EXHIBIT 99.1 - PRESS RELEASE
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For: Standard Motor Products, Inc.
From: Golin/Harris International
Marlene Wechselblatt
212-697-9191
Standard Motor Products, Inc. Contact:
James J. Burke, Chief Financial Officer
718-392-0200
STANDARD MOTOR PRODUCTS, INC. ANNOUNCES
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THIRD QUARTER 2003 EARNINGS AND A QUARTERLY DIVIDEND
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New York, NY, October 30, 2003......Standard Motor Products, Inc. (NYSE:SMP), an
automotive replacement parts manufacturer and distributor, reported consolidated
net sales for the third quarter of 2003, the three months ended September 30,
2003, of $214.5 million, compared to consolidated net sales of $183.6 million
during the comparable quarter in 2002. Earnings from continuing operations for
the third quarter of 2003 were $2.0 million or 11 cents per diluted share,
compared to $9.8 million or 72 cents per diluted share, in the third quarter of
2002.
Consolidated net sales for the nine month period ended September 30, 2003 were
$516.3 million, compared to consolidated net sales of $490.6 million during the
comparable period in 2002. Earnings from continuing operations for the nine
month period ended September 30, 2003 were $5.7 million, or 39 cents per diluted
share, compared to $14.2 million, or $1.14 per diluted share, for the comparable
period in 2002.
Mr. James Burke, Standard Motor Products' Chief Financial Officer, said, "The
consolidated statement of operations reflects the previously announced
acquisition of Dana Corporation's Engine Management Division (DEM), effective as
of June 30, 2003. Net sales for the quarter ended September 30, 2003 for DEM
were $58.3 million."
Commenting on the results, Mr. Lawrence Sills, Standard Motor Products' Chief
Executive Officer, said, "Net sales in the third quarter, excluding the addition
of DEM volume, were down $7.9 million in our Engine Management division and down
$20.8 million in Temperature Control.
"For the year, Temperature Control net sales are down $34.3 million or 15.2%,
the result of the loss of AutoZone's business and one of the coolest summers on
record. In Engine Management, net sales excluding DEM are down 1.6% for the
year. Due to the DEM acquisition, we did not implement our usual 2-3% annual
price increase, and this slight decline in Engine Management's units is in line
with all our forecasts."
Mr. Sills added, "We continue to make good improvements in gross margin despite
the reduction in net sales and the lack of an Engine Management price increase.
The third quarter gross margin, excluding DEM, improved 0.5 points and the
year-to-date increased 0.4 points versus the comparable periods in the prior
year."
Regarding the integration of DEM, Mr. Sills stated, "We are extremely pleased
with how the integration is progressing. We are proceeding on schedule with
plans to close 7 of the 9 DEM facilities in the near future. We are comfortable
with our original estimates to complete the integration before the end of 2004;
$30-35 million for restructuring and integration costs over this period; and $55
million in annual savings by 2005."
Finally, we have recently re-examined the provisions of our revolving credit
facility. Based on a possible interpretation of the applicable accounting rules,
we may be required to reclassify our credit facility from long-term to
short-term debt, from 2001 forward, though the existing credit facility does not
mature until 2008. The issue is not yet fully resolved and at present, we are
continuing to classify those borrowings as long-term debt. In any event, we
remain in compliance with all of our debt covenants, and we believe that any
reclassification of our revolving credit facility to short-term debt will have
no effect on our liquidity, cash flows, debt amortization, profits or other
terms within any of our debt facilities.
The Board of Directors has approved payment of a quarterly dividend of nine
cents per share on the common stock outstanding. The dividend will be paid on
December 1, 2003 to stockholders of record on November 14, 2003.
Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern
Time, on Friday, October 31, 2003. The dial in number is 800-362-0574 and the ID
number is J451. The playback number is 888-567-0675 (toll free) and the
international number is 402-530-0417.
