☑ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934.
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
|
New York
|
|
11-1362020
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
37-18 Northern Blvd., Long Island City, New York
|
|
11101
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, par value $2.00 per share
|
SMP
|
New York Stock Exchange LLC
|
|
Large Accelerated Filer ☑
|
Accelerated Filer ☐
|
|
Non-Accelerated Filer ☐
|
Smaller reporting company ☐
|
|
Emerging growth company ☐
|
|
Page No.
|
||
Item 1.
|
3 |
|
3
|
||
4
|
||
5
|
||
6
|
||
7
|
||
9
|
||
Item 2. |
30 | |
Item 3.
|
45
|
|
Item 4.
|
46
|
ITEM 1. |
CONSOLIDATED FINANCIAL STATEMENTS
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
(In thousands, except share and per share data)
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Net sales
|
$
|
386,413
|
$
|
381,373
|
$
|
1,067,516
|
$
|
1,063,616
|
||||||||
Cost of sales
|
271,653
|
274,589
|
760,220
|
770,641
|
||||||||||||
Gross profit
|
114,760
|
106,784
|
307,296
|
292,975
|
||||||||||||
Selling, general and administrative expenses
|
79,781
|
73,199
|
223,257
|
204,551
|
||||||||||||
Restructuring and integration expenses
|
177
|
—
|
1,383
|
44
|
||||||||||||
Other income, net
|
4 | 30 | 74 | 43 | ||||||||||||
Operating income
|
34,806
|
33,615
|
82,730
|
88,423
|
||||||||||||
Other non-operating income, net
|
1,732
|
1,513
|
2,759
|
4,889
|
||||||||||||
Interest expense
|
3,621
|
3,656
|
10,766
|
6,282
|
||||||||||||
Earnings from continuing operations before taxes
|
32,917
|
31,472
|
74,723
|
87,030
|
||||||||||||
Provision for income taxes
|
7,995
|
8,280
|
18,656
|
22,407
|
||||||||||||
Earnings from continuing operations
|
24,922
|
23,192
|
56,067
|
64,623
|
||||||||||||
Loss from discontinued operations, net of income taxes
|
(18,200
|
)
|
(14,294
|
)
|
(28,201
|
)
|
(17,076
|
)
|
||||||||
Net earnings
|
6,722
|
8,898
|
27,866
|
47,547
|
||||||||||||
Net earnings attributable to noncontrolling interest
|
63
|
52
|
152
|
129
|
||||||||||||
Net earnings attributable to SMP (a)
|
$
|
6,659
|
$
|
8,846
|
$
|
27,714
|
$
|
47,418
|
||||||||
Net earnings attributable to SMP
|
||||||||||||||||
Earnings from continuing operations
|
$
|
24,859
|
$
|
23,140
|
$
|
55,915
|
$
|
64,494
|
||||||||
Discontinued operations
|
(18,200
|
)
|
(14,294
|
)
|
(28,201
|
)
|
(17,076
|
)
|
||||||||
Total
|
$
|
6,659
|
$
|
8,846
|
$
|
27,714
|
$
|
47,418
|
||||||||
Per share data attributable to SMP
|
||||||||||||||||
Net earnings per common share – Basic:
|
||||||||||||||||
Earnings from continuing operations
|
$
|
1.14
|
$
|
1.08
|
$
|
2.58
|
$
|
2.97
|
||||||||
Discontinued operations
|
(0.83
|
)
|
(0.67
|
)
|
(1.30
|
)
|
(0.79
|
)
|
||||||||
Net earnings per common share – Basic
|
$
|
0.31
|
$
|
0.41
|
$
|
1.28
|
$
|
2.18
|
||||||||
Net earnings per common share – Diluted:
|
||||||||||||||||
Earnings from continuing operations
|
$
|
1.12
|
$
|
1.06
|
$
|
2.52
|
$
|
2.91
|
||||||||
Discontinued operations
|
(0.82
|
)
|
(0.66
|
)
|
(1.27
|
)
|
(0.77
|
)
|
||||||||
Net earnings per common share – Diluted
|
$
|
0.30
|
$
|
0.40
|
$
|
1.25
|
$
|
2.14
|
||||||||
Dividend declared per share
|
$
|
0.29
|
$
|
0.27
|
$
|
0.87
|
$
|
0.81
|
||||||||
Average number of common shares
|
21,727,119
|
21,427,393
|
21,675,699
|
21,719,281
|
||||||||||||
Average number of common shares and dilutive common shares
|
22,253,723
|
21,847,602
|
22,198,131
|
22,153,348
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
(In thousands)
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
||||||||||||||||
Net earnings
|
$
|
6,722
|
$
|
8,898
|
$
|
27,866
|
$
|
47,547
|
||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||
Foreign currency translation adjustments
|
(3,950
|
)
|
(8,279
|
)
|
36
|
(15,445
|
)
|
|||||||||
Derivative instruments
|
1,708 | 4,199 | 2,162 | 4,304 | ||||||||||||
Pension and postretirement plans
|
(3
|
)
|
(2
|
)
|
(10
|
)
|
(11
|
)
|
||||||||
Total other comprehensive income, net of tax
|
(2,245
|
)
|
(4,082
|
)
|
2,188
|
(11,152
|
)
|
|||||||||
Total Comprehensive income
|
4,477
|
4,816
|
30,054
|
36,395
|
||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest, net of tax:
|
||||||||||||||||
Net earnings
|
63
|
52
|
152
|
129
|
||||||||||||
Foreign currency translation adjustments
|
47
|
(115
|
)
|
(63
|
)
|
(176
|
)
|
|||||||||
Comprehensive income (loss) attributable to noncontrolling interest, net of tax
|
110
|
(63
|
)
|
89
|
(47
|
)
|
||||||||||
Comprehensive income attributable to SMP
|
$
|
4,367
|
$
|
4,879
|
$
|
29,965
|
$
|
36,442
|
(In thousands, except share and per share data)
|
September 30,
2023
|
December 31,
2022
|
||||||
|
(Unaudited)
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
28,485
|
$
|
21,150
|
||||
Accounts receivable, less allowances for discounts and expected credit losses of $5,872 and $5,375 for 2023 and 2022, respectively
|
208,053
|
167,638
|
||||||
Inventories
|
479,788
|
528,715
|
||||||
Unreturned customer inventories
|
21,847
|
19,695
|
||||||
Prepaid expenses and other current assets
|
24,240
|
25,241
|
||||||
Total current assets
|
762,413
|
762,439
|
||||||
|
||||||||
Property, plant and equipment, net of accumulated depreciation of $252,614 and $239,176 for 2023 and 2022, respectively
