QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934.
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Accelerated Filer ☐
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Non-Accelerated Filer ☐
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Smaller reporting company
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Emerging growth company
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Page No.
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Item 1.
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3 |
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3
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4
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5
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6
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7
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8
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Item 2. |
27
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Item 3.
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38
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Item 4.
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39
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Item 1.
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40
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Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
40 |
Item 6.
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41
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Signatures |
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42
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ITEM 1. |
CONSOLIDATED FINANCIAL STATEMENTS
|
|
Three Months Ended
March 31,
|
|||||||
(In thousands, except share and per share data)
|
2024
|
2023
|
||||||
|
(Unaudited)
|
|||||||
Net sales
|
$
|
|
$
|
|
||||
Cost of sales
|
|
|
||||||
Gross profit
|
|
|
||||||
Selling, general and administrative expenses
|
|
|
||||||
Restructuring and integration expenses
|
|
|
||||||
Other income, net |
||||||||
Operating income
|
|
|
||||||
Other non-operating income, net
|
|
|
||||||
Interest expense
|
|
|
||||||
Earnings from continuing operations before income taxes
|
|
|
||||||
Provision for income taxes
|
|
|
||||||
Earnings from continuing operations
|
|
|
||||||
Loss from discontinued operations, net of income taxes
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(
|
)
|
(
|
)
|
||||
Net earnings
|
|
|
||||||
Net earnings attributable to noncontrolling interest
|
||||||||
Net earnings attributable to SMP (a)
|
$ | $ | ||||||
Net earnings attributable to SMP
|
||||||||
Earnings from continuing operations
|
$ | $ | ||||||
Discontinued operations
|
( |
) | ( |
) | ||||
Total
|
$ | $ | ||||||
Per share data attributable to SMP
|
||||||||
Net earnings per common share – Basic:
|
||||||||
Earnings from continuing operations
|
$
|
|
$
|
|
||||
Discontinued operations
|
(
|
)
|
(
|
)
|
||||
Net earnings per common share – Basic
|
$
|
|
$
|
|
||||
Net earnings per common share – Diluted:
|
||||||||
Earnings from continuing operations
|
$
|
|
$
|
|
||||
Discontinued operations
|
(
|
)
|
(
|
)
|
||||
Net earnings per common share – Diluted
|
$
|
|
$
|
|
||||
Dividend declared per share
|
$
|
|
$
|
|
||||
Average number of common shares
|
|
|
||||||
Average number of common shares and dilutive common shares
|
|
|
|
Three Months Ended
March 31,
|
|||||||
(In thousands)
|
2024
|
2023
|
||||||
|
(Unaudited)
|
|||||||
|
||||||||
Net earnings
|
$
|
|
$
|
|
||||
Other comprehensive income (loss), net of tax:
|
||||||||
Foreign currency translation adjustments
|
(
|
)
|
|
|||||
Derivative instruments
|
( |
) | ||||||
Pension and postretirement plans
|
(
|
)
|
(
|
)
|
||||
Total other comprehensive income, net of tax
|
|
|
||||||
Total comprehensive income
|
|
|
||||||
Comprehensive income (loss) attributable to noncontrolling interest, net of tax:
|
||||||||
Net earnings
|
||||||||
Foreign currency translation adjustments
|
( |
) | ( |
) | ||||
Comprehensive income attributable to noncontrolling interest, net of tax
|
||||||||
Comprehensive income attributable to SMP
|
$ | $ |
(In thousands, except share and per share data)
|
March 31,
2024
|
December 31,
2023
|
||||||
|
(Unaudited)
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Accounts receivable, less allowances for discounts and expected credit losses of $
|
|
|
||||||
Inventories
|
|
|
||||||
Unreturned customer inventories
|
|
|
||||||
Prepaid expenses and other current assets
|
|
|
||||||
Total current assets
|
|
|
||||||
|
||||||||
Property, plant and equipment, net of accumulated depreciation of $
|
|
|
||||||
Operating lease right-of-use assets
|
|
|
||||||
Goodwill
|
|
|
||||||
Other intangibles, net
|
|
|
||||||
Deferred income taxes
|
|
|
