SMP - Earnings call transcript Q3 2020 | Standard Motor Products, Inc.

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Operator

Good day, everyone, and welcome to today's Standard Motor Products' Third Quarter Earnings Call. At this time, all participants are in a listen-only mode. Later, you will have an opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note this call is being recorded. It is now my pleasure to turn today's program over to Larry Sills. ahead. go Please

Larry Sills

Jim everybody Executive call morning With to third and and our today, Iles, Officer; Well, Financial Chief we and thank conference Officer; CEO; President Sills, and have Larry attending. Chief you quarter Operating I Nathan Sills, good myself, Eric welcome Burke, Chairman. all me for

operations, into is agenda questions. for give reviewing more the of highlights Jim of the and today. will by the go wrap it Here then have quarter, brief before a Nathan detailed review of I for review the open we a a Eric will will up then numbers, begin short will

So forward-looking with Nathan turn you. to over for statement. that, the let me it Thank

Nathan Iles

Okay, Larry. thank you,

that today material will anticipate, expect, expected words Before generally we begin believe, include this may financial use forward-looking or statements. morning, our you of be results. we some I'd business discussing like statements estimate remind like regarding forward-looking we and are When the these to

Although are based expectations we that prove they and currently assure to available us, we are information certain cannot correct. reflected forward-looking us statements will and believe you in made on reasonable, by these they that assumptions the

Exchange You cause the and call filings the should statements. Commission turn now to to forward-looking the I'll actual with also differ of over for results uncertainties Securities read discussion our and a could our risks that from Eric. our

Eric Sills

you and in by All beyond for joining Thanks, times. above thanking employees right. our thank today. difficult for of going I'd these and everybody, morning to all good us like open Nathan, and

thanks so folks the work of appreciative who to intelligence to everyone distribution and true many could customers. special These jump to I'm working out just through hoops led industry, frontline dedication, in our in essential an that As safely part of and to had are whose skills brings come our a hours take goes the care through to centers, factories people operational, employees experience. situation And us our this and so unprecedented countless of stay heroes. we

Okay.

as we throughout on pleased strong call, last third business, that trends continued demand. quarter. out to the So quarter mentioned of our experiencing And the I'm the to second on say came

experiencing the reflects year from the Let sector. the due low this were two of on in discuss Management people of Engine It quarter, continued been long-term. cable all for was and October. a with this had And orders been or home days remains Consumer this up easy DIY XX% when to also the aftermarket solid so the the sales and starting it half. of a surge impact digit for been it each clawing Good has about of general driveways, of believe down we're Engine which said single the evidence phenomenon. the to a Customer pandemic has wire is DIY divisions the Engine from maintenance recently are growth as up of to the That first have this a early separately, our me spiked robust, assume of forecast line per hallmarks while were in result which trending our as lifecycle, consistently the deferred business. relatively temporary we business. into a and Management. quarter, in vehicles shortfall we vehicles fits install, of is strong sales X% third demand performance is but and we and a where older X.X% over cars back believe special which the the idled has Management working in a at staying

was Control two by driven in dynamics. quarter division the up XX% Temperature Our

timing. related first The to is

year. from orders pre-season recall, you If customers light this our very were

last almost down for it though creating was half These very got a surge hot combined country. we demand out. but strong full first XX%. typically year-to-date often This our two why a basis. behind looking quarterly at slightly across Control factors fact, year themselves Temperature out they are And the quarter in is They're balance suggest year. anomalies, then we on a In always

