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

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

Second Quarter 2014 Results and a Quarterly Dividend

New York, NY, July 30, 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 six months ended June 30, 2014.

Consolidated net sales for the second quarter of 2014 were $272.5 million, compared to consolidated net sales of $270.1 million during the comparable quarter in 2013.  Earnings from continuing operations for the second quarter of 2014 were $11.2 million or 48 cents per diluted share, compared to $16.4 million or 71 cents per diluted share in the second quarter of 2013. The current quarter includes a one-time, non-recurring litigation charge discussed below. Excluding the litigation charge and other non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the second quarter of 2014 were $17.7 million or 76 cents per diluted share, compared to $16.4 million or 70 cents per diluted share in the second quarter of 2013.

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

(718) 392-0200

www.smpcorp.com

Consolidated net sales for the six month period ended June 30, 2014 were $505.3 million, compared to consolidated net sales of $500.8 million during the comparable period in 2013.  Earnings from continuing operations for the six month period ended June 30, 2014 were $23.6 million or $1.02 per diluted share, compared to $26 million or $1.12 per diluted share in the comparable period of 2013.  Excluding the litigation charge and other non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the six months ended June 30, 2014 and 2013 were $30.1 million or $1.30 per diluted share and $26 million or $1.12 per diluted share, respectively.

The results for the second quarter of 2014 include a one-time, non-recurring litigation charge of $10.6 million, $6.4 million net of taxes, relating to a tentative settlement of a legal proceeding with a third party. The legal proceeding arose from a former supplier’s default of their commercial loan and Standard Motor Products’ subsequent purchases of products from a third party that was alleged to be a controlled company of the original supplier. The $10.6 million settlement is expected to be paid in the third quarter 2014.

Commenting on the results, Mr. Lawrence I. Sills, Standard Motor Products’ Chairman and Chief Executive Officer, stated, “We are pleased that, as a result of ongoing improvements, we are able to achieve continued increases for the three month and six month periods in  2014—exclusive of the one-time litigation expense—in operating income and earnings per share.

“In the second quarter, non-GAAP operating income increased 4.9%, and similarly earnings per diluted share increased 8.6% to 76 cents per diluted share.  Year-to-date non-GAAP operating income grew 12.5% while earnings per diluted share rose from $1.12 to $1.30, an increase of 16%.

“Engine Management gross margin continues to improve—a result of increased manufacturing, savings in purchasing, and the benefits of recent acquisitions. This increase has been offset by a decline in Temperature Control gross margin, as we have scaled back production to bring inventories into line. We look for Temperature Control gross margins to improve in the second half of the year.

“We have also achieved reductions in SG&A, as we strive for improved efficiency and cost control in all areas.

“Sales, however, have been somewhat disappointing. Overall, we are up marginally for the year, slightly less than one percent, including a slight decline in Temperature Control. On a positive note, we see that our customers are achieving increases in the low to mid-single digits in both Engine Management and Temperature Control. Typically, this leads to increased purchases from us in the future.

“In our previous press release, we announced three acquisitions finalized earlier in the year. The three were: Pensacola Fuel Injection, Inc., a remanufacturer of diesel fuel injectors; Annex Manufacturing, an importer and distributor of Temperature Control products; and the establishment of a 50/50 joint venture with Gwo YngEnterprise Co., Ltd., a China-based manufacturer of Temperature Control products.

“The integration of all three is proceeding on schedule, and, as previously announced, all three are expected to be accretive to earnings in 2014, exclusive of one-time transition costs.

Further, as a result of our positive cash flow, we have absorbed the combined investment of $37.7 million for all three acquisitions, and our total debt at the end of the second quarter is lower than the comparable figure from the prior year.”

The Board of Directors has approved payment of a quarterly dividend of thirteen cents per share on the common stock outstanding. The dividend will be paid on September 2, 2014 to stockholders of record on August 15, 2014.

