Standard Motor Products, Inc. Releases Fourth Quarter and 2023 Year-End Results
NEW YORK, Feb. 22, 2024 /PRNewswire/ -- Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, reported today its consolidated financial results for the three and twelve months ended December 31, 2023.
Net sales for the fourth quarter of 2023 were $290.8 million, compared to consolidated net sales of $308.2 million during the same quarter in 2022. Earnings from continuing operations for the fourth quarter of 2023 were $7.2 million or $0.32 per diluted share, compared to $8.5 million or $0.39 per diluted share in the fourth 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 fourth quarter of 2023 were $8.2 million or $0.37 per diluted share, compared to $15.1 million or $0.69 per diluted share in the fourth quarter of 2022.
Consolidated net sales for the twelve months ended December 31, 2023, were $1.36 billion, compared to consolidated net sales of $1.37 billion during the comparable period in 2022. Earnings from continuing operations for the twelve months ended December 31, 2023, were $63.1 million or $2.85 per diluted share, compared to $73.0 million or $3.30 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 twelve months ended December 31, 2023 and 2022 were $64.8 million or $2.92 per diluted share and $79.4 million or $3.59 per diluted share, respectively.
Mr. Eric Sills, Standard Motor Products' Chairman and Chief Executive Officer stated, "Overall we were disappointed in our results. Sales were down 1% in 2023, with the fourth quarter finishing softer than expected, down 5.7% from last year. As we look at our two end markets, we were very pleased with the continued solid performance in our Engineered Solutions business as we experienced strong growth with both new and existing customers. Meanwhile our aftermarket business experienced a challenging quarter, impacting our full-year performance especially when compared to records we set in 2022."
By segment, Vehicle Control sales declined 5.9% in the fourth quarter, bringing full-year performance down 1.7% compared to 2022. The sales results in the quarter were due to a combination of modest changes to customer order patterns as well as general softness in the marketplace. While large customer POS trends were slightly positive early in the quarter, they weakened in December finishing roughly flat overall.
Turning to Temperature Control, weather patterns throughout the year created challenges for this highly seasonal category, with full-year sales down 3.8%. 2022 was the longest and hottest season on record, with full-year sales up 8.4% over the previous year, making for a difficult comparison. The first half of 2023 was unseasonably cool, and while it got quite hot across much of the country in the third quarter, it tends to be difficult to recover from a late start to the selling season. The fourth quarter itself was light, down 19.0%, though it is important to note with the seasonal demand over, it is always far and away our lowest sales quarter and can therefore be quite volatile.
Our Engineered Solutions segment continues to post strong numbers as sales increased 6.7% in the fourth quarter and 4.7% for the year. After several years of building out this new business, we officially launched it as its own operating segment at the start of 2023, and we are delighted to see the ongoing momentum. We are pleased with the overall traction to date in this segment and continue to believe we will be able to capitalize on new awards as well as introduce new products over time to broaden both new and existing customer opportunities.
Consolidated operating profit for the full year, excluding non-operational gains and losses, finished at 7.0%, vs. 8.2% in 2022, and adjusted EBITDA was 9.3% for the year compared to our guidance of approximately 9.5%. Lower sales volumes resulted in lower leverage of fixed costs, even though our pricing actions along with cost reduction initiatives have started to offset lingering inflationary pressures. Customer factoring program expense at $46.0 million was $14.0 million (110 basis points) higher in 2023. And while interest rates remain high, the general consensus is that they will begin to decline later in 2024.
From a cash flow perspective, we were pleased with the impact of our initiatives on reducing both our inventory and borrowing levels. At year-end, our inventory was $507.1 million, down from $528.7 million at year-end 2022. Additionally, our total debt at year-end stood at $156.2 million as we paid down $83.6 million in the full year of 2023, ending with a net leverage ratio of 1.0X.
