NEWS

Standard Motor Products, Inc. Announces First Quarter 2015 Results and a Quarterly Dividend

Thursday, Apr 30, 2015

NEW YORK, April 30, 2015 /PRNewswire/ -- Standard Motor Products, Inc. (NYSE: SMP), an automotive replacement parts manufacturer and distributor, reported today its consolidated financial results for the three months ending March 31, 2015.

Consolidated net sales for the first quarter of 2015 were $227.6 million, compared to consolidated net sales of $232.8 million during the comparable quarter in 2014.  Earnings from continuing operations for the first quarter of 2015 were $9.3 million or 40 cents per diluted share, compared to $12.4 million or 53 cents per diluted share in the first quarter of 2014. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the first quarter of 2015 were $9.2 million or 40 cents per diluted share, compared to $12.4 million or 53 cents per diluted share in the first quarter of 2014.

Commenting on the results, Mr. Lawrence I. Sills, Standard Motor Products' Chairman and Chief Executive Officer, stated, "Our results were negatively impacted by foreign exchange movements, plus several other relatively short term events.  While obviously not pleased with the first quarter results, we remain confident for the balance of the year.

"Our net sales were down from the first quarter of 2014 by roughly $5 million, of which $2 million—close to 40%—resulted from foreign exchange fluctuations.

"In Engine Management, January was a soft month, partially caused by lost days due to ice and snow in certain parts of the country. However, February and March sales bounced back to healthy levels and April sales appear solid as well.

"For Temperature Control, the first quarter essentially represents pre-season stocking orders. Coming after two cool summers in a row, it is not surprising that pre-season sales were slightly down. The test will be in the second and third quarters, which constitute the bulk of the selling season.

"Gross profit was also down slightly from the prior year. In Temperature Control, we have previously advised that gross margin would continue to be negatively impacted in the first half of 2015 as a result of the production cutbacks in the second half of 2014.

"In Engine Management, we incurred several million dollars expense in the first quarter related to our new production line for rebuilt diesel fuel injectors as we strive to ensure the highest possible quality. We believe these costs will continue, though at a reduced rate, in the second quarter. The diesel business has significant growth potential and these costs represent an excellent investment for the future.

"General and Administrative expenses, as we previously announced, are higher than a year ago, primarily from the year-over-year reduction in amortization of prior service cost as we wind down our retiree medical program. The program will end December 2016.

"All the above negatively affected our first quarter results. However, as we have said, most of these were either foreign exchange related or relatively short term in nature.

On the positive side, sales since January have been healthy; industry demographics continue to be positive; and we continue to upgrade and improve our recent acquisitions.  We are optimistic for the balance of the year.

The Board of Directors has approved payment of a quarterly dividend of fifteen cents per share on the common stock outstanding. The dividend will be paid on June 1, 2015 to stockholders of record on May 15, 2015.

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Thursday, April 30, 2015.  The dial in number is 800-895-1715 (domestic) or 785-424-1059 (international). The playback number is 800-839-5123 (domestic) or 402-220-2689 (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







MARCH 31,







2015





2014







(Unaudited)



NET SALES



$       227,589





$       232,752

















COST OF SALES



163,700





164,842

















GROSS PROFIT



63,889





67,910

















SELLING, GENERAL & ADMINISTRATIVE EXPENSES



49,198





47,594



RESTRUCTURING AND INTEGRATION EXPENSES



57





171



OTHER INCOME, NET



281





260

















OPERATING INCOME 



14,915





20,405

















OTHER NON-OPERATING INCOME (EXPENSE), NET



151





(413)

















INTEREST EXPENSE



426





308

















EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES



14,640





19,684

















PROVISION FOR INCOME TAXES



5,301





7,277

















EARNINGS FROM CONTINUING OPERATIONS



9,339





12,407

















LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES



(391)





(682)

















NET EARNINGS 



$           8,948





$         11,725























































































NET EARNINGS PER COMMON SHARE:



























   BASIC EARNINGS FROM CONTINUING OPERATIONS



$             0.41





$             0.54



   DISCONTINUED OPERATION



(0.02)





(0.03)



   NET EARNINGS PER COMMON SHARE - BASIC



$             0.39





$             0.51































   DILUTED EARNINGS FROM CONTINUING OPERATIONS



$             0.40





$             0.53



   DISCONTINUED OPERATION



(0.01)





(0.03)



   NET EARNINGS PER COMMON SHARE - DILUTED



$             0.39





$             0.50































WEIGHTED AVERAGE NUMBER OF COMMON SHARES



22,910,889





22,947,241



WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES



23,238,050





23,224,698



 

STANDARD MOTOR PRODUCTS, INC.

Segment Revenues and Operating Income





























(In thousands)













































THREE MONTHS ENDED







MARCH 31,







2015





2014







(unaudited)



Revenues













Engine Management



$          177,071





$         179,294



Temperature Control



48,728





51,485



All Other



1,790





1,973







$          227,589





$         232,752

















Gross Margin













Engine Management



$            51,702

29.2%



$           53,195

29.7%

Temperature Control



9,827

20.2%



11,885

23.1%

All Other



2,360





2,830







$            63,889

28.1%



$           67,910

29.2%















Selling, General & Administrative













Engine Management



$            30,004

16.9%



$           28,651

16.0%

Temperature Control



11,190

23.0%



11,272

21.9%

All Other



8,004





7,671







$            49,198

21.6%



$           47,594

20.4%





























Operating Income













Engine Management



$            21,698

12.3%



$           24,544

13.7%

Temperature Control



(1,363)

-2.8%



613

1.2%

All Other



(5,644)





(4,841)







14,691

6.5%



20,316

8.7%

Restructuring & Integration



(57)

0.0%



(171)

-0.1%

Other Income, Net



281

0.1%



260

0.1%





$            14,915

6.6%



$           20,405

8.8%

 

STANDARD MOTOR PRODUCTS, INC.