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Wednesday, July 30, 2014.  The dial in number is 866-952-7523 (domestic) or 785-424-1828 (international). The playback number is 800-723-2156 (domestic) or 402-220-2660 (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						SIX MONTHS ENDED
	JUNE 30,						JUNE 30,
	2014			2013			2014			2013
	(Unaudited)						(Unaudited)
NET SALES	$	272,540		$	270,126		$	505,292		$	500,834
COST OF SALES		195,141			192,330			359,983			357,210
GROSS PROFIT		77,399			77,796			145,309			143,624
SELLING, GENERAL & ADMINISTRATIVE EXPENSES		48,847			50,588			96,441			100,198
LITIGATION CHARGE		10,650			-			10,650			-
RESTRUCTURING AND INTEGRATION EXPENSES		555			200			726			618
OTHER INCOME , NET		273			212			533			442
OPERATING INCOME		17,620			27,220			38,025			43,250
OTHER NON-OPERATING INCOME (EXPENSE), NET		307			(64	)		(106	)		(260	)
INTEREST EXPENSE		457			646			765			1,218
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES		17,470			26,510			37,154			41,772
PROVISION FOR INCOME TAXES		6,301			10,110			13,578			15,806
EARNINGS FROM CONTINUING OPERATIONS		11,169			16,400			23,576			25,966
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES		(529	)		(357	)		(1,211	)		(749	)
NET EARNINGS	$	10,640		$	16,043		$	22,365		$	25,217
NET EARNINGS PER COMMON SHARE:
BASIC EARNINGS FROM CONTINUING OPERATIONS	$	0.49		$	0.71		$	1.03		$	1.13
DISCONTINUED OPERATION		(0.02	)		(0.01	)		(0.05	)		(0.03	)
NET EARNINGS PER COMMON SHARE - BASIC	$	0.47		$	0.70		$	0.98		$	1.10
DILUTED EARNINGS FROM CONTINUING OPERATIONS	$	0.48		$	0.71		$	1.02		$	1.12
DISCONTINUED OPERATION		(0.02	)		(0.02	)		(0.06	)		(0.03	)
NET EARNINGS PER COMMON SHARE - DILUTED	$	0.46		$	0.69		$	0.96		$	1.09
WEIGHTED AVERAGE NUMBER OF COMMON SHARES		22,874,002			22,981,337			22,910,419			22,917,769
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES		23,196,713			23,261,118			23,219,055			23,190,091

STANDARD MOTOR PRODUCTS, INC.

Segment Revenues and Operating Income

(In thousands)

	THREE MONTHS ENDED										SIX MONTHS ENDED
	JUNE 30,										JUNE 30,
	2014					2013					2014					2013
	(unaudited)										(unaudited)
Revenues
Engine Management	$	184,181				$	182,050				$	363,475				$	357,559
Temperature Control		85,660					86,660					137,145					139,388
All Other		2,699					1,416					4,672					3,887
	$	272,540				$	270,126				$	505,292				$	500,834
Gross Margin
Engine Management	$	56,059		30.4	%	$	54,380		29.9	%	$	109,254		30.1	%	$	106,094		29.7	%
Temperature Control		18,299		21.4	%		20,342		23.5	%		30,184		22.0	%		31,328		22.5	%
All Other		3,041					3,074					5,871					6,202
	$	77,399		28.4	%	$	77,796		28.8	%	$	145,309		28.8	%	$	143,624		28.7	%
Selling, General & Administrative
Engine Management	$	28,447		15.4	%	$	29,614		16.3	%	$	57,098		15.7	%	$	60,175		16.8	%
Temperature Control		13,260		15.5	%		13,414		15.5	%		24,532		17.9	%		24,773		17.8	%
All Other		7,140					7,560					14,811					15,250
	$	48,847		17.9	%	$	50,588		18.7	%	$	96,441		19.1	%	$	100,198		20.0	%
Operating Income
Engine Management	$	27,612		15.0	%	$	24,766		13.6	%	$	52,156		14.3	%	$	45,919		12.8	%
Temperature Control		5,039		5.9	%		6,928		8.0	%		5,652		4.1	%		6,555		4.7	%
All Other		(4,099	)				(4,486	)				(8,940	)				(9,048	)
		28,552		10.5	%		27,208		10.1	%		48,868		9.7	%		43,426		8.7	%
Litigation Charge		(10,650	)	-3.9	%		-		0.0	%		(10,650	)	-2.1	%		-		0.0	%
Restructuring & Integration		(555	)	-0.2	%		(200	)	-0.1	%		(726	)	-0.1	%		(618	)	-0.1	%
Other Income, Net		273		0.1	%		212		0.1	%		533		0.1	%		442		0.1	%
	$	17,620		6.5	%	$	27,220		10.1	%	$	38,025		7.5	%	$	43,250		8.6	%

STANDARD MOTOR PRODUCTS, INC.

