☑ | 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. | Consolidated Financial Statements: | |
3 | ||
4 | ||
5 | ||
6 | ||
7 | ||
Item 2. | ||
Item 3. | ||
Item 4. |
PART II – OTHER INFORMATION | ||
Item | ||
Item 6. | ||
41 |
ITEM 1. | CONSOLIDATED FINANCIAL STATEMENTS |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||
(In thousands, except share and per share data) | 2022 | 2021 | 2022 | 2021 | 2023 | 2022 | ||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||
Net sales | $ | 359,412 | $ | 342,076 | $ | 682,243 | $ | 618,629 | $ | 328,028 | $ | 322,831 | ||||||||||||
Cost of sales | 263,061 | 242,804 | 496,052 | 435,573 | 236,761 | 232,991 | ||||||||||||||||||
Gross profit | 96,351 | 99,272 | 186,191 | 183,056 | 91,267 | 89,840 | ||||||||||||||||||
Selling, general and administrative expenses | 68,468 | 62,347 | 131,352 | 116,807 | 69,633 | 62,884 | ||||||||||||||||||
Restructuring and integration expenses | 3 | 0 | 44 | 0 | 912 | 41 | ||||||||||||||||||
Other income, net | 13 | 0 | 13 | 0 | 24 | — | ||||||||||||||||||
Operating income | 27,893 | 36,925 | 54,808 | 66,249 | 20,746 | 26,915 | ||||||||||||||||||
Other non-operating income, net | 1,927 | 832 | 3,376 | 1,467 | 225 | 1,449 | ||||||||||||||||||
Interest expense | 1,821 | 495 | 2,626 | 704 | 3,862 | 805 | ||||||||||||||||||
Earnings from continuing operations before taxes | 27,999 | 37,262 | 55,558 | 67,012 | ||||||||||||||||||||
Earnings from continuing operations before income taxes | 17,109 | 27,559 | ||||||||||||||||||||||
Provision for income taxes | 7,122 | 9,248 | 14,127 | 16,834 | 4,372 | 7,005 | ||||||||||||||||||
Earnings from continuing operations | 20,877 | 28,014 | 41,431 | 50,178 | 12,737 | 20,554 | ||||||||||||||||||
Loss from discontinued operations, net of income taxes | (1,666 | ) | (853 | ) | (2,782 | ) | (2,017 | ) | (780 | ) | (1,116 | ) | ||||||||||||
Net earnings | 19,211 | 27,161 | 38,649 | 48,161 | 11,957 | 19,438 | ||||||||||||||||||
Net earnings attributable to noncontrolling interest | 85 | 19 | 77 | 19 | ||||||||||||||||||||
Net earnings (loss) attributable to noncontrolling interest | 39 | (8 | ) | |||||||||||||||||||||
Net earnings attributable to SMP (a) | $ | 19,126 | $ | 27,142 | $ | 38,572 | $ | 48,142 | $ | 11,918 | $ | 19,446 | ||||||||||||
Net earnings attributable to SMP | ||||||||||||||||||||||||
Earnings from continuing operations | $ | 20,792 | $ | 27,995 | $ | 41,354 | $ | 50,159 | $ | 12,698 | $ | 20,562 | ||||||||||||
Discontinued operations | (1,666 | ) | (853 | ) | (2,782 | ) | (2,017 | ) | (780 | ) | (1,116 | ) | ||||||||||||
Total | $ | 19,126 | $ | 27,142 | $ | 38,572 | $ | 48,142 | $ | 11,918 | $ | 19,446 | ||||||||||||
Per share data attributable to SMP | ||||||||||||||||||||||||
Net earnings per common share – Basic: | ||||||||||||||||||||||||
Earnings from continuing operations | $ | 0.96 | $ | 1.26 | $ | 1.89 | $ | 2.25 | $ | 0.59 | $ | 0.94 | ||||||||||||
Discontinued operations | (0.08 | ) | (0.04 | ) | (0.13 | ) | (0.09 | ) | (0.04 | ) | (0.06 | ) | ||||||||||||
Net earnings per common share – Basic | $ | 0.88 | $ | 1.22 | $ | 1.76 | $ | 2.16 | $ | 0.55 | $ | 0.88 | ||||||||||||
