Standard Motor Products, Inc. Releases Fourth Quarter and 2023 Year-End Results
Net sales for the fourth quarter of 2023 were
Consolidated net sales for the twelve months ended
Mr.
By segment, Vehicle Control sales declined 5.9% in the fourth quarter, bringing full-year performance down 1.7% compared to 2022. The sales results in the quarter were due to a combination of modest changes to customer order patterns as well as general softness in the marketplace. While large customer POS trends were slightly positive early in the quarter, they weakened in December finishing roughly flat overall.
Turning to Temperature Control, weather patterns throughout the year created challenges for this highly seasonal category, with full-year sales down 3.8%. 2022 was the longest and hottest season on record, with full-year sales up 8.4% over the previous year, making for a difficult comparison. The first half of 2023 was unseasonably cool, and while it got quite hot across much of the country in the third quarter, it tends to be difficult to recover from a late start to the selling season. The fourth quarter itself was light, down 19.0%, though it is important to note with the seasonal demand over, it is always far and away our lowest sales quarter and can therefore be quite volatile.
Our Engineered Solutions segment continues to post strong numbers as sales increased 6.7% in the fourth quarter and 4.7% for the year. After several years of building out this new business, we officially launched it as its own operating segment at the start of 2023, and we are delighted to see the ongoing momentum. We are pleased with the overall traction to date in this segment and continue to believe we will be able to capitalize on new awards as well as introduce new products over time to broaden both new and existing customer opportunities.
Consolidated operating profit for the full year, excluding non-operational gains and losses, finished at 7.0%, vs. 8.2% in 2022, and adjusted EBITDA was 9.3% for the year compared to our guidance of approximately 9.5%. Lower sales volumes resulted in lower leverage of fixed costs, even though our pricing actions along with cost reduction initiatives have started to offset lingering inflationary pressures. Customer factoring program expense at
From a cash flow perspective, we were pleased with the impact of our initiatives on reducing both our inventory and borrowing levels. At year-end, our inventory was
As we head into 2024, our outlook for the full year includes an expectation that sales growth will be flat to low single digits and Adjusted EBITDA will be in a range of 9.0% to 9.5%. We remind investors that as part of our distribution center expansion into
In closing,
Conference Call
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995,
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Consolidated Statements of Operations |
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(In thousands, except per share amounts) |
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THREE MONTHS ENDED |
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TWELVE MONTHS ENDED |
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2023 |
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2022 |
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2023 |
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2022 |
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(Unaudited) |
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(Unaudited) |
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||||||
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$ 290,756 |
|
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$ 308,199 |
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$ 1,358,272 |
|
|
$ 1,371,815 |
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COST OF SALES |
|
209,226 |
|
|
218,635 |
|
|
969,446 |
|
|
989,276 |
|
|
|