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, AND 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
(Dollars in thousands, except per share amounts)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2003 2002 2003 2002
---- ---- ---- ----
NET SALES $ 214,479 $ 183,631 $ 516,329 $ 490,581
COST OF SALES 156,191 132,680 379,682 361,560
------------ ------------ ------------ ------------
GROSS PROFIT 58,288 50,951 136,647 129,021
SELLING, GENERAL & ADMINISTRATIVE EXPENSES 50,072 33,859 115,563 99,441
------------ ------------ ------------ ------------
OPERATING INCOME 8,216 17,092 21,084 29,580
OTHER INCOME (EXPENSE), NET (685) 969 (1,088) 1,725
INTEREST EXPENSE 4,070 3,606 10,276 10,877
------------ ------------ ------------ ------------
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES 3,461 14,455 9,720 20,428
INCOME TAX EXPENSE 1,419 4,623 3,985 6,250
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EARNINGS FROM CONTINUING OPERATIONS 2,042 9,832 5,735 14,178
LOSS FROM DISCONTINUED OPERATION, NET OF TAX (591) (16,918) (1,372) (18,043)
------------ ------------ ------------ ------------
EARNINGS (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 1,451 (7,086) 4,363 (3,865)
CUMULATIVE EFFECT OF ACCOUNTING CHANGE, NET OF TAX -- -- -- (18,350)
------------ ------------ ------------ ------------
NET EARNINGS (LOSS) $ 1,451 $ (7,086) $ 4,363 $ (22,215)
============ ============ ============ ============
NET EARNING (LOSS) PER COMMON SHARE:
BASIC EARNINGS (LOSS) FROM CONTINUING OPERATIONS $ 0.11 $ 0.82 $ 0.39 $ 1.19
DISCONTINUED OPERATION (0.03) (1.41) (0.09) (1.52)
CUMULATIVE EFFECT OF ACCOUNTING CHANGE -- -- -- (1.54)
------------ ------------ ------------ ------------
NET EARNINGS (LOSS) PER COMMON SHARE - BASIC $ 0.08 $ (0.59) $ 0.30 $ (1.87)
============ ============ ============ ============
DILUTED EARNINGS (LOSS) FROM CONTINUING OPERATIONS $ 0.11 $ 0.72 $ 0.39 $ 1.14
DISCONTINUED OPERATION (0.03) (1.14) (0.09) (1.22)
CUMULATIVE EFFECT OF ACCOUNTING CHANGE -- -- -- (1.24)
------------ ------------ ------------ ------------
NET EARNINGS (LOSS) PER COMMON SHARE - DILUTED $ 0.08 $ (0.42) $ 0.30 $ (1.32)
============ ============ ============ ============
WEIGHTED AVERAGE NUMBER OF COMMON SHARES 19,194,121 11,954,928 14,580,042 11,900,800
WEIGHTED AVERAGE NUMBER OF COMMON SHARES AND DILUTIVE SHARES 19,218,855 14,859,401 14,634,466 14,805,121
STANDARD MOTOR PRODUCTS
CONDENSED CONSOLIDATING BALANCE SHEETS
(Dollars in thousands)
ASSETS
September 30, December 31,
2003 2002
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Cash $ 16,967 $ 9,690
Marketable securities - 7,200
Accounts receivable, gross 243,152 122,526
Allowance for doubtful accounts 8,661 4,882
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Accounts receivable, net 234,491 117,644
Inventories 252,065 174,785
Other current assets 20,853 19,041
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Total current assets 524,376 328,360
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Property, plant and equipment, net 114,704 103,822
Goodwill 79,867 16,683
Other assets 40,993 41,893
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Total assets $ 759,940 $ 490,758
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LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable $ 3,304 $ 3,369
Current portion of long term debt 3,854 4,108
Accounts payable trade 65,598 35,744
Accrued customer returns 41,187 16,341
Other current liabilities 100,278 51,866
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Total current liabilities 214,221 111,428
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Long-term debt 234,900 169,440
Accrued asbestos liabilities 24,939 25,595
Postretirement & other liabilities 54,510 30,414
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Total liabilities 528,570 336,877
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Total stockholders' equity 231,370 153,881
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Total liabilities and stockholders' equity $ 759,940 $ 490,758
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