Net earnings per common share – Diluted: | ||||||||||||||||||||||||
Earnings from continuing operations | $ | 0.93 | $ | 1.23 | $ | 1.85 | $ | 2.21 | $ | 0.57 | $ | 0.91 | ||||||||||||
Discontinued operations | (0.07 | ) | (0.03 | ) | (0.13 | ) | (0.09 | ) | (0.03 | ) | (0.04 | ) | ||||||||||||
Net earnings per common share – Diluted | $ | 0.86 | $ | 1.20 | $ | 1.72 | $ | 2.12 | $ | 0.54 | $ | 0.87 | ||||||||||||
Dividend declared per share | $ | 0.27 | $ | 0.25 | $ | 0.54 | $ | 0.50 | $ | 0.29 | $ | 0.27 | ||||||||||||
Average number of common shares | 21,757,998 | 22,198,545 | 21,867,644 | 22,257,922 | 21,609,618 | 21,978,507 | ||||||||||||||||||
Average number of common shares and dilutive common shares | 22,255,642 | 22,686,384 | 22,372,702 | 22,741,171 | 22,097,750 | 22,477,819 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | 2023 | 2022 | ||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||
Net earnings | $ | 19,211 | $ | 27,161 | $ | 38,649 | $ | 48,161 | $ | 11,957 | $ | 19,438 | ||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||
Foreign currency translation adjustments | (6,528 | ) | 2,477 | (7,166 | ) | 561 | 2,820 | (638 | ) | |||||||||||||||
Derivative instruments | 105 | 0 | 105 | 0 | (1,377 | ) | — | |||||||||||||||||
Pension and postretirement plans | (4 | ) | (4 | ) | (9 | ) | (9 | ) | (3 | ) | (5 | ) | ||||||||||||
Total other comprehensive income, net of tax | (6,427 | ) | 2,473 | (7,070 | ) | 552 | ||||||||||||||||||
Total Comprehensive income | 12,784 | 29,634 | 31,579 | 48,713 | ||||||||||||||||||||
Total other comprehensive income (loss), net of tax | 1,440 | (643 | ) | |||||||||||||||||||||
Total comprehensive income | 13,397 | 18,795 | ||||||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest, net of tax: | ||||||||||||||||||||||||
Net earnings | 85 | 19 | 77 | 19 | ||||||||||||||||||||
Net earnings (loss) | 39 | (8 | ) | |||||||||||||||||||||
Foreign currency translation adjustments | (64 | ) | (22 | ) | (61 | ) | (22 | ) | (29 | ) | 3 | |||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest, net of tax | 21 | (3 | ) | 16 | (3 | ) | 10 | (5 | ) | |||||||||||||||
Comprehensive income attributable to SMP | $ | 12,763 | $ | 29,637 | $ | 31,563 | $ | 48,716 | $ | 13,387 | $ | 18,800 |
(In thousands, except share and per share data) | June 30, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | ||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||
Cash and cash equivalents | $ | 14,186 | $ | 21,755 | $ | 24,196 | $ | 21,150 | ||||||||
Accounts receivable, less allowances for discounts and expected credit losses of $6,012 and $6,170 for 2022 and 2021, respectively | 229,657 | 180,604 | ||||||||||||||
Accounts receivable, less allowances for discounts and expected credit losses of $5,816 and $5,375 in 2023 and 2022, respectively | 210,801 | 167,638 | ||||||||||||||
Inventories | 551,415 | 468,755 | 522,039 | 528,715 | ||||||||||||
Unreturned customer inventories | 21,405 | 22,268 | 20,626 | 19,695 | ||||||||||||
Prepaid expenses and other current assets | 26,198 | 17,823 | 26,192 | 25,241 | ||||||||||||
