UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 22, 2024

STANDARD MOTOR PRODUCTS, INC.
(Exact Name of Registrant as Specified in its Charter)

New York
001-04743
11-1362020
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(I.R.S. Employee Identification Number)

37-18 Northern Boulevard, Long Island City, New York 11101
(Address of Principal Executive Offices, including Zip Code)

Registrant’s Telephone Number, including Area Code:  718-392-0200

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $2.00 per share
SMP
New York Stock Exchange LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02.
Results of Operations and Financial Condition.

On February 22, 2024, Standard Motor Products, Inc. (the “Company”) issued a press release announcing its financial results for the three months and year ended December 31, 2023.  A copy of such press release is furnished as Exhibit 99.1 hereto.

Such press release shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01.
Financial Statements and Exhibits.

     (d)
Exhibits.

99.1
Press release dated February 22, 2024 announcing Standard Motor Products, Inc.’s financial results for the three months and year ended December 31, 2023.
   
104
Cover Page Interactive Data File--the cover page XBRL tags are embedded within the Inline XBRL document.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
STANDARD MOTOR PRODUCTS, INC.
     
 
By:
/s/ Nathan R. Iles
 
   
Nathan R. Iles
   
Chief Financial Officer
     
Date: February 22, 2024
   

2

Exhibit Index
 
Exhibit No.
 
Description
     
     
99.1
 
     
104
 
Cover Page Interactive Data File--the cover page XBRL tags are embedded within the Inline XBRL document.

 
3


Exhibit 99.1



For Immediate Release
For more information, contact:
Anthony (Tony) Cristello
Standard Motor Products, Inc.
(972) 316-8107
tony.cristello@smpcorp.com

Standard Motor Products, Inc. Releases

 Fourth Quarter and 2023 Year-End Results

New York, NY, February 22, 2024......Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, reported today its consolidated financial results for the three and twelve months ended December 31, 2023.

Net sales for the fourth quarter of 2023 were $290.8 million, compared to consolidated net sales of $308.2 million during the same quarter in 2022. Earnings from continuing operations for the fourth quarter of 2023 were $7.2 million or $0.32 per diluted share, compared to $8.5 million or $0.39 per diluted share in the fourth quarter of 2022. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the fourth quarter of 2023 were $8.2 million or $0.37 per diluted share, compared to $15.1 million or $0.69 per diluted share in the fourth quarter of 2022.


Consolidated net sales for the twelve months ended December 31, 2023, were $1.36 billion, compared to consolidated net sales of $1.37 billion during the comparable period in 2022.  Earnings from continuing operations for the twelve months ended December 31, 2023, were $63.1 million or $2.85 per diluted share, compared to $73.0 million or $3.30 per diluted share in the comparable period of 2022.  Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the twelve months ended December 31, 2023 and 2022 were $64.8 million or $2.92 per diluted share and $79.4 million or $3.59 per diluted share, respectively.

Mr. Eric Sills, Standard Motor Products’ Chairman and Chief Executive Officer stated, “Overall we were disappointed in our results. Sales were down 1% in 2023, with the fourth quarter finishing softer than expected, down 5.7% from last year.  As we look at our two end markets, we were very pleased with the continued solid performance in our Engineered Solutions business as we experienced strong growth with both new and existing customers.  Meanwhile our aftermarket business experienced a challenging quarter, impacting our full-year performance especially when compared to records we set in 2022.”

By segment, Vehicle Control sales declined 5.9% in the fourth quarter, bringing full-year performance down 1.7% compared to 2022.  The sales results in the quarter were due to a combination of modest changes to customer order patterns as well as general softness in the marketplace.   While large customer POS trends were slightly positive early in the quarter, they weakened in December finishing roughly flat overall.


Turning to Temperature Control, weather patterns throughout the year created challenges for this highly seasonal category, with full-year sales down 3.8%. 2022 was the longest and hottest season on record, with full-year sales up 8.4% over the previous year, making for a difficult comparison.  The first half of 2023 was unseasonably cool, and while it got quite hot across much of the country in the third quarter, it tends to be difficult to recover from a late start to the selling season. The fourth quarter itself was light, down 19.0%, though it is important to note with the seasonal demand over, it is always far and away our lowest sales quarter and can therefore be quite volatile.

Our Engineered Solutions segment continues to post strong numbers as sales increased 6.7% in the fourth quarter and 4.7% for the year. After several years of building out this new business, we officially launched it as its own operating segment at the start of 2023, and we are delighted to see the ongoing momentum.    We are pleased with the overall traction to date in this segment and continue to believe we will be able to capitalize on new awards as well as introduce new products over time to broaden both new and existing customer opportunities.

