SMP
$45.90
Standard Motor Products
$.51
1.12%
Earnings Details
1st Quarter March 2019
Tuesday, April 30, 2019 8:30:00 AM
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Summary

Standard Motor Products (SMP) Recent Earnings

Standard Motor Products (SMP) reported 1st Quarter March 2019 earnings of $0.57 per share on revenue of $283.8 million. The consensus earnings estimate was $0.63 per share on revenue of $279.9 million. Revenue grew 8.4% on a year-over-year basis.

Standard Motor Products Inc is an independent manufacturer and distributor of replacement parts for motor vehicles in the automotive aftermarket industry.

Results
Reported Earnings
$0.57
Earnings Whisper
-
Consensus Estimate
$0.63
Reported Revenue
$283.8 Mil
Revenue Estimate
$279.9 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Standard Motor Products, Inc. Announces First Quarter 2019 Results and a Quarterly Dividend

NEW YORK, April 30, 2019 /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, 2019.

(PRNewsfoto/Standard Motor Products, Inc.)

Consolidated net sales for the first quarter of 2019 were $283.8 million, compared to consolidated net sales of $261.8 million during the comparable quarter in 2018. Earnings from continuing operations for the first quarter of 2019 were $13.1 million or 57 cents per diluted share, compared to $8.6 million or 37 cents per diluted share in the first quarter of 2018. 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 2019 were $13.1 million or 57 cents per diluted share, compared to $10.5 million or  46 cents per diluted share in the first quarter of 2018.

Mr. Eric P. Sills, Standard Motor Products' Chief Executive Officer and President stated, "We are pleased with our first quarter, showing gains in sales and earnings, with strong performance in both of our operating divisions.

"Engine Management sales were up 6.9%. The wire and cable portion was down 3.3%. The non-wire portion of engine management was up 9.3%, benefitting from pipeline orders, the pass-through of tariff costs, an uptick in OE business, and a general improvement in market conditions. Meanwhile, our customer POS remains in the low single digits, which tends to be a better indicator of long term trends.

"Engine Management gross margin was down 30 basis points, attributable to the tariffs being passed through to customers at our cost. We are pleased to announce that the expenses related to the integration of the General Cable wire business are now largely behind us.

"As expected, our Temperature Control sales rebounded nicely, up 14.4%. While a portion of this was attributable to tariff pass-through, the majority was the result of strong pre-season orders as customers rebuilt their shelf inventory after a strong 2018 selling season. That said, while we are obviously pleased with the quarter, the year will still depend on what happens in the summer months.

"Temperature Control gross margin improved 80 basis points, and, as with Engine Management, were dampened due to tariffs being passed through at our cost. As previously discussed, within SG&A, we are anticipating improvements in our distribution expense as we fully implement our new warehouse automation.

"Finally, as previously announced, on April 1st we completed the acquisition of the Pollak business of Stoneridge, Inc.  Although we are still in our first month, we are pleased with what we have seen, and believe it will be an excellent fit for SMP. We will be relocating the acquired production lines to existing facilities over the course of the next year, and expect significant savings once integrated into SMP. In addition, we see future potential as we increase our presence in the heavy duty and commercial vehicle markets."

The Board of Directors has approved payment of a quarterly dividend of 23 cents per share on the common stock outstanding. The dividend will be paid on June 3, 2019 to stockholders of record on May 15, 2019.

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Tuesday, April 30, 2019.  The dial-in number is 877-876-9176 (domestic) or 785-424-1670 (international). The playback number is 800-925-9416 (domestic) or 402-220-5387 (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,




2019



2018




(Unaudited)


NET SALES


$       283,766



$       261,826









COST OF SALES


205,803



189,237









GROSS PROFIT


77,963



72,589









SELLING, GENERAL & ADMINISTRATIVE EXPENSES


60,000



57,717


RESTRUCTURING AND INTEGRATION EXPENSES


-



2,836


OTHER INCOME (EXPENSE), NET


(6)



271









OPERATING INCOME 


17,957



12,307









OTHER NON-OPERATING INCOME (EXPENSE), NET


646



(31)