||||||
Investments in unconsolidated affiliates
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
|
||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Current portion of term loan and other debt
|
$ |
|
$ |
|
||||
Accounts payable
|
|
|
||||||
Sundry payables and accrued expenses
|
|
|
||||||
Accrued customer returns
|
|
|
||||||
Accrued core liability
|
|
|
||||||
Accrued rebates
|
|
|
||||||
Payroll and commissions
|
|
|
||||||
Total current liabilities
|
|
|
||||||
Long-term debt
|
|
|
||||||
Noncurrent operating lease liabilities
|
|
|
||||||
Other accrued liabilities
|
|
|
||||||
Accrued asbestos liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
Commitments and contingencies
|
||||||||
Stockholders’ equity:
|
||||||||
Common stock – par value $
|
||||||||
Authorized –
|
|
|
||||||
Capital in excess of par value
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive income
|
(
|
)
|
(
|
)
|
||||
Treasury stock – at cost (
|
(
|
)
|
(
|
)
|
||||
Total SMP stockholders’ equity
|
|
|
||||||
Noncontrolling interest
|
|
|
||||||
Total stockholders’ equity
|
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
(In thousands)
|
Three Months Ended
March 31,
|
|||||||
|
2024
|
2023
|
||||||
|
(Unaudited)
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net earnings
|
$
|
|
$
|
|
||||
Adjustments to reconcile net earnings to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
|
|
||||||
Amortization of deferred financing cost
|
|
|
||||||
Increase to allowance for expected credit losses
|
|
|
||||||
Increase to inventory reserves
|
|
|
||||||
Equity income from joint ventures
|
(
|
)
|
(
|
)
|
||||
Employee Stock Ownership Plan allocation
|
|
|
||||||
Stock-based compensation
|
|
|
||||||
(Increase) decrease in deferred income taxes
|
(
|
)
|
|
|||||
Loss on discontinued operations, net of tax
|
|
|
||||||
Change in assets and liabilities:
|
||||||||
Increase in accounts receivable
|
(
|
)
|
(
|
)
|
||||
(Increase) decrease in inventories
|
(
|
)
|
|
|||||
Decrease in prepaid expenses and other current assets
|
|
|
||||||
Increase (decrease) in accounts payable
|
(
|
)
|
|
|||||
Increase (decrease) in sundry payables and accrued expenses
|
|
(
|
)
|
|||||
Net changes in other assets and liabilities
|
(
|
)
|
(
|
)
|
||||
Net cash used in operating activities
|
(
|
)
|
(
|
)
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Capital expenditures
|
(
|
)
|
(
|
)
|
||||
Other investing activities
|
|
|
||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Repayments of term loan
|
( |
) | ( |
) | ||||
Net borrowings under revolving credit facilities
|
|
|
||||||
Net repayments of other debt and lease obligations
|
(
|
)
|
(
|
)
|
||||
Purchase of treasury stock
|
(
|
)
|
|
|||||
Increase in overdraft balances
|
|
|
||||||
Dividends paid
|
(
|
)
|
(
|
)
|
||||
Net cash provided by financing activities
|
|
|
||||||
Effect of exchange rate changes on cash
|
(
|
)
|
|
|||||
Net increase (decrease) in cash and cash equivalents
|
(
|
)
|
|
|||||
CASH AND CASH EQUIVALENTS at beginning of period
|
|
|
||||||
CASH AND CASH EQUIVALENTS at end of period
|
$
|
|
$
|
|
||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$
|
|
$
|
|
||||
Income taxes
|
$
|
|
$
|
|
(In thousands)
|
Common
Stock
|
Capital in
Excess of
Par Value
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Treasury
Stock
|
Total
SMP
|
Non-
Controlling
Interest
|
Total
|
||||||||||||||||||||||||
Balance at December 31, 2023
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Net earnings
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||||||||
Cash dividends paid
|
|
|
(
|
)
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||
Purchase of treasury stock |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Employee Stock Ownership Plan
|
||||||||||||||||||||||||||||||||
Balance at March 31, 2024
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Common Stock
|
Capital in Excess of Par Value
|
Retained Earnings
|
Accumulated Other Comprehensive Income (Loss)
|
Treasury Stock
|
Total
SMP
|
Non-
Controlling Interest
|
Total
|
||||||||||||||||||||||||
Balance at December 31, 2022
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Net earnings
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||||||||
Cash dividends paid
|
|
|
(
|
)
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Employee Stock Ownership Plan
|
||||||||||||||||||||||||||||||||
Balance at March 31, 2023
|
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ |
Standard
|
Description
|
Effective date
|
Effects on the financial statements or other significant matters
|
ASU 2023-07,
Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures
|
ASU 2023-07 will improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses on an interim and annual basis.
