QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934.
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Accelerated Filer ☐
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Non-Accelerated Filer ☐
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Smaller reporting company
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Emerging growth company
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Page No.
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Item 1.
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3 |
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3
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4
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5
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6
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7
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9
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||
Item 2. |
28
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Item 3.
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42
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Item 4.
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43
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ITEM 1. |
CONSOLIDATED FINANCIAL STATEMENTS
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
(In thousands, except share and per share data)
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Net sales
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Cost of sales
|
|
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|
||||||||||||
Gross profit
|
|
|
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|
||||||||||||
Selling, general and administrative expenses
|
|
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|
||||||||||||
Restructuring and integration expenses
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|
||||||||||||
Other income, net
|
||||||||||||||||
Operating income
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|
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|
||||||||||||
Other non-operating income, net
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||||||||||||
Interest expense
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|
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|
||||||||||||
Earnings from continuing operations before taxes
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|
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|
||||||||||||
Provision for income taxes
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|
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|
||||||||||||
Earnings from continuing operations
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|
||||||||||||
Loss from discontinued operations, net of income taxes
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Net earnings
|
|
|
|
|
||||||||||||
Net earnings attributable to noncontrolling interest
|
|
|
|
|
||||||||||||
Net earnings attributable to SMP (a)
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Net earnings attributable to SMP
|
||||||||||||||||
Earnings from continuing operations
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Discontinued operations
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Per share data attributable to SMP
|
||||||||||||||||
Net earnings per common share – Basic:
|
||||||||||||||||
Earnings from continuing operations
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Discontinued operations
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Net earnings per common share – Basic
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Net earnings per common share – Diluted:
|
||||||||||||||||
Earnings from continuing operations
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Discontinued operations
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Net earnings per common share – Diluted
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Dividend declared per share
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Average number of common shares
|
|
|
|
|
||||||||||||
Average number of common shares and dilutive common shares
|
|
|
|
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
(In thousands)
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