|
113,012
|
107,148
|
||||||
Operating lease right-of-use assets
|
99,067
|
49,838
|
||||||
Goodwill
|
134,382
|
132,087
|
||||||
Other intangibles, net
|
94,324
|
100,504
|
||||||
Deferred income taxes
|
36,455
|
33,658
|
||||||
Investments in unconsolidated affiliates
|
22,909
|
41,745
|
||||||
Other assets
|
37,368
|
27,510
|
||||||
Total assets
|
$
|
1,299,930
|
$
|
1,254,929
|
||||
|
||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Current portion of revolving credit facility
|
$
|
47,400
|
$
|
50,000
|
||||
Current portion of term loan and other debt
|
5,026
|
5,031
|
||||||
Accounts payable
|
103,237
|
89,247
|
||||||
Sundry payables and accrued expenses
|
71,298
|
49,990
|
||||||
Accrued customer returns
|
48,556
|
37,169
|
||||||
Accrued core liability
|
19,778
|
22,952
|
||||||
Accrued rebates
|
46,329
|
37,381
|
||||||
Payroll and commissions
|
31,718
|
31,361
|
||||||
Total current liabilities
|
373,342
|
323,131
|
||||||
Long-term debt
|
95,170
|
184,589
|
||||||
Noncurrent operating lease liabilities
|
88,186
|
40,709
|
||||||
Other accrued liabilities
|
23,797
|
22,157
|
||||||
Accrued asbestos liabilities
|
73,962
|
63,305
|
||||||
Total liabilities
|
654,457
|
633,891
|
||||||
Commitments and contingencies
|
|
|
||||||
Stockholders’ equity:
|
||||||||
Common stock – par value $2.00
per share:
|
||||||||
Authorized – 30,000,000
shares; issued 23,936,036 shares
|
47,872
|
47,872
|
||||||
Capital in excess of par value
|
108,058
|
105,615
|
||||||
Retained earnings
|
573,110
|
564,242
|
||||||
Accumulated other comprehensive income
|
(10,219
|
)
|
(12,470
|
)
|
||||
Treasury stock – at cost (2,208,069
shares and 2,350,377 shares in 2023
and 2022, respectively)
|
(89,473
|
)
|
(95,239
|
)
|
||||
Total SMP stockholders’ equity
|
629,348
|
610,020
|
||||||
Noncontrolling interest
|
16,125
|
11,018
|
||||||
Total stockholders’ equity
|
645,473
|
621,038
|
||||||
Total liabilities and stockholders’ equity
|
$
|
1,299,930
|
$
|
1,254,929
|
(In thousands)
|
Nine Months Ended
September 30,
|
|||||||
|
2023
|
2022
|
||||||
|
(Unaudited)
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net earnings
|
$
|
27,866
|
$
|
47,547
|
||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
|
||||||||
Depreciation and amortization
|
21,461
|
20,895
|
||||||
Amortization of deferred financing cost
|
370
|
294
|
||||||
Increase (decrease) to allowance for expected credit losses
|
333
|
(561
|
)
|
|||||
Increase to inventory reserves
|
2,010
|
4,354
|
||||||
Equity income from joint ventures
|
(2,181
|
)
|
(3,553
|
)
|
||||
Employee stock ownership plan allocation
|
2,225
|
1,722
|
||||||
Stock-based compensation
|
5,243
|
6,327
|
||||||
(Increase) decrease in deferred income taxes
|
(3,299
|
)
|
245
|
|||||
Loss on discontinued operations, net of tax
|
28,201
|
17,076
|
||||||
Change in assets and liabilities:
|
||||||||
(Increase) in accounts receivable
|
(38,850
|
)
|
(51,887
|
)
|
||||
(Increase) decrease in inventories
|
54,286
|
(75,300
|
)
|
|||||
(Increase) decrease in prepaid expenses and other current assets
|
2,916
|
(6,270
|
)
|
|||||
Increase (decrease) in accounts payable
|
15,852
|
(31,844
|
)
|
|||||
Increase in sundry payables and accrued expenses
|
12,345
|
3,807
|
||||||
Net change in other assets and liabilities
|
4,115
|
(8,327
|
)
|
|||||
Net cash provided by (used in) operating activities
|
132,893
|
(75,475
|
)
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Acquisition of and investment in businesses |
(3,954 | ) | — | |||||
Cash acquired in step acquisition |
6,779 | — | ||||||
Capital expenditures
|
(17,977
|
)
|
(19,499
|
)
|
||||
Other investing activities
|
95
|
12
|
||||||
Net cash used in investing activities
|
(15,057
|
)
|
(19,487
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Borrowings under the term loan
|
— |
100,000 |
||||||
Repayments of term loan
|
(3,750 | ) | (1,250 | ) | ||||
Net borrowings (repayments) under revolving credit facilities
|
(88,350
|
)
|
44,452
|
|||||
Net repayments of other debt and lease obligations
|
(49
|
)
|
(1,745
|
)
|
||||
Purchase of treasury stock
|
—
|
(29,656
|
)
|
|||||
Payments of debt issuance costs
|
— |
(2,128 | ) | |||||
Increase (decrease) in overdraft balances
|
253
|
(54
|
)
|
|||||
Dividends paid
|
(18,846
|
)
|
(17,602
|
)
|
||||
Dividends paid to noncontrolling interest
|
(255 | ) | — |
|||||
Net cash provided by (used in) financing activities
|
(110,997
|
)
|
92,017
|
|||||
Effect of exchange rate changes on cash
|
496
|
(1,285
|
)
|
|||||
Net increase (decrease) in cash and cash equivalents
|
7,335
|
(4,230
|
)
|
|||||
CASH AND CASH EQUIVALENTS at beginning of period
|
21,150
|
21,755
|
||||||
CASH AND CASH EQUIVALENTS at end of period
|
$
|
28,485
|
$
|
17,525
|
||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$
|
11,749
|
$
|
5,828
|
||||
Income taxes
|
$
|
11,352
|
$
|
21,837
|
(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 June 30, 2023
|
$
|
47,872
|
$
|
106,529
|
$
|
572,753
|
$
|
(7,927
|
)
|
$
|
(89,554
|
)
|
$
|
629,673
|
$
|
10,742
|
$
|
640,415
|
||||||||||||||
Noncontrolling interest in step acquisition
|
— | — | — | — | — | — | 5,273 | 5,273 | ||||||||||||||||||||||||
