Standard Motor Products 8K Fourth Quarter and Year End 2014 Results and a | SMP 25 Feb 15

Exhibit 99.1

For Immediate Release

For more information, contact:

James J. Burke

Standard Motor Products, Inc.

(718) 392-0200

Standard Motor Products, Inc. Announces

Fourth Quarter and Year End 2014 Results and a

New Stock Repurchase Program

New York, NY, February 25, 2015......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, 2014.

Consolidated net sales for the fourth quarter of 2014 were $218.1 million, compared to consolidated net sales of $218.7 million during the comparable quarter in 2013. Earnings from continuing operations for the fourth quarter of 2014 were $11.5 million or 50 cents per diluted share, compared to $9.4 million or 40 cents per diluted share in the fourth quarter of 2013. 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 2014 were $11.4 million or 49 cents, compared to $9.7 million or 42 cents per diluted share in the fourth quarter of 2013.

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

(718) 392-0200

www.smpcorp.com

Consolidated net sales for 2014 were $980.4 million, compared to consolidated net sales of $983.7 million in 2013. Earnings from continuing operations for 2014 were $52.9 million or $2.28 per diluted share, compared to $53 million or $2.28 per diluted share in 2013. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for 2014 and 2013 were $58.7 million or $2.52 per diluted share and $54.1 million or $2.32 per diluted share, respectively.

Mr. Lawrence I. Sills, Standard Motor Products’ Chairman and Chief Executive Officer, stated, “We are pleased with our fourth quarter results. To begin with, our sales equaled a very strong quarter from a year ago. Engine Management, for example, had a 14% increase in the fourth quarter of 2013, above our normal growth pattern, and we matched the same sales figure this year. At the same time, we had improvements in gross margin and operating profit, leading to a 16.7% increase in diluted earnings per share, excluding special items, for the quarter, from 42 cents to 49 cents.

“For the full year, despite disappointing sales, we achieved an 8.6% increase in diluted earnings per share, excluding special items. Sales were slightly below 2013, and below our forecast of low to mid-single digit annual growth. A major contributing factor was the second cool summer in a row, which led to lower Temperature Control volume. However, as a result of continued improvement in manufacturing, purchasing, and expense control, our diluted earnings per share, excluding special items, increased from $2.32 to $2.52, which is an all-time record for our company.

“We made three acquisitions early in 2014—Pensacola Fuel Injectors, a rebuilder of diesel fuel injectors; Annex Manufacturing, an importer and distributor of Temperature Control products; and the creation of a 50/50 joint venture with Gwo Yng, a leading Chinese manufacturer of Temperature Control products. All three are now fully integrated into our company, and we look forward to achieving additional benefits in 2015.

“Several weeks ago, we announced the appointment of Eric Sills as President of the Company. His previous position was Vice President Global Operations, where he was responsible for all manufacturing, distribution, engineering, and supply chain management, both in the U.S. and worldwide. We are confident that Eric’s skill, experience, and knowledge of the industry makes him an ideal candidate to help lead the company into the future.

“Finally, on February 2, we announced an increase in our quarterly dividend from 13 cents to 15 cents, reflecting our confidence in the Company’s future. We are pleased that we can continue to return value to our shareholders.”

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 $10 million repurchase program authorized by the Board in February 2014. 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 Wednesday, February 25, 2015. The dial-in number is 877-876-9176 (domestic) or 785-424-1667 (international). The playback number is 800-839-3735 (domestic) or 402-220-2977 (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,
	2014			2013			2014			2013
	(Unaudited)						(Unaudited)
NET SALES	$	218,054		$	218,708		$	980,392		$	983,704

COST OF SALES		150,960			151,959			690,762			693,250

GROSS PROFIT		67,094			66,749			289,630			290,454

SELLING, GENERAL & ADMINISTRATIVE EXPENSES		48,273			50,443			193,525			201,256
LITIGATION CHARGE		-			-			10,650			-
RESTRUCTURING AND INTEGRATION EXPENSES		128			826			1,197			3,357
OTHER INCOME , NET		279			256			1,080			1,022

OPERATING INCOME		18,972			15,736			85,338			86,863

OTHER NON-OPERATING INCOME (EXPENSE), NET		(908	)		28			(1,969	)		1

INTEREST EXPENSE		411			281			1,616			1,902

EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES		17,653			15,483			81,753			84,962