Consolidated operating profit for the full year, excluding non-operational gains and losses, finished at 7.0%, vs. 8.2% in 2022, and adjusted EBITDA was 9.3% for the year compared to our guidance of approximately 9.5%. Lower sales volumes resulted in lower leverage of fixed costs, even though our pricing actions along with cost reduction initiatives have started to offset lingering inflationary pressures.  Customer factoring program expense at $46.0 million was $14.0 million (110 basis points) higher in 2023. And while interest rates remain high, the general consensus is that they will begin to decline later in 2024.

From a cash flow perspective, we were pleased with the impact of our initiatives on reducing both our inventory and borrowing levels.  At year-end, our inventory was $507.1 million, down from $528.7 million at year-end 2022.  Additionally, our total debt at year-end stood at $156.2 million as we paid down $83.6 million in the full year of 2023, ending with a net leverage ratio of 1.0X.


As we head into 2024, our outlook for the full year includes an expectation that sales growth will be flat to low single digits and Adjusted EBITDA will be in a range of 9.0% to 9.5%.  We remind investors that as part of our distribution center expansion into Shawnee, KS, we will incur roughly $7-8 million of added costs in 2024 related to increased rent as well as redundancy expenses as we transition away from our Edwardsville, KS distribution center.  Additionally, we anticipate approximately $25 million in capital expenditures related to the implementation of upgraded automation capabilities, as well as other equipment and racking, as we outfit the new DC.

In closing, Mr. Sills commented, “Although the economic backdrop and various geopolitical risks may continue to create volatility in 2024, we are confident in the resiliency of our end markets.  We are excited about the partial opening of our new distribution center in just a few months and full opening in 2025 that will expand our capacity and provide additional risk avoidance to our overall distribution footprint.  We look to continue to find ways to even better service our customers as well as explore opportunities to partner together for growth in 2024 and well into the future.  We thank our employees that make all of this possible.”


Conference Call

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Thursday, February 22, 2024.  This call will be webcast and can be accessed on our website at www.smpcorp.com and clicking on the SMP Q4'23 Earnings Call Earnings Webcast link.  Investors may also listen to the call by dialing 800-245-3047 (domestic) or 203-518-9765 (international).Our playback will be made available for dial in immediately following the call.  For those choosing to listen to the replay by webcast, the link should be active on our website within 24 hours after the call.  The playback number is 888-566-0878 (domestic) or 402-220-6925 (international).

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

(In thousands, except per share amounts)
                       
                         
   
THREE MONTHS ENDED
   
TWELVE MONTHS ENDED
 
   
DECEMBER 31,
   
DECEMBER 31,
 
   
2023
   
2022
   
2023
   
2022
 
   
(Unaudited)
   
(Unaudited)
 
NET SALES
 
$
290,756

 
$
308,199

 
$
1,358,272

 
$
1,371,815

       
     
     
     
COST OF SALES
   
209,226

   
218,635

   
969,446

   
989,276

       
     
     
     
GROSS PROFIT
   
81,530

   
89,564

   
388,826

   
382,539

       
     
     
     
SELLING, GENERAL & ADMINISTRATIVE EXPENSES
   
70,326

   
72,075

   
293,583

   
276,626

RESTRUCTURING AND INTEGRATION EXPENSES
   
1,259

   
1,847

   
2,642

   
1,891

OTHER INCOME, NET
   
2

   
70

   
76

   
113

       
     
     
     
OPERATING INCOME
   
9,947

   
15,712

   
92,677

   
104,135

       
     
     
     
OTHER NON-OPERATING INCOME (EXPENSE), NET
   
(433)

   
(75)

   
2,326

   
4,814

       
     
     
     
INTEREST EXPENSE
   
2,521

   
4,335

   
13,287

   
10,617

       
     
     
     
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
   
6,993

   
11,302

   
81,716

   
98,332

       
     
     
     
PROVISION FOR (BENEFIT FROM) INCOME TAXES
   
(288)

   
2,799

   
18,368

   
25,206

       
     
     
     
EARNINGS FROM CONTINUING OPERATIONS
   
7,281

   
8,503

   
63,348

   
73,126

       
     
     
     
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES
   
(795)

   
(615)

   
(28,996)

   
(17,691)

       
     
     
     
NET EARNINGS
   
6,486

   
7,888

   
34,352

   
55,435

       
     
     
     
NET EARNINGS (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST
   
52

   
(45)

   
204

   
84

       
     
     
     
NET EARNINGS ATTRIBUTABLE TO SMP (a)
 
$
6,434

 
$
7,933

 
$
34,148

 
$
55,351

       
     
     
     
NET EARNINGS ATTRIBUTABLE TO SMP
     
     
     