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|
|
|
|
|
|
|
|
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GROSS PROFIT |
|
81,530 |
|
|
89,564 |
|
|
388,826 |
|
|
382,539 |
|
|
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|
|
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SELLING, GENERAL & ADMINISTRATIVE EXPENSES |
|
70,326 |
|
|
72,075 |
|
|
293,583 |
|
|
276,626 |
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
1,259 |
|
|
1,847 |
|
|
2,642 |
|
|
1,891 |
|
OTHER INCOME, NET |
|
2 |
|
|
70 |
|
|
76 |
|
|
113 |
|
|
|
|
|
|
|
|
|
|
|
|
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OPERATING INCOME |
|
9,947 |
|
|
15,712 |
|
|
92,677 |
|
|
104,135 |
|
|
|
|
|
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OTHER NON-OPERATING INCOME (EXPENSE), NET |
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(433) |
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(75) |
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2,326 |
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|
4,814 |
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INTEREST EXPENSE |
|
2,521 |
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|
4,335 |
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|
13,287 |
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|
10,617 |
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EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES |
|
6,993 |
|
|
11,302 |
|
|
81,716 |
|
|
98,332 |
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|
|
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PROVISION FOR (BENEFIT FROM) INCOME TAXES |
|
(288) |
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|
2,799 |
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|
18,368 |
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|
25,206 |
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EARNINGS FROM CONTINUING OPERATIONS |
|
7,281 |
|
|
8,503 |
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|
63,348 |
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|
73,126 |
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LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES |
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(795) |
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(615) |
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(28,996) |
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(17,691) |
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|
|
|
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NET EARNINGS |
|
6,486 |
|
|
7,888 |
|
|
34,352 |
|
|
55,435 |
|
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|
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|
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NET EARNINGS (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST |
52 |
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(45) |
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|
204 |
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|
84 |
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NET EARNINGS ATTRIBUTABLE TO SMP (a) |
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$ 6,434 |
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$ 7,933 |
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$ 34,148 |
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$ 55,351 |
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NET EARNINGS ATTRIBUTABLE TO SMP |
|
|
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EARNINGS FROM CONTINUING OPERATIONS |
|
$ 7,229 |
|
|
$ 8,548 |
|
|
$ 63,144 |
|
|
$ 73,042 |
|
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES |
|
(795) |
|
|
(615) |
|
|
(28,996) |
|
|
(17,691) |
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TOTAL |
|
$ 6,434 |
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$ 7,933 |
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$ 34,148 |
