Attached files
| file | filename |
|---|---|
| 8-K - STANDARD MOTOR PRODUCTS INC 8-K 10-31-2013 - STANDARD MOTOR PRODUCTS, INC. | form8k.htm |
Exhibit 99.1
|
For Immediate Release
|
|
|
|
For more information, contact:
|
|
|
James J. Burke
|
|
|
Standard Motor Products, Inc.
|
|
|
(718) 392-0200
|
|
|
Jennifer Tio
|
|
|
Maximum Marketing Services, Inc.
|
|
|
(312) 226-4111 x2449
|
|
|
Jennifer.tio@maxmarketing.com
|
Standard Motor Products, Inc. Announces
Third Quarter 2013 Results and a Quarterly Dividend
New York, NY, October 31, 2013......Standard Motor Products, Inc. (NYSE: SMP), an automotive replacement parts manufacturer and distributor, reported today its consolidated financial results for the three months and nine months ended September 30, 2013.
Consolidated net sales for the third quarter of 2013 were $264.2 million, compared to consolidated net sales of $276 million during the comparable quarter in 2012. Earnings from continuing operations for the third quarter of 2013 were $17.7 million or 76 cents per diluted share, compared to $17.4 million or 76 cents per diluted share in the third quarter of 2012. 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 2013 were $18.3 million or 79 cents per diluted share, compared to $16.8 million or 73 cents per diluted share in the third quarter of 2012.
|
37-18 Northern Blvd., Long Island City, NY 11101
|
|
(718) 392-0200
|
|
www.smpcorp.com
|
Consolidated net sales for the nine month period ended September 30, 2013 were $765 million, compared to consolidated net sales of $756.6 million during the comparable period in 2012. Earnings from continuing operations for the nine month period ended September 30, 2013 were $43.7 million or $1.88 per diluted share, compared to $36.7 million or $1.59 per diluted share in the comparable period of 2012. 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 2013 and 2012 were $44.3 million or $1.91 per diluted share and $35.7 million or $1.55 per diluted share, respectively.
Commenting on the results, Mr. Lawrence I. Sills, Standard Motor Products’ Chairman and Chief Executive Officer, stated, “We achieved an 8% increase in earnings per share for the quarter (excluding non-operational gains and losses), despite the sales decline caused by the weather-related drop in Temperature Control sales. We are now 23% above 2012 in earnings per share for the first nine months.
“The primary reason for the increase is our improvement in gross margin, which is up 2.1 points for the quarter and 2.5 points for the year. We are seeing the benefits of our continuing cost reduction efforts—manufacturing parts we formerly purchased, improved sourcing of finished goods and components, relocating labor intensive operations to low cost areas, and consolidating and integrating our recent acquisitions.
“Engine Management sales were ahead 1.2% for the quarter, and nearly 5% for the year—in line with, or slightly ahead of, industry averages.
“The major shortfall was in Temperature Control sales, which, after adjusting for the CompressorWorks acquisition, are down 10.9% for the quarter and 11.1% year to date. As we have previously discussed, air conditioning sales can vary 20% up or down in a given year, depending on the weather. 2012 was one of the hottest years on record; 2013 one of the coolest.
“We are pleased with the progress we have made in our Temperature Control division. The integration of CompressorWorks was completed on time and within budget. We have combined manufacturing locations, distribution centers, and product lines, and are on track to achieve all planned savings. We believe we are well positioned to take advantage of a more typical summer season.
“In further steps to reduce costs and improve efficiency, we offered a voluntary separation incentive program to certain eligible employees in our sales force. This resulted in an $1.8 million restructuring expense in the quarter with anticipated $1.5 million SG&A savings per year beginning in 2014.
“Cash flow was very strong in the third quarter reflecting a $26 million reduction in inventories that was built up earlier in the year to safeguard our CompressorWorks integration. In the quarter, we were able to reduce debt $36 million to close September 30 with total debt outstanding of $32 million.”