     
EARNINGS FROM CONTINUING OPERATIONS
 
$
7,229

 
$
8,548

 
$
63,144

 
$
73,042

LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES
   
(795)

   
(615)

   
(28,996)

   
(17,691)

TOTAL
 
$
6,434

 
$
7,933

 
$
34,148

 
$
55,351

       
     
     
     
NET EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SMP
     
     
     
     
BASIC EARNINGS FROM CONTINUING OPERATIONS
 
$
0.33

 
$
0.40

 
$
2.91

 
$
3.37

DISCONTINUED OPERATION
   
(0.04)

   
(0.03)

   
(1.34)

   
(0.82)

NET EARNINGS PER COMMON SHARE - BASIC
 
$
0.29

 
$
0.37

 
$
1.57

 
$
2.55

       
     
     
     
DILUTED EARNINGS  FROM CONTINUING OPERATIONS
 
$
0.32

 
$
0.39

 
$
2.85

 
$
3.30

DISCONTINUED OPERATION
   
(0.03)

   
(0.03)

   
(1.31)

   
(0.80)

NET EARNINGS  PER COMMON SHARE - DILUTED
 
$
0.29

 
$
0.36

 
$
1.54

 
$
2.50

       
     
     
     
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
   
21,836,293

   
21,578,194

   
21,716,177

   
21,683,719

WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES
   
22,310,085

   
22,030,263

   
22,161,341

   
22,139,981


(a) "SMP" refers to Standard Motor Products, Inc. and subsidiaries.


STANDARD MOTOR PRODUCTS, INC.
Segment Revenues and Operating Profit

(In thousands)
                 
                 
   
THREE MONTHS ENDED
   
 
TWELVE MONTHS ENDED
   
   
DECEMBER 31,
   
 
DECEMBER 31,
   
   
2023
       
2022
   
 
2023
       
2022
   
   
(Unaudited)
   
 
(Unaudited)
   
Revenues
       
       
       
       
Engine Management (Ignition, Emissions and Fuel Delivery)
 
$
107,320

 
 
$
116,091

 
 
$
450,180

 
 
$
454,571

 
Electrical and Safety
   
55,062

 
   
57,309

 
   
221,782

 
   
230,487

 
Wire sets and other
   
16,247

 
   
16,437

 
   
65,970

 
   
65,513

 
Vehicle Control
   
178,629

 
   
189,837

 
   
737,932

 
   
750,571

 
       
 
   
-

 
     
 
     
 
AC System Components
   
19,843

 
   
26,161

 
   
237,756

 
   
245,484

 
Other Thermal Components
   
24,788

 
   
28,960

 
   
99,998

 
   
105,753

 
Temperature Control
   
44,631

 
   
55,121

 
   
337,754

 
   
351,237

 
       
 
     
 
     
 
     
 
Commercial Vehicle
   
20,218

 
   
20,022

 
   
83,025

 
   
80,275

 
Construction / Agriculture
   
8,861

 
   
9,208

 
   
43,402

 
   
42,385

 
Light Vehicle
   
21,578

 
   
21,010

 
   
92,759

 
   
91,533

 
All Other
   
16,839

 
   
13,001

 
   
63,400

 
   
55,814

 
Engineered Solutions
   
67,496

 
   
63,241

 
   
282,586

 
   
270,007

 
       
 
     
 
     
 
     
 
Revenues
 
$
290,756

 
 
$
308,199

 
 
$
1,358,272

 
 
$
1,371,815

 
       
 
     
 
     
 
     
 
Gross Margin
     
 
     
 
     
 
     
 
Vehicle Control
 
$
58,769

32.9%

 
$
62,765

33.1%

 
$
238,215

32.3%

 
$
232,267

30.9%
Temperature Control
   
12,375

27.7%

   
15,005

27.2%

   
95,827

28.4%

   
98,913

28.2%
Engineered Solutions
   
10,386

15.4%

   
11,794

18.6%

   
54,784

19.4%

   
51,359

19.0%
All Other
   
-

 
   
-

 
   
-

 
   
-

 
Gross Margin
 
$
81,530

28.0%

 
$
89,564

29.1%

 
$
388,826

28.6%

 
$
382,539

27.9%
       
 
     
 
     
 
     
 
Selling, General & Administrative
     
 
     
 
     
 
     
 
Vehicle Control
 
$
41,397

23.2%

 
$
39,649

20.9%

 
$
165,705

22.5%

 
$
151,596

20.2%
Temperature Control
   
15,640

35.0%

   
14,358

26.0%

   
77,376

22.9%

   
70,192

20.0%
Engineered Solutions
   
9,343

13.8%

   
7,780

12.3%

   
34,565

12.2%

   
32,646

12.1%
All Other
   
3,946

 
   
