STANDARD MOTOR PRODUCTS, INC. Standard Motor Products, Inc.
1st Quarter 2024
Earnings Call | May 1, 2024
1
Safe Harbor - Forward Looking Statements
You should be aware that except for historical information, the matters discussed herein are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements, including projections and anticipated levels of future performance, are based on current information and assumptions and involve risks and uncertainties which may cause actual results to differ materially from those discussed herein. You are urged to review all of our filings with the SEC and our press releases from time to time for details of these risks and uncertainties.
In addition, please see our press release issued on May 1, 2024 for factors that could cause future performance to vary from the expectations expressed or implied by the forward-looking statements herein and for certain reconciliations of GAAP to non-GAAP results.
Standard Motor Products, Inc. | Q1 2024 Earnings | 2 |
Agenda
vWelcome & Introduction | Tony Cristello, VP Investor Relations |
vOverview & Market Trends | Eric Sills, CEO |
vFinancial Results & Balance Sheet | Nathan Iles, CFO |
vFinal Comments | Eric Sills, CEO |
vQ&A | All |
Standard Motor Products, Inc. | Q1 2024 Earnings | 3 |
1st Quarter P&L Summary - Segments(1)
(In millions, except per share amounts) | THREE MONTHS ENDED | |||||
2024 | MARCH 31, | 2023 | ||||
Vehicle Control | ||||||
Revenue | $ | 185.5 | $ | 184.6 | ||
Gross Margin | 58.9 | 31.7% | 58.5 | 31.7% | ||
Selling, General & Administrative | 35.6 | 19.2% | 34.0 | 18.4% | ||
Factoring Expenses | 7.7 | 4.2% | 6.8 | 3.7% | ||
Operating Income | $ | 15.6 | 8.4% | $ | 17.6 | 9.6% |
Adjusted EBITDA | $ | 19.4 | 10.4% | $ | 21.5 | 11.6% |
Temperature Control | ||||||
Revenue | $ | 71.6 | $ | 72.4 | ||
Gross Margin | 19.7 | 27.5% | 19.2 | 26.5% | ||
Selling, General & Administrative | 15.3 | 21.4% | 14.3 | 19.7% | ||
Factoring Expenses | 2.3 | 3.2% | 2.3 | 3.1% | ||
Operating Income | $ | 2.1 | 2.9% | $ | 2.6 | 3.6% |
Adjusted EBITDA | $ | 3.4 | 4.7% | $ | 3.3 | 4.6% |
Engineered Solutions | ||||||
Revenue | $ | 74.3 | $ | 71.0 | ||
Gross Margin | 10.9 | 14.7% | 13.6 | 19.2% | ||
Selling, General & Administrative | 8.7 | 11.7% | 7.9 | 11.1% | ||
Operating Income | $ | 2.2 | 3.0% | $ | 5.7 | 8.1% |
Adjusted EBITDA | $ | 5.5 | 7.4% | $ | 8.2 | 11.6% |
- All operating results provided except for revenues are on a non-GAAP basis. See financial statements in earnings release for reconciliation of GAAP to non-GAAP earnings.
Standard Motor Products, Inc. | Q1 2024 Earnings | 4 |
1st Quarter P&L Summary - Consolidated(1)
(In millions, except per share amounts) | THREE MONTHS ENDED |
MARCH 31, |
Consolidated Results | 2024 | |
$ | 331.4 | |
Revenue | ||
Gross Margin | 89.5 | |
Selling, General & Administrative | 64.7 | |
Factoring Expenses | 10.0 | |
Operating Income | $ | 14.8 |
Net Earnings from Continuing Operations | $ | 10.0 |
Adjusted EBITDA | $ | 22.9 |
Interest Expense | $ | 2.1 |
Diluted Earnings per Share | $ | 0.45 |
2023 | |||
$ | 328.0 | ||
27.0% | 91.3 | 27.8% | |
19.5% | 60.5 | 18.5% | |
3.0% | 9.1 | 2.8% | |
4.5% | $ | 21.6 | 6.6% |
- 13.4
6.9% | $ | 29.0 | 8.8% |
- 3.9
- 0.61
- All operating results provided except for revenues are on a non-GAAP basis. See financial statements in earnings release for reconciliation of GAAP to non-GAAP earnings.
