Standard Motor Products, Inc. Announces Third Quarter 2003 Earnings and a Quarterly Dividend.Business Editors NEW YORK--(BUSINESS WIRE)--Oct. 30, 2003 Standard Motor Products, Inc. (NYSE NYSE See: New York Stock Exchange :SMP (Symmetric MultiProcessing) A multiprocessing architecture in which multiple CPUs, residing in one cabinet, share the same memory. SMP systems provide scalability. As business increases, additional CPUs can be added to absorb the increased transaction volume. ), an automotive replacement parts manufacturer and distributor, reported consolidated net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the third quarter of 2003, the three months ended September September: see month. 30, 2003, of $214.5 million, compared to consolidated net sales of $183.6 million during the comparable quarter in 2002. Earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the third quarter of 2003 were $2.0 million or 11 cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $9.8 million or 72 cents per diluted share, in the third quarter of 2002. Consolidated net sales for the nine month period ended September 30, 2003 were $516.3 million, compared to consolidated net sales of $490.6 million during the comparable period in 2002. Earnings from continuing operations for the nine month period ended September 30, 2003 were $5.7 million, or 39 cents per diluted share, compared to $14.2 million, or $1.14 per diluted share, for the comparable period in 2002. Mr. James Burke James Burke may refer to:
Commenting on the results, Mr. Lawrence Sills Sills , Beverly Originally Belle Silverman. Born 1929. American operatic soprano and manager who joined the New York City Opera in 1953 and was its general director from 1980 to 1989. Noun 1. , Standard Motor Products' Chief Executive Officer, said, "Net sales in the third quarter, excluding the addition of DEM volume, were down $7.9 million in our Engine Management division and down $20.8 million in Temperature Control. "For the year, Temperature Control net sales are down $34.3 million or 15.2%, the result of the loss of AutoZone's business and one of the coolest summers on record. In Engine Management, net sales excluding DEM are down 1.6% for the year. Due to the DEM acquisition, we did not implement our usual 2-3% annual price increase, and this slight decline in Engine Management's units is in line with all our forecasts." Mr. Sills added, "We continue to make good improvements in gross margin despite the reduction in net sales and the lack of an Engine Management price increase. The third quarter gross margin, excluding DEM, improved 0.5 points and the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. increased 0.4 points versus the comparable periods in the prior year." Regarding the integration of DEM, Mr. Sills stated, "We are extremely pleased with how the integration is progressing. We are proceeding on schedule with plans to close 7 of the 9 DEM facilities in the near future. We are comfortable with our original estimates to complete the integration before the end of 2004; $30-35 million for restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and integration costs over this period; and $55 million in annual savings by 2005." Finally, we have recently re-examined the provisions of our revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. Based on a possible interpretation of the applicable accounting rules, we may be required to reclassify Verb 1. reclassify - classify anew, change the previous classification; "The zoologists had to reclassify the mollusks after they found new species" class, classify, sort out, assort, sort, separate - arrange or order by classes or categories; "How would you our credit facility from long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. to short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. , from 2001 forward, though the existing credit facility does not mature until 2008. The issue is not yet fully resolved and at present, we are continuing to classify clas·si·fy tr.v. clas·si·fied, clas·si·fy·ing, clas·si·fies 1. To arrange or organize according to class or category. 2. To designate (a document, for example) as confidential, secret, or top secret. those borrowings as long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . In any event, we remain in compliance with all of our debt covenants, and we believe that any reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. of our revolving credit facility to short-term debt will have no effect on our liquidity, cash flows, debt amortization, profits or other terms within any of our debt facilities. The Board of Directors has approved payment of a quarterly dividend of nine cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. on the common stock outstanding. The dividend will be paid on December 1, 2003 to stockholders of record on November 14, 2003. Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Friday, October 31, 2003. The dial in number is 800-362-0574 and the ID number is J451. The playback Playback could mean:
Under the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, Standard Motor Products cautions investors that any forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made by the company, including those that may be made in this press release, are based on management's expectations at the time they are made, but they are subject to risks and uncertainties that may cause actual results, events or performance to differ materially from those contemplated by such forward looking statements. Among the factors that could cause actual results, events or performance to differ materially from those risks and uncertainties discussed in this press release, and detailed from time-to-time in prior press releases and in the company's filings with the Securities and Exchange Commission, including the company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and quarterly reports on Form 10-Q Form 10-Q See 10-Q. . By making these forward looking statements, Standard Motor Products undertakes no obligation or intention to update these statements after the date of this release.