The Board of Directors has approved payment of a quarterly dividend of eleven cents per share on the common stock outstanding. The dividend will be paid on December 2, 2013 to stockholders of record on November 15, 2013.
Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Thursday, October 31, 2013. The dial-in number is 866-952-7524 (domestic) or 785-424-1829 (international). The playback number is 800-723-0498 (domestic) or 402-220-2652 (international). The conference ID # is STANDARD.
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,
|
||||||||||||||
|
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||
|
NET SALES
|
$
|
264,162
|
$
|
275,975
|
$
|
764,996
|
$
|
756,561
|
||||||||
|
|
||||||||||||||||
|
COST OF SALES
|
184,081
|
198,167
|
541,291
|
554,859
|
||||||||||||
|
|
||||||||||||||||
|
GROSS PROFIT
|
80,081
|
77,808
|
223,705
|
201,702
|
||||||||||||
|
|
||||||||||||||||
|
SELLING, GENERAL & ADMINISTRATIVE EXPENSES
|
50,615
|
50,937
|
150,813
|
142,322
|
||||||||||||
|
RESTRUCTURING AND INTEGRATION EXPENSES
|
1,913
|
642
|
2,531
|
779
|
||||||||||||
|
OTHER INCOME , NET
|
324
|
433
|
766
|
454
|
||||||||||||
|
|
||||||||||||||||
|
OPERATING INCOME
|
27,877
|
26,662
|
71,127
|
59,055
|
||||||||||||
|
|
||||||||||||||||
|
OTHER NON-OPERATING INCOME (EXPENSE), NET
|
233
|
-
|
(27
|
)
|
(66
|
)
|
||||||||||
|
|
||||||||||||||||
|
INTEREST EXPENSE
|
403
|
702
|
1,621
|
2,257
|
||||||||||||
|
|
||||||||||||||||
|
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
|
27,707
|
25,960
|
69,479
|
56,732
|
||||||||||||
|
|
||||||||||||||||
|
PROVISION FOR INCOME TAXES
|
10,021
|
8,516
|
25,827
|
20,073
|
||||||||||||
|
|
||||||||||||||||
|
EARNINGS FROM CONTINUING OPERATIONS
|
17,686
|
17,444
|
43,652
|
36,659
|
||||||||||||
|
|
||||||||||||||||
|
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES
|
(389
|
)
|
(604
|
)
|
(1,138
|
)
|
(1,221
|
)
|
||||||||
|
|
||||||||||||||||
|
NET EARNINGS
|
$
|
17,297
|
$
|
16,840
|
$
|
42,514
|
$
|
35,438
|
||||||||
|
NET EARNINGS PER COMMON SHARE:
|
||||||||||||||||
|
|
||||||||||||||||
|
BASIC EARNINGS FROM CONTINUING OPERATIONS
|
$
|
0.77
|
$
|
0.77
|
$
|
1.90
|
$
|
1.61
|
||||||||
|
DISCONTINUED OPERATION
|
(0.02
|
)
|
(0.03
|
)
|
(0.05
|
)
|
(0.06
|
)
|
||||||||
|
NET EARNINGS PER COMMON SHARE - BASIC
|
$
|
0.75
|
$
|
0.74
|
$
|
1.85
|
$
|
1.55
|
||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
DILUTED EARNINGS FROM CONTINUING OPERATIONS
|
$
|
0.76
|
$
|
0.76
|
$
|
1.88
|
$
|
1.59
|
||||||||
|
DISCONTINUED OPERATION
|
(0.02
|
)
|
(0.02
|
)
|
(0.05
|
)
|
(0.05
|
)
|
||||||||
|
NET EARNINGS PER COMMON SHARE - DILUTED
|
$
|
0.74
|
$
|
0.74
|
$
|
1.83
|
$
|
1.54
|
||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
|
22,999,832
|
22,691,878
|
22,945,424
|
22,810,238
|
||||||||||||
|
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES
|
23,239,009
|
22,877,635
|
23,179,187
|
22,999,244
|
||||||||||||
STANDARD MOTOR PRODUCTS, INC.
