Standard Motor Products, Inc. Announces Fourth Quarter and Year End 2013 Results and a New Stock Repurchase Program - KMPH FOX 26 | Central San Joaquin Valley News Source

Standard Motor Products, Inc. Announces Fourth Quarter and Year End 2013 Results and a New Stock Repurchase Program

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SOURCE Standard Motor Products, Inc.

NEW YORK, Feb. 24, 2014 /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 for the year ended December 31, 2013.

Consolidated net sales for the fourth quarter of 2013 were $218.7 million, compared to consolidated net sales of $192.4 million during the comparable quarter in 2012. Earnings from continuing operations for the fourth quarter of 2013 were $9.4 million or 40 cents per diluted share, compared to $6.3 million or 27 cents per diluted share in the fourth quarter of 2012. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the fourth quarter of 2013 were $9.7 million or 42 cents, compared to $6.5 million or 28 cents per diluted share in the fourth quarter of 2012.

Consolidated net sales for 2013 were $983.7 million, compared to consolidated net sales of $948.9 million in 2012.  Earnings from continuing operations for 2013 were $53 million or $2.28 per diluted share, compared to $43 million or $1.86 per diluted share in 2012.  Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for 2013 and 2012 were $54.1 million or $2.32 per diluted share and $42.3 million or $1.83 per diluted share, respectively.

Mr. Lawrence I. Sills, Standard Motor Products' Chairman and Chief Executive Officer, stated, "We are very pleased with our results for 2013. We set company records for both sales and profit, despite a disappointing year in Temperature Control, primarily the result of a mild summer season. For the year, sales increased 3.7% and earnings per share, excluding special items, were up 27%, from $1.83 to $2.32.

"For the fourth quarter, sales grew 13.7% over the prior year and earnings per share, excluding special items, were up 50%, from 28 cents to 42 cents. The fourth quarter figures were enhanced by certain Engine Management customers broadening their product lines for their commercial business. We continue to forecast annual growth in the low to mid single digit range.

"Our Engine Management division had an excellent year. Sales were up 6.9%, above industry growth averages, and gross margin improved from 28.2% to 30.7%. Temperature Control sales were down for the year, for reasons stated above, even with the benefit of the CompressorWorks acquisition for the full 12 months in 2013, vs. only eight months in 2012.

"Much of the Company's profit improvement resulted from an increase in gross margin. As we had said in prior releases, we are seeing the continuing benefits of our efforts over the last several years – manufacturing parts we formerly purchased, integrating recent acquisitions, expanding our production in low cost areas, and improved sourcing.

"Cash flow continued strong. During the year we reduced total debt by $19 million, from $40.6 million to $21.5 million. In addition, during 2013 we invested roughly $20 million in acquisitions and company share repurchases.

"In January we announced the acquisition of the assets of Pensacola Fuel Injection for $12.2 million. The company re-manufactures a wide range of diesel injectors, diesel pumps, and turbo chargers. PFI was our primary supplier for these parts. We plan to relocate the operation to our facility in Grapevine, Texas by the end of the second quarter. This will result in cost savings in the product line, and we will now be a basic manufacturer in this important and growing product area. The current owners of PFI will retain the retail segment of this business."

The Board of Directors has authorized the purchase of up to an additional $10 million of its common stock under a stock repurchase program. This increase is in addition to the completed $6 million repurchase program authorized by the Board in February 2013. Stock will be purchased from time to time, in the open market or through private transactions, as market conditions warrant. The Company intends to fund the stock repurchase program through its revolving credit facility. The stock repurchase program may be suspended or discontinued at any time. Any repurchased shares will be held as treasury stock and will be available for general corporate purposes, including funding existing equity compensation plans.

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Monday, February 24, 2014.  The dial-in number is 866-952-1907 (domestic) or 785-424-1826 (international). The playback number is 800-757-4761 (domestic) or 402-220-7215 (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




TWELVE MONTHS ENDED


DECEMBER 31,




DECEMBER 31,


2013



2012




2013



2012


(Unaudited)




(Unaudited)

NET SALES

$    218,708



$    192,355




$    983,704



$    948,916













COST OF SALES

151,959



134,388




693,250



689,247













GROSS PROFIT

66,749



57,967




290,454



259,669













SELLING, GENERAL & ADMINISTRATIVE EXPENSES

50,443



45,173




201,256



187,495

RESTRUCTURING AND INTEGRATION EXPENSES

826



658




3,357



1,437

OTHER INCOME , NET

256



240




1,022



694













OPERATING INCOME 

15,736



12,376




86,863



71,431













OTHER NON-OPERATING INCOME (EXPENSE), NET

28



(630)




