Standard Motor Products, Inc. Announces Second Quarter 2024 Results and Quarterly Dividend
NEW YORK, Aug. 1, 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 six months ended June 30, 2024.
Net sales for the second quarter of 2024 were $389.8 million, compared to consolidated net sales of $353.1 million during the comparable quarter in 2023. Earnings from continuing operations for the second quarter of 2024 were $18.0 million or $0.81 per diluted share, compared to $18.4 million or $0.83 per diluted share in the second quarter of 2023. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the second quarter of 2024 were $21.7 million or $0.98 per diluted share, compared to $18.6 million or $0.84 per diluted share in the second quarter of 2023.
Consolidated net sales for the six months ended June 30, 2024, were $721.2 million, compared to consolidated net sales of $681.1 million during the comparable period in 2023. Earnings from continuing operations for the six months ended June 30, 2024, were $27.8 million or $1.25 per diluted share, compared to $31.1 million or $1.40 per diluted share in the comparable period of 2023. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the six months ended June 30, 2024 and 2023 were $31.7 million or $1.42 per diluted share and $31.9 million or $1.44 per diluted share, respectively.
Mr. Eric Sills, Standard Motor Products' Chairman and Chief Executive Officer stated, "We are pleased with our second quarter results as sales increased 10.4% versus last year's second quarter, while year-to-date sales are up nearly 6% relative to 2023. We experienced solid top line results in all segments, setting records across the board, most notably within Temperature Control."
By segment, Vehicle Control sales improved 2.7% in the quarter, accelerating from the more modest growth seen in our first quarter. Year-to-date sales are up 1.6%, and we are pleased with the trajectory.
Temperature Control sales increased 28.2% versus last year's second quarter, representing an all-time quarterly sales record, as elevated heat persisted across much of the country. Year-to-date we are up nearly 16%, and temperatures remain hot, which should be positive for the third quarter.
Our Engineered Solutions segment sales increased 6.1% in the quarter and 5.3% for the year, attributable to strong demand from our existing customers as well as new business wins. We continue to see positive results from our cross-selling efforts, and the pipeline of opportunities remains healthy.
Looking at profitability, our Adjusted EBITDA margin was 10.1% in the quarter vs. 10.0% last year. Excluding $1.3 million of start-up costs related to our new distribution center in Shawnee, KS, Adjusted EBITDA was 10.4% in the quarter. During the quarter, our operating income was impacted by a roughly $1.0 million increase in customer factoring program expense over last year mainly due to higher sales volumes, although it appears we are finally starting to see a leveling off from the impact of elevated interest rates.
Mr. Sills commented, "While we are pleased with our sales results, we continue to work on our profitability, as cost pressures persist. To address this, we chose to implement an early retirement program launched in the second quarter. Benefits of this program will phase in over the next few quarters, and once fully realized, we anticipate achieving an estimated $10 million of annualized savings. We expect one-time severance costs of approximately $6 million related to this program, of which $2.6 million was incurred in the second quarter, and an additional $3.1 million is expected to be incurred in the second half of 2024 as people retire."
During the quarter, we announced a definitive agreement to acquire AX V Nissens III APS ("Nissens"), a leading European manufacturer and distributor of aftermarket engine cooling and air conditioning products with a growing array of vehicle control technologies, for approximately $388 million (EUR360 million) in cash. Nissens has annual revenues of approximately $260 million with a mid-teens EBITDA margin rate. The transaction is expected to be completed before the end of 2024, and is subject to certain closing conditions, including receipt of applicable antitrust and other regulatory approvals. We are extremely excited about this major step forward for our company. For more details, please see our July 10, 2024 press release and investor presentation related to the Nissens acquisition located on our website www.smpcorp.com.
As part of our commitment to return value to shareholders, 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 September 3, 2024 to stockholders of record on August 15, 2024. Additionally, we purchased $7.8 million of common stock under our existing share repurchase authorization during the quarter, leaving our remaining authorization under the current program at $19.6 million.