3,286

 
   
15,937

 
   
15,190

 
Subtotal
   
70,326

24.2%

   
65,073

21.1%

   
293,583

21.6%

   
269,624

19.7%
Customer Bankruptcy Charge
   
-

0.0%

   
7,002

2.3%

   
-

0.0%

   
7,002

0.5%
Selling, General & Administrative
 
$
70,326

24.2%

 
$
72,075

23.4%

 
$
293,583

21.6%

 
$
276,626

20.2%
       
 
     
 
     
 
     
 
Operating Income
     
 
     
 
     
 
     
 
Vehicle Control
 
$
17,372

9.7%

 
$
23,116

12.2%

 
$
72,510

9.8%

 
$
80,671

10.7%
Temperature Control
   
(3,265)

-7.3%

   
647

1.2%

   
18,451

5.5%

   
28,721

8.2%
Engineered Solutions
   
1,043

1.5%

   
4,014

6.3%

   
20,219

7.2%

   
18,713

6.9%
All Other
   
(3,946)

 
   
(3,286)

 
   
(15,937)

 
   
(15,190)

 
Subtotal
 
$
11,204

3.9%

 
$
24,491

7.9%

 
$
95,243

7.0%

 
$
112,915

8.2%
Restructuring & Integration
   
(1,259)

-0.4%

   
(1,847)

-0.6%

   
(2,642)

-0.2%

   
(1,891)

-0.1%
Customer Bankruptcy Charge
   
-

0.0%

   
(7,002)

-2.3%

   
-

0.0%

   
(7,002)

-0.5%
Other Income, Net
   
2

0.0%

   
70

0.0%

   
76

0.0%

   
113

0.0%
Operating Income
 
$
9,947

3.4%

 
$
15,712

5.1%

 
$
92,677

6.8%

 
$
104,135

7.6%


STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures

(In thousands, except per share amounts)
                       
   
THREE MONTHS ENDED
   
TWELVE MONTHS ENDED
 
   
DECEMBER 31,
   
DECEMBER 31,
 
   
2023
   
2022
   
2023
   
2022
 
   
(Unaudited)
   
(Unaudited)
 
EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP
                       
                         
GAAP EARNINGS FROM CONTINUING OPERATIONS
 
$
7,229

 
$
8,548

 
$
63,144

 
$
73,042

       
     
     
     
RESTRUCTURING AND INTEGRATION EXPENSES
   
1,259

   
1,847

   
2,642

   
1,891

CUSTOMER BANKRUPTCY CHARGE
   
-

   
7,002

   
-

   
7,002

CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD
   
-

   
-

   
(312)

   
(249)

INCOME TAX EFFECT RELATED TO RECONCILING ITEMS
   
(327)

   
(2,301)

   
(687)

   
(2,312)

       
     
     
     
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS
 
$
8,161

 
$
15,096

 
$
64,787

 
$
79,374

       
     
     
     
       
     
     
     
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP
     
     
     
     
       
     
     
     
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
 
$
0.32

 
$
0.39

 
$
2.85

 
$
3.30

       
     
     
     
RESTRUCTURING AND INTEGRATION EXPENSES
   
0.06

   
0.08

   
0.12

   
0.08

CUSTOMER BANKRUPTCY CHARGE
   
-

   
0.32

   
-

   
0.32

CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD
   
-

   
-

   
(0.01)

   
(0.01)

INCOME TAX EFFECT RELATED TO RECONCILING ITEMS
   
(0.01)

   
(0.10)

   
(0.04)

   
(0.10)

       
     
     
     
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
 
$
0.37

 
$
0.69

 
$
2.92

 
$
3.59

       
     
     
     
       
     
     
     
OPERATING INCOME
     
     
     
     
       
     
     
     
GAAP OPERATING INCOME
 
$
9,947

 
$
15,712

 
$
92,677

 
$
104,135

       
     
     
     
RESTRUCTURING AND INTEGRATION EXPENSES
   
1,259

   
1,847

   
2,642

   
1,891

CUSTOMER BANKRUPTCY CHARGE
   
-

   
7,002

   
-

   
7,002

OTHER INCOME, NET
   
(2)

   
(70)

   
(76)

   
(113)

       
     
     
     
NON-GAAP OPERATING INCOME
 
$
11,204

 
$
24,491

 
$
95,243

 
$
112,915

       
     
     
     
EBITDA WITHOUT SPECIAL ITEMS
     
     
     
     
       
     
     
     
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
 
$
6,993

 
$
11,302

 
$
81,716

 
$
98,332

       
     
     
     
