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 2016 Results and a Quarterly Dividend

New York, NY, May 4, 2016......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, 2016.

Consolidated net sales for the first quarter of 2016 were $238.9 million, compared to consolidated net sales of $227.6 million during the comparable quarter in 2015. Earnings from continuing operations for the first quarter of 2016 were $12.7 million or 55 cents per diluted share, compared to $9.3 million or 40 cents per diluted share in the first quarter of 2015. 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 2016 were $12.6 million or 55 cents per diluted share, compared to $9.2 million or 40 cents per diluted share in the first quarter of 2015.
 
37-18 Northern Blvd., Long Island City, NY  11101
(718) 392-0200
www.smpcorp.com
 
Eric Sills, Standard Motor Products’ Chief Executive Officer and President stated, “We are very pleased with our first quarter results as we achieved a better than 35% increase in net earnings and diluted earnings per share, compared to the first quarter of 2015, on an overall sales increase of 5%.

“Engine Management sales were up about 2%, in line with our forecast of low single digit increases. Temperature Control sales achieved a 16% increase, a result of higher pre-season orders than the year before. We now await the second and third quarters when the bulk of the Temperature Control sales occur and our results tend to be weather dependent.

“The major improvement was in profitability. As we previously reported, results for the full year 2015 were burdened with roughly $10 million in one-time expenses related to startup costs in our line of remanufactured diesel fuel injectors; the carry forward of negative manufacturing variances in Temperature Control; and the costs of winding down our retiree medical program. These costs are now fully behind us and we anticipate a return to historic profitability rates.”

The Board of Directors has approved payment of a quarterly dividend of seventeen cents per share on the common stock outstanding. The dividend will be paid on June 1, 2016 to stockholders of record on May 16, 2016.
 
Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Wednesday, May 4, 2016.  The dial-in number is 800-895-0198 (domestic) or 785-424-1053 (international). The playback number is 800-839-1337 (domestic) or 402-220-0489 (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,
  
   
2016
    
2015
  
   
(Unaudited)
  
NET SALES
  
$
238,911
    
$
227,589
  
                 
COST OF SALES
    
165,915
      
163,700
  
                 
GROSS PROFIT
    
72,996
      
63,889
  
                 
SELLING, GENERAL & ADMINISTRATIVE EXPENSES
    
52,998
      
49,198
  
RESTRUCTURING AND INTEGRATION EXPENSES
    
241
      
57
  
OTHER INCOME, NET
    
262
      
281
  
                 
OPERATING INCOME
    
20,019
      
14,915
  
                 
OTHER NON-OPERATING INCOME, NET
    
333
      
151
  
                 
INTEREST EXPENSE
    
311
      
426
  
                 
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
    
20,041
      
14,640
  
                 
PROVISION FOR INCOME TAXES
    
7,385
      
5,301
  
                 
EARNINGS FROM CONTINUING OPERATIONS
    
12,656
      
9,339
  
                 
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES
    
(452
)
    
(391
)
                 
NET EARNINGS
  
$
12,204
    
$
8,948
  
                 
NET EARNINGS PER COMMON SHARE:
                
                 
BASIC EARNINGS FROM CONTINUING OPERATIONS
  
$
0.56
    
$
0.41
  
DISCONTINUED OPERATION
    
(0.02
)
    
(0.02
)
NET EARNINGS PER COMMON SHARE - BASIC
  
$
0.54
    
$
0.39
  
                 
DILUTED EARNINGS FROM CONTINUING OPERATIONS
  
$
0.55
    
$
0.40
  
DISCONTINUED OPERATION
    
(0.02
)
    
(0.01
)
NET EARNINGS PER COMMON SHARE - DILUTED
  
$
0.53
    
$
0.39
  
                 
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
    
22,642,312
      
22,910,889
  
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES
    
22,944,947
      
23,238,050
  
 
STANDARD MOTOR PRODUCTS, INC.
Segment Revenues and Operating Income

 (In thousands)

   
THREE MONTHS ENDED
MARCH 31,
    
   
2016
      
2015
    
    (Unaudited)     
Revenues
                
Engine Management
  
$
180,681
      
$
177,071
    
Temperature Control
    
56,766
        
48,728
    
All Other
    
1,464
        
1,790
    
   
$
238,911
      
$
227,589
    
                     
Gross Margin
                    
Engine Management
  
$
57,276
  
31.7%
  
$
51,702
  
29.2%
Temperature Control
    
14,090
  
24.8%
    
9,827
  
20.2%
All Other
    
1,630
        
2,360
    
   
$
72,996
  
30.6%
  
$
63,889
  
28.1%
                     
Selling, General & Administrative
                    
Engine Management
  
$
33,057
  
18.3%
  
$
30,004
  
16.9%
Temperature Control
    
11,694
  
20.6%
    
11,190
  
23.0%
All Other
    
8,247
        
8,004
    
   
$
52,998
  
22.2%
  
$
49,198
  
21.6%
                     
Operating Income
                    
Engine Management
  
$
24,219
  
13.4%
  
$
21,698
  
12.3%
Temperature Control
    
2,396
  
4.2%
    
(1,363)
  
-2.8%
All Other
    
(6,617)
        
(5,644)
    
     
19,998
  
8.4%
    
14,691
  
6.5%
Restructuring & Integration
    
(241)
  
-0.1%
    
(57)
  