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$ 55,351 |
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NET EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SMP |
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BASIC EARNINGS FROM CONTINUING OPERATIONS |
|
$ 0.33 |
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|
$ 0.40 |
|
|
$ 2.91 |
|
|
$ 3.37 |
|
DISCONTINUED OPERATION |
|
(0.04) |
|
|
(0.03) |
|
|
(1.34) |
|
|
(0.82) |
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NET EARNINGS PER COMMON SHARE - BASIC |
|
$ 0.29 |
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|
$ 0.37 |
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|
$ 1.57 |
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$ 2.55 |
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DILUTED EARNINGS FROM CONTINUING OPERATIONS |
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$ 0.32 |
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$ 0.39 |
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$ 2.85 |
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$ 3.30 |
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DISCONTINUED OPERATION |
|
(0.03) |
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|
(0.03) |
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|
(1.31) |
|
|
(0.80) |
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NET EARNINGS PER COMMON SHARE - DILUTED |
|
$ 0.29 |
|
|
$ 0.36 |
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|
$ 1.54 |
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$ 2.50 |
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WEIGHTED AVERAGE NUMBER OF COMMON SHARES |
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21,836,293 |
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21,578,194 |
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21,716,177 |
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21,683,719 |
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WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES |
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22,310,085 |
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22,030,263 |
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22,161,341 |
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22,139,981 |
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(a) |
"SMP" refers to |
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Segment Revenues and Operating Profit |
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(In thousands) |
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THREE MONTHS ENDED |
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TWELVE MONTHS ENDED |
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2023 |
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2022 |
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2023 |
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2022 |
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(Unaudited) |
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(Unaudited) |
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||||||
Revenues |
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Engine Management (Ignition, Emissions and |
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Fuel Delivery) |
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$ 107,320 |
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$ 116,091 |
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$ 450,180 |
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$ 454,571 |
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Electrical and Safety |
|
55,062 |
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57,309 |
|
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221,782 |
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230,487 |
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Wire sets and other |
