EX-99.1 2 ef20033289_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1

For Immediate Release
  

For more information, contact:

Anthony (Tony) Cristello

Standard Motor Products, Inc.

(972) 316-8107

tony.cristello@smpcorp.com

Standard Motor Products, Inc. Announces

Second Quarter 2024 Results and Quarterly Dividend

New York, NY, August 1, 2024......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 (€360 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 Control
    
Temperature
Control
    
Engineered
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 Control

Temperature
Control

Engineered
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 Control
    
Temperature
Control

Engineered
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 Control
    
Temperature Control
    
Engineered 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