Standard Motor Products, Inc. Announces Third Quarter 2024 Results and Quarterly Dividend

Rhea-AI Summary

Standard Motor Products (SMP) reported strong Q3 2024 results with net sales of $399.3 million, up 3.3% year-over-year. Adjusted diluted EPS increased 15% to $1.28, while Adjusted EBITDA improved by 80 basis points to 12.2%. All three operating segments showed growth: Vehicle Control sales up 5.2%, Temperature Control up 1.9%, and Engineered Solutions up nearly 1%. Year-to-date sales reached $1.12 billion, up 5.0% compared to 2023. The company maintains its full-year 2024 guidance expecting low- to mid-single-digit sales growth and Adjusted EBITDA of 9.0-9.5%. The pending Nissens Automotive acquisition received final regulatory approvals and is expected to close soon.

Positive

• Net sales increased 3.3% to $399.3M in Q3 2024
• Adjusted diluted EPS grew 15% to $1.28
• Adjusted EBITDA improved by 80 basis points to 12.2%
• All three operating segments showed sales growth
• Total debt reduced by $13.4M from year-end
• Inventory levels decreased from $507.1M to $503.0M

Negative

• Nine-month earnings per diluted share decreased from $2.52 to $2.45
• Expected $48-50M in customer factoring program expenses
• Additional costs expected from new distribution center startup

News Market Reaction – SMP

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• Net Sales of $399.3M, up 3.3%, with all three operating segments showing increases
• Adjusted diluted earnings per share of $1.28, up 15%
• Adjusted EBITDA up 80 basis points to 12.2%
• Nissens Automotive acquisition expected to close in near future
• Full year guidance remains unchanged

NEW YORK, Oct. 30, 2024 /PRNewswire/ -- Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, reported today its consolidated financial results for the three and nine months ended September 30, 2024.

Net sales for the third quarter of 2024 were $399.3 million, compared to consolidated net sales of $386.4 million during the comparable quarter in 2023. Earnings from continuing operations for the third quarter of 2024 were $26.6 million or $1.20 per diluted share, compared to $24.9 million or $1.12 per diluted share in the third 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 third quarter of 2024 were $28.3 million or $1.28 per diluted share, compared to $24.7 million or $1.11 per diluted share in the third quarter of 2023.

Consolidated net sales for the nine months ended September 30, 2024, were $1.12 billion, compared to consolidated net sales of $1.07 billion during the comparable period in 2023.  Earnings from continuing operations for the nine months ended September 30, 2024, were $54.4 million or $2.45 per diluted share, compared to $55.9 million or $2.52 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 nine months ended September 30, 2024 and 2023 were $59.9 million or $2.70 per diluted share and $56.6 million or $2.55 per diluted share, respectively. 

Mr. Eric Sills, Standard Motor Products' Chairman and Chief Executive Officer stated, "We are very pleased with our third quarter results, both in our top line growth as well as our earnings performance. Overall, sales increased 3.3% versus last year's third quarter, while adjusted diluted earnings per share were up 15%. Year-to-date sales are up 5.0% compared to 2023, with adjusted diluted EPS up almost 6%. Sales for all three operating segments are ahead of last year both for the quarter and the year."   

By segment, Vehicle Control sales increased 5.2% in the quarter against an easy comparison in 2023.  Sales in the segment are up 2.8% on a year-to-date basis as customer demand remains positive, indicating general market strength as our trading partners make ongoing investments to their assortments in our products.

Strong Temperature Control demand continued as sales grew 1.9% in the quarter against last year's record results. The segment has performed well year-to-date with sales up nearly 10% over last year, as the selling season started early this year and remained strong throughout the summer.

Our Engineered Solutions segment continues to perform well, as sales increased nearly 1% in the quarter against a very difficult comparison to last year's quarterly increase of over 8%, and are up 3.8% year-to-date. Modest softening in some end markets is being more than offset by the ramp up of recent wins, and while we expect ongoing market headwinds related to certain customers' production schedules, we remain quite bullish as we see ongoing cross-selling opportunities and strengthening customer relationships. 

Looking at profitability, Adjusted EBITDA improved from the third quarter last year, up 80 basis points to 12.2%.  Margin improvement resulted from leverage gained on the solid sales performance, as well as from various cost containment actions to offset inflationary pressures, including the benefit from our previously disclosed early retirement program. We remain focused on our cost savings initiatives and continue to look at ways to drive margin improvement going forward.    

