2014

Standard Motor Products, Inc. Announces Second Quarter 2012 Results and a Quarterly Dividend

NEW YORK, Aug. 6, 2012 /PRNewswire/ -- 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, 2012.

Consolidated net sales for the second quarter of 2012 were $268.9 million, compared to consolidated net sales of $244 million during the comparable quarter in 2011.  Earnings from continuing operations for the second quarter of 2012 were $13.7 million or 59 cents per diluted share, which was equal to the comparable quarter in 2011. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the second quarter of 2012 were $13.6 million or 59 cents per diluted share, compared to $11.4 million or 49 cents per diluted share in the second quarter of 2011.

Consolidated net sales for the six month period ended June 30, 2012 were $480.6 million, compared to consolidated net sales of $464.2 million during the comparable period in 2011.  Earnings from continuing operations for the six month period ended June 30, 2012 were $19.2 million or 83 cents per diluted share, compared to $20.7 million or 90 cents per diluted share in the comparable period of 2011.  Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the six months ended June 30, 2012 and 2011 were $19 million or 82 cents per diluted share and $18.5 million or 80 cents per diluted share, respectively.

Commenting on the results, Mr. Lawrence I. Sills, Standard Motor Products' Chairman and Chief Executive Officer, stated, "We are obviously pleased with our second quarter results. Aided by our two most recent acquisitions—Forecast Trading and CompressorWorks—sales were 10.2% ahead of the second quarter of 2011, and earnings per share, excluding non-operational items, were 20.4% ahead. Excluding the acquisitions, sales were higher by 1.6% in Engine Management and essentially flat in Temperature Control compared to 2011.

"For the six months, sales were up 3.5%, inclusive of acquisitions, but down 4%, excluding acquisitions. As we have previously stated, sales in the first quarter of 2011 benefited from substantial pipeline orders, and in addition we experienced the loss of certain air conditioning product groups from a major account. The majority of these unfavorable events occurred in the first half of the year allowing more comparable comparisons over the second half of the year.

"The integration of Forecast Trading and CompressorWorks is proceeding well. We have maintained all the major accounts from both companies; sales are achieving expectations; and we have begun work to generate savings in product cost and operating expenses as we integrate the operations. We will achieve some of the savings in 2012, but the bulk of the savings will be reflected in 2013.

"As we have been seeing, it has been a warm summer so far, especially in the center of the country. Temperature Control sales were strong in June and have continued strong into July.

"Cash flow from operations continues to be strong. Our total debt at June 30, 2012 was roughly $97 million, inclusive of approximately $110 million spending for three acquisitions over the past 14 months and mid-year working capital needs for our Temperature Control seasonal business. By year-end, we expect debt levels to decrease from current levels and achieve a Debt:EBITDA ratio of better than 1:1.

"Unfortunately, we have one piece of sad news to report. Mr. Robert Gerrity, an esteemed and valued Board member and Chairman of our Compensation and Management Development Committee, passed away on July 3.  He was an excellent contributor to our Company and will be sorely missed. Mr. Roger Widmann, a Board member since May 2005, has been selected to take over the Chairmanship of this important committee. We have also begun the selection process for a new Board member."

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, 2012 to stockholders of record on August 16, 2012.

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Monday, August 6, 2012.  The dial in number is 800-895-0198 (domestic) or 785-424-1053 (international). The playback number is 800-753-9134 (domestic) or 402-220-2678 (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

SIX MONTHS ENDED


JUNE 30,

JUNE 30,


2012


2011


2012


2011



(Unaudited)

(Unaudited)

NET SALES

$      268,875


$      244,005


$      480,586


$      464,235











COST OF SALES

199,531


180,832


356,692


347,910











GROSS PROFIT

69,344


63,173


123,894


116,325











SELLING, GENERAL & ADMINISTRATIVE EXPENSES

46,609


40,016


91,385


80,656


RESTRUCTURING AND INTEGRATION EXPENSES

13


125


137


468


OTHER INCOME (EXPENSE), NET

(32)


262


21


531











OPERATING INCOME 

22,690


23,294


32,393


35,732











OTHER NON-OPERATING INCOME (EXPENSE), NET

(24)


176


(66)


443











INTEREST EXPENSE

842


1,045


1,555


2,402











EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES

21,824


22,425


30,772


33,773











PROVISION FOR INCOME TAXES

8,103


8,732


11,557


13,069











EARNINGS FROM CONTINUING OPERATIONS

13,721


13,693


19,215


20,704











LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES

(317)


(355)


(617)


(659)











NET EARNINGS 

$         13,404


$         13,338


$         18,598


$         20,045
























































NET EARNINGS PER COMMON SHARE:


















   BASIC EARNINGS FROM
   CONTINUING OPERATIONS

$             0.60


$             0.60


$             0.84


$             0.91


   DISCONTINUED
   OPERATION

(0.01)


(0.02)


(0.03)


(0.03)


   NET EARNINGS PER
   COMMON SHARE - BASIC

$             0.59


$             0.58


$             0.81


$             0.88




















   DILUTED EARNINGS FROM
   CONTINUING OPERATIONS

$             0.59


$             0.59


$             0.83


$             0.90


   DISCONTINUED OPERATION

(0.01)


(0.01)


(0.03)


(0.03)


   NET EARNINGS PER
   COMMON SHARE - DILUTED

$             0.58


$             0.58


$             0.80


$             0.87




















WEIGHTED AVERAGE NUMBER OF COMMON SHARES

22,872,618


22,867,323


22,870,069


22,787,337


WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES

23,104,654


23,196,125


23,111,732


23,438,247





STANDARD MOTOR PRODUCTS, INC.