0.0%
Other Income, Net
    
262
  
0.1%
    
 281
  
0.1%
   
$
20,019
  
8.4%
  
$
14,915
  
6.6%
 
STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures

(In thousands, except per share amounts)

   
THREE MONTHS ENDED
MARCH 31,
  
   
2016
    
2015
  
   
(Unaudited)
  
EARNINGS FROM CONTINUING OPERATIONS
            
             
GAAP EARNINGS FROM CONTINUING OPERATIONS
  
$
12,656
    
$
9,339
  
                 
RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)
    
145
      
34
  
GAIN FROM SALE OF BUILDINGS (NET OF TAX)
    
(157
)
    
(157
)
                 
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS
  
$
12,644
    
$
9,216
  
                 
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
                
               
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
  
$
0.55
    
$
0.40
  
                 
RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)
    
0.01
      
-
  
GAIN FROM SALE OF BUILDINGS (NET OF TAX)
    
(0.01
)
    
-
  
                 
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
  
$
0.55
    
$
0.40
  
                 
OPERATING INCOME
                
                 
GAAP OPERATING INCOME
  
$
20,019
    
$
14,915
  
                 
RESTRUCTURING AND INTEGRATION EXPENSES
    
241
      
57
  
OTHER INCOME, NET
    
(262
)
    
(281
)
                 
NON-GAAP OPERATING INCOME
  
$
19,998
    
$
14,691
  

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,
2016
    
December 31,
2015
  
   
(Unaudited)
        
             
ASSETS
        
             
CASH
  
$
13,360
    
$
18,800
  
                 
ACCOUNTS RECEIVABLE, GROSS
    
147,870
      
128,099
  
ALLOWANCE FOR DOUBTFUL ACCOUNTS
    
4,670
      
4,246
  
ACCOUNTS RECEIVABLE, NET
    
143,200
      
123,853
  
                 
INVENTORIES
    
300,291
      
285,793
  
OTHER CURRENT ASSETS
    
49,499
      
51,294
  
                 
TOTAL CURRENT ASSETS
    
506,350
      
479,740
  
                 
PROPERTY, PLANT AND EQUIPMENT, NET
    
70,301
      
68,882
  
GOODWILL AND OTHER INTANGIBLES, NET
    
82,788
      
84,267
  
OTHER ASSETS
    
45,899
      
48,175
  
                 
TOTAL ASSETS
  
$
705,338
    
$
681,064
  
LIABILITIES AND STOCKHOLDERS' EQUITY
        
             
NOTES PAYABLE
  
$
49,456
    
$
47,427
  
CURRENT PORTION OF LONG TERM DEBT
    
42
      
16
  
ACCOUNTS PAYABLE
    
86,225
      
72,711
  
ACCRUED CUSTOMER RETURNS
    
41,974
      
38,812
  
OTHER CURRENT LIABILITIES
    
77,151
      
84,950
  
                 
TOTAL CURRENT LIABILITIES
    
254,848
      
243,916
  
                 
LONG-TERM DEBT
    
158
      
62
  
ACCRUED ASBESTOS LIABILITIES
    
31,848
      
32,185
  
OTHER LIABILITIES
    
13,330
      
12,922
  
                 
TOTAL LIABILITIES
    
300,184
      
289,085
  
                 
TOTAL STOCKHOLDERS' EQUITY
    
405,154
      
391,979
  
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  
$
705,338
    
$
681,064
  
 
STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Statements of Cash Flows

(In thousands)
 
   
THREE MONTHS ENDED
MARCH 31,
  
   
2016
    
2015
  
   
(Unaudited)
  
             
CASH FLOWS FROM OPERATING ACTIVITIES
            
             
NET EARNINGS
  
$
12,204
    
$
8,948
  
ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
                
DEPRECIATION AND AMORTIZATION
    
4,373
      
4,288
  
OTHER
    
3,323
      
2,100
  
CHANGE IN ASSETS AND LIABILITIES:
                
ACCOUNTS RECEIVABLE
    
(19,281
)
    
(25,289
)
INVENTORY
    
(14,621
)
    
(7,473
)
ACCOUNTS PAYABLE
    
11,431
      
5,255
  
OTHER
    
1,236
      
(1,992
)
NET CASH USED IN OPERATING ACTIVTIES
    
(1,335
)
    
(14,163
)
               
CASH FLOWS FROM INVESTING ACTIVITIES
                
CAPITAL EXPENDITURES
    
(4,099
)
    
(4,009
)
OTHER INVESTING ACTIVITIES
    
2
      
26
  
NET CASH USED IN INVESTING ACTIVITIES
    
(4,097
)
    
(3,983
)
                 
CASH FLOWS FROM FINANCING ACTIVITIES
                
                 
NET CHANGE IN DEBT
    
2,148
      
14,946
  
PURCHASE OF TREASURY STOCK
    
(377
)
    
-
  
DIVIDENDS PAID
    
(3,849
)
    
(3,434
)
OTHER FINANCING ACTIVITIES
    
1,839
      
1,609
  
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES
    
(239
)
    
13,121
  
                 
EFFECT OF EXCHANGE RATE CHANGES ON CASH
    
231
      
(584
)
NET DECREASE IN CASH AND CASH EQUIVALENTS
    
(5,440
)
    
(5,609
)
CASH AND CASH EQUIVALENTS at beginning of period
    
18,800
      
13,728
  
CASH AND CASH EQUIVALENTS at end of period
  
$
13,360
    
$
8,119