Regarding our sales and profit expectations for the full year of 2024, and excluding any impact from the Nissens acquisition, we anticipate sales growth will be in the low- to mid-single digits, up from prior projections, and Adjusted EBITDA will be in a range of 9.0-9.5%, consistent with what we noted previously. We expect to incur roughly $3-4 million of additional start-up costs in 2024 as compared to 2023 for our new distribution center in Shawnee, KS, related to increased rent as well as duplicate expenses as we transition away from our Edwardsville, KS distribution center.
In closing, Mr. Sills commented "As we look towards the second half of the year, we are encouraged with the demand seen so far across all our segments. Aftermarket fundamentals remain positive, and our Engineered Solutions business is performing well. Lastly, we are excited about our planned acquisition of Nissens that expands our geographic presence, and provides a meaningful global growth platform for many years to come. 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 Thursday, August 1, 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 2Q 2024 Earnings Webcast link. Investors may also listen to the call by dialing 800-343-4136 (domestic) or 203-518-9843 (international) and using conference ID SMP2Q2024. 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 800-938-2490 (domestic) or 402-220-9028 (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
SIX MONTHS ENDED
JUNE 30,
JUNE 30,
2024 2023 2024 2023
(Unaudited)
(Unaudited)
NET SALES $389,829 $353,075 $721,232 $681,103
COST OF SALES 278,382 251,806 520,263 488,567
GROSS PROFIT 111,447 101,269 200,969 192,536
SELLING, GENERAL & ADMINISTRATIVE EXPENSES 83,885 73,843 158,618 143,476
RESTRUCTURING AND INTEGRATION EXPENSES 2,559 294 2,751 1,206
OTHER INCOME (EXPENSE), NET (17) 46 5 70
OPERATING INCOME 24,986 27,178 39,605 47,924
OTHER NON-OPERATING INCOME, NET 2,199 802 3,018 1,027
INTEREST EXPENSE 2,752 3,283 4,819 7,145
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES 24,433 24,697 37,804 41,806
PROVISION FOR INCOME TAXES 6,109 6,289 9,451 10,661
EARNINGS FROM CONTINUING OPERATIONS 18,324 18,408 28,353 31,145
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES (917) (9,221) (1,956) (10,001)
NET EARNINGS 17,407 9,187 26,397 21,144
NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST 344 50 510 89
NET EARNINGS ATTRIBUTABLE TO SMP (a) $17,063 $9,137 $25,887 $21,055
NET EARNINGS ATTRIBUTABLE TO SMP
---
EARNINGS FROM CONTINUING OPERATIONS $17,980 $18,358 $27,843 $31,056
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES (917) (9,221) (1,956) (10,001)
TOTAL $17,063 $9,137 $25,887 $21,055
NET EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SMP
---
BASIC EARNINGS FROM CONTINUING OPERATIONS $0.83 $0.85 $1.27 $1.43
DISCONTINUED OPERATION (0.05) (0.43) (0.09) (0.46)
NET EARNINGS PER COMMON SHARE - BASIC $0.78 $0.42 $1.18 $0.97
DILUTED EARNINGS FROM CONTINUING OPERATIONS $0.81 $0.83 $1.25 $1.40
DISCONTINUED OPERATION (0.04) (0.42) (0.09) (0.45)
NET EARNINGS PER COMMON SHARE - DILUTED $0.77 $0.41 $1.16 $0.95
WEIGHTED AVERAGE NUMBER OF COMMON SHARES 21,767,526 21,689,067 21,845,678 21,649,562
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES 22,185,536 22,183,489 22,277,590 22,139,708
(a) "SMP" refers to Standard Motor Products, Inc. and subsidiaries.
STANDARD MOTOR PRODUCTS, INC.