Segment Revenues and Operating Profit
|
(In thousands)
|
||||||||||||||||||||||||
|
|
THREE MONTHS ENDED
|
NINE MONTHS ENDED
|
||||||||||||||||||||||
|
|
SEPTEMBER 30,
|
SEPTEMBER 30,
|
||||||||||||||||||||||
|
|
2013
|
2012
|
2013
|
2012
|
||||||||||||||||||||
|
|
(unaudited)
|
(unaudited)
|
||||||||||||||||||||||
|
Revenues
|
||||||||||||||||||||||||
|
Engine Management
|
$
|
177,939
|
$
|
175,789
|
$
|
535,498
|
$
|
511,448
|
||||||||||||||||
|
Temperature Control
|
84,840
|
95,229
|
224,228
|
233,556
|
||||||||||||||||||||
|
All Other
|
1,383
|
4,957
|
5,270
|
11,557
|
||||||||||||||||||||
|
|
$
|
264,162
|
$
|
275,975
|
$
|
764,996
|
$
|
756,561
|
||||||||||||||||
|
|
||||||||||||||||||||||||
|
Gross Margin
|
||||||||||||||||||||||||
|
Engine Management
|
$
|
56,654
|
31.8
|
%
|
$
|
51,285
|
29.2
|
%
|
$
|
162,748
|
30.4
|
%
|
$
|
140,555
|
27.5
|
%
|
||||||||
|
Temperature Control
|
20,496
|
24.2
|
%
|
23,156
|
24.3
|
%
|
51,824
|
23.1
|
%
|
51,604
|
22.1
|
%
|
||||||||||||
|
All Other
|
2,931
|
3,367
|
9,133
|
9,543
|
||||||||||||||||||||
|
|
$
|
80,081
|
30.3
|
%
|
$
|
77,808
|
28.2
|
%
|
$
|
223,705
|
29.2
|
%
|
$
|
201,702
|
26.7
|
%
|
||||||||
|
|
||||||||||||||||||||||||
|
Selling, General & Administrative
|
||||||||||||||||||||||||
|
Engine Management
|
$
|
30,130
|
16.9
|
%
|
$
|
29,870
|
17.0
|
%
|
$
|
90,305
|
16.9
|
%
|
$
|
87,201
|
17.0
|
%
|
||||||||
|
Temperature Control
|
12,994
|
15.3
|
%
|
14,099
|
14.8
|
%
|
37,767
|
16.8
|
%
|
34,705
|
14.9
|
%
|
||||||||||||
|
All Other
|
7,491
|
6,968
|
22,741
|
20,416
|
||||||||||||||||||||
|
|
$
|
50,615
|
19.2
|
%
|
$
|
50,937
|
18.5
|
%
|
$
|
150,813
|
19.7
|
%
|
$
|
142,322
|
18.8
|
%
|
||||||||
|
|
||||||||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Operating Profit
|
||||||||||||||||||||||||
|
Engine Management
|
$
|
26,524
|
14.9
|
%
|
$
|
21,415
|
12.2
|
%
|
$
|
72,443
|
13.5
|
%
|
$
|
53,354
|
10.4
|
%
|
||||||||
|
Temperature Control
|
7,502
|
8.8
|
%
|
9,057
|
9.5
|
%
|
14,057
|
6.3
|
%
|
16,899
|
7.2
|
%
|
||||||||||||
|
All Other
|
(4,560
|
)
|
(3,601
|
)
|
(13,608
|
)
|
(10,873
|
)
|
||||||||||||||||
|
|
29,466
|
11.2
|
%
|
26,871
|
9.7
|
%
|
72,892
|
9.5
|
%
|
59,380
|
7.8
|
%
|
||||||||||||
|
Restructuring & Integration
|
(1,913
|
)
|
-0.7
|
%
|
(642
|
)
|
-0.2
|
%
|
(2,531
|
)
|
-0.3
|
%
|
(779
|
)
|
-0.1
|
%
|
||||||||
|
Other Income, Net
|
324
|
0.1
|
%
|
433
|
0.2
|
%
|
766
|
0.1
|
%
|
454
|
0.1
|
%
|
||||||||||||
|
|
$
|
27,877
|
10.6
|
%
|
$
|
26,662
|
9.7
|
%
|
$
|
71,127
|
9.3
|
%
|
$
|
59,055
|
7.8
|
%
|
||||||||
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,
