Standard Motor Products, Inc. Announces Third Quarter 2024 Results and Quarterly Dividend
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Net Sales of$399.3M , up 3.3%, with all three operating segments showing increases -
Adjusted diluted earnings per share of
$1.28 , up 15% - Adjusted EBITDA up 80 basis points to 12.2%
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Nissens Automotive acquisition expected to close in near future - Full year guidance remains unchanged
Net sales for the third quarter of 2024 were
Consolidated net sales for the nine months ended
Mr.
By segment, Vehicle Control sales increased 5.2% in the quarter against an easy comparison in 2023. Sales in the segment are up 2.8% on a year-to-date basis as customer demand remains positive, indicating general market strength as our trading partners make ongoing investments to their assortments in our products.
Strong Temperature Control demand continued as sales grew 1.9% in the quarter against last year's record results. The segment has performed well year-to-date with sales up nearly 10% over last year, as the selling season started early this year and remained strong throughout the summer.
Our Engineered Solutions segment continues to perform well, as sales increased nearly 1% in the quarter against a very difficult comparison to last year's quarterly increase of over 8%, and are up 3.8% year-to-date. Modest softening in some end markets is being more than offset by the ramp up of recent wins, and while we expect ongoing market headwinds related to certain customers' production schedules, we remain quite bullish as we see ongoing cross-selling opportunities and strengthening customer relationships.
Looking at profitability, Adjusted EBITDA improved from the third quarter last year, up 80 basis points to 12.2%. Margin improvement resulted from leverage gained on the solid sales performance, as well as from various cost containment actions to offset inflationary pressures, including the benefit from our previously disclosed early retirement program. We remain focused on our cost savings initiatives and continue to look at ways to drive margin improvement going forward.
From a cash flow perspective, we were pleased with the impact of our initiatives on managing both our inventory and borrowing levels. At quarter-end, our inventory was
With respect to our previously announced acquisition of
Regarding our sales and profit expectations for the full year of 2024, we anticipate sales growth will be in the low- to mid-single digits, and Adjusted EBITDA will be in a range of 9.0-9.5%, consistent with what we noted previously, and excludes any potential impact from the acquisition of
The Board of Directors has approved payment of a quarterly dividend of
In closing,
Conference Call
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995,
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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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NINE MONTHS ENDED |
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2024 |
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2023 |
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2024 |
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2023 |
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(Unaudited) |
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(Unaudited) |
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$ 399,265 |
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$ 386,413 |
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COST OF SALES |
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277,899 |
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271,653 |
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798,162 |
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760,220 |
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GROSS PROFIT |
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121,366 |
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114,760 |
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322,335 |
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307,296 |
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SELLING, GENERAL & ADMINISTRATIVE EXPENSES |
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81,204 |
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79,781 |
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239,822 |
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223,257 |
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RESTRUCTURING AND INTEGRATION EXPENSES |
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3,023 |
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177 |
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5,774 |
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1,383 |
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OTHER INCOME, NET |
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- |
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4 |
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5 |
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74 |
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OPERATING INCOME |
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37,139 |
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34,806 |
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76,744 |
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82,730 |
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OTHER NON-OPERATING INCOME, NET |
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2,129 |
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1,732 |
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5,147 |
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2,759 |
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INTEREST EXPENSE |
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3,145 |
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3,621 |
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7,964 |
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10,766 |
