SMP
$50.53
Standard Motor Products
$.04
.08%
Earnings Details
1st Quarter March 2017
Wednesday, May 03, 2017 8:30:00 AM
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Summary

Standard Motor Products (SMP) Recent Earnings

Standard Motor Products (SMP) reported 1st Quarter March 2017 earnings of $0.74 per share on revenue of $282.4 million. The consensus earnings estimate was $0.65 per share on revenue of $263.6 million. Revenue grew 18.2% 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
$0.74
Earnings Whisper
-
Consensus Estimate
$0.65
Reported Revenue
$282.4 Mil
Revenue Estimate
$263.6 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Standard Motor Products, Inc. Announces First Quarter 2017 Results and a Quarterly Dividend

Standard Motor Products, Inc. (SMP), an automotive replacement parts manufacturer and distributor, reported today its consolidated financial results for the three months ending March 31, 2017.

Consolidated net sales for the first quarter of 2017 were $282.4 million, compared to consolidated net sales of $238.9 million during the comparable quarter in 2016. Earnings from continuing operations for the first quarter of 2017 were $16.4 million or 70 cents per diluted share, compared to $12.7 million or 55 cents per diluted share in the first quarter of 2016. 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 2017 were $17.1 million or 74 cents per diluted share, compared to $12.6 million or 55 cents per diluted share in the first quarter of 2016.

Mr. Eric P. Sills, Standard Motor Products’ Chief Executive Officer and President stated, "We are very pleased with our first quarter results. Compared to the first quarter of 2016, net sales were up 18.2%, net income was ahead 28.9%, and earnings per share from continuing operations, excluding special items, increased from 55 cents to 74 cents, a gain of almost 35%.

"By segment, Engine Management net sales increased 17% from the first quarter of 2016. Excluding the General Cable North American ignition wire set business, which we did not acquire until May 2016, Engine Management net sales were ahead 4%. Additionally, the quarter included pipeline orders from certain customers, who are in the process of increasing the breadth and depth of their inventories.

"Engine Management gross margin dropped to 30.3% vs. 31.7% in the first quarter 2016. This was primarily caused by the lower gross margin in the business acquired from General Cable. We are in the process of relocating this operation from Nogales, Mexico, into our existing wire assembly facility in Reynosa, Mexico. As previously stated, we plan to complete this move by the end of Q1 2018, and expect substantial synergies when the integration is complete. In the meantime, we are incurring additional costs as a result of the transition.

"Our Temperature Control division also had an excellent first quarter, with a sales increase of 23.8%. However, this mostly represents an increase in pre-season stocking orders, which was anticipated, as 2016 was a strong air conditioning year. The key to the 2017 season will be how hot it gets over the next several months.

"Turning to operations, we are in the process of implementing several major moves. In addition to the General Cable integration, mentioned above, we will be relocating the balance of our Grapevine, Texas, operation to Reynosa, Mexico, to be complete by the end of the year, and our electronics plant in Orlando, Florida, to an existing facility in Independence, Kansas, to be complete by mid-2018. These moves will result in significant additional savings. However, because of the effect on our employees, we do not take these moves lightly. Several of the affected employees have already agreed to transfer to other SMP locations, and we are encouraging others to do so. The balance will be treated fairly and equitably as we have always done.

"Finally, we welcome Patrick McClymont to our Board of Directors. Patrick comes to us with a wealth of experience. He has been a Partner and Managing Director of Goldman Sachs, an Executive Vice President and Chief Financial Officer at Sotheby’s, and is currently an Executive Vice President and Chief Financial Officer at IMAX. We are confident he will be a valuable member of our Board."

The Board of Directors has approved payment of a quarterly dividend of nineteen cents per share on the common stock outstanding. The dividend will be paid on June 1, 2017 to stockholders of record on May 15, 2017.

