Standard Motor Products (SMP) 8-K Third Quarter 2013 Results and a Quarterly Dividend

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

Third Quarter 2013 Results and a Quarterly Dividend

New York, NY, October 31, 2013......Standard Motor Products, Inc. (NYSE: SMP), an automotive replacement parts manufacturer and distributor, reported today its consolidated financial results for the three months and nine months ended September 30, 2013.

Consolidated net sales for the third quarter of 2013 were $264.2 million, compared to consolidated net sales of $276 million during the comparable quarter in 2012. Earnings from continuing operations for the third quarter of 2013 were $17.7 million or 76 cents per diluted share, compared to $17.4 million or 76 cents per diluted share in the third 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 third quarter of 2013 were $18.3 million or 79 cents per diluted share, compared to $16.8 million or 73 cents per diluted share in the third quarter of 2012.

37-18 Northern Blvd., Long Island City, NY  11101

(718) 392-0200

www.smpcorp.com

Consolidated net sales for the nine month period ended September 30, 2013 were $765 million, compared to consolidated net sales of $756.6 million during the comparable period in 2012.  Earnings from continuing operations for the nine month period ended September 30, 2013 were $43.7 million or $1.88 per diluted share, compared to $36.7 million or $1.59 per diluted share in the comparable period 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 nine months ended 2013 and 2012 were $44.3 million or $1.91 per diluted share and $35.7 million or $1.55 per diluted share, respectively.

Commenting on the results, Mr. Lawrence I. Sills, Standard Motor Products’ Chairman and Chief Executive Officer, stated, “We achieved an 8% increase in earnings per share for the quarter (excluding non-operational gains and losses), despite the sales decline caused by the weather-related drop in Temperature Control sales. We are now 23% above 2012 in earnings per share for the first nine months.

“The primary reason for the increase is our improvement in gross margin, which is up 2.1 points for the quarter and 2.5 points for the year. We are seeing the benefits of our continuing cost reduction efforts—manufacturing parts we formerly purchased, improved sourcing of finished goods and components, relocating labor intensive operations to low cost areas, and consolidating and integrating our recent acquisitions.

“Engine Management sales were ahead 1.2% for the quarter, and nearly 5% for the year—in line with, or slightly ahead of, industry averages.

“The major shortfall was in Temperature Control sales, which, after adjusting for the CompressorWorks acquisition, are down 10.9% for the quarter and 11.1% year to date. As we have previously discussed, air conditioning sales can vary 20% up or down in a given year, depending on the weather.  2012 was one of the hottest years on record; 2013 one of the coolest.

“We are pleased with the progress we have made in our Temperature Control division. The integration of CompressorWorks was completed on time and within budget. We have combined manufacturing locations, distribution centers, and product lines, and are on track to achieve all planned savings. We believe we are well positioned to take advantage of a more typical summer season.

“In further steps to reduce costs and improve efficiency, we offered a voluntary separation incentive program to certain eligible employees in our sales force. This resulted in an $1.8 million restructuring expense in the quarter with anticipated $1.5 million SG&A savings per year beginning in 2014.

“Cash flow was very strong in the third quarter reflecting a $26 million reduction in inventories that was built up earlier in the year to safeguard our CompressorWorks integration. In the quarter, we were able to reduce debt $36 million to close September 30 with total debt outstanding of $32 million.”

The Board of Directors has approved payment of a quarterly dividend of eleven cents per share on the common stock outstanding. The dividend will be paid on December 2, 2013 to stockholders of record on November 15, 2013.

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Thursday, October 31, 2013.  The dial-in number is 866-952-7524 (domestic) or 785-424-1829 (international). The playback number is 800-723-0498 (domestic) or 402-220-2652 (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.

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STANDARD MOTOR PRODUCTS, INC.