PROVISION FOR INCOME TAXES		6,136			6,092			28,854			31,919

EARNINGS FROM CONTINUING OPERATIONS		11,517			9,391			52,899			53,043

LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES		(419	)		(455	)		(9,870	)		(1,593	)

NET EARNINGS	$	11,098		$	8,936		$	43,029		$	51,450

NET EARNINGS PER COMMON SHARE:

BASIC EARNINGS FROM CONTINUING OPERATIONS	$	0.50		$	0.41		$	2.31		$	2.31
DISCONTINUED OPERATION		(0.02	)		(0.02	)		(0.43	)		(0.07	)
NET EARNINGS PER COMMON SHARE - BASIC	$	0.48		$	0.39		$	1.88		$	2.24

DILUTED EARNINGS FROM CONTINUING OPERATIONS	$	0.50		$	0.40		$	2.28		$	2.28
DISCONTINUED OPERATION		(0.02	)		(0.02	)		(0.43	)		(0.07	)
NET EARNINGS PER COMMON SHARE - DILUTED	$	0.48		$	0.38		$	1.85		$	2.21

WEIGHTED AVERAGE NUMBER OF COMMON SHARES		22,892,645			23,061,533			22,899,516			22,974,690
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES		23,256,486			23,366,587			23,239,925			23,270,067

STANDARD MOTOR PRODUCTS, INC.

Segment Revenues and Operating Income

(In thousands)

	THREE MONTHS ENDED										TWELVE MONTHS ENDED
	DECEMBER 31,										DECEMBER 31,
	2014					2013					2014					2013
	(unaudited)										(unaudited)
Revenues
Engine Management	$	175,875				$	175,747				$	709,263				$	711,245
Temperature Control		39,742					38,309					259,065					262,537
All Other		2,437					4,652					12,064					9,922
	$	218,054				$	218,708				$	980,392				$	983,704

Gross Margin
Engine Management	$	56,001		31.8	%	$	55,546		31.6	%	$	220,145		31.0	%	$	218,294		30.7	%
Temperature Control		7,403		18.6	%		6,326		16.5	%		55,838		21.6	%		58,150		22.1	%
All Other		3,690					4,877					13,647					14,010
	$	67,094		30.8	%	$	66,749		30.5	%	$	289,630		29.5	%	$	290,454		29.5	%

Selling, General & Administrative
Engine Management	$	29,474		16.8	%	$	31,273		17.8	%	$	115,330		16.3	%	$	121,578		17.1	%
Temperature Control		10,817		27.2	%		10,078		26.3	%		49,174		19.0	%		47,845		18.2	%
All Other		7,982					9,092					29,021					31,833
	$	48,273		22.1	%	$	50,443		23.1	%	$	193,525		19.7	%	$	201,256		20.5	%

Operating Income
Engine Management	$	26,527		15.1	%	$	24,273		13.8	%	$	104,815		14.8	%	$	96,716		13.6	%
Temperature Control		(3,414	)	-8.6	%		(3,752	)	-9.8	%		6,664		2.6	%		10,305		3.9	%
All Other		(4,292	)				(4,215	)				(15,374	)				(17,823	)
		18,821		8.6	%		16,306		7.5	%		96,105		9.8	%		89,198		9.1	%
Litigation Charge		-					-					(10,650	)	-1.1	%		-
Restructuring & Integration		(128	)	-0.1	%		(826	)	-0.4	%		(1,197	)	-0.1	%		(3,357	)	-0.3	%
Other Income, Net		279		0.1	%		256		0.1	%		1,080		0.1	%		1,022		0.1	%
	$	18,972		8.7	%	$	15,736		7.2	%	$	85,338		8.7	%	$	86,863		8.8	%

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,
	2014			2013			2014			2013
	(Unaudited)						(Unaudited)
EARNINGS FROM CONTINUING OPERATIONS

GAAP EARNINGS FROM CONTINUING OPERATIONS	$	11,517		$	9,391		$	52,899		$	53,043

LITIGATION CHARGE (NET OF TAX)		-			-			6,390			-
RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)		76			495			718			2,014
REVERSAL OF LT TAX LIABILITY		-			-			(350	)		-
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD		-			-			(361	)		(374	)
GAIN FROM SALE OF BUILDINGS (NET OF TAX)		(157	)		(157	)		(629	)		(629	)