Net earnings
|
—
|
—
|
6,659
|
—
|
—
|
6,659
|
63
|
6,722
|
||||||||||||||||||||||||
Other comprehensive income, net of tax
|
—
|
—
|
—
|
(2,292
|
)
|
—
|
(2,292
|
)
|
47
|
(2,245
|
)
|
|||||||||||||||||||||
Cash dividends paid
|
—
|
—
|
(6,302
|
)
|
—
|
—
|
(6,302
|
)
|
—
|
(6,302
|
)
|
|||||||||||||||||||||
Stock-based compensation
|
—
|
1,529
|
—
|
—
|
81
|
1,610
|
—
|
1,610
|
||||||||||||||||||||||||
Balance at September 30, 2023
|
$
|
47,872
|
$
|
108,058
|
$
|
573,110
|
$
|
(10,219
|
)
|
$
|
(89,473
|
)
|
$
|
629,348
|
$
|
16,125
|
$
|
645,473
|
(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 June 30, 2022
|
$
|
47,872
|
$
|
109,117
|
$
|
559,069
|
$
|
(15,178
|
)
|
$
|
(99,294
|
)
|
$
|
601,586
|
$
|
11,063
|
$
|
612,649
|
||||||||||||||
Net earnings
|
—
|
—
|
8,846
|
—
|
—
|
8,846
|
52
|
8,898
|
||||||||||||||||||||||||
Other comprehensive income, net of tax
|
—
|
—
|
—
|
(3,967
|
)
|
—
|
(3,967
|
)
|
(115
|
)
|
(4,082
|
)
|
||||||||||||||||||||
Cash dividends paid | — | — | (5,780 | ) | — | — | (5,780 | ) | — | (5,780 | ) | |||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | (3,160 | ) | (3,160 | ) | — | (3,160 | ) | |||||||||||||||||||||
Stock-based compensation
|
—
|
(4,706
|
)
|
—
|
—
|
6,568
|
1,862
|
—
|
1,862
|
|||||||||||||||||||||||
Balance at September 30, 2022
|
$
|
47,872
|
$
|
104,411
|
$
|
562,135
|
$
|
(19,145
|
)
|
$
|
(95,886
|
)
|
$
|
599,387
|
$
|
11,000
|
$
|
610,387
|
(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
|
$
|
47,872
|
$
|
105,615
|
$
|
564,242
|
$
|
(12,470
|
)
|
$
|
(95,239
|
)
|
$
|
610,020
|
$
|
11,018
|
$
|
621,038
|
||||||||||||||
Noncontrolling interest in step acquisition
|
— | — | — | — | — | — | 5,273 | 5,273 | ||||||||||||||||||||||||
Net earnings
|
—
|
—
|
27,714
|
—
|
—
|
27,714
|
152
|
27,866
|
||||||||||||||||||||||||
Other comprehensive income, net of tax
|
—
|
—
|
—
|
2,251
|
—
|
2,251
|
(63
|
)
|
2,188
|
|||||||||||||||||||||||
Cash dividends paid
|
—
|
—
|
(18,846
|
)
|
—
|
—
|
(18,846
|
)
|
— |
(18,846
|
)
|
|||||||||||||||||||||
Dividends paid to noncontrolling interest
|
— | — | — | — | — | — | (255 | ) | (255 | ) | ||||||||||||||||||||||
Stock-based compensation
|
—
|
2,427
|
—
|
—
|
2,816
|
5,243
|
—
|
5,243
|
||||||||||||||||||||||||
Employee Stock Ownership Plan
|
—
|
16
|
—
|
—
|
2,950
|
2,966
|
—
|
2,966
|
||||||||||||||||||||||||
Balance at September 30, 2023
|
$
|
47,872
|
$
|
108,058
|
$
|
573,110
|
$
|
(10,219
|
)
|
$
|
(89,473
|
)
|
$
|
629,348
|
$
|
16,125
|
$
|
645,473
|
(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, 2021
|
$
|
47,872
|
$
|
105,377
|
$
|
532,319
|
$
|
(8,169
|
)
|
$
|
(75,819
|
)
|
$
|
601,580
|
$
|
11,047
|
$
|
612,627
|
||||||||||||||
Net earnings
|
—
|
—
|
47,418
|
—
|
—
|
47,418
|
129
|
47,547
|
||||||||||||||||||||||||
Other comprehensive income, net of tax
|
—
|
—
|
—
|
(10,976
|
)
|
—
|
(10,976
|
)
|
(176
|
)
|
(11,152
|
)
|
||||||||||||||||||||
Cash dividends paid
|
—
|
—
|
(17,602
|
)
|
—
|
—
|
(17,602
|
)
|
—
|
(17,602
|
)
|
|||||||||||||||||||||
Purchase of treasury stock
|
—
|
—
|
—
|
—
|
(29,656
|
)
|
(29,656
|
)
|
—
|
(29,656
|
)
|
|||||||||||||||||||||
Stock-based compensation
|
—
|
(1,335
|
)
|
—
|
—
|
7,662
|
6,327
|
—
|
6,327
|
|||||||||||||||||||||||
Employee Stock Ownership Plan
|
—
|
369
|
—
|
—
|
1,927
|
2,296
|
—
|
2,296
|
||||||||||||||||||||||||
Balance at September 30, 2022
|
$
|
47,872
|
$
|
104,411
|
$
|
562,135
|
$
|
(19,145
|
)
|
$
|
(95,886
|
)
|
$
|
599,387
|
$
|
11,000
|
$
|
610,387
|
Total purchase consideration (1)
|
$
|
21,725
|
||||||
Assets acquired and liabilities assumed:
|
||||||||
Cash and cash equivalents
|
$
|
6,779
|
||||||
Receivables
|
5,912
|
|||||||
Inventory
|
5,945
|
|||||||
Other current assets
|
528
|
|||||||
Property, plant and equipment, net
|
2,924
|
|||||||
Operating lease right-of-use assets
|
4,372
|
|||||||
Intangible assets (2)
|
532
|
|||||||
Goodwill
|
2,208
|
|||||||
Long term investments and other assets
|
7,257
|
|||||||
Current liabilities
|
(6,004
|
)
|
||||||
Noncurrent operating lease liabilities
|
(3,455
|
)
|
||||||
Subtotal
|
26,998
|
|||||||
Fair value of acquired noncontrolling interest
|
(5,273
|
)
|
||||||
Total purchase consideration allocated to net assets acquired
|
$
|
21,725
|
|
(1) | Total purchase consideration is the sum of the fair value of the previously held equity investment interest in Gwo Yng of $17.7 million and the cash paid of $4 million for the acquisition of the additional 15% equity ownership interest. |
|
(2) | Intangible assets consists of customer relationships of $0.4 million and capitalized software of $0.1 million. |
Purchase price
|
$
|
3,176
|
||||||
Assets acquired and liabilities assumed:
|
||||||||
Receivables
|
$
|
790
|
||||||
Inventory
|
829
|
|||||||
Other current assets (1)
|
1,003
|
|||||||
Property, plant and equipment, net
|
63
|
|||||||
Operating lease right-of-use assets
|
401
|
|||||||
Intangible assets
|
2,395
|
|||||||
Goodwill
|
766
|
|||||||
Current liabilities
|
(1,977
|
)
|
||||||
Noncurrent operating lease liabilities
|
(328
|
)
|
||||||
Deferred income taxes
|
(766
|
)
|
||||||
Net assets acquired
|
$
|
3,176
|
|
(1) |
The other current assets balance includes $1 million of cash acquired.
