Attached files
| file | filename |
|---|---|
| 8-K - STANDARD MOTOR PRODUCTS, INC 8-K 2-24-2014 - STANDARD MOTOR PRODUCTS, INC. | form8k.htm |
EXHIBIT 99.1
For Immediate Release
For more information, contact:
James J. Burke
Standard Motor Products, Inc.
(718) 392-0200
Jennifer Tio
Maximum Marketing Services, Inc.
(312) 226-4111 x2449
Jennifer.tio@maxmarketing.com
Standard Motor Products, Inc. Announces
Fourth Quarter and Year End 2013 Results and
a New Stock Repurchase Program
New York, NY, February 24, 2014......Standard Motor Products, Inc. (NYSE: SMP), an automotive replacement parts manufacturer and distributor, reported today its consolidated financial results for the three months and for the year ended December 31, 2013.
Consolidated net sales for the fourth quarter of 2013 were $218.7 million, compared to consolidated net sales of $192.4 million during the comparable quarter in 2012. Earnings from continuing operations for the fourth quarter of 2013 were $9.4 million or 40 cents per diluted share, compared to $6.3 million or 27 cents per diluted share in the fourth quarter of 2012. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the fourth quarter of 2013 were $9.7 million or 42 cents, compared to $6.5 million or 28 cents per diluted share in the fourth quarter of 2012.
37-18 Northern Blvd., Long Island City, NY 11101
(718) 392-0200
www.smpcorp.com
Consolidated net sales for 2013 were $983.7 million, compared to consolidated net sales of $948.9 million in 2012. Earnings from continuing operations for 2013 were $53 million or $2.28 per diluted share, compared to $43 million or $1.86 per diluted share in 2012. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for 2013 and 2012 were $54.1 million or $2.32 per diluted share and $42.3 million or $1.83 per diluted share, respectively.
Mr. Lawrence I. Sills, Standard Motor Products’ Chairman and Chief Executive Officer, stated, “We are very pleased with our results for 2013. We set company records for both sales and profit, despite a disappointing year in Temperature Control, primarily the result of a mild summer season. For the year, sales increased 3.7% and earnings per share, excluding special items, were up 27%, from $1.83 to $2.32.
“For the fourth quarter, sales grew 13.7% over the prior year and earnings per share, excluding special items, were up 50%, from 28 cents to 42 cents. The fourth quarter figures were enhanced by certain Engine Management customers broadening their product lines for their commercial business. We continue to forecast annual growth in the low to mid single digit range.
“Our Engine Management division had an excellent year. Sales were up 6.9%, above industry growth averages, and gross margin improved from 28.2% to 30.7%. Temperature Control sales were down for the year, for reasons stated above, even with the benefit of the CompressorWorks acquisition for the full 12 months in 2013, vs. only eight months in 2012.
“Much of the Company’s profit improvement resulted from an increase in gross margin. As we had said in prior releases, we are seeing the continuing benefits of our efforts over the last several years – manufacturing parts we formerly purchased, integrating recent acquisitions, expanding our production in low cost areas, and improved sourcing.
“Cash flow continued strong. During the year we reduced total debt by $19 million, from $40.6 million to $21.5 million. In addition, during 2013 we invested roughly $20 million in acquisitions and company share repurchases.
“In January we announced the acquisition of the assets of Pensacola Fuel Injection for $12.2 million. The company re-manufactures a wide range of diesel injectors, diesel pumps, and turbo chargers. PFI was our primary supplier for these parts. We plan to relocate the operation to our facility in Grapevine, Texas by the end of the second quarter. This will result in cost savings in the product line, and we will now be a basic manufacturer in this important and growing product area. The current owners of PFI will retain the retail segment of this business.”
The Board of Directors has authorized the purchase of up to an additional $10 million of its common stock under a stock repurchase program. This increase is in addition to the completed $6 million repurchase program authorized by the Board in February 2013. Stock will be purchased from time to time, in the open market or through private transactions, as market conditions warrant. The Company intends to fund the stock repurchase program through its revolving credit facility. The stock repurchase program may be suspended or discontinued at any time. Any repurchased shares will be held as treasury stock and will be available for general corporate purposes, including funding existing equity compensation plans.
Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Monday, February 24, 2014. The dial-in number is 866-952-1907 (domestic) or 785-424-1826 (international). The playback number is 800-757-4761(domestic) or 402-220-7215 (international). The conference ID # is STANDARD.
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Standard Motor Products cautions investors that any forward-looking statements made by the company, including those that may be made in this press release, are based on management’s expectations at the time they are made, but they are subject to risks and uncertainties that may cause actual results, events or performance to differ materially from those contemplated by such forward looking statements. Among the factors that could cause actual results, events or performance to differ materially from those risks and uncertainties discussed in this press release are those detailed from time-to-time in prior press releases and in the company’s filings with the Securities and Exchange Commission, including the company’s annual report on Form 10-K and quarterly reports on Form 10-Q. By making these forward-looking statements, Standard Motor Products undertakes no obligation or intention to update these statements after the date of this release.
###
STANDARD MOTOR PRODUCTS, INC.
Consolidated Statements of Operations
(In thousands, except per share amounts)
|
|
THREE MONTHS ENDED
|
TWELVE MONTHS ENDED
|
||||||||||||||
|
|
DECEMBER 31,
|
DECEMBER 31,
|
||||||||||||||
|
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||
|
NET SALES
|
$
|
218,708
|
$
|
192,355
|
$
|
983,704
|
$
|
948,916
|
||||||||
|
|
||||||||||||||||
|
COST OF SALES
|
151,959
|
134,388
|
693,250
|
689,247
|
||||||||||||
|
|
||||||||||||||||
|
GROSS PROFIT
|
66,749
|
57,967
|
290,454
|
259,669
|
||||||||||||
|
|
||||||||||||||||
|
SELLING, GENERAL & ADMINISTRATIVE EXPENSES
|
50,443
|
45,173
|
201,256
|
187,495
|
||||||||||||
|
RESTRUCTURING AND INTEGRATION EXPENSES
|
826
|
658
|
3,357
|
1,437
|
||||||||||||
|
OTHER INCOME , NET
|
256
|
240
|
1,022
|
694
|
||||||||||||
|
|
||||||||||||||||
|
OPERATING INCOME
|
15,736
|
12,376
|
86,863
|
71,431
|
||||||||||||
|
|
||||||||||||||||
|
OTHER NON-OPERATING INCOME (EXPENSE), NET
|
28
|
(630
|
)
|
1
|
(696
|
)
|
||||||||||
|
|
||||||||||||||||
|
INTEREST EXPENSE
|
281
|
531
|
1,902
|
2,788
|
||||||||||||
|
|
||||||||||||||||
|
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
|
15,483
|
11,215
|
84,962
|
67,947
|
||||||||||||
|
|
||||||||||||||||
|
PROVISION FOR INCOME TAXES
|
6,092
|
4,905
|
31,919
|
24,978
|
||||||||||||
|
|
||||||||||||||||
|
EARNINGS FROM CONTINUING OPERATIONS
|
9,391
|
6,310
|
53,043
|
42,969
|
||||||||||||
|
|
||||||||||||||||
|
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES
|
(455
|
)
|
(395
|
)
|
(1,593
|
)
|
(1,616
|
)
|
||||||||
|
|
||||||||||||||||
|
NET EARNINGS
|
$
|
8,936
|
$
|
5,915
|
$
|
51,450
|
$
|
41,353
|
||||||||
|
|
||||||||||||||||
|
NET EARNINGS PER COMMON SHARE:
|
||||||||||||||||
|
|
||||||||||||||||
|
BASIC EARNINGS FROM CONTINUING OPERATIONS
|
$
|
0.41
|
$
|
0.28
|
$
|
2.31
|
$
|
1.88
|
||||||||
|
DISCONTINUED OPERATION
|
(0.02
|
)
|
(0.02
|
)
|
(0.07
|
)
|
(0.07
|
)
|
||||||||
|
NET EARNINGS PER COMMON SHARE - BASIC
|
$
|
0.39
|
$
|
0.26
|
$
|
2.24
|
$
|
1.81
|
||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
DILUTED EARNINGS FROM CONTINUING OPERATIONS
|
$
|
0.40
|
$
|
0.27
|
$
|
2.28
|
$
|
1.86
|
||||||||
|
DISCONTINUED OPERATION
|
(0.02
|
)
|
(0.01
|
)
|
(0.07
|
)
|
(0.07
|
)
|
||||||||
|
NET EARNINGS PER COMMON SHARE - DILUTED
|
$
|
0.38
|
$
|
0.26
|
$
|
2.21
|
$
|
1.79
|
||||||||
|
|
||||||||||||||||
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
|
23,061,533
|
22,817,551
|
22,974,690
|
22,812,077
|
||||||||||||
|
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES
|
23,366,587
|
23,075,586
|
23,270,067
|
23,050,340
|
||||||||||||
STANDARD MOTOR PRODUCTS, INC.