|
16,247 |
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16,437 |
|
|
65,970 |
|
|
65,513 |
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Vehicle Control |
|
178,629 |
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|
189,837 |
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737,932 |
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750,571 |
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- |
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AC System Components |
|
19,843 |
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26,161 |
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237,756 |
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|
245,484 |
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Other Thermal Components |
|
24,788 |
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|
28,960 |
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99,998 |
|
|
105,753 |
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Temperature Control |
|
44,631 |
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|
55,121 |
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337,754 |
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351,237 |
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Commercial Vehicle |
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20,218 |
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|
20,022 |
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|
83,025 |
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|
80,275 |
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Construction / Agriculture |
|
8,861 |
|
|
9,208 |
|
|
43,402 |
|
|
42,385 |
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Light Vehicle |
|
21,578 |
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|
21,010 |
|
|
92,759 |
|
|
91,533 |
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All Other |
|
16,839 |
|
|
13,001 |
|
|
63,400 |
|
|
55,814 |
|
Engineered Solutions |
|
67,496 |
|
|
63,241 |
|
|
282,586 |
|
|
270,007 |
|
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Revenues |
|
$ 290,756 |
|
|
$ 308,199 |
|
|
$ 1,358,272 |
|
|
$ 1,371,815 |
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Gross Margin |
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Vehicle Control |
|
$ 58,769 |
32.9 % |
|
$ 62,765 |
33.1 % |
|
$ 238,215 |
32.3 % |
|
$ 232,267 |
30.9 % |
Temperature Control |
|
12,375 |
27.7 % |
|
15,005 |
27.2 % |
|
95,827 |
28.4 % |
|
98,913 |
28.2 % |
Engineered Solutions |
|
10,386 |
15.4 % |
|
11,794 |
18.6 % |
|
54,784 |
19.4 % |
|
51,359 |
19.0 % |
All Other |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Gross Margin |
|
$ 81,530 |
28.0 % |
|
$ 89,564 |
29.1 % |
|
$ 388,826 |
28.6 % |
|
$ 382,539 |
27.9 % |
|
|
|
|
|
|
|
|
|
|
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Selling, General & Administrative |
|
|
|
|
|
|
|
|
|
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|
|
Vehicle Control |
|
$ 41,397 |
23.2 % |
|
$ 39,649 |
20.9 % |
|
$ 165,705 |
22.5 % |
|
$ 151,596 |
20.2 % |
Temperature Control |
|
15,640 |
35.0 % |
|
14,358 |
26.0 % |
|
77,376 |
22.9 % |
|
70,192 |
20.0 % |
Engineered Solutions |
|
9,343 |
13.8 % |
|
7,780 |
12.3 % |
|
34,565 |
12.2 % |
|
32,646 |
12.1 % |
All Other |
|
3,946 |
|
|
3,286 |
|
|
15,937 |
|
|
15,190 |
|
Subtotal |
|
70,326 |
24.2 % |
|
65,073 |
21.1 % |
|
293,583 |
21.6 % |
|
269,624 |
19.7 % |
Customer Bankruptcy Charge |
|
- |
0.0 % |
|
7,002 |
2.3 % |
|
- |
0.0 % |
|
7,002 |
0.5 % |
Selling, General & Administrative |
|
$ 70,326 |
24.2 % |
|
$ 72,075 |
23.4 % |
|
$ 293,583 |
21.6 % |
|
$ 276,626 |
20.2 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle Control |
|
$ 17,372 |
9.7 % |
|
$ 23,116 |
12.2 % |
|
$ 72,510 |
9.8 % |
|
$ 80,671 |
10.7 % |
Temperature Control |
|
(3,265) |
-7.3 % |
|
647 |
1.2 % |
|
18,451 |
5.5 % |
|
28,721 |
8.2 % |
Engineered Solutions |
|
1,043 |