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Wednesday, May 3, 2017. The dial-in number is 800-895-1085 (domestic) or 785-424-1055 (international). The playback number is 800-839-9374 (domestic) or 402-220-6087 (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,
2017
2016
(Unaudited)
NET SALES
$
282,378
$
238,911
COST OF SALES
198,268
165,915
GROSS PROFIT
84,110
72,996
SELLING, GENERAL & ADMINISTRATIVE EXPENSES
57,360
52,998
RESTRUCTURING AND INTEGRATION EXPENSES
1,547
241
OTHER INCOME, NET
316
262
OPERATING INCOME
25,519
20,019
OTHER NON-OPERATING INCOME, NET
823
333
INTEREST EXPENSE
468
311
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
25,874
20,041
PROVISION FOR INCOME TAXES
9,507
7,385
EARNINGS FROM CONTINUING OPERATIONS
16,367
12,656
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES
(633)
(452)
NET EARNINGS
$
15,734
$
12,204
NET EARNINGS PER COMMON SHARE:
BASIC EARNINGS FROM CONTINUING OPERATIONS
$
0.72
$
0.56
DISCONTINUED OPERATION
(0.03)
(0.02)
NET EARNINGS PER COMMON SHARE - BASIC
$
0.69
$
0.54
DILUTED EARNINGS FROM CONTINUING OPERATIONS
$
0.70
$
0.55
DISCONTINUED OPERATION
(0.03)
(0.02)
NET EARNINGS PER COMMON SHARE - DILUTED
$
0.67
$
0.53
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
22,846,595
22,642,312
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES
23,313,773
22,944,947
STANDARD MOTOR PRODUCTS, INC.
Segment Revenues and Operating Income
(In thousands)
THREE MONTHS ENDED
MARCH 31,
2017
2016
(Unaudited)
Revenues
Engine Management
$
211,314
$
180,681
Temperature Control
70,290
56,766
All Other
774
1,464
$
282,378
$
238,911
Gross Margin
Engine Management
$
64,124
30.3%
$
57,276
31.7%
Temperature Control
17,707
25.2%
14,090
24.8%
All Other
2,279
1,630
$
84,110 29.8%
$
72,996 30.6%
Selling, General & Administrative
Engine Management
$
36,028 17.0%
$
33,057
18.3%
Temperature Control
13,006
18.5%
11,694
20.6%
All Other
8,326
8,247
$
57,360 20.3%
$
52,998 22.2%
Operating Income
Engine Management
$
28,096
13.3%
$
24,219
13.4%
Temperature Control
4,701
6.7%
2,396
4.2%
All Other
(6,047)
(6,617)
26,750
9.5%
19,998
8.4%
Restructuring & Integration
(1,547)
-0.5%
(241)
-0.1%
Other Income, Net
316
0.1%
262
0.1%
$
25,519 9.0%
$
20,019 8.4%
STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures
(In thousands, except per share amounts)
THREE MONTHS ENDED
MARCH 31,
2017
2016
(Unaudited)
EARNINGS FROM CONTINUING OPERATIONS
GAAP EARNINGS FROM CONTINUING OPERATIONS
$
16,367
$
12,656
RESTRUCTURING AND INTEGRATION EXPENSES
1,547
241
GAIN FROM SALE OF BUILDINGS
(262)
(262)
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS
(514)
9
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS
$
17,138
$
12,644
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
$
0.70
$
0.55
RESTRUCTURING AND INTEGRATION EXPENSES
0.07
0.01
GAIN FROM SALE OF BUILDINGS
(0.01)
(0.01)
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS
(0.02)
-
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
$
0.74
$
0.55
OPERATING INCOME
GAAP OPERATING INCOME
$
25,519
$
20,019
RESTRUCTURING AND INTEGRATION EXPENSES
1,547
241
OTHER INCOME, NET
(316)
(262)
NON-GAAP OPERATING INCOME
$
26,750
$
19,998
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,
2017
2016
(Unaudited)
ASSETS
CASH
$
15,581
$
19,796
ACCOUNTS RECEIVABLE, GROSS
185,257
139,055
ALLOWANCE FOR DOUBTFUL ACCOUNTS
5,101
4,425
ACCOUNTS RECEIVABLE, NET
180,156
134,630
INVENTORIES
331,818
312,477
OTHER CURRENT ASSETS
6,901
7,318
TOTAL CURRENT ASSETS
534,456
474,221
PROPERTY, PLANT AND EQUIPMENT, NET
79,129
78,499
GOODWILL
67,310
67,231
OTHER INTANGIBLES, NET
62,007
64,056
DEFERRED INCOME TAXES
50,965
51,127
OTHER ASSETS
35,518
33,563
TOTAL ASSETS
$
829,385
$
768,697
LIABILITIES AND STOCKHOLDERS’ EQUITY
NOTES PAYABLE
$
82,045
$
54,812
CURRENT PORTION OF LONG TERM DEBT
44
43
ACCOUNTS PAYABLE
101,989
83,878
ACCRUED CUSTOMER RETURNS
47,692
40,176
OTHER CURRENT LIABILITIES
96,114
104,932
TOTAL CURRENT LIABILITIES
327,884
283,841
LONG-TERM DEBT
111
120
ACCRUED ASBESTOS LIABILITIES
30,353
31,328
OTHER LIABILITIES
13,464
12,380
TOTAL LIABILITIES
371,812
327,669
TOTAL STOCKHOLDERS’ EQUITY
457,573
441,028
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
829,385
$
768,697
STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
THREE MONTHS ENDED
MARCH 31,
2017
2016
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
NET EARNINGS
$
15,734
$
12,204
ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES:
DEPRECIATION AND AMORTIZATION
5,631
4,373
OTHER
3,870
3,323
CHANGE IN ASSETS AND LIABILITIES:
ACCOUNTS RECEIVABLE
(45,325)
(19,281)
INVENTORY
(19,344)
(14,621)
ACCOUNTS PAYABLE
13,664
11,431
OTHER
(1,114)
1,236
NET CASH USED IN OPERATING ACTIVITIES
(26,884)
(1,335)
CASH FLOWS FROM INVESTING ACTIVITIES
CAPITAL EXPENDITURES
(3,234)
(4,099)
OTHER INVESTING ACTIVITIES
2
2
NET CASH USED IN INVESTING ACTIVITIES
(3,232)
(4,097)
CASH FLOWS FROM FINANCING ACTIVITIES
NET CHANGE IN DEBT
27,224
2,148
PURCHASE OF TREASURY STOCK
(1,267)
(377)
DIVIDENDS PAID
(4,338)
(3,849)
OTHER FINANCING ACTIVITIES
3,650
1,839
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 25,269
(239)
EFFECT OF EXCHANGE RATE CHANGES ON CASH
632
231
NET DECREASE IN CASH AND CASH EQUIVALENTS
(4,215)
(5,440)
CASH AND CASH EQUIVALENTS at beginning of period
19,796
18,800
CASH AND CASH EQUIVALENTS at end of period
$
15,581
$
13,360

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/standard-motor-products-inc-announces-first-quarter-2017-results-and-a-quarterly-dividend-300449967.html

SOURCE Standard Motor Products, Inc.

https://rt.prnewswire.com/rt.gif?NewsItemId=NY78756&Transmission_Id=201705030830PR_NEWS_USPR_____NY78756&DateId=20170503