Segment Revenues and Operating Profit
(In thousands)
|
|
THREE MONTHS ENDED
|
TWELVE MONTHS ENDED
|
||||||||||||||||||||||||||
|
|
DECEMBER 31,
|
DECEMBER 31,
|
||||||||||||||||||||||||||
|
|
2013
|
2012
|
2013
|
2012
|
||||||||||||||||||||||||
|
|
(unaudited)
|
(unaudited)
|
||||||||||||||||||||||||||
|
Revenues
|
||||||||||||||||||||||||||||
|
Engine Management
|
$
|
175,747
|
$
|
153,657
|
$
|
711,245
|
$
|
665,105
|
||||||||||||||||||||
|
Temperature Control
|
38,309
|
35,248
|
262,537
|
268,804
|
||||||||||||||||||||||||
|
All Other
|
4,652
|
3,450
|
9,922
|
15,007
|
||||||||||||||||||||||||
|
|
$
|
218,708
|
$
|
192,355
|
$
|
983,704
|
$
|
948,916
|
||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
Gross Margin
|
||||||||||||||||||||||||||||
|
Engine Management
|
$
|
55,546
|
31.6
|
%
|
$
|
47,221
|
30.7
|
%
|
$
|
218,294
|
30.7
|
%
|
$
|
187,776
|
28.2
|
%
|
||||||||||||
|
Temperature Control
|
6,326
|
16.5
|
%
|
6,979
|
19.8
|
%
|
58,150
|
22.1
|
%
|
58,583
|
21.8
|
%
|
||||||||||||||||
|
All Other
|
4,877
|
3,767
|
14,010
|
13,310
|
||||||||||||||||||||||||
|
|
$
|
66,749
|
30.5
|
%
|
$
|
57,967
|
30.1
|
%
|
$
|
290,454
|
29.5
|
%
|
$
|
259,669
|
27.4
|
%
|
||||||||||||
|
|
||||||||||||||||||||||||||||
|
Selling, General & Administrative
|
||||||||||||||||||||||||||||
|
Engine Management
|
$
|
31,273
|
17.8
|
%
|
$
|
28,956
|
18.8
|
%
|
$
|
121,578
|
17.1
|
%
|
$
|
116,157
|
17.5
|
%
|
||||||||||||
|
Temperature Control
|
10,078
|
26.3
|
%
|
8,832
|
25.1
|
%
|
47,845
|
18.2
|
%
|
43,537
|
16.2
|
%
|
||||||||||||||||
|
All Other
|
9,092
|
7,385
|
31,833
|
27,801
|
||||||||||||||||||||||||
|
|
$
|
50,443
|
23.1
|
%
|
$
|
45,173
|
23.5
|
%
|
$
|
201,256
|
20.5
|
%
|
$
|
187,495
|
19.8
|
%
|
||||||||||||
|
|
||||||||||||||||||||||||||||
|
Operating Profit
|
||||||||||||||||||||||||||||
|
Engine Management
|
$
|
24,273
|
13.8
|
%
|
$
|
18,265
|
11.9
|
%
|
$
|
96,716
|
13.6
|
%
|
$
|
71,619
|
10.8
|
%
|
||||||||||||
|
Temperature Control
|
(3,752
|
)
|
-9.8
|
%
|
(1,853
|
)
|
-5.3
|
%
|
10,305
|
3.9
|
%
|
15,046
|
5.6
|
%
|
||||||||||||||
|
All Other
|
(4,215
|
)
|
(3,618
|
)
|
(17,823
|
)
|
(14,491
|
)
|
||||||||||||||||||||
|
|
16,306
|
7.5
|
%
|
12,794
|
6.7
|
%
|
89,198
|
9.1
|
%
|
72,174
|
7.6
|
%
|
||||||||||||||||
|
Restructuring & Integration
|
(826
|
)
|
-0.4
|
%
|
(658
|
)
|
-0.3
|
%
|
(3,357
|
)
|
-0.3
|
%
|
(1,437
|
)
|
-0.2
|
%
|
||||||||||||
|
Other Income, Net
|
256
|
0.1
|
%
|
240
|
0.1
|
%
|
1,022
|
0.1
|
%
|
694
|
0.1
|
%
|
||||||||||||||||
|
|
$
|
15,736
|
7.2
|
%
|
$
|
12,376
|
6.4
|
%
|
$
|
86,863
|
8.8
|
%
|
$
|
71,431
|
7.5
|
%
|