Consolidated Statements of Operations

(In thousands, except per share amounts)
	THREE MONTHS ENDED						NINE MONTHS ENDED
	SEPTEMBER 30,						SEPTEMBER 30,
	2013			2012			2013			2012
	(Unaudited)						(Unaudited)
NET SALES	$	264,162		$	275,975		$	764,996		$	756,561
COST OF SALES		184,081			198,167			541,291			554,859
GROSS PROFIT		80,081			77,808			223,705			201,702
SELLING, GENERAL & ADMINISTRATIVE EXPENSES		50,615			50,937			150,813			142,322
RESTRUCTURING AND INTEGRATION EXPENSES		1,913			642			2,531			779
OTHER INCOME , NET		324			433			766			454
OPERATING INCOME		27,877			26,662			71,127			59,055
OTHER NON-OPERATING INCOME (EXPENSE), NET		233			-			(27	)		(66	)
INTEREST EXPENSE		403			702			1,621			2,257
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES		27,707			25,960			69,479			56,732
PROVISION FOR INCOME TAXES		10,021			8,516			25,827			20,073
EARNINGS FROM CONTINUING OPERATIONS		17,686			17,444			43,652			36,659
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES		(389	)		(604	)		(1,138	)		(1,221	)
NET EARNINGS	$	17,297		$	16,840		$	42,514		$	35,438

NET EARNINGS PER COMMON SHARE:
BASIC EARNINGS FROM CONTINUING OPERATIONS	$	0.77		$	0.77		$	1.90		$	1.61
DISCONTINUED OPERATION		(0.02	)		(0.03	)		(0.05	)		(0.06	)
NET EARNINGS PER COMMON SHARE - BASIC	$	0.75		$	0.74		$	1.85		$	1.55
DILUTED EARNINGS FROM CONTINUING OPERATIONS	$	0.76		$	0.76		$	1.88		$	1.59
DISCONTINUED OPERATION		(0.02	)		(0.02	)		(0.05	)		(0.05	)
NET EARNINGS PER COMMON SHARE - DILUTED	$	0.74		$	0.74		$	1.83		$	1.54
WEIGHTED AVERAGE NUMBER OF COMMON SHARES		22,999,832			22,691,878			22,945,424			22,810,238
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES		23,239,009			22,877,635			23,179,187			22,999,244

STANDARD MOTOR PRODUCTS, INC.

Segment Revenues and Operating Profit

(In thousands)
	THREE MONTHS ENDED										NINE MONTHS ENDED
	SEPTEMBER 30,										SEPTEMBER 30,
	2013					2012					2013					2012
	(unaudited)										(unaudited)
Revenues
Engine Management	$	177,939				$	175,789				$	535,498				$	511,448
Temperature Control		84,840					95,229					224,228					233,556
All Other		1,383					4,957					5,270					11,557
	$	264,162				$	275,975				$	764,996				$	756,561
Gross Margin
Engine Management	$	56,654		31.8	%	$	51,285		29.2	%	$	162,748		30.4	%	$	140,555		27.5	%
Temperature Control		20,496		24.2	%		23,156		24.3	%		51,824		23.1	%		51,604		22.1	%
All Other		2,931					3,367					9,133					9,543
	$	80,081		30.3	%	$	77,808		28.2	%	$	223,705		29.2	%	$	201,702		26.7	%
Selling, General & Administrative
Engine Management	$	30,130		16.9	%	$	29,870		17.0	%	$	90,305		16.9	%	$	87,201		17.0	%
Temperature Control		12,994		15.3	%		14,099		14.8	%		37,767		16.8	%		34,705		14.9	%
All Other		7,491					6,968					22,741					20,416
	$	50,615		19.2	%	$	50,937		18.5	%	$	150,813		19.7	%	$	142,322		18.8	%
Operating Profit
Engine Management	$	26,524		14.9	%	$	21,415		12.2	%	$	72,443		13.5	%	$	53,354		10.4	%
Temperature Control		7,502		8.8	%		9,057		9.5	%		14,057		6.3	%		16,899		7.2	%
All Other		(4,560	)				(3,601	)				(13,608	)				(10,873	)
		29,466		11.2	%		26,871		9.7	%		72,892		9.5	%		59,380		7.8	%
Restructuring & Integration		(1,913	)	-0.7	%		(642	)	-0.2	%		(2,531	)	-0.3	%		(779	)	-0.1	%
Other Income, Net		324		0.1	%		433		0.2	%		766		0.1	%		454		0.1	%
	$	27,877		10.6	%	$	26,662		9.7	%	$	71,127		9.3	%	$	59,055		7.8	%