Moving to we on and an some pleased to will are provide all-time Nathan drivers. SMP. quarter the report to record earnings, that detail set Jim the

take So related to speak I want moment COVID savings. to just to a

value taken measures, discretionary however, of of these mentioned programs be to as executive suspensions also steps fact including and we reinstate the and to as have we that our areas our quarterly past, believe well repurchase savings temporary. we to identify in do recognize expenses, plan. short-term of as assess many compensation. ratcheting place these conserve what are in reduction put shareholders. we've we board are And both We can various we we how As and return in learned cash, plan reductions where the both aspects to share our cost cutting back had pleased of We sustained, core do dividends will they be

with needless our more amount a while summary, continue to show quarter. a and been mediocre much and very time roller up substantially of of going forward. a this exaggerated. So able coaster We've to of quarter expect does to a strong tends to it's volatility truly second and certain difficult period year third to been that first it make in balance a the loss period quarter, we that a business say, we It year. After ground has over do always experienced were

few like Before to future. a I about comments the hand I this off, just would make

we again fundamentals our many taking trends basic and solid once favorable show surprised are First, industry us see there The not resilience. forward. are to delighted, its were but

smarter we certainly crisis the was know You over, before. we that we're confident not were are now than

who Jim? result to talk And we of Jim, and thrown equipped whatever will to hand our managing our well teams I'll it over Our operations. stronger with has through on as way are are a tackle about it us. that

Jim Burke

our Okay, the business thank overview on I plan you, provide an perspective. operational touch an through manufacturing chain from to supply Eric. from I basics of will distribution.

challenging we a followed into six and the rebound turned in quick a demanding, As materials we supply be This remain has to baseline POS factories. flowing June to increased supply through steady. experienced vendors July. QX XX% to by this a with relatively to demand. was months our been view, team and momentum to chain volume our our our meet and been numbers and decrease Overall seven as with progress us able meant have This April. customer orders a feverishly increased in supply few and in that keep June vendors working all exceptions, was have past May to in able our and From

SKUs manufacturing Turning available a to volume, manufacturing of surge that in COVID driven channel. with result the are we demand along higher gross surging with hampered up What towards strong out in of base, Early by the third in our our off. all levels shift which overhead impact facilities to our generated were very Engine additional be secure risk from our labor, we with our the generating demand we margins mix demand? production the expect XX.X% can QX quarter, in the employees. was in higher Control sales were Temperature the able customers' faced tracing. high employees high to DIY have which older and significant of we to technology contact shortage manpower and and significantly Management combination favorable disruptions from been report happy a was risk a surge These level absorption, Production is of margins, seen XX.X%. in the with I'm return

into QX, carry in to expect favorable return While we and production should this XXXX. to momentum normal sales

Our margin and plus Management targets Control longer-term would XX% XX% gross plus. Engine be Temperature

assembly benefit and looking size of around automating Quickly to America, has other three previous reducing grown to low our is steadily sensors will cost footprint in substantial switches which occasion, the U.S., manual exposure. we the also North have fortunate note are China globe, the operations, operations Mexico along Poland manufacturing including a production center and We our our transferred with of on I manufacturing have coil in in back excellence, value. processes.

Over have added demand. Poland the increasing ignition capacity meet coil approved past for our year, we to

very Our the All supply us whereby pandemic lead year. the times. categories we ventures, of three source control quality can control from steady China temperature recovered provide a joint the of all start product JVs and three at into early costs,

distribution North American products. touch Finally, are our centers point our our with last

demand. performance. was The the orders. surge impact QX our we shipping meet this Our in available DCs demand challenges our Similar for ship DC operations, from to manufacturing time to labor to shortage in turnaround slower of presented our experienced

employees keep our week During up. were our this per customer six DC to days period, forward Tremendous and by seven needs. working to efforts were satisfy put DCs our

the turnaround meeting a industry very many count, and head current and We strides, we suffered report In same goals. have we are Unfortunately, summary, industries the and not I call ingrained were six it. and our do satisfaction seven to will that the now X,XXX job in thank on days world. frontline our the to we you Customer week I and dearly. resilient bounced happy great other additional quickly. around shipping our are just be to that Nathan. customer. commend to over heroes again for that SMP securing per Congratulations, so this satisfy made is is employees I'm back the to culture have our that fortunate turn

