Standard Motor Products 8K Results of Operations and Financial Condition | SMP 24 Feb 14

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

Standard Motor Products (SMP) 8-KResults of Operations and Financial Condition