As we head into 2024, our outlook for the full year includes an expectation that sales growth will be flat to low single digits and Adjusted EBITDA will be in a range of 9.0% to 9.5%. We remind investors that as part of our distribution center expansion into Shawnee, KS, we will incur roughly $7-8 million of added costs in 2024 related to increased rent as well as redundancy expenses as we transition away from our Edwardsville, KS distribution center. Additionally, we anticipate approximately $25 million in capital expenditures related to the implementation of upgraded automation capabilities, as well as other equipment and racking, as we outfit the new DC.
In closing, Mr. Sills commented, "Although the economic backdrop and various geopolitical risks may continue to create volatility in 2024, we are confident in the resiliency of our end markets. We are excited about the partial opening of our new distribution center in just a few months and full opening in 2025 that will expand our capacity and provide additional risk avoidance to our overall distribution footprint. We look to continue to find ways to even better service our customers as well as explore opportunities to partner together for growth in 2024 and well into the future. We thank our employees that make all of this possible."
Conference Call
Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Thursday, February 22, 2024. This call will be webcast and can be accessed on our website at www.smpcorp.com and clicking on the SMP Q4'23 Earnings Call Earnings Webcast link. Investors may also listen to the call by dialing 800-245-3047 (domestic) or 203-518-9765 (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 888-566-0878 (domestic) or 402-220-6925 (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
TWELVE MONTHS ENDED
DECEMBER 31,
DECEMBER 31,
2023 2022 2023 2022
(Unaudited)
(Unaudited)
NET SALES $290,756 $308,199 $1,358,272 $1,371,815
COST OF SALES 209,226 218,635 969,446 989,276
GROSS PROFIT 81,530 89,564 388,826 382,539
SELLING, GENERAL & ADMINISTRATIVE EXPENSES 70,326 72,075 293,583 276,626
RESTRUCTURING AND INTEGRATION EXPENSES 1,259 1,847 2,642 1,891
OTHER INCOME, NET 2 70 76 113
OPERATING INCOME 9,947 15,712 92,677 104,135
OTHER NON-OPERATING INCOME (EXPENSE), NET (433) (75) 2,326 4,814
INTEREST EXPENSE 2,521 4,335 13,287 10,617
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES 6,993 11,302 81,716 98,332
PROVISION FOR (BENEFIT FROM) INCOME TAXES (288) 2,799 18,368 25,206
EARNINGS FROM CONTINUING OPERATIONS 7,281 8,503 63,348 73,126
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES (795) (615) (28,996) (17,691)
NET EARNINGS 6,486 7,888 34,352 55,435
NET EARNINGS (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST 52 (45) 204 84
NET EARNINGS ATTRIBUTABLE TO SMP (a) $6,434 $7,933 $34,148 $55,351
NET EARNINGS ATTRIBUTABLE TO SMP
EARNINGS FROM CONTINUING OPERATIONS $7,229 $8,548 $63,144 $73,042
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES (795) (615) (28,996) (17,691)
TOTAL $6,434 $7,933 $34,148 $55,351
NET EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SMP
BASIC EARNINGS FROM CONTINUING OPERATIONS $0.33 $0.40 $2.91 $3.37
DISCONTINUED OPERATION (0.04) (0.03) (1.34) (0.82)
NET EARNINGS PER COMMON SHARE - BASIC $0.29 $0.37 $1.57 $2.55
DILUTED EARNINGS FROM CONTINUING OPERATIONS $0.32 $0.39 $2.85 $3.30
DISCONTINUED OPERATION (0.03) (0.03) (1.31) (0.80)
NET EARNINGS PER COMMON SHARE - DILUTED $0.29 $0.36 $1.54 $2.50
WEIGHTED AVERAGE NUMBER OF COMMON SHARES 21,836,293 21,578,194 21,716,177 21,683,719
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES 22,310,085 22,030,263 22,161,341 22,139,981
(a) "SMP" refers to Standard Motor Products, Inc. and
subsidiaries.