||||||||||||||||
Net earnings
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||
Foreign currency translation adjustments
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Derivative instruments
|
||||||||||||||||
Pension and postretirement plans
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Total other comprehensive income, net of tax
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Total Comprehensive income
|
|
|
|
|
||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest, net of tax:
|
||||||||||||||||
Net earnings
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Comprehensive income (loss) attributable to noncontrolling interest, net of tax
|
(
|
)
|
|
(
|
)
|
|
||||||||||
Comprehensive income attributable to SMP
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands, except share and per share data)
|
June 30,
2023
|
December 31,
2022
|
||||||
|
(Unaudited)
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Accounts receivable, less allowances for discounts and expected credit losses of $
|
|
|
||||||
Inventories
|
|
|
||||||
Unreturned customer inventories
|
|
|
||||||
Prepaid expenses and other current assets
|
|
|
||||||
Total current assets
|
|
|
||||||
|
||||||||
Property, plant and equipment, net of accumulated depreciation of $
|
|
|
||||||
Operating lease right-of-use assets
|
|
|
||||||
Goodwill
|
|
|
||||||
Other intangibles, net
|
|
|
||||||
Deferred income taxes
|
|
|
||||||
Investments in unconsolidated affiliates
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
|
||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Current portion of revolving credit facility
|
$
|
|
$
|
|
||||
Current portion of term loan and other debt
|
|
|
||||||
Accounts payable
|
|
|
||||||
Sundry payables and accrued expenses
|
|
|
||||||
Accrued customer returns
|
|
|
||||||
Accrued core liability
|
|
|
||||||
Accrued rebates
|
|
|
||||||
Payroll and commissions
|
|
|
||||||
Total current liabilities
|
|
|
||||||
Long-term debt
|
|
|
||||||
Noncurrent operating lease liabilities
|
|
|
||||||
Other accrued liabilities
|
|
|
||||||
Accrued asbestos liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
Commitments and contingencies
|
||||||||
Stockholders’ equity:
|
||||||||
Common stock – par value $
|
||||||||
Authorized –
|
|
|
||||||
Capital in excess of par value
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive income
|
(
|
)
|
(
|
)
|
||||
Treasury stock – at cost (
|
(
|
)
|
(
|
)
|
||||
Total SMP stockholders’ equity
|
|
|
||||||
Noncontrolling interest
|
|
|
||||||
Total stockholders’ equity
|
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
(In thousands)
|
Six Months Ended
June 30,
|
|||||||
|
2023
|
2022
|
||||||
|
(Unaudited)
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net earnings
|
$
|
|
$
|
|
||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
|
||||||||
Depreciation and amortization
|
|
|
||||||
Amortization of deferred financing cost
|
|
|
||||||
Increase (decrease) to allowance for expected credit losses
|
|
(
|
)
|
|||||
Increase to inventory reserves
|
|
|
||||||
Equity income from joint ventures
|
(
|
)
|
(
|
)
|
||||
Employee stock ownership plan allocation
|
|
|
||||||
Stock-based compensation
|
|
|
||||||
(Increase) decrease in deferred income taxes
|
(
|
)
|
|
|||||
Loss on discontinued operations, net of tax
|
|
|
||||||
Change in assets and liabilities:
|
||||||||
Increase in accounts receivable
|
(
|
)
|
(
|
)
|
||||
(Increase) decrease in inventories
|
|
(
|
)
|
|||||
Increase in prepaid expenses and other current assets
|
(
|
)
|
(
|
)
|
||||
Increase in accounts payable
|
|
|
||||||
Increase (decrease) in sundry payables and accrued expenses
|
|
(
|
)
|
|||||
Net change in other assets and liabilities
|
(
|
)
|
(
|
)
|
||||
Net cash provided by (used in) operating activities
|
|
(
|
)
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Capital expenditures
|
(
|
)
|
(
|
)
|
||||
Other investing activities
|
|
|
||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Borrowings under the term loan
|
||||||||
Repayments of term loan
|
( |
) | ||||||
Net borrowings (repayments) under revolving credit facilities
|
(
|
)
|
|
|||||
Net borrowings (repayments) of other debt and lease obligations
|
(
|
)
|
|