From a cash flow perspective, we were pleased with the impact of our initiatives on managing both our inventory and borrowing levels.  At quarter-end, our inventory was $503.0 million, down from $507.1 million at year-end, while our total debt at quarter-end stood at $142.8 million down $13.4 million from year-end.      

With respect to our previously announced acquisition of Nissens Automotive in Europe, we have received final regulatory approvals and would expect to close on the transaction in the very near future.  We are very excited about this major step forward for SMP, and look forward to working closely with the talented Nissens team to create an aftermarket leader in North America and Europe across our key product categories.

Regarding our sales and profit expectations for the full year of 2024, we anticipate sales growth will be in the low- to mid-single digits, and Adjusted EBITDA will be in a range of 9.0-9.5%, consistent with what we noted previously, and excludes any potential impact from the acquisition of Nissens Automotive.  This outlook considers expenses related to customer factoring programs that will be roughly $48-$50 million at current implied rates, as well as the impact of startup costs and duplicate overhead expense associated with the new distribution center in Shawnee, KS, discussed in prior quarters. 

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 December 2, 2024 to stockholders of record on November 15, 2024. 

In closing, Mr. Sills commented, "Looking ahead, while there is always a degree of uncertainty across a variety of external factors, we are excited about where we are headed. North American aftermarket fundamentals remain strong, we are hitting our stride in our Engineered Solutions business, our new distribution center is coming on line, and we are soon to have Nissens on-board with all the opportunities that it will bring. 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 Wednesday October 30, 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 3Q 2024 Earnings Webcast link.  Investors may also listen to the call by dialing 800-343-4136 (domestic) or 203-518-9843 (international).  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 800-374-0328 (domestic) or 402-220-0663 (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				NINE MONTHS ENDED
		SEPTEMBER 30,				SEPTEMBER 30,
		2024		2023		2024		2023
		(Unaudited)				(Unaudited)
NET SALES		$    399,265		$    386,413		$ 1,120,497		$ 1,067,516
COST OF SALES		277,899		271,653		798,162		760,220
GROSS PROFIT		121,366		114,760		322,335		307,296
SELLING, GENERAL & ADMINISTRATIVE EXPENSES		81,204		79,781		239,822		223,257
RESTRUCTURING AND INTEGRATION EXPENSES		3,023		177		5,774		1,383
OTHER INCOME, NET		-		4		5		74
OPERATING INCOME		37,139		34,806		76,744		82,730
OTHER NON-OPERATING INCOME, NET		2,129		1,732		5,147		2,759
INTEREST EXPENSE		3,145		3,621		7,964		10,766
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES		36,123		32,917		73,927		74,723
PROVISION FOR INCOME TAXES		9,267		7,995		18,718		18,656
EARNINGS FROM CONTINUING OPERATIONS		26,856		24,922		55,209		56,067
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES		(22,771)		(18,200)		(24,727)		(28,201)
NET EARNINGS		4,085		6,722		30,482		27,866
NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST		275		63		785		152
NET EARNINGS ATTRIBUTABLE TO SMP (a)		$         3,810		$         6,659		$      29,697		$      27,714
NET EARNINGS ATTRIBUTABLE TO SMP
EARNINGS FROM CONTINUING OPERATIONS		$      26,581		$      24,859		$      54,424		$      55,915
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES		(22,771)		(18,200)		(24,727)		(28,201)
TOTAL		$         3,810		$         6,659		$      29,697		$      27,714
NET EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SMP
BASIC EARNINGS FROM CONTINUING OPERATIONS		$           1.22		$           1.14		$           2.50		$           2.58
DISCONTINUED OPERATION		(1.04)		(0.84)		(1.14)		(1.30)
NET EARNINGS PER COMMON SHARE - BASIC		$           0.18		$           0.31		$           1.36		$           1.28
DILUTED EARNINGS  FROM CONTINUING OPERATIONS		$           1.20		$           1.12		$           2.45		$           2.52
DISCONTINUED OPERATION		(1.03)		(0.82)		(1.11)		(1.27)
NET EARNINGS  PER COMMON SHARE - DILUTED		$           0.17		$           0.30		$           1.34		$           1.25
WEIGHTED AVERAGE NUMBER OF COMMON SHARES		21,716,083		21,727,119		21,802,164		21,675,699
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES		22,154,222		22,253,723		22,225,444		22,198,131

(a) "SMP" refers to Standard Motor Products, Inc. and subsidiaries.

