864 | 29,022 | |||||||
INTEREST EXPENSE | 3,145 | 3,621 | 7,964 | 10,766 | 10,485 | 15,101 | 13,287 | |||||||
EBITDA | 46,657 | 43,870 | 103,899 | 106,950 | 120,974 | 129,990 | 124,025 | |||||||
RESTRUCTURING AND INTEGRATION EXPENSES | 3,023 | 177 | 5,774 | 1,383 | 7,033 | 3,230 | 2,642 | |||||||
ACQUISITION EXPENSES | (1,007) | - | 1,404 | - | 1,404 | - | - | |||||||
CUSTOMER BANKRUPTCY CHARGE | - | - | - | - | - | 7,002 | - | |||||||
SPECIAL ITEMS | 2,016 | 177 | 7,178 | 1,383 | 8,437 | 10,232 | 2,642 | |||||||
EBITDA WITHOUT SPECIAL ITEMS | $ 48,673 | $ 44,047 | $ 111,077 | $ 108,333 | $ 129,411 | $ 140,222 | $ 126,667 | |||||||
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, 2024 | ||||||||||
Vehicle Control | Temperature | Engineered | All Other | Consolidated | |||||||
(Unaudited) | |||||||||||
OPERATING INCOME | |||||||||||
GAAP OPERATING INCOME | $ 21,029 | $ 16,074 | $ 5,010 | $ (4,974) | $ 37,139 | ||||||
RESTRUCTURING AND INTEGRATION EXPENSES | 1,602 | 373 | 257 | 791 | 3,023 | ||||||
ACQUISITION EXPENSES | - | - | - | (1,007) | (1,007) | ||||||
OTHER EXPENSE, NET | - | - | - | - | - | ||||||
NON-GAAP OPERATING INCOME | $ 22,631 | $ 16,447 | $ 5,267 | $ (5,190) | $ 39,155 | ||||||
EBITDA WITHOUT SPECIAL ITEMS | |||||||||||
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES | $ 18,844 | $ 16,530 | $ 5,607 | $ (4,858) | $ 36,123 | ||||||
DEPRECIATION AND AMORTIZATION | 3,850 | 802 | 2,308 | 429 | 7,389 | ||||||
INTEREST EXPENSE | 2,166 | 791 | 434 | (246) | 3,145 | ||||||
EBITDA | 24,860 | 18,123 | 8,349 | (4,675) | 46,657 | ||||||
RESTRUCTURING AND INTEGRATION EXPENSES | 1,602 | 373 | 257 | 791 | 3,023 | ||||||
ACQUISITION EXPENSES | - | - | - | (1,007) | (1,007) | ||||||
SPECIAL ITEMS | 1,602 | 373 | 257 | (216) | 2,016 | ||||||
EBITDA WITHOUT SPECIAL ITEMS | $ 26,462 | $ 18,496 | $ 8,606 | $ (4,891) | $ 48,673 | ||||||
% of Net Sales | 13.2 % | 14.7 % | 11.9 % | 12.2 % | |||||||
(In thousands) | THREE MONTHS ENDED SEPTEMBER 30, 2023 | ||||||||||
Vehicle Control | Temperature | Engineered | 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 % | |||||||
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, 2024 | ||||||||||
Vehicle Control | Temperature | Engineered | All Other | Consolidated | |||||||
(Unaudited) | |||||||||||
OPERATING INCOME | |||||||||||
GAAP OPERATING INCOME | $ 51,685 | $ 31,302 | $ 13,054 | $ (19,297) | $ 76,744 | ||||||
RESTRUCTURING AND INTEGRATION EXPENSES | 2,712 | 678 | 654 | 1,730 | 5,774 | ||||||
ACQUISITION EXPENSES | - | - | - | 1,404 | 1,404 | ||||||
OTHER INCOME, NET | - | - | (5) | - | (5) | ||||||
NON-GAAP OPERATING INCOME | $ 54,397 | $ 31,980 | $ 13,703 | $ (16,163) | $ 83,917 | ||||||
EBITDA WITHOUT SPECIAL ITEMS | |||||||||||
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES | $ 46,226 | $ 32,396 | $ 14,482 | $ (19,177) | $ 73,927 | ||||||
DEPRECIATION AND AMORTIZATION | 10,981 | 2,480 | 7,240 | 1,307 | 22,008 | ||||||
INTEREST EXPENSE | 5,492 | 2,048 | 1,804 | (1,380) | 7,964 | ||||||
EBITDA | 62,699 | 36,924 | 23,526 | (19,250) | 103,899 | ||||||
RESTRUCTURING AND INTEGRATION EXPENSES | 2,712 | 678 | 654 | 1,730 | 5,774 | ||||||
ACQUISITION EXPENSES | - | - | - | 1,404 | 1,404 | ||||||
SPECIAL ITEMS | 2,712 | 678 | 654 | 3,134 | 7,178 | ||||||
EBITDA WITHOUT SPECIAL ITEMS | $ 65,411 | $ 37,602 | $ 24,180 | $ (16,116) | $ 111,077 | ||||||
% of Net Sales | 11.4 % | 11.7 % | 10.8 % | 9.9 % | |||||||
(In thousands) | NINE MONTHS ENDED SEPTEMBER 30, 2023 | ||||||||||
Vehicle Control | Temperature | Engineered | 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 % | |||||||
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 | DECEMBER | |||
2024 | 2023 | |||
(Unaudited) | ||||
ASSETS | ||||