Segment Revenues and Operating Profit
(In thousands)
THREE MONTHS ENDED
SIX MONTHS ENDED
JUNE 30,
JUNE 30,
2024 2023 2024 2023
(Unaudited)
(Unaudited)
Revenues
---
Engine Management (Ignition, Emissions and
Fuel Delivery) $115,529 $113,589 $231,614 $229,672
Electrical and Safety 57,128 52,867 109,535 104,671
Wire sets and other 16,084 17,333 33,116 34,023
Vehicle Control 188,741 183,789 374,265 368,366
AC System Components 99,970 72,730 149,930 123,528
Other Thermal Components 24,511 24,344 46,159 45,952
Temperature Control 124,481 97,074 196,089 169,480
Commercial Vehicle 23,483 20,225 46,391 40,457
Construction / Agriculture 9,473 11,138 19,549 22,830
Light Vehicle 24,686 23,981 46,489 47,000
All Other 18,965 16,868 38,449 32,970
Engineered Solutions 76,607 72,212 150,878 143,257
Revenues $389,829 $353,075 $721,232 $681,103
Gross Margin
---
Vehicle Control $59,969 31.8 % $60,109 32.7 % $118,868 31.8 % $118,581 32.2 %
Temperature Control 36,609 29.4 % 26,512 27.3 % 56,298 28.7 % 45,667 26.9 %
Engineered Solutions 14,869 19.4 % 14,648 20.3 % 25,803 17.1 % 28,288 19.7 %
All Other
Gross Margin $111,447 28.6 % $101,269 28.7 % $200,969 27.9 % $192,536 28.3 %
Selling, General & Administrative
---
Vehicle Control $43,844 23.2 % $40,720 22.2 % $87,102 23.3 % $81,556 22.1 %
Temperature Control 23,165 18.6 % 20,584 21.2 % 40,765 20.8 % 37,112 21.9 %
Engineered Solutions 8,676 11.3 % 8,481 11.7 % 17,367 11.5 % 16,390 11.4 %
All Other 5,789 4,058 10,973 8,418
Subtotal $81,474 20.9 % $73,843 20.9 % $156,207 21.7 % $143,476 21.1 %
Acquisition Expenses 2,411 0.6 % 0.0 % 2,411 0.3 % 0.0 %
Selling, General & Administrative $83,885 21.5 % $73,843 20.9 % $158,618 22.0 % $143,476 21.1 %
Operating Income
---
Vehicle Control $16,125 8.5 % $19,389 10.5 % $31,766 8.5 % $37,025 10.1 %
Temperature Control 13,444 10.8 % 5,928 6.1 % 15,533 7.9 % 8,555 5.0 %
Engineered Solutions 6,193 8.1 % 6,167 8.5 % 8,436 5.6 % 11,898 8.3 %
All Other (5,789) (4,058) (10,973) (8,418)
Subtotal $29,973 7.7 % $27,426 7.8 % $44,762 6.2 % $49,060 7.2 %
Restructuring & Integration (2,559) -0.7 % (294) -0.1 % (2,751) -0.4 % (1,206) -0.2 %
Acquisition Expenses (2,411) -0.6 % 0.0 % (2,411) -0.3 % 0.0 %
Other Income (Expense), Net (17) 0.0 % 46 0.0 % 5 0.0 % 70 0.0 %
Operating Income $24,986 6.4 % $27,178 7.7 % $39,605 5.5 % $47,924 7.0 %
STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures
(In thousands, except per share amounts)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2024 2023 2024 2023
(Unaudited)
(Unaudited)
EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP
---
GAAP EARNINGS FROM CONTINUING OPERATIONS $17,980 $18,358 $27,843 $31,056