|
|
Workforce
Reduction
|
Other Exit
Costs
|
Total
|
|||||||||
Exit activity liability at December 31, 2022
|
$
|
1,521
|
$
|
—
|
$
|
1,521
|
||||||
Restructuring and integration costs: |
||||||||||||
Amounts provided for during 2023 (1)
|
1,056 | 327 | 1,383 | |||||||||
Cash payments
|
(1,285
|
)
|
(327
|
)
|
(1,612
|
)
|
||||||
Foreign currency exchange rate changes
|
(5 | ) | — | (5 | ) | |||||||
Exit activity liability at September 30, 2023
|
$
|
1,287
|
$
|
—
|
$
|
1,287
|
(1)
|
Restructuring
and integration expenses incurred during the nine months ended September 30, 2023 consist of $0.5 million in our Vehicle
Control segment, $0.8 million in our Temperature Control segment and $0.1 million in our Engineered Solutions segment.
|
|
September 30,
2023
|
December 31,
2022
|
||||||
|
(In thousands)
|
|||||||
Finished goods
|
$
|
283,002
|
$
|
324,362
|
||||
Work in process
|
15,274
|
14,099
|
||||||
Raw materials
|
181,512
|
190,254
|
||||||
Subtotal
|
479,788
|
528,715
|
||||||
Unreturned customer inventories
|
21,847
|
19,695
|
||||||
Total inventories
|
$
|
501,635
|
$
|
548,410
|
|
September 30,
2023
|
December 31,
2022
|
||||||
|
(In thousands)
|
|||||||
Customer relationships
|
$
|
159,805
|
$
|
158,717
|
||||
Patents, developed technology and intellectual property
|
14,123
|
14,123
|
||||||
Trademarks and trade names
|
8,880
|
8,880
|
||||||
Non-compete agreements
|
3,291
|
3,282
|
||||||
Supply agreements
|
800
|
800
|
||||||
Leaseholds
|
160
|
160
|
||||||
Total acquired intangible assets
|
187,059
|
185,962
|
||||||
Less accumulated amortization (1)
|
(94,016
|
)
|
(86,945
|
)
|
||||
Net acquired intangible assets
|
$
|
93,043
|
$
|
99,017
|
|
(1) |
Applies to all
intangible assets, except for trademarks and trade names totaling $2.6 million, which have indefinite useful lives and, as
such, are not being amortized.
|
Balance Sheet Information
|
September 30,
2023
|
December 31,
2022
|
||||||
Assets
|
||||||||
Operating lease right-of-use assets
|
$
|
99,067
|
$
|
49,838
|
||||
|
||||||||
Liabilities
|
||||||||
Sundry payables and accrued expenses
|
$
|
15,819
|
$
|
10,763
|
||||
Noncurrent operating lease liabilities
|
88,186
|
40,709
|
||||||
Total operating lease liabilities
|
$
|
104,005
|
$
|
51,472
|
||||
|
||||||||
Weighted Average Remaining Lease Term
|
||||||||
Operating leases
|
8.5 Years
|
7 Years
|
||||||
|
||||||||
Weighted Average Discount Rate
|
||||||||
Operating leases
|
4.7
|
%
|
3.7
|
%
|
Expense and Cash Flow Information |
Three Months Ended
September 30,
|
|||||||
|
2023
|
2022
|
||||||
Lease Expense
|
||||||||
Operating lease expense (a)
|
$
|
4,762
|
$
|
2,817
|
Nine Months Ended
September 30,
|
||||||||
2023
|
2022
|
|||||||
Lease Expense
|
||||||||
Operating lease expense (a)
|
$
|
11,647
|
$
|
8,358
|
||||
Supplemental Cash Flow Information
|
||||||||
Cash paid for the amounts included in the measurement of lease liabilities:
|
||||||||
Operating cash flows from operating leases
|
$
|
8,212
|
$
|
8,188
|
||||
Right-of-use assets obtained in exchange for new lease obligations:
|
||||||||
Operating leases (b)
|
$
|
61,929
|
$
|
26,206
|
(a) |
Excludes expenses of approximately $1.3 million and $2.6 million for
the three and nine months ended September 30, 2023, respectively, and approximately $0.8 million and $1.9 million for the comparable periods in 2022, respectively, related to non-lease components such as maintenance, property taxes, etc., and
operating lease expense for leases with an initial term of 12 months or less, which is not material.
|
|
(b)
|
Includes $27.8 million of
right-of-use assets related to the lease modification and extension for our distribution center and office in Lewisville, Texas; $26.1
million of right-of-use assets related to the new distribution center in Shawnee, Kansas; and $4.4 million of right-of-use assets
obtained in Gwo Yng step-acquisition during the nine months ended September 30, 2023.