Nathan Iles

Jim. you, All right. Thank

the at the P&L. now from Looking results

$XXX.X were up $XX.X year. Our or consolidated QX sales XXXX versus million last million, QX net in XX.X%

the XX%; strong but net in believe and $XXX.X Wire with earlier customer or the months, million, were quarter $XXX.X first down were declines net down nine first wire from $XX.X or the were net nine $XX.X was year the $XXX.X for million nine we down sales looking to $XX.X But million The up months in were Our quarter, in at increase million. slowdown or million, economic million QX Engine million, caused the sales million, months of increase X.X% only in the due of segment, $XXX.X during for the X.X%. by Management and million the X.X%. cable $XX.X offset in $X.X total nine saw year million to year or in $X.X cable the related the up sales first QX demand sales excluding sales earlier for the the partially were year pandemic. and up months X.X%. the our pent finishing or first we and By POS,

wire DIY cable believable the we on year X% home have in X% as be sales consumers by decline, increase to basis. an this Sales decline annual it in pandemic. to an impacted business will and at the secular during and stay still positively While continues been

were sales Our in Control XX%. up $XXX.X net or QX XXXX million million, Temperature $XX.X

sales nine year million $XXX.X X.X% down were the months first at $X.X or last ending for million. However, versus

driven with were segment by earlier quarter there net more temp the year-to-date basis As very a pre-season on summer light noted, control very first Net of the sales nine last are hot year. in this XXXX. most step the in aided down by U.S. from year, slightly the of in sales across a ordering months in

year, QX last first last Our X.X for [indiscernible] XXXX consolidated XX.X% down up gross was XX.X% X.X year, points versus XX.X% margin in versus the points. time

temp reflects XX% up margin quarter was margin the X.X QX up the from points year positive control we first in a at down Consolidated XX.X% months, experienced segments absorption Well, in year. ended of ahead points Management Looking closely slightly versus points with Temperature few of $X.X gross costs first to alluded sales from just XX%. both Jim XXXX, and X.X flat came long-term of last to the volumes were segments third in as to was with as X.X Control prior a margins resulting management engine compression it gross really of are the more short quarter for the from QX XX.X%, aligned segments XX.X% $XX.X it nine the SG&A points months year-to-date X.X year. gross were fixed and in million was year. production those strong basis, expenses XX%. earlier. in margins for for QX last of high On last sales million, impact Engine the and Margins And down trends the the in margins XXXX, months XXXX year. QX nine into XX.X%, just up last in

XX.X% million, million spending nine was sales first at down the For versus XX.X% $XX.X net SG&A $XXX.X of last year. months,

a overall to in nine cost of first pandemic expenses year, While SG&A a were the percentage better a sales in SG&A of percentage flat sales. put were sales reflective we higher with and response of expenses roughly the the as last months is improvement by in volumes as of leverage our this quarter the place the year. the experienced as reduction helped impact Lower of plans, expenses

expenses income X.X income points XXXX sales, for was X.X% net net and Our first in or up was up of points and XX% integration restructuring XXXX. before And $XX.X from nine of consolidated from months operating QX of year. sales, QX last the other million net X.X

sales note diluted last quarter which months first in on our higher reconciliation in our earnings versus increase lower primarily impact per reflects more slightly sales first was the $X.XX the diluted to increase expenses year, The for to our and nine the months performance mainly of quarter volumes, XXXX. offset XXXX for than of due profit lower third operating nine we operating for $X.XX across of the volumes. per share company, SG&A As $X.XX the income, non-GAAP while versus the of GAAP resulted earnings in $X.XX share

sheet. end were million XXXX. of our and reflects million, XXXX million from to $XXX at quarter September over receivable the down increase up Turning from the patterns business. up in the year $XXX.X balance end seasonal December The Accounts $XX

increase XXXX of third down the having down million the to in last quarter production sales the sales. million, we last from and levels as in decrease XXXX. quarter quarter, $XX.X reflects from year the December expectations in as in at general sharp experienced reflects compared over quarter $XXX.X those Inventory from earlier year timing sales mainly the to levels last during million as the The recovery year-end the year. and in of So the we finished experienced strong in year $XX.X September slowdown response the after sales third well September both lowered

generated an reflects nine in the Looking both cash year operations last receivable million this of driven strong accounts to generation a offset increased mainly The sales of returns compared from quarter. stemming months was by generation increase at of million nine customer movements and XXXX first the cash first inventory year. $XX.X statement, it of by during cash the as accrued flow and timing, of and the during from $XX.X months in

stabilized. flows We normalize expect cash this sales around production and the to timing levels

