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 2010 Results
New York, NY, March 3, 2011......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, 2010.
Consolidated net sales for the fourth quarter of 2010 were $173 million, compared to consolidated net sales of $160.1 million during the comparable quarter in 2009. Earnings from continuing operations for the fourth quarter of 2010 were $2.7 million or 12 cents per diluted share, compared to a loss of $5.2 million or 25 cents per diluted share in the fourth quarter of 2009. 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 2010 were $2.6 million or 11 cents, compared to $398 thousand or 2 cents per diluted share in the fourth quarter of 2009.
37-18 Northern Blvd., Long Island City, NY 11101
(718) 392-0200
www.smpcorp.com
Consolidated net sales for 2010 were $810.9 million, compared to consolidated net sales of $735.4 million in 2009. Earnings from continuing operations for 2010 were $24.7 million or $1.09 per diluted share, compared to $5.9 million or 31 cents per diluted share in 2009. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and Non-GAAP measures, earnings from continuing operations for 2010 and 2009 were $24.2 million or $1.07 per diluted share and $13.5 million or 70 cents per diluted share, respectively.
Commenting on the results, Mr. Lawrence I. Sills, Standard Motor Products’ Chairman and Chief Executive Officer, stated, “We are pleased to see that our strong results continued through the fourth quarter. We achieved a sales increase of roughly 8% for the quarter and 10% for the year. Adjusting for the sale of our European distribution business, in November 2009, the sales increases were 11.9% for the quarter and 14.4% for the year.
“As has been well documented, the entire aftermarket has experienced solid growth, aided by an ageing car population and the closing of car dealerships. We also benefited from a hot summer for our Temperature Control business, and growth in the wire business acquired from Federal Mogul.
“Our earnings grew at an even faster rate, with Non-GAAP earnings per share from continuing operations going from 70 cents to $1.07, as a result of the sales increase, plus the benefits of a multi-year effort in cost reduction. A major component of the improvement was a year over year increase in gross margin from 24.1% to 25.6%.
“From a cash flow perspective, we reduced debt by $10 million, from $76 million to $66 million, despite a rise in inventories to support the sales growth. In January we announced an increase in our quarterly dividend, from 5 cents to 7 cents per share.
“In all, we are pleased with 2010 and look forward to 2011.”
Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Thursday, March 3, 2011. The dial in number is 800-895-0231 (domestic) or 785-424-1054 (international). The playback number is 800-283-8520 (domestic) or 402-220-0870 (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, | |
| | | | 2010 | | | | 2009 | | | | 2010 | | | | 2009 | |
| | | | (Unaudited) | | | | (Unaudited) | |
| NET SALES | | $ | 172,971 | | | $ | 160,127 | | | $ | 810,910 | | | $ | 735,424 | |
| | | | | | | | | | | | | | | | | |
| COST OF SALES | | | 127,586 | | | | 120,005 | | | | 603,304 | | | | 558,200 | |
| | | | | | | | | | | | | | | | | |
| GROSS PROFIT | | | 45,385 | | | | 40,122 | | | | 207,606 | | | | 177,224 | |