STANDARD MOTOR PRODUCTS, INC.
Segment Revenues and Operating Profit
(In thousands)
THREE MONTHS ENDED
TWELVE MONTHS ENDED
DECEMBER 31,
DECEMBER 31,
2023 2022 2023 2022
(Unaudited)
(Unaudited)
Revenues
Engine Management (Ignition, Emissions and
Fuel Delivery) $107,320 $116,091 $450,180 $454,571
Electrical and Safety 55,062 57,309 221,782 230,487
Wire sets and other 16,247 16,437 65,970 65,513
Vehicle Control 178,629 189,837 737,932 750,571
AC System Components 19,843 26,161 237,756 245,484
Other Thermal Components 24,788 28,960 99,998 105,753
Temperature Control 44,631 55,121 337,754 351,237
Commercial Vehicle 20,218 20,022 83,025 80,275
Construction / Agriculture 8,861 9,208 43,402 42,385
Light Vehicle 21,578 21,010 92,759 91,533
All Other 16,839 13,001 63,400 55,814
Engineered Solutions 67,496 63,241 282,586 270,007
Revenues $290,756 $308,199 $1,358,272 $1,371,815
Gross Margin
Vehicle Control $58,769 32.9 % $62,765 33.1 % $238,215 32.3 % $232,267 30.9 %
Temperature Control 12,375 27.7 % 15,005 27.2 % 95,827 28.4 % 98,913 28.2 %
Engineered Solutions 10,386 15.4 % 11,794 18.6 % 54,784 19.4 % 51,359 19.0 %
All Other
Gross Margin $81,530 28.0 % $89,564 29.1 % $388,826 28.6 % $382,539 27.9 %
Selling, General & Administrative
Vehicle Control $41,397 23.2 % $39,649 20.9 % $165,705 22.5 % $151,596 20.2 %
Temperature Control 15,640 35.0 % 14,358 26.0 % 77,376 22.9 % 70,192 20.0 %
Engineered Solutions 9,343 13.8 % 7,780 12.3 % 34,565 12.2 % 32,646 12.1 %
All Other 3,946 3,286 15,937 15,190
Subtotal 70,326 24.2 % 65,073 21.1 % 293,583 21.6 % 269,624 19.7 %
Customer Bankruptcy Charge 0.0 % 7,002 2.3 % 0.0 % 7,002 0.5 %
Selling, General & Administrative $70,326 24.2 % $72,075 23.4 % $293,583 21.6 % $276,626 20.2 %
Operating Income
Vehicle Control $17,372 9.7 % $23,116 12.2 % $72,510 9.8 % $80,671 10.7 %
Temperature Control (3,265) -7.3 % 647 1.2 % 18,451 5.5 % 28,721 8.2 %
Engineered Solutions 1,043 1.5 % 4,014 6.3 % 20,219 7.2 % 18,713 6.9 %
All Other (3,946) (3,286) (15,937) (15,190)
Subtotal $11,204 3.9 % $24,491 7.9 % $95,243 7.0 % $112,915 8.2 %
Restructuring & Integration (1,259) -0.4 % (1,847) -0.6 % (2,642) -0.2 % (1,891) -0.1 %
Customer Bankruptcy Charge 0.0 % (7,002) -2.3 % 0.0 % (7,002) -0.5 %
Other Income, Net 2 0.0 % 70 0.0 % 76 0.0 % 113 0.0 %
Operating Income $9,947 3.4 % $15,712 5.1 % $92,677 6.8 % $104,135 7.6 %
STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures
(In thousands, except per share amounts)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
2023 2022 2023 2022
(Unaudited)
(Unaudited)
EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP
GAAP EARNINGS FROM CONTINUING OPERATIONS $7,229 $8,548 $63,144 $73,042
RESTRUCTURING AND INTEGRATION EXPENSES 1,259 1,847 2,642 1,891
CUSTOMER BANKRUPTCY CHARGE 7,002 7,002