Reconciliation of GAAP and Non-GAAP Measures

(In thousands, except per share amounts)

	THREE MONTHS ENDED						SIX MONTHS ENDED
	June 30,						June 30,
	2014			2013			2014			2013
	(Unaudited)						(Unaudited)
EARNINGS FROM CONTINUING OPERATIONS
GAAP EARNINGS FROM CONTINUING OPERATIONS	$	11,169		$	16,400		$	23,576		$	25,966
LITIGATION CHARGE (NET OF TAX)		6,390			-			6,390			-
RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)		333			120			436			371
GAIN FROM SALE OF BUILDINGS (NET OF TAX)		(157	)		(157	)		(315	)		(315	)
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS	$	17,735		$	16,363		$	30,087		$	26,022
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS	$	0.48		$	0.71		$	1.02		$	1.12
LITIGATION CHARGE (NET OF TAX)		0.28			-			0.27			-
RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)		0.01			-			0.02			0.01
GAIN FROM SALE OF BUILDINGS (NET OF TAX)		(0.01	)		(0.01	)		(0.01	)		(0.01	)
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS	$	0.76		$	0.70		$	1.30		$	1.12
OPERATING INCOME
GAAP OPERATING INCOME	$	17,620		$	27,220		$	38,025		$	43,250
LITIGATION CHARGE		10,650			-			10,650			-
RESTRUCTURING AND INTEGRATION EXPENSES		555			200			726			618
OTHER INCOME, NET		(273	)		(212	)		(533	)		(442	)
NON-GAAP OPERATING INCOME	$	28,552		$	27,208		$	48,868		$	43,426

MANAGEMENT BELIEVES THAT EARNINGS FROM CONTINUING OPERATIONS, DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS AND OPERATING INCOME 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)

	June 30,		December 31,
	2014		2013
	(Unaudited)
ASSETS
CASH	$	6,217	$	5,559
ACCOUNTS RECEIVABLE, GROSS		151,040		132,170
ALLOWANCE FOR DOUBTFUL ACCOUNTS		6,749		6,969
ACCOUNTS RECEIVABLE, NET		144,291		125,201
INVENTORIES		292,459		269,447
OTHER CURRENT ASSETS		53,376		45,870
TOTAL CURRENT ASSETS		496,343		446,077
PROPERTY, PLANT AND EQUIPMENT, NET		64,724		63,646
GOODWILL AND OTHER INTANGIBLES, NET		92,320		72,866
OTHER ASSETS		48,934		32,934
TOTAL ASSETS	$	702,321	$	615,523
LIABILITIES AND STOCKHOLDERS' EQUITY
NOTES PAYABLE	$	59,070	$	21,406
CURRENT PORTION OF LONG TERM DEBT		24		59
ACCOUNTS PAYABLE		90,112		71,469
ACCRUED CUSTOMER RETURNS		40,669		31,464
OTHER CURRENT LIABILITIES		103,976		95,918
TOTAL CURRENT LIABILITIES		293,851		220,316
LONG-TERM DEBT		8		16
ACCRUED ASBESTOS LIABILITIES		22,607		23,919
OTHER LIABILITIES		22,301		21,840
TOTAL LIABILITIES		338,767		266,091
TOTAL STOCKHOLDERS' EQUITY		363,554		349,432
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	702,321	$	615,523

STANDARD MOTOR PRODUCTS, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

	SIX MONTHS ENDED
	JUNE 30,
	2014			2013
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
NET EARNINGS	$	22,365		$	25,217
ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES:
DEPRECIATION AND AMORTIZATION		8,440			8,545
OTHER		5,376			8,108
CHANGE IN ASSETS AND LIABILITIES:
ACCOUNTS RECEIVABLE		(16,149	)		(53,723	)
INVENTORY		(19,527	)		(31,885	)
ACCOUNTS PAYABLE		13,847			16,550
OTHER		3,266			14,789
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVTIES		17,618			(12,399	)
CASH FLOWS FROM INVESTING ACTIVITIES
CAPITAL EXPENDITURES		(6,379	)		(5,551	)
ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES		(37,726	)		(12,760	)
OTHER INVESTING ACTIVITIES		11			(596	)
NET CASH USED IN INVESTING ACTIVITIES		(44,094	)		(18,907	)
CASH FLOWS FROM FINANCING ACTIVITIES
NET CHANGE IN DEBT		37,620			27,819
PURCHASE OF TREASURY STOCK		(5,860	)		(1,151	)
DIVIDENDS PAID		(5,955	)		(5,037	)
OTHER FINANCING ACTIVITIES		2,033			10,271
NET CASH PROVIDED BY FINANCING ACTIVITIES		27,838			31,902
EFFECT OF EXCHANGE RATE CHANGES ON CASH		(704	)		(1,395	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		658			(799	)
CASH AND CASH EQUIVALENTS at beginning of Period		5,559			13,074
CASH AND CASH EQUIVALENTS at end of Period	$	6,217		$	12,275