SMP
$42.13
Standard Motor Products
$.40
.96%
Earnings Details
1st Quarter March 2021
Wednesday, May 5, 2021 8:30:00 AM
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Summary

Standard Motor Products (SMP) Recent Earnings

Standard Motor Products (SMP) reported 1st Quarter March 2021 earnings of $0.97 per share on revenue of $276.6 million. The consensus earnings estimate was $0.50 per share on revenue of $257.6 million. Revenue grew 8.7% 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
$0.97
Earnings Whisper
-
Consensus Estimate
$0.50
Reported Revenue
$276.6 Mil
Revenue Estimate
$257.6 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Standard Motor Products, Inc. Announces First Quarter 2021 Results and a Quarterly Dividend

NEW YORK, May 5, 2021 /PRNewswire/ -- Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, reported today its consolidated financial results for the three months ended March 31, 2021.

Consolidated net sales for the first quarter of 2021 were $276.6 million, compared to consolidated net sales of $254.3 million during the comparable quarter in 2020. Earnings from continuing operations for the first quarter of 2021 were $22.2 million or 97 cents per diluted share, compared to $9.6 million or 42 cents per diluted share in the first quarter of 2020. 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 2021 were $22.2 million or 97 cents per diluted share, compared to $9.8 million or 43 cents per diluted share in the first quarter of 2020.

Mr. Eric Sills, Standard Motor Products' Chief Executive Officer and President stated, "We are very pleased with our first quarter results, as the momentum from the second half of 2020 carried over into 2021. Net sales were 8.7% above the first quarter of 2020, with both divisions showing gains. It is important to note that comparisons to last year will become less relevant due to COVID-19 impacts last year, though the first quarter of 2020 was only modestly affected.

"Engine Management net sales were up 5.4% as compared to 2020. Although we had a substantial reduction in sales in the quarter from the loss of a major account (previously announced), we were very pleased to see strong demand from our other customers offsetting the loss. Looking at our customer POS, their sell-through was even more encouraging, where many accounts enjoyed gains well into the double digit range. We believe that the actions we have taken to support our customers in the field are having success. Furthermore, we have secured new business wins, which will phase in over the course of the next several months.

"Temperature Control sales were ahead 21.4%. However, the first quarter essentially reflects pre-season orders, which, as previously discussed, were very light last year. Our pre-season orders continue to be strong in the second quarter as our customers replenish their shelves from a hot 2020 summer, though the full year results will be heavily dependent on how hot this summer will be.

"Gross margin was substantially above the first quarter of 2020, as factory production has remained at high levels throughout the company in our effort to rebuild our inventory. While we expect the ongoing benefit of robust production levels, we do see some offsetting headwinds as we face various inflationary costs in labor, certain raw materials, and transportation.

"Operating expenses were reduced slightly in the quarter. We continue to benefit from discretionary cost reductions instituted during the pandemic, though these were partially offset by increased distribution expense due to higher sales and elevated freight costs.

"The result was an all-time record in first quarter earnings, with non-GAAP diluted EPS from continuing operations more than doubling, from 43 cents in 2020 to 97 cents in 2021.

"We are also very pleased with our progress towards expanding our business in OE commercial vehicle / off-road markets.  We have been developing this business for several years, and have recently fortified it with two excellent acquisitions, both from Stoneridge, Inc. In 2019 we acquired their Pollak business, and in March of this year we acquired their particulate matter sensor business (more commonly known as soot sensors). We believe that this OE commercial vehicle focus will provide an excellent growth path for us, and the products we are developing for this segment will strengthen our offering in our core aftermarket business.

"Overall, we are pleased with our momentum as we exit the first quarter. We continue to see strong incoming orders from our customers, which reflect the healthy POS increases they are experiencing. The economy continues to improve, and more people are returning to work. This leads to more cars on the road and increased miles driven, one of the key determinants for our industry. We look forward to the balance of the year.

"Lastly, the Board of Directors has approved payment of a quarterly dividend of 25 cents per share on the common stock outstanding. The dividend will be paid on June 1, 2021 to stockholders of record on May 17, 2021."

Conference Call

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Wednesday, May 5, 2021.  The dial-in number is 800-896-8445 (domestic) or 785-830-1916 (international). The playback number is 800-839-5630 (domestic) or 402-220-2557 (international). The participant passcode is 62175.

