Standard Motor Products (SMP) 8-K Third Quarter 2015 Results, a Quarterly Dividend

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

Third Quarter 2015 Results, a Quarterly Dividend

and a New Revolving Credit Facility

New York, NY, October 29, 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 nine months ended September 30, 2015.

Consolidated net sales for the third quarter of 2015 were $270 million, compared to consolidated net sales of $257 million during the comparable quarter in 2014.  Earnings from continuing operations for the third quarter of 2015 were $19.2 million or 83 cents per diluted share, compared to $17.8 million or 77 cents per diluted share in the third quarter of 2014. 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 2015 were $18.4 million or 80 cents per diluted share, compared to $17.1 million or 74 cents per diluted share in the third quarter of 2014.

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, 2015 were $767 million, compared to consolidated net sales of $762.3 million during the comparable period in 2014.  Earnings from continuing operations for the nine month period ended September 30, 2015 were $42.3 million or $1.82 per diluted share, compared to $41.4 million or $1.79 per diluted share in the comparable period of 2014.  The nine month period ended September 30, 2014 included a one-time, non-recurring litigation charge. Excluding the litigation charge and other non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, after tax earnings from continuing operations for the nine months ended September 30, 2015 and 2014 were $41.3 million or $1.78 per diluted share and $47.2 million or $2.04 per diluted share, respectively.

Commenting on the results, Mr. Lawrence I. Sills, Standard Motor Products’ Chairman and Chief Executive Officer, stated, “We are pleased with our third quarter results. Net sales exceeded the third quarter of 2014 by 5.1% and we are now slightly ahead of 2014 for the nine month period.

“Engine Management net sales were up 3.8% for the quarter, but remain slightly behind 2014 year to date, primarily due to unfavorable foreign exchange rates and the one-time return for inspection of diesel fuel injectors, which occurred earlier in the year. Our customers continue to report, on average, sales increases in the low to mid-single digit range on Engine Management, in line with our expectations.

“Temperature Control benefited from the first warm summer in three years. Net sales were 10.3% ahead of 2014 for the quarter and are now ahead 4.2% for the year. Our customers are reporting somewhat larger sales increases than this, as they work down inventories carried over from the prior weak seasons. We anticipate that this will be a benefit to us heading into 2016.

“Non-GAAP operating income was ahead 4.3% for the quarter, but we remain roughly $12 million behind 2014 for nine months. The majority of this shortfall—approximately $9-10 million and disclosed in prior releases—consists of the carry forward of 2014 unfavorable manufacturing variances in Temperature Control; the cost of upgrading and enhancing our line of diesel fuel injectors; and an unfavorable non-cash change in prior service costs related to elimination of our postretirement medical program in 2016. Except for the unfavorable postretirement medical change, these costs are fully behind us.”

Mr. Sills, however, noted a word of caution regarding fourth quarter comparisons. “Our fourth quarter of 2014 benefited from two fairly large pipeline orders for Engine Management which are unlikely to be repeated this year. Thus, fourth quarter sales comparisons will be challenging. These events, which occur from time to time, can create quarter by quarter distortions and are not indicative of long term results.

“Finally, we are pleased to announce that we have entered into a new revolving credit facility with J.P. Morgan Chase Bank N.A., acting as agent for a syndicate of lenders. This new credit facility replaces our prior credit agreement with General Electric Capital Corporation. The new credit facility provides for a $250 million line of credit, allows us to lower our borrowing costs, and extends the maturity of our line of credit to October 2020. We believe that the new credit facility will provide us with greater flexibility to execute our strategic plans, which will be beneficial to our shareholders. We look forward to working with JPMorgan Chase, as well as all of our other bank partners.”

The Board of Directors has approved payment of a quarterly dividend of fifteen cents per share on the common stock outstanding. The dividend will be paid on December 1, 2015 to stockholders of record on November 16, 2015.

