Standard Motor Products, Inc. Announces Second Quarter 2010 Results and a Quarterly Dividend

NEW YORK, Aug. 2 /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 and six months ended June 30, 2010. Consolidated net sales for the second quarter

Standard Motor Products, Inc. Announces Second Quarter 2010 Results and a Quarterly Dividend

NEW YORK, Aug. 2 /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 and six months ended June 30, 2010.

Consolidated net sales for the second quarter of 2010 were $231 million, compared to consolidated net sales of $197.5 million during the comparable quarter in 2009. Earnings from continuing operations for the second quarter of 2010 were $8.1 million or 35 cents per diluted share, compared to $5.6 million or 30 cents per diluted share in the second 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 second quarter of 2010 were $8.7 million or 38 cents, compared to $5.2 million or 27 cents per diluted share in the second quarter of 2009.

Consolidated net sales for the six month period ended June 30, 2010 were $410.4 million, compared to consolidated net sales of $369.7 million during the comparable period in 2009. Earnings from continuing operations for the six month period ended June 30, 2010 were $10.9 million or 48 cents per diluted share, compared to $6.4 million or 34 cents per diluted share in the comparable period 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 six months ended 2010 and 2009 were $11.8 million or 52 cents per diluted share and $6.5 million or 35 cents 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 results for the second quarter and for the first six months of the year. Sales were strong for both Engine Management and Temperature Control, and both divisions continued to benefit from cost reduction programs initiated over the past few years.

"Engine Management sales were 24% ahead for the quarter and 17% for the half. We attribute this to a combination of factors – solid growth for the entire aftermarket (which apparently is continuing into the third quarter), new business from the acquisition of Federal Mogul's wire line, inventory increases on the part of several customers as they return to more normalized stocking levels, and an increase in OE/OES volume from last year's depressed levels.

"Temperature Control sales are benefiting from one of the hottest summers in recent years, and full year volume from two large accounts gained in 2009.

"One element we are not yet satisfied with is our Engine Management gross margin, which is running slightly below 2009. However, we anticipate improvement in the second half, as our price increases are now fully implemented, and we continue our cost reduction initiatives.

"We were very successful deleveraging our balance sheet in 2009. While our working capital has increased in 2010 to accommodate the strong sales performance to-date, we anticipate achieving further debt reductions in the second half of this year."

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 September 1, 2010 to stockholders of record on August 13, 2010.

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Monday, August 2, 2010. The dial in number is 800-895-0198 (domestic) or 785-424-1053 (international). The playback number is 800-839-4577 (domestic) or 402-220-2682 (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


SIX MONTHS ENDED


JUNE 30,


JUNE 30,


2010


2009


2010


2009


(Unaudited)


(Unaudited)

NET SALES

$    231,048


$    197,498


$    410,399


$    369,720









COST OF SALES

172,659


151,092


308,192


282,421









GROSS PROFIT

58,389


46,406


102,207


87,299









SELLING, GENERAL & ADMINISTRATIVE EXPENSES

41,803


36,813


78,468


72,832

RESTRUCTURING AND INTEGRATION EXPENSES

1,289


1,210


2,042


2,373









OPERATING INCOME

15,297


8,383


21,697


12,094









OTHER INCOME, NET

298


3,422


696


3,527









INTEREST EXPENSE

2,002


2,325


3,866


4,802









EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES

13,593


9,480


18,527


10,819









INCOME TAX EXPENSE

5,532


3,842


7,599


4,394









EARNINGS FROM CONTINUING OPERATIONS

8,061


5,638


10,928


6,425









DISCONTINUED OPERATION, NET OF TAX

(372)


(322)


(868)


(582)









NET EARNINGS

$        7,689


$        5,316


$      10,060


$        5,843

















































NET EARNINGS PER COMMON SHARE:
















  BASIC EARNINGS FROM CONTINUING OPERATIONS

$          0.36


$          0.30


$          0.49


$          0.34

  DISCONTINUED OPERATION

(0.02)


(0.02)


(0.04)


(0.03)

  NET EARNINGS PER COMMON SHARE - BASIC

$          0.34


$          0.28


$          0.45


$          0.31

















  DILUTED EARNINGS FROM CONTINUING OPERATIONS

$          0.35


$          0.30


$          0.48


$          0.34

  DISCONTINUED OPERATION

(0.01)


(0.02)


(0.03)


(0.03)

  NET EARNINGS PER COMMON SHARE - DILUTED

$          0.34


$          0.28


$          0.45


$          0.31

















WEIGHTED AVERAGE NUMBER OF COMMON SHARES

22,570,886


18,814,723


22,493,031


18,705,997

WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES

23,529,898


20,014,439


22,584,666


18,720,479



STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures

































(In thousands, except per share amounts)









THREE MONTHS ENDED


SIX MONTHS ENDED


June 30,


June 30,


2010


2009


2010


2009


(Unaudited)


(Unaudited)

EARNINGS FROM CONTINUING OPERATIONS








GAAP EARNINGS FROM CONTINUING OPERATIONS

$ 8,061


$ 5,638


10,928


6,425









RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)

774


1,122


1,226


1,829

LOSS FROM EUROPE DIVESTITURE (NET OF TAX)