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD (312) (249)
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS (327) (2,301) (687) (2,312)
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS $8,161 $15,096 $64,787 $79,374
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS $0.32 $0.39 $2.85 $3.30
RESTRUCTURING AND INTEGRATION EXPENSES 0.06 0.08 0.12 0.08
CUSTOMER BANKRUPTCY CHARGE 0.32 0.32
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD (0.01) (0.01)
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS (0.01) (0.10) (0.04) (0.10)
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS $0.37 $0.69 $2.92 $3.59
OPERATING INCOME
GAAP OPERATING INCOME $9,947 $15,712 $92,677 $104,135
RESTRUCTURING AND INTEGRATION EXPENSES 1,259 1,847 2,642 1,891
CUSTOMER BANKRUPTCY CHARGE 7,002 7,002
OTHER INCOME, NET (2) (70) (76) (113)
NON-GAAP OPERATING INCOME $11,204 $24,491 $95,243 $112,915
EBITDA WITHOUT SPECIAL ITEMS
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES $6,993 $11,302 $81,716 $98,332
DEPRECIATION AND AMORTIZATION 7,561 7,403 29,022 28,298
INTEREST EXPENSE 2,521 4,335 13,287 10,617
EBITDA 17,075 23,040 124,025 137,247
RESTRUCTURING AND INTEGRATION EXPENSES 1,259 1,847 2,642 1,891
CUSTOMER BANKRUPTCY CHARGE 7,002 7,002
SPECIAL ITEMS 1,259 8,849 2,642 8,893
EBITDA WITHOUT SPECIAL ITEMS $18,334 $31,889 $126,667 $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 DECEMBER 31, 2023
Vehicle Temperature Engineered
Control Control Solutions All Other Consolidated
(Unaudited)
OPERATING INCOME
GAAP OPERATING INCOME $16,608 $(3,595) $880 $(3,946) $9,947
RESTRUCTURING AND INTEGRATION EXPENSES 792 330 137 1,259
CUSTOMER BANKRUPTCY CHARGE
OTHER (INCOME) EXPENSE, NET (28) 26 (2)
NON-GAAP OPERATING INCOME $17,372 $(3,265) $1,043 $(3,946) $11,204
EBITDA WITHOUT SPECIAL ITEMS
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES $14,862 $(4,466) $395 $(3,798) $6,993
DEPRECIATION AND AMORTIZATION 3,610 985 2,549 417 7,561
INTEREST EXPENSE 1,737 602 690 (508) 2,521
EBITDA 20,209 (2,879) 3,634 (3,889) 17,075
RESTRUCTURING AND INTEGRATION EXPENSES 792 330 137 1,259
SPECIAL ITEMS 792 330 137 1,259
EBITDA WITHOUT SPECIAL ITEMS $21,001 $(2,549) $3,771 $(3,889) $18,334
% of Net Sales 11.8 % -5.7 % 5.6 % 6.3 %
(In thousands)
THREE MONTHS ENDED DECEMBER 31, 2022
Vehicle Temperature Engineered
Control Control Solutions All Other Consolidated
(Unaudited)
OPERATING INCOME
GAAP OPERATING INCOME $16,599 $(1,615) $4,014 $(3,286) $15,712
RESTRUCTURING AND INTEGRATION EXPENSES 1,452 395 1,847
CUSTOMER BANKRUPTCY CHARGE 5,135 1,867 7,002
OTHER INCOME, NET (70) (70)
NON-GAAP OPERATING INCOME $23,116 $647 $4,014 $(3,286) $24,491
EBITDA WITHOUT SPECIAL ITEMS
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES $13,400 $(2,848) $3,925 $(3,175) $11,302