Total current assets | 842,861 | 711,205 | 803,854 | 762,439 | ||||||||||||
Property, plant and equipment, net of accumulated depreciation of $234,217 and $227,788 for 2022 and 2021, respectively | 104,931 | 102,786 | ||||||||||||||
Property, plant and equipment, net of accumulated depreciation of $244,392 and $239,176 for 2023 and 2022, respectively | 107,123 | 107,148 | ||||||||||||||
Operating lease right-of-use assets | 39,827 | 40,469 | 74,291 | 49,838 | ||||||||||||
Goodwill | 131,125 | 131,652 | 132,289 | 132,087 | ||||||||||||
Other intangibles, net | 101,649 | 106,234 | 98,389 | 100,504 | ||||||||||||
Deferred income taxes | 34,086 | 36,126 | 33,893 | 33,658 | ||||||||||||
Investments in unconsolidated affiliates | 44,885 | 44,087 | 42,719 | 41,745 | ||||||||||||
Other assets | 27,188 | 25,402 | 27,462 | 27,510 | ||||||||||||
Total assets | $ | 1,326,552 | $ | 1,197,961 | $ | 1,320,020 | $ | 1,254,929 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||
Current portion of revolving credit facility | $ | 56,000 | $ | 125,298 | $ | 52,600 | $ | 50,000 | ||||||||
Current portion of term loan and other debt | 7,954 | 3,117 | 5,014 | 5,031 | ||||||||||||
Accounts payable | 140,082 | 137,167 | 94,372 | 89,247 | ||||||||||||
Sundry payables and accrued expenses | 49,710 | 57,182 | 42,041 | 49,990 | ||||||||||||
Accrued customer returns | 55,725 | 42,412 | 42,153 | 37,169 | ||||||||||||
Accrued core liability | 23,117 | 23,663 | 21,319 | 22,952 | ||||||||||||
Accrued rebates | 41,647 | 42,472 | 39,657 | 37,381 | ||||||||||||
Payroll and commissions | 35,985 | 45,058 | 24,268 | 31,361 | ||||||||||||
Total current liabilities | 410,220 | 476,369 | 321,424 | 323,131 | ||||||||||||
Long-term debt | 203,500 | 21 | 215,487 | 184,589 | ||||||||||||
Noncurrent operating lease liabilities | 30,039 | 31,206 | 65,319 | 40,709 | ||||||||||||
Other accrued liabilities | 22,119 | 25,040 | 24,298 | 22,157 | ||||||||||||
Accrued asbestos liabilities | 48,025 | 52,698 | 60,820 | 63,305 | ||||||||||||
Total liabilities | 713,903 | 585,334 | 687,348 | 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 | 47,872 | 47,872 | ||||||||||||
Capital in excess of par value | 109,117 | 105,377 | 106,675 | 105,615 | ||||||||||||
Retained earnings | 559,069 | 532,319 | 569,899 | 564,242 | ||||||||||||
Accumulated other comprehensive income | (15,178 | ) | (8,169 | ) | (11,001 | ) | (12,470 | ) | ||||||||
Treasury stock – at cost (2,458,247 shares and 1,911,792 shares in 2022 and 2021, respectively) | (99,294 | ) | (75,819 | ) | ||||||||||||
Treasury stock – at cost (2,265,530 shares and 2,350,377 shares in 2023 and 2022, respectively) | (91,801 | ) | (95,239 | ) | ||||||||||||
Total SMP stockholders’ equity | 601,586 | 601,580 | 621,644 | 610,020 | ||||||||||||
Noncontrolling interest | 11,063 | 11,047 | 11,028 | 11,018 | ||||||||||||
Total stockholders’ equity | 612,649 | 612,627 | 632,672 | 621,038 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 1,326,552 | $ | 1,197,961 | $ | 1,320,020 | $ | 1,254,929 |
(In thousands) | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||