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,
	2013			2012			2013			2012
	(Unaudited)						(Unaudited)
EARNINGS FROM CONTINUING OPERATIONS
GAAP EARNINGS FROM CONTINUING OPERATIONS	$	17,686		$	17,444		$	43,652		$	36,659
RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)		1,148			385			1,519			467
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD		(374	)		(774	)		(374	)		(774	)
GAIN FROM SALE OF BUILDINGS (NET OF TAX)		(157	)		(301	)		(472	)		(615	)
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS	$	18,303		$	16,754		$	44,325		$	35,737
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS	$	0.76		$	0.76		$	1.88		$	1.59
RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)		0.05			0.01			0.07			0.02
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD		(0.01	)		(0.03	)		(0.02	)		(0.03	)
GAIN FROM SALE OF BUILDINGS (NET OF TAX)		(0.01	)		(0.01	)		(0.02	)		(0.03	)
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS	$	0.79		$	0.73		$	1.91		$	1.55

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)
	September 30,		December 31,
	2013		2012
	(Unaudited)
ASSETS
CASH	$	10,097	$	13,074
ACCOUNTS RECEIVABLE, GROSS		149,000		104,689
ALLOWANCE FOR DOUBTFUL ACCOUNTS		7,021		6,124
ACCOUNTS RECEIVABLE, NET		141,979		98,565
INVENTORIES		269,205		267,468
OTHER CURRENT ASSETS		46,481		39,446
TOTAL CURRENT ASSETS		467,762		418,553
PROPERTY, PLANT AND EQUIPMENT, NET		63,883		64,422
GOODWILL AND OTHER INTANGIBLES, NET		74,221		72,373
OTHER ASSETS		30,025		21,246
TOTAL ASSETS	$	635,891	$	576,594
LIABILITIES AND STOCKHOLDERS' EQUITY
NOTES PAYABLE	$	32,187	$	40,453
CURRENT PORTION OF LONG TERM DEBT		82		120
ACCOUNTS PAYABLE		65,165		62,283
ACCRUED CUSTOMER RETURNS		46,721		29,033
OTHER CURRENT LIABILITIES		98,473		90,283
TOTAL CURRENT LIABILITIES		242,628		222,172
LONG-TERM DEBT		23		75
ACCRUED ASBESTOS LIABILITIES		24,223		25,110
OTHER LIABILITIES		21,728		21,650
TOTAL LIABILITIES		288,602		269,007
TOTAL STOCKHOLDERS' EQUITY		347,289		307,587
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	635,891	$	576,594

STANDARD MOTOR PRODUCTS, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)
	NINE MONTHS ENDED
	SEPTEMBER 30,
	2013			2012
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
NET EARNINGS	$	42,514		$	35,438
ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
DEPRECIATION AND AMORTIZATION		13,203			12,093
OTHER		9,843			13,519
CHANGE IN ASSETS AND LIABILITIES:
ACCOUNTS RECEIVABLE		(43,990	)		(48,008	)
INVENTORY		(5,345	)		21,082
ACCOUNTS PAYABLE		(450	)		4,957
OTHER		17,876			23,769
NET CASH PROVIDED BY OPERATING ACTIVTIES		33,651			62,850
CASH FLOWS FROM INVESTING ACTIVITIES
CAPITAL EXPENDITURES		(8,467	)		(8,003	)
ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES		(12,760	)		(38,594	)
OTHER INVESTING ACTIVITIES		(596	)		9
NET CASH USED IN INVESTING ACTIVITIES		(21,823	)		(46,588	)
CASH FLOWS FROM FINANCING ACTIVITIES
NET CHANGE IN DEBT		(8,356	)		(12,817	)
PURCHASE OF TREASURY STOCK		(1,672	)		(4,999	)
DIVIDENDS PAID		(7,566	)		(6,162	)
OTHER FINANCING ACTIVITIES		3,350			6,339
NET CASH USED IN FINANCING ACTIVITIES		(14,244	)		(17,639	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		(561	)		1,393
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(2,977	)		16
CASH AND CASH EQUIVALENTS at beginning of Period		13,074			10,871
CASH AND CASH EQUIVALENTS at end of Period	$	10,097		$	10,887