DEPRECIATION AND AMORTIZATION
   
7,561

   
7,403

   
29,022

   
28,298

INTEREST EXPENSE
   
2,521

   
4,335

   
13,287

   
10,617

EBITDA
   
17,075

   
23,040

   
124,025

   
137,247

       
     
     
     
RESTRUCTURING AND INTEGRATION EXPENSES
   
1,259

   
1,847

   
2,642

   
1,891

CUSTOMER BANKRUPTCY CHARGE
   
-

   
7,002

   
-

   
7,002

SPECIAL ITEMS
   
1,259

   
8,849

   
2,642

   
8,893

       
     
     
     
EBITDA WITHOUT SPECIAL ITEMS
 
$
18,334

 
$
31,889

 
$
126,667

 
$
146,140


MANAGEMENT BELIEVES THAT NON-GAAP EARNINGS FROM CONTINUING OPERATIONS AND NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS WHICH ARE ATTRIBUTABLE TO SMP, AND NON-GAAP OPERATING INCOME AND EBITDA WITHOUT SPECIAL ITEMS, EACH OF WHICH ARE NON-GAAP MEASUREMENTS AND ARE ADJUSTED FOR SPECIAL ITEMS, ARE MEANINGFUL TO INVESTORS BECAUSE THEY PROVIDE A VIEW OF THE COMPANY WITH RESPECT TO ONGOING OPERATING RESULTS.  SPECIAL ITEMS REPRESENT SIGNIFICANT CHARGES OR CREDITS THAT ARE IMPORTANT TO AN UNDERSTANDING OF THE COMPANY'S OVERALL OPERATING RESULTS IN THE PERIODS PRESENTED. SUCH NON-GAAP MEASUREMENTS ARE NOT RECOGNIZED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND SHOULD NOT BE VIEWED AS AN ALTERNATIVE TO GAAP MEASURES OF PERFORMANCE.


STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures by Segments

(In thousands)
 
THREE MONTHS ENDED DECEMBER 31, 2023
 
   
Vehicle Control
   
Temperature Control
   
Engineered Solutions
   
All Other
   
Consolidated
 
   
(Unaudited)
 
OPERATING INCOME
         
         
     
     
   
         
     
GAAP OPERATING INCOME
 
$
16,608

 
$
(3,595)

 
$
880
   
$
(3,946)

 
$
9,947

       
     
             
     
RESTRUCTURING AND INTEGRATION EXPENSES
   
792

   
330

   
137
     
-

   
1,259

CUSTOMER BANKRUPTCY CHARGE
   
-

   
-

   
-
     
-

   
-

OTHER (INCOME) EXPENSE, NET
   
(28)

   
-

   
26
     
-

   
(2)

       
     
             
     
NON-GAAP OPERATING INCOME
 
$
17,372

 
$
(3,265)

 
$
1,043
   
$
(3,946)

 
$
11,204

       
     
             
     
EBITDA WITHOUT SPECIAL ITEMS
     
     
             
     
       
     
             
     
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
 
$
14,862

 
$
(4,466)

 
$
395
   
$
(3,798)

 
$
6,993

       
     
             
     
DEPRECIATION AND AMORTIZATION
   
3,610

   
985

   
2,549
     
417

   
7,561

INTEREST EXPENSE
   
1,737

   
602

   
690
     
(508)

   
2,521

EBITDA
   
20,209

   
(2,879)

   
3,634
     
(3,889)

   
17,075

       
     
             
     
RESTRUCTURING AND INTEGRATION EXPENSES
   
792

   
330

   
137
     
-

   
1,259

SPECIAL ITEMS
   
792

   
330

   
137
     
-

   
1,259

       
     
             
     
EBITDA WITHOUT SPECIAL ITEMS
 
$
21,001

 
$
(2,549)

 
$
3,771
   
$
(3,889)

 
$
18,334

% of Net Sales
   
11.8%

   
-5.7%

   
5.6%

     
   
6.3%

                               
       
(In thousands)
 
THREE MONTHS ENDED DECEMBER 31, 2022
 
   
Vehicle Control
   
Temperature Control
   
Engineered Solutions
   
All Other
   
Consolidated
 
   
(Unaudited)
 
OPERATING INCOME
                                       
                               
       
GAAP OPERATING INCOME
 
$
16,599

 
$
(1,615)

 
$
4,014

 
$
(3,286)

 
$
15,712

       
     
     
     
     
RESTRUCTURING AND INTEGRATION EXPENSES
   
1,452

   
395

   
-

   
-

   
1,847

CUSTOMER BANKRUPTCY CHARGE
   
5,135

   
1,867

   
-

   
-

   
7,002

OTHER INCOME, NET
   
(70)

   
-

   
-

   
-

   
(70)

       
     
     
     
     
NON-GAAP OPERATING INCOME
 
$
23,116

 
$
647

 
$
4,014

 
$
(3,286)