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EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES |
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36,123 |
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32,917 |
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73,927 |
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74,723 |
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PROVISION FOR INCOME TAXES |
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9,267 |
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7,995 |
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18,718 |
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18,656 |
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EARNINGS FROM CONTINUING OPERATIONS |
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26,856 |
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24,922 |
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55,209 |
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56,067 |
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LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES |
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(22,771) |
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(18,200) |
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(24,727) |
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(28,201) |
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NET EARNINGS |
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4,085 |
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6,722 |
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30,482 |
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27,866 |
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NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST |
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275 |
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63 |
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785 |
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152 |
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NET EARNINGS ATTRIBUTABLE TO SMP (a) |
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$ 3,810 |
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$ 6,659 |
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$ 29,697 |
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$ 27,714 |
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NET EARNINGS ATTRIBUTABLE TO SMP |
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EARNINGS FROM CONTINUING OPERATIONS |
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$ 26,581 |
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$ 24,859 |
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$ 54,424 |
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$ 55,915 |
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LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES |
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(22,771) |
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(18,200) |
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(24,727) |
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(28,201) |
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TOTAL |
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$ 3,810 |
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$ 6,659 |
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$ 29,697 |
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$ 27,714 |
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NET EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SMP |
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BASIC EARNINGS FROM CONTINUING OPERATIONS |
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$ 1.22 |
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$ 1.14 |
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$ 2.50 |
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$ 2.58 |
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DISCONTINUED OPERATION |
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(1.04) |
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(0.84) |
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(1.14) |
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(1.30) |
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NET EARNINGS PER COMMON SHARE - BASIC |
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$ 0.18 |
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$ 0.31 |
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$ 1.36 |
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$ 1.28 |
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DILUTED EARNINGS FROM CONTINUING OPERATIONS |
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$ 1.20 |
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$ 1.12 |
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$ 2.45 |
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$ 2.52 |
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DISCONTINUED OPERATION |
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(1.03) |
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(0.82) |
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(1.11) |
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(1.27) |
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NET EARNINGS PER COMMON SHARE - DILUTED |
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$ 0.17 |
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$ 0.30 |
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$ 1.34 |
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$ 1.25 |
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WEIGHTED AVERAGE NUMBER OF COMMON SHARES |
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21,716,083 |
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21,727,119 |
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21,802,164 |
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21,675,699 |
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WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES |
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22,154,222 |