1.5 % |
|
4,014 |
6.3 % |
|
20,219 |
7.2 % |
|
18,713 |
6.9 % |
All Other |
|
(3,946) |
|
|
(3,286) |
|
|
(15,937) |
|
|
(15,190) |
|
Subtotal |
|
$ 11,204 |
3.9 % |
|
$ 24,491 |
7.9 % |
|
$ 95,243 |
7.0 % |
|
$ 112,915 |
8.2 % |
Restructuring & Integration |
|
(1,259) |
-0.4 % |
|
(1,847) |
-0.6 % |
|
(2,642) |
-0.2 % |
|
(1,891) |
-0.1 % |
Customer Bankruptcy Charge |
|
- |
0.0 % |
|
(7,002) |
-2.3 % |
|
- |
0.0 % |
|
(7,002) |
-0.5 % |
Other Income, Net |
|
2 |
0.0 % |
|
70 |
0.0 % |
|
76 |
0.0 % |
|
113 |
0.0 % |
Operating Income |
|
$ 9,947 |
3.4 % |
|
$ 15,712 |
5.1 % |
|
$ 92,677 |
6.8 % |
|
$ 104,135 |
7.6 % |
|
|||||||||
Reconciliation of GAAP and Non-GAAP Measures |
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(In thousands, except per share amounts) |
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THREE MONTHS ENDED |
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TWELVE MONTHS ENDED |
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|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
||||
EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM CONTINUING OPERATIONS |
|
$ 7,229 |
|
$ 8,548 |
|
$ 63,144 |
|
$ 73,042 |
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
1,259 |
|
1,847 |
|
2,642 |
|
1,891 |
|
CUSTOMER BANKRUPTCY CHARGE |
|
- |
|
7,002 |
|
- |
|
7,002 |
|
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD |
|
- |
|
- |
|
(312) |
|
(249) |
|
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS |
|
(327) |
|
(2,301) |
|
(687) |
|
(2,312) |
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS |
|
$ 8,161 |
|
$ 15,096 |
|
$ 64,787 |
|
$ 79,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS |
|
$ 0.32 |
|
$ 0.39 |
|
$ 2.85 |
|
$ 3.30 |
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
0.06 |
|
0.08 |
|
0.12 |
|
0.08 |
|
CUSTOMER BANKRUPTCY CHARGE |
|
- |
|
0.32 |
|
- |
|
0.32 |
|
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD |
|
- |
|
- |
|
(0.01) |
|
(0.01) |
|
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS |
|
(0.01) |
|
(0.10) |
|
(0.04) |
|
(0.10) |
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS |
|
$ 0.37 |
|
$ 0.69 |
|
$ 2.92 |
|
$ 3.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING INCOME |
|
$ 9,947 |
|
$ 15,712 |
|
$ 92,677 |
|
$ 104,135 |
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
1,259 |
|
1,847 |
|
2,642 |
|
1,891 |
|
CUSTOMER BANKRUPTCY CHARGE |
|
- |
|
7,002 |
|
- |
|
7,002 |
|
OTHER INCOME, NET |
|
(2) |
|
(70) |
|
(76) |
|
(113) |
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP OPERATING INCOME |
|
$ 11,204 |
|
$ 24,491 |
|
$ 95,243 |
|
$ 112,915 |
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES |
|
$ 6,993 |
|
$ 11,302 |
|
$ 81,716 |
|
$ 98,332 |
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION AND AMORTIZATION |
|
7,561 |
|
7,403 |
|
29,022 |
|
28,298 |
|
INTEREST EXPENSE |
|
2,521 |
|
4,335 |
|
13,287 |
|
10,617 |
|
EBITDA |
|
17,075 |
|
23,040 |
|
124,025 |
|
137,247 |
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
1,259 |
|
1,847 |
|
2,642 |
|
1,891 |
|
CUSTOMER BANKRUPTCY CHARGE |
|
- |
|
7,002 |
|
- |
|
7,002 |
|
SPECIAL ITEMS |
|
1,259 |
|
8,849 |
|
2,642 |
|
8,893 |
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
$ 18,334 |
|
$ 31,889 |
|
$ 126,667 |
|
$ 146,140 |
|
|
|
|
MANAGEMENT BELIEVES THAT NON-GAAP EARNINGS FROM CONTINUING OPERATIONS AND NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS WHICH ARE ATTRIBUTABLE TO SMP, AND NON-GAAP OPERATING INCOME AND EBITDA WITHOUT SPECIAL ITEMS, EACH OF WHICH ARE NON-GAAP MEASUREMENTS AND ARE ADJUSTED FOR SPECIAL ITEMS, ARE MEANINGFUL TO INVESTORS BECAUSE THEY PROVIDE A VIEW OF THE COMPANY WITH RESPECT TO ONGOING OPERATING RESULTS. SPECIAL ITEMS REPRESENT SIGNIFICANT CHARGES OR CREDITS THAT ARE IMPORTANT TO AN UNDERSTANDING OF THE COMPANY'S OVERALL OPERATING RESULTS IN THE PERIODS PRESENTED. SUCH NON-GAAP MEASUREMENTS ARE NOT RECOGNIZED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND SHOULD NOT BE VIEWED AS AN ALTERNATIVE TO GAAP MEASURES OF PERFORMANCE. |