ASU 2023-07 expands segment disclosures by requiring disclosure of (1) significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within
each reported measure of segment profit or loss; (2) the amount and description of the composition of other segment items to reconcile to segment profit and loss; and (3) the CODM’s title and position and how the CODM uses the reported
segment measures to allocate resources. Additionally, ASU 2023-07 requires interim disclosures of all reportable segment profit or loss and assets previously required annually by Topic 280.
|
The ASU is effective for the fiscal years beginning after December 15, 2023, which for us is December 31, 2024, and all subsequent interim periods, with full retrospective application required to
all prior periods presented. Early adoption is permitted.
|
The new standard will require expanding our segment disclosure to include additional segment level information. We are currently evaluating the full impact of adopting ASU 2023-07 on our
consolidated financial statements, disclosures, processes and controls. On an ongoing basis, we will continue to assess the impact of the new standard through our planned date of adoption of December 31, 2024.
|
ASU 2023-09,
Income Taxes (Topic 270): Improvements to Income Tax Disclosures
|
ASU 2023-09 will improve transparency and decision making usefulness of income tax disclosures.
ASU 2023-09 will expand the annual required effective income tax rate reconciliation disclosures to include (1) eight specific categories of rate reconciling items; (2) additional information for
reconciling items that meet or exceed a quantitative threshold; and (3) expand the required disclosures to include reconciling percentages as well as reported amounts. Additionally, the ASU 2023-09 will expand required annual disclosures
of income taxes paid to include the disaggregation by federal, state and foreign jurisdictions.
|
The ASU is effective for annual reporting periods beginning after December 15, 2024, which for us is December 31, 2025, with prospective application. Early adoption and retrospective
application are permitted.
|
The new standard will require expanding our annual income tax disclosures in our financial statements. We are currently evaluating the full impact of adopting ASU 2023-09 on our
consolidated financial statements, disclosures, processes and controls. On an ongoing basis, we will continue to assess the impact of the new standard through our planned date of adoption of December 31, 2025.
|
Total purchase consideration (a)
|
$
|
|
||||||
Assets acquired and liabilities assumed:
|
||||||||
Cash and cash equivalents
|
$
|
|
||||||
Receivables
|
|
|||||||
Inventory
|
|
|||||||
Other current assets
|
|
|||||||
Property, plant and equipment, net
|
|
|||||||
Operating lease right-of-use assets
|
|
|||||||
Intangible assets (b)
|
|
|||||||
Goodwill
|
|
|||||||
Long term investments and other assets
|
|
|||||||
Current liabilities
|
(
|
)
|
||||||
Noncurrent operating lease liabilities
|
(
|
)
|
||||||
Subtotal
|
|
|||||||
Fair value of acquired noncontrolling interest
|
(
|
)
|
||||||
Total purchase consideration allocated to net assets acquired
|
$
|
|
(a) | |
(b) | |
|
Workforce
Reduction
|
Other Exit
Costs
|
Total
|
|||||||||
Exit activity liability at December 31, 2023