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22,253,723 |
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22,225,444 |
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22,198,131 |
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(a) "SMP" refers to |
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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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NINE MONTHS ENDED |
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2024 |
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2023 |
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2024 |
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2023 |
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(Unaudited) |
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(Unaudited) |
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Revenues |
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Engine Management (Ignition, Emissions |
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and Fuel Delivery) |
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$ 121,432 |
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$ 113,188 |
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$ 353,046 |
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$ 342,860 |
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Electrical and Safety |
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63,237 |
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62,049 |
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172,772 |
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166,720 |
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Wire sets and other |
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16,208 |
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15,700 |
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49,324 |
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49,723 |
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Vehicle Control |
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200,877 |
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190,937 |
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575,142 |
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559,303 |
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- |
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AC System Components |
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95,698 |
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94,385 |
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245,628 |
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217,913 |
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Other Thermal Components |
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30,287 |
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29,258 |
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76,446 |
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75,210 |
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Temperature Control |
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125,985 |
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123,643 |
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322,074 |
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293,123 |
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Commercial Vehicle |
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22,625 |
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18,701 |
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69,016 |
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59,158 |
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Construction / Agriculture |
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8,082 |
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9,974 |
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27,631 |
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32,804 |
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Light Vehicle |
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24,287 |
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24,123 |
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70,776 |
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71,123 |
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All Other |
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17,409 |
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19,035 |
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55,858 |
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52,005 |
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Engineered Solutions |
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72,403 |
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71,833 |
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223,281 |
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215,090 |
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- |
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Revenues |
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$ 399,265 |
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$ 386,413 |
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$ 1,120,497 |
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$ 1,067,516 |
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Gross Margin |
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Vehicle Control |
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$ 65,652 |
32.7 % |
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$ 60,865 |
31.9 % |
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$ 184,520 |
32.1 % |
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$ 179,446 |
32.1 % |
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Temperature Control |
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42,323 |
33.6 % |
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37,785 |
30.6 % |
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98,621 |
30.6 % |
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83,452 |
28.5 % |
