STANDARD(r) [GRAPHIC OMITTED]
Standard Motor Products, Inc.
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
SECOND QUARTER 2006 RESULTS AND A QUARTERLY DIVIDEND
New York, NY, August 7, 2006......Standard Motor Products, Inc. (NYSE: SMP), an
automotive replacement parts manufacturer and distributor, reported today its
consolidated financial results for the three months and six months ended June
30, 2006.
Consolidated net sales for the second quarter of 2006 were $229.2 million,
compared to consolidated net sales of $226.5 million during the comparable
quarter in 2005. Earnings from continuing operations for the second quarter of
2006 were $5.5 million or 30 cents per diluted share, compared to a loss of $1.3
million or 7 cents per diluted share in the second quarter of 2005.
Consolidated net sales for the six month period ended June 30, 2006 were $439.3
million, compared to consolidated net sales of $433.8 million during the
comparable period in 2005. Earnings from continuing operations for the six month
period ended June 30, 2006 were $8.1 million or 44 cents per diluted share,
compared to a loss of $228 thousand or 1 cent per diluted share in the
comparable period of 2005.
Commenting on the results, Mr. Lawrence Sills, Standard Motor Products' Chairman
and Chief Executive Officer, said, "While all of our operating divisions showed
improvement for the quarter and for the year-to-date, we were most pleased with
the improvement in Engine Management gross margin. With the Dana integration
behind us, we have been able to focus on this area with a combination of
improved pricing, resourcing of purchased items, and additional in-house
manufacturing. We achieved close to 25% Engine Management gross profit for the
quarter and the six months, well above the 2005 annual rate of 20%."
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37-18 Northern Blvd., Long Island City, NY 11101
(718) 392-0200
www.smpcorp.com
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
September 1, 2006 to stockholders of record on August 15, 2006.
Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern
Time, on Monday, August 7, 2006. The dial in number is 800-905-0392 (domestic)
or 785-832-0326 (international). The playback number is 800-945-0822 (domestic)
or 402-220-0668 (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
(Dollars in thousands, except per share amounts)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2006 2005 2006 2005
------------ ------------ ------------ ------------
NET SALES $ 229,174 $ 226,512 $ 439,250 $ 433,838
COST OF SALES 172,468 177,602 329,313 336,493
------------ ------------ ------------ ------------
GROSS PROFIT 56,706 48,910 109,937 97,345
SELLING, GENERAL & ADMINISTRATIVE EXPENSES 42,995 43,705 86,783 85,781
INTEGRATION EXPENSES 143 3,878 230 4,402
------------ ------------ ------------ ------------
OPERATING INCOME 13,568 1,327 22,924 7,162
OTHER INCOME (EXPENSE), NET 810 1,194 1,160 979
INTEREST EXPENSE 5,255 4,290 9,708 8,065
------------ ------------ ------------ ------------
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES 9,123 (1,769) 14,376 76
INCOME TAX EXPENSE 3,668 (488) 6,323 304
------------ ------------ ------------ ------------
EARNINGS FROM CONTINUING OPERATIONS 5,455 (1,281) 8,053 (228)
DISCONTINUED OPERATION, NET OF TAX (289) (384) (1,053) (791)
------------ ------------ ------------ ------------
NET INCOME $ 5,166 $ (1,665) $ 7,000 $ (1,019)
============ ============ ============ ============
NET EARNINGS PER COMMON SHARE:
BASIC EARNINGS FROM CONTINUING OPERATIONS $ 0.30 $ (0.07) $ 0.44 $ (0.01)
DISCONTINUED OPERATION (0.02) (0.02) (0.06) (0.04)
------------ ------------ ------------ ------------
NET INCOME PER COMMON SHARE - BASIC $ 0.28 $ (0.09) $ 0.38 $ (0.05)
============ ============ ============ ============
DILUTED EARNINGS FROM CONTINUING OPERATIONS $ 0.30 $ (0.07) $ 0.44 $ (0.01)
DISCONTINUED OPERATION (0.02) (0.02) (0.06) (0.04)
------------ ------------ ------------ ------------
NET INCOME PER COMMON SHARE - DILUTED $ 0.28 $ (0.09) $ 0.38 $ (0.05)
============ ============ ============ ============
WEIGHTED AVERAGE NUMBER OF COMMON SHARES 18,297,155 19,538,269 18,245,253 19,489,583
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES 18,327,895 19,538,269 18,260,708 19,489,583
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STANDARD MOTOR PRODUCTS
CONDENSED CONSOLIDATING BALANCE SHEETS
(Dollars in thousands)
ASSETS
June 30, December 31,
2006 2005
-------- -----------
Cash $ 11,164 $ 14,046
Accounts receivable, gross 276,046 185,868
Allowance for doubtful accounts 10,776 9,574
-------- --------
Accounts receivable, net 265,270 176,294
Inventories 235,091 243,297
Other current assets 24,039 22,053
-------- --------
Total current assets 535,564 455,690
-------- --------
Property, plant and equipment, net 84,121 85,805
Goodwill and other intangibles 56,006 67,402
Other assets 37,400 44,147
-------- --------
Total assets $713,091 $653,044
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable $192,820 $149,236
Current portion of long term debt 542 542
Accounts payable trade 60,296 52,535
Accrued customer returns 27,820 22,346
Restructuring accrual 903 1,286
Other current liabilities 67,902 59,977
-------- --------
Total current liabilities 350,283 285,922
-------- --------
Long-term debt 98,265 98,549
Postretirement & other liabilities 47,273 45,962
Restructuring accrual 418 11,348
Accrued asbestos liability 24,241 25,556
-------- --------
Total liabilities 520,480 467,337
-------- --------
Total stockholders' equity 192,611 185,707
-------- --------
Total liabilities and stockholders' equity $713,091 $653,044
======== ========
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