Standard Motor Products, Inc. Announces First Quarter 2010 Results and a Quarterly Dividend
NEW YORK, May 5 /PRNewswire-FirstCall/ -- 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, 2010.
Consolidated net sales for the first quarter of 2010 were $179.4 million, compared to consolidated net sales of $172.2 million during the comparable quarter in 2009. Earnings from continuing operations for the first quarter of 2010 were $2.9 million or 13 cents per diluted share, compared to $787 thousand or 4 cents per diluted share in the first quarter of 2009. 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 2010 were $3.1 million or 14 cents, compared to $1.3 million or 7 cents per diluted share in the first quarter of 2009.
Commenting on the results, Mr. Lawrence I. Sills, Standard Motor Products' Chairman and Chief Executive Officer, stated, "The positive sales trend that we saw in the latter part of 2009 continued through the first quarter of 2010. Excluding the $6.7 million volume from our European distribution business, which we divested in November of 2009, first quarter sales were 8.4% ahead of the first quarter of 2009. Breaking it down still further, Engine Management sales were up 10.3% while Temperature Control sales, where the season has not yet really begun, was flat.
"Overall, the aftermarket appears quite healthy, and we are seeing Engine Management increases in all three channels of our business—traditional, retail, and OE/OES. The positive sales trend continued into April.
"One of our strategic goals is to increase production in low cost countries. Our facilities in Mexico and Poland are doing well, and we continue to add product lines to them. They now represent over 50% of our total production hours, and we anticipate additional growth in the future.
"Further, we have announced plans to consolidate two of our smaller facilities this year and relocate their operations to other existing locations. Our electronics operation in Hong Kong will be merged with our electronics facility in Orlando, Florida, while our Hayden fan clutch operation in California is moving to our Four Seasons factory in Grapevine, Texas. The combined savings of the two moves is estimated at $4 million annually, with one time costs of $4 million. We expect that the moves will be completed by year-end."
The Board of Directors has approved payment of a quarterly dividend of five cents per share on the common stock outstanding. The dividend will be paid on June 1, 2010 to stockholders of record on May 14, 2010.
Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Wednesday, May 5, 2010. The dial in number is 800-895-1549 (domestic) or 785-424-1057 (international). The playback number is 800-839-5109 (domestic) or 402-220-2688 (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. |
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Consolidated Statements of Operations |
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(In thousands, except per share amounts) |
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THREE MONTHS ENDED |
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MARCH 31, |
||||
2010 |
2009 |
|||
(Unaudited) |
||||
NET SALES |
$ 179,351 |
$ 172,222 |
||
COST OF SALES |
135,533 |
131,329 |
||
GROSS PROFIT |
43,818 |
40,893 |
||
SELLING, GENERAL & ADMINISTRATIVE EXPENSES |
36,665 |
36,019 |
||
RESTRUCTURING AND INTEGRATION EXPENSES |
753 |
1,163 |
||
OPERATING INCOME |
6,400 |
3,711 |
||
OTHER INCOME, NET |
398 |
105 |
||
INTEREST EXPENSE |
1,864 |
2,477 |
||
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES |
4,934 |
1,339 |
||
INCOME TAX EXPENSE |
2,067 |
552 |
||
EARNINGS FROM CONTINUING OPERATIONS |
2,867 |
787 |
||
DISCONTINUED OPERATION, NET OF TAX |
(496) |
(260) |
||
NET EARNINGS |
$ 2,371 |
$ 527 |
||
NET EARNINGS PER COMMON SHARE: |
||||
BASIC EARNINGS FROM CONTINUING OPERATIONS |
$ 0.13 |
$ 0.04 |
||
DISCONTINUED OPERATION |
(0.02) |
(0.01) |
||
NET EARNINGS PER COMMON SHARE - BASIC |
$ 0.11 |
$ 0.03 |
||
DILUTED EARNINGS FROM CONTINUING OPERATIONS |
$ 0.13 |
$ 0.04 |
||
DISCONTINUED OPERATION |
(0.02) |
(0.01) |
||
NET EARNINGS PER COMMON SHARE - DILUTED |
$ 0.11 |
$ 0.03 |
||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES |
22,414,311 |
18,596,218 |
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WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES |
22,495,888 |
18,596,218 |
||
STANDARD MOTOR PRODUCTS, INC. |
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Reconciliation of GAAP and Non-GAAP Measures |
||||
(In thousands, except per share amounts) |
||||
THREE MONTHS ENDED |
||||
MARCH 31, |
||||
2010 |
2009 |
|||
(Unaudited) |
||||
EARNINGS FROM CONTINUING OPERATIONS |
||||
GAAP EARNINGS FROM CONTINUING OPERATIONS |
$ 2,867 |
$ 787 |
||
RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX) |
452 |
707 |
||