Reconciliation of GAAP and Non-GAAP Measures



















(In thousands, except per share amounts)
























THREE MONTHS ENDED


SIX MONTHS ENDED



June 30,


June 30,



2012


2011


2012


2011


(Unaudited)

(Unaudited)

EARNINGS FROM CONTINUING OPERATIONS


















GAAP EARNINGS FROM CONTINUING OPERATIONS


$           13,721


$           13,693


$           19,215


$           20,704










RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)


8


75


82


281

POSTRETIREMENT CURTAILMENT GAIN (NET OF TAX)


-


(2,188)


-


(2,188)

GAIN FROM SALE OF BUILDINGS (NET OF TAX)


(157)


(157)


(315)


(315)

NON-GAAP EARNINGS FROM CONTINUING OPERATIONS


$            13,572


$            11,423


$            18,982


$            18,482



















DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS


















GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS


$               0.59


$               0.59


$               0.83


$               0.90










RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)


-


-


-


0.01

POSTRETIREMENT CURTAILMENT GAIN (NET OF TAX)


-


(0.09)


-


(0.09)

GAIN FROM SALE OF BUILDINGS (NET OF TAX)


-


(0.01)


(0.01)


(0.02)










NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS


$               0.59


$               0.49


$               0.82


$               0.80




























MANAGEMENT BELIEVES THAT EARNINGS FROM CONTINUING OPERATIONS AND DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS BEFORE SPECIAL ITEMS, WHICH ARE NON-GAAP MEASUREMENTS, 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)























June 30,




December 31,



2012




2011



(Unaudited)












ASSETS








CASH


$               9,242




$            10,871








ACCOUNTS RECEIVABLE, GROSS


165,261




110,824

ALLOWANCE FOR DOUBTFUL ACCOUNTS


7,505




6,709

ACCOUNTS RECEIVABLE, NET


157,756




104,115








INVENTORIES


265,960




248,097

OTHER CURRENT ASSETS


39,071




37,904








TOTAL CURRENT ASSETS


472,029




400,987








PROPERTY, PLANT AND EQUIPMENT, NET


63,994




64,039

GOODWILL AND OTHER INTANGIBLES, NET


74,710




57,842

OTHER ASSETS


25,377




27,854








TOTAL ASSETS


$          636,110




$          550,722















LIABILITIES AND STOCKHOLDERS' EQUITY















NOTES PAYABLE


$            97,000




$            73,000

CURRENT PORTION OF LONG TERM DEBT


114




109

ACCOUNTS PAYABLE


81,262




50,880

ACCRUED CUSTOMER RETURNS


41,461




25,074

OTHER CURRENT LIABILITIES


80,647




79,818








TOTAL CURRENT LIABILITIES


300,484




228,881








LONG-TERM DEBT


132




190

ACCRUED ASBESTOS LIABILITIES


25,990




26,141

OTHER LIABILITIES


22,713




23,557








 TOTAL LIABILITIES 


349,319




278,769








 TOTAL STOCKHOLDERS' EQUITY 


286,791




271,953








 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 


$          636,110




$          550,722




STANDARD MOTOR PRODUCTS, INC.

Segment Revenues and Operating Profit



















(In thousands)




























THREE MONTHS ENDED

SIX MONTHS ENDED



June 30,

June 30,



2012


2011


2012


2011



(unaudited)

(unaudited)


Revenues









Engine Management

$       172,644


$       159,919


$       335,659


$       324,123


Temperature Control

93,036


79,715


138,327


133,794


All Other

3,195


4,371


6,600


6,318



$        268,875


$        244,005


$        480,586


$        464,235











Gross Margin









Engine Management

$         46,277

26.8%

$         40,012

25.0%

$         89,270

26.6%

$         80,016

24.7%

Temperature Control

19,871

21.4%

19,646

24.6%

28,448

20.6%

29,926

22.4%

All Other

3,196


3,515


6,176


6,383



$           69,344

25.8%

$           63,173

25.9%

$         123,894

25.8%

$         116,325

25.1%










Selling, General & Administrative









Engine Management

$         28,340

16.4%

$         26,435

16.5%

$           57,331

17.1%

$           51,257

15.8%

Temperature Control

12,096

13.0%

10,710

13.4%

20,606

14.9%

19,765

14.8%

All Other

6,173


2,871


13,448


9,634



$           46,609

17.3%

$           40,016

16.4%

$           91,385

19.0%

$           80,656

17.4%



















Operating Profit









Engine Management

$         17,937

10.4%

$         13,577

8.5%

$           31,939

9.5%

$           28,759

8.9%

Temperature Control

7,775

8.4%

8,935

11.2%

7,842

5.7%

10,161

7.6%

All Other

(2,977)


645


(7,272)


(3,251)



22,735

8.5%

23,157

9.5%

32,509

6.8%

35,669

7.7%

Restructuring & Integration

(13)

0.0%

(125)

-0.1%

(137)

0.0%

(468)

-0.1%

Other Income (Expense), Net

(32)

0.0%

262

0.1%

21

0.0%

531

0.1%


$           22,690

8.4%

$           23,294

9.5%

$           32,393

6.7%

$           35,732

7.7%

SOURCE Standard Motor Products, Inc.



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