|
|||||||||||
Reconciliation of GAAP and Non-GAAP Measures by Segments |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
THREE MONTHS ENDED |
|
||||||||
|
|
Vehicle Control |
|
Temperature Control |
|
Engineered Solutions |
|
All Other |
|
Consolidated |
|
|
|
(Unaudited) |
|
||||||||
OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING INCOME |
|
$ 16,608 |
|
$ (3,595) |
|
$ 880 |
|
$ (3,946) |
|
$ 9,947 |
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
792 |
|
330 |
|
137 |
|
- |
|
1,259 |
|
CUSTOMER BANKRUPTCY CHARGE |
|
- |
|
- |
|
- |
|
- |
|
- |
|
OTHER (INCOME) EXPENSE, NET |
|
(28) |
|
- |
|
26 |
|
- |
|
(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP OPERATING INCOME |
|
$ 17,372 |
|
$ (3,265) |
|
$ 1,043 |
|
$ (3,946) |
|
$ 11,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES |
|
$ 14,862 |
|
$ (4,466) |
|
$ 395 |
|
$ (3,798) |
|
$ 6,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION AND AMORTIZATION |
|
3,610 |
|
985 |
|
2,549 |
|
417 |
|
7,561 |
|
INTEREST EXPENSE |
|
1,737 |
|
602 |
|
690 |
|
(508) |
|
2,521 |
|
EBITDA |
|
20,209 |
|
(2,879) |
|
3,634 |
|
(3,889) |
|
17,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
792 |
|
330 |
|
137 |
|
- |
|
1,259 |
|
SPECIAL ITEMS |
|
792 |
|
330 |
|
137 |
|
- |
|
1,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
$ 21,001 |
|
$ (2,549) |
|
$ 3,771 |
|
$ (3,889) |
|
$ 18,334 |
|
% of |
|
11.8 % |
|
-5.7 % |
|
5.6 % |
|
|
|
6.3 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
THREE MONTHS ENDED |
|
||||||||
|
|
Vehicle Control |
|
Temperature Control |
|
Engineered Solutions |
|
All Other |
|
Consolidated |
|
|
|
(Unaudited) |
|
||||||||
OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING INCOME |
|
$ 16,599 |
|
$ (1,615) |
|
$ 4,014 |
|
$ (3,286) |
|
$ 15,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
1,452 |
|
395 |
|
- |
|
- |
|
1,847 |
|
CUSTOMER BANKRUPTCY CHARGE |
|
5,135 |
|
1,867 |
|
- |
|
- |
|
7,002 |
|
OTHER INCOME, NET |
|
(70) |
|
- |
|
- |
|
- |
|
(70) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP OPERATING INCOME |
|
$ 23,116 |
|
$ 647 |
|
$ 4,014 |
|
$ (3,286) |
|
$ 24,491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES |
|
$ 13,400 |
|
$ (2,848) |
|
$ 3,925 |
|
$ (3,175) |
|
$ 11,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION AND AMORTIZATION |
|
3,656 |
|
890 |
|
2,380 |
|
477 |
|
7,403 |
|
INTEREST EXPENSE |
|
3,140 |
|
958 |
|
317 |
|
(80) |
|
4,335 |
|
EBITDA |
|
20,196 |
|
(1,000) |
|
6,622 |
|
(2,778) |
|
23,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
1,452 |
|
395 |
|
- |
|
- |
|
1,847 |
|
CUSTOMER BANKRUPTCY CHARGE |
|
5,135 |
|
1,867 |
|
- |
|
- |
|
7,002 |
|
SPECIAL ITEMS |
|
6,587 |
|
2,262 |
|
- |
|
- |
|
8,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
$ 26,783 |
|
$ 1,262 |
|
$ 6,622 |
|
$ (2,778) |
|
$ 31,889 |
|
% of |
|
14.1 % |
|
2.3 % |
|
10.5 % |
|
|
|
10.3 % |
|
|
|
|
MANAGEMENT BELIEVES THAT NON-GAAP OPERATING INCOME AND EBITDA WITHOUT SPECIAL ITEMS, EACH OF WHICH ARE NON-GAAP MEASUREMENTS AND ARE ADJUSTED FOR SPECIAL ITEMS, ARE MEANINGFUL TO INVESTORS BECAUSE THEY PROVIDE A VIEW OF THE COMPANY WITH RESPECT TO ONGOING OPERATING RESULTS. SPECIAL ITEMS REPRESENT SIGNIFICANT CHARGES OR CREDITS THAT ARE IMPORTANT TO AN UNDERSTANDING OF THE COMPANY'S OVERALL OPERATING RESULTS IN THE PERIODS PRESENTED. SUCH NON-GAAP MEASUREMENTS ARE NOT RECOGNIZED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND SHOULD NOT BE VIEWED AS AN ALTERNATIVE TO GAAP MEASURES OF PERFORMANCE. |
|
|||||||||||
Reconciliation of GAAP and Non-GAAP Measures by Segments |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
TWELVE MONTHS ENDED |
|
||||||||
|
|
Vehicle Control |
|
Temperature Control |
|
Engineered Solutions |
|
All Other |
|
Consolidated |
|
|
|