|
||||||||||||||
|
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||
|
EARNINGS FROM CONTINUING OPERATIONS
|
||||||||||||||||
|
|
||||||||||||||||
|
GAAP EARNINGS FROM CONTINUING OPERATIONS
|
$
|
17,686
|
$
|
17,444
|
$
|
43,652
|
$
|
36,659
|
||||||||
|
|
||||||||||||||||
|
RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)
|
1,148
|
385
|
1,519
|
467
|
||||||||||||
|
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD
|
(374
|
)
|
(774
|
)
|
(374
|
)
|
(774
|
)
|
||||||||
|
GAIN FROM SALE OF BUILDINGS (NET OF TAX)
|
(157
|
)
|
(301
|
)
|
(472
|
)
|
(615
|
)
|
||||||||
|
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS
|
$
|
18,303
|
$
|
16,754
|
$
|
44,325
|
$
|
35,737
|
||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
|
||||||||||||||||
|
|
||||||||||||||||
|
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
|
$
|
0.76
|
$
|
0.76
|
$
|
1.88
|
$
|
1.59
|
||||||||
|
|
||||||||||||||||
|
RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)
|
0.05
|
0.01
|
0.07
|
0.02
|
||||||||||||
|
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD
|
(0.01
|
)
|
(0.03
|
)
|
(0.02
|
)
|
(0.03
|
)
|
||||||||
|
GAIN FROM SALE OF BUILDINGS (NET OF TAX)
|
(0.01
|
)
|
(0.01
|
)
|
(0.02
|
)
|
(0.03
|
)
|
||||||||
|
|
||||||||||||||||
|
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
|
$
|
0.79
|
$
|
0.73
|
$
|
1.91
|
$
|
1.55
|
||||||||
MANAGEMENT BELIEVES THAT EARNINGS FROM CONTINUING OPERATIONS AND DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS BEFORE SPECIAL ITEMS, WHICH ARE NON-GAAP MEASUREMENTS, 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 30,
|
December 31,
|
||||||
|
|
2013
|
2012
|
||||||
|
|
(Unaudited)
|
|||||||
|
|
||||||||
|
ASSETS
|
||||||||
|
|
||||||||
|
CASH
|
$
|
10,097
|
$
|
13,074
|
||||
|
|
||||||||
|
ACCOUNTS RECEIVABLE, GROSS
|
149,000
|
104,689
|
||||||
|
ALLOWANCE FOR DOUBTFUL ACCOUNTS
|
7,021
|
6,124
|
||||||
|
ACCOUNTS RECEIVABLE, NET
|
141,979
|
98,565
|
||||||
|
|
||||||||
|
INVENTORIES
|
269,205
|
267,468
|
||||||
|
OTHER CURRENT ASSETS
|
46,481
|
39,446
|
||||||
|
|
||||||||
|
TOTAL CURRENT ASSETS
|
467,762
|
418,553
|
||||||
|
|
||||||||
|
PROPERTY, PLANT AND EQUIPMENT, NET
|
63,883
|
64,422
|
||||||
|
GOODWILL AND OTHER INTANGIBLES, NET
|
74,221
|
72,373
|
||||||
|
OTHER ASSETS
|
30,025
|
21,246
|
||||||
|
|
||||||||
|
TOTAL ASSETS
|
$
|
635,891
|
$
|
576,594
|
||||
|
|
||||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
|
|
||||||||
|
NOTES PAYABLE
|
$
|
32,187
|
$
|
40,453
|
||||
|
CURRENT PORTION OF LONG TERM DEBT
|
82
|
120
|