|||||
Purchase of treasury stock
|
|
(
|
)
|
|||||
Payments of debt issuance costs
|
( |
) | ||||||
Increase in overdraft balances
|
|
|
||||||
Dividends paid
|
(
|
)
|
(
|
)
|
||||
Dividends paid to noncontrolling interest
|
( |
) | ||||||
Net cash provided by (used in) financing activities
|
(
|
)
|
|
|||||
Effect of exchange rate changes on cash
|
|
(
|
)
|
|||||
Net increase (decrease) in cash and cash equivalents
|
|
(
|
)
|
|||||
CASH AND CASH EQUIVALENTS at beginning of period
|
|
|
||||||
CASH AND CASH EQUIVALENTS at end of period
|
$
|
|
$
|
|
||||
Supplemental disclosure of cash flow information:
Cash paid during the period for:
|
||||||||
Interest
|
$
|
|
$
|
|
||||
Income taxes
|
$
|
|
$
|
|
(In thousands)
|
Common
Stock
|
Capital in
Excess of
Par Value
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Treasury
Stock
|
Total
SMP
|
Non-
Controlling
Interest
|
Total
|
||||||||||||||||||||||||
Balance at March 31, 2023
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Net earnings
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||||||||
Cash dividends paid
|
|
|
(
|
)
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||
Dividends paid to noncontrolling interest
|
|
|
|
|
|
(
|
)
|
( |
) | |||||||||||||||||||||||
Stock-based compensation
|
|
(
|
)
|
|
|
|
|
|
|
|||||||||||||||||||||||
Balance at June 30, 2023
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Common
Stock
|
Capital in
Excess of
Par Value
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Treasury
Stock
|
Total
SMP
|
Non-
Controlling
Interest
|
Total
|
||||||||||||||||||||||||
Balance at March 31, 2022
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Net earnings
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Other comprehensive income, net of tax
|
|
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||||||
Cash dividends paid
|
|
|
(
|
)
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||
Purchase of treasury stock
|
|
|
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance at June 30, 2022
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Common
Stock
|
Capital in
Excess of
Par Value
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Treasury
Stock
|
Total
SMP
|
Non-
Controlling
Interest
|
Total
|
||||||||||||||||||||||||
Balance at December 31, 2022
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Net earnings
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||||||||
Cash dividends paid
|
|
|
(
|
)
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||
Dividends paid to noncontrolling interest
|
( |
) | ( |
) | ||||||||||||||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Employee Stock Ownership Plan
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance at June 30, 2023
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Common
Stock
|
Capital in
Excess of
Par Value
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Treasury
Stock
|
Total
SMP
|
Non-
Controlling
Interest
|
Total
|
||||||||||||||||||||||||
Balance at December 31, 2021
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Net earnings
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Other comprehensive income, net of tax
|
|
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||||||
Cash dividends paid
|
|
|
(
|
)
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||
Purchase of treasury stock
|
|
|
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Employee Stock Ownership Plan
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance at June 30, 2022
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
Purchase price
|
$
|
|
||||||
Assets acquired and liabilities assumed:
|
||||||||
Receivables
|
$
|
|
||||||
Inventory
|
|
|||||||
Other current assets (1)
|
|
|||||||
Property, plant and equipment, net
|
|
|||||||
Operating lease right-of-use assets
|
|
|||||||
Intangible assets
|
|
|||||||
Goodwill
|
|
|||||||
Current liabilities
|
(
|
)
|
||||||
Noncurrent operating lease liabilities
|
(
|
)
|
||||||
Deferred income taxes
|
(
|
)
|
||||||
Net assets acquired
|
$
|
|
(1) |
|
|
Workforce
Reduction
|
Other Exit
Costs
|
Total
|
|||||||||
Exit activity liability at December 31, 2022
|
$
|
|
$
|
|
$
|
|
||||||
Restructuring and integration costs: |
||||||||||||
Amounts provided for during 2023 (1)