 

STANDARD MOTOR PRODUCTS, INC.
Segment Revenues and Operating Profit
(In thousands)
		THREE MONTHS ENDED						NINE MONTHS ENDED
		SEPTEMBER 30,						SEPTEMBER 30,
		2024			2023			2024			2023
		(Unaudited)						(Unaudited)
Revenues
Engine Management (Ignition, Emissions
and Fuel Delivery)		$       121,432			$       113,188			$       353,046			$       342,860
Electrical and Safety		63,237			62,049			172,772			166,720
Wire sets and other		16,208			15,700			49,324			49,723
Vehicle Control		200,877			190,937			575,142			559,303
											-
AC System Components		95,698			94,385			245,628			217,913
Other Thermal Components		30,287			29,258			76,446			75,210
Temperature Control		125,985			123,643			322,074			293,123
Commercial Vehicle		22,625			18,701			69,016			59,158
Construction / Agriculture		8,082			9,974			27,631			32,804
Light Vehicle		24,287			24,123			70,776			71,123
All Other		17,409			19,035			55,858			52,005
Engineered Solutions		72,403			71,833			223,281			215,090
											-
Revenues		$       399,265			$       386,413			$   1,120,497			$   1,067,516
Gross Margin
Vehicle Control		$         65,652	32.7 %		$         60,865	31.9 %		$       184,520	32.1 %		$       179,446	32.1 %
Temperature Control		42,323	33.6 %		37,785	30.6 %		98,621	30.6 %		83,452	28.5 %
Engineered Solutions		13,391	18.5 %		16,110	22.4 %		39,194	17.6 %		44,398	20.6 %
All Other		-			-			-			-
Gross Margin		$       121,366	30.4 %		$       114,760	29.7 %		$       322,335	28.8 %		$       307,296	28.8 %
Selling, General & Administrative
Vehicle Control		$         43,021	21.4 %		$         42,752	22.4 %		$       130,123	22.6 %		$       124,308	22.2 %
Temperature Control		25,876	20.5 %		24,624	19.9 %		66,641	20.7 %		61,736	21.1 %
Engineered Solutions		8,124	11.2 %		8,832	12.3 %		25,491	11.4 %		25,222	11.7 %
All Other		5,190			3,573			16,163			11,991
Subtotal		$         82,211	20.6 %		$         79,781	20.6 %		$       238,418	21.3 %		$       223,257	20.9 %
Acquisition Expenses		(1,007)	-0.3 %		-	0.0 %		1,404	0.1 %		-	0.0 %
Selling, General & Administrative		$         81,204	20.3 %		$         79,781	20.6 %		$       239,822	21.4 %		$       223,257	20.9 %
Operating Income
Vehicle Control		$         22,631	11.3 %		$         18,113	9.5 %		$         54,397	9.5 %		$         55,138	9.9 %
Temperature Control		16,447	13.1 %		13,161	10.6 %		31,980	9.9 %		21,716	7.4 %
Engineered Solutions		5,267	7.3 %		7,278	10.1 %		13,703	6.1 %		19,176	8.9 %
All Other		(5,190)			(3,573)			(16,163)			(11,991)
Subtotal		$         39,155	9.8 %		$         34,979	9.1 %		$         83,917	7.5 %		$         84,039	7.9 %
Restructuring & Integration		(3,023)	-0.8 %		(177)	0.0 %		(5,774)	-0.5 %		(1,383)	-0.1 %
Acquisition Expenses		1,007	0.3 %		-	0.0 %		(1,404)	-0.1 %		-	0.0 %
Other Income, Net		-	0.0 %		4	0.0 %		5	0.0 %		74	0.0 %
Operating Income		$         37,139	9.3 %		$         34,806	9.0 %		$         76,744	6.8 %		$         82,730	7.7 %

 

STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures
(In thousands, except per share amounts)
		THREE MONTHS ENDED				NINE MONTHS ENDED
		SEPTEMBER 30,				SEPTEMBER 30,
		2024		2023		2024		2023
		(Unaudited)				(Unaudited)
EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP
GAAP EARNINGS FROM CONTINUING OPERATIONS		$          26,581		$          24,859		$          54,424		$          55,915
RESTRUCTURING AND INTEGRATION EXPENSES		3,023		177		5,774		1,383
ACQUISITION EXPENSES		(207)		-		2,204		-
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD		(380)		(312)		(380)		(312)
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS		(732)		(46)		(2,074)		(360)
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS		$          28,285		$          24,678		$          59,948		$          56,626
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS		$             1.20		$             1.12		$             2.45		$             2.52
RESTRUCTURING AND INTEGRATION EXPENSES		0.14		-		0.26		0.06
ACQUISITION EXPENSES		(0.01)		-		0.10		-
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD		(0.02)		(0.01)		(0.02)		(0.01)
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS		(0.03)		-		(0.09)		(0.02)
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS		$             1.28		$             1.11		$             2.70		$             2.55
OPERATING INCOME
GAAP OPERATING INCOME		$          37,139		$          34,806		$          76,744		$          82,730
RESTRUCTURING AND INTEGRATION EXPENSES		3,023		177		5,774		1,383
ACQUISITION EXPENSES		(1,007)		-		1,404		-
OTHER (INCOME) EXPENSE, NET		-		(4)		(5)		(74)		LAST TWELVE MONTHS ENDED				YEAR ENDED
										SEPTEMBER 30,				DECEMBER 31,
NON-GAAP OPERATING INCOME		$          39,155		$          34,979		$          83,917		$          84,039		2024		2023		2023
										(Unaudited)
EBITDA WITHOUT SPECIAL ITEMS
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES		$          36,123		$          32,917		$          73,927		$          74,723		$          80,920		$          86,025		$           81,716
DEPRECIATION AND AMORTIZATION		7,389		7,332		22,008		21,461		29,569		28,864		29,022
INTEREST EXPENSE		3,145		3,621		7,964		10,766		10,485		15,101		13,287
EBITDA		46,657		43,870		103,899		106,950		120,974		129,990		124,025
RESTRUCTURING AND INTEGRATION EXPENSES		3,023		177		5,774		1,383		7,033		3,230		2,642
ACQUISITION EXPENSES		(1,007)		-		1,404		-		1,404		-		-
CUSTOMER BANKRUPTCY CHARGE		-		-		-		-		-		7,002		-
SPECIAL ITEMS		2,016		177		7,178		1,383		8,437		10,232		2,642
EBITDA WITHOUT SPECIAL ITEMS		$          48,673		$          44,047		$        111,077		$        108,333		$        129,411		$        140,222		$         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 SEPTEMBER 30, 2024
		Vehicle Control		Temperature Control		Engineered Solutions		All Other		Consolidated
		(Unaudited)
OPERATING INCOME
GAAP OPERATING INCOME		$          21,029		$          16,074		$           5,010		$           (4,974)		$          37,139
RESTRUCTURING AND INTEGRATION EXPENSES		1,602		373		257		791		3,023
ACQUISITION EXPENSES		-		-		-		(1,007)		(1,007)
OTHER EXPENSE, NET		-		-		-		-		-
NON-GAAP OPERATING INCOME		$          22,631		$          16,447		$           5,267		$           (5,190)		$          39,155
EBITDA WITHOUT SPECIAL ITEMS
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES		$          18,844		$          16,530		$           5,607		$           (4,858)		$          36,123
DEPRECIATION AND AMORTIZATION		3,850		802		2,308		429		7,389
INTEREST EXPENSE		2,166		791		434		(246)		3,145
EBITDA		24,860		18,123		8,349		(4,675)		46,657
RESTRUCTURING AND INTEGRATION EXPENSES		1,602		373		257		791		3,023
ACQUISITION EXPENSES		-		-		-		(1,007)		(1,007)
SPECIAL ITEMS		1,602		373		257		(216)		2,016
EBITDA WITHOUT SPECIAL ITEMS		$          26,462		$          18,496		$           8,606		$           (4,891)		$          48,673
% of Net Sales		13.2 %		14.7 %		11.9 %				12.2 %
(In thousands)		THREE MONTHS ENDED SEPTEMBER 30, 2023
		Vehicle Control		Temperature Control		Engineered Solutions		All Other		Consolidated
		(Unaudited)
OPERATING INCOME
GAAP OPERATING INCOME		$          18,071		$          13,054		$           7,254		$           (3,573)		$          34,806
RESTRUCTURING AND INTEGRATION EXPENSES		45		107		25		-		177
OTHER INCOME, NET		(3)		-		(1)		-		(4)
NON-GAAP OPERATING INCOME		$          18,113		$          13,161		$           7,278		$           (3,573)		$          34,979
EBITDA WITHOUT SPECIAL ITEMS
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES		$          15,702		$          12,780		$           8,078		$           (3,643)		$          32,917
DEPRECIATION AND AMORTIZATION		3,482		908		2,450		492		7,332
INTEREST EXPENSE		2,563		942		620		(504)		3,621
EBITDA		21,747		14,630		11,148		(3,655)		43,870
RESTRUCTURING AND INTEGRATION EXPENSES		45		107		25		-		177
SPECIAL ITEMS		45		107		25		-		177
EBITDA WITHOUT SPECIAL ITEMS		$          21,792		$          14,737		$          11,173		$           (3,655)		$          44,047
% of Net Sales		11.4 %		11.9 %		15.6 %				11.4 %