|
$
|
|
$
|
|
$
|
|
||||||
Restructuring and integration costs: |
||||||||||||
Amounts provided for during 2024 (a)
|
||||||||||||
Cash payments
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Foreign currency exchange rate changes
|
( |
) | ( |
) | ||||||||
Exit activity liability at March 31, 2024
|
$
|
|
$
|
|
$
|
|
(a)
|
|
|
March 31,
2024
|
December 31,
2023
|
||||||
|
(In thousands)
|
|||||||
Finished goods
|
$
|
|
$
|
|
||||
Work in process
|
|
|
||||||
Raw materials
|
|
|
||||||
Subtotal
|
|
|
||||||
Unreturned customer inventories
|
|
|
||||||
Total inventories
|
$
|
|
$
|
|
|
March 31,
2024
|
December 31,
2023
|
||||||
|
(In thousands)
|
|||||||
Customer relationships
|
$
|
|
$
|
|
||||
Patents, developed technology and intellectual property
|
|
|
||||||
Trademarks and trade names
|
|
|
||||||
Non-compete agreements
|
|
|
||||||
Supply agreements
|
|
|
||||||
Leaseholds
|
|
|
||||||
Total acquired intangible assets
|
|
|
||||||
Less: Accumulated amortization (a)
|
(
|
)
|
(
|
)
|
||||
Net acquired intangible assets
|
$
|
|
$
|
|
(a) |
|
Balance Sheet Information
|
March 31,
2024
|
December 31,
2023
|
||||||
Assets
|
||||||||
Operating lease right-of-use assets
|
$
|
|
$
|
|
||||
Liabilities
|
||||||||
Sundry payables and accrued expenses
|
$
|
|
$
|
|
||||
Noncurrent operating lease liabilities
|
|
|
||||||
Total operating lease liabilities
|
$
|
|
$
|
|
||||
Weighted Average Remaining Lease Term
|
||||||||
Operating leases
|
|
|
||||||
Weighted Average Discount Rate
|
||||||||
Operating leases
|
|
|
||||||
Three Months Ended
|
||||||||
Expense and Cash Flow Information
|
March 31,
|
|||||||
Lease Expense
|
2024 |
2023 |
||||||
Operating lease expense (a)
|
$
|
|
$
|
|
||||
Supplemental Cash Flow Information
|
||||||||
Cash paid for the amounts included in the measurement of lease liabilities:
|
||||||||
Operating cash flows from operating leases
|
$
|
|
$
|
|
||||
Right-of-use assets obtained in exchange for new operating lease obligations (b)
|
$
|
|
$
|
|
(a)
|
|
(b)
|
|
2024
|
$
|
|
||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
2028
|
|
|||
Thereafter
|
|
|||
Total lease payments
|
$
|
|
||
Less: Interest
|
(
|
)
|
||
Present value of lease liabilities
|
$
|
|
|
March 31,
2024
|
December 31,
2023
|
||||||
|
(In thousands)
|
|||||||
Credit facility – term loan due 2027 |
$ |
$ |
||||||
Credit facility – revolver due 2027 |
||||||||
Other
|
|
|
||||||
Total debt
|
$
|
|
$
|
|
||||
|
||||||||
Current maturities of debt
|
$
|
|
$
|
|
||||
Long-term debt
|
|
|
||||||
Total debt
|
$
|
|
$
|
|
Revolving
Credit Facility
|
Term Loan
Facility
|
Polish
Overdraft
Facility and
Other Debt
|
Total
|
|||||||||||||
Remainder of 2024
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
2025
|
|
|
|
|
||||||||||||
2026
|
|
|
|
|
||||||||||||
2027
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Less: Current maturities
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||
Long-term debt
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended March 31,
2024
|
||||||||||||||||
Foreign
Currency
Translation
|
Unrealized
derivative
gains
(losses)
|
Unrecognized
Postretirement
Benefit Costs
(Credit)
|
Total
|
|||||||||||||
Balance at December 31, 2023
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
||||||
Other comprehensive income (loss) before reclassifications