INTEREST EXPENSE


1,089



632









EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES


17,514



11,644









PROVISION FOR INCOME TAXES


4,410



3,047









EARNINGS FROM CONTINUING OPERATIONS


13,104



8,597









LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES


(888)



(608)









NET EARNINGS 


$         12,216



$           7,989












































NET EARNINGS PER COMMON SHARE:














   BASIC EARNINGS FROM CONTINUING OPERATIONS


$             0.58



$             0.38


   DISCONTINUED OPERATION


(0.04)



(0.02)


   NET EARNINGS PER COMMON SHARE - BASIC


$             0.54



$             0.36
















   DILUTED EARNINGS FROM CONTINUING OPERATIONS


$             0.57



$             0.37


   DISCONTINUED OPERATION


(0.04)



(0.02)


   NET EARNINGS PER COMMON SHARE - DILUTED


$             0.53



$             0.35
















WEIGHTED AVERAGE NUMBER OF COMMON SHARES


22,421,795



22,498,510


WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES


22,905,364



22,967,281


 

 

STANDARD MOTOR PRODUCTS, INC.

Segment Revenues and Operating Income















(In thousands)























THREE MONTHS ENDED




MARCH 31,




2019



2018




(Unaudited)


Revenues







Ignition, Emission Control, Fuel & Safety







   Related System Products


$       176,061



$       161,077


Wire and Cable


37,128



38,411


        Engine Management


213,189



199,488









Compressors


39,811



29,898


Other Climate Control Parts


29,113



30,333


        Temperature Control


68,924



60,231









All Other


1,653



2,107


        Revenues


$         283,766



$         261,826









Gross Margin







Engine Management


$         59,693

28.0%


$         56,470

28.3%

Temperature Control


16,191

23.5%


13,667

22.7%

All Other


2,079



2,452


        Gross Margin


$           77,963

27.5%


$           72,589

27.7%








Selling, General & Administrative







Engine Management


$         37,343

17.5%


$           36,264

18.2%

Temperature Control


14,141

20.5%


12,829

21.3%

All Other


8,516



8,624


        Selling, General & Administrative


$           60,000

21.1%


$           57,717

22.0%















Operating Income







Engine Management


$         22,350

10.5%


$           20,206

10.1%

Temperature Control


2,050

3.0%


838

1.4%

All Other


(6,437)



(6,172)


        Subtotal


17,963

6.3%


14,872

5.7%

Restructuring & Integration


-

0.0%


(2,836)

-1.1%

Other Income (Expense), Net


(6)

0.0%


271

0.1%

        Operating Income


$           17,957

6.3%


$           12,307

4.7%

 

 

STANDARD MOTOR PRODUCTS, INC.


Reconciliation of GAAP and Non-GAAP Measures














(In thousands, except per share amounts)








THREE MONTHS ENDED




MARCH 31,




2019


2018



(Unaudited)


EARNINGS FROM CONTINUING OPERATIONS












GAAP EARNINGS FROM CONTINUING OPERATIONS


$                  13,104


$                    8,597








RESTRUCTURING AND INTEGRATION EXPENSES


-


2,836


GAIN FROM SALE OF BUILDINGS


-


(218)


INCOME TAX EFFECT RELATED TO RECONCILING ITEMS


-


(681)


NON-GAAP EARNINGS FROM CONTINUING OPERATIONS


$                  13,104


$                  10,534














DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS












GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS


$                     0.57


$                     0.37








RESTRUCTURING AND INTEGRATION EXPENSES


-


0.12


GAIN FROM SALE OF BUILDINGS


-


(0.01)


INCOME TAX EFFECT RELATED TO RECONCILING ITEMS


-


(0.02)








NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS


$                     0.57


$                     0.46














OPERATING INCOME












GAAP OPERATING INCOME


$                  17,957


$                  12,307








RESTRUCTURING AND INTEGRATION EXPENSES


-


2,836


OTHER (INCOME) EXPENSE, NET


6


(271)








NON-GAAP OPERATING INCOME


$                  17,963


$                  14,872




















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,



2019




2018



(Unaudited)