|
||||||||||||
Cash payments
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Foreign currency exchange rate changes
|
||||||||||||
Exit activity liability at June 30, 2023
|
$
|
|
$
|
|
$
|
|
(1)
|
|
|
June 30,
2023
|
December 31,
2022
|
||||||
|
(In thousands)
|
|||||||
Finished goods
|
$
|
|
$
|
|
||||
Work in process
|
|
|
||||||
Raw materials
|
|
|
||||||
Subtotal
|
|
|
||||||
Unreturned customer inventories
|
|
|
||||||
Total inventories
|
$
|
|
$
|
|
|
June 30,
2023
|
December 31,
2022
|
||||||
|
(In thousands)
|
|||||||
Customer relationships
|
$
|
|
$
|
|
||||
Patents, developed technology and intellectual property
|
|
|
||||||
Trademarks and trade names
|
|
|
||||||
Non-compete agreements
|
|
|
||||||
Supply agreements
|
|
|
||||||
Leaseholds
|
|
|
||||||
Total acquired intangible assets
|
|
|
||||||
Less accumulated amortization (1)
|
(
|
)
|
(
|
)
|
||||
Net acquired intangible assets
|
$
|
|
$
|
|
(1) |
|
Balance Sheet Information
|
June 30,
2023
|
December 31,
2022
|
||||||
Assets
|
||||||||
Operating lease right-of-use assets
|
$
|
|
$
|
|
||||
|
||||||||
Liabilities
|
||||||||
Sundry payables and accrued expenses
|
$
|
|
$
|
|
||||
Noncurrent operating lease liabilities
|
|
|
||||||
Total operating lease liabilities
|
$
|
|
$
|
|
||||
|
||||||||
Weighted Average Remaining Lease Term
|
||||||||
Operating leases
|
|
|
||||||
|
||||||||
Weighted Average Discount Rate
|
||||||||
Operating leases
|
|
%
|
|
%
|
Expense and Cash Flow Information |
Three Months Ended
June 30,
|
|||||||
|
2023
|
2022
|
||||||
Lease Expense
|
||||||||
Operating lease expense (a)
|
$
|
|
$
|
|
Six Months Ended
June 30,
|
||||||||
2023
|
2022
|
|||||||
Lease Expense
|
||||||||
Operating lease expense (a)
|
$
|
|
$
|
|
||||
Supplemental Cash Flow Information
|
||||||||
Cash paid for the amounts included in the measurement of lease liabilities:
|
||||||||
Operating cash flows from operating leases
|
$
|
|
$
|
|
||||
Right-of-use assets obtained in exchange for new lease obligations:
|
||||||||
Operating leases (b)
|
$
|
|
$
|
|
(a) |
|
|
(b)
|
|
2023
|
$
|
|
||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
Thereafter
|
|
|||
Total lease payments
|
$
|
|
||
Less: Interest
|
(
|
)
|
||
Present value of lease liabilities
|
$
|
|
|
June 30,
2023
|
December 31,
2022
|
||||||
|
(In thousands)
|
|||||||
Credit facility – term loan due 2027 |
$ |
$ |
||||||
Credit facility – revolver due 2027 |
||||||||
Other
|
|
|
||||||
Total debt
|
$
|
|
$
|
|
||||
|
||||||||
Current maturities of debt
|
$
|
|
$
|
|
||||
Long-term debt
|
|
|
||||||
Total debt
|
$
|
|
$
|
|
Revolving
Credit Facility
|
Term Loan
Facility
|
Polish
Overdraft
Facility and
Other Debt
|
Total
|
|||||||||||||
Remainder of 2023
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
2024
|
|
|
|
|
||||||||||||
2025
|
|
|
|
|
||||||||||||
2026
|
|
|
|
|
||||||||||||
2027
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Less: current maturities
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Long-term debt
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended June 30,
2023
|
|||||||||||||||||
Foreign
Currency
Translation
|
Unrecognized
Postretirement
Benefit Costs
(Credit)
|
Unrealized
derivative
gains
(losses)
|
Total
|
||||||||||||||
Balance at March 31, 2023
attributable to SMP
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||||
Other comprehensive income before reclassifications
|
|
|
|
(1) |
|
||||||||||||
Amounts reclassified from accumulated other comprehensive income
|
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||
Other comprehensive income, net
|
|
(
|
)
|
|
|
||||||||||||
Balance at June 30,
2023 attributable to SMP
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
Six Months Ended June 30, 2023 | |||||||||||||||||
Foreign
Currency
Translation
|
Unrecognized
Postretirement
Benefit Costs
(Credit)
|
Unrealized
derivative
gains
(losses)
|
Total | ||||||||||||||
Balance at December 31, 2022
attributable to SMP
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||||
Other comprehensive income before reclassifications
|
|
|
|
(1) |
|
||||||||||||
Amounts reclassified from accumulated other comprehensive income
|
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||
Other comprehensive income, net