1



(696)













INTEREST EXPENSE

281



531




1,902



2,788













EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES

15,483



11,215




84,962



67,947













PROVISION FOR INCOME TAXES

6,092



4,905




31,919



24,978













EARNINGS FROM CONTINUING OPERATIONS

9,391



6,310




53,043



42,969













LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES

(455)



(395)




(1,593)



(1,616)













NET EARNINGS 

$         8,936



$         5,915




$      51,450



$      41,353









































































NET EARNINGS PER COMMON SHARE:
























   BASIC EARNINGS FROM CONTINUING OPERATIONS

$           0.41



$           0.28




$           2.31



$           1.88

   DISCONTINUED OPERATION

(0.02)



(0.02)




(0.07)



(0.07)

   NET EARNINGS PER COMMON SHARE - BASIC

$           0.39



$           0.26




$           2.24



$           1.81

























   DILUTED EARNINGS FROM CONTINUING OPERATIONS

$           0.40



$           0.27




$           2.28



$           1.86

   DISCONTINUED OPERATION

(0.02)



(0.01)




(0.07)



(0.07)

   NET EARNINGS PER COMMON SHARE - DILUTED

$           0.38



$           0.26




$           2.21



$           1.79

























WEIGHTED AVERAGE NUMBER OF COMMON SHARES

23,061,533



22,817,551




22,974,690



22,812,077

WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES

23,366,587



23,075,586




23,270,067



23,050,340









































































  















STANDARD MOTOR PRODUCTS, INC.

Segment Revenues and Operating Profit





























(In thousands)












































THREE MONTHS ENDED




TWELVE MONTHS ENDED




DECEMBER 31,




DECEMBER 31,




2013



2012




2013



2012




(unaudited)




(unaudited)


Revenues














Engine Management


$ 175,747



$ 153,657




$ 711,245



$ 665,105


Temperature Control


38,309



35,248




262,537



268,804


All Other


4,652



3,450




9,922



15,007




$   218,708



$   192,355




$   983,704



$   948,916
















Gross Margin














Engine Management


$   55,546

31.6%


$   47,221

30.7%



$ 218,294

30.7%


$ 187,776

28.2%

Temperature Control


6,326

16.5%


6,979

19.8%



58,150

22.1%


58,583

21.8%

All Other


4,877



3,767




14,010



13,310




$     66,749

30.5%


$     57,967

30.1%



$   290,454

29.5%


$   259,669

27.4%















Selling, General & Administrative














Engine Management


$   31,273

17.8%


$   28,956

18.8%



$   121,578

17.1%


$   116,157

17.5%

Temperature Control


10,078

26.3%


8,832

25.1%



47,845

18.2%


43,537

16.2%

All Other


9,092



7,385




31,833



27,801




$     50,443

23.1%


$     45,173

23.5%



$   201,256

20.5%


$   187,495

19.8%





























Operating Profit














Engine Management


$   24,273

13.8%


$   18,265

11.9%



$     96,716

13.6%


$     71,619

10.8%

Temperature Control


(3,752)

-9.8%


(1,853)

-5.3%



10,305

3.9%


15,046

5.6%

All Other


(4,215)



(3,618)




(17,823)



(14,491)




16,306

7.5%


12,794

6.7%



89,198

9.1%


72,174

7.6%

Restructuring & Integration


(826)

-0.4%


(658)

-0.3%



(3,357)

-0.3%


(1,437)

-0.2%

Other Income, Net


256

0.1%


240

0.1%



1,022

0.1%


694

0.1%



$     15,736

7.2%


$     12,376

6.4%



$     86,863

8.8%


$     71,431

7.5%















  











STANDARD MOTOR PRODUCTS, INC.