RESTRUCTURING AND INTEGRATION EXPENSES 2,559 294 2,751 1,206
ACQUISITION EXPENSES 2,411 2,411
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS (1,292) (77) (1,342) (314)
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS $21,658 $18,575 $31,663 $31,948
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP
---
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS $0.81 $0.83 $1.25 $1.40
RESTRUCTURING AND INTEGRATION EXPENSES 0.12 0.01 0.12 0.05
ACQUISITION EXPENSES 0.11 0.11
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS (0.06) (0.06) (0.01)
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS $0.98 $0.84 $1.42 $1.44
OPERATING INCOME
---
GAAP OPERATING INCOME $24,986 $27,178 $39,605 $47,924
RESTRUCTURING AND INTEGRATION EXPENSES 2,559 294 2,751 1,206
ACQUISITION EXPENSES 2,411 2,411
OTHER (INCOME) EXPENSE, NET 17 (46) (5) (70) LAST TWELVE MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
NON-GAAP OPERATING INCOME $29,973 $27,426 $44,762 $49,060 2024 2023 2023
(Unaudited)
EBITDA WITHOUT SPECIAL ITEMS
---
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES $24,433 $24,697 $37,804 $41,806 $77,714 $84,580 $81,716
DEPRECIATION AND AMORTIZATION 7,318 7,047 14,619 14,129 29,512 28,534 29,022
INTEREST EXPENSE 2,752 3,283 4,819 7,145 10,961 15,136 13,287
EBITDA 34,503 35,027 57,242 63,080 118,187 128,250 124,025
RESTRUCTURING AND INTEGRATION EXPENSES 2,559 294 2,751 1,206 4,187 3,053 2,642
ACQUISITION EXPENSES 2,411 2,411 2,411
CUSTOMER BANKRUPTCY CHARGE 7,002
SPECIAL ITEMS 4,970 294 5,162 1,206 6,598 10,055 2,642
EBITDA WITHOUT SPECIAL ITEMS $39,473 $35,321 $62,404 $64,286 $124,785 $138,305 $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 JUNE 30, 2024
Vehicle Temperature Engineered
Control Control Solutions All Other Consolidated
(Unaudited)
OPERATING INCOME
---
GAAP OPERATING INCOME $15,116 $13,197 $5,812 $(9,139) $24,986
RESTRUCTURING AND INTEGRATION EXPENSES 1,009 247 364 939 2,559
ACQUISITION EXPENSES 2,411 2,411
OTHER EXPENSE, NET 17 17
NON-GAAP OPERATING INCOME $16,125 $13,444 $6,193 $(5,789) $29,973
EBITDA WITHOUT SPECIAL ITEMS
---
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES $13,067 $13,978 $6,529 $(9,141) $24,433
DEPRECIATION AND AMORTIZATION 3,606 780 2,463 469 7,318
INTEREST EXPENSE 1,899 726 706 (579) 2,752
EBITDA 18,572 15,484 9,698 (9,251) 34,503
RESTRUCTURING AND INTEGRATION EXPENSES 1,009 247 364 939 2,559
ACQUISITION EXPENSES 2,411 2,411
SPECIAL ITEMS 1,009 247 364 3,350 4,970
EBITDA WITHOUT SPECIAL ITEMS $19,581 $15,731 $10,062 $(5,901) $39,473
% of Net Sales 10.4 % 12.6 % 13.1 % 10.1 %
(In thousands)
THREE MONTHS ENDED JUNE 30, 2023