| | | | | | | | | | | | | | | | | |
| SELLING, GENERAL & ADMINISTRATIVE EXPENSES | | | 38,974 | | | | 37,035 | | | | 159,433 | | | | 146,642 | |
| RESTRUCTURING AND INTEGRATION EXPENSES | | | 72 | | | | 1,709 | | | | 3,502 | | | | 7,386 | |
| OTHER INCOME (EXPENSE), NET | | | 170 | | | | (6,413 | ) | | | 2,122 | | | | (5,565 | ) |
| | | | | | | | | | | | | | | | | |
| OPERATING INCOME (LOSS) | | | 6,509 | | | | (5,035 | ) | | | 46,793 | | | | 17,631 | |
| | | | | | | | | | | | | | | | | |
| OTHER NON-OPERATING INCOME (EXPENSE), NET | | | (55 | ) | | | 122 | | | | 425 | | | | 3,584 | |
| | | | | | | | | | | | | | | | | |
| INTEREST EXPENSE | | | 1,417 | | | | 1,990 | | | | 7,127 | | | | 9,215 | |
| | | | | | | | | | | | | | | | | |
| EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES | | | 5,037 | | | | (6,903 | ) | | | 40,091 | | | | 12,000 | |
| | | | | | | | | | | | | | | | | |
| PROVISION FOR (BENEFIT FROM) INCOME TAXES | | | 2,362 | | | | (1,660 | ) | | | 15,391 | | | | 6,094 | |
| | | | | | | | | | | | | | | | | |
| EARNINGS (LOSS) FROM CONTINUING OPERATIONS | | | 2,675 | | | | (5,243 | ) | | | 24,700 | | | | 5,906 | |
| | | | | | | | | | | | | | | | | |
| DISCONTINUED OPERATION, NET OF INCOME TAXES | | | (431 | ) | | | (202 | ) | | | (2,740 | ) | | | (2,423 | ) |
| | | | | | | | | | | | | | | | | |
| NET EARNINGS (LOSS) | | $ | 2,244 | | | $ | (5,445 | ) | | $ | 21,960 | | | $ | 3,483 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| NET EARNINGS (LOSS) PER COMMON SHARE: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| BASIC EARNINGS (LOSS) FROM CONTINUING OPERATIONS | | $ | 0.12 | | | $ | (0.25 | ) | | $ | 1.10 | | | $ | 0.31 | |
| DISCONTINUED OPERATION | | | (0.02 | ) | | | (0.01 | ) | | | (0.13 | ) | | | (0.13 | ) |
| NET EARNINGS (LOSS) PER COMMON SHARE - BASIC | | $ | 0.10 | | | $ | (0.26 | ) | | $ | 0.97 | | | $ | 0.18 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| DILUTED EARNINGS (LOSS) FROM CONTINUING OPERATIONS | | $ | 0.12 | | | $ | (0.25 | ) | | $ | 1.09 | | | $ | 0.31 | |
| DISCONTINUED OPERATION | | | (0.02 | ) | | | (0.01 | ) | | | (0.12 | ) | | | (0.13 | ) |
| NET EARNINGS (LOSS) PER COMMON SHARE - DILUTED | | $ | 0.10 | | | $ | (0.26 | ) | | $ | 0.97 | | | $ | 0.18 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES | | | 22,642,171 | | | | 21,034,701 | | | | 22,556,858 | | | | 19,340,672 | |
| WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES | | | 22,741,686 | | | | 21,109,573 | | | | 22,634,062 | | | | 19,388,771 | |
| 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, | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | (Unaudited) | | | (Unaudited) | |
| EARNINGS (LOSS) FROM CONTINUING OPERATIONS | | | | | | | | | | | | |
| GAAP EARNINGS (LOSS) FROM CONTINUING OPERATIONS | | $ | 2,675 | | | $ | (5,243 | ) | | | 24,700 | | | | 5,906 | |
| | | | | | | | | | | | | | | | | |
| RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX) | | | 43 | | | | 1,026 | | | | 2,101 | | | | 4,897 | |
| LOSS FROM EUROPE DIVESTITURE (NET OF TAX) | | | - | | | | 4,772 | | | | 47 | | | | 4,772 | |
| GAIN FROM SALE OF PREFERRED STOCK INVESTMENT (NET OF TAX) | | | - | | | | - | | | | - | | | | (1,402 | ) |
| REVERSAL OF LT TAX LIABILITY | | | - | | | | - | | | | (1,084 | ) | | | - | |
| GAIN FROM SALE OF BUILDINGS (NET OF TAX) | | | (157 | ) | | | (157 | ) | | | (1,588 | ) | | | (629 | ) |
