[GRAPHIC OMITTED][GRAPHIC OMITTED]
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 2007 RESULTS AND A QUARTERLY DIVIDEND
New York, NY, August 6, 2007......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, 2007.
Consolidated net sales for the second quarter of 2007 were $217 million,
compared to consolidated net sales of $229.2 million during the comparable
quarter in 2006. The shortfall was primarily in Temperature Control. Earnings
from continuing operations for the second quarter of 2007 were $5.7 million or
30 cents per diluted share, compared to $5.5 million or 30 cents per diluted
share in the second quarter of 2006.
Consolidated net sales for the six month period ended June 30, 2007 were $416.8
million, compared to consolidated net sales of $439.3 million during the
comparable period in 2006. Earnings from continuing operations for the six month
period ended June 30, 2007 were $8.6 million or 46 cents per diluted share,
compared to $8.1 million or 44 cents per diluted share in the comparable period
of 2006.
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37-18 Northern Blvd., Long Island City, NY 11101
(718) 392-0200
www.smpcorp.com
Commenting on the results, Mr. Lawrence I. Sills, Standard Motor Products'
Chairman and Chief Executive Officer, stated, "Engine Management, our largest
division, had a satisfactory quarter. Sales rebounded from a decline in the
first quarter, and were essentially flat in the second quarter. Gross margin
continues to improve quarter by quarter. We reached 26.9% in the second quarter,
compared to 26.3% in the first quarter, and 24.6% for the full year 2006.
We continue to solicit new business from original equipment (OE) and original
equipment service providers (OES). In the last three months, we have been
awarded incremental OE and OES business, which will amount to approximately $10
million annualized and will begin in 2008.
"Temperature Control, on the other hand, had a difficult quarter. Sales were
down $8.7 million or 12% for the quarter, reflecting a 6% decrease for the six
months 2007 compared to 2006. The primary reason was exceptionally cool and damp
weather in the center of the country, our largest air conditioning market, and
this weather pattern has continued through July. We have also experienced some
sales erosion to low priced imports from China. We are in the process of
relocating our compressor remanufacturing operations from Grapevine, Texas to
Reynosa, Mexico, and we believe this will enable us to compete aggressively with
Chinese imports in the future.
"Europe continues to improve. Sales showed a decline, but that is the result of
exiting the air conditioning business at the end of 2006. For the first half
2007, gross margin and operating profit are ahead of 2006, and we look for
continued improvements going forward.
"Finally, we are pleased to announce that, on July 31, we concluded the sale of
our Ft. Worth, Texas facility for $4.5 million, with a pre-tax gain of $0.8
million which will be accounted for in the third quarter. The remaining
operations in that location will be transferred to Mexico, outsourced to low
cost markets, or relocated to other Four Seasons locations. The proceeds will be
used to reduce our bank revolver debt."
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 4, 2007 to stockholders of record on August 15, 2007.
Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern
Time, on Monday, August 6, 2007. The dial in number is 800-909-5202 (domestic)
or 785-830-7975 (international). The playback number is 800-934-8028 (domestic)
or 402-220-6989 (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,
2007 2006 2007 2006
--------- --------- --------- ---------
NET SALES $ 216,950 $ 229,174 $ 416,765 $ 439,250
COST OF SALES 160,261 172,468 308,201 329,313
--------- --------- --------- ---------
GROSS PROFIT 56,689 56,706 108,564 109,937
SELLING, GENERAL & ADMINISTRATIVE EXPENSES 43,324 42,995 86,055 86,783
INTEGRATION EXPENSES 559 143 1,237 230
--------- --------- --------- ---------
OPERATING INCOME 12,806 13,568 21,272 22,924
OTHER INCOME, NET 779 810 1,046 1,160
INTEREST EXPENSE 4,795 5,255 9,336 9,708
--------- --------- --------- ---------
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES 8,790 9,123 12,982 14,376
INCOME TAX EXPENSE 3,134 3,668 4,390 6,323
--------- --------- --------- ---------
EARNINGS FROM CONTINUING OPERATIONS 5,656 5,455 8,592 8,053
DISCONTINUED OPERATION, NET OF TAX (279) (289) (628) (1,053)
--------- --------- --------- ---------
NET EARNINGS $ 5,377 $ 5,166 $ 7,964 $ 7,000
========= ========= ========= =========
NET EARNINGS PER COMMON SHARE:
BASIC EARNINGS FROM CONTINUING OPERATIONS $ 0.30 $ 0.30 $ 0.46 $ 0.44
DISCONTINUED OPERATION (0.01) (0.02) $ (0.03) (0.06)
----------- ----------- ----------- -----------
NET EARNINGS PER COMMON SHARE - BASIC $ 0.29 $ 0.28 $ 0.43 $ 0.38
=========== =========== =========== ===========
DILUTED EARNINGS FROM CONTINUING OPERATIONS $ 0.30 $ 0.30 $ 0.46 $ 0.44
DISCONTINUED OPERATION (0.02) (0.02) (0.04) (0.06)
----------- ----------- ----------- -----------
NET EARNINGS PER COMMON SHARE - DILUTED $ 0.28 $ 0.28 $ 0.42 $ 0.38
=========== =========== =========== ===========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES 18,781,388 18,297,155 18,617,453 18,245,253
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES 18,940,962 18,327,895 18,774,430 18,260,708
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STANDARD MOTOR PRODUCTS
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
ASSETS
June 30, December 31,
2007 2006
-------- --------
Cash $ 21,567 $ 22,348
Accounts receivable, gross 259,031 193,129
Allowance for doubtful accounts 10,245 9,465
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Accounts receivable, net 248,786 183,664
Inventories 243,773 233,970
Other current assets 27,783 21,856
-------- --------
Total current assets 541,909 461,838
-------- --------
Property, plant and equipment, net 76,534 80,091
Goodwill and other intangibles 55,227 56,289
Other assets 38,188 41,874
-------- --------
Total assets $711,858 $640,092
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LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable $181,552 $139,799
Current portion of long term debt 454 542
Accounts payable trade 65,112 53,783
Accrued customer returns 25,869 21,705
Restructuring accrual 666 703
Other current liabilities 64,692 61,993
-------- --------
Total current liabilities 338,345 278,525
-------- --------
Long-term debt 97,703 97,979
Accrued asbestos liability 20,290 20,828
Restructuring accrual 226 383
Postretirement & other liabilities 53,276 51,678
-------- --------
Total liabilities 509,840 449,393
-------- --------
Total stockholders' equity 202,018 190,699
-------- --------
Total liabilities and stockholders' equity $711,858 $640,092
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