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.
Reconciliation of GAAP and Non-GAAP Measures by Segments
(In thousands)		NINE MONTHS ENDED SEPTEMBER 30, 2024
		Vehicle Control		Temperature Control		Engineered Solutions		All Other		Consolidated
		(Unaudited)
OPERATING INCOME
GAAP OPERATING INCOME		$          51,685		$          31,302		$          13,054		$         (19,297)		$          76,744
RESTRUCTURING AND INTEGRATION EXPENSES		2,712		678		654		1,730		5,774
ACQUISITION EXPENSES		-		-		-		1,404		1,404
OTHER INCOME, NET		-		-		(5)		-		(5)
NON-GAAP OPERATING INCOME		$          54,397		$          31,980		$          13,703		$         (16,163)		$          83,917
EBITDA WITHOUT SPECIAL ITEMS
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES		$          46,226		$          32,396		$          14,482		$         (19,177)		$          73,927
DEPRECIATION AND AMORTIZATION		10,981		2,480		7,240		1,307		22,008
INTEREST EXPENSE		5,492		2,048		1,804		(1,380)		7,964
EBITDA		62,699		36,924		23,526		(19,250)		103,899
RESTRUCTURING AND INTEGRATION EXPENSES		2,712		678		654		1,730		5,774
ACQUISITION EXPENSES		-		-		-		1,404		1,404
SPECIAL ITEMS		2,712		678		654		3,134		7,178
EBITDA WITHOUT SPECIAL ITEMS		$          65,411		$          37,602		$          24,180		$         (16,116)		$        111,077
% of Net Sales		11.4 %		11.7 %		10.8 %				9.9 %
(In thousands)		NINE MONTHS ENDED SEPTEMBER 30, 2023
		Vehicle Control		Temperature Control		Engineered Solutions		All Other		Consolidated
		(Unaudited)
OPERATING INCOME
GAAP OPERATING INCOME		$          54,719		$          20,938		$          19,064		$         (11,991)		$          82,730
RESTRUCTURING AND INTEGRATION EXPENSES		484		778		121		-		1,383
OTHER INCOME, NET		(65)		-		(9)		-		(74)
NON-GAAP OPERATING INCOME		$          55,138		$          21,716		$          19,176		$         (11,991)		$          84,039
EBITDA WITHOUT SPECIAL ITEMS
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES		$          47,994		$          19,144		$          19,611		$         (12,026)		$          74,723
DEPRECIATION AND AMORTIZATION		10,267		2,439		7,417		1,338		21,461
INTEREST EXPENSE		7,608		2,677		1,616		(1,135)		10,766
EBITDA		65,869		24,260		28,644		(11,823)		106,950
RESTRUCTURING AND INTEGRATION EXPENSES		484		778		121		-		1,383
SPECIAL ITEMS		484		778		121		-		1,383
EBITDA WITHOUT SPECIAL ITEMS		$          66,353		$          25,038		$          28,765		$         (11,823)		$        108,333
% of Net Sales		11.9 %		8.5 %		13.4 %				10.1 %