 
$
24,491

       
     
     
     
     
EBITDA WITHOUT SPECIAL ITEMS
     
     
     
     
     
       
     
     
     
     
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
 
$
13,400

 
$
(2,848)

 
$
3,925

 
$
(3,175)

 
$
11,302

       
     
     
     
     
DEPRECIATION AND AMORTIZATION
   
3,656

   
890

   
2,380

   
477

   
7,403

INTEREST EXPENSE
   
3,140

   
958

   
317

   
(80)

   
4,335

EBITDA
   
20,196

   
(1,000)

   
6,622

   
(2,778)

   
23,040

       
     
     
     
     
RESTRUCTURING AND INTEGRATION EXPENSES
   
1,452

   
395

   
-

   
-

   
1,847

CUSTOMER BANKRUPTCY CHARGE
   
5,135

   
1,867

   
-

   
-

   
7,002

SPECIAL ITEMS
   
6,587

   
2,262

   
-

   
-

   
8,849

       
     
     
     
     
EBITDA WITHOUT SPECIAL ITEMS
 
$
26,783

 
$
1,262

 
$
6,622

 
$
(2,778)

 
$
31,889

% of Net Sales
   
14.1%

   
2.3%

   
10.5%

     
   
10.3%


MANAGEMENT BELIEVES THAT NON-GAAP OPERATING INCOME AND EBITDA WITHOUT SPECIAL ITEMS, EACH OF WHICH ARE NON-GAAP MEASUREMENTS AND ARE ADJUSTED FOR SPECIAL ITEMS, ARE MEANINGFUL TO INVESTORS BECAUSE THEY PROVIDE A VIEW OF THE COMPANY WITH RESPECT TO ONGOING OPERATING RESULTS.  SPECIAL ITEMS REPRESENT SIGNIFICANT CHARGES OR CREDITS THAT ARE IMPORTANT TO AN UNDERSTANDING OF THE COMPANY'S OVERALL OPERATING RESULTS IN THE PERIODS PRESENTED. SUCH NON-GAAP MEASUREMENTS ARE NOT RECOGNIZED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND SHOULD NOT BE VIEWED AS AN ALTERNATIVE TO GAAP MEASURES OF PERFORMANCE.


STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures by Segments

(In thousands)
 
TWELVE MONTHS ENDED DECEMBER 31, 2023
 
   
Vehicle Control
   
Temperature Control
   
Engineered Solutions
   
All Other
   
Consolidated
 
   
(Unaudited)
 
OPERATING INCOME
                             
                               
GAAP OPERATING INCOME
 
$
71,327

 
$
17,343

 
$
19,944

 
$
(15,937)

 
$
92,677
 
       
     
     
     
       
RESTRUCTURING AND INTEGRATION EXPENSES
   
1,276

   
1,108

   
258

   
-

   
2,642
 
CUSTOMER BANKRUPTCY CHARGE
   
-

   
-

   
-

   
-

   
-
 
OTHER (INCOME) EXPENSE, NET
   
(93)

   
-

   
17

   
-

   
(76)

       
     
     
     
       
NON-GAAP OPERATING INCOME
 
$
72,510

 
$
18,451

 
$
20,219

 
$
(15,937)

 
$
95,243
 
       
     
     
     
       
EBITDA WITHOUT SPECIAL ITEMS
     
     
     
     
       
       
     
     
     
       
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
 
$
62,856

 
$
14,678

 
$
20,006

 
$
(15,824)

 
$
81,716
 
       
     
     
     
       
DEPRECIATION AND AMORTIZATION
   
13,877

   
3,424

   
9,966

   
1,755

   
29,022
 
INTEREST EXPENSE
   
9,345

   
3,279

   
2,306

   
(1,643)

   
13,287
 
EBITDA
   
86,078

   
21,381

   
32,278

   
(15,712)

   
124,025
 
       
     
     
     
       
RESTRUCTURING AND INTEGRATION EXPENSES
   
1,276

   
1,108

   
258

   
-

   
2,642
 
SPECIAL ITEMS
   
1,276

   
1,108

   
258

   
-

   
2,642
 
       
     
     
     
       
EBITDA WITHOUT SPECIAL ITEMS
 
$
87,354

 
$
22,489

 
$
32,536

 
$
(15,712)

 
$
126,667
 
% of Net Sales
   
11.8%

   
6.7%

   
11.5%

     
   
9.3%

       
                               
(In thousands)
 
TWELVE MONTHS ENDED DECEMBER 31, 2022
 
   
Vehicle Control
   
Temperature Control
   
Engineered Solutions
   
All Other
   
Consolidated
 
   
(Unaudited)
 