(Unaudited) |
|
||||||||
OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING INCOME |
|
$ 71,327 |
|
$ 17,343 |
|
$ 19,944 |
|
$ (15,937) |
|
$ 92,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
1,276 |
|
1,108 |
|
258 |
|
- |
|
2,642 |
|
CUSTOMER BANKRUPTCY CHARGE |
|
- |
|
- |
|
- |
|
- |
|
- |
|
OTHER (INCOME) EXPENSE, NET |
|
(93) |
|
- |
|
17 |
|
- |
|
(76) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP OPERATING INCOME |
|
$ 72,510 |
|
$ 18,451 |
|
$ 20,219 |
|
$ (15,937) |
|
$ 95,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES |
|
$ 62,856 |
|
$ 14,678 |
|
$ 20,006 |
|
$ (15,824) |
|
$ 81,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION AND AMORTIZATION |
|
13,877 |
|
3,424 |
|
9,966 |
|
1,755 |
|
29,022 |
|
INTEREST EXPENSE |
|
9,345 |
|
3,279 |
|
2,306 |
|
(1,643) |
|
13,287 |
|
EBITDA |
|
86,078 |
|
21,381 |
|
32,278 |
|
(15,712) |
|
124,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
1,276 |
|
1,108 |
|
258 |
|
- |
|
2,642 |
|
SPECIAL ITEMS |
|
1,276 |
|
1,108 |
|
258 |
|
- |
|
2,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
$ 87,354 |
|
$ 22,489 |
|
$ 32,536 |
|
$ (15,712) |
|
$ 126,667 |
|
% of |
|
11.8 % |
|
6.7 % |
|
11.5 % |
|
|
|
9.3 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
TWELVE MONTHS ENDED |
|
||||||||
|
|
Vehicle Control |
|
Temperature Control |
|
Engineered Solutions |
|
All Other |
|
Consolidated |
|
|
|
(Unaudited) |
|
||||||||
OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING INCOME |
|
$ 74,153 |
|
$ 26,459 |
|
$ 18,713 |
|
$ (15,190) |
|
$ 104,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
1,496 |
|
395 |
|
- |
|
- |
|
1,891 |
|
CUSTOMER BANKRUPTCY CHARGE |
|
5,135 |
|
1,867 |
|
- |
|
- |
|
7,002 |
|
OTHER INCOME, NET |
|
(113) |
|
- |
|
- |
|
- |
|
(113) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP OPERATING INCOME |
|
$ 80,671 |
|
$ 28,721 |
|
$ 18,713 |
|
$ (15,190) |
|
$ 112,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES |
|
$ 67,439 |
|
$ 26,047 |
|
$ 20,103 |
|
$ (15,257) |
|
$ 98,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION AND AMORTIZATION |
|
14,075 |
|
2,973 |
|
9,557 |
|
1,693 |
|
28,298 |
|
INTEREST EXPENSE |
|
7,816 |
|
2,312 |
|
804 |
|
(315) |
|
10,617 |
|
EBITDA |
|
89,330 |
|
31,332 |
|
30,464 |
|
(13,879) |
|
137,247 |
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND INTEGRATION EXPENSES |
|
1,496 |
|
395 |
|
- |
|
- |
|
1,891 |
|
CUSTOMER BANKRUPTCY CHARGE |
|
5,135 |
|
1,867 |
|
- |
|
- |
|
7,002 |
|
SPECIAL ITEMS |
|
6,631 |
|
2,262 |
|
- |
|
- |
|
8,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA WITHOUT SPECIAL ITEMS |
|
$ 95,961 |
|
$ 33,594 |
|
$ 30,464 |
|
$ (13,879) |
|
$ 146,140 |
|
% of |
|
12.8 % |
|
9.6 % |
|
11.3 % |
|
|
|
10.7 % |
|
|
|
|
MANAGEMENT BELIEVES THAT NON-GAAP OPERATING INCOME AND EBITDA WITHOUT SPECIAL ITEMS, EACH OF WHICH ARE NON-GAAP MEASUREMENTS AND ARE ADJUSTED FOR SPECIAL ITEMS, ARE MEANINGFUL TO INVESTORS BECAUSE THEY PROVIDE A VIEW OF THE COMPANY WITH RESPECT TO ONGOING OPERATING RESULTS. SPECIAL ITEMS REPRESENT SIGNIFICANT CHARGES OR CREDITS THAT ARE IMPORTANT TO AN UNDERSTANDING OF THE COMPANY'S OVERALL OPERATING RESULTS IN THE PERIODS PRESENTED. SUCH NON-GAAP MEASUREMENTS ARE NOT RECOGNIZED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND SHOULD NOT BE VIEWED AS AN ALTERNATIVE TO GAAP MEASURES OF PERFORMANCE. |
|
||||||
Condensed Consolidated Balance Sheets |
||||||
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
DECEMBER |
|
|
|
DECEMBER |
|
|
2023 |
|
|
|
2022 |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
||||||
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS |
|
$ 32,526 |
|
|
|
$ 21,150 |
|
|
|
|
|
|
|
ACCOUNTS RECEIVABLE, GROSS |
|
168,327 |
|
|
|
173,013 |
ALLOWANCE FOR EXPECTED CREDIT LOSSES |
|
8,045 |
|
|
|
5,375 |
ACCOUNTS RECEIVABLE, NET |
|
160,282 |
|
|
|
167,638 |
|
|
|
|
|
|
|
INVENTORIES |
|
507,075 |
|
|
|
