[LETTERHEAD, STANDARD MOTOR PRODUCTS]
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
FIRST QUARTER 2005 RESULTS AND A QUARTERLY DIVIDEND
New York, NY, May 10, 2005......Standard Motor Products, Inc. (NYSE: SMP), an
automotive replacement parts manufacturer and distributor, reported today its
consolidated financial results for the three months ended March 31, 2005.
Consolidated net sales for the first quarter of 2005 were $207.3 million,
compared to consolidated net sales of $204.8 million during the comparable
quarter in 2004. Earnings from continuing operations for the first quarter of
2005 were $1.1 million or 5 cents per diluted share, compared to losses from
continuing operations of $545,000 or 3 cents per diluted share in the first
quarter of 2004.
First quarter 2005 consolidated net sales increased slightly. Consolidated gross
margins were 23.4% in the first quarter of 2005 compared to 24.9% in the first
quarter of 2004, reflecting a 1.5 percentage point decrease. Offsetting the
gross margin decline was a 2.8 percentage point reduction in selling, general
and administrative (SG&A) expenses. The net result was that operating income
increased $3.6 million in the first quarter of 2005 as compared to the
comparable period in the prior year.
Commenting on the results, Mr. Lawrence Sills, Standard Motor Products' Chairman
and Chief Executive Officer, said, "While we are starting to see the benefits of
the Dana Engine Management (DEM) integration, we are not yet achieving the
targets that we have set for ourselves. Despite only a slight increase in sales,
we have made substantial reductions in SG&A. The $5 million quarterly SG&A
improvement from the first quarter of 2004 was primarily a result of the
synergies from the DEM integration."
Mr. Sills added, "We have not yet achieved similar improvements in gross margin.
We are still working off the high cost DEM inventory, and because we have added
so many new people, we are running below pre-acquisition efficiency levels.
However, our efficiencies are improving continuously; we have announced price
increases for the second half of the year, which have been accepted by our
customers; and we have begun placing orders for material components which will
result in additional cost savings. We remain optimistic about hitting all of our
planned goals."
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
June 1, 2005 to stockholders of record on May 16, 2005.
Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern
Time, on Tuesday, May 10, 2005. The dial in number is 800-362-0571. The playback
number is 800-839-0861 (domestic) or 402-220-0661 (international), and the 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
CONDENSED CONSOLIDATING BALANCE SHEETS
(Dollars in thousands)
ASSETS
March 31, December 31,
2005 2004
------------ ------------
Cash $ 8,795 $ 14,934
Accounts receivable, gross 208,575 160,706
Allowance for doubtful accounts 9,732 9,354
------------ ------------
Accounts receivable, net 198,843 151,352
Inventories 264,571 258,641
Other current assets 24,642 22,289
------------ ------------
Total current assets 496,851 447,216
------------ ------------
Property, plant and equipment, net 95,256 97,425
Goodwill and other intangibles 69,475 69,911
Other assets 41,743 42,017
------------ ------------
Total assets $ 703,325 $ 656,569
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable $ 146,439 $ 109,416
Current portion of long term debt 534 534
Accounts payable trade 69,809 46,487
Accrued customer returns 22,607 23,127
Restructuring accrual 5,767 6,999
Other current liabilities 53,514 65,893
------------ ------------
Total current liabilities 298,670 252,456
------------ ------------
Long-term debt 114,101 114,236
Accrued asbestos liabilities 25,985 26,060
Postretirement & other liabilities 45,888 44,111
Restructuring accrual 11,301 12,394
------------ ------------
Total liabilities 495,945 449,257
------------ ------------
Total stockholders' equity 207,380 207,312
------------ ------------
Total liabilities and stockholders' equity $ 703,325 $ 656,569
============ ============
STANDARD MOTOR PRODUCTS, INC.
Consolidated Statements of Operations
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED
MARCH 31,
2005 2004
------------ ------------
NET SALES $ 207,326 $ 204,781
COST OF SALES 158,891 153,821
------------ ------------
GROSS PROFIT 48,435 50,960
SELLING, GENERAL & ADMINISTRATIVE EXPENSES 42,076 47,328
RESTRUCTURING EXPENSES 524 1,367
------------ ------------
OPERATING INCOME 5,835 2,265
OTHER INCOME (EXPENSE), NET (215) 243
INTEREST EXPENSE 3,775 3,234
------------ ------------
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES 1,845 (726)
INCOME TAX EXPENSE (BENEFIT) 792 (181)
------------ ------------
EARNINGS (LOSS) FROM CONTINUING OPERATIONS 1,053 (545)
LOSS FROM DISCONTINUED OPERATION, NET OF TAX (407) (425)
------------ ------------
NET EARNINGS (LOSS) $ 646 $ (970)
============ ============
NET EARNINGS (LOSS) PER COMMON SHARE:
BASIC EARNINGS (LOSS) FROM CONTINUING OPERATIONS $ 0.05 $ (0.03)
DISCONTINUED OPERATION (0.02) (0.02)
------------ ------------
NET EARNINGS (LOSS) PER COMMON SHARE - BASIC $ 0.03 $ (0.05)
============ ============
DILUTED EARNINGS (LOSS) FROM CONTINUING OPERATIONS $ 0.05 $ (0.03)
DISCONTINUED OPERATION (0.02) (0.02)
------------ ------------
NET EARNINGS (LOSS) PER COMMON SHARE - DILUTED $ 0.03 $ (0.05)
============ ============
WEIGHTED AVERAGE NUMBER OF COMMON SHARES 19,440,356 19,233,543
WEIGHTED AVERAGE NUMBER OF COMMON SHARES AND DILUTIVE SHARES 19,478,064 19,233,543