Net earnings | $ | 38,649 | $ | 48,161 | $ | 11,957 | $ | 19,438 | ||||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||||||||||||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||||||||||||||||
Depreciation and amortization | 13,893 | 13,100 | 7,082 | 6,952 | ||||||||||||
Amortization of deferred financing cost | 164 | 114 | 124 | 67 | ||||||||||||
Increase (decrease) to allowance for expected credit losses | (253 | ) | 321 | |||||||||||||
Increase (decrease) to inventory reserves | 2,959 | (463 | ) | |||||||||||||
Increase to allowance for expected credit losses | 388 | 200 | ||||||||||||||
Increase to inventory reserves | 962 | 1,188 | ||||||||||||||
Equity income from joint ventures | (2,524 | ) | (1,156 | ) | (154 | ) | (939 | ) | ||||||||
Employee stock ownership plan allocation | 1,148 | 1,257 | ||||||||||||||
Employee Stock Ownership Plan allocation | 742 | 574 | ||||||||||||||
Stock-based compensation | 4,465 | 4,381 | 1,532 | 1,980 | ||||||||||||
(Increase) decrease in deferred income taxes | 2,090 | (2,344 | ) | |||||||||||||
Decrease in deferred income taxes | 213 | 188 | ||||||||||||||
Loss on discontinued operations, net of tax | 2,782 | 2,017 | 780 | 1,116 | ||||||||||||
Change in assets and liabilities: | ||||||||||||||||
(Increase) in accounts receivable | (49,659 | ) | (4,715 | ) | ||||||||||||
(Increase) in inventories | (87,744 | ) | (46,682 | ) | ||||||||||||
(Increase) decrease in prepaid expenses and other current assets | (7,102 | ) | 3,220 | |||||||||||||
Increase in accounts receivable | (42,617 | ) | (44,706 | ) | ||||||||||||
(Increase) decrease in inventories | 6,195 | (67,662 | ) | |||||||||||||
Decrease in prepaid expenses and other current assets | 1,165 | 2,171 | ||||||||||||||
Increase in accounts payable | 1,591 | 16,097 | 4,809 | 1,942 | ||||||||||||
(Decrease) in sundry payables and accrued expenses | (5,020 | ) | (6,491 | ) | ||||||||||||
Net change in other assets and liabilities | (10,772 | ) | (3,664 | ) | ||||||||||||
Net cash provided by (used in) operating activities | (95,333 | ) | 23,153 | |||||||||||||
Decrease in sundry payables and accrued expenses | (10,656 | ) | (21,226 | ) | ||||||||||||
Net changes in other assets and liabilities | (2,964 | ) | (5,245 | ) | ||||||||||||
Net cash used in operating activities | (20,442 | ) | (103,962 | ) | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||
Acquisitions of and investments in businesses | 0 | (109,267 | ) | |||||||||||||
Capital expenditures | (13,203 | ) | (11,709 | ) | (4,363 | ) | (6,449 | ) | ||||||||
Other investing activities | 0 | 2 | 13 | — | ||||||||||||
Net cash used in investing activities | (13,203 | ) | (120,974 | ) | (4,350 | ) | (6,449 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||
Borrowings under the term loan | 100,000 | 0 | ||||||||||||||
Repayments of term loan | (1,250 | ) | — | |||||||||||||
Net borrowings under revolving credit facilities | 39,202 | 125,000 | 34,750 | 120,152 | ||||||||||||
Net borrowings of other debt and capital lease obligations | 117 | 2,250 | ||||||||||||||
Net borrowings (repayment) of other debt and lease obligations | (22 | ) | 188 | |||||||||||||
Purchase of treasury stock | (25,605 | ) | (11,096 | ) | — | (6,517 | ) | |||||||||
