Standard Motor Products, Inc. Announces Second Quarter 2006 Results and a Quarterly Dividend
NEW YORK, Aug. 7, 2006 -- Standard Motor Products, Inc. , an automotive replacement parts manufacturer and distributor, reported today its consolidated financial results for the three months and six months ended June 30, 2006.
Consolidated net sales for the second quarter of 2006 were $229.2 million, compared to consolidated net sales of $226.5 million during the comparable quarter in 2005. Earnings from continuing operations for the second quarter of 2006 were $5.5 million or 30 cents per diluted share, compared to a loss of $1.3 million or 7 cents per diluted share in the second quarter of 2005.
Consolidated net sales for the six month period ended June 30, 2006 were $439.3 million, compared to consolidated net sales of $433.8 million during the comparable period in 2005. Earnings from continuing operations for the six month period ended June 30, 2006 were $8.1 million or 44 cents per diluted share, compared to a loss of $228 thousand or 1 cent per diluted share in the comparable period of 2005.
Commenting on the results, Mr. Lawrence Sills, Standard Motor Products' Chairman and Chief Executive Officer, said, "While all of our operating divisions showed improvement for the quarter and for the year-to-date, we were most pleased with the improvement in Engine Management gross margin. With the Dana integration behind us, we have been able to focus on this area with a combination of improved pricing, resourcing of purchased items, and additional in-house manufacturing. We achieved close to 25% Engine Management gross profit for the quarter and the six months, well above the 2005 annual rate of 20%."
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 September 1, 2006 to stockholders of record on August 15, 2006.
STANDARD MOTOR PRODUCTS, INC.
Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2006 2005 2006 2005
NET SALES $229,174 $226,512 $439,250 $433,838
COST OF SALES 172,468 177,602 329,313 336,493
GROSS PROFIT 56,706 48,910 109,937 97,345
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES 42,995 43,705 86,783 85,781
INTEGRATION EXPENSES 143 3,878 230 4,402
OPERATING INCOME 13,568 1,327 22,924 7,162
OTHER INCOME (EXPENSE), NET 810 1,194 1,160 979
INTEREST EXPENSE 5,255 4,290 9,708 8,065
EARNINGS FROM CONTINUING
OPERATIONS BEFORE TAXES 9,123 (1,769) 14,376 76
INCOME TAX EXPENSE 3,668 (488) 6,323 304
EARNINGS FROM CONTINUING
OPERATIONS 5,455 (1,281) 8,053 (228)
DISCONTINUED OPERATION,
NET OF TAX (289) (384) (1,053) (791)
NET INCOME $5,166 $(1,665) $7,000 $(1,019)
NET EARNINGS PER COMMON
SHARE:
BASIC EARNINGS FROM
CONTINUING OPERATIONS $0.30 $(0.07) $0.44 $(0.01)
DISCONTINUED OPERATION (0.02) (0.02) (0.06) (0.04)
NET INCOME PER COMMON
SHARE - BASIC $0.28 $(0.09) $0.38 $(0.05)
DILUTED EARNINGS FROM
CONTINUING OPERATIONS $0.30 $(0.07) $0.44 $(0.01)
DISCONTINUED OPERATION (0.02) (0.02) (0.06) (0.04)
NET INCOME PER COMMON
SHARE - DILUTED $0.28 $(0.09) $0.38 $(0.05)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES 18,297,155 19,538,269 18,245,253 19,489,583
WEIGHTED AVERAGE NUMBER OF
COMMON AND DILUTIVE
SHARES 18,327,895 19,538,269 18,260,708 19,489,583
STANDARD MOTOR PRODUCTS
CONDENSED CONSOLIDATING BALANCE SHEETS
(Dollars in thousands)
ASSETS
June 30, December 31,
2006 2005
Cash $11,164 $14,046
Accounts receivable, gross 276,046 185,868
Allowance for doubtful
accounts 10,776 9,574
Accounts receivable, net 265,270 176,294
Inventories 235,091 243,297
Other current assets 24,039 22,053
Total current assets 535,564 455,690
Property, plant and
equipment, net 84,121 85,805
Goodwill and other
intangibles 56,006 67,402
Other assets 37,400 44,147
Total assets $713,091 $653,044
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable $192,820 $149,236
Current portion of long term
debt 542 542
Accounts payable trade 60,296 52,535
Accrued customer returns 27,820 22,346
Restructuring accrual 903 1,286
Other current liabilities 67,902 59,977
Total current liabilities 350,283 285,922
Long-term debt 98,265 98,549
Postretirement & other
liabilities 47,273 45,962
Restructuring accrual 418 11,348
Accrued asbestos liability 24,241 25,556
Total liabilities 520,480 467,337
Total stockholders' equity 192,611 185,707
Total liabilities and
stockholders' equity $713,091 $653,044