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Engineered Solutions |
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13,391 |
18.5 % |
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16,110 |
22.4 % |
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39,194 |
17.6 % |
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44,398 |
20.6 % |
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All Other |
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- |
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- |
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- |
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- |
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Gross Margin |
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$ 121,366 |
30.4 % |
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$ 114,760 |
29.7 % |
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$ 322,335 |
28.8 % |
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$ 307,296 |
28.8 % |
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Selling, General & Administrative |
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Vehicle Control |
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$ 43,021 |
21.4 % |
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$ 42,752 |
22.4 % |
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$ 130,123 |
22.6 % |
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$ 124,308 |
22.2 % |
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Temperature Control |
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25,876 |
20.5 % |
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24,624 |
19.9 % |
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66,641 |
20.7 % |
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61,736 |
21.1 % |
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Engineered Solutions |
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8,124 |
11.2 % |
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8,832 |
12.3 % |
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25,491 |
11.4 % |
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25,222 |
11.7 % |
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All Other |
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5,190 |
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3,573 |
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16,163 |
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11,991 |
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Subtotal |
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$ 82,211 |
20.6 % |
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$ 79,781 |
20.6 % |
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$ 238,418 |
21.3 % |
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$ 223,257 |
20.9 % |
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Acquisition Expenses |
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(1,007) |
-0.3 % |
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- |
0.0 % |
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1,404 |
0.1 % |
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- |
0.0 % |
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Selling, General & Administrative |
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$ 81,204 |
20.3 % |
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$ 79,781 |
20.6 % |
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$ 239,822 |
21.4 % |
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$ 223,257 |
20.9 % |
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Operating Income |
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Vehicle Control |
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$ 22,631 |
11.3 % |
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$ 18,113 |
9.5 % |
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$ 54,397 |
9.5 % |
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$ 55,138 |
9.9 % |
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Temperature Control |
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16,447 |
13.1 % |
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13,161 |
10.6 % |
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31,980 |
9.9 % |
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21,716 |
7.4 % |
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Engineered Solutions |
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5,267 |
7.3 % |
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7,278 |
10.1 % |
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13,703 |
6.1 % |
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19,176 |
8.9 % |
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All Other |
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(5,190) |
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(3,573) |
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(16,163) |
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(11,991) |
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Subtotal |
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$ 39,155 |
9.8 % |
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$ 34,979 |
9.1 % |
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$ 83,917 |
7.5 % |
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$ 84,039 |
7.9 % |
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Restructuring & Integration |
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(3,023) |
-0.8 % |
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(177) |
0.0 % |
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(5,774) |
-0.5 % |
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(1,383) |
-0.1 % |
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Acquisition Expenses |
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1,007 |
0.3 % |
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- |
0.0 % |
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(1,404) |
-0.1 % |
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- |
0.0 % |
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Other Income, Net |