Payments of debt issuance costs | (2,128 | ) | 0 | |||||||||||||
Increase in overdraft balances | 1,903 | 694 | 125 | 444 | ||||||||||||
Dividends paid | (11,822 | ) | (11,134 | ) | (6,261 | ) | (5,935 | ) | ||||||||
Net cash provided by financing activities | 101,667 | 105,714 | 27,342 | 108,332 | ||||||||||||
Effect of exchange rate changes on cash | (700 | ) | 72 | 496 | 323 | |||||||||||
Net increase (decrease) in cash and cash equivalents | (7,569 | ) | 7,965 | 3,046 | (1,756 | ) | ||||||||||
CASH AND CASH EQUIVALENTS at beginning of period | 21,755 | 19,488 | 21,150 | 21,755 | ||||||||||||
CASH AND CASH EQUIVALENTS at end of period | $ | 14,186 | $ | 27,453 | $ | 24,196 | $ | 19,999 | ||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||||
Cash paid during the period for: | ||||||||||||||||
Interest | $ | 2,219 | $ | 481 | $ | 3,970 | $ | 644 | ||||||||
Income taxes | $ | 18,897 | $ | 12,803 | $ | 3,163 | $ | 3,793 |
(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 March 31, 2022 | $ | 47,872 | $ | 107,606 | $ | 545,830 | $ | (8,815 | ) | $ | (80,622 | ) | $ | 611,871 | $ | 11,042 | $ | 622,913 | ||||||||||||||
Net earnings | 0 | 0 | 19,126 | 0 | 0 | 19,126 | 85 | 19,211 | ||||||||||||||||||||||||
Other comprehensive income, net of tax | 0 | 0 | 0 | (6,363 | ) | 0 | (6,363 | ) | (64 | ) | (6,427 | ) | ||||||||||||||||||||
Cash dividends paid | 0 | 0 | (5,887 | ) | 0 | 0 | (5,887 | ) | 0 | (5,887 | ) | |||||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (19,646 | ) | (19,646 | ) | 0 | (19,646 | ) | |||||||||||||||||||||
Stock-based compensation | 0 | 1,511 | 0 | 0 | 974 | 2,485 | 0 | 2,485 | ||||||||||||||||||||||||
Balance at June 30, 2022 | $ | 47,872 | $ | 109,117 | $ | 559,069 | $ | (15,178 | ) | $ | (99,294 | ) | $ | 601,586 | $ | 11,063 | $ | 612,649 |
(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 | ||||||||||||||
Net earnings (loss) | — | — | 11,918 | — | — | 11,918 | 39 | 11,957 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | 1,469 | — | 1,469 | (29 | ) | 1,440 | |||||||||||||||||||||||
Cash dividends paid | — | — | (6,261 | ) | — | — | (6,261 | ) | — | (6,261 | ) | |||||||||||||||||||||
Stock-based compensation | — | 1,044 | — | — | 488 | 1,532 | — | 1,532 | ||||||||||||||||||||||||
Employee Stock Ownership Plan | — | 16 | — | — | 2,950 | 2,966 | — | 2,966 | ||||||||||||||||||||||||
Balance at March 31, 2023 | $ | 47,872 | $ | 106,675 | $ | 569,899 | $ | (11,001 | ) | $ | (91,801 | ) | $ | 621,644 | $ | 11,028 | $ | 632,672 |
(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 March 31, 2021 | $ | 47,872 | $ | 106,366 | $ | 479,024 | $ | (7,597 | ) | $ | (68,725 | ) | $ | 556,940 | $ | 0 | $ | 556,940 | ||||||||||||||
Noncontrolling interest acquired | 0 | 0 | 0 | 0 | 0 | 0 | 11,504 | 11,504 | ||||||||||||||||||||||||
Net earnings | 0 | 0 | 27,142 | 0 | 0 | 27,142 | 19 | 27,161 | ||||||||||||||||||||||||
Other comprehensive income, net of tax | 0 | 0 | 0 | 2,495 | 0 | 2,495 | (22 | ) | 2,473 | |||||||||||||||||||||||
Cash dividends paid | 0 | 0 | (5,546 | ) | 0 | 0 | (5,546 | ) | 0 | (5,546 | ) | |||||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Stock-based compensation | 0 | 696 | 0 | 0 | 1,889 | 2,585 | 0 | 2,585 | ||||||||||||||||||||||||