|
(
|
)
|
|
(a) |
|
|
||||||||||
Amounts reclassified from accumulated other comprehensive income
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||
Other comprehensive income (loss), net
|
(
|
)
|
|
(
|
)
|
|
||||||||||
Balance at March 31,
2024
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
(a)
|
|
|
Three Months Ended
|
|||
|
March 31, 2024
|
|||
Derivative cash flow hedge:
|
||||
Unrecognized (gain) loss (a)
|
$
|
(
|
)
|
|
Postretirement benefit plans:
|
||||
Unrecognized (gain) loss (b)
|
(
|
)
|
||
Total before income tax
|
(
|
)
|
||
Income tax (expense) benefit
|
(
|
)
|
||
Total reclassifications
|
$
|
(
|
)
|
(a)
|
|
(b)
|
|
Shares
|
Weighted Average
Grant Date Fair
Value Per Share
|
|||||||
Balance at December 31, 2023
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Forfeited
|
(
|
)
|
|
|||||
Balance at March 31, 2024
|
|
$
|
|
March 31, 2024
|
December 31, 2023
|
||||||||||||||||
Fair Value
Hierarchy
|
Fair Value | Carrying Amount | Fair Value | Carrying Amount | |||||||||||||
Cash and cash equivalents (a)
|
LEVEL1/2
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Deferred compensation
|
LEVEL 1
|
|
|
|
|
||||||||||||
Short term borrowings
|
LEVEL 2
|
|
|
|
|
||||||||||||
Long-term debt
|
LEVEL 2
|
|
|
|
|
||||||||||||
Cash flow interest rate swap
|
LEVEL 2
|
|
|
|
|
||||||||||||
Long-term investments | LEVEL 2 |
(a)
|
|
|
Three Months Ended
March 31,
|
|||||||
2024 |
2023 |
|||||||
Net Earnings Attributable to SMP -
|
|
|
||||||
Earnings from continuing operations
|
$
|
|
$
|
|
||||
Loss from discontinued operations
|
(
|
)
|
(
|
)
|
||||
Net earnings attributable to SMP
|
$
|
|
$
|
|
||||
|
||||||||
Basic Net Earnings Per Common Share Attributable to SMP -
|
|
|
||||||
Earnings from continuing operations per common share
|
$
|
|
$
|
|
||||
Loss from discontinued operations per common share
|
(
|
)
|
(
|
)
|
||||
Net earnings per common share attributable to SMP
|
$
|
|
$
|
|
||||
Weighted average common shares outstanding | ||||||||
|
||||||||
Diluted Net Earnings Per Common Share Attributable to SMP -
|
||||||||
Earnings from continuing operations per common share
|
$
|
|
$
|
|
||||
Loss from discontinued operations per common share
|
(
|
)
|
(
|
)
|
||||
Net earnings per common share attributable to SMP
|
$
|
|
$
|
|
||||
|
||||||||
Weighted average common shares outstanding
|
|
|
||||||
Plus incremental shares from assumed conversions:
|
||||||||
Dilutive effect of restricted stock and performance-based stock
|
|
|
||||||
Weighted average common shares outstanding – Diluted
|
|
|
|
Three Months Ended
March 31,
|
|||||||
|
2024
|
2023
|
||||||
Restricted and performance-based shares
|
|
|
|
Three Months Ended
March 31,
|
|||||||
|
2024
|
2023
|
||||||
Net Sales (a)
|
||||||||
Vehicle Control
|
$ | $ | ||||||
Temperature Control
|
|
|
||||||
Engineered Solutions
|
||||||||
Other
|
|
|
||||||
Consolidated
|
$
|
|
$
|
|
||||
|
||||||||
Operating Income (Loss)
|
||||||||
Vehicle Control |
$ | $ | ||||||
Temperature Control
|
|
|
||||||
Engineered Solutions
|
||||||||
Other
|
(
|
)
|
(
|
)
|
||||
Consolidated
|
$
|
|
$
|
|
(a) |
|
Three Months Ended
March 31,
|
||||||||
2024
|
2023
|
|||||||
Vehicle Control
|
||||||||
Engine Management (Ignition, Emissions and Fuel Delivery)
|
$
|
|
$
|
|
||||
