Standard Motor Products, Inc. Announces First Quarter 2003 Results and a Quarterly Dividend
NEW YORK--April 24, 2003--Standard Motor Products, Inc. , an automotive replacement parts manufacturer and distributor, reported consolidated net sales for the first quarter of 2003, the three months ended March 31, 2003, of $135.7 million, compared to consolidated net sales of $126.3 million during the comparable quarter of a year ago.The net loss for the first quarter of 2003 was $1.0 million, or 8 cents per diluted share, compared to a net loss of $20.6 million, or $1.74 per diluted share, in the first quarter of 2002 (which included an $18.3 million charge for the cumulative effect of accounting changes related to the impairment of goodwill). The diluted loss per share from continuing operations in the first quarter of 2003 was 5 cents compared to 16 cents in the comparable period a year ago.
Mr. Lawrence Sills, Standard Motor Products, Inc.'s Chief Executive Officer, commented that "2003 started off on a very positive note. Net sales in the first quarter of 2003 increased $9.4 million, or 7.4%, compared to the comparable quarter of a year ago, while operating income went from essentially a breakeven in the first quarter of 2002, which is normally a very low quarter, to $2.3 million in the first quarter of 2003."
"The net sales growth was especially strong in our Engine Management division, with an increase of $10.8 million, or nearly 16%, compared to the comparable quarter of a year ago. Our Temperature Control division was down, however, by $3.6 million, primarily due to the loss of the balance of AutoZone's business. AutoZone, you may recall, moved half of the business to different suppliers last year, and has now moved the balance of it this year. However, as a result of some additional new business and the implementation of cost reductions, we currently anticipate that the net effect on profits will be minimal."
"Gross margins improved slightly from 24.7% in the first quarter of 2002 to 25.4% in the first quarter of 2003. Most significantly, Engine Management gross margins held at 29.2% in the first quarter of 2003. We expect our Engine Management sales to double as a result of the acquisition of Dana's Engine Management division."
Mr. Sills concluded, "As we previously announced, we plan to consummate the acquisition of Dana Corporation's Engine Management business in the second quarter of 2003. Our integration planning for the business consolidation is proceeding well, and we have received favorable customer reaction."
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 June 2, 2003 to stockholders of record on May 15, 2003.
STANDARD MOTOR PRODUCTS, INC.
Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
THREE-MONTHS ENDED
MARCH 31,
2003 2002
-----------------------
NET SALES $135,725 $126,321
COST OF SALES 101,185 95,151
----------- -----------
GROSS PROFIT 34,540 31,170
SELLING, GENERAL & ADMINISTRATIVE EXPENSES 32,212 31,063
----------- -----------
OPERATING INCOME 2,328 107
OTHER INCOME (EXPENSE), NET (274) 668
INTEREST EXPENSE 3,018 3,462
----------- -----------
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES (964) (2,687)
INCOME TAX EXPENSE (BENEFIT) (357) (766)
----------- -----------
LOSS FROM CONTINUING OPERATIONS (607) (1,921)
LOSS FROM DISCONTINUED OPERATION, NET OF TAX (348) (319)
----------- -----------
LOSS BEFORE CUMULATIVE EFFECT OF ACCOUNTING
CHANGE (955) (2,240)
CUMULATIVE EFFECT OF ACCOUNTING CHANGE, NET OF
TAX - (18,350)
----------- -----------
NET LOSS $(955) $(20,590)
=========== ===========
NET LOSS PER COMMON SHARE:
BASIC LOSS FROM CONTINUING OPERATIONS $(0.05) $(0.16)
DISCONTINUED OPERATION (0.03) (0.03)
CUMULATIVE EFFECT OF ACCOUNTING CHANGE - (1.55)
----------- -----------
NET LOSS PER COMMON SHARE - BASIC $(0.08) $(1.74)
=========== ===========
DILUTED LOSS FROM CONTINUING OPERATIONS $(0.05) $(0.16)
DISCONTINUED OPERATION (0.03) (0.03)
CUMULATIVE EFFECT OF ACCOUNTING CHANGE - (1.55)
----------- -----------
NET LOSS PER COMMON SHARE - DILUTED $(0.08) $(1.74)
=========== ===========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES 11,972,853 11,827,636
WEIGHTED AVERAGE NUMBER OF COMMON SHARES AND
DILUTIVE SHARES 11,972,853 11,827,636
STANDARD MOTOR PRODUCTS
CONDENSED CONSOLIDATING BALANCE SHEETS
(Dollars in thousands)
ASSETS
March 31, Dec. 31,
2003 2002
--------- ---------
Cash $7,254 $9,690
Marketable securities 7,200 7,200
Accounts receivable, gross 146,362 122,526
Allowance for doubtful accounts 5,726 4,882
--------- ---------
Accounts receivable, net 140,636 117,644
Inventories 179,572 174,785
Other current assets 19,397 19,041
--------- ---------
Total current assets 354,059 328,360
--------- ---------
Property, plant and equipment, net 101,183 103,822
Goodwill 16,683 16,683
Other assets 42,420 41,893
--------- ---------
Total assets $514,345 $490,758
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable $4,703 $3,369
Current portion of long term debt 3,755 4,108
Accounts payable trade 41,233 35,744
Accrued customer returns 13,831 16,341
Other current liabilities 37,629 51,866
--------- ---------
Total current liabilities 101,151 111,428
--------- ---------
Long-term debt 202,601 169,440
Accrued asbestos liabilities 25,577 25,595
Postretirement & other liabilities 31,437 30,414
--------- ---------
Total liabilities 360,766 336,877
--------- ---------
Total stockholders' equity 153,579 153,881
--------- ---------
Total liabilities and stockholders' equity $514,345 $490,758
========= =========