Balance at June 30, 2021 | $ | 47,872 | $ | 107,062 | $ | 500,620 | $ | (5,102 | ) | $ | (66,836 | ) | $ | 583,616 | $ | 11,501 | $ | 595,117 |
(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 | 0 | 0 | 38,572 | 0 | 0 | 38,572 | 77 | 38,649 | ||||||||||||||||||||||||
Other comprehensive income, net of tax | 0 | 0 | 0 | (7,009 | ) | 0 | (7,009 | ) | (61 | ) | (7,070 | ) | ||||||||||||||||||||
Cash dividends paid | 0 | 0 | (11,822 | ) | 0 | 0 | (11,822 | ) | 0 | (11,822 | ) | |||||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (26,496 | ) | (26,496 | ) | 0 | (26,496 | ) | |||||||||||||||||||||
Stock-based compensation | 0 | 3,371 | 0 | 0 | 1,094 | 4,465 | 0 | 4,465 | ||||||||||||||||||||||||
Employee Stock Ownership Plan | 0 | 369 | 0 | 0 | 1,927 | 2,296 | 0 | 2,296 | ||||||||||||||||||||||||
Balance at June 30, 2022 | $ | 47,872 | $ | 109,117 | $ | 559,069 | $ | (15,178 | ) | $ | (99,294 | ) | $ | 601,586 | $ | 11,063 | $ | 612,649 |
(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 (loss) | — | — | 19,446 | — | — | 19,446 | (8 | ) | 19,438 | |||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | (646 | ) | — | (646 | ) | 3 | (643 | ) | |||||||||||||||||||||
Cash dividends paid | — | — | (5,935 | ) | — | — | (5,935 | ) | — | (5,935 | ) | |||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | (6,850 | ) | (6,850 | ) | — | (6,850 | ) | |||||||||||||||||||||
Stock-based compensation | — | 1,860 | — | — | 120 | 1,980 | — | 1,980 | ||||||||||||||||||||||||
Employee Stock Ownership Plan | — | 369 | — | — | 1,927 | 2,296 | — | 2,296 | ||||||||||||||||||||||||
Balance at March 31, 2022 | $ | 47,872 | $ | 107,606 | $ | 545,830 | $ | (8,815 | ) | $ | (80,622 | ) | $ | 611,871 | $ | 11,042 | $ | 622,913 |
(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, 2020 | $ | 47,872 | $ | 105,084 | $ | 463,612 | $ | (5,676 | ) | $ | (60,656 | ) | $ | 550,236 | $ | 0 | $ | 550,236 | ||||||||||||||
Noncontrolling interest acquired | 0 | 0 | 0 | 0 | 0 | 0 | 11,504 | 11,504 | ||||||||||||||||||||||||
Net earnings | 0 | 0 | 48,142 | 0 | 0 | 48,142 | 19 | 48,161 | ||||||||||||||||||||||||
Other comprehensive income, net of tax | 0 | 0 | 0 | 574 | 0 | 574 | (22 | ) | 552 | |||||||||||||||||||||||
Cash dividends paid | 0 | 0 | (11,134 | ) | 0 | 0 | (11,134 | ) | 0 | (11,134 | ) | |||||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (11,096 | ) | (11,096 | ) | 0 | (11,096 | ) | |||||||||||||||||||||
Stock-based compensation | 0 | 1,844 | 0 | 0 | 2,537 | 4,381 | 0 | 4,381 | ||||||||||||||||||||||||
Employee Stock Ownership Plan | 0 | 134 | 0 | 0 | 2,379 | 2,513 | 0 | 2,513 | ||||||||||||||||||||||||
Balance at June 30, 2021 | $ | 47,872 | $ | 107,062 | $ | 500,620 | $ | (5,102 | ) | $ | (66,836 | ) | $ | 583,616 | $ | 11,501 | $ | 595,117 |
Purchase price | $ | 16,290 | $ | 3,176 | ||||||||||||
Assets acquired and liabilities assumed: | ||||||||||||||||
Receivables | $ | 2,852 | $ | 790 | ||||||||||||
Inventory | 5,126 | 829 | ||||||||||||||
Other current assets (1) | 1,628 | 1,003 | ||