||||||||||||
STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures
|
(In thousands, except per share amounts)
|
||||||||||||||||
|
|
THREE MONTHS ENDED
|
TWELVE MONTHS ENDED
|
||||||||||||||
|
|
DECEMBER 31,
|
DECEMBER 31,
|
||||||||||||||
|
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||
|
EARNINGS FROM CONTINUING OPERATIONS
|
||||||||||||||||
|
|
||||||||||||||||
|
GAAP EARNINGS FROM CONTINUING OPERATIONS
|
$
|
9,391
|
$
|
6,310
|
$
|
53,043
|
$
|
42,969
|
||||||||
|
|
||||||||||||||||
|
RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)
|
495
|
395
|
2,014
|
862
|
||||||||||||
|
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD
|
-
|
-
|
(374
|
)
|
(774
|
)
|
||||||||||
|
GAIN FROM SALE OF BUILDINGS (NET OF TAX)
|
(157
|
)
|
(157
|
)
|
(629
|
)
|
(772
|
)
|
||||||||
|
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS
|
$
|
9,729
|
$
|
6,548
|
$
|
54,054
|
$
|
42,285
|
||||||||
|
|
||||||||||||||||
|
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
|
||||||||||||||||
|
|
||||||||||||||||
|
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
|
$
|
0.40
|
$
|
0.27
|
$
|
2.28
|
$
|
1.86
|
||||||||
|
|
||||||||||||||||
|
RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)
|
0.02
|
0.02
|
0.09
|
0.03
|
||||||||||||
|
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD
|
-
|
-
|
(0.02
|
)
|
(0.03
|
)
|
||||||||||
|
GAIN FROM SALE OF BUILDINGS (NET OF TAX)
|
-
|
(0.01
|
)
|
(0.03
|
)
|
(0.03
|
)
|
|||||||||
|
|
||||||||||||||||
|
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
|
$
|
0.42
|
$
|
0.28
|
$
|
2.32
|
$
|
1.83
|
||||||||
MANAGEMENT BELIEVES THAT EARNINGS FROM CONTINUING OPERATIONS AND DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS BEFORE SPECIAL ITEMS, WHICH ARE NON-GAAP MEASUREMENTS, 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)
|
|
December 31,
|
December 31,
|
||||||
|
|
2013
|
2012
|
||||||
|
|
(Unaudited)
|
|||||||
|
|
||||||||
|
ASSETS
|
||||||||
|
|
||||||||
|
CASH
|
$
|
5,559
|
$
|
13,074
|
||||
|
|
||||||||
|
ACCOUNTS RECEIVABLE, GROSS
|
132,170
|
104,689
|
||||||
|
ALLOWANCE FOR DOUBTFUL ACCOUNTS
|
6,969
|
6,124
|
||||||
|
ACCOUNTS RECEIVABLE, NET
|
125,201
|
98,565
|
||||||
|
|
||||||||
|
INVENTORIES
|
269,447
|
267,468
|
||||||
|
OTHER CURRENT ASSETS
|
45,870
|
39,446
|
||||||
|
|
||||||||
|
TOTAL CURRENT ASSETS
|
446,077
|
418,553
|
||||||
|
|
||||||||
|
PROPERTY, PLANT AND EQUIPMENT, NET
|
63,646
|
64,422
|
||||||
|
GOODWILL AND OTHER INTANGIBLES, NET
|
72,866
|
72,373
|
||||||
|
OTHER ASSETS
|
32,934
|
21,246
|
||||||
|
|
||||||||
|
TOTAL ASSETS
|
$
|
615,523
|
$
|
576,594
|
||||
|
