Standard Motor Products, Inc. Announces Third Quarter 2012 Results and a Quarterly Dividend

   Standard Motor Products, Inc. Announces Third Quarter 2012 Results and a
                              Quarterly Dividend

PR Newswire

NEW YORK, Oct. 30, 2012

NEW YORK, Oct. 30, 2012 /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 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.

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      50,937         41,680          142,322       122,336
EXPENSES
RESTRUCTURING AND
INTEGRATION         642            275             779           743
EXPENSES
OTHER INCOME, NET   433            258             454           789
OPERATING INCOME   26,662         22,791          59,055        58,523
OTHER
NON-OPERATING       -              230             (66)          673
INCOME (EXPENSE),
NET
INTEREST EXPENSE    702            757             2,257         3,159
EARNINGS FROM
CONTINUING          25,960         22,264          56,732        56,037
OPERATIONS BEFORE
TAXES
PROVISION FOR       8,516          8,164           20,073        21,233
INCOME TAXES
EARNINGS FROM
CONTINUING          17,444         14,100          36,659        34,804
OPERATIONS
LOSS FROM
DISCONTINUED        (604)          (1,055)         (1,221)       (1,714)
OPERATION, NET OF
INCOME TAXES
NET EARNINGS       $            $             $           $  
                    16,840        13,045         35,438       33,090
NET EARNINGS PER COMMON SHARE:
 BASIC EARNINGS   $         $          $        $     
FROM CONTINUING     0.77           0.62            1.61          1.53
OPERATIONS
 DISCONTINUED     (0.03)         (0.05)          (0.06)        (0.08)
OPERATION
 NET EARNINGS     $         $          $        $     
PER COMMON SHARE -  0.74           0.57            1.55          1.45
BASIC
 DILUTED
EARNINGS FROM       $         $          $        $     
CONTINUING          0.76           0.61            1.59          1.51
OPERATIONS
 DISCONTINUED     (0.02)         (0.04)          (0.05)        (0.08)
OPERATION
 NET EARNINGS     $         $          $        $     
PER COMMON SHARE -  0.74           0.57            1.54          1.43
DILUTED
WEIGHTED AVERAGE
NUMBER OF COMMON    22,691,878     22,863,048      22,810,238    22,812,851
SHARES
WEIGHTED AVERAGE
NUMBER OF COMMON    22,877,635     23,042,981      22,999,244    23,299,363
AND DILUTIVE
SHARES



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      $17,444    $14,100     $36,659    $34,804
OPERATIONS
RESTRUCTURING AND INTEGRATION      385        165         467        446
EXPENSES (NET OF TAX)
POSTRETIREMENT CURTAILMENT GAIN    -          -           -          (2,188)
(NET OF TAX)
REVERSAL OF LT TAX LIABILITY       -          (454)       -          (454)
CERTAIN TAX CREDITS AND
PRODUCTION DEDUCTIONS FINALIZED    (774)      -           (774)      -
IN PERIOD
GAIN FROM SALE OF BUILDINGS (NET   (301)      (157)       (615)      (472)
OF TAX)
NON-GAAP EARNINGS FROM CONTINUING  $16,754    $13,654     $35,737    $32,136
OPERATIONS
DILUTED EARNINGS PER SHARE FROM
CONTINUING OPERATIONS
GAAP DILUTED EARNINGS PER SHARE    $  0.76  $  0.61   $  1.59  $  1.51
FROM CONTINUING OPERATIONS
RESTRUCTURING AND INTEGRATION      0.01       -           0.02       0.02
EXPENSES (NET OF TAX)
POSTRETIREMENT CURTAILMENT GAIN    -          -           -          (0.10)
(NET OF TAX)
REVERSAL OF LT TAX LIABILITY       -          (0.02)      -          (0.02)
CERTAIN TAX CREDITS AND
PRODUCTION DEDUCTIONS FINALIZED    (0.03)     -           (0.03)     -
IN PERIOD
GAIN FROM SALE OF BUILDINGS (NET   (0.01)     -           (0.03)     (0.02)
OF TAX)
NON-GAAP DILUTED EARNINGS PER      $  0.73  $  0.59   $  1.55  $  1.39
SHARE FROM CONTINUING OPERATIONS



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'     $     618,660    $    550,722
EQUITY



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       95,229         68,148         233,556         201,942
Control
All Other         4,957          2,890          11,557          9,208
                  $             $             $              $ 
                  275,975        236,220        756,561         700,455
Gross Margin
Engine            $      29.2%  $      26.5%  $        27.5%  $       25.3%
Management        51,285         43,834         140,555         123,850
Temperature       23,156  24.3%  17,343  25.4%  51,604   22.1%  47,269  23.4%
Control
All Other         3,367          3,311          9,543           9,694
                  $     28.2%  $     27.3%  $       26.7%  $      25.8%
                  77,808         64,488         201,702         180,813
Selling, General
& Administrative
Engine            $      17.0%  $      15.3%  $      17.0%  $     15.6%
Management        29,870         25,226         87,201          76,483
Temperature       14,099  14.8%  9,557   14.0%  34,705   14.9%  29,322  14.5%
Control
All Other         6,968          6,897          20,416          16,531
                  $     18.5%  $     17.6%  $       18.8%  $      17.5%
                  50,937         41,680         142,322         122,336
Operating Profit
Engine            $      12.2%  $      11.3%  $      10.4%  $     9.7%
Management        21,415         18,608         53,354          47,367
Temperature       9,057   9.5%   7,786   11.4%  16,899   7.2%   17,947  8.9%
Control
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 &   (642)   -0.2%  (275)   -0.1%  (779)    -0.1%  (743)   -0.1%
Integration
Other Income,     433     0.2%   258     0.1%   454      0.1%   789     0.1%
Net
                  $     9.7%   $     9.6%   $      7.8%   $     8.4%
                  26,662         22,791         59,055          58,523



SOURCE Standard Motor Products, Inc.

Contact: James J. Burke, Standard Motor Products, Inc., +1-718-392-0200, or
Jennifer Tio, Maximum Marketing Services, Inc., +1-312-226-4111 x2449,
Jennifer.tio@maxmarketing.com
 
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