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,




2021



2020




(Unaudited)


NET SALES


$       276,553



$       254,302









COST OF SALES


192,769



183,907









GROSS PROFIT


83,784



70,395









SELLING, GENERAL & ADMINISTRATIVE EXPENSES


54,460



55,873


RESTRUCTURING AND INTEGRATION EXPENSES


-



205


OTHER INCOME, NET


-



6









OPERATING INCOME 


29,324



14,323









OTHER NON-OPERATING INCOME (EXPENSE), NET


635



(524)









INTEREST EXPENSE


209



873









EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES


29,750



12,926









PROVISION FOR INCOME TAXES


7,586



3,305









EARNINGS FROM CONTINUING OPERATIONS


22,164



9,621









LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES


(1,164)



(994)









NET EARNINGS 


$         21,000



$           8,627












































NET EARNINGS PER COMMON SHARE:














   BASIC EARNINGS FROM CONTINUING OPERATIONS


$            0.99



$            0.43


   DISCONTINUED OPERATION


(0.05)



(0.05)


   NET EARNINGS PER COMMON SHARE - BASIC


$            0.94



$            0.38
















   DILUTED EARNINGS FROM CONTINUING OPERATIONS


$            0.97



$            0.42


   DISCONTINUED OPERATION


(0.05)



(0.04)


   NET EARNINGS PER COMMON SHARE - DILUTED


$            0.92



$            0.38
















WEIGHTED AVERAGE NUMBER OF COMMON SHARES


22,317,959



22,438,087


WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES


22,765,508



22,868,975


 

 

STANDARD MOTOR PRODUCTS, INC.

Segment Revenues and Operating Income















(In thousands)























THREE MONTHS ENDED




MARCH 31,




2021



2020




(Unaudited)


Revenues







Ignition, Emission Control, Fuel & Safety







   Related System Products


$       173,666



$       164,526


Wire and Cable


38,352



36,592


        Engine Management


212,018



201,118









Compressors


33,374



25,348


Other Climate Control Parts


29,099



26,094


        Temperature Control


62,473



51,442









All Other


2,062



1,742


        Revenues


$         276,553



$         254,302









Gross Margin







Engine Management


$         65,070

30.7%


$         56,705

28.2%

Temperature Control


15,995

25.6%


12,096

23.5%

All Other


2,719



1,594


        Gross Margin


$           83,784

30.3%


$           70,395

27.7%








Selling, General & Administrative







Engine Management


$         33,956

16.0%


$           35,073

17.4%

Temperature Control


12,403

19.9%


12,444

24.2%

All Other


8,101



8,356


        Selling, General & Administrative


$           54,460

19.7%


$           55,873

22.0%















Operating Income







Engine Management


$           31,114

14.7%


$           21,632

10.8%

Temperature Control


3,592

5.7%


(348)

-0.7%

All Other


(5,382)



(6,762)


        Subtotal


29,324

10.6%


14,522

5.7%

Restructuring & Integration


-

0.0%


(205)

-0.1%

Other Income, Net


-

0.0%


6

0.0%

        Operating Income


$           29,324

10.6%


$           14,323

5.6%

 

 

STANDARD MOTOR PRODUCTS, INC.

Reconciliation of GAAP and Non-GAAP Measures





















(In thousands, except per share amounts)







THREE MONTHS ENDED



MARCH 31,



2021


2020


(Unaudited)

EARNINGS FROM CONTINUING OPERATIONS










GAAP EARNINGS FROM CONTINUING OPERATIONS


$                   22,164


$                     9,621






RESTRUCTURING AND INTEGRATION EXPENSES


-


205

INCOME TAX EFFECT RELATED TO RECONCILING ITEMS


-


(53)






NON-GAAP EARNINGS FROM CONTINUING OPERATIONS


$                   22,164


$                     9,773











DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS










GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS


$                       0.97


$                       0.42






RESTRUCTURING AND INTEGRATION EXPENSES


-


0.01

INCOME TAX EFFECT RELATED TO RECONCILING ITEMS


-


-






NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS


$                       0.97


$                       0.43











OPERATING INCOME










GAAP OPERATING INCOME


$                   29,324


$                   14,323






RESTRUCTURING AND INTEGRATION EXPENSES


-


205

OTHER INCOME, NET


-


(6)






NON-GAAP OPERATING INCOME


$                   29,324


$                   14,522
















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,



2021




2020



(Unaudited)