||||||
|
ACCOUNTS PAYABLE
|
65,165
|
62,283
|
||||||
|
ACCRUED CUSTOMER RETURNS
|
46,721
|
29,033
|
||||||
|
OTHER CURRENT LIABILITIES
|
98,473
|
90,283
|
||||||
|
|
||||||||
|
TOTAL CURRENT LIABILITIES
|
242,628
|
222,172
|
||||||
|
|
||||||||
|
LONG-TERM DEBT
|
23
|
75
|
||||||
|
ACCRUED ASBESTOS LIABILITIES
|
24,223
|
25,110
|
||||||
|
OTHER LIABILITIES
|
21,728
|
21,650
|
||||||
|
|
||||||||
|
TOTAL LIABILITIES
|
288,602
|
269,007
|
||||||
|
|
||||||||
|
TOTAL STOCKHOLDERS' EQUITY
|
347,289
|
307,587
|
||||||
|
|
||||||||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
635,891
|
$
|
576,594
|
||||
STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Statements of Cash Flows
|
(In thousands)
|
||||||||
|
|
||||||||
|
|
||||||||
|
|
NINE MONTHS ENDED
|
|||||||
|
|
SEPTEMBER 30,
|
|||||||
|
|
2013
|
2012
|
||||||
|
|
(Unaudited)
|
|||||||
|
|
||||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
|
|
||||||||
|
NET EARNINGS
|
$
|
42,514
|
$
|
35,438
|
||||
|
ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH
|
||||||||
|
PROVIDED BY OPERATING ACTIVITIES:
|
||||||||
|
DEPRECIATION AND AMORTIZATION
|
13,203
|
12,093
|
||||||
|
OTHER
|
9,843
|
13,519
|
||||||
|
CHANGE IN ASSETS AND LIABILITIES:
|
||||||||
|
ACCOUNTS RECEIVABLE
|
(43,990
|
)
|
(48,008
|
)
|
||||
|
INVENTORY
|
(5,345
|
)
|
21,082
|
|||||
|
ACCOUNTS PAYABLE
|
(450
|
)
|
4,957
|
|||||
|
OTHER
|
17,876
|
23,769
|
||||||
|
NET CASH PROVIDED BY OPERATING ACTIVTIES
|
33,651
|
62,850
|
||||||
|
|
||||||||
|
|
||||||||
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
|
|
||||||||
|
CAPITAL EXPENDITURES
|
(8,467
|
)
|
(8,003
|
)
|
||||
|
ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES
|
(12,760
|
)
|
(38,594
|
)
|
||||
|
OTHER INVESTING ACTIVITIES
|
(596
|
)
|
9
|
|||||
|
NET CASH USED IN INVESTING ACTIVITIES
|
(21,823
|
)
|
(46,588
|
)
|
||||
|
|
||||||||
|
|
||||||||
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
|
|
||||||||
|
NET CHANGE IN DEBT
|
(8,356
|
)
|
(12,817
|
)
|
||||
|
PURCHASE OF TREASURY STOCK
|
(1,672
|
)
|
(4,999
|
)
|
||||
|
DIVIDENDS PAID
|
(7,566
|
)
|
(6,162
|
)
|
||||
|
OTHER FINANCING ACTIVITIES
|
3,350
|
6,339
|
||||||
|
NET CASH USED IN FINANCING ACTIVITIES
|
(14,244
|
)
|
(17,639
|
)
|
||||
|
|
||||||||
|
|
||||||||
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
(561
|
)
|
1,393
|
|||||
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
(2,977
|
)
|
16
|
|||||
|
CASH AND CASH EQUIVALENTS at beginning of Period
|
13,074
|
10,871
|
||||||
|
CASH AND CASH EQUIVALENTS at end of Period
|
$
|
10,097
|
$
|
10,887
|
||||