|
2023
|
$
|
3,697
|
||
2024
|
16,850
|
|||
2025
|
15,257
|
|||
2026
|
14,021
|
|||
2027
|
12,982
|
|||
Thereafter
|
66,854
|
|||
Total lease payments
|
$
|
129,661
|
||
Less: Interest
|
(25,656
|
)
|
||
Present value of lease liabilities
|
$
|
104,005
|
|
September 30,
2023
|
December 31,
2022
|
||||||
|
(In thousands)
|
|||||||
Credit facility – term loan due 2027 |
$ |
93,750 | $ |
97,500 | ||||
Credit facility – revolver due 2027 |
53,650 | 142,000 | ||||||
Other
|
196
|
120
|
||||||
Total debt
|
$
|
147,596
|
$
|
239,620
|
||||
|
||||||||
Current maturities of debt
|
$
|
52,426
|
$
|
55,031
|
||||
Long-term debt
|
95,170
|
184,589
|
||||||
Total debt
|
$
|
147,596
|
$
|
239,620
|
Revolving
Credit Facility
|
Term Loan
Facility
|
Polish
Overdraft
Facility and
Other Debt
|
Total
|
|||||||||||||
Remainder of 2023
|
$
|
—
|
$
|
1,250
|
$
|
7
|
$
|
1,257
|
||||||||
2024
|
—
|
5,000
|
25
|
5,025
|
||||||||||||
2025
|
—
|
5,000
|
28
|
5,028
|
||||||||||||
2026
|
—
|
7,500
|
44
|
7,544
|
||||||||||||
2027
|
53,650
|
75,000
|
92
|
128,742
|
||||||||||||
Total
|
$
|
53,650
|
$
|
93,750
|
$
|
196
|
$
|
147,596
|
||||||||
Less: current maturities
|
(47,400
|
)
|
(5,000
|
)
|
(26
|
)
|
(52,426
|
)
|
||||||||
Long-term debt
|
$
|
6,250
|
$
|
88,750
|
$
|
170
|
$
|
95,170
|
Three Months Ended September 30,
2023
|
||||||||||||||||
Foreign
Currency
Translation
|
Unrecognized
Postretirement
Benefit Costs
(Credit)
|
Unrealized
derivative
gains
(losses)
|
Total
|
|||||||||||||
Balance at June 30, 2023
attributable to SMP
|
$
|
(12,234
|
)
|
$
|
30
|
$
|
4,277
|
$
|
(7,927
|
)
|
||||||
Other comprehensive income before reclassifications
|
(3,997
|
)
|
—
|
2,194
|
(1) |
(1,803
|
)
|
|||||||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
(3
|
)
|
(486
|
)
|
(489
|
)
|
|||||||||
Other comprehensive income, net
|
(3,997
|
)
|
(3
|
)
|
1,708
|
(2,292
|
)
|
|||||||||
Balance at September 30,
2023 attributable to SMP
|
$
|
(16,231
|
)
|
$
|
27
|
$
|
5,985
|
$
|
(10,219
|
)
|
Nine Months Ended September 30, 2023 | ||||||||||||||||
Foreign
Currency
Translation
|
Unrecognized
Postretirement
Benefit Costs
(Credit)
|
Unrealized
derivative
gains
(losses)
|
Total | |||||||||||||
Balance at December 31, 2022
attributable to SMP
|
$
|
(16,330
|
)
|
$
|
37
|
$
|
3,823
|
$
|
(12,470
|
)
|
||||||
Other comprehensive income before reclassifications
|
99
|
—
|
3,417
|
(1) |
3,516
|
|||||||||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
(10
|
)
|
(1,255
|
)
|
(1,265
|
)
|
|||||||||
Other comprehensive income, net
|
99
|
(10
|
)
|
2,162
|
2,251
|
|||||||||||
Balance at September 30,
2023 attributable to SMP
|
$
|
(16,231
|
)
|
$
|
27
|
$
|
5,985
|
$
|
(10,219
|
)
|
|
(1)
|
Consists of the unrecognized gain relating to the
change in fair value of the cash flow interest rate hedge of $2.3 million ($1.7 million, net of tax) and $3 million ($2.2 million, net of tax) in the three months and nine months ended September 30, 2023, respectively, plus cash receipts of $0.6 million ($0.5 million,
net of tax) and $1.7 million ($1.2
million, net of tax) in the three months and nine months ended September 30, 2023, respectively.
|
|
Three Months
Ended
|
Nine Months
Ended
|
||||||
Details About Accumulated Other Comprehensive Income Components
|
September 30, 2023
|
September 30, 2023
|
||||||
Derivative cash flow hedge:
|
||||||||
Unrecognized gain (loss) (1)
|
$
|
(657
|
)
|
$ | (1,696 | ) | ||
Postretirement Benefit Plans:
|
||||||||
Unrecognized gain (loss) (2)
|
(5
|
)
|
(16 | ) | ||||
Total before income tax
|
(662
|
)
|
(1,712 | ) | ||||
Income tax expense
|
(173
|
)
|
(447 | ) | ||||
Total reclassifications attributable to SMP
|
$
|
(489
|
)
|
$ | (1,265 | ) |
(1)
|
Unrecognized accumulated other
comprehensive income (loss) related to the cash flow interest rate hedge is reclassified to earnings and reported as part of interest expense in our consolidated statements of operations when the interest payments on the underlying
borrowings are recognized.
|
(2)
|
Unrecognized accumulated other comprehensive income (loss) related to our post retirement plans is reclassified to earnings and included in the computation of net periodic postretirement benefit costs, which are
included in other non-operating income, net in our consolidated statements of operations (see Note 12, “Employee Benefits,” for additional information).
|
|
Shares
|
Weighted Average
Grant Date Fair
Value Per Share
|
||||||
Balance at December 31, 2022
|
880,829
|
$
|
31.79
|
|||||
Granted
|
6,000
|
31.63
|
||||||
Vested
|
(58,978
|
)
|
32.49
|
|||||
Forfeited
|
(5,200
|
)
|
36.63
|
|||||
Balance at September 30, 2023
|
822,651
|
$
|
31.74
|
|
September 30, 2023
|
December 31, 2022
|
|||||||||||||||
|
Fair Value
Hierarchy
|
Fair Value | Carrying Amount | Fair Value | Carrying Amount | ||||||||||||
Cash and cash equivalents (a)
|
LEVEL 1/2
|
$
|
28,485
|
$
|
28,485
|
$
|
21,150
|
$
|
21,150
|
||||||||
Deferred compensation
|
LEVEL 1
|
22,088
|
22,088
|
20,190
|
20,190
|
||||||||||||
Short term borrowings
|
LEVEL 1
|
52,426
|
52,426
|
55,031
|
55,031
|
||||||||||||
Long-term debt
|
LEVEL 1
|
95,170
|
95,170
|
184,589
|
184,589
|
||||||||||||
Cash flow interest rate swap
|
LEVEL 2
|
8,102
|
8,102
|
5,174
|
5,174
|
||||||||||||
Long-term investments | LEVEL 2 |
7,048 | 7,048 | — | — |
(a)
|
As of September 30, 2023
cash and cash equivalents consist of cash of $25.5 million and cash equivalents of $3 million, which are classified as Level 1 and Level 2, respectively, under the fair value hierarchy. Cash and cash equivalents at
December 31, 2022 consists solely of cash of $21.2 million, which is classified as Level 1 under the fair value hierarchy.