Reconciliation of GAAP and Non-GAAP Measures









































(In thousands, except per share amounts)












THREE MONTHS ENDED



TWELVE MONTHS ENDED



DECEMBER 31,



DECEMBER 31,



2013


2012



2013


2012


(Unaudited)


(Unaudited)

EARNINGS FROM CONTINUING OPERATIONS




















GAAP EARNINGS FROM CONTINUING OPERATIONS


$9,391


$6,310



$53,043


$42,969











RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)


495


395



2,014


862

CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD


-


-



(374)


(774)

GAIN FROM SALE OF BUILDINGS (NET OF TAX)


(157)


(157)



(629)


(772)

NON-GAAP EARNINGS FROM CONTINUING OPERATIONS


$9,729


$6,548



$54,054


$42,285





















DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS




















GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS


$  0.40


$  0.27



$    2.28


$    1.86











RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)


0.02


0.02



0.09


0.03

CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD


-


-



(0.02)


(0.03)

GAIN FROM SALE OF BUILDINGS (NET OF TAX)


-


(0.01)



(0.03)


(0.03)











NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS


$  0.42


$  0.28



$    2.32


$    1.83









































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)


























December 31,




December 31,




2013




2012




(Unaudited)














ASSETS











CASH


$           5,559




$         13,074










ACCOUNTS RECEIVABLE, GROSS


132,170




104,689


ALLOWANCE FOR DOUBTFUL ACCOUNTS


6,969




6,124


ACCOUNTS RECEIVABLE, NET


125,201




98,565










INVENTORIES


269,447




267,468


OTHER CURRENT ASSETS


45,870




39,446










TOTAL CURRENT ASSETS


446,077




418,553










PROPERTY, PLANT AND EQUIPMENT, NET


63,646




64,422


GOODWILL AND OTHER INTANGIBLES, NET


72,866




72,373


OTHER ASSETS


32,934




21,246










TOTAL ASSETS


$       615,523




$       576,594


















LIABILITIES AND STOCKHOLDERS' EQUITY



















NOTES PAYABLE


$         21,406




$         40,453


CURRENT PORTION OF LONG TERM DEBT


59




120


ACCOUNTS PAYABLE


71,469




62,283


ACCRUED CUSTOMER RETURNS


31,464




29,033


OTHER CURRENT LIABILITIES


95,918




90,283










TOTAL CURRENT LIABILITIES


220,316




222,172










LONG-TERM DEBT


16




75


ACCRUED ASBESTOS LIABILITIES


23,919




25,110


OTHER LIABILITIES


21,840




21,650










 TOTAL LIABILITIES 


266,091




269,007










 TOTAL STOCKHOLDERS' EQUITY 


349,432




307,587










 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 


$       615,523




$       576,594


















  








STANDARD MOTOR PRODUCTS, INC.


Condensed Consolidated Statements of Cash Flows
























(In thousands)






















TWELVE MONTHS ENDED




DECEMBER 31,




2013



2012




(Unaudited)










CASH FLOWS FROM OPERATING ACTIVITIES














NET EARNINGS 

$ 51,450



$ 41,353



ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH







PROVIDED BY OPERATING ACTIVITIES:







DEPRECIATION AND AMORTIZATION

17,595



16,466



OTHER

12,773



17,231



CHANGE IN ASSETS AND LIABILITIES:







ACCOUNTS RECEIVABLE

(27,278)



15,393



INVENTORY 

(6,094)



(1,556)



ACCOUNTS PAYABLE

12,497



3,287



OTHER

(3,327)



1,386



NET CASH PROVIDED BY OPERATING ACTIVTIES

57,616



93,560

















CASH FLOWS FROM INVESTING ACTIVITIES














CAPITAL EXPENDITURES

(11,410)



(11,811)



ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES

(12,760)



(38,594)



OTHER INVESTING ACTIVITIES

(592)



493



NET CASH USED IN INVESTING ACTIVITIES 

(24,762)



(49,912)

















CASH FLOWS FROM FINANCING ACTIVITIES














NET CHANGE IN DEBT

(19,166)



(32,652)



PURCHASE OF TREASURY STOCK

(6,864)



(4,999)



DIVIDENDS PAID

(10,107)



(8,215)



OTHER FINANCING ACTIVITIES

(3,158)



3,079



NET CASH USED IN FINANCING ACTIVITIES

(39,295)



(42,787)

















EFFECT OF EXCHANGE RATE CHANGES ON CASH

(1,074)



1,342



NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(7,515)



2,203



CASH AND CASH EQUIVALENTS at beginning of year

13,074



10,871



CASH AND CASH EQUIVALENTS at end of year

$   5,559



$ 13,074























©2012 PR Newswire. All Rights Reserved.

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