-


-


47


-

GAIN FROM SALE OF PREFERRED STOCK INVESTMENT (NET OF TAX)

-


(1,402)


-


(1,402)

GAIN FROM SALE OF BUILDINGS (NET OF TAX)

(125)


(157)


(398)


(315)

GAIN FROM DEBENTURE REPURCHASE (NET OF TAX)

-


(24)


-


(24)

NON-GAAP EARNINGS FROM CONTINUING OPERATIONS

$ 8,710


$ 5,177


$ 11,803


$ 6,513

















DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS








GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS

$   0.35


$   0.30


$     0.48


$   0.34

RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)

0.04


0.05


0.06


0.10

LOSS FROM EUROPE DIVESTITURE (NET OF TAX)

-


-


-


-

GAIN FROM SALE OF PREFERRED STOCK INVESTMENT (NET OF TAX)

-


(0.07)


-


(0.07)

GAIN FROM SALE OF BUILDINGS (NET OF TAX)

(0.01)


(0.01)


(0.02)


(0.02)

GAIN FROM DEBENTURE REPURCHASE (NET OF TAX)

-


-


-


-









NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS

$   0.38


$   0.27


$     0.52


$   0.35

























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)













June 30,


December 31,


2010


2009


(Unaudited)







ASSETS






CASH

$    14,717


$        10,618





ACCOUNTS RECEIVABLE, GROSS

182,056


131,785

ALLOWANCE FOR DOUBTFUL ACCOUNTS

8,518


6,962

ACCOUNTS RECEIVABLE, NET

173,538


124,823





INVENTORIES

218,138


199,752

ASSETS HELD FOR SALE

433


1,405

OTHER CURRENT ASSETS

26,828


27,616





TOTAL CURRENT ASSETS

433,654


364,214





PROPERTY, PLANT AND EQUIPMENT, NET

61,776


61,478

GOODWILL AND OTHER INTANGIBLES

13,541


13,805

OTHER ASSETS

41,195


44,962





TOTAL ASSETS

$  550,166


$      484,459









LIABILITIES AND STOCKHOLDERS' EQUITY










NOTES PAYABLE

$    69,795


$        58,430

CURRENT PORTION OF LONG TERM DEBT

17,450


67

ACCOUNTS PAYABLE TRADE

85,364


54,381

ACCRUED CUSTOMER RETURNS

34,612


20,442

OTHER CURRENT LIABILITIES

74,020


71,303





TOTAL CURRENT LIABILITIES

281,241


204,623





LONG-TERM DEBT

284


17,908

ACCRUED ASBESTOS LIABILITY

24,135


24,874

OTHER LIABILITIES

43,234


43,176





TOTAL LIABILITIES

348,894


290,581





TOTAL STOCKHOLDERS' EQUITY

201,272


193,878





TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$  550,166


$      484,459











STANDARD MOTOR PRODUCTS, INC.

Segment Revenues and Operating Profit

























(In thousands)





































THREE MONTHS ENDED



SIX MONTHS ENDED



June 30,



June 30,



2010



2009



2010



2009



(unaudited)



(unaudited)


Revenues












Engine Management

$ 152,815



$ 122,986



$ 289,912



$ 247,299


Temperature Control

73,926



65,661



113,941



105,921


Europe

-



7,325



-



14,046


All Other

4,307



1,526



6,546



2,454



$ 231,048



$ 197,498



$ 410,399



$ 369,720














Gross Margin












Engine Management

$   37,488

24.5%


$   31,077

25.3%


$   70,622

24.4%


$   61,603

24.9%

Temperature Control

17,707

24.0%


11,462

17.5%


25,960

22.8%


17,708

16.7%

Europe

-



1,871

25.5%


-



3,698

26.3%

All Other

3,194



1,996



5,625



4,290



$   58,389

25.3%


$   46,406

23.5%


$ 102,207

24.9%


$   87,299

23.6%













Selling, General & Administrative












Engine Management

$   26,284

17.2%


$   22,106

18.0%


$   49,437

17.1%


$   44,107

17.8%

Temperature Control

10,002

13.5%


8,443

12.9%


17,910

15.7%


15,827

14.9%

Europe

-



1,749

23.9%


-



3,332

23.7%

All Other

5,517



4,515



11,121



9,566



41,803

18.1%


36,813

18.6%


78,468

19.1%


72,832

19.7%

Restructuring & Integration

1,289

0.6%


1,210

0.7%


2,042

0.5%


2,373

0.6%


$   43,092

18.7%


$   38,023

19.3%


$   80,510

19.6%


$   75,205

20.3%

























Operating Profit












Engine Management

$   11,205

7.3%


$     8,972

7.3%


$   21,185

7.3%


$   17,495

7.1%

Temperature Control

7,705

10.4%


3,019

4.6%


8,050

7.1%


1,881

1.8%

Europe

-



122

1.7%


-



366

2.6%

All Other

(2,324)



(2,520)



(5,496)



(5,275)



16,586

7.2%


9,593

4.9%


23,739

5.8%


14,467

3.9%

Restructuring & Integration

1,289

0.6%


1,210

0.7%


2,042

0.5%


2,373

0.6%


$   15,297

6.6%


$     8,383

4.2%


$   21,697

5.3%


$   12,094

3.3%



SOURCE

More in Home