EX-99.1 2 ex99_1.htm EXHIBIT 99.1
Exhibit 99.1


For Immediate Release
For more information, contact:
James J. Burke
Standard Motor Products, Inc.
(718) 392-0200

Standard Motor Products, Inc. Announces

First Quarter 2019 Results and a Quarterly Dividend

New York, NY, April 30, 2019......Standard Motor Products, Inc. (NYSE: SMP), an automotive replacement parts manufacturer and distributor, reported today its consolidated financial results for the three months ending March 31, 2019.

Consolidated net sales for the first quarter of 2019 were $283.8 million, compared to consolidated net sales of $261.8 million during the comparable quarter in 2018. Earnings from continuing operations for the first quarter of 2019 were $13.1 million or 57 cents per diluted share, compared to $8.6 million or 37 cents per diluted share in the first quarter of 2018. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the first quarter of 2019 were $13.1 million or 57 cents per diluted share, compared to $10.5 million or  46 cents per diluted share in the first quarter of 2018.

37-18 Northern Blvd., Long Island City, NY  11101
(718) 392-0200
www.smpcorp.com
 
Mr. Eric P. Sills, Standard Motor Products’ Chief Executive Officer and President stated, “We are pleased with our first quarter, showing gains in sales and earnings, with strong performance in both of our operating divisions.

“Engine Management sales were up 6.9%. The wire and cable portion was down 3.3%. The non-wire portion of engine management was up 9.3%, benefitting from pipeline orders, the pass-through of tariff costs, an uptick in OE business, and a general improvement in market conditions. Meanwhile, our customer POS remains in the low single digits, which tends to be a better indicator of long term trends.

“Engine Management gross margin was down 30 basis points, attributable to the tariffs being passed through to customers at our cost. We are pleased to announce that the expenses related to the integration of the General Cable wire business are now largely behind us.

“As expected, our Temperature Control sales rebounded nicely, up 14.4%. While a portion of this was attributable to tariff pass-through, the majority was the result of strong pre-season orders as customers rebuilt their shelf inventory after a strong 2018 selling season. That said, while we are obviously pleased with the quarter, the year will still depend on what happens in the summer months.

“Temperature Control gross margin improved 80 basis points, and, as with Engine Management, were dampened due to tariffs being passed through at our cost. As previously discussed, within SG&A, we are anticipating improvements in our distribution expense as we fully implement our new warehouse automation.

“Finally, as previously announced, on April 1st we completed the acquisition of the Pollak business of Stoneridge, Inc.  Although we are still in our first month, we are pleased with what we have seen, and believe it will be an excellent fit for SMP. We will be relocating the acquired production lines to existing facilities over the course of the next year, and expect significant savings once integrated into SMP. In addition, we see future potential as we increase our presence in the heavy duty and commercial vehicle markets.”

The Board of Directors has approved payment of a quarterly dividend of 23 cents per share on the common stock outstanding. The dividend will be paid on June 3, 2019 to stockholders of record on May 15, 2019.

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Tuesday, April 30, 2019.  The dial-in number is 877-876-9176 (domestic) or 785-424-1670 (international). The playback number is 800-925-9416 (domestic) or 402-220-5387 (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

(In thousands, except per share amounts)
  
   
THREE MONTHS ENDED
MARCH 31,
  
   
2019
    
2018
  
   
(Unaudited)
  
NET SALES
  
$
283,766
    
$
261,826
  
                 
COST OF SALES
    
205,803
      
189,237
  
                 
GROSS PROFIT
    
77,963
      
72,589
  
                 
SELLING, GENERAL & ADMINISTRATIVE EXPENSES
    
60,000
      
57,717
  
RESTRUCTURING AND INTEGRATION EXPENSES
    
-
      
2,836
  
OTHER INCOME (EXPENSE), NET
    
(6
)
    
271
  
                 
OPERATING INCOME
    
17,957
      
12,307
  
                 
OTHER NON-OPERATING INCOME (EXPENSE), NET
    
646
      
(31
)
                 
INTEREST EXPENSE
    
1,089
      
632
  
                 
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
    
17,514
      
11,644
  
                 
PROVISION FOR INCOME TAXES
    
4,410
      
3,047
  
                 
EARNINGS FROM CONTINUING OPERATIONS
    
13,104
      
8,597
  
                 
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES
    
(888
)
    
(608
)
                 
NET EARNINGS
  
$
12,216
    
$
7,989
  
                 
NET EARNINGS PER COMMON SHARE:
                
                 
BASIC EARNINGS FROM CONTINUING OPERATIONS
  
$
0.58
    
$
0.38
  
DISCONTINUED OPERATION
    
(0.04
)
    