OPERATING INCOME
                                       
                                         
GAAP OPERATING INCOME
 
$
74,153
   
$
26,459
   
$
18,713
   
$
(15,190)

 
$
104,135
 
                                         
RESTRUCTURING AND INTEGRATION EXPENSES
   
1,496
     
395
     
-
     
-
     
1,891
 
CUSTOMER BANKRUPTCY CHARGE
   
5,135
     
1,867
     
-
     
-
     
7,002
 
OTHER INCOME, NET
   
(113)

   
-
     
-
     
-
     
(113)

                                         
NON-GAAP OPERATING INCOME
 
$
80,671
   
$
28,721
   
$
18,713
   
$
(15,190)

 
$
112,915
 
                                         
EBITDA WITHOUT SPECIAL ITEMS
                                       
                                         
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
 
$
67,439
   
$
26,047
   
$
20,103
   
$
(15,257)

 
$
98,332
 
                                         
DEPRECIATION AND AMORTIZATION
   
14,075
     
2,973
     
9,557
     
1,693
     
28,298
 
INTEREST EXPENSE
   
7,816
     
2,312
     
804
     
(315)

   
10,617
 
EBITDA
   
89,330
     
31,332
     
30,464
     
(13,879)

   
137,247
 
                                         
RESTRUCTURING AND INTEGRATION EXPENSES
   
1,496
     
395
     
-
     
-
     
1,891
 
CUSTOMER BANKRUPTCY CHARGE
   
5,135
     
1,867
     
-
     
-
     
7,002
 
SPECIAL ITEMS
   
6,631
     
2,262
     
-
     
-
     
8,893
 
                                         
EBITDA WITHOUT SPECIAL ITEMS
 
$
95,961
   
$
33,594
   
$
30,464
   
$
(13,879)

 
$
146,140
 
% of Net Sales
   
12.8%

   
9.6%

   
11.3%

           
10.7%


MANAGEMENT BELIEVES THAT NON-GAAP OPERATING INCOME AND EBITDA WITHOUT SPECIAL ITEMS, EACH OF WHICH ARE NON-GAAP MEASUREMENTS AND ARE ADJUSTED FOR SPECIAL ITEMS, ARE MEANINGFUL TO INVESTORS BECAUSE THEY PROVIDE A VIEW OF THE COMPANY WITH RESPECT TO ONGOING OPERATING RESULTS.  SPECIAL ITEMS REPRESENT SIGNIFICANT CHARGES OR CREDITS THAT ARE IMPORTANT TO AN UNDERSTANDING OF THE COMPANY'S OVERALL OPERATING RESULTS IN THE PERIODS PRESENTED. SUCH NON-GAAP MEASUREMENTS ARE NOT RECOGNIZED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND SHOULD NOT BE VIEWED AS AN ALTERNATIVE TO GAAP MEASURES OF PERFORMANCE.


STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Balance Sheets

(In thousands)
           
             
   
DECEMBER
   
DECEMBER
 
   
2023
   
2022
 
   
(Unaudited)
       