$X.X activities $X.X occurred million and paid, During of XXXX. stock; third facility. business nine common months capital million. also the of was dividends facility use $XX.X we our our months, quarter which Financing with activities on of credit of during to in million continue quarter. under of for million the in the included invest expenditures, first payments higher borrowings outstanding Financing our both revolving $XXX million million which first $XX.X used and of the $XX.X available cash a than nine of repurchases credit included of capacity million first and $XX the We've total revolving finished of

of common dividend our release Directors this reinstatement Board of with as share Finally, and in our per turn Board a morning, noted also of a call from remained authorization share a the up. has of for you now quarterly the Directors approved reinstated repurchase to $XX.X have to And stock $X.XX our of we outstanding, your in Thank wrap Larry attention. which I'll had million. program, over the amount

Larry Sills

I say just a few before you. for to words we Thank open questions. want

from the you and the day-to-day still have saw Executive to to As still be when back had activities, fact $X company for core and be well connected of the confident glorious very Chairman of stepping I future I'm began I January and this that release in $XX a moves this remain company's after the an move going Xst, of many going is well the as moving is I'm part appropriate be reflects business, million the growth. over we years, come XX hopefully have the closely to plans billion transition I our our of proper this in bit Chairman I'll from Board, to believe Board. privilege but been. from to Chairman today, being where seamless growth a major as

what place, very I and deepest well team and can I management remember. we in themselves year. the this is perform have strongest We difficult Improve during believe how

future. about confident So I very am the

you we're to And listening. thank questions. So I move to now for going

And this, I over Thank so to moderator. you. it the turn for

Operator

question King]. We'll [Operator first Instructions] from our take Stember [CL Scott

ahead. is open. go line Please Your

Scott Stember

Congrats morning Good a nice guys. on really quarter.

Eric Sills

you. Thank to and morning you, good Scott

Scott Stember

against in right Could POS. about release, talk Can for the October? Management. quarter now about you throughout we that you talk maybe In in very talked what seeing frame Eric, maybe Engine that frame up strong and particularly just cadence up the and us we're the

Eric Sills

Sure.

digits to And digit, continued talk well preferably single and of into the Temperature It the separately. the sales at around DIY did wire return October to, low in start still couple in the in fact summer. the the me our the into that the it saw pretty the at it's XX% business digits. entire roughly going reflecting probably about is but it some two Let density slightly normal. were last beginning, the much was we Engine single that robust portion what a to of we is throughout was or high off, double touching has taper what continued throughout so point on back cable highest POS quarter divisions Management, quarter the off months, consistent in throughout. matched high which as the tapering saw and that that control positives, throughout very

So it was very strong.

Scott Stember

the in fourth of you But and you how reversing quantify it's sounds never an the would because quarter the on and just margins the some maybe put know quarter, impact in you you has demand And the labor it that that side of on itself could distribution side, inefficiencies, much it. numbers on that mostly just would strong had gross up. like Got correct? the be

Jim Burke

so of that Scott. one-time that at had up were while – Burke. variables are This inefficiencies There's And going so there's we are volume is for Jim Hi, on in there, many that makes lot that. there. many a Yes.

gained So leverage was – I percent don't on go the into that of a as sales details. as we individual we And there.

savings of inefficiencies of that crisis, lot for a of volume cost implemented it. that up because made will lot the which have that there COVID We a offset we at were really

Scott Stember

question, it. I'll into Got jump then back last the then and And queue.

the quarters. for that line, quarter related be some should was we what spending. out? there's when and of moving last talk an the SG&A you Can – out fourth give know broadly for pieces of a stuff about us couple back management year, that stuff the on out you that the of growth for looking there's I next other taken of then that definitely or lot you things were over that just coming some just idea On But can year? come some or where it's could talked some And whether next about comp speaking taken

Jim Burke

Scott. Yes,

think there's So, this lot rest we'll SG&A Obviously a would you variable. the obviously, the we as when year. go in say that Nathan at being And like moving you fourth look talk at We said controlled. about we through this line know, year. next of be costs you see, the looking quarter always line is Iles the fixed, I pieces would be XX% can

forward, normal might remarks noted looking at expect what earlier this in at into but really something As the future we Eric be more looking that go his as point.