528,715 |
UNRETURNED CUSTOMER INVENTORY |
|
18,240 |
|
|
|
19,695 |
OTHER CURRENT ASSETS |
|
26,100 |
|
|
|
25,241 |
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS |
|
744,223 |
|
|
|
762,439 |
|
|
|
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT, NET |
|
121,872 |
|
|
|
107,148 |
OPERATING LEASE RIGHT-OF-USE ASSETS |
|
100,065 |
|
|
|
49,838 |
|
|
134,729 |
|
|
|
132,087 |
OTHER INTANGIBLES, NET |
|
92,308 |
|
|
|
100,504 |
DEFERRED INCOME TAXES |
|
40,533 |
|
|
|
33,658 |
INVESTMENT IN UNCONSOLIDATED AFFILIATES |
|
24,050 |
|
|
|
41,745 |
OTHER ASSETS |
|
35,267 |
|
|
|
27,510 |
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ 1,293,047 |
|
|
|
$ 1,254,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT PORTION OF REVOLVING CREDIT FACILITY |
|
$ - |
|
|
|
$ 50,000 |
CURRENT PORTION OF TERM LOAN AND OTHER DEBT |
5,029 |
|
|
|
5,031 |
|
ACCOUNTS PAYABLE |
|
107,455 |
|
|
|
89,247 |
ACCRUED CUSTOMER RETURNS |
|
38,238 |
|
|
|
37,169 |
ACCRUED CORE LIABILITY |
|
18,399 |
|
|
|
22,952 |
ACCRUED REBATES |
|
42,278 |
|
|
|
37,381 |
PAYROLL AND COMMISSIONS |
|
29,561 |
|
|
|
31,361 |
SUNDRY PAYABLES AND ACCRUED EXPENSES |
|
63,303 |
|
|
|
49,990 |
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES |
|
304,263 |
|
|
|
323,131 |
|
|
|
|
|
|
|
LONG-TERM DEBT |
|
151,182 |
|
|
|
184,589 |
NONCURRENT OPERATING LEASE LIABILITY |
|
88,974 |
|
|
|
40,709 |
ACCRUED ASBESTOS LIABILITIES |
|
72,013 |
|
|
|
63,305 |
OTHER LIABILITIES |
|
25,742 |
|
|
|
22,157 |
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
642,174 |
|
|
|
633,891 |
|
|
|
|
|
|
|
TOTAL SMP STOCKHOLDERS' EQUITY |
|
635,064 |
|
|
|
610,020 |
NONCONTROLLING INTEREST |
|
15,809 |
|
|
|
11,018 |
TOTAL STOCKHOLDERS' EQUITY |
|
650,873 |
|
|
|
621,038 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ 1,293,047 |
|
|
|
$ 1,254,929 |
|
|||||
Condensed Consolidated Statements of Cash Flows |
|||||
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
TWELVE MONTHS ENDED |
|||
|
|
|
|||
|
|
2023 |
|
|
2022 |
|
|
(Unaudited) |
|||
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS |
$ 34,352 |
|
|
$ 55,435 |
|
ADJUSTMENTS TO RECONCILE NET EARNINGS TO |
|
|
|
|
|
PROVIDED BY (USED IN) OPERATING ACTIVITIES: |
|
|
|
|
|
DEPRECIATION AND AMORTIZATION |
29,022 |
|
|
28,298 |
|
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAXES |
28,996 |
|
|
17,691 |
|
CUSTOMER BANKRUPTCY CHARGE |
- |
|
|
7,002 |
|
OTHER |
7,718 |
|
|
13,064 |
|
CHANGE IN ASSETS AND LIABILITIES: |
|
|
|
|
|
ACCOUNTS RECEIVABLE |
7,965 |
|
|
6,916 |
|
INVENTORY |
29,494 |
|
|
(67,495) |
|
ACCOUNTS PAYABLE |
19,645 |
|
|
(48,604) |
|
PREPAID EXPENSES AND OTHER CURRENT ASSETS |
(70) |
|
|
(5,509) |
|
SUNDRY PAYABLES AND ACCRUED EXPENSES |
(4,284) |
|
|
(29,089) |
|
OTHER |
(8,578) |
|
|
(5,242) |
|
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES |
144,260 |
|
|
(27,533) |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES |
(3,954) |
|
|
(1,934) |
|
CASH ACQUIRED IN STEP ACQUISITION |
6,779 |
|
|
- |
|
CAPITAL EXPENDITURES |
(28,633) |
|
|
(25,956) |
|
OTHER INVESTING ACTIVITIES |
108 |
|
|
73 |
|
|
(25,700) |
|
|
(27,817) |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
NET CHANGE IN DEBT |
(83,558) |
|
|
111,307 |
|
PURCHASE OF TREASURY STOCK |
- |
|
|
(29,656) |
|
DIVIDENDS PAID |
(25,164) |
|
|
(23,428) |
|
DIVIDENDS PAID TO NONCONTROLLING INTEREST |
(700) |
|
|
- |
|
PAYMENTS OF DEBT ISSUANCE COSTS |
- |
|
|
(2,128) |
|
OTHER FINANCING ACTIVITIES |
(189) |
|
|
(595) |
|
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
(109,611) |
|
|
55,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH |
2,427 |
|
|
(755) |
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
11,376 |
|
|
(605) |
|
CASH AND CASH EQUIVALENTS at beginning of period |
21,150 |
|
|
21,755 |
|
CASH AND CASH EQUIVALENTS at end of period |
$ 32,526 |
|
|
$ 21,150 |
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