Standard Motor Products, Inc. Announces Fourth Quarter 2000 Earnings
NEW YORK--March 15, 2001--Standard Motor Products, Inc. automotive replacement parts manufacturer and distributor, reported its financial results for the fourth quarter of 2000, the three months ended December 31, 2000, and the full year 2000.Net sales for the fourth quarter of 2000 were $116.6 million, 35.6% higher than net sales of $86 million during the comparable quarter of a year ago. Net losses for the fourth quarter of 2000 were $2 million or 18 cents per diluted share, compared to net losses of $17.6 million, or $1.36 per diluted share in the fourth quarter of 1999. The fourth quarter of 1999 included $8 million for non-recurring items.
Net sales for the full year 2000 were $606.5 million, 7.9% lower than net sales of $658.2 million in 1999. Net earnings in 2000 were $9.7 million or 81 cents per diluted share, compared to $7.6 million or 58 cents per diluted share in 1999. Excluding extraordinary losses on the early extinguishment of debt in 2000 and 1999, net earnings for the full year 2000 were $10.2 million or 85 cents per diluted share, as compared to net earnings of $8.7 million or 66 cents per diluted share of a year ago.
Mr. Lawrence Sills, Chief Executive Officer, said, "The improvement in net sales for the quarter was a combination of approximately a $14 million increase in Engine Management net sales and a $17 million reduction in Temperature Control customer returns. The reduction in customer returns was a direct benefit from stricter return policies implemented in early 2000 and our 1999 decision to consolidate our Four Seasons and Cooper product offerings."
Mr. Sills added, "The full year 2000 net sales shortfall was entirely in Temperature Control products. As previously stated, the combination of customer inventory reduction efforts, the loss of a large retail account and a very cool and wet summer season in the northeast and mid-west, led to the net sales shortfall. We believe such inventory reduction efforts are essentially completed. In addition, with respect to the lost customer, such customer was reacquired in the beginning of 2001. Net sales in 2001 should be benefited by these factors; however, weather conditions as previously mentioned play a significant role in our Temperature Control business."
Mr. Sills stated, "Gross margins for the full year improved from 29.2% in 1999 to 31.4% in 2000. Gross margins improved in both Engine Management and Temperature Control divisions from cost reduction efforts and reduced customer returns."
Mr. Sills commented, "Inventories increased approximately $46 million over 1999 levels in both Engine Management and Temperature Control divisions due to the sales shortfall in Temperature Control and the build-up in Engine Management for a major new account. Inventory is expected to be dramatically reduced in 2001. It is our single highest priority."
STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Dollars in thousands, except for shares and per share data)
For Three-Months Ended
December 31,
2000 1999
---------- ---------
Net sales $116,587 $85,979
Cost of sales 83,001 74,289
Gross profit 33,586 11,690
Selling, general and
administrative expenses 33,402 32,334
Operating income 184 (20,644)
Other income (expense)
- net (166) (494)
Interest expense 4,432 3,691
Earnings before taxes and
extraordinary item (4,414) (24,829)
Income taxes (2,365) (7,260)
Earnings (loss) before
extraordinary item (2,049) (17,569)
Extraordinary loss on early
extinguishment of debt - -
Net earnings
(loss) (2,049) (17,569)
Net Earnings per Common
Share
Net earnings per common
share - basic:
Earnings per share before
extraordinary item ($0.18) ($1.36)
Extraordinary loss on early
extinguishment of debt - -
Net earnings per common share
- basic ($0.18) ($1.36)
Net earnings per common share
- diluted:
Earnings per share before
extraordinary item ($0.18) ($1.36)
Extraordinary loss on early
extinguishment of debt - -
Net earnings per common share
- diluted ($0.18) ($1.36)
Weighted average number of
common shares 11,695,179 12,912,114
Weighted average number of
common and dilutive shares 11,695,179 12,912,114
For Twelve-Months Ended
December 31,
2000 1999
------------- -----------
Net sales $606,450 $658,241
Cost of sales 415,965 466,110
Gross profit 190,485 192,131
Selling, general and
administrative expenses 159,821 162,587
Operating income 30,664 29,544
Other income (expense)
- net 497 (1,564)
Interest expense 18,045 15,951
Earnings before
taxes and extraordinary
item 13,116 12,029
Income taxes 2,886 3,344
Earnings (loss) before
extraordinary item 10,230 8,685
Extraordinary loss on
early extinguishment of
debt 501 1,060
Net earnings
(loss) 9,729 7,625
Net Earnings per Common Share
Net earnings per common
share - basic:
Earnings per share before
extraordinary item $0.86 $0.66
Extraordinary loss on early
extinguishment of debt (0.04) (0.08)
Net earnings per common share
- basic $0.82 $0.58
Net earnings per common share
- diluted:
Earnings per share before
extraordinary item $0.85 $0.66
Extraordinary loss on early
extinguishment of debt (0.04) (0.08)
Net earnings per common share
- diluted $0.81 $0.58
Weighted average number of
common shares 11,933,774 13,073,272
Weighted average number of
common and dilutive shares 11,974,341 13,145,743
STANDARD MOTOR PRODUCTS
CONDENSED CONSOLIDATING BALANCE SHEETS
(Dollars in thousands)
ASSETS
December 31, December 31,
2000 1999
------------- ------------
Cash and investments $ 7,699 $ 40,380
Accounts receivable, gross 110,838 124,246
Allowance for doubtful accounts 4,577 4,611
Accounts receivable, net 106,261 119,635
Inventories 234,257 188,400
Other current assets 24,542 26,278
Total current assets 372,759 374,693
Property, plant and equipment, net 104,536 106,578
Other assets 72,101 74,750
Total assets $ 549,396 $ 556,021
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable $ 38,930 $ 2,645
Current portion of long term debt 13,643 28,912
Accounts payable trade 56,612 41,708
Accrued customer returns 17,693 22,698
Other current liabilities 57,790 72,924
Total current liabilities 184,668 168,887
Long-term debt 150,018 163,868
Postretirement & other liabilities 20,405 19,748
Total liabilities 355,091 352,503
Total stockholders' equity 194,305 203,518
Total liabilities and stockholders' $ 549,396 $ 556,021
equity