Scott Stember

I Thank for That's now. Alright. you. Okay. have all

Eric Sills

Scott. you, Thank

Operator

[Stephens next our take Imbro We'll from Instructions] Inc.]. Daniel [Operator question

go ahead. Please open. is line Your

Daniel Imbro

guys. congrats Yes. Thanks, And the on strong morning good results.

Eric Sills

Good morning.

Daniel Imbro

months, really talk the impact on both are you start the side but do side. are that of exiting in how inventory maybe and year get going know, restocking exit next we Can on and as Temperature you helped cost normal where that's pre-season trends levels summer this Control. Jim, obviously helped the you impressive sales, the about to demand weather think if XXXX? we XQ, season the lack how to we Want

Eric Sills

Erica, Good and is morning, tackle Daniel. that. This I'll

were the where their of of we up visibility, reflects able at were pleased that, their inventory we ordering As replenish them the to kind throughout the distributors heavy to fact from we're held inventory the that really they look position major season, lots on that, actually see the which that shell. have

a out coming we continues So now now be fact the have is of September that assume season visibility and looking We actually at yet. inventory and that don't dropping October a strong, bit. that somewhat to we're our

snapshot, bode So that for say receipts year's to well as you tend for preseason. does, inventory next

we'll reasonable comes, assumption? see so think And a what I but it's

Daniel Imbro

do resilient that about puts thinking And about following some helpful. than yet, tailwind as a the then this major industry are growth How thinking see industry from year it did as Will there maybe thought aftermarket are the the about you be looking industry miles year? I of shaking What for growth thinking think growth aren't That's any be of takes spot factors in and outlook, next Should maybe guys what guiding but year? out? at, you recovery? look driven be you growth seemingly you're sweet demand about there you just up XXXX know Great. more like? in Eric would guys in we're we next being

Eric Sills

point we return wish of at variable, type some believe engine some really our the are failure. which is specially level failure on industry ball. we a to Its going heart within Can't create non-discretionary good such had items. to demand crystal categories, that almost, I

summers on side, on to the will than, be normal. expect so management at move and And summers back certain than don't there point a know low up maintenance just to of maintenance. business percentage be, track when to because needle under showed it digit can some does always weather. going that that, it it higher maybe out performed is performed at historical. control continued being normal, rate We expect to a unperformed few is have or down and weather single with to points, versus go that that a to that robust, has return But that get cool there the So amount dependent suggests back it's once that temperature it we we hot we the to being a which injury

Daniel Imbro

term, a one third maybe And like talk engine. EVs there's market lately the combustion to been States California it. of from in us, lot longer out then around trying phase just the focusing Got

hard internal that update some engine. levers pretty Can are five from of next, thinking over time of looked you those to aligned you you're you combustion guys assets growth You years maybe on what less us know, how the that transition have EVs and do with the pull engineering? can plus guys in that headwinds the if some offset in they internal combustion materialize are are

Eric Sills

question. great can lot one a internally, It's it's you spend discussing imagine. And of as time we a that

and terms of the before give really You to to the a a relates to, sales, spot then obviously percentage than it of up timeline it going lag the park as be car mean, park. as it in and a of five years. to I car that it's We first starts think pick longer sweet new that substantially impact car there's substantial needs especially

a to So believe do if, an believe is said, a and That really, for quite do has when that have few it we need and we that not a do prepare it so significant years implications. we ourselves before we any that.