Vehicle Temperature Engineered
Control Control Solutions All Other Consolidated
(Unaudited)
OPERATING INCOME
---
GAAP OPERATING INCOME $19,273 $5,800 $6,163 $(4,058) $27,178
RESTRUCTURING AND INTEGRATION EXPENSES 154 128 12 294
OTHER INCOME, NET (38) (8) (46)
NON-GAAP OPERATING INCOME $19,389 $5,928 $6,167 $(4,058) $27,426
EBITDA WITHOUT SPECIAL ITEMS
---
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES $17,235 $5,259 $6,247 $(4,044) $24,697
DEPRECIATION AND AMORTIZATION 3,373 768 2,486 420 7,047
INTEREST EXPENSE 2,304 842 637 (500) 3,283
EBITDA 22,912 6,869 9,370 (4,124) 35,027
RESTRUCTURING AND INTEGRATION EXPENSES 154 128 12 294
SPECIAL ITEMS 154 128 12 294
EBITDA WITHOUT SPECIAL ITEMS $23,066 $6,997 $9,382 $(4,124) $35,321
% of Net Sales 12.6 % 7.2 % 13.0 % 10.0 %
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)
SIX MONTHS ENDED JUNE 30, 2024
Vehicle Temperature Engineered
Control Control Solutions All Other Consolidated
(Unaudited)
OPERATING INCOME
---
GAAP OPERATING INCOME $30,656 $15,228 $8,044 $(14,323) $39,605
RESTRUCTURING AND INTEGRATION EXPENSES 1,110 305 397 939 2,751
ACQUISITION EXPENSES 2,411 2,411
OTHER INCOME, NET (5) (5)
NON-GAAP OPERATING INCOME $31,766 $15,533 $8,436 $(10,973) $44,762
EBITDA WITHOUT SPECIAL ITEMS
---
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES $27,382 $15,866 $8,875 $(14,319) $37,804
DEPRECIATION AND AMORTIZATION 7,131 1,678 4,932 878 14,619
INTEREST EXPENSE 3,326 1,257 1,370 (1,134) 4,819
EBITDA 37,839 18,801 15,177 (14,575) 57,242
RESTRUCTURING AND INTEGRATION EXPENSES 1,110 305 397 939 2,751
ACQUISITION EXPENSES 2,411 2,411
SPECIAL ITEMS 1,110 305 397 3,350 5,162
EBITDA WITHOUT SPECIAL ITEMS $38,949 $19,106 $15,574 $(11,225) $62,404
% of Net Sales 10.4 % 9.7 % 10.3 % 8.7 %
(In thousands)
SIX MONTHS ENDED JUNE 30, 2023
Vehicle Temperature Engineered
Control Control Solutions All Other Consolidated
(Unaudited)
OPERATING INCOME
---
GAAP OPERATING INCOME $36,648 $7,884 $11,810 $(8,418) $47,924
RESTRUCTURING AND INTEGRATION EXPENSES 439 671 96 1,206
OTHER INCOME, NET (62) (8) (70)
NON-GAAP OPERATING INCOME $37,025 $8,555 $11,898 $(8,418) $49,060
EBITDA WITHOUT SPECIAL ITEMS
---
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES $32,292 $6,364 $11,533 $(8,383) $41,806
DEPRECIATION AND AMORTIZATION 6,785 1,531 4,967 846 14,129
INTEREST EXPENSE 5,045 1,735 996 (631) 7,145
EBITDA 44,122 9,630 17,496 (8,168) 63,080
RESTRUCTURING AND INTEGRATION EXPENSES 439 671 96 1,206
SPECIAL ITEMS 439 671 96 1,206
EBITDA WITHOUT SPECIAL ITEMS $44,561 $10,301 $17,592 $(8,168) $64,286
% of Net Sales 12.1 % 6.1 % 12.3 % 9.4 %
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.
