ex99_1.htm

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

	Jennifer Tio
	Maximum Marketing Services, Inc.
	(312) 226-4111 x2449
	Jennifer.tio@maxmarketing.com

Standard Motor Products, Inc. Announces

Third Quarter 2012 Results and a Quarterly Dividend

New York, NY, October 30, 2012......Standard Motor Products, Inc. (NYSE: SMP), an automotive replacement parts manufacturer and distributor, reported today its consolidated financial results for the three months and nine months ended September 30, 2012.

Consolidated net sales for the third quarter of 2012 were $276 million, compared to consolidated net sales of $236.2 million during the comparable quarter in 2011. Earnings from continuing operations for the third quarter of 2012 were $17.4 million or 76 cents per diluted share, compared to $14.1 million or 61 cents per diluted share in the third quarter 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 third quarter of 2012 were $16.8 million or 73 cents, compared to $13.7 million or 59 cents per diluted share in the third quarter of 2011.

37-18 Northern Blvd., Long Island City, NY 11101

(718) 392-0200

www.smpcorp.com

Consolidated net sales for the nine month period ended September 30, 2012 were $756.6 million, compared to consolidated net sales of $700.5 million during the comparable period in 2011. Earnings from continuing operations for the nine month period ended September 30, 2012 were $36.7 million or $1.59 per diluted share, compared to $34.8 million or $1.51 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 nine months ended 2012 and 2011 were $35.7 million or $1.55 per diluted share and $32.1 million or $1.39 per diluted share, respectively.

Commenting on the results, Mr. Lawrence I. Sills, Standard Motor Products’ Chairman and Chief Executive Officer, stated, “We are pleased with our third quarter results. Sales were ahead of 2011 by nearly 17% with the bulk of the increase coming from our recent acquisitions. Excluding the acquisitions, our Temperature Control sales were 3% ahead of the prior year, despite the loss of business from a major account, and Engine Management sales were slightly ahead of 2011.

“We continue to work on margin improvement. Our gross margin is up nearly a full point, both for the quarter and year to date, as we are beginning to achieve product cost savings from our recent acquisitions, as we relocate additional manufacturing hours to low cost areas.

“Our three recent acquisitions—BLD, Forecast Trading, and CompressorWorks—are all doing well. Sales are exceeding expectations; all are profitable; and the integration process is well underway. We look for further savings in 2013.

“The result of our operational improvements and the benefits from our recent acquisitions have driven our operating earnings per share from continuing operations up roughly 24% in the quarter and 12% year-to-date.

“Cash flow also remains strong. During 2012, cash flow from operations permitted us to complete the CompressorWorks acquisition for $38.6 million, repurchase $5 million of our common stock and also pay down $12.8 million in debt. At the end of the third quarter of 2012, total debt was only $60.5 million, after completing the three acquisitions discussed above.”

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 December 3, 2012 to stockholders of record on November 15, 2012.

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Tuesday, October 30, 2012. The dial-in number is 866-952-7523 (domestic) or 785-424-1828 (international). The playback number is 800-753-8546 (domestic) or 402-220-0685 (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						NINE MONTHS ENDED
	SEPTEMBER 30,						SEPTEMBER 30,
	2012			2011			2012			2011
	(Unaudited)						(Unaudited)
NET SALES	$	275,975		$	236,220		$	756,561		$	700,455

COST OF SALES		198,167			171,732			554,859			519,642

GROSS PROFIT		77,808			64,488			201,702			180,813

SELLING, GENERAL & ADMINISTRATIVE EXPENSES		50,937			41,680			142,322			122,336
RESTRUCTURING AND INTEGRATION EXPENSES		642			275			779			743
OTHER INCOME, NET		433			258			454			789

OPERATING INCOME		26,662			22,791			59,055			58,523

OTHER NON-OPERATING INCOME (EXPENSE), NET		-			230			(66	)		673

INTEREST EXPENSE		702			757			2,257			3,159

EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES		25,960			22,264			56,732			56,037

PROVISION FOR INCOME TAXES		8,516			8,164			20,073			21,233

EARNINGS FROM CONTINUING OPERATIONS		17,444			14,100			36,659			34,804

LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES		(604	)		(1,055	)		(1,221	)		(1,714	)

NET EARNINGS	$	16,840		$	13,045		$	35,438		$	33,090



NET EARNINGS PER COMMON SHARE:

BASIC EARNINGS FROM CONTINUING OPERATIONS	$	0.77		$	0.62		$	1.61		$	1.53
DISCONTINUED OPERATION		(0.03	)		(0.05	)		(0.06	)		(0.08	)
NET EARNINGS PER COMMON SHARE - BASIC	$	0.74		$	0.57		$	1.55		$	1.45


DILUTED EARNINGS FROM CONTINUING OPERATIONS	$	0.76		$	0.61		$	1.59		$	1.51
DISCONTINUED OPERATION		(0.02	)		(0.04	)		(0.05	)		(0.08	)
NET EARNINGS PER COMMON SHARE - DILUTED	$	0.74		$	0.57		$	1.54		$	1.43


WEIGHTED AVERAGE NUMBER OF COMMON SHARES		22,691,878			22,863,048			22,810,238			22,812,851
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES		22,877,635			23,042,981			22,999,244			23,299,363

STANDARD MOTOR PRODUCTS, INC.