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)
		SEPTEMBER		DECEMBER
		2024		2023
		(Unaudited)
ASSETS
CASH AND CASH EQUIVALENTS		$         26,348		$         32,526
ACCOUNTS RECEIVABLE, GROSS		225,827		168,327
ALLOWANCE FOR EXPECTED CREDIT LOSSES		8,697		8,045
ACCOUNTS RECEIVABLE, NET		217,130		160,282
INVENTORIES		503,015		507,075
UNRETURNED CUSTOMER INVENTORY		17,843		18,240
OTHER CURRENT ASSETS		28,873		26,100
TOTAL CURRENT ASSETS		793,209		744,223
PROPERTY, PLANT AND EQUIPMENT, NET		138,490		121,872
OPERATING LEASE RIGHT-OF-USE ASSETS		96,039		100,065
GOODWILL		134,725		134,729
OTHER INTANGIBLES, NET		85,837		92,308
DEFERRED INCOME TAXES		45,315		40,533
INVESTMENT IN UNCONSOLIDATED AFFILIATES		23,914		24,050
OTHER ASSETS		33,012		35,267
TOTAL ASSETS		$    1,350,541		$    1,293,047
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT PORTION OF REVOLVING CREDIT FACILITY		$                    -		$                    -
CURRENT PORTION OF TERM LOAN AND OTHER DEBT		2,685		5,029
ACCOUNTS PAYABLE		112,404		107,455
ACCRUED CUSTOMER RETURNS		62,326		38,238
ACCRUED CORE LIABILITY		15,226		18,399
ACCRUED REBATES		53,163		42,278
PAYROLL AND COMMISSIONS		37,050		29,561
SUNDRY PAYABLES AND ACCRUED EXPENSES		69,666		63,303
TOTAL CURRENT LIABILITIES		352,520		304,263
LONG-TERM DEBT		140,163		151,182
NONCURRENT OPERATING LEASE LIABILITY		86,259		88,974
ACCRUED ASBESTOS LIABILITIES		89,544		72,013
OTHER LIABILITIES		28,611		25,742
TOTAL LIABILITIES		697,097		642,174
TOTAL SMP STOCKHOLDERS' EQUITY		638,833		635,064
NONCONTROLLING INTEREST		14,611		15,809
TOTAL STOCKHOLDERS' EQUITY		653,444		650,873
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$    1,350,541		$    1,293,047

 

STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Statements of Cash Flows
	(In thousands)
		NINE MONTHS ENDED
		SEPTEMBER 30,
		2024			2023
		(Unaudited)
	CASH FLOWS FROM OPERATING ACTIVITIES
	NET EARNINGS	$       30,482			$       27,866
	ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH
	PROVIDED BY OPERATING ACTIVITIES:
	DEPRECIATION AND AMORTIZATION	22,008			21,461
	LOSS FROM DISCONTINUED OPERATIONS, NET OF TAXES	24,727			28,201
	OTHER	4,473			4,701
	CHANGE IN ASSETS AND LIABILITIES:
	ACCOUNTS RECEIVABLE	(59,040)			(38,850)
	INVENTORY	2,895			54,286
	ACCOUNTS PAYABLE	4,487			15,852
	PREPAID EXPENSES AND OTHER CURRENT ASSETS	(2,739)			2,916
	SUNDRY PAYABLES AND ACCRUED EXPENSES	45,470			12,345
	OTHER	5,437			4,115
	NET CASH PROVIDED BY OPERATING ACTIVITIES	78,200			132,893
	CASH FLOWS FROM INVESTING ACTIVITIES
	ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES	-			(3,954)
	CASH ACQUIRED IN STEP ACQUISITION	-			6,779
	CAPITAL EXPENDITURES	(34,136)			(17,977)
	OTHER INVESTING ACTIVITIES	18			95
	NET CASH USED IN INVESTING ACTIVITIES	(34,118)			(15,057)
	CASH FLOWS FROM FINANCING ACTIVITIES
	NET CHANGE IN DEBT	(13,422)			(92,149)
	PURCHASE OF TREASURY STOCK	(10,409)			-
	DIVIDENDS PAID	(19,004)			(18,846)
	PAYMENTS OF DEBT ISSUANCE COSTS	(4,183)			-
	OTHER FINANCING ACTIVITIES	(651)			(2)
	NET CASH USED IN FINANCING ACTIVITIES	(47,669)			(110,997)
	EFFECT OF EXCHANGE RATE CHANGES ON CASH	(2,591)			496
	NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(6,178)			7,335
	CASH AND CASH EQUIVALENTS at beginning of period	32,526			21,150
	CASH AND CASH EQUIVALENTS at end of period	$       26,348			$       28,485

 

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SOURCE Standard Motor Products, Inc.

FAQ

What was Standard Motor Products (SMP) revenue in Q3 2024?

Standard Motor Products reported Q3 2024 revenue of $399.3 million, representing a 3.3% increase from $386.4 million in Q3 2023.

What was SMP's adjusted earnings per share for Q3 2024?

SMP's adjusted diluted earnings per share for Q3 2024 was $1.28, up 15% from $1.11 in Q3 2023.

How much did SMP's Vehicle Control segment grow in Q3 2024?

SMP's Vehicle Control segment sales increased by 5.2% in Q3 2024 compared to the same period in 2023.

What is SMP's full-year 2024 sales guidance?

SMP expects full-year 2024 sales growth to be in the low- to mid-single digits, with Adjusted EBITDA ranging from 9.0-9.5%.