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- |
0.0 % |
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4 |
0.0 % |
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5 |
0.0 % |
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74 |
0.0 % |
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Operating Income |
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$ 37,139 |
9.3 % |
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$ 34,806 |
9.0 % |
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$ 76,744 |
6.8 % |
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$ 82,730 |
7.7 % |
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Reconciliation of GAAP and Non-GAAP Measures |
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(In thousands, except per share amounts) |
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THREE MONTHS ENDED |
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NINE MONTHS ENDED |
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2024 |
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2023 |
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2024 |
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2023 |
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(Unaudited) |
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(Unaudited) |
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EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP |
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GAAP EARNINGS FROM CONTINUING OPERATIONS |
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$ 26,581 |
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$ 24,859 |
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$ 54,424 |
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$ 55,915 |
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RESTRUCTURING AND INTEGRATION EXPENSES |
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3,023 |
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177 |
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5,774 |
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1,383 |
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ACQUISITION EXPENSES |
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(207) |
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- |
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2,204 |
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- |
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CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD |
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(380) |
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(312) |
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(380) |
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(312) |
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INCOME TAX EFFECT RELATED TO RECONCILING ITEMS |
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(732) |
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(46) |
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(2,074) |
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(360) |
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NON-GAAP EARNINGS FROM CONTINUING OPERATIONS |
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$ 28,285 |
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$ 24,678 |
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$ 59,948 |
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$ 56,626 |
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DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP |
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GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS |
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$ 1.20 |
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$ 1.12 |
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$ 2.45 |
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$ 2.52 |
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RESTRUCTURING AND INTEGRATION EXPENSES |
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0.14 |
|
- |
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0.26 |
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0.06 |
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ACQUISITION EXPENSES |
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(0.01) |
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- |
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0.10 |
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- |
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CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD |
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(0.02) |
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(0.01) |
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(0.02) |
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(0.01) |
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INCOME TAX EFFECT RELATED TO RECONCILING ITEMS |
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(0.03) |
|
- |
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(0.09) |
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(0.02) |
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NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS |
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$ 1.28 |
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$ 1.11 |
|
$ 2.70 |
|
$ 2.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING INCOME |
|
$ 37,139 |
|
$ 34,806 |
|
$ 76,744 |
|
$ 82,730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
3,023 |
|
177 |
|
5,774 |
|
1,383 |
|
|
|
|
|
|
|
ACQUISITION EXPENSES |
|
(1,007) |
|
- |
|
1,404 |
|
- |
|
|
|
|
|
|
|
OTHER (INCOME) EXPENSE, NET |
|
- |
|
(4) |
|
(5) |
|
(74) |
|
LAST TWELVE MONTHS ENDED |
|
YEAR ENDED |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
NON-GAAP OPERATING INCOME |
|
$ 39,155 |
|
$ 34,979 |
|
$ 83,917 |
|
$ 84,039 |
|
2024 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
||
|
EBITDA WITHOUT SPECIAL ITEMS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES |
|
$ 36,123 |
|
$ 32,917 |
|
$ 73,927 |
|
$ 74,723 |
|
$ 80,920 |
|
$ 86,025 |
|
$ 81,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION AND AMORTIZATION |
|
7,389 |
|
7,332 |
|
22,008 |
|
21,461 |
|
29,569 |
|
28,864 |
|
29,022 |
|
INTEREST EXPENSE |
|
3,145 |
|
3,621 |
|
7,964 |
|
10,766 |
|
10,485 |
|
15,101 |
|
13,287 |
|
EBITDA |
|
46,657 |
|
43,870 |
|
103,899 |
|
106,950 |
|
120,974 |
|
129,990 |
|
124,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
3,023 |
|
177 |
|
5,774 |
|
1,383 |
|
7,033 |
|
3,230 |
|
2,642 |
|
ACQUISITION EXPENSES |
|
(1,007) |
|
- |
|
1,404 |
|
- |
|
1,404 |
|
- |
|
- |
|
CUSTOMER BANKRUPTCY CHARGE |
|
- |
|
- |
|
- |
|
- |
|
- |
|
7,002 |
|
- |
|
SPECIAL ITEMS |
|
2,016 |
|
177 |
|
7,178 |
|
1,383 |
|
8,437 |
|
10,232 |
|
2,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
$ 48,673 |
|
$ 44,047 |
|
$ 111,077 |
|
$ 108,333 |
|
$ 129,411 |
|
$ 140,222 |
|
$ 126,667 |
|
|
||||||||||||||
|
MANAGEMENT BELIEVES THAT NON-GAAP EARNINGS FROM CONTINUING OPERATIONS AND NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS WHICH ARE ATTRIBUTABLE TO SMP, AND NON-GAAP OPERATING INCOME AND EBITDA WITHOUT SPECIAL ITEMS, 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. |
|
|
|||||||||||
|
Reconciliation of GAAP and Non-GAAP Measures by Segments |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
THREE MONTHS ENDED |
|
||||||||
|
|
|
Vehicle Control |
|
Temperature |
|
Engineered |
|
All Other |
|
Consolidated |
|
|
|
|
(Unaudited) |
|
||||||||
|
OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING INCOME |
|
$ 21,029 |
|
$ 16,074 |
|
$ 5,010 |
|
$ (4,974) |
|
$ 37,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
1,602 |
|
373 |
|
257 |
|
791 |
|
3,023 |
|
|
ACQUISITION EXPENSES |
|
- |
|
- |
|
- |
|
(1,007) |
|
(1,007) |
|
|
OTHER EXPENSE, NET |
|
- |
|
- |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP OPERATING INCOME |
|
$ 22,631 |
|
$ 16,447 |
|
$ 5,267 |
|
$ (5,190) |
|
$ 39,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES |
|
$ 18,844 |
|
$ 16,530 |
|
$ 5,607 |
|
$ (4,858) |
|
$ 36,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION AND AMORTIZATION |
|
3,850 |
|
802 |
|
2,308 |
|
429 |
|
7,389 |
|
|
INTEREST EXPENSE |
|
2,166 |
|
791 |
|
434 |
|
(246) |
|
3,145 |
|
|
EBITDA |
|
24,860 |
|
18,123 |
|
8,349 |
|
(4,675) |
|
46,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
1,602 |
|
373 |
|
257 |
|
791 |
|
3,023 |
|
|
ACQUISITION EXPENSES |
|
- |
|
- |
|
- |
|
(1,007) |
|
(1,007) |
|
|
SPECIAL ITEMS |
|
1,602 |
|
373 |
|
257 |
|
(216) |
|
2,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
$ 26,462 |
|
$ 18,496 |
|
$ 8,606 |
|
$ (4,891) |
|
$ 48,673 |
|
|
% of |
|
13.2 % |
|
14.7 % |
|
11.9 % |
|
|
|
12.2 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
THREE MONTHS ENDED |
|
||||||||
|
|
|
Vehicle Control |
|
Temperature |
|
Engineered |
|
All Other |
|
Consolidated |
|
|
|
|
(Unaudited) |
|
||||||||
|
OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING INCOME |
|
$ 18,071 |
|
$ 13,054 |
|
$ 7,254 |
|
$ (3,573) |
|
$ 34,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
45 |
|
107 |
|
25 |
|
- |
|
177 |
|
|
OTHER INCOME, NET |
|
(3) |
|
- |
|
(1) |
|
- |
|
(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP OPERATING INCOME |
|
$ 18,113 |
|
$ 13,161 |
|
$ 7,278 |
|
$ (3,573) |
|
$ 34,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES |
|
$ 15,702 |
|
$ 12,780 |
|
$ 8,078 |
|
$ (3,643) |
|
$ 32,917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION AND AMORTIZATION |
|
3,482 |
|
908 |
|
2,450 |
|
492 |
|
7,332 |
|
|
INTEREST EXPENSE |
|
2,563 |
|
942 |
|
620 |
|
(504) |
|
3,621 |
|
|
EBITDA |
|
21,747 |
|
14,630 |
|
11,148 |
|
(3,655) |
|
43,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
45 |
|
107 |
|
25 |
|
- |
|
177 |
|
|
SPECIAL ITEMS |
|
45 |
|
107 |
|
25 |
|
- |
|
177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
$ 21,792 |
|
$ 14,737 |
|
$ 11,173 |
|
$ (3,655) |
|
$ 44,047 |
|
|
% of |
|
11.4 % |
|
11.9 % |
|
15.6 % |
|
|
|
11.4 % |
|
|
|
|||||||||||
|
MANAGEMENT BELIEVES THAT NON-GAAP OPERATING INCOME AND EBITDA WITHOUT SPECIAL ITEMS, 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. |
|
|
|||||||||||
|
Reconciliation of GAAP and Non-GAAP Measures by Segments |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
NINE MONTHS ENDED |
|
||||||||
|
|
|
Vehicle Control |
|
Temperature |
|
Engineered |
|
All Other |
|
Consolidated |
|
|
|
|
(Unaudited) |
|
||||||||
|
OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING INCOME |
|
$ 51,685 |
|
$ 31,302 |
|
$ 13,054 |
|
$ (19,297) |
|
$ 76,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
2,712 |
|
678 |
|
654 |
|
1,730 |
|
5,774 |
|
|
ACQUISITION EXPENSES |
|
- |
|
- |
|
- |
|
1,404 |
|
1,404 |
|
|
OTHER INCOME, NET |
|
- |
|
- |
|
(5) |
|
- |
|
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP OPERATING INCOME |
|
$ 54,397 |
|
$ 31,980 |
|
$ 13,703 |
|
$ (16,163) |
|
$ 83,917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES |
|
$ 46,226 |
|
$ 32,396 |
|
$ 14,482 |
|
$ (19,177) |
|
$ 73,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION AND AMORTIZATION |
|
10,981 |
|
2,480 |
|
7,240 |
|
1,307 |
|
22,008 |
|
|
INTEREST EXPENSE |
|
5,492 |
|
2,048 |
|
1,804 |
|
(1,380) |
|
7,964 |
|
|
EBITDA |
|
62,699 |
|
36,924 |
|
23,526 |
|
(19,250) |
|
103,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
2,712 |
|
678 |
|
654 |
|
1,730 |
|
5,774 |
|
|
ACQUISITION EXPENSES |
|
- |
|
- |
|
- |
|
1,404 |
|
1,404 |
|
|
SPECIAL ITEMS |
|
2,712 |
|
678 |
|
654 |
|
3,134 |
|
7,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
$ 65,411 |
|
$ 37,602 |
|
$ 24,180 |
|
$ (16,116) |
|
$ 111,077 |
|
|
% of |
|
11.4 % |
|
11.7 % |
|
10.8 % |
|
|
|
9.9 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
NINE MONTHS ENDED |
|
||||||||
|
|
|
Vehicle Control |
|
Temperature |
|
Engineered |
|
All Other |
|
Consolidated |
|
|
|
|
(Unaudited) |
|
||||||||
|
OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING INCOME |
|
$ 54,719 |
|
$ 20,938 |
|
$ 19,064 |
|
$ (11,991) |
|
$ 82,730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