ASSETS








CASH


$             11,746




$             11,138








ACCOUNTS RECEIVABLE, GROSS


180,807




163,222

ALLOWANCE FOR DOUBTFUL ACCOUNTS


6,643




5,687

ACCOUNTS RECEIVABLE, NET


174,164




157,535








INVENTORIES


365,251




349,811

UNRETURNED CUSTOMER INVENTORY


19,784




20,484

OTHER CURRENT ASSETS


9,412




7,256








TOTAL CURRENT ASSETS


580,357




546,224








PROPERTY, PLANT AND EQUIPMENT, NET


88,850




90,754

OPERATING LEASE RIGHT-OF-USE ASSETS


37,301




-

GOODWILL


67,370




67,321

OTHER INTANGIBLES, NET


46,581




48,411

DEFERRED INCOME TAXES


41,126




42,334

INVESTMENT IN UNCONSOLIDATED AFFILIATES


33,703




32,469

OTHER ASSETS


17,446




15,619








TOTAL ASSETS


$           912,734




$           843,132















LIABILITIES AND STOCKHOLDERS' EQUITY















NOTES PAYABLE


$             78,717




$             43,689

CURRENT PORTION OF OTHER DEBT


5,023




5,377

ACCOUNTS PAYABLE


96,878




94,357

ACCRUED CUSTOMER RETURNS


55,318




57,433

ACCRUED CORE LIABILITY


28,260




31,263

OTHER CURRENT LIABILITIES


81,374




80,467








TOTAL CURRENT LIABILITIES


345,570




312,586








OTHER LONG-TERM DEBT


161




153

NONCURRENT OPERATING LEASE LIABILITIES


30,130




-

ACCRUED ASBESTOS LIABILITIES


43,837




45,117

OTHER LIABILITIES


19,996




18,075








 TOTAL LIABILITIES 


439,694




375,931








 TOTAL STOCKHOLDERS' EQUITY 


473,040




467,201








 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 


$           912,734




$           843,132

 

 

STANDARD MOTOR PRODUCTS, INC.

Condensed Consolidated Statements of Cash Flows




















(In thousands)



















THREE MONTHS ENDED



MARCH 31,



2019



2018



(Unaudited)








CASH FLOWS FROM OPERATING ACTIVITIES












NET EARNINGS 

$        12,216



$           7,989


ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH






USED IN OPERATING ACTIVITIES:






DEPRECIATION AND AMORTIZATION

6,178



6,016


OTHER

5,303



4,459


CHANGE IN ASSETS AND LIABILITIES:






ACCOUNTS RECEIVABLE

(22,252)



(20,367)


INVENTORY 

(14,656)



(3,390)


ACCOUNTS PAYABLE

1,181



10,674


PREPAID EXPENSES AND OTHER CURRENT ASSETS

(282)



1,559


SUNDRY PAYABLES AND ACCRUED EXPENSES 

(12,911)



(12,997)


OTHER

(1,503)



(95)


NET CASH USED IN OPERATING ACTIVITIES

(26,726)



(6,152)














CASH FLOWS FROM INVESTING ACTIVITIES












ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES

-



(6,472)


NET PROCEEDS FROM SALE OF FACILITY

4,801



-


CAPITAL EXPENDITURES

(3,084)



(6,903)


OTHER INVESTING ACTIVITIES

29



-


NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 

1,746



(13,375)














CASH FLOWS FROM FINANCING ACTIVITIES












NET CHANGE IN DEBT

34,758



34,054


PURCHASE OF TREASURY STOCK

(5,835)



(3,221)


DIVIDENDS PAID

(5,159)



(4,721)


OTHER FINANCING ACTIVITIES

1,409



1,885


NET CASH PROVIDED BY FINANCING ACTIVITIES

25,173



27,997














EFFECT OF EXCHANGE RATE CHANGES ON CASH

415



433


NET INCREASE IN CASH AND CASH EQUIVALENTS

608



8,903


CASH AND CASH EQUIVALENTS at beginning of period

11,138



17,323


CASH AND CASH EQUIVALENTS at end of period

$        11,746



$        26,226

 

 

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SOURCE Standard Motor Products, Inc.