|
Three Months Ended
September 30,
|
Nine Months
Ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Net
Earnings Attributable to SMP -
|
||||||||||||||||
Earnings from continuing operations
|
$
|
24,859
|
$
|
23,140
|
$
|
55,915
|
$
|
64,494
|
||||||||
Loss from discontinued operations
|
(18,200
|
)
|
(14,294
|
)
|
(28,201
|
)
|
(17,076
|
)
|
||||||||
Net earnings attributable to SMP
|
$
|
6,659
|
$
|
8,846
|
$
|
27,714
|
$
|
47,418
|
||||||||
|
||||||||||||||||
Basic Net Earnings Per Common Share Attributable to SMP -
|
||||||||||||||||
Earnings from continuing operations per common share
|
$
|
1.14
|
$
|
1.08
|
$
|
2.58
|
$
|
2.97
|
||||||||
Loss from discontinued operations per common share
|
(0.83
|
)
|
(0.67
|
)
|
(1.30
|
)
|
(0.79
|
)
|
||||||||
Net earnings per common share attributable to SMP
|
$
|
0.31
|
$
|
0.41
|
$
|
1.28
|
$
|
2.18
|
||||||||
|
||||||||||||||||
Weighted average common shares outstanding
|
21,727
|
21,427
|
21,676
|
21,719
|
||||||||||||
|
||||||||||||||||
Diluted Net Earnings Per Common Share Attributable to SMP -
|
||||||||||||||||
Earnings from continuing operations per common share
|
$
|
1.12
|
$
|
1.06
|
$
|
2.52
|
$
|
2.91
|
||||||||
Loss from discontinued operations per common share
|
(0.82
|
)
|
(0.66
|
)
|
(1.27
|
)
|
(0.77
|
)
|
||||||||
Net earnings per common share attributable to SMP
|
$
|
0.30
|
$
|
0.40
|
$
|
1.25
|
$
|
2.14
|
||||||||
|
||||||||||||||||
Weighted average common shares outstanding
|
21,727
|
21,427
|
21,676
|
21,719
|
||||||||||||
Plus incremental shares from assumed conversions:
|
||||||||||||||||
Dilutive effect of restricted stock and performance-based stock
|
527
|
421
|
522
|
434
|
||||||||||||
Weighted average common shares outstanding – Diluted
|
22,254
|
21,848
|
22,198
|
22,153
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Restricted and performance-based shares
|
242
|
299
|
273
|
281
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
September 30, |
September 30,
|
|||||||||||||||
|
2023
|
2022
|
2023 | 2022 | ||||||||||||
Net Sales (a)
|
||||||||||||||||
Vehicle Control
|
$
|
190,937
|
$
|
197,699
|
$
|
559,303
|
$
|
560,734
|
||||||||
Temperature Control
|
123,643 | 117,421 | 293,123 | 296,116 | ||||||||||||
Engineered Solutions
|
71,833
|
66,253
|
215,090
|
206,766
|
||||||||||||
Other
|
—
|
—
|
—
|
—
|
||||||||||||
Consolidated
|
$
|
386,413
|
$
|
381,373
|
$
|
1,067,516
|
$
|
1,063,616
|
||||||||
|
||||||||||||||||
Operating Income
|
||||||||||||||||
Vehicle Control
|
$
|
18,071
|
$
|
21,151
|
$
|
54,719
|
$
|
57,554
|
||||||||
Temperature Control
|
13,054 | 13,389 | 20,938 | 28,074 | ||||||||||||
Engineered Solutions
|
7,254
|
3,302
|
19,064
|
14,699
|
||||||||||||
Other
|
(3,573
|
)
|
(4,227
|
)
|
(11,991
|
)
|
(11,904
|
)
|
||||||||
Consolidated
|
$
|
34,806
|
$
|
33,615
|
$
|
82,730
|
$
|
88,423
|
(b) |
There are no intersegment sales among our Vehicle Control, Temperature
Control and Engineered Solutions operating segments.
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Vehicle Control
|
||||||||||||||||
Engine Management (Ignition, Emissions and Fuel Delivery)
|
$
|
113,188
|
$
|
117,750
|
$
|
342,860
|
$
|
338,480
|
||||||||
Electrical and Safety
|
62,049
|
63,867
|
166,720
|
173,178
|
||||||||||||
Wire Sets and Other
|
15,700
|
16,082
|
49,723
|
49,076
|
||||||||||||
Total Vehicle Control
|
190,937
|
197,699
|
559,303
|
560,734
|
||||||||||||
Temperature Control
|
|
|||||||||||||||
AC System Components
|
96,794
|
90,341
|
216,995
|
219,323
|
||||||||||||
Other Thermal Components
|
26,849
|
27,080
|
76,128
|
76,793
|
||||||||||||
Total Temperature Control
|
123,643
|
117,421
|
293,123
|
296,116
|
||||||||||||
Engineered Solutions
|
|
|||||||||||||||
Commercial Vehicle
|
16,253
|
19,299
|
62,852
|
60,253
|
||||||||||||
Construction/Agriculture
|
13,643
|
10,971
|
34,541
|
33,177
|
||||||||||||
Light Vehicle
|
24,667
|
21,409
|
71,181
|
70,523
|
||||||||||||
All Other
|
17,270
|
14,574
|
46,516
|
42,813
|
||||||||||||
Total Engineered Solutions
|
71,833
|
66,253
|
215,090
|
206,766
|
||||||||||||
Other |
— | — | — | — | ||||||||||||
Total
|
$
|
386,413
|
$
|
381,373
|
$
|
1,067,516
|
$
|
1,063,616
|
Three months ended September 30, 2023
|
Vehicle
Control
|
Temperature
Control
|
Engineered
Solutions
|
Other
|
Total
|
|||||||||||||||
Geographic Area:
|
||||||||||||||||||||
United States
|
$
|
171,188
|
$
|
116,684
|
$
|
41,835
|
$
|
—
|
$
|
329,707
|
||||||||||
Canada
|
9,440
|
6,501
|
8,586
|
—
|
24,527
|
|||||||||||||||
Europe
|
174
|
—
|
14,971
|
—
|
15,145
|
|||||||||||||||
Mexico
|
8,968
|
29
|
1,311
|
—
|
10,308
|
|||||||||||||||
Asia
|
132
|
367
|
4,416
|
—
|
4,915
|
|||||||||||||||
Other foreign
|
1,035
|
62
|
714
|
—
|
1,811
|
|||||||||||||||
Total
|
$
|
190,937
|
$
|
123,643
|
$
|
71,833
|
$
|
—
|
$
|
386,413