NON-GAAP EARNINGS FROM CONTINUING OPERATIONS	$	11,436		$	9,729		$	58,667		$	54,054

DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS

GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS	$	0.50		$	0.40		$	2.28		$	2.28

LITIGATION CHARGE (NET OF TAX)		-			-			0.28			-
RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)		-			0.02			0.03			0.09
REVERSAL OF LT TAX LIABILITY		-			-			(0.02	)		-
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD		-			-			(0.02	)		(0.02	)
GAIN FROM SALE OF BUILDINGS (NET OF TAX)		(0.01	)		-			(0.03	)		(0.03	)

NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS	$	0.49		$	0.42		$	2.52		$	2.32

OPERATING INCOME

GAAP OPERATING INCOME	$	18,972		$	15,736		$	85,338		$	86,863

LITIGATION CHARGE		-			-			10,650			-
RESTRUCTURING AND INTEGRATION EXPENSES		128			826			1,197			3,357
OTHER INCOME, NET		(279	)		(256	)		(1,080	)		(1,022	)

NON-GAAP OPERATING INCOME	$	18,821		$	16,306		$	96,105		$	89,198

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)

	December 31,		December 31,
	2014		2013
	(Unaudited)

ASSETS

CASH	$	13,728	$	5,559

ACCOUNTS RECEIVABLE, GROSS		132,893		132,170
ALLOWANCE FOR DOUBTFUL ACCOUNTS		6,369		6,969
ACCOUNTS RECEIVABLE, NET		126,524		125,201

INVENTORIES		278,051		269,447
OTHER CURRENT ASSETS		47,730		45,870

TOTAL CURRENT ASSETS		466,033		446,077

PROPERTY, PLANT AND EQUIPMENT, NET		64,611		63,646
GOODWILL AND OTHER INTANGIBLES, NET		89,377		72,866
OTHER ASSETS		53,530		32,934

TOTAL ASSETS	$	673,551	$	615,523

LIABILITIES AND STOCKHOLDERS' EQUITY

NOTES PAYABLE	$	56,558	$	21,406
CURRENT PORTION OF LONG TERM DEBT		175		59
ACCOUNTS PAYABLE		70,674		71,469
ACCRUED CUSTOMER RETURNS		30,621		31,464
OTHER CURRENT LIABILITIES		92,801		95,918

TOTAL CURRENT LIABILITIES		250,829		220,316

LONG-TERM DEBT		83		16
ACCRUED ASBESTOS LIABILITIES		33,462		23,919
OTHER LIABILITIES		15,024		21,840

TOTAL LIABILITIES		299,398		266,091

TOTAL STOCKHOLDERS' EQUITY		374,153		349,432

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	673,551	$	615,523

STANDARD MOTOR PRODUCTS, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

	TWELVE MONTHS ENDED
	DECEMBER 31,
	2014			2013
	(Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES

NET EARNINGS	$	43,029		$	51,450
ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
DEPRECIATION AND AMORTIZATION		17,295			17,595
OTHER		13,148			12,773
CHANGE IN ASSETS AND LIABILITIES:
ACCOUNTS RECEIVABLE		1,755			(27,278	)
INVENTORY		(6,712	)		(6,094	)
ACCOUNTS PAYABLE		(4,329	)		12,497
OTHER		(17,199	)		(3,327	)
NET CASH PROVIDED BY OPERATING ACTIVTIES		46,987			57,616

CASH FLOWS FROM INVESTING ACTIVITIES

CAPITAL EXPENDITURES		(13,904	)		(11,410	)
ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES		(37,726	)		(12,760	)
OTHER INVESTING ACTIVITIES		430			(592	)
NET CASH USED IN INVESTING ACTIVITIES		(51,200	)		(24,762	)

CASH FLOWS FROM FINANCING ACTIVITIES

NET CHANGE IN DEBT		35,334			(19,166	)
PURCHASE OF TREASURY STOCK		(10,000	)		(6,864	)
DIVIDENDS PAID		(11,905	)		(10,107	)
OTHER FINANCING ACTIVITIES		1,887			(3,158	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		15,316			(39,295	)

EFFECT OF EXCHANGE RATE CHANGES ON CASH		(2,934	)		(1,074	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		8,169			(7,515	)
CASH AND CASH EQUIVALENTS at beginning of year		5,559			13,074
CASH AND CASH EQUIVALENTS at end of year	$	13,728		$	5,559

Standard Motor Products (SMP) 8-KFourth Quarter and Year End 2014 Results and a