|
|
(
|
)
|
|
|
||||||||||||
Balance at June 30,
2023 attributable to SMP
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
(1)
|
Consists of the unrecognized gain relating to the
change in fair value of the cash flow interest rate hedge of $
|
|
Three Months
Ended
|
Six Months
Ended
|
||||||
Details About Accumulated Other Comprehensive Income Components
|
June 30, 2023
|
June 30, 2023
|
||||||
Derivative cash flow hedge:
|
||||||||
Unrecognized gain (loss) (1)
|
$
|
(
|
)
|
$ | ( |
) | ||
Postretirement Benefit Plans:
|
||||||||
Unrecognized gain (loss) (2)
|
(
|
)
|
( |
) | ||||
Total before income tax
|
(
|
)
|
( |
) | ||||
Income tax expense
|
(
|
)
|
( |
) | ||||
Total reclassifications attributable to SMP
|
$
|
(
|
)
|
$ | ( |
) |
(1)
|
|
(2)
|
|
Shares
|
Weighted Average
Grant Date Fair
Value Per Share
|
|||||||
Balance at December 31, 2022
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Forfeited
|
(
|
)
|
|
|||||
Balance at June 30, 2023
|
|
$
|
|
June 30, 2023
|
December 31, 2022
|
||||||||||||||||
Fair Value
Hierarchy
|
Fair Value | Carrying Amount | Fair Value | Carrying Amount | |||||||||||||
Cash and cash equivalents
|
LEVEL 1
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Deferred compensation
|
LEVEL 1
|
|
|
|
|
||||||||||||
Short term borrowings
|
LEVEL 1
|
|
|
|
|
||||||||||||
Long-term debt
|
LEVEL 1
|
|
|
|
|
||||||||||||
Cash flow interest rate swap
|
LEVEL 2
|
|
|
|
|
Three Months Ended
June 30,
|
Six Months
Ended
June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Net
Earnings Attributable to SMP -
|
||||||||||||||||
Earnings from continuing operations
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Loss from discontinued operations
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Net earnings attributable to SMP
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Basic Net Earnings Per Common Share Attributable to SMP -
|
||||||||||||||||
Earnings from continuing operations per common share
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Loss from discontinued operations per common share
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Net earnings per common share attributable to SMP
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Weighted average common shares outstanding
|
|
|
|
|
||||||||||||
Diluted Net Earnings Per Common Share Attributable to SMP -
|
||||||||||||||||
Earnings from continuing operations per common share
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Loss from discontinued operations per common share
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Net earnings per common share attributable to SMP
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Weighted average common shares outstanding
|
|
|
|
|
||||||||||||
Plus incremental shares from assumed conversions:
|
||||||||||||||||
Dilutive effect of restricted stock and performance-based stock
|
|
|
|
|
||||||||||||
Weighted average common shares outstanding – Diluted
|
|
|
|
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Restricted and performance-based shares
|
|
|
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30, |
June 30,
|
|||||||||||||||
|
2023
|
2022
|
2023 | 2022 | ||||||||||||
Net Sales (a)
|
||||||||||||||||
Vehicle Control
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Temperature Control
|
||||||||||||||||
Engineered Solutions
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Consolidated
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
||||||||||||||||
Operating Income
|
||||||||||||||||
Vehicle Control
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Temperature Control
|
||||||||||||||||
Engineered Solutions
|
|
|
|
|
||||||||||||
Other
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Consolidated
|
$
|
|
$
|
|
$
|
|
$
|
|
(a) |
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Vehicle Control
|
||||||||||||||||
Engine Management (Ignition, Emissions and Fuel Delivery)
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Electrical and Safety
|
|
|
|
|
||||||||||||
Wire Sets and Other
|
|
|
|
|
||||||||||||
Total Vehicle Control
|
|
|
|
|
||||||||||||
Temperature Control
|
||||||||||||||||
AC System Components
|
|
|
|
|
||||||||||||
Other Thermal Components
|
|
|
|
|
||||||||||||