|
Three months ended September 30, 2022
|
Vehicle
Control
|
Temperature
Control
|
Engineered
Solutions
|
Other
|
Total
|
|||||||||||||||
Geographic Area:
|
||||||||||||||||||||
United States
|
$
|
180,323
|
$
|
112,387
|
$
|
47,628
|
$
|
—
|
$
|
340,338
|
||||||||||
Canada
|
10,342
|
4,763
|
5,105
|
—
|
20,210
|
|||||||||||||||
Europe
|
94
|
9
|
9,304
|
—
|
9,407
|
|||||||||||||||
Mexico
|
6,154
|
114
|
1,109
|
—
|
7,377
|
|||||||||||||||
Asia
|
56
|
—
|
2,432
|
—
|
2,488
|
|||||||||||||||
Other foreign
|
730
|
148
|
675
|
—
|
1,553
|
|||||||||||||||
Total
|
$
|
197,699
|
$
|
117,421
|
$
|
66,253
|
$
|
—
|
$
|
381,373
|
Nine months ended September 30, 2023
|
Vehicle
Control
|
Temperature
Control
|
Engineered
Solutions
|
Other
|
Total
|
|||||||||||||||
Geographic Area:
|
||||||||||||||||||||
United States
|
$
|
502,798
|
$
|
278,354
|
$
|
130,606
|
$
|
—
|
$
|
911,758
|
||||||||||
Canada
|
26,604
|
14,182
|
19,950
|
—
|
60,736
|
|||||||||||||||
Europe
|
620
|
—
|
44,969
|
—
|
45,589
|
|||||||||||||||
Mexico
|
25,734
|
47
|
5,117
|
—
|
30,898
|
|||||||||||||||
Asia
|
282
|
387
|
12,743
|
—
|
13,412
|
|||||||||||||||
Other foreign
|
3,265
|
153
|
1,705
|
—
|
5,123
|
|||||||||||||||
Total
|
$
|
559,303
|
$
|
293,123
|
$
|
215,090
|
$
|
—
|
$
|
1,067,516
|
Nine months ended September 30, 2022
|
Vehicle
Control
|
Temperature
Control
|
Engineered
Solutions
|
Other
|
Total
|
|||||||||||||||
Geographic Area:
|
||||||||||||||||||||
United States
|
$
|
512,477
|
$
|
282,903
|
$
|
144,828
|
$
|
—
|
$
|
940,208
|
||||||||||
Canada
|
26,255
|
12,351
|
12,550
|
—
|
51,156
|
|||||||||||||||
Europe
|
462
|
44
|
30,885
|
—
|
31,391
|
|||||||||||||||
Mexico
|
18,237
|
303
|
3,399
|
—
|
21,939
|
|||||||||||||||
Asia
|
214
|
43
|
13,398
|
—
|
13,655
|
|||||||||||||||
Other foreign
|
3,089
|
472
|
1,706
|
—
|
5,267
|
|||||||||||||||
Total
|
$
|
560,734
|
$
|
296,116
|
$
|
206,766
|
$
|
—
|
$
|
1,063,616
|
Three Months Ended |
Nine
Months Ended |
|||||||||||||||
|
September 30,
|
September 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Balance, beginning of period
|
$
|
23,586
|
$
|
23,766
|
$
|
19,667
|
$
|
17,463
|
||||||||
Liabilities accrued for current year sales
|
36,844
|
35,450
|
92,684
|
88,371
|
||||||||||||
Settlements of warranty claims
|
(36,905
|
)
|
(29,235
|
)
|
(88,826
|
)
|
(75,853
|
)
|
||||||||
Balance, end of period
|
$
|
23,525
|
$
|
29,981
|
$
|
23,525
|
$
|
29,981
|
ITEM 2. |
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
Operating Segments as of 2022
|
Operating Segments in 2023
|
|
Engine Management:
|
Vehicle Control (Aftermarket):
|
|
Ignition, Emissions, Fuel & Safety
|
Engine Management (Ignition, Emissions & Fuel Delivery)
|
|
Wire and Cable
|
Electrical & Safety
|
|
|
Wire Sets & Other
|
|
|
||
Temperature Control:
|
Temperature Control (Aftermarket):
|
|
Compressors
|
AC System Components
|
|
Other Climate Control Parts
|
Other Thermal Components
|
|
Engineered Solutions (non-Aftermarket):
|
||
Commercial Vehicle
|
||
Light Vehicle
|
||
Construction & Agriculture
|
||
All Other
|
Three Months Ended
|
||||||||
September 30,
|
||||||||
(In thousands, except per share data)
|
2023
|
2022
|
||||||
Net sales
|
$
|
386,413
|
$
|
381,373
|
||||
Gross profit
|
114,760
|
106,784
|
||||||
Gross profit %
|
29.7
|
%
|
28
|
%
|
||||
Operating income
|
34,806
|
33,615
|
||||||
Operating income %
|
9.0
|
%
|
8.8
|
%
|
||||
Earnings from continuing operations before income taxes
|
32,917
|
31,472
|
||||||
Provision for income taxes
|
7,995
|
8,280
|
||||||
Earnings from continuing operations
|
24,922
|
23,192
|
||||||
Loss from discontinued operations, net of income taxes
|
(18,200
|
)
|
(14,294
|
)
|
||||
Net earnings
|
6,722
|
8,898
|
||||||
Net earnings attributable to noncontrolling interest
|
63
|
52
|
||||||
Net earnings attributable to SMP
|
6,659
|
8,846
|
||||||
Per share data attributable to SMP – Diluted:
|
||||||||
Earnings from continuing operations
|
$
|
1.12
|
$
|
1.06
|
||||
Discontinued operations
|
(0.82
|
)
|
(0.66
|
)
|
||||
Net earnings per common share
|
$
|
0.30
|
$
|
0.40
|
Three Months Ended
|
||||||||
September 30,
|
||||||||
2023
|
2022
|
|||||||
Vehicle Control
|
||||||||
Engine Management (Ignition, Emissions and Fuel Delivery)
|
$
|
113,188
|
$
|
117,750
|
||||
Electrical and Safety
|
62,049
|
63,867
|
||||||
Wire Sets and Other
|
15,700
|
16,082
|
||||||
Total Vehicle Control
|
190,937
|
197,699
|
||||||
Temperature Control
|
||||||||
AC System Components
|
96,794
|
90,341
|
||||||
Other Thermal Components
|
26,849
|
27,080
|
||||||
Total Temperature Control
|
123,643
|
117,421
|
||||||
Engineered Solutions
|
||||||||
Commercial Vehicle
|
16,253
|
19,299
|
||||||
Construction/Agriculture
|
13,643
|
10,971
|
||||||
Light Vehicle
|
24,667
|
21,409
|
||||||
All Other
|
17,270