(0.02
)
NET EARNINGS PER COMMON SHARE - BASIC
  
$
0.54
    
$
0.36
  
                 
DILUTED EARNINGS FROM CONTINUING OPERATIONS
  
$
0.57
    
$
0.37
  
DISCONTINUED OPERATION
    
(0.04
)
    
(0.02
)
NET EARNINGS PER COMMON SHARE - DILUTED
  
$
0.53
    
$
0.35
  
                 
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
    
22,421,795
      
22,498,510
  
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES
    
22,905,364
      
22,967,281
  

STANDARD MOTOR PRODUCTS, INC.
Segment Revenues and Operating Income

(In thousands)
  
   
THREE MONTHS ENDED
MARCH 31,
        
   
2019
          
2018
        
   
(Unaudited)
        
Revenues
                        
Ignition, Emission Control, Fuel & Safety Related System Products
  
$
176,061
          
$
161,077
        
Wire and Cable
    
37,128
            
38,411
        
Engine Management
    
213,189
            
199,488
        
                             
Compressors
    
39,811
            
29,898
        
Other Climate Control Parts
    
29,113
            
30,333
        
Temperature Control
    
68,924
            
60,231
        
                             
All Other
    
1,653
            
2,107
        
Revenues
  
$
283,766
          
$
261,826
        
                             
Gross Margin
                            
Engine Management
  
$
59,693
      
28.0
%
  
$
56,470
      
28.3
%
Temperature Control
    
16,191
      
23.5
%
    
13,667
      
22.7
%
All Other
    
2,079
              
2,452
          
Gross Margin
  
$
77,963
      
27.5
%
  
$
72,589
      
27.7
%
                                 
Selling, General & Administrative
                                
Engine Management
  
$
37,343
      
17.5
%
  
$
36,264
      
18.2
%
Temperature Control
    
14,141
      
20.5
%
    
12,829
      
21.3
%
All Other
    
8,516
              
8,624
          
Selling, General & Administrative
  
$
60,000
      
21.1
%
  
$
57,717
      
22.0
%
                                 
Operating Income
                                
Engine Management
  
$
22,350
      
10.5
%
  
$
20,206
      
10.1
%
Temperature Control
    
2,050
      
3.0
%
    
838
      
1.4
%
All Other
    
(6,437
)
            
(6,172
)
        
Subtotal
    
17,963
      
6.3
%
    
14,872
      
5.7
%
Restructuring & Integration
    
-
      
0.0
%
    
(2,836
)
    
-1.1
%
Other Income (Expense), Net
    
(6
)
    
0.0
%
    
271
      
0.1
%
Operating Income
  
$
17,957
      
6.3
%
  
$
12,307
      
4.7
%

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

(In thousands, except per share amounts)
  
   
THREE MONTHS ENDED
MARCH 31,
  
   
2019
    
2018
  
   
(Unaudited)
  
EARNINGS FROM CONTINUING OPERATIONS
            
             
GAAP EARNINGS FROM CONTINUING OPERATIONS
  
$
13,104
    
$
8,597
  
                 
RESTRUCTURING AND INTEGRATION EXPENSES
    
-
      
2,836
  
GAIN FROM SALE OF BUILDINGS
    
-
      
(218
)
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS
    
-
      
(681
)
                 
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS
  
$
13,104
    
$
10,534
  
                 
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
                
                 
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
  
$
0.57
    
$
0.37
  
                 
RESTRUCTURING AND INTEGRATION EXPENSES
    
-
      
0.12
  
GAIN FROM SALE OF BUILDINGS
    
-
      
(0.01
)
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS
    
-
      
(0.02
)
                 
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
  
$
0.57
    
$
0.46
  
                 
OPERATING INCOME
                
                 
GAAP OPERATING INCOME
  
$
17,957
    
$
12,307
  
                 
RESTRUCTURING AND INTEGRATION EXPENSES
    
-
      
2,836
  
OTHER (INCOME) EXPENSE, NET
    
6
      
(271
)
                 
NON-GAAP OPERATING INCOME
  
$
17,963
    
$
14,872
  

MANAGEMENT BELIEVES THAT EARNINGS FROM CONTINUING OPERATIONS, DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS, AND OPERATING INCOME, 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)
  
   
March 31,
2019
    
December 31,
2018
  
   
(Unaudited)
        