Reconciliation of GAAP and Non-GAAP Measures

(In thousands, except per share amounts)
	THREE MONTHS ENDED						NINE MONTHS ENDED
	September 30,						September 30,
	2012			2011			2012			2011
	(Unaudited)						(Unaudited)
EARNINGS FROM CONTINUING OPERATIONS

GAAP EARNINGS FROM CONTINUING OPERATIONS	$	17,444		$	14,100		$	36,659		$	34,804

RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)		385			165			467			446
POSTRETIREMENT CURTAILMENT GAIN (NET OF TAX)		-			-			-			(2,188	)
REVERSAL OF LT TAX LIABILITY		-			(454	)		-			(454	)
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD		(774	)		-			(774	)		-
GAIN FROM SALE OF BUILDINGS (NET OF TAX)		(301	)		(157	)		(615	)		(472	)
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS	$	16,754		$	13,654		$	35,737		$	32,136


DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS

GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS	$	0.76		$	0.61		$	1.59		$	1.51

RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)		0.01			-			0.02			0.02
POSTRETIREMENT CURTAILMENT GAIN (NET OF TAX)		-			-			-			(0.10	)
REVERSAL OF LT TAX LIABILITY		-			(0.02	)		-			(0.02	)
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD		(0.03	)		-			(0.03	)		-
GAIN FROM SALE OF BUILDINGS (NET OF TAX)		(0.01	)		-			(0.03	)		(0.02	)

NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS	$	0.73		$	0.59		$	1.55		$	1.39

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)

	September 30,		December 31,
	2012		2011
	(Unaudited)

ASSETS

CASH	$	10,887	$	10,871

ACCOUNTS RECEIVABLE, GROSS		169,059		110,824
ALLOWANCE FOR DOUBTFUL ACCOUNTS		7,711		6,709
ACCOUNTS RECEIVABLE, NET		161,348		104,115

INVENTORIES		246,291		248,097
OTHER CURRENT ASSETS		38,845		37,904

TOTAL CURRENT ASSETS		457,371		400,987

PROPERTY, PLANT AND EQUIPMENT, NET		64,049		64,039
GOODWILL AND OTHER INTANGIBLES, NET		73,320		57,842
OTHER ASSETS		23,920		27,854

TOTAL ASSETS	$	618,660	$	550,722


LIABILITIES AND STOCKHOLDERS' EQUITY

NOTES PAYABLE	$	60,260	$	73,000
CURRENT PORTION OF LONG TERM DEBT		117		109
ACCOUNTS PAYABLE		67,335		50,880
ACCRUED CUSTOMER RETURNS		44,439		25,074
OTHER CURRENT LIABILITIES		94,925		79,818

TOTAL CURRENT LIABILITIES		267,076		228,881

LONG-TERM DEBT		105		190
ACCRUED ASBESTOS LIABILITIES		25,646		26,141
OTHER LIABILITIES		22,465		23,557

TOTAL LIABILITIES		315,292		278,769

TOTAL STOCKHOLDERS' EQUITY		303,368		271,953

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	618,660	$	550,722

STANDARD MOTOR PRODUCTS, INC.

Segment Revenues and Operating Profit

(In thousands)

	THREE MONTHS ENDED										NINE MONTHS ENDED
	September 30,										September 30,
	2012					2011					2012					2011
	(unaudited)										(unaudited)
Revenues
Engine Management	$	175,789				$	165,182				$	511,448				$	489,305
Temperature Control		95,229					68,148					233,556					201,942
All Other		4,957					2,890					11,557					9,208
	$	275,975				$	236,220				$	756,561				$	700,455

Gross Margin
Engine Management	$	51,285		29.2	%	$	43,834		26.5	%	$	140,555		27.5	%	$	123,850		25.3	%
Temperature Control		23,156		24.3	%		17,343		25.4	%		51,604		22.1	%		47,269		23.4	%
All Other		3,367					3,311					9,543					9,694
	$	77,808		28.2	%	$	64,488		27.3	%	$	201,702		26.7	%	$	180,813		25.8	%

Selling, General & Administrative
Engine Management	$	29,870		17.0	%	$	25,226		15.3	%	$	87,201		17.0	%	$	76,483		15.6	%
Temperature Control		14,099		14.8	%		9,557		14.0	%		34,705		14.9	%		29,322		14.5	%
All Other		6,968					6,897					20,416					16,531
	$	50,937		18.5	%	$	41,680		17.6	%	$	142,322		18.8	%	$	122,336		17.5	%


Operating Profit
Engine Management	$	21,415		12.2	%	$	18,608		11.3	%	$	53,354		10.4	%	$	47,367		9.7	%
Temperature Control		9,057		9.5	%		7,786		11.4	%		16,899		7.2	%		17,947		8.9	%
All Other		(3,601	)				(3,586	)				(10,873	)				(6,837	)
		26,871		9.7	%		22,808		9.7	%		59,380		7.8	%		58,477		8.3	%
Restructuring & Integration		(642	)	-0.2	%		(275	)	-0.1	%		(779	)	-0.1	%		(743	)	-0.1	%
Other Income, Net		433		0.2	%		258		0.1	%		454		0.1	%		789		0.1	%
	$	26,662		9.7	%	$	22,791		9.6	%	$	59,055		7.8	%	$	58,523		8.4	%