Total Temperature Control
|
|
|
|
|
||||||||||||
Engineered Solutions
|
||||||||||||||||
Commercial Vehicle
|
|
|
|
|
||||||||||||
Construction/Agriculture
|
|
|
|
|
||||||||||||
Light Vehicle
|
|
|
|
|
||||||||||||
All Other
|
|
|
|
|
||||||||||||
Total Engineered Solutions
|
|
|
|
|
||||||||||||
Other |
||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
Three months ended June 30, 2023
|
Vehicle
Control
|
Temperature
Control
|
Engineered
Solutions
|
Other
|
Total
|
|||||||||||||||
Geographic Area:
|
||||||||||||||||||||
United States
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Canada
|
|
|
|
|
|
|||||||||||||||
Europe
|
|
|
|
|
|
|||||||||||||||
Mexico
|
|
|
|
|
|
|||||||||||||||
Asia
|
|
|
|
|
|
|||||||||||||||
Other foreign
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Three months ended June 30, 2022
|
Vehicle
Control
|
Temperature
Control
|
Engineered
Solutions
|
Other
|
Total
|
|||||||||||||||
Geographic Area:
|
||||||||||||||||||||
United States
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Canada
|
|
|
|
|
|
|||||||||||||||
Europe
|
|
|
|
|
|
|||||||||||||||
Mexico
|
|
|
|
|
|
|||||||||||||||
Asia
|
|
|
|
|
|
|||||||||||||||
Other foreign
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Six months ended June 30, 2023
|
Vehicle
Control
|
Temperature
Control
|
Engineered
Solutions
|
Other
|
Total
|
|||||||||||||||
Geographic Area:
|
||||||||||||||||||||
United States
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Canada
|
|
|
|
|
|
|||||||||||||||
Europe
|
|
|
|
|
|
|||||||||||||||
Mexico
|
|
|
|
|
|
|||||||||||||||
Asia
|
|
|
|
|
|
|||||||||||||||
Other foreign
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Six months ended June 30, 2022
|
Vehicle
Control
|
Temperature
Control
|
Engineered
Solutions
|
Other
|
Total
|
|||||||||||||||
Geographic Area:
|
||||||||||||||||||||
United States
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Canada
|
|
|
|
|
|
|||||||||||||||
Europe
|
|
|
|
|
|
|||||||||||||||
Mexico
|
|
|
|
|
|
|||||||||||||||
Asia
|
|
|
|
|
|
|||||||||||||||
Other foreign
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended |
Six
Months Ended |
|||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Balance, beginning of period
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Liabilities accrued for current year sales
|
|
|
|
|
||||||||||||
Settlements of warranty claims
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Balance, end of period
|
$
|
|
$
|
|
$
|
|
$
|
|
Operating Segments as of 2022
|
Operating Segments in 2023
|
|
Engine Management:
|
Vehicle Control (Aftermarket):
|
|
Ignition, Emissions, Fuel & Safety
|
Engine Management (Ignition, Emissions & Fuel Delivery)
|
|
Wire and Cable
|
Electrical & Safety
|
|
Wire Sets & Other
|
||
Temperature Control:
|
Temperature Control (Aftermarket):
|
|
Compressors
|
AC System Components
|
|
Other Climate Control Parts
|
Other Thermal Components
|
|
Engineered Solutions (non-Aftermarket):
|
||
Commercial Vehicle
|
||
Light Vehicle
|
||
Construction & Agriculture
|
||
All Other
|
Three Months Ended
|
||||||||
June 30,
|
||||||||
(In thousands, except per share data)
|
2023
|
2022
|
||||||
Net sales
|
$
|
353,075
|
$
|
359,412
|
||||
Gross profit
|
101,269
|
96,351
|
||||||
Gross profit %
|
28.7
|
%
|
26.8
|
%
|
||||
Operating income
|
27,178
|
27,893
|
||||||
Operating income %
|
7.7
|
%
|
7.8
|
%
|
||||
Earnings from continuing operations before income taxes
|
24,697
|
27,999
|
||||||
Provision for income taxes
|
6,289
|
7,122
|
||||||
Earnings from continuing operations
|
18,408
|
20,877
|
||||||
Loss from discontinued operations, net of income taxes
|
(9,221
|
)
|
(1,666
|
)
|
||||
Net earnings
|
9,187
|
19,211
|
||||||
Net earnings (loss) attributable to noncontrolling interest
|
50
|
85
|
||||||
Net earnings attributable to SMP
|
9,137
|
19,126
|
||||||
Per share data attributable to SMP – Diluted:
|
||||||||
Earnings from continuing operations
|
$
|
0.83
|
$
|
0.93
|
||||
Discontinued operations
|
(0.42
|
)
|
(0.07
|
)
|
||||
Net earnings per common share
|
$
|
0.41
|
$
|
0.86
|
Three Months Ended
|
||||||||
June 30,
|
||||||||
2023
|
2022
|
|||||||
Vehicle Control
|
||||||||
Engine Management (Ignition, Emissions and Fuel Delivery)
|
$
|
113,589
|
$
|
111,581
|