ASSETS








CASH


$         17,100




$         19,488








ACCOUNTS RECEIVABLE, GROSS


179,848




203,861

ALLOWANCE FOR DOUBTFUL ACCOUNTS


5,744




5,822

ACCOUNTS RECEIVABLE, NET


174,104




198,039








INVENTORIES


390,896




345,502

UNRETURNED CUSTOMER INVENTORY


21,088




19,632

OTHER CURRENT ASSETS


13,848




15,875








TOTAL CURRENT ASSETS


617,036




598,536








PROPERTY, PLANT AND EQUIPMENT, NET


88,563




89,105

OPERATING LEASE RIGHT-OF-USE ASSETS


31,453




29,958

GOODWILL


77,838




77,837

OTHER INTANGIBLES, NET


52,803




54,004

DEFERRED INCOME TAXES


43,692




44,770

INVESTMENT IN UNCONSOLIDATED AFFILIATES


40,684




40,507

OTHER ASSETS


24,413




21,823








TOTAL ASSETS


$       976,482




$       956,540















LIABILITIES AND STOCKHOLDERS' EQUITY















NOTES PAYABLE


$         40,967




$         10,000

CURRENT PORTION OF OTHER DEBT


1,523




135

ACCOUNTS PAYABLE


108,536




100,018

ACCRUED CUSTOMER RETURNS


44,729




40,982

ACCRUED CORE LIABILITY


22,569




22,014

ACCRUED REBATES


39,294




46,437

PAYROLL AND COMMISSIONS


19,094




35,938

SUNDRY PAYABLES AND ACCRUED EXPENSES


36,712




47,078








TOTAL CURRENT LIABILITIES


313,424




302,602








OTHER LONG-TERM DEBT


84




97

NONCURRENT OPERATING LEASE LIABILITY


23,890




22,450

ACCRUED ASBESTOS LIABILITIES


54,630




55,226

OTHER LIABILITIES


27,514




25,929








 TOTAL LIABILITIES 


419,542




406,304








 TOTAL STOCKHOLDERS' EQUITY 


556,940




550,236








 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 


$       976,482




$       956,540

 

 

STANDARD MOTOR PRODUCTS, INC.

Condensed Consolidated Statements of Cash Flows
















(In thousands)
















THREE MONTHS ENDED


MARCH 31,


2021



2020


(Unaudited)






CASH FLOWS FROM OPERATING ACTIVITIES










NET EARNINGS 

$        21,000



$          8,627

ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH





USED IN OPERATING ACTIVITIES:





DEPRECIATION AND AMORTIZATION

6,514



6,539

OTHER

4,475



6,034

CHANGE IN ASSETS AND LIABILITIES:





ACCOUNTS RECEIVABLE

23,533



(28,114)

INVENTORY 

(46,255)



(5,339)

ACCOUNTS PAYABLE

8,419



(11,883)

PREPAID EXPENSES AND OTHER CURRENT ASSETS

3,753



1,303

SUNDRY PAYABLES AND ACCRUED EXPENSES 

(29,549)



(7,251)

OTHER

(3,288)



(2,705)

NET CASH USED IN OPERATING ACTIVITIES

(11,398)



(32,789)











CASH FLOWS FROM INVESTING ACTIVITIES










ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES

(2,081)



-

CAPITAL EXPENDITURES

(4,966)



(4,422)

OTHER INVESTING ACTIVITIES

2



6

NET CASH USED IN INVESTING ACTIVITIES 

(7,045)



(4,416)











CASH FLOWS FROM FINANCING ACTIVITIES










NET CHANGE IN DEBT

32,408



53,068

PURCHASE OF TREASURY STOCK

(11,096)



(8,726)

DIVIDENDS PAID

(5,588)



(5,615)

OTHER FINANCING ACTIVITIES

373



1,248

NET CASH PROVIDED BY FINANCING ACTIVITIES

16,097



39,975











EFFECT OF EXCHANGE RATE CHANGES ON CASH

(42)



126

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(2,388)



2,896

CASH AND CASH EQUIVALENTS at beginning of period

19,488



10,372

CASH AND CASH EQUIVALENTS at end of period

$        17,100



$        13,268

 

 

 

Cision View original content:http://www.prnewswire.com/news-releases/standard-motor-products-inc-announces-first-quarter-2021-results-and-a-quarterly-dividend-301283359.html

SOURCE Standard Motor Products, Inc.