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Thursday, October 29, 2015.  The dial in number is 800-862-9098 (domestic) or 785-424-1051 (international). The playback number is 800-839-3613 (domestic) or 402-220-2973 (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						NINE MONTHS ENDED
	SEPTEMBER 30,						SEPTEMBER 30,
	2015			2014			2015			2014
	(Unaudited)						(Unaudited)
NET SALES	$	270,037		$	257,046		$	767,008		$	762,338
COST OF SALES		188,484			179,819			548,806			539,802
GROSS PROFIT		81,553			77,227			218,202			222,536
SELLING, GENERAL & ADMINISTRATIVE EXPENSES		51,907			48,811			152,841			145,252
LITIGATION CHARGE		-			-			-			10,650
RESTRUCTURING AND INTEGRATION EXPENSES		(80	)		343			(49	)		1,069
OTHER INCOME , NET		231			268			774			801
OPERATING INCOME		29,957			28,341			66,184			66,366
OTHER NON-OPERATING INCOME (EXPENSE), NET		(535	)		(955	)		164			(1,061	)
INTEREST EXPENSE		332			440			1,238			1,205
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES		29,090			26,946			65,110			64,100
PROVISION FOR INCOME TAXES		9,896			9,140			22,769			22,718
EARNINGS FROM CONTINUING OPERATIONS		19,194			17,806			42,341			41,382
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES		(728	)		(8,240	)		(1,549	)		(9,451	)
NET EARNINGS	$	18,466		$	9,566		$	40,792		$	31,931
NET EARNINGS PER COMMON SHARE:
BASIC EARNINGS FROM CONTINUING OPERATIONS	$	0.84		$	0.78		$	1.85		$	1.81
DISCONTINUED OPERATION		(0.03	)		(0.36	)		(0.07	)		(0.42	)
NET EARNINGS PER COMMON SHARE - BASIC	$	0.81		$	0.42		$	1.78		$	1.39
DILUTED EARNINGS FROM CONTINUING OPERATIONS	$	0.83		$	0.77		$	1.82		$	1.79
DISCONTINUED OPERATION		(0.03	)		(0.36	)		(0.06	)		(0.41	)
NET EARNINGS PER COMMON SHARE - DILUTED	$	0.80		$	0.41		$	1.76		$	1.38
WEIGHTED AVERAGE NUMBER OF COMMON SHARES		22,770,865			22,884,939			22,865,978			22,901,832
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES		23,133,869			23,169,173			23,220,381			23,180,842

STANDARD MOTOR PRODUCTS, INC.

Segment Revenues and Operating Income

(In thousands)

	THREE MONTHS ENDED										NINE MONTHS ENDED
	SEPTEMBER 30,										SEPTEMBER 30,
	2015					2014					2015					2014
	(unaudited)										(unaudited)
Revenues
Engine Management	$	176,379				$	169,913				$	530,442				$	533,388
Temperature Control		90,625					82,178					228,432					219,323
All Other		3,033					4,955					8,134					9,627
	$	270,037				$	257,046				$	767,008				$	762,338
Gross Margin
Engine Management	$	55,258		31.3	%	$	54,890		32.3	%	$	159,227		30.0	%	$	164,144		30.8	%
Temperature Control		23,308		25.7	%		18,251		22.2	%		50,438		22.1	%		48,435		22.1	%
All Other		2,987					4,086					8,537					9,957
	$	81,553		30.2	%	$	77,227		30.0	%	$	218,202		28.4	%	$	222,536		29.2	%
Selling, General & Administrative
Engine Management	$	30,609		17.4	%	$	28,758		16.9	%	$	91,055		17.2	%	$	85,856		16.1	%
Temperature Control		14,293		15.8	%		13,825		16.8	%		39,621		17.3	%		38,357		17.5	%
All Other		7,005					6,228					22,165					21,039
	$	51,907		19.2	%	$	48,811		19.0	%	$	152,841		19.9	%	$	145,252		19.1	%
Operating Income
Engine Management	$	24,649		14.0	%	$	26,132		15.4	%	$	68,172		12.9	%	$	78,288		14.7	%
Temperature Control		9,015		9.9	%		4,426		5.4	%		10,817		4.7	%		10,078		4.6	%
All Other		(4,018	)				(2,142	)				(13,628	)				(11,082	)
		29,646		11.0	%		28,416		11.1	%		65,361		8.5	%		77,284		10.1	%
Litigation Charge		-		0.0	%		-		0.0	%		-		0.0	%		(10,650	)	-1.4	%
Restructuring & Integration		80		0.0	%		(343	)	-0.1	%		49		0.0	%		(1,069	)	-0.1	%
Other Income, Net		231		0.1	%		268		0.1	%		774		0.1	%		801		0.1	%
	$	29,957		11.1	%	$	28,341		11.0	%	$	66,184		8.6	%	$	66,366		8.7	%