lot it's And [indiscernible] a and about As sensors you and more lot devices, that pressure and bigger that. pursue parts It's the the vehicle part whether our (X:XX:XX) electrical much Engine other get as lots but a other offering, just are we've a safety the or of of products control seeing is offering so tire broaden years, that significant of is ADAS stuff, vehicles and Management it lot really the a type that of of targeting many sensors combustion that vehicle. our throughout of engine, aspects we specifically advanced some we're and been related to switches broadened to becoming look portfolio the business, stuff that's a looking cover certainly to portion on. on body into of we at for

less a to at itself, it's the parts and park, there look car small we opportunities combustion car the need not so that that do of tell and product engines to all park to it's ourselves now fewer part but the because prepare part failures, are replacement essentially we opportunities. we is parts, early why for product it we're such do power-train see really the too plentiful going electric hope right we be the be some that a that's moving those seeing it's going of we young As frankly with other believe than categories, which to

are basically divisions some other vehicles, still and nuances have they on our Control air Division, there the use system. same Temperature electric the while conditioning You and

is continue engine enjoy will to and like to cooling say the components seeing ourselves, we lead there. opportunities get to a do there and in we that back sales out to conventional think I far. have you're we're do know to into. prepare of that battery lot seeing we we plus So to a that, they going that a just would really much is that get point long much EVs we but we the out time still – it, powertrain growth the we're there for can answer side need cooling have more that combustion on which of hybrids long-winded enjoying so That's a growth

Daniel Imbro

best Thanks great. much of guys so luck. That's and

Eric Sills

Thanks, Dan.

Operator

[Jefferies]. question Jordan Bret next our take from We'll

Please open. is go line Your ahead.

Bret Jordan

Hey, guys. good morning

Nathan Iles

Bret. good morning, Hi,

Eric Sills

Good Bret. morning,

Bret Jordan

the share, some guess numbers in And the internal created share sort opportunities expanding of mean, the the third at that see quarter disruption to of opening in buy? look to about near-term? I beyond Has to combustion, you just as I your a M&A pandemic? yourselves and market I result thinking how event gain of opportunity at think looking would globally. And strong do had question follow-up here any buyback dividend guess lot being this a pretty you some you And environment? categories, the are your active given the Do guys and – you of be any a maybe more you as up these new

Eric Sills

address M&A Jim Well, I'll can question. market talk and share the about

strong we For enjoyed market you know, relationships business with out everybody share, there. as really Bret,

we movement share share think to market So, that any market be related shifts. more would probably downstream

to partners. our of M&A. on much We unchanged Jim relationships with pretty all trading enjoy continue

Jim Burke

that's in larger team sources on supply, monitoring Stoneridge out place vendors may our that we opportunities the of come come a that company it be and up, And formal Yes. was M&A, there. i.e., that many categories our of them Pollak of from and with Bret product we're did a continuously we we again or acquire have like

the things monitor, very whole past yet. to quiet nothing the So I'd COVID of with year continue to been impact, obviously we have but speak say

I think relatively Control is that and Management the on we're but Engine stable, area. in focused pipeline Temperature

Bret Jordan

not I pushing chain import away guess, or American market environment? out buying question, to even you you're I direct seeing inverse, in And to more North just programs Eric, bias move Okay. Asia of share guess this partners, from you source said I to seeing are guess the any groups the to supply

Eric Sills

seen this and But supply we went We having the have everybody through of discussions prepared about imagine, remarks, that of not chain. find in our stable. do security really ourselves, his the with secure year. you Jim can been it's course as And very over as

for we on real it's does the us benefits say that I think year. any that So our to us, lesser this wouldn't reliance Far but help yielded East

Bret Jordan

you. thank Great,

Nathan Iles

welcome. You're

Operator

for We'll next take and Investing]. question from our Smith Performance [Center Robert

is open. line Your Please ho ahead.