Reconciliation of GAAP and Non-GAAP Measures





























































(In thousands, except per share amounts)

















THREE MONTHS ENDED









MARCH 31,









2015



2014







(Unaudited)





EARNINGS FROM CONTINUING OPERATIONS



























GAAP EARNINGS FROM CONTINUING OPERATIONS



$              9,339



$            12,407



















RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)



34



103





GAIN FROM SALE OF BUILDINGS (NET OF TAX)



(157)



(157)



















NON-GAAP EARNINGS FROM CONTINUING OPERATIONS



$              9,216



$            12,353

































DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS



























GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS



$               0.40



$               0.53



















RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)



-



-





GAIN FROM SALE OF BUILDINGS (NET OF TAX)



-



-



















NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS



$               0.40



$               0.53

































OPERATING INCOME



























GAAP OPERATING INCOME



$            14,915



$            20,405



















RESTRUCTURING AND INTEGRATION EXPENSES



57



171





OTHER INCOME, NET



(281)



(260)



















NON-GAAP OPERATING INCOME



$            14,691



$            20,316















































MANAGEMENT BELIEVES THAT EARNINGS FROM CONTINUING OPERATIONS, DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS, AND OPERATING INCOME, 

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)













































March 31,







December 31,





2015







2014





(Unaudited)























ASSETS

















CASH



$         8,119







$       13,728















ACCOUNTS RECEIVABLE, GROSS



157,303







132,893

ALLOWANCE FOR DOUBTFUL ACCOUNTS



6,567







6,369

ACCOUNTS RECEIVABLE, NET



150,736







126,524















INVENTORIES



283,701







278,051

OTHER CURRENT ASSETS



45,619







47,730















TOTAL CURRENT ASSETS



488,175







466,033















PROPERTY, PLANT AND EQUIPMENT, NET



65,065







64,611

GOODWILL AND OTHER INTANGIBLES, NET



87,746







89,377

OTHER ASSETS



53,709







53,530















TOTAL ASSETS



$     694,695







$     673,551





























LIABILITIES AND STOCKHOLDERS' EQUITY































NOTES PAYABLE



$       71,567







$       56,558

CURRENT PORTION OF LONG TERM DEBT



122







175

ACCOUNTS PAYABLE



76,889







70,674

ACCRUED CUSTOMER RETURNS



35,814







30,621

OTHER CURRENT LIABILITIES



80,630







92,801















TOTAL CURRENT LIABILITIES



265,022







250,829















LONG-TERM DEBT



72







83

ACCRUED ASBESTOS LIABILITIES



33,399







33,462

OTHER LIABILITIES



15,653







15,024















 TOTAL LIABILITIES 



314,146







299,398















 TOTAL STOCKHOLDERS' EQUITY 



380,549







374,153















 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 



$     694,695







$     673,551

 

STANDARD MOTOR PRODUCTS, INC.

Condensed Consolidated Statements of Cash Flows







































(In thousands)





































THREE MONTHS ENDED





MARCH 31,





2015





2014





(Unaudited)















CASH FLOWS FROM OPERATING ACTIVITIES











NET EARNINGS 

$           8,948





$          11,725



ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH











PROVIDED BY (USED IN) OPERATING ACTIVITIES:











DEPRECIATION AND AMORTIZATION

4,288





4,084



OTHER

2,100





2,366



CHANGE IN ASSETS AND LIABILITIES:











ACCOUNTS RECEIVABLE

(25,289)





(852)



INVENTORY 

(7,473)





(12,715)



ACCOUNTS PAYABLE

5,255





9,310



OTHER

(1,992)





(4,686)



NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

(14,163)





9,232



























CASH FLOWS FROM INVESTING ACTIVITIES























CAPITAL EXPENDITURES

(4,009)





(2,763)



ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES

-





(12,225)



OTHER INVESTING ACTIVITIES

26





-



NET CASH USED IN INVESTING ACTIVITIES 

(3,983)





(14,988)



























CASH FLOWS FROM FINANCING ACTIVITIES























NET CHANGE IN DEBT

14,946





11,584



PURCHASE OF TREASURY STOCK

-





(4,526)



DIVIDENDS PAID

(3,434)





(2,984)



OTHER FINANCING ACTIVITIES

1,609





1,049



NET CASH PROVIDED BY FINANCING ACTIVITIES

13,121





5,123



























EFFECT OF EXCHANGE RATE CHANGES ON CASH

(584)





(503)



NET DECREASE IN CASH AND CASH EQUIVALENTS

(5,609)





(1,136)



CASH AND CASH EQUIVALENTS at beginning of period

13,728





5,559



CASH AND CASH EQUIVALENTS at end of period

$           8,119





$            4,423

 

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/standard-motor-products-inc-announces-first-quarter-2015-results-and-a-quarterly-dividend-300074758.html

SOURCE Standard Motor Products, Inc.