DEPRECIATION AND AMORTIZATION 3,656 890 2,380 477 7,403
INTEREST EXPENSE 3,140 958 317 (80) 4,335
EBITDA 20,196 (1,000) 6,622 (2,778) 23,040
RESTRUCTURING AND INTEGRATION EXPENSES 1,452 395 1,847
CUSTOMER BANKRUPTCY CHARGE 5,135 1,867 7,002
SPECIAL ITEMS 6,587 2,262 8,849
EBITDA WITHOUT SPECIAL ITEMS $26,783 $1,262 $6,622 $(2,778) $31,889
% of Net Sales 14.1 % 2.3 % 10.5 % 10.3 %
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)
TWELVE MONTHS ENDED DECEMBER 31, 2023
Vehicle Temperature Engineered
Control Control Solutions All Other Consolidated
(Unaudited)
OPERATING INCOME
GAAP OPERATING INCOME $71,327 $17,343 $19,944 $(15,937) $92,677
RESTRUCTURING AND INTEGRATION EXPENSES 1,276 1,108 258 2,642
CUSTOMER BANKRUPTCY CHARGE
OTHER (INCOME) EXPENSE, NET (93) 17 (76)
NON-GAAP OPERATING INCOME $72,510 $18,451 $20,219 $(15,937) $95,243
EBITDA WITHOUT SPECIAL ITEMS
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES $62,856 $14,678 $20,006 $(15,824) $81,716
DEPRECIATION AND AMORTIZATION 13,877 3,424 9,966 1,755 29,022
INTEREST EXPENSE 9,345 3,279 2,306 (1,643) 13,287
EBITDA 86,078 21,381 32,278 (15,712) 124,025
RESTRUCTURING AND INTEGRATION EXPENSES 1,276 1,108 258 2,642
SPECIAL ITEMS 1,276 1,108 258 2,642
EBITDA WITHOUT SPECIAL ITEMS $87,354 $22,489 $32,536 $(15,712) $126,667
% of Net Sales 11.8 % 6.7 % 11.5 % 9.3 %
(In thousands)
TWELVE MONTHS ENDED DECEMBER 31, 2022
Vehicle Temperature Engineered
Control Control Solutions All Other Consolidated
(Unaudited)
OPERATING INCOME
GAAP OPERATING INCOME $74,153 $26,459 $18,713 $(15,190) $104,135
RESTRUCTURING AND INTEGRATION EXPENSES 1,496 395 1,891
CUSTOMER BANKRUPTCY CHARGE 5,135 1,867 7,002
OTHER INCOME, NET (113) (113)
NON-GAAP OPERATING INCOME $80,671 $28,721 $18,713 $(15,190) $112,915
EBITDA WITHOUT SPECIAL ITEMS
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES $67,439 $26,047 $20,103 $(15,257) $98,332
DEPRECIATION AND AMORTIZATION 14,075 2,973 9,557 1,693 28,298
INTEREST EXPENSE 7,816 2,312 804 (315) 10,617
EBITDA 89,330 31,332 30,464 (13,879) 137,247
RESTRUCTURING AND INTEGRATION EXPENSES 1,496 395 1,891
CUSTOMER BANKRUPTCY CHARGE 5,135 1,867 7,002
SPECIAL ITEMS 6,631 2,262 8,893
EBITDA WITHOUT SPECIAL ITEMS $95,961 $33,594 $30,464 $(13,879) $146,140
% of Net Sales 12.8 % 9.6 % 11.3 % 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)
DECEMBER DECEMBER
2023 2022
(Unaudited)
ASSETS
CASH AND CASH EQUIVALENTS $32,526 $21,150
ACCOUNTS RECEIVABLE, GROSS 168,327 173,013
ALLOWANCE FOR EXPECTED CREDIT LOSSES 8,045 5,375
ACCOUNTS RECEIVABLE, NET 160,282 167,638
INVENTORIES 507,075 528,715
UNRETURNED CUSTOMER INVENTORY 18,240 19,695
OTHER CURRENT ASSETS 26,100 25,241
TOTAL CURRENT ASSETS 744,223 762,439
PROPERTY, PLANT AND EQUIPMENT, NET 121,872 107,148