| GAIN FROM DEBENTURE REPURCHASE (NET OF TAX) | | | - | | | | - | | | | - | | | | (24 | ) |
| NON-GAAP EARNINGS FROM CONTINUING OPERATIONS | | $ | 2,561 | | | $ | 398 | | | $ | 24,176 | | | $ | 13,520 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| DILUTED EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS | | | | | | | | | | | | | | | | |
| GAAP DILUTED EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS | | | 0.12 | | | $ | (0.25 | ) | | | 1.09 | | | $ | 0.31 | |
| RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX) | | | - | | | | 0.05 | | | | 0.09 | | | | 0.25 | |
| LOSS FROM EUROPE DIVESTITURE (NET OF TAX) | | | - | | | | 0.23 | | | | - | | | | 0.24 | |
| GAIN FROM SALE OF PREFERRED STOCK INVESTMENT (NET OF TAX) | | | - | | | | - | | | | - | | | | (0.07 | ) |
| REVERSAL OF LT TAX LIABILITY | | | - | | | | - | | | | (0.04 | ) | | | - | |
| GAIN FROM SALE OF BUILDINGS (NET OF TAX) | | | (0.01 | ) | | | (0.01 | ) | | | (0.07 | ) | | | (0.03 | ) |
| GAIN FROM DEBENTURE REPURCHASE (NET OF TAX) | | | - | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | |
| NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS | | | 0.11 | | | $ | 0.02 | | | | 1.07 | | | $ | 0.70 | |
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, | |
| | | 2010 | | | 2009 | |
| | | (Unaudited) | |
| | | | | | | |
| ASSETS | | | | | | |
| | | | | | | |
| CASH | | $ | 12,135 | | | $ | 10,618 | |
| | | | | | | | | |
| ACCOUNTS RECEIVABLE, GROSS | | | 111,765 | | | | 131,785 | |
| ALLOWANCES FOR DISCOUNTS AND DOUBTFUL ACCOUNTS | | | 6,779 | | | | 6,962 | |
| ACCOUNTS RECEIVABLE, NET | | | 104,986 | | | | 124,823 | |
| | | | | | | | | |
| INVENTORIES | | | 241,158 | | | | 199,752 | |
| ASSETS HELD FOR SALE | | | 216 | | | | 1,405 | |
| OTHER CURRENT ASSETS | | | 26,211 | | | | 27,616 | |
| | | | | | | | | |
| TOTAL CURRENT ASSETS | | | 384,706 | | | | 364,214 | |
| | | | | | | | | |
| PROPERTY, PLANT AND EQUIPMENT, NET | | | 60,666 | | | | 61,478 | |
| GOODWILL AND OTHER INTANGIBLES, NET | | | 12,487 | | | | 13,805 | |
| OTHER ASSETS | | | 34,942 | | | | 44,962 | |
| | | | | | | | | |
| TOTAL ASSETS | | $ | 492,801 | | | $ | 484,459 | |
| | | | | | | | | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| NOTES PAYABLE | | $ | 52,887 | | | $ | 58,430 | |
| CURRENT PORTION OF LONG TERM DEBT | | | 12,402 | | | | 67 | |
| ACCOUNTS PAYABLE | | | 49,919 | | | | 54,381 | |
| ACCRUED CUSTOMER RETURNS | | | 23,207 | | | | 20,442 | |
| OTHER CURRENT LIABILITIES | | | 76,416 | | | | 71,303 | |
| | | | | | | | | |
| TOTAL CURRENT LIABILITIES | | | 214,831 | | | | 204,623 | |
| | | | | | | | | |
| LONG-TERM DEBT | | | 307 | | | | 12,569 | |
| DEBT TO RELATED PARTIES | | | - | | | | 5,339 | |
| ACCRUED ASBESTOS LIABILITIES | | | 24,792 | | | | 24,874 | |
| OTHER LIABILITIES | | | 42,988 | | | | 43,176 | |
| | | | | | | | | |
| TOTAL LIABILITIES | | | 282,918 | | | | 290,581 | |
| | | | | | | | | |
| TOTAL STOCKHOLDERS' EQUITY | | | 209,883 | | | | 193,878 | |
| | | | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 492,801 | | | $ | 484,459 | |
| STANDARD MOTOR PRODUCTS, INC. |
| Segment Revenues and Operating Profit |
| | |
| | |
| (In thousands) | |
| | |
| | | THREE MONTHS ENDED | | | | | | TWELVE MONTHS ENDED | | | | |
| | | DECEMBER 31, | | | | | | DECEMBER 31, | | | | |