|
14,574
|
||||||
Total Engineered Solutions
|
71,833
|
66,253
|
||||||
Other
|
—
|
—
|
||||||
Total
|
$
|
386,413
|
$
|
381,373
|
Three Months Ended
September 30,
|
Vehicle
Control
|
Temperature
Control
|
Engineered
Solutions
|
Other
|
Total
|
|||||||||||||||
2023
|
||||||||||||||||||||
Net sales
|
$
|
190,937
|
$
|
123,643
|
$
|
71,833
|
$
|
—
|
$
|
386,413
|
||||||||||
Gross margins
|
60,865
|
37,785
|
16,110
|
—
|
114,760
|
|||||||||||||||
Gross margin percentage
|
31.9
|
%
|
30.6
|
%
|
22.4
|
%
|
—
|
29.7
|
%
|
|||||||||||
2022
|
||||||||||||||||||||
Net sales
|
$
|
197,699
|
$
|
117,421
|
$
|
66,253
|
$
|
—
|
$
|
381,373
|
||||||||||
Gross margins
|
60,350
|
35,105
|
11,329
|
—
|
106,784
|
|||||||||||||||
Gross margin percentage
|
30.5
|
%
|
29.9
|
%
|
17.1
|
%
|
—
|
28
|
%
|
Nine Months Ended
|
||||||||
September 30,
|
||||||||
2023
|
2022
|
|||||||
Vehicle Control
|
||||||||
Engine Management (Ignition, Emissions and Fuel Delivery)
|
$
|
342,860
|
$
|
338,480
|
||||
Electrical and Safety
|
166,720
|
173,178
|
||||||
Wire Sets and Other
|
49,723
|
49,076
|
||||||
Total Vehicle Control
|
559,303
|
560,734
|
||||||
Temperature Control
|
||||||||
AC System Components
|
216,995
|
219,323
|
||||||
Other Thermal Components
|
76,128
|
76,793
|
||||||
Total Temperature Control
|
293,123
|
296,116
|
||||||
Engineered Solutions
|
||||||||
Commercial Vehicle
|
62,852
|
60,253
|
||||||
Construction/Agriculture
|
34,541
|
33,177
|
||||||
Light Vehicle
|
71,181
|
70,523
|
||||||
All Other
|
46,516
|
42,813
|
||||||
Total Engineered Solutions
|
215,090
|
206,766
|
||||||
Other
|
—
|
—
|
||||||
Total
|
$
|
1,067,516
|
$
|
1,063,616
|
Nine Months Ended
September 30,
|
Vehicle
Control
|
Temperature
Control
|
Engineered
Solutions
|
Other
|
Total
|
|||||||||||||||
2023
|
||||||||||||||||||||
Net sales
|
$
|
559,303
|
$
|
293,123
|
$
|
215,090
|
$
|
—
|
$
|
1,067,516
|
||||||||||
Gross margins
|
179,446
|
83,452
|
44,398
|
—
|
307,296
|
|||||||||||||||
Gross margin percentage
|
32.1
|
%
|
28.5
|
%
|
20.6
|
%
|
—
|
28.8
|
%
|
|||||||||||
2022
|
||||||||||||||||||||
Net sales
|
$
|
560,734
|
$
|
296,116
|
$
|
206,766
|
$
|
—
|
$
|
1,063,616
|
||||||||||
Gross margins
|
169,502
|
83,908
|
39,565
|
—
|
292,975
|
|||||||||||||||
Gross margin percentage
|
30.2
|
%
|
28.3
|
%
|
19.1
|
%
|
—
|
27.5
|
%
|
September 30,
|
December 31,
|
|||||||||||
(In thousands)
|
2023
|
2022
|
2022
|
|||||||||
Operating cash flows
|
$
|
132,893
|
$
|
(75,475
|
)
|
|||||||
Total debt
|
$
|
147,596
|
$
|
269,536
|
$
|
239,620
|
||||||
Cash and cash equivalents
|
28,485
|
17,525
|
21,150
|
|||||||||
Net debt
|
$
|
119,111
|
$
|
252,011
|
$
|
218,470
|
||||||
Remaining borrowing capacity
|
$
|
343,981
|
$
|
227,881
|
$
|
255,631
|
||||||
Total liquidity
|
372,466
|
245,406
|
276,781
|
ITEM 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4. |
CONTROLS AND PROCEDURES
|
(a)
|
Evaluation of Disclosure Controls and Procedures.
|
(b)
|
Changes in Internal Control Over Financial Reporting.
|
ITEM 1. |
LEGAL PROCEEDINGS
|
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: October 27, 2023
|
/s/ Nathan R. Iles
|
Nathan R. Iles
|
|
Chief Financial Officer
|
|
(Principal Financial and
|
|
Accounting Officer)
|
1. |
I have reviewed this report on Form 10-Q of Standard Motor Products, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b) |
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c) |
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation; and
|
|
d) |
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5. |
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
|
|
a) |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and
report financial information; and
|
|
b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: October 27, 2023
|
||
/s/ Eric P. Sills
|
||
Eric P. Sills
|
||
Chief Executive Officer and President
|
1. |
I have reviewed this report on Form 10-Q of Standard Motor Products, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b) |
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c) |
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and
|
|
d) |
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5. |
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
|
|
a) |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report
financial information; and
|
|
b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: October 27, 2023
|
|
|
|
|
|
|
/s/ Nathan R. Iles
|
|
|
Nathan R. Iles
|
|
|
Chief Financial Officer
|
(1) |
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
|
/s/ Eric P. Sills |
|
Eric P. Sills |
|
Chief Executive Officer and President |
|
October 27, 2023 |
|
(1) |
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
|
/s/ Nathan R. Iles |
|
Nathan R. Iles | |
Chief Financial Officer | |
October 27, 2023 |