STANDARD MOTOR PRODUCTS, INC.
Consolidated Statements of Operations
(Dollars in thousands,
except per share amounts)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2003 2002 2003 2002
----------- ----------- ----------- -----------
NET SALES $214,479 $183,631 $516,329 $490,581
COST OF SALES 156,191 132,680 379,682 361,560
----------- ----------- ----------- -----------
GROSS PROFIT 58,288 50,951 136,647 129,021
SELLING, GENERAL &
ADMINISTRATIVE
EXPENSES 50,072 33,859 115,563 99,441
----------- ----------- ----------- -----------
OPERATING INCOME 8,216 17,092 21,084 29,580
OTHER INCOME
(EXPENSE), NET (685) 969 (1,088) 1,725
INTEREST EXPENSE 4,070 3,606 10,276 10,877
----------- ----------- ----------- -----------
EARNINGS FROM
CONTINUING OPERATIONS
BEFORE TAXES 3,461 14,455 9,720 20,428
INCOME TAX EXPENSE 1,419 4,623 3,985 6,250
----------- ----------- ----------- -----------
EARNINGS FROM
CONTINUING OPERATIONS 2,042 9,832 5,735 14,178
LOSS FROM DISCONTINUED
OPERATION, NET OF TAX (591) (16,918) (1,372) (18,043)
----------- ----------- ----------- -----------
EARNINGS (LOSS) BEFORE
CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 1,451 (7,086) 4,363 (3,865)
CUMULATIVE EFFECT OF
ACCOUNTING CHANGE,
NET OF TAX - - - (18,350)
----------- ----------- ----------- -----------
NET EARNINGS (LOSS) $1,451 $(7,086) $4,363 $(22,215)
=========== =========== =========== ===========
NET EARNING (LOSS) PER
COMMON SHARE:
BASIC EARNINGS
(LOSS) FROM
CONTINUING
OPERATIONS $0.11 $0.82 $0.39 $1.19
DISCONTINUED
OPERATION (0.03) (1.41) (0.09) (1.52)
CUMULATIVE EFFECT
OF ACCOUNTING
CHANGE - - - (1.54)
----------- ----------- ----------- -----------
NET EARNINGS (LOSS)
PER COMMON SHARE -
BASIC $0.08 $(0.59) $0.30 $(1.87)
=========== =========== =========== ===========
DILUTED EARNINGS
(LOSS) FROM
CONTINUING
OPERATIONS $0.11 $0.72 $0.39 $1.14
DISCONTINUED
OPERATION (0.03) (1.14) (0.09) (1.22)
CUMULATIVE EFFECT
OF ACCOUNTING
CHANGE - - - (1.24)
----------- ----------- ----------- -----------
NET EARNINGS (LOSS)
PER COMMON SHARE -
DILUTED $0.08 $(0.42) $0.30 $(1.32)
=========== =========== =========== ===========
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES 19,194,121 11,954,928 14,580,042 11,900,800
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES AND DILUTIVE
SHARES 19,218,855 14,859,401 14,634,466 14,805,121
STANDARD MOTOR PRODUCTS
CONDENSED CONSOLIDATING BALANCE SHEETS
(Dollars in thousands)
ASSETS
September 30, December 31,
2003 2002
------------- ------------
Cash $16,967 $9,690
Marketable securities - 7,200
Accounts receivable, gross 243,152 122,526
Allowance for doubtful accounts 8,661 4,882
------------- ------------
Accounts receivable, net 234,491 117,644
Inventories 252,065 174,785
Other current assets 20,853 19,041
------------- ------------
Total current assets 524,376 328,360
------------- ------------
Property, plant and equipment, net 114,704 103,822
Goodwill 79,867 16,683
Other assets 40,993 41,893
------------- ------------
Total assets $759,940 $490,758
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable $3,304 $3,369
Current portion of long term debt 3,854 4,108
Accounts payable trade 65,598 35,744
Accrued customer returns 41,187 16,341
Other current liabilities 100,278 51,866
------------- ------------
Total current liabilities 214,221 111,428
------------- ------------
Long-term debt 234,900 169,440
Accrued asbestos liabilities 24,939 25,595
Postretirement & other liabilities 54,510 30,414
------------- ------------
Total liabilities 528,570 336,877
------------- ------------
Total stockholders' equity 231,370 153,881
------------- ------------
Total liabilities and stockholders' equity $759,940 $490,758
============= ============
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