CASH AND CASH EQUIVALENTS | $ 26,348 | $ 32,526 | ||
ACCOUNTS RECEIVABLE, GROSS | 225,827 | 168,327 | ||
ALLOWANCE FOR EXPECTED CREDIT LOSSES | 8,697 | 8,045 | ||
ACCOUNTS RECEIVABLE, NET | 217,130 | 160,282 | ||
INVENTORIES | 503,015 | 507,075 | ||
UNRETURNED CUSTOMER INVENTORY | 17,843 | 18,240 | ||
OTHER CURRENT ASSETS | 28,873 | 26,100 | ||
TOTAL CURRENT ASSETS | 793,209 | 744,223 | ||
PROPERTY, PLANT AND EQUIPMENT, NET | 138,490 | 121,872 | ||
OPERATING LEASE RIGHT-OF-USE ASSETS | 96,039 | 100,065 | ||
GOODWILL | 134,725 | 134,729 | ||
OTHER INTANGIBLES, NET | 85,837 | 92,308 | ||
DEFERRED INCOME TAXES | 45,315 | 40,533 | ||
INVESTMENT IN UNCONSOLIDATED AFFILIATES | 23,914 | 24,050 | ||
OTHER ASSETS | 33,012 | 35,267 | ||
TOTAL ASSETS | $ 1,350,541 | $ 1,293,047 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
CURRENT PORTION OF REVOLVING CREDIT FACILITY | $ - | $ - | ||
CURRENT PORTION OF TERM LOAN AND OTHER DEBT | 2,685 | 5,029 | ||
ACCOUNTS PAYABLE | 112,404 | 107,455 | ||
ACCRUED CUSTOMER RETURNS | 62,326 | 38,238 | ||
ACCRUED CORE LIABILITY | 15,226 | 18,399 | ||
ACCRUED REBATES | 53,163 | 42,278 | ||
PAYROLL AND COMMISSIONS | 37,050 | 29,561 | ||
SUNDRY PAYABLES AND ACCRUED EXPENSES | 69,666 | 63,303 | ||
TOTAL CURRENT LIABILITIES | 352,520 | 304,263 | ||
LONG-TERM DEBT | 140,163 | 151,182 | ||
NONCURRENT OPERATING LEASE LIABILITY | 86,259 | 88,974 | ||
ACCRUED ASBESTOS LIABILITIES | 89,544 | 72,013 | ||
OTHER LIABILITIES | 28,611 | 25,742 | ||
TOTAL LIABILITIES | 697,097 | 642,174 | ||
TOTAL SMP STOCKHOLDERS' EQUITY | 638,833 | 635,064 | ||
NONCONTROLLING INTEREST | 14,611 | 15,809 | ||
TOTAL STOCKHOLDERS' EQUITY | 653,444 | 650,873 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,350,541 | $ 1,293,047 | ||
STANDARD MOTOR PRODUCTS, INC. | |||||
Condensed Consolidated Statements of Cash Flows | |||||
(In thousands) | |||||
NINE MONTHS ENDED | |||||
SEPTEMBER 30, | |||||
2024 | 2023 | ||||
(Unaudited) | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
NET EARNINGS | $ 30,482 | $ 27,866 | |||
ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH | |||||
PROVIDED BY OPERATING ACTIVITIES: | |||||
DEPRECIATION AND AMORTIZATION | 22,008 | 21,461 | |||
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAXES | 24,727 | 28,201 | |||
OTHER | 4,473 | 4,701 | |||
CHANGE IN ASSETS AND LIABILITIES: | |||||
ACCOUNTS RECEIVABLE | (59,040) | (38,850) | |||
INVENTORY | 2,895 | 54,286 | |||
ACCOUNTS PAYABLE | 4,487 | 15,852 | |||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | (2,739) | 2,916 | |||
SUNDRY PAYABLES AND ACCRUED EXPENSES | 45,470 | 12,345 | |||
OTHER | 5,437 | 4,115 | |||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 78,200 | 132,893 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES | - | (3,954) | |||
CASH ACQUIRED IN STEP ACQUISITION | - | 6,779 | |||
CAPITAL EXPENDITURES | (34,136) | (17,977) | |||
OTHER INVESTING ACTIVITIES | 18 | 95 | |||
NET CASH USED IN INVESTING ACTIVITIES | (34,118) | (15,057) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
NET CHANGE IN DEBT | (13,422) | (92,149) | |||
PURCHASE OF TREASURY STOCK | (10,409) | - | |||
DIVIDENDS PAID | (19,004) | (18,846) | |||
PAYMENTS OF DEBT ISSUANCE COSTS | (4,183) | - | |||
OTHER FINANCING ACTIVITIES | (651) | (2) | |||
NET CASH USED IN FINANCING ACTIVITIES | (47,669) | (110,997) | |||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (2,591) | 496 | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (6,178) | 7,335 | |||
CASH AND CASH EQUIVALENTS at beginning of period | 32,526 | 21,150 | |||
CASH AND CASH EQUIVALENTS at end of period | $ 26,348 | $ 28,485 | |||
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SOURCE Standard Motor Products, Inc.
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