| | | 2010 | | | | | | 2009 | | | | | | 2010 | | | | | | 2009 | | | | |
| | | (unaudited) | | | | | | (unaudited) | | | | |
| Revenues | | | | | | | | | | | | | | | | | | | | | | | | |
| Engine Management | | $ | 133,844 | | | | | | $ | 122,165 | | | | | | $ | 577,333 | | | | | | $ | 506,435 | | | | |
| Temperature Control | | | 36,372 | | | | | | | 31,303 | | | | | | | 222,086 | | | | | | | 196,729 | | | | |
| Europe | | | - | | | | | | | 5,487 | | | | | | | - | | | | | | | 26,746 | | | | |
| All Other | | | 2,755 | | | | | | | 1,172 | | | | | | | 11,491 | | | | | | | 5,514 | | | | |
| | | $ | 172,971 | | | | | | $ | 160,127 | | | | | | $ | 810,910 | | | | | | $ | 735,424 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Gross Margin | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Engine Management | | $ | 33,683 | | | | 25.2 | % | | $ | 28,466 | | | | 23.3 | % | | $ | 144,090 | | | | 25.0 | % | | $ | 122,838 | | | | 24.3 | % |
| Temperature Control | | | 8,176 | | | | 22.5 | % | | | 7,912 | | | | 25.3 | % | | | 51,293 | | | | 23.1 | % | | | 38,677 | | | | 19.7 | % |
| Europe | | | - | | | | | | | | 1,496 | | | | 27.3 | % | | | - | | | | | | | | 6,997 | | | | 26.2 | % |
| All Other | | | 3,526 | | | | | | | | 2,248 | | | | | | | | 12,223 | | | | | | | | 8,712 | | | | | |
| | | $ | 45,385 | | | | 26.2 | % | | $ | 40,122 | | | | 25.1 | % | | $ | 207,606 | | | | 25.6 | % | | $ | 177,224 | | | | 24.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Selling, General & Administrative | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Engine Management | | $ | 24,808 | | | | 18.5 | % | | $ | 23,817 | | | | 19.3 | % | | $ | 99,713 | | | | 17.3 | % | | $ | 90,543 | | | | 17.8 | % |
| Temperature Control | | | 7,916 | | | | 21.8 | % | | | 6,976 | | | | 22.3 | % | | | 36,625 | | | | 16.5 | % | | | 31,014 | | | | 15.8 | % |
| Europe | | | - | | | | | | | | 1,121 | | | | 20.4 | % | | | - | | | | | | | | 6,187 | | | | 23.1 | % |
| All Other | | | 6,250 | | | | | | | | 5,121 | | | | | | | | 23,095 | | | | | | | | 18,898 | | | | | |
| | | $ | 38,974 | | | | 22.5 | % | | $ | 37,035 | | | | 23.1 | % | | $ | 159,433 | | | | 19.7 | % | | $ | 146,642 | | | | 19.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating Profit | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Engine Management | | $ | 8,875 | | | | 6.6 | % | | $ | 4,649 | | | | 3.8 | % | | $ | 44,377 | | | | 7.7 | % | | $ | 32,295 | | | | 6.4 | % |
| Temperature Control | | | 260 | | | | 0.7 | % | | | 936 | | | | 3.0 | % | | | 14,668 | | | | 6.6 | % | | | 7,663 | | | | 3.9 | % |
| Europe | | | - | | | | | | | | 375 | | | | 6.8 | % | | | - | | | | | | | | 810 | | | | 3.0 | % |
| All Other | | | (2,724 | ) | | | | | | | (2,873 | ) | | | | | | | (10,872 | ) | | | | | | | (10,186 | ) | | | | |
| | | | 6,411 | | | | 3.7 | % | | | 3,087 | | | | 1.9 | % | | | 48,173 | | | | 5.9 | % | | | 30,582 | | | | 4.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Restructuring & Integration | | | (72 | ) | | | 0.0 | % | | | (1,709 | ) | | | -1.1 | % | | | (3,502 | ) | | | -0.4 | % | | | (7,386 | ) | | | -1.0 | % |
| Other Income (Expense), Net | | | 170 | | | | 0.1 | % | | | (6,413 | ) | | | -4.0 | % | | | 2,122 | | | | 0.3 | % | | | (5,565 | ) | | | -0.8 | % |
| | | $ | 6,509 | | | | 3.8 | % | | $ | (5,035 | ) | | | -3.1 | % | | $ | 46,793 | | | | 5.8 | % | | $ | 17,631 | | | | 2.4 | % |