|
||||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
|
|
||||||||
|
NOTES PAYABLE
|
$
|
21,406
|
$
|
40,453
|
||||
|
CURRENT PORTION OF LONG TERM DEBT
|
59
|
120
|
||||||
|
ACCOUNTS PAYABLE
|
71,469
|
62,283
|
||||||
|
ACCRUED CUSTOMER RETURNS
|
31,464
|
29,033
|
||||||
|
OTHER CURRENT LIABILITIES
|
95,918
|
90,283
|
||||||
|
|
||||||||
|
TOTAL CURRENT LIABILITIES
|
220,316
|
222,172
|
||||||
|
|
||||||||
|
LONG-TERM DEBT
|
16
|
75
|
||||||
|
ACCRUED ASBESTOS LIABILITIES
|
23,919
|
25,110
|
||||||
|
OTHER LIABILITIES
|
21,840
|
21,650
|
||||||
|
|
||||||||
|
TOTAL LIABILITIES
|
266,091
|
269,007
|
||||||
|
|
||||||||
|
TOTAL STOCKHOLDERS' EQUITY
|
349,432
|
307,587
|
||||||
|
|
||||||||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
615,523
|
$
|
576,594
|
||||
STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
|
|
TWELVE MONTHS ENDED
|
|||||||
|
|
DECEMBER 31,
|
|||||||
|
|
2013
|
2012
|
||||||
|
|
(Unaudited)
|
|||||||
|
|
||||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
|
NET EARNINGS
|
$
|
51,450
|
$
|
41,353
|
||||
|
ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH
|
||||||||
|
PROVIDED BY OPERATING ACTIVITIES:
|
||||||||
|
DEPRECIATION AND AMORTIZATION
|
17,595
|
16,466
|
||||||
|
OTHER
|
12,773
|
17,231
|
||||||
|
CHANGE IN ASSETS AND LIABILITIES:
|
||||||||
|
ACCOUNTS RECEIVABLE
|
(27,278
|
)
|
15,393
|
|||||
|
INVENTORY
|
(6,094
|
)
|
(1,556
|
)
|
||||
|
ACCOUNTS PAYABLE
|
12,497
|
3,287
|
||||||
|
OTHER
|
(3,327
|
)
|
1,386
|
|||||
|
NET CASH PROVIDED BY OPERATING ACTIVTIES
|
57,616
|
93,560
|
||||||
|
|
||||||||
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
|
CAPITAL EXPENDITURES
|
(11,410
|
)
|
(11,811
|
)
|
||||
|
ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES
|
(12,760
|
)
|
(38,594
|
)
|
||||
|
OTHER INVESTING ACTIVITIES
|
(592
|
)
|
493
|
|||||
|
NET CASH USED IN INVESTING ACTIVITIES
|
(24,762
|
)
|
(49,912
|
)
|
||||
|
|
||||||||
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
|
NET CHANGE IN DEBT
|
(19,166
|
)
|
(32,652
|
)
|
||||
|
PURCHASE OF TREASURY STOCK
|
(6,864
|
)
|
(4,999
|
)
|
||||
|
DIVIDENDS PAID
|
(10,107
|
)
|
(8,215
|
)
|
||||
|
OTHER FINANCING ACTIVITIES
|
(3,158
|
)
|
3,079
|
|||||
|
NET CASH USED IN FINANCING ACTIVITIES
|
(39,295
|
)
|
(42,787
|
)
|
||||
|
|
||||||||
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
(1,074
|
)
|
1,342
|
|||||
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
(7,515
|
)
|
2,203
|
|||||
|
CASH AND CASH EQUIVALENTS at beginning of year
|
13,074
|
10,871
|
||||||
|
CASH AND CASH EQUIVALENTS at end of year
|
$
|
5,559
|
$
|
13,074
|
||||