||||
Electrical and Safety
|
52,867
|
57,054
|
||||||
Wire Sets and Other
|
17,333
|
17,136
|
||||||
Total Vehicle Control
|
183,789
|
185,771
|
||||||
Temperature Control
|
||||||||
AC System Components
|
74,449
|
81,608
|
||||||
Other Thermal Components
|
22,625
|
24,029
|
||||||
Total Temperature Control
|
97,074
|
105,637
|
||||||
Engineered Solutions
|
||||||||
Commercial Vehicle
|
26,742
|
19,503
|
||||||
Construction/Agriculture
|
8,103
|
11,222
|
||||||
Light Vehicle
|
23,548
|
23,039
|
||||||
All Other
|
13,819
|
14,240
|
||||||
Total Engineered Solutions
|
72,212
|
68,004
|
||||||
Other
|
—
|
—
|
||||||
Total
|
$
|
353,075
|
$
|
359,412
|
Three Months Ended
June 30,
|
Vehicle Control
|
Temperature Control
|
Engineered Solutions
|
Other
|
Total
|
|||||||||||||||
2023
|
||||||||||||||||||||
Net sales
|
$
|
183,789
|
$
|
97,074
|
$
|
72,212
|
$
|
—
|
$
|
353,075
|
||||||||||
Gross margins
|
60,109
|
26,512
|
14,648
|
—
|
101,269
|
|||||||||||||||
Gross margin percentage
|
32.7
|
%
|
27.3
|
%
|
20.3
|
%
|
—
|
28.7
|
%
|
|||||||||||
2022
|
||||||||||||||||||||
Net sales
|
$
|
185,771
|
$
|
105,637
|
$
|
68,004
|
$
|
—
|
$
|
359,412
|
||||||||||
Gross margins
|
53,728
|
29,315
|
13,308
|
—
|
96,351
|
|||||||||||||||
Gross margin percentage
|
28.9
|
%
|
27.8
|
%
|
19.6
|
%
|
—
|
26.8
|
%
|
Six Months Ended
|
||||||||
June 30,
|
||||||||
2023
|
2022
|
|||||||
Vehicle Control
|
||||||||
Engine Management (Ignition, Emissions and Fuel Delivery)
|
$
|
229,672
|
$
|
220,730
|
||||
Electrical and Safety
|
104,671
|
109,311
|
||||||
Wire Sets and Other
|
34,023
|
32,994
|
||||||
Total Vehicle Control
|
368,366
|
363,035
|
||||||
Temperature Control
|
||||||||
AC System Components
|
120,201
|
128,982
|
||||||
Other Thermal Components
|
49,279
|
49,713
|
||||||
Total Temperature Control
|
169,480
|
178,695
|
||||||
Engineered Solutions
|
||||||||
Commercial Vehicle
|
46,599
|
40,954
|
||||||
Construction/Agriculture
|
20,898
|
22,206
|
||||||
Light Vehicle
|
46,514
|
49,114
|
||||||
All Other
|
29,246
|
28,239
|
||||||
Total Engineered Solutions
|
143,257
|
140,513
|
||||||
Other
|
—
|
— |
||||||
Total
|
$
|
681,103
|
$
|
682,243
|
Six Months Ended
June 30,
|
Vehicle
Control
|
Temperature Control
|
Engineered Solutions
|
Other
|
Total
|
|||||||||||||||
2023
|
||||||||||||||||||||
Net sales
|
$
|
368,366
|
$
|
169,480
|
$
|
143,257
|
$
|
—
|
$
|
681,103
|
||||||||||
Gross margins
|
118,581
|
45,667
|
28,288
|
—
|
192,536
|
|||||||||||||||
Gross margin percentage
|
32.2
|
%
|
26.9
|
%
|
19.7
|
%
|
—
|
28.3
|
%
|
|||||||||||
2022
|
||||||||||||||||||||
Net sales
|
$
|
363,035
|
$
|
178,695
|
$
|
140,513
|
$
|
—
|
$
|
682,243
|
||||||||||
Gross margins
|
109,152
|
48,803
|
28,236
|
—
|
186,191
|
|||||||||||||||
Gross margin percentage
|
30.1
|
%
|
27.3
|
%
|
20.1
|
%
|
—
|
27.3
|
%
|
June 30,
|
December 31,
|
|||||||||||
(In thousands)
|
2023
|
2022
|
2022
|
|||||||||
Operating cash flows
|
$
|
39,370
|
$
|
(95,333
|
)
|
|||||||
Total debt
|
$
|
223,216
|
$
|
267,454
|
$
|
239,620
|
||||||
Cash
|
23,019
|
14,186
|
21,150
|
|||||||||
Net debt
|
$
|
200,197
|
$
|
253,268
|
$
|
218,470
|
||||||
Remaining borrowing capacity
|
$
|
269,631
|
$
|
232,933
|
$
|
255,631
|
||||||
Total liquidity
|
292,650
|
247,119
|
276,781
|
ITEM 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4. |
CONTROLS AND PROCEDURES
|
ITEM 1. |
LEGAL PROCEEDINGS
|
ITEM 6. |
EXHIBITS
|
Exhibit
Number
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certification of Chief Executive Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
Certification of Chief Financial Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101.INS**
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
|
101.SCH**
|
Inline XBRL Taxonomy Extension Schema Document.
|
101.CAL**
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.LAB**
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE**
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
101.DEF**
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
104
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
|
STANDARD MOTOR PRODUCTS, INC.
|
|
(Registrant)
|
|
Date: August 2, 2023
|
/s/ Nathan R. Iles
|
Nathan R. Iles
|
|
Chief Financial Officer
|
|
(Principal Financial and
|
|
Accounting Officer)
|