Robert Smith

my and questions. for morning Hi, thanks taking good

I but want certain point. basically, So, answered do already, have to questions my a discuss been

over a really company many, hundred have the So you years, of or venerable years so. guys many history

think and been really a historical dividends again missed would the for by So dividend to I a meeting year dividends the consider the looking shareholders raising know decrease the make this very historical special end you or span looking at year, because record, you've historical know don't show year I record as at record. consider hold, on paying late. a judicious the the should you it's you in I of a I of this of think in dividend this I consider about you And over would to the I should like years. the whatever, as the far but board possibility. kind dividend and long

shareholders it You spend and afford provide season. I certainly quickly, it, holiday cash your can the during think snapped some well very back with you to will extra and

he not in I'm question that Thanks. is wish in earnings stepping Larry could phone. will. or you future think give over So all sure a best big I will all have him do his him in all, if be I that hug and like a want as you I hope And whether a calls consider to this and the future far certainly back, as not, with the present I suggestion this,

Larry Sills

one. one. plan forward second Yes, easy be to the certainly Bob, still and answer to… look here I'll I That's

Robert Smith

great. Wonderful. Okay,

Larry Sills

question, As for take first your maybe I to think, Jim Did you? that. Okay.

Jim Burke

Yes.

It again, for Yes. you thank that. up. Robert It It's Okay. a does question. And consideration. came the

business really opportunities Our we that have CapEx there, and focus with through, invested it. dividends we have in first we go is we address the that what

dividend. special acquisition a for up look bringing opportunities. We You're

have we cash So allocation. our

investor review will business. is board. focus you and the but the always investing our with is consideration, We hear an everything first We in under opportunities as always again,

Robert Smith

Thanks.

Jim Burke

you. Thank

Robert Smith

of question I historical the record, how that's again at And look it.

Jim Burke

Okay.

Robert Smith

Thanks.

Eric Sills

Thank you, Robert.

Operator

Carolina take question from [Gabelli]. Jolly next We'll our

go ahead. open. is line Please Your

Carolina Jolly

Hi, billion, I'd you congratulate taking also thank to $X impressive. business question. for my a like million Larry from very taking to $XX

on to focus my Just question.

the understanding underlying any do do-it-yourself what of First, of I production kind Does is know business, mixes e-commerce. run? have of do that [indiscernible] how you especially business non-discretionary do-it-for-me, do-it-yourself in hard affect Or part way? your in strength an you but

Eric Sills

Carolina. Good morning, right. All

nature, our the much ability you're just consumer because So, for technologies. do but in a hard it's technical they're and cases more newer the but difficult more DIY repair, because product installation lot tailored right professional ability being to to the do type in more the parts, diagnostics, for they're of a not non-discretionary just especially in the not

the the course it's of was sold. the minority believe how while And do so, our products still we there uptick are over quarter, an of

therefore a don't of have the as we visibility our channel, it's get but less to So our is or do still We I it if that DIY We half certainly total it that leading did back going your so. with than mix. And correct? had to of implications visibility DIFM bit, to to products on normal. through It's come that correctly, second bump. question, you broke the little lose create a up e-tailing, understood

Carolina Jolly

seeing in that strength significant e-tailing, your business just that just affects anyway. in if seen Yes, we've

Eric Sills

Right.

omnichannel to platforms all as direct you're there. obviously the and e-tail we sell world, are strategies, our they them big own on sold pure their are our any national so products customers not of very the as as players, their by players And We the fulfilled related right, directly well do Amazons have though, topics. [indiscernible] support

– online, that seen so Again slow delivery the game name a professionally products but and it few So inventory need we close it's over as having still year very our because way. as sold of of that last the the do installed amount perhaps have very of of it's are that than a and it we've to it's a the and businesses is certain years is over that and this our XX% small the less of speed of increase business, of course slightly, accelerated percentage availability possible. sold our but

a it our we believe continue so, will of be to part business. minority And

Carolina Jolly

Great, congratulations on thank a quarter. great you and

Eric Sills

Thank you.

Nathan Iles

Thank you, Carolina.

Operator

[Operator program Larry. further appears will I back Instructions] questions over have we to turn no this the time; at It now

Larry Sills

your Okay, everybody. much. you appreciate you attendance. very very much. Thank Thank We

Nathan Iles

you. Bye, thank Okay.

Eric Sills

Thank Bye-bye. you.

Jim Burke

Bye.

Operator

for This your does participation. conclude today's program. you Thank

any at You may time. disconnect

Standard Motor Products (SMP) 28 Oct 202020 Q3 Earnings call transcript