Standard Motor Products, Inc. | Q1 2024 Earnings | 5 |
Balance Sheet & Cash Flow Highlights
(In millions) | MARCH 31, | DECEMBER 31, | ||||||||
Working Capital Stats | 2024 | 2023 | 2023 | |||||||
Accounts Receivable, Net | $ | 203.9 | $ | 210.8 | $ | 160.3 | ||||
Inventories | $ | 520.7 | $ | 522.0 | $ | 507.1 | ||||
Cash Flow Stats (YTD) | ||||||||||
Operating cash flows | $ | (45.7) | $ | (20.4) | ||||||
Capex | $ | (10.1) | $ | (4.4) | ||||||
Dividends | $ | (6.4) | $ | (6.3) | ||||||
Share repurchases | $ | (2.6) | $ | - | ||||||
Net Change in Debt | $ | 58.7 | $ | 33.5 | ||||||
Debt & Leverage | ||||||||||
Total debt | $ | 214.9 | $ | 273.1 | $ | 156.2 | ||||
Cash | $ | 27.1 | $ | 24.2 | $ | 32.5 | ||||
Net debt | $ | 187.7 | $ | 248.9 | $ | 123.7 | ||||
LTM Adjusted EBITDA | $ | 120.6 | $ | 139.7 | $ | 126.7 | ||||
Leverage ratio | 1.6x | 1.8x | 1.0x | |||||||
Remaining borrowing capacity | $ | 274.2 | $ | 220.9 | $ | 334.2 | ||||
Total Liquidity | $ | 301.3 | $ | 245.1 | $ | 366.7 | ||||
Standard Motor Products, Inc. | Q1 2024 Earnings | 6 |
Q&A Session
Standard Motor Products, Inc. | Q1 2024 Earnings | 7 |
Appendix
Standard Motor Products, Inc. | Q1 2024 Earnings | 8 |
Reconciliation of GAAP and Non-GAAP Measures
(In thousands, except per share amounts) | THREE MONTHS ENDED | ||||
MARCH 31, | |||||
2024 | 2023 | ||||
EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP | (Unaudited) | ||||
GAAP EARNINGS FROM CONTINUING OPERATIONS | $ | 9,863 | $ | 12,698 | |
RESTRUCTURING AND INTEGRATION EXPENSES | 192 | 912 | |||
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS | (50) | (237) | |||
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS | $ | 10,005 | $ | 13,373 | |
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP | |||||
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS | $ | 0.44 | $ | 0.57 | |
RESTRUCTURING AND INTEGRATION EXPENSES | 0.01 | 0.04 | |||
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS | - | - | |||
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS | $ | 0.45 | $ | 0.61 | |
Standard Motor Products, Inc. | Q1 2024 Earnings | 9 |
Reconciliation of GAAP and Non-GAAP Measures
(In thousands, except per share amounts) | THREE MONTHS ENDED | |||||||||||||
MARCH 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
OPERATING INCOME | (Unaudited) | |||||||||||||
GAAP OPERATING INCOME | $ | 14,619 | $ | 20,746 | ||||||||||
RESTRUCTURING AND INTEGRATION EXPENSES | 192 | 912 | LAST TWELVE MONTHS ENDED | YEAR ENDED | ||||||||||
OTHER INCOME, NET | (22) | (24) | ||||||||||||
MARCH 31, | DECEMBER 31, | |||||||||||||
NON-GAAP OPERATING INCOME | $ | 14,789 | $ | 21,634 | 2024 | 2023 | 2023 | |||||||
EBITDA WITHOUT SPECIAL ITEMS | (Unaudited) | |||||||||||||
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES | $ | 13,371 | $ | 17,109 | $ | 77,978 | $ | 87,882 | $ | 81,716 | ||||
DEPRECIATION AND AMORTIZATION | 7,301 | 7,082 | 29,241 | 28,428 | 29,022 | |||||||||
INTEREST EXPENSE | 2,067 | 3,862 | 11,492 | 13,674 | 13,287 | |||||||||
EBITDA | 22,739 | 28,053 | 118,711 | 129,984 | 124,025 | |||||||||
RESTRUCTURING AND INTEGRATION EXPENSES | 192 | 912 | 1,922 | 2,762 | 2,642 | |||||||||
CUSTOMER BANKRUPTCY CHARGE | - | - | - | 7,002 | - | |||||||||
SPECIAL ITEMS | 192 | 912 | 1,922 | 9,764 | 2,642 | |||||||||
EBITDA WITHOUT SPECIAL ITEMS | $ | 22,931 | $ | 28,965 | $ | 120,633 | $ | 139,748 | $ | 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.
Standard Motor Products, Inc. | Q1 2024 Earnings | 10 |
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Standard Motor Products Inc. published this content on 01 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 11:52:38 UTC.