Condensed Consolidated Balance Sheets
(In thousands)
JUNE JUNE DECEMBER
2024 2023 2023
(Unaudited) (Unaudited)
ASSETS
---
CASH AND CASH EQUIVALENTS $26,156 $23,019 $32,526
ACCOUNTS RECEIVABLE, GROSS 247,989 223,862 168,327
ALLOWANCE FOR EXPECTED CREDIT LOSSES 8,672 5,757 8,045
ACCOUNTS RECEIVABLE, NET 239,317 218,105 160,282
INVENTORIES 508,183 499,134 507,075
UNRETURNED CUSTOMER INVENTORY 18,119 19,722 18,240
OTHER CURRENT ASSETS 24,880 27,903 26,100
TOTAL CURRENT ASSETS 816,655 787,883 744,223
PROPERTY, PLANT AND EQUIPMENT, NET 131,921 107,590 121,872
OPERATING LEASE RIGHT-OF-USE ASSETS 99,121 73,093 100,065
GOODWILL 134,476 132,391 134,729
OTHER INTANGIBLES, NET 87,597 96,291 92,308
DEFERRED INCOME TAXES 40,287 33,905 40,533
INVESTMENT IN UNCONSOLIDATED AFFILIATES 25,615 41,557 24,050
OTHER ASSETS 38,656 29,435 35,267
TOTAL ASSETS $1,374,328 $1,302,145 $1,293,047
LIABILITIES AND STOCKHOLDERS' EQUITY
---
CURRENT PORTION OF REVOLVING CREDIT FACILITY
$ - $53,700
$ -
CURRENT PORTION OF TERM LOAN AND OTHER DEBT 5,030 5,028 5,029
ACCOUNTS PAYABLE 105,094 94,657 107,455
ACCRUED CUSTOMER RETURNS 53,102 43,664 38,238
ACCRUED CORE LIABILITY 16,017 20,187 18,399
ACCRUED REBATES 54,280 43,781 42,278
PAYROLL AND COMMISSIONS 32,404 28,346 29,561
SUNDRY PAYABLES AND ACCRUED EXPENSES 66,239 59,126 63,303
TOTAL CURRENT LIABILITIES 332,166 348,489 304,263
LONG-TERM DEBT 203,162 164,488 151,182
NONCURRENT OPERATING LEASE LIABILITY 88,820 64,271 88,974
ACCRUED ASBESTOS LIABILITIES 66,357 59,565 72,013
OTHER LIABILITIES 29,501 24,917 25,742
TOTAL LIABILITIES 720,006 661,730 642,174
TOTAL SMP STOCKHOLDERS' EQUITY 640,018 629,673 635,064
NONCONTROLLING INTEREST 14,304 10,742 15,809
TOTAL STOCKHOLDERS' EQUITY 654,322 640,415 650,873
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,374,328 $1,302,145 $1,293,047
STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
SIX MONTHS ENDED
JUNE 30,
2024 2023
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
-
NET EARNINGS $26,397 $21,144
ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES:
DEPRECIATION AND AMORTIZATION 14,619 14,129
LOSS FROM DISCONTINUED OPERATIONS, NET
OF TAXES 1,956 10,001
OTHER 5,560 5,835
CHANGE IN ASSETS AND LIABILITIES:
ACCOUNTS RECEIVABLE (81,060) (48,271)
INVENTORY (3,641) 30,924
ACCOUNTS PAYABLE (2,168) 4,323
PREPAID EXPENSES AND OTHER CURRENT
ASSETS 2,757 (468)
SUNDRY PAYABLES AND ACCRUED EXPENSES 29,966 2,776
OTHER (4,525) (1,023)
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES (10,139) 39,370
CASH FLOWS FROM INVESTING ACTIVITIES
-
CASH ACQUIRED IN STEP ACQUISITION -
CAPITAL EXPENDITURES (22,941) (9,507)
OTHER INVESTING ACTIVITIES 18 66
NET CASH USED IN INVESTING ACTIVITIES (22,923) (9,441)
CASH FLOWS FROM FINANCING ACTIVITIES
-
NET CHANGE IN DEBT 51,986 (16,547)
PURCHASE OF TREASURY STOCK (10,409)
DIVIDENDS PAID (12,706) (12,544)
OTHER FINANCING ACTIVITIES (400) 3
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES 28,471 (29,088)
EFFECT OF EXCHANGE RATE CHANGES ON CASH (1,779) 1,028
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (6,370) 1,869
CASH AND CASH EQUIVALENTS at beginning
of period 32,526 21,150
CASH AND CASH EQUIVALENTS at end of
period $26,156 $23,019
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SOURCE Standard Motor Products, Inc.