484 |
|
778 |
|
121 |
|
- |
|
1,383 |
|
|
OTHER INCOME, NET |
|
(65) |
|
- |
|
(9) |
|
- |
|
(74) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP OPERATING INCOME |
|
$ 55,138 |
|
$ 21,716 |
|
$ 19,176 |
|
$ (11,991) |
|
$ 84,039 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES |
|
$ 47,994 |
|
$ 19,144 |
|
$ 19,611 |
|
$ (12,026) |
|
$ 74,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION AND AMORTIZATION |
|
10,267 |
|
2,439 |
|
7,417 |
|
1,338 |
|
21,461 |
|
|
INTEREST EXPENSE |
|
7,608 |
|
2,677 |
|
1,616 |
|
(1,135) |
|
10,766 |
|
|
EBITDA |
|
65,869 |
|
24,260 |
|
28,644 |
|
(11,823) |
|
106,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
484 |
|
778 |
|
121 |
|
- |
|
1,383 |
|
|
SPECIAL ITEMS |
|
484 |
|
778 |
|
121 |
|
- |
|
1,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
$ 66,353 |
|
$ 25,038 |
|
$ 28,765 |
|
$ (11,823) |
|
$ 108,333 |
|
|
% of |
|
11.9 % |
|
8.5 % |
|
13.4 % |
|
|
|
10.1 % |
|
|
|
|||||||||||
|
MANAGEMENT BELIEVES THAT NON-GAAP OPERATING INCOME AND EBITDA WITHOUT SPECIAL ITEMS, 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. |
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Condensed Consolidated Balance Sheets |
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|
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(In thousands) |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEPTEMBER |
|
DECEMBER |
|
|
|
2024 |
|
2023 |
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
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ASSETS |
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|
|
|
|
|
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CASH AND CASH EQUIVALENTS |
|
$ 26,348 |
|
$ 32,526 |
|
|
|
|
|
|
|
ACCOUNTS RECEIVABLE, GROSS |
|
225,827 |
|
168,327 |
|
ALLOWANCE FOR EXPECTED CREDIT LOSSES |
|
8,697 |
|
8,045 |
|
ACCOUNTS RECEIVABLE, NET |
|
217,130 |
|
160,282 |
|
|
|
|
|
|
|
INVENTORIES |
|
503,015 |
|
507,075 |
|
UNRETURNED CUSTOMER INVENTORY |
|
17,843 |
|
18,240 |
|
OTHER CURRENT ASSETS |
|
28,873 |
|
26,100 |
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS |
|
793,209 |
|
744,223 |
|
|
|
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT, NET |
|
138,490 |
|
121,872 |
|
OPERATING LEASE RIGHT-OF-USE ASSETS |
|
96,039 |
|
100,065 |
|
|
|
134,725 |
|
134,729 |
|
OTHER INTANGIBLES, NET |
|
85,837 |
|
92,308 |
|
DEFERRED INCOME TAXES |
|
45,315 |
|
40,533 |
|
INVESTMENT IN UNCONSOLIDATED AFFILIATES |
|
23,914 |
|
24,050 |
|
OTHER ASSETS |
|
33,012 |
|
35,267 |
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ 1,350,541 |
|
$ 1,293,047 |
|
|
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|
|
|
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|
|
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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CURRENT PORTION OF REVOLVING CREDIT FACILITY |
|
$ - |
|
$ - |
|
CURRENT PORTION OF TERM LOAN AND OTHER DEBT |
2,685 |
|
5,029 |
|
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ACCOUNTS PAYABLE |
|
112,404 |
|
107,455 |
|
ACCRUED CUSTOMER RETURNS |
|
62,326 |
|
38,238 |
|
ACCRUED CORE LIABILITY |
|
15,226 |
|
18,399 |
|
ACCRUED REBATES |
|
53,163 |
|
42,278 |
|
PAYROLL AND COMMISSIONS |
|
37,050 |
|
29,561 |
|
SUNDRY PAYABLES AND ACCRUED EXPENSES |
|
69,666 |
|
63,303 |
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES |
|
352,520 |
|
304,263 |
|
|
|
|
|
|
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LONG-TERM DEBT |
|
140,163 |
|
151,182 |
|
NONCURRENT OPERATING LEASE LIABILITY |
|
86,259 |
|
88,974 |
|
ACCRUED ASBESTOS LIABILITIES |
|
89,544 |
|
72,013 |
|
OTHER LIABILITIES |
|
28,611 |
|
25,742 |
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
697,097 |
|
642,174 |
|
|
|
|
|
|
|
TOTAL SMP STOCKHOLDERS' EQUITY |
|
638,833 |
|
635,064 |
|
NONCONTROLLING INTEREST |
|
14,611 |
|
15,809 |
|
TOTAL STOCKHOLDERS' EQUITY |
|
653,444 |
|
650,873 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ 1,350,541 |
|
$ 1,293,047 |
|
|
|||||
|
Condensed Consolidated Statements of Cash Flows |
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|
(In thousands) |
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|
|
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|
NINE MONTHS ENDED |
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|
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|
|||
|
|
|
2024 |
|
|
2023 |
|
|
|
(Unaudited) |
|||
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS |
$ 30,482 |
|
|
$ 27,866 |
|
|
ADJUSTMENTS TO RECONCILE NET EARNINGS TO |
|
|
|
|
|
|
PROVIDED BY OPERATING ACTIVITIES: |
|
|
|
|
|
|
DEPRECIATION AND AMORTIZATION |
22,008 |
|
|
21,461 |
|
|
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAXES |
24,727 |
|
|
28,201 |
|
|
OTHER |
4,473 |
|
|
4,701 |
|
|
CHANGE IN ASSETS AND LIABILITIES: |
|
|
|
|
|
|
ACCOUNTS RECEIVABLE |
(59,040) |
|
|
(38,850) |
|
|
INVENTORY |
2,895 |
|
|
54,286 |
|
|
ACCOUNTS PAYABLE |
4,487 |
|
|
15,852 |
|
|
PREPAID EXPENSES AND OTHER CURRENT ASSETS |
(2,739) |
|
|
2,916 |
|
|
SUNDRY PAYABLES AND ACCRUED EXPENSES |
45,470 |
|
|
12,345 |
|
|
OTHER |
5,437 |
|
|
4,115 |
|
|
NET CASH PROVIDED BY OPERATING ACTIVITIES |
78,200 |
|
|
132,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES |
- |
|
|
(3,954) |
|
|
CASH ACQUIRED IN STEP ACQUISITION |
- |
|
|
6,779 |
|
|
CAPITAL EXPENDITURES |
(34,136) |
|
|
(17,977) |
|
|
OTHER INVESTING ACTIVITIES |
18 |
|
|
95 |
|
|
|
(34,118) |
|
|
(15,057) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET CHANGE IN DEBT |
(13,422) |
|
|
(92,149) |
|
|
PURCHASE OF TREASURY STOCK |
(10,409) |
|
|
- |
|
|
DIVIDENDS PAID |
(19,004) |
|
|
(18,846) |
|
|
PAYMENTS OF DEBT ISSUANCE COSTS |
(4,183) |
|
|
- |
|
|
OTHER FINANCING ACTIVITIES |
(651) |
|
|
(2) |
|
|
|
(47,669) |
|
|
(110,997) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH |
(2,591) |
|
|
496 |
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(6,178) |
|
|
7,335 |
|
|
CASH AND CASH EQUIVALENTS at beginning of period |
32,526 |
|
|
21,150 |
|
|
CASH AND CASH EQUIVALENTS at end of period |
$ 26,348 |
|
|
$ 28,485 |
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