Electrical and Safety
|
|
|
||||||
Wire Sets and Other
|
|
|
||||||
Total Vehicle Control
|
|
|
||||||
Temperature Control
|
||||||||
AC System Components
|
|
|
||||||
Other Thermal Components
|
|
|
||||||
Total Temperature Control
|
|
|
||||||
Engineered Solutions
|
||||||||
Commercial Vehicle
|
|
|
||||||
Construction/Agriculture
|
|
|
||||||
Light Vehicle
|
|
|
||||||
All Other
|
|
|
||||||
Total Engineered Solutions
|
|
|
||||||
Other |
||||||||
Total
|
$
|
|
$
|
|
Three
months ended March 31, 2024
|
Vehicle
Control
|
Temperature
Control
|
Engineered
Solutions
|
Other
|
Total
|
|||||||||||||||
Geographic Area:
|
||||||||||||||||||||
United States
|
$ |
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||
Canada
|
|
|
|
|
||||||||||||||||
Europe
|
|
|
|
|
||||||||||||||||
Mexico
|
|
|
|
|
||||||||||||||||
Asia
|
|
|
|
|
||||||||||||||||
Other foreign
|
|
|
|
|
||||||||||||||||
Total
|
$ |
$
|
|
$
|
|
$
|
|
$
|
|
Three
months ended March 31, 2023
|
Vehicle
Control
|
Temperature
Control
|
Engineered
Solutions
|
Other
|
Total
|
|||||||||||||||
Geographic Area:
|
||||||||||||||||||||
United States
|
$ |
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||
Canada
|
|
|
|
|
||||||||||||||||
Europe
|
|
|
|
|
||||||||||||||||
Mexico
|
|
|
|
|
||||||||||||||||
Asia |
||||||||||||||||||||
Other foreign
|
|
|
|
|
||||||||||||||||
Total
|
$ |
$
|
|
$
|
|
$
|
|
$
|
|
|
Three Months Ended
March 31,
|
|||||||
|
2024
|
2023
|
||||||
Balance, beginning of period
|
$
|
|
$
|
|
||||
Liabilities accrued for current year sales
|
|
|
||||||
Settlements of warranty claims
|
(
|
)
|
(
|
)
|
||||
Balance, end of period
|
$
|
|
$
|
|
|
ITEM 2. |
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
(In thousands, except per share data)
|
2024
|
2023
|
||||||
Net sales
|
$
|
331,403
|
$
|
328,028
|
||||
Gross profit
|
89,522
|
91,267
|
||||||
Gross profit %
|
27
|
%
|
27.8
|
%
|
||||
Operating income
|
14,619
|
20,746
|
||||||
Operating income %
|
4.4
|
%
|
6.3
|
%
|
||||
Earnings from continuing operations before income taxes
|
13,371
|
17,109
|
||||||
Provision for income taxes
|
3,342
|
4,372
|
||||||
Earnings from continuing operations
|
10,029
|
12,737
|
||||||
Loss from discontinued operations, net of income taxes
|
(1,039
|
)
|
(780
|
)
|
||||
Net earnings
|
8,990
|
11,957
|
||||||
Net earnings attributable to noncontrolling interest
|
166
|
39
|
||||||
Net earnings attributable to SMP
|
8,824
|
11,918
|
||||||
Per share data attributable to SMP – Diluted:
|
||||||||
Earnings from continuing operations
|
$
|
0.44
|
$
|
0.57
|
||||
Discontinued operations
|
(0.05
|
)
|
(0.03
|
)
|
||||
Net earnings per common share
|
$
|
0.39
|
$
|
0.54
|
• |
the stable demand in the automotive aftermarket business with expected flat to low single digit annual sales growth,
|
• |
the timing of pre-season customer orders in our Temperature Control operating segment in 2024, which were slightly lower than the strong customer orders in the first quarter of 2023. Overall, full year results at Temperature Control will
be dependent upon summer weather conditions and customer inventory levels, and
|
• |
strong customer demand and new business wins in our Engineered Solutions operating segment with continued optimism about the long-term growth potential of the complementary markets served in this segment.