             
ASSETS
 
             
CASH AND CASH EQUIVALENTS
 
$
32,526
   
$
21,150
 
                 
ACCOUNTS RECEIVABLE, GROSS
   
168,327
     
173,013
 
ALLOWANCE FOR EXPECTED CREDIT LOSSES
   
8,045
     
5,375
 
ACCOUNTS RECEIVABLE, NET
   
160,282
     
167,638
 
                 
INVENTORIES
   
507,075
     
528,715
 
UNRETURNED CUSTOMER INVENTORY
   
18,240
     
19,695
 
OTHER CURRENT ASSETS
   
26,100
     
25,241
 
                 
TOTAL CURRENT ASSETS
   
744,223
     
762,439
 
                 
PROPERTY, PLANT AND EQUIPMENT, NET
   
121,872
     
107,148
 
OPERATING LEASE RIGHT-OF-USE ASSETS
   
100,065
     
49,838
 
GOODWILL
   
134,729
     
132,087
 
OTHER INTANGIBLES, NET
   
92,308
     
100,504
 
DEFERRED INCOME TAXES
   
40,533
     
33,658
 
INVESTMENT IN UNCONSOLIDATED AFFILIATES
   
24,050
     
41,745
 
OTHER ASSETS
   
35,267
     
27,510
 
                 
TOTAL ASSETS
 
$
1,293,047
   
$
1,254,929
 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
                 
CURRENT PORTION OF REVOLVING CREDIT FACILITY
 
$
-
   
$
50,000
 
CURRENT PORTION OF TERM LOAN AND OTHER DEBT
   
5,029
     
5,031
 
ACCOUNTS PAYABLE
   
107,455
     
89,247
 
ACCRUED CUSTOMER RETURNS
   
38,238
     
37,169
 
ACCRUED CORE LIABILITY
   
18,399
     
22,952
 
ACCRUED REBATES
   
42,278
     
37,381
 
PAYROLL AND COMMISSIONS
   
29,561
     
31,361
 
SUNDRY PAYABLES AND ACCRUED EXPENSES
   
63,303
     
49,990
 
                 
TOTAL CURRENT LIABILITIES
   
304,263
     
323,131
 
                 
LONG-TERM DEBT
   
151,182
     
184,589
 
NONCURRENT OPERATING LEASE LIABILITY
   
88,974
     
40,709
 
ACCRUED ASBESTOS LIABILITIES
   
72,013
     
63,305
 
OTHER LIABILITIES
   
25,742
     
22,157
 
                 
TOTAL LIABILITIES
   
642,174
     
633,891
 
                 
TOTAL SMP STOCKHOLDERS' EQUITY
   
635,064
     
610,020
 
NONCONTROLLING INTEREST
   
15,809
     
11,018
 
TOTAL STOCKHOLDERS' EQUITY
   
650,873
     
621,038
 
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
1,293,047
   
$
1,254,929
 


STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Statements of Cash Flows

(In thousands)
           
             
   
TWELVE MONTHS ENDED
 
   
DECEMBER 31,
 
   
2023
   
2022
 
   
(Unaudited)
 
             
CASH FLOWS FROM OPERATING ACTIVITIES
           
             
NET EARNINGS
 
$
34,352

 
$
55,435

ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH
     
     
PROVIDED BY (USED IN) OPERATING ACTIVITIES:
     
     
DEPRECIATION AND AMORTIZATION
   
29,022

   
28,298

LOSS FROM DISCONTINUED OPERATIONS, NET OF TAXES
   
28,996

   
17,691

CUSTOMER BANKRUPTCY CHARGE
   
-

   
7,002

OTHER
   
7,718

   
13,064

CHANGE IN ASSETS AND LIABILITIES:
     
     
ACCOUNTS RECEIVABLE
   
7,965

   
6,916

INVENTORY
   
29,494

   
(67,495)

ACCOUNTS PAYABLE
   
19,645

   
(48,604)

PREPAID EXPENSES AND OTHER CURRENT ASSETS
   
(70)

   
(5,509)

SUNDRY PAYABLES AND ACCRUED EXPENSES
   
(4,284)

   
(29,089)

OTHER
   
(8,578)

   
(5,242)

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
   
144,260

   
(27,533)

       
     
CASH FLOWS FROM INVESTING ACTIVITIES
     
     
       
     
ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES
   
(3,954)

   
(1,934)

CASH ACQUIRED IN STEP ACQUISITION
   
6,779

   
-

CAPITAL EXPENDITURES
   
(28,633)

   
(25,956)

OTHER INVESTING ACTIVITIES
   
108

   
73

NET CASH USED IN INVESTING ACTIVITIES
   
(25,700)

   
(27,817)

       
     
CASH FLOWS FROM FINANCING ACTIVITIES
     
     
       
     
NET CHANGE IN DEBT
   
(83,558)

   
111,307

PURCHASE OF TREASURY STOCK
   
-

   
(29,656)

DIVIDENDS PAID
   
(25,164)

   
(23,428)

DIVIDENDS PAID TO NONCONTROLLING INTEREST
   
(700)

   
-

PAYMENTS OF DEBT ISSUANCE COSTS
   
-

   
(2,128)

OTHER FINANCING ACTIVITIES
   
(189)

   
(595)

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
   
(109,611)

   
55,500

       
     
EFFECT OF EXCHANGE RATE CHANGES ON CASH
   
2,427

   
(755)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
   
11,376

   
(605)

CASH AND CASH EQUIVALENTS at beginning of period
   
21,150

   
21,755

CASH AND CASH EQUIVALENTS at end of period
 
$
32,526

 
$
21,150


 

v3.24.0.1
Document and Entity Information
Feb. 22, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Feb. 22, 2024
Entity File Number 001-04743
Entity Registrant Name STANDARD MOTOR PRODUCTS, INC.
Entity Central Index Key 0000093389
Entity Incorporation, State or Country Code NY
Entity Tax Identification Number 11-1362020
Entity Address, Address Line One 37-18 Northern Boulevard
Entity Address, City or Town Long Island City
Entity Address, State or Province NY
Entity Address, Postal Zip Code 11101
City Area Code 718
Local Phone Number 392-0200
Title of 12(b) Security Common Stock, par value $2.00 per share
Trading Symbol SMP
Security Exchange Name NYSE
Entity Emerging Growth Company false
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false

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