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,
	2015			2014			2015			2014
	(Unaudited)						(Unaudited)
EARNINGS FROM CONTINUING OPERATIONS
GAAP EARNINGS FROM CONTINUING OPERATIONS	$	19,194		$	17,806		$	42,341		$	41,382
LITIGATION CHARGE (NET OF TAX)		-			-			-			6,390
RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)		(48	)		206			(30	)		642
REVERSAL OF LT TAX LIABILITY		-			(350	)		-			(350	)
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD		(571	)		(361	)		(571	)		(361	)
GAIN FROM SALE OF BUILDINGS (NET OF TAX)		(157	)		(157	)		(472	)		(472	)
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS	$	18,418		$	17,144		$	41,268		$	47,231
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS	$	0.83		$	0.77		$	1.82		$	1.79
LITIGATION CHARGE (NET OF TAX)		-			-			-			0.28
RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)		-			0.01			-			0.03
REVERSAL OF LT TAX LIABILITY		-			(0.01	)		-			(0.02	)
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD		(0.02	)		(0.02	)		(0.02	)		(0.02	)
GAIN FROM SALE OF BUILDINGS (NET OF TAX)		(0.01	)		(0.01	)		(0.02	)		(0.02	)
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS	$	0.80		$	0.74		$	1.78		$	2.04
OPERATING INCOME
GAAP OPERATING INCOME	$	29,957		$	28,341		$	66,184		$	66,366
LITIGATION CHARGE		-			-			-			10,650
RESTRUCTURING AND INTEGRATION EXPENSES		(80	)		343			(49	)		1,069
OTHER INCOME , NET		(231	)		(268	)		(774	)		(801	)
NON-GAAP OPERATING INCOME	$	29,646		$	28,416		$	65,361		$	77,284

MANAGEMENT BELIEVES THAT EARNINGS FROM CONTINUING OPERATIONS, DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS, AND OPERATING INCOME, EACH OF WHICH ARE NON-GAAP MEASUREMENTS AND ARE ADJUSTED FOR SPECIAL ITEMS, 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,
	2015		2014
	(Unaudited)
ASSETS
CASH	$	13,359	$	13,728
ACCOUNTS RECEIVABLE, GROSS		156,470		132,893
ALLOWANCE FOR DOUBTFUL ACCOUNTS		6,291		6,369
ACCOUNTS RECEIVABLE, NET		150,179		126,524
INVENTORIES		270,131		278,051
OTHER CURRENT ASSETS		45,607		47,730
TOTAL CURRENT ASSETS		479,276		466,033
PROPERTY, PLANT AND EQUIPMENT, NET		69,102		64,611
GOODWILL AND OTHER INTANGIBLES, NET		85,542		89,377
OTHER ASSETS		51,627		53,530
TOTAL ASSETS	$	685,547	$	673,551
LIABILITIES AND STOCKHOLDERS' EQUITY
NOTES PAYABLE	$	24,502	$	56,558
CURRENT PORTION OF LONG TERM DEBT		16		175
ACCOUNTS PAYABLE		78,413		70,674
ACCRUED CUSTOMER RETURNS		44,186		30,621
OTHER CURRENT LIABILITIES		99,619		92,801
TOTAL CURRENT LIABILITIES		246,736		250,829
LONG-TERM DEBT		65		83
ACCRUED ASBESTOS LIABILITIES		32,782		33,462
OTHER LIABILITIES		13,606		15,024
TOTAL LIABILITIES		293,189		299,398
TOTAL STOCKHOLDERS' EQUITY		392,358		374,153
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	685,547	$	673,551

STANDARD MOTOR PRODUCTS, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

	NINE MONTHS ENDED
	SEPTEMBER 30,
	2015			2014
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
NET EARNINGS	$	40,792		$	31,931
ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
DEPRECIATION AND AMORTIZATION		13,042			12,889
OTHER		7,945			9,188
CHANGE IN ASSETS AND LIABILITIES:
ACCOUNTS RECEIVABLE		(25,094	)		(17,467	)
INVENTORY		4,761			(3,511	)
ACCOUNTS PAYABLE		8,383			(3,425	)
OTHER		23,003			3,078
NET CASH PROVIDED BY OPERATING ACTIVTIES		72,832			32,683
CASH FLOWS FROM INVESTING ACTIVITIES
ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES		-			(37,726	)
CAPITAL EXPENDITURES		(14,612	)		(9,340	)
OTHER INVESTING ACTIVITIES		32			21
NET CASH USED IN INVESTING ACTIVITIES		(14,580	)		(47,045	)
CASH FLOWS FROM FINANCING ACTIVITIES
NET CHANGE IN DEBT		(32,227	)		37,790
PURCHASE OF TREASURY STOCK		(15,519	)		(9,487	)
DIVIDENDS PAID		(10,299	)		(8,929	)
OTHER FINANCING ACTIVITIES		131			1,947
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		(57,914	)		21,321
EFFECT OF EXCHANGE RATE CHANGES ON CASH		(707	)		(1,933	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(369	)		5,026
CASH AND CASH EQUIVALENTS at beginning of Period		13,728			5,559
CASH AND CASH EQUIVALENTS at end of Period	$	13,359		$	10,585