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2024
|
2023
|
|||||||
Vehicle Control
|
||||||||
Engine Management (Ignition, Emissions and Fuel Delivery)
|
$
|
116,085
|
$
|
116,083
|
||||
Electrical and Safety
|
52,407
|
51,804
|
||||||
Wire Sets and Other
|
17,032
|
16,690
|
||||||
Total Vehicle Control
|
185,524
|
184,577
|
||||||
Temperature Control
|
||||||||
AC System Components
|
49,960
|
50,798
|
||||||
Other Thermal Components
|
21,648
|
21,608
|
||||||
Total Temperature Control
|
71,608
|
72,406
|
||||||
Engineered Solutions
|
||||||||
Commercial Vehicle
|
22,908
|
20,232
|
||||||
Construction/Agriculture
|
10,076
|
11,692
|
||||||
Light Vehicle
|
21,803
|
23,019
|
||||||
All Other
|
19,484
|
16,102
|
||||||
Total Engineered Solutions
|
74,271
|
71,045
|
||||||
Other
|
—
|
—
|
||||||
Total
|
$
|
331,403
|
$
|
328,028
|
Three Months Ended
March 31,
|
Vehicle Control
|
Temperature Control
|
Engineered Solutions
|
Other
|
Total
|
|||||||||||||||
2024
|
||||||||||||||||||||
Net sales
|
$
|
185,524
|
$
|
71,608
|
$
|
74,271
|
$
|
—
|
$
|
331,403
|
||||||||||
Gross margins
|
58,899
|
19,689
|
10,934
|
—
|
89,522
|
|||||||||||||||
Gross margin percentage
|
31.7
|
%
|
27.5
|
%
|
14.7
|
%
|
—
|
27
|
%
|
|||||||||||
2023
|
||||||||||||||||||||
Net sales
|
$
|
184,577
|
$
|
72,406
|
$
|
71,045
|
$
|
—
|
$
|
328,028
|
||||||||||
Gross margins
|
58,472
|
19,155
|
13,640
|
—
|
91,267
|
|||||||||||||||
Gross margin percentage
|
31.7
|
%
|
26.5
|
%
|
19.2
|
%
|
—
|
27.8
|
%
|
March 31,
|
December 31,
|
|||||||||||
(In thousands)
|
2024
|
2023
|
2023
|
|||||||||
Operating cash flows
|
$
|
(45,716
|
)
|
$
|
(20,442
|
)
|
$
|
144,260
|
||||
Total debt
|
$
|
214,902
|
$
|
273,101
|
$
|
156,211
|
||||||
Cash and cash equivalents
|
27,113
|
24,196
|
32,526
|
|||||||||
Net debt
|
$
|
187,789
|
$
|
248,905
|
$
|
123,685
|
||||||
Remaining borrowing capacity
|
$
|
274,230
|
$
|
220,881
|
$
|
334,180
|
||||||
Total liquidity
|
301,343
|
245,077
|
366,706
|
ITEM 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4. |
CONTROLS AND PROCEDURES
|
ITEM 1. |
LEGAL PROCEEDINGS
|
ITEM 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
Total Number of
Shares Purchased
(a)
|
Average
Price Paid Per Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs (b)
|
Maximum Number (or
Approximate Dollar
Value) of Shares that
may yet be Purchased
Under the Plans or
Programs (b)
|
||||||||||||
January 1 – 31, 2024
|
—
|
$
|
—
|
—
|
$
|
—
|
||||||||||
February 1 – 29, 2024
|
—
|
—
|
—
|
—
|
||||||||||||
March 1 – 31, 2024
|
79,922
|
32.18
|
79,922
|
27,428,342
|
||||||||||||
Total
|
79,922
|
$
|
32.18
|
79,922
|
$
|
27,428,342
|
(a) |
All shares were purchased through the publicly announced stock repurchase programs in open-market transactions.
|
(b) |
In July 2022, our Board of Directors authorized the purchase of up $30 million of our common stock under a stock repurchase program. Stock will be purchased from time to time in the open market, or through private transactions, as market
conditions warrant. Under this program, during the three months ended March 31, 2024, we repurchased 79,922 shares of our common stock at a total cost of $2.6 million. As of March 31, 2024, there was approximately $27.4 million available
for future stock purchases under the program. From the end of the first quarter through April 29, 2024, we repurchased an additional
106,440 shares of our common stock under the program at a total cost of $3.5 million, thereby reducing the amount available for future repurchases under the Board of Directors authorization to $23.9 million.
|
ITEM 6. |
EXHIBITS
|
Exhibit
Number
|
|
31.1
|
|
31.2
|
|
32.1
|
|
32.2
|
|
101.INS**
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
|
101.SCH**
|
Inline XBRL Taxonomy Extension Schema Document.
|
101.CAL**
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.LAB**
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE**
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
101.DEF**
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
104
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
|
STANDARD MOTOR PRODUCTS, INC.
|
|
(Registrant)
|
|
Date: May 1, 2024
|
/s/ Nathan R. Iles
|
Nathan R. Iles
|
|
Chief Financial Officer
|
|
(Principal Financial and
|
|
Accounting Officer)
|