             
ASSETS
  
             
CASH
  
$
11,746
    
$
11,138
  
                 
ACCOUNTS RECEIVABLE, GROSS
    
180,807
      
163,222
  
ALLOWANCE FOR DOUBTFUL ACCOUNTS
    
6,643
      
5,687
  
ACCOUNTS RECEIVABLE, NET
    
174,164
      
157,535
  
                 
INVENTORIES
    
365,251
      
349,811
  
UNRETURNED CUSTOMER INVENTORY
    
19,784
      
20,484
  
OTHER CURRENT ASSETS
    
9,412
      
7,256
  
                 
TOTAL CURRENT ASSETS
    
580,357
      
546,224
  
                 
PROPERTY, PLANT AND EQUIPMENT, NET
    
88,850
      
90,754
  
OPERATING LEASE RIGHT-OF-USE ASSETS
    
37,301
      
-
  
GOODWILL
    
67,370
      
67,321
  
OTHER INTANGIBLES, NET
    
46,581
      
48,411
  
DEFERRED INCOME TAXES
    
41,126
      
42,334
  
INVESTMENT IN UNCONSOLIDATED AFFILIATES
    
33,703
      
32,469
  
OTHER ASSETS
    
17,446
      
15,619
  
                 
TOTAL ASSETS
  
$
912,734
    
$
843,132
  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
  
                 
NOTES PAYABLE
  
$
78,717
    
$
43,689
  
CURRENT PORTION OF OTHER DEBT
    
5,023
      
5,377
  
ACCOUNTS PAYABLE
    
96,878
      
94,357
  
ACCRUED CUSTOMER RETURNS
    
55,318
      
57,433
  
ACCRUED CORE LIABILITY
    
28,260
      
31,263
  
OTHER CURRENT LIABILITIES
    
81,374
      
80,467
  
                 
TOTAL CURRENT LIABILITIES
    
345,570
      
312,586
  
                 
OTHER LONG-TERM DEBT
    
161
      
153
  
NONCURRENT OPERATING LEASE LIABILITIES
    
30,130
      
-
  
ACCRUED ASBESTOS LIABILITIES
    
43,837
      
45,117
  
OTHER LIABILITIES
    
19,996
      
18,075
  
                 
TOTAL LIABILITIES
    
439,694
      
375,931
  
 
                
TOTAL STOCKHOLDERS' EQUITY
    
473,040
      
467,201
  
 
                
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  
$
912,734
    
$
843,132
  

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

(In thousands)
  
   
THREE MONTHS ENDED
MARCH 31,
  
   
2019
    
2018
  
   
(Unaudited)
  
CASH FLOWS FROM OPERATING ACTIVITIES
            
NET EARNINGS
  
$
12,216
    
$
7,989
  
ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH USED IN OPERATING ACTIVITIES:
                
DEPRECIATION AND AMORTIZATION
    
6,178
      
6,016
  
OTHER
    
5,303
      
4,459
  
CHANGE IN ASSETS AND LIABILITIES:
                
ACCOUNTS RECEIVABLE
    
(22,252
)
    
(20,367
)
INVENTORY
    
(14,656
)
    
(3,390
)
ACCOUNTS PAYABLE
    
1,181
      
10,674
  
PREPAID EXPENSES AND OTHER CURRENT ASSETS
    
(282
)
    
1,559
  
SUNDRY PAYABLES AND ACCRUED EXPENSES
    
(12,911
)
    
(12,997
)
OTHER
    
(1,503
)
    
(95
)
NET CASH USED IN OPERATING ACTIVITIES
    
(26,726
)
    
(6,152
)
                 
CASH FLOWS FROM INVESTING ACTIVITIES
                
ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES
    
-
      
(6,472
)
NET PROCEEDS FROM SALE OF FACILITY
    
4,801
      
-
  
CAPITAL EXPENDITURES
    
(3,084
)
    
(6,903
)
OTHER INVESTING ACTIVITIES
    
29
      
-
  
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
    
1,746
      
(13,375
)
                 
CASH FLOWS FROM FINANCING ACTIVITIES
                
NET CHANGE IN DEBT
    
34,758
      
34,054
  
PURCHASE OF TREASURY STOCK
    
(5,835
)
    
(3,221
)
DIVIDENDS PAID
    
(5,159
)
    
(4,721
)
OTHER FINANCING ACTIVITIES
    
1,409
      
1,885
  
NET CASH PROVIDED BY FINANCING ACTIVITIES
    
25,173
      
27,997
  
                 
EFFECT OF EXCHANGE RATE CHANGES ON CASH
    
415
      
433
  
NET INCREASE IN CASH AND CASH EQUIVALENTS
    
608
      
8,903
  
CASH AND CASH EQUIVALENTS at beginning of period
    
11,138
      
17,323
  
CASH AND CASH EQUIVALENTS at end of period
  
$
11,746
    
$
26,226