LOSS FROM EUROPE DIVESTITURE (NET OF TAX) |
47 |
- |
||
GAIN FROM SALE OF BUILDINGS (NET OF TAX) |
(273) |
(157) |
||
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS |
$ 3,093 |
$ 1,337 |
||
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS |
||||
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS |
$ 0.13 |
$ 0.04 |
||
RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX) |
0.02 |
0.04 |
||
LOSS FROM EUROPE DIVESTITURE (NET OF TAX) |
- |
- |
||
GAIN FROM SALE OF BUILDINGS (NET OF TAX) |
(0.01) |
(0.01) |
||
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS |
$ 0.14 |
$ 0.07 |
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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. |
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STANDARD MOTOR PRODUCTS, INC. |
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Condensed Consolidated Balance Sheets |
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(In thousands) |
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March 31, |
December 31, |
|||
2010 |
2009 |
|||
(Unaudited) |
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ASSETS |
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CASH |
$ 14,734 |
$ 10,618 |
||
ACCOUNTS RECEIVABLE, GROSS |
150,062 |
131,785 |
||
ALLOWANCE FOR DOUBTFUL ACCOUNTS |
7,674 |
6,962 |
||
ACCOUNTS RECEIVABLE, NET |
142,388 |
124,823 |
||
INVENTORIES |
210,090 |
199,752 |
||
ASSETS HELD FOR SALE |
433 |
1,405 |
||
OTHER CURRENT ASSETS |
27,778 |
27,616 |
||
TOTAL CURRENT ASSETS |
395,423 |
364,214 |
||
PROPERTY, PLANT AND EQUIPMENT, NET |
61,967 |
61,478 |
||
GOODWILL AND OTHER INTANGIBLES |
13,240 |
13,805 |
||
OTHER ASSETS |
42,930 |
44,962 |
||
TOTAL ASSETS |
$ 513,560 |
$ 484,459 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
NOTES PAYABLE |
$ 75,707 |
$ 58,430 |
||
CURRENT PORTION OF LONG TERM DEBT |
81 |
67 |
||
ACCOUNTS PAYABLE TRADE |
69,826 |
54,381 |
||
ACCRUED CUSTOMER RETURNS |
26,306 |
20,442 |
||
OTHER CURRENT LIABILITIES |
59,819 |
71,303 |
||
TOTAL CURRENT LIABILITIES |
231,739 |
204,623 |
||
LONG-TERM DEBT |
17,703 |
17,908 |
||
ACCRUED ASBESTOS LIABILITY |
24,472 |
24,874 |
||
OTHER LIABILITIES |
43,397 |
43,176 |
||
TOTAL LIABILITIES |
317,311 |
290,581 |
||
TOTAL STOCKHOLDERS' EQUITY |
196,249 |
193,878 |
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 513,560 |
$ 484,459 |
||
STANDARD MOTOR PRODUCTS, INC. |
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Segment Revenues and Operating Profit |
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(In thousands) |
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THREE MONTHS ENDED |
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March 31, |
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2010 |
2009 |
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(Unaudited) |
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Revenues |
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Engine Management |
$ 137,097 |
$ 124,313 |
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Temperature Control |
40,015 |
40,260 |
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Europe |
- |
6,721 |
||||
All Other |
2,239 |
928 |
||||
$ 179,351 |
$ 172,222 |
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Gross Margin |
||||||
Engine Management |
$ 33,134 |
24.2% |
$ 30,525 |
24.6% |
||
Temperature Control |
8,253 |
20.6% |
6,247 |
15.5% |
||
Europe |
- |
1,828 |
27.2% |
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All Other |
2,431 |
2,293 |
||||
$ 43,818 |
24.4% |
$ 40,893 |
23.7% |
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Selling, General & Administrative |
||||||
Engine Management |
$ 23,154 |
16.9% |
$ 22,002 |
17.7% |
||
Temperature Control |
7,909 |
19.8% |
7,384 |
18.3% |
||
Europe |
- |
1,583 |
23.6% |
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All Other |
5,602 |
5,050 |
||||
36,665 |
20.4% |
36,019 |
20.9% |
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Restructuring & Integration |
753 |
0.4% |
1,163 |
0.7% |
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$ 37,418 |
20.8% |
$ 37,182 |
21.6% |
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Operating Profit |
||||||
Engine Management |
$ 9,980 |
7.3% |
$ 8,524 |
6.9% |
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Temperature Control |
345 |
0.9% |
(1,138) |
-2.8% |
||
Europe |
- |
244 |
3.6% |
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All Other |
(3,172) |
(2,756) |
||||
7,153 |
4.0% |
4,874 |
2.8% |
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Restructuring & Integration |
753 |
0.4% |
1,163 |
0.7% |
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$ 6,400 |
3.6% |
$ 3,711 |
2.1% |
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SOURCE Standard Motor Products, Inc.
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