Standard Motor Products 3Q Results
NEW YORK--Oct. 22, 2001--Standard Motor Products, Inc. (NYSE:SMP - news) automotive replacement parts manufacturer and distributor, reported net sales for the third quarter of 2001, the three months ended September 30, 2001, of $163.7 million, slightly lower than net sales of $166.1 million during the comparable quarter of a year ago.
Net earnings for the third quarter of 2001 were $3.7 million or 32 cents per diluted share, as compared to net earnings of $4.9 million or 40 cents per diluted share, in the third quarter of 2000.
Sales for the nine months in 2001 were $506.1 million, 3.8% higher than net sales of $487.4 million in the comparable period in 2000. Net earnings for the nine months in 2001 were $3.8 million or 33 cents per diluted share, as compared to $11.8 million or 98 cents per diluted share a year ago. Excluding $2.8 million and $501,000 in 2001 and 2000, respectively, for the extraordinary losses on early retirement of debt, net earnings for the nine months would have been 56 cents and $1.02 per diluted share in 2001 and 2000, respectively.
Mr. Lawrence Sills, Chief Executive Officer, said, ``Despite our slight sales decline in the third quarter, on a year-to-date basis, both Engine Management and Temperature Control are experiencing favorable net sales growth, mostly as the result of new accounts.''
Mr. Sills stated, ``Gross margins for the year have been negatively impacted as we implemented our $50 million inventory reduction program. Year-to-date gross margins were 28.5% as compared to 31.7% in the prior year. However, as we begin to return to normal production, we are seeing some improvement, as gross margins for the quarter reached 30.7%. We anticipate future improvement in the quarters ahead.''
``Our inventory reduction efforts, across both Engine Management and Temperature Control, successfully reduced $57 million from the beginning of the year. During this same period, we have been able to maintain our high shipping fill rates to our customers, a critical performance measurement.''
Mr. Sills said, ``Selling, general and administrative (SG&A) expenses in the third quarter 2001 were $40.7 million, $1.2 million higher than the $39.5 million a year ago. However, year-to-date SG&A expenses were reduced $2.4 million to 24% percent of net sales as compared to 25.4% of sales in the comparable period a year ago. This reflects the result of our continuing cost cutting efforts.''
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, 2001 to stockholders of record on November 15, 2001.
This news release contains certain forward-looking statements that involve risks and uncertainties. Actual results, events and performance could differ materially from those contemplated by these forward looking statements. Among the factors that could cause actual results, events and performance to differ materially are risks and uncertainties discussed in this release and those detailed from time-to-time in prior public statements and the Company's filings with the Securities and Exchange Commission, including the Company's annual report on Form 10-K and the Company's quarterly reports on Form 10-Q.
Standard Motor Products will hold a conference call at 10:30 AM,
Eastern Standard Time, on Monday, October 22, 2001. The dial in number
is 1-800-540-0559 and the ID# is J405. The playback number is
1-877-856-8966.
STANDARD MOTOR PRODUCTS, INC.
Consolidated Statements of Earnings
(Dollars in thousands, except per share amounts)
THREE-MONTHS ENDED NINE-MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2001 2000 2001 2000
NET SALES $163,670 $166,065 $506,126 $487,382
COST OF SALES 113,477 114,905 362,056 332,964
GROSS PROFIT 50,193 51,160 144,070 154,418
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES 40,729 39,467 121,503 123,938
OPERATING INCOME 9,464 11,693 22,567 30,480
OTHER INCOME, NET 819 190 1,119 663
INTEREST EXPENSE 4,795 4,959 13,962 13,613
EARNINGS BEFORE TAXES AND
EXTRAORDINARY ITEM 5,488 6,924 9,724 17,530
INCOME TAXES 1,740 2,066 3,082 5,251
EARNINGS BEFORE EXTRAORDINARY
ITEM 3,748 4,858 6,642 12,279
EXTRAORDINARY LOSS ON EARLY
EXTINGUISHMENT
OF DEBT, NET OF TAXES - - (2,797) (501)
NET EARNINGS $3,748 $4,858 $3,845 $11,778
NET EARNINGS PER COMMON SHARE:
BASIC EARNINGS PER SHARE
BEFORE EXTRAORDINARY ITEM $0.32 $0.41 $0.56 $1.02
EXTRAORDINARY LOSS ON EARLY
EXTINGUISHMENT OF DEBT - - (0.24) (0.04)
NET EARNINGS PER COMMON SHARE
- BASIC $0.32 $0.41 $0.33 $0.98
DILUTED EARNINGS PER SHARE
BEFORE EXTRAORDINARY ITEM $0.32 $0.40 $0.56 $1.02
EXTRAORDINARY LOSS ON EARLY
EXTINGUISHMENT OF DEBT - - (0.24) (0.04)
NET EARNINGS PER COMMON SHARE
- DILUTED $0.32 $0.40 $0.33 $0.98
Weighted Average Number of
Common Shares 11,797,961 11,697,788 11,764,870 12,013,886
Weighted Average Number
of Common and Dilutive
Shares 11,893,848 14,493,788 11,816,646 12,062,000
STANDARD MOTOR PRODUCTS
CONDENSED CONSOLIDATING BALANCE SHEETS
(Dollars in thousands)
ASSETS
September 30, December 31,
2001 2000
Cash and investments $11,814 $7,699
Accounts receivable, gross 185,679 110,838
Allowance for doubtful accounts 4,939 4,577
Accounts receivable, net 180,740 106,261
Inventories 177,187 234,257
Other current assets 28,908 24,542
Total current assets 398,649 372,759
Property, plant and equipment, net 104,028 104,536
Goodwill 38,955 40,685
Other assets 37,125 31,416
Total assets $578,757 $549,396
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable $4,577 $38,930
Current portion of long term debt 1,827 13,643
Accounts payable trade 36,435 56,612
Accrued customer returns 25,404 17,693
Other current liabilities 58,846 57,790
Total current liabilities 127,089 184,668
Long-term debt 237,392 150,018
Postretirement & other liabilities 21,869 20,405
Total liabilities 386,350 355,091
Total stockholders' equity 192,407 194,305
Total liabilities and stockholders' equity $578,757 $549,396