OPERATING LEASE RIGHT-OF-USE ASSETS 100,065 49,838
GOODWILL 134,729 132,087
OTHER INTANGIBLES, NET 92,308 100,504
DEFERRED INCOME TAXES 40,533 33,658
INVESTMENT IN UNCONSOLIDATED AFFILIATES 24,050 41,745
OTHER ASSETS 35,267 27,510
TOTAL ASSETS $1,293,047 $1,254,929
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT PORTION OF REVOLVING CREDIT FACILITY
$ - $50,000
CURRENT PORTION OF TERM LOAN AND OTHER DEBT 5,029 5,031
ACCOUNTS PAYABLE 107,455 89,247
ACCRUED CUSTOMER RETURNS 38,238 37,169
ACCRUED CORE LIABILITY 18,399 22,952
ACCRUED REBATES 42,278 37,381
PAYROLL AND COMMISSIONS 29,561 31,361
SUNDRY PAYABLES AND ACCRUED EXPENSES 63,303 49,990
TOTAL CURRENT LIABILITIES 304,263 323,131
LONG-TERM DEBT 151,182 184,589
NONCURRENT OPERATING LEASE LIABILITY 88,974 40,709
ACCRUED ASBESTOS LIABILITIES 72,013 63,305
OTHER LIABILITIES 25,742 22,157
TOTAL LIABILITIES 642,174 633,891
TOTAL SMP STOCKHOLDERS' EQUITY 635,064 610,020
NONCONTROLLING INTEREST 15,809 11,018
TOTAL STOCKHOLDERS' EQUITY 650,873 621,038
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,293,047 $1,254,929
STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
TWELVE MONTHS ENDED
DECEMBER 31,
2023 2022
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
NET EARNINGS $34,352 $55,435
ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES:
DEPRECIATION AND AMORTIZATION 29,022 28,298
LOSS FROM DISCONTINUED OPERATIONS, NET
OF TAXES 28,996 17,691
CUSTOMER BANKRUPTCY CHARGE - 7,002
OTHER 7,718 13,064
CHANGE IN ASSETS AND LIABILITIES:
ACCOUNTS RECEIVABLE 7,965 6,916
INVENTORY 29,494 (67,495)
ACCOUNTS PAYABLE 19,645 (48,604)
PREPAID EXPENSES AND OTHER CURRENT
ASSETS (70) (5,509)
SUNDRY PAYABLES AND ACCRUED EXPENSES (4,284) (29,089)
OTHER (8,578) (5,242)
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES 144,260 (27,533)
CASH FLOWS FROM INVESTING ACTIVITIES
ACQUISITIONS OF AND INVESTMENTS IN
BUSINESSES (3,954) (1,934)
CASH ACQUIRED IN STEP ACQUISITION 6,779
CAPITAL EXPENDITURES (28,633) (25,956)
OTHER INVESTING ACTIVITIES 108 73
NET CASH USED IN INVESTING ACTIVITIES (25,700) (27,817)
CASH FLOWS FROM FINANCING ACTIVITIES
NET CHANGE IN DEBT (83,558) 111,307
PURCHASE OF TREASURY STOCK - (29,656)
DIVIDENDS PAID (25,164) (23,428)
DIVIDENDS PAID TO NONCONTROLLING
INTEREST (700)
PAYMENTS OF DEBT ISSUANCE COSTS - (2,128)
OTHER FINANCING ACTIVITIES (189) (595)
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES (109,611) 55,500
EFFECT OF EXCHANGE RATE CHANGES ON CASH 2,427 (755)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 11,376 (605)
CASH AND CASH EQUIVALENTS at beginning
of period 21,150 21,755
CASH AND CASH EQUIVALENTS at end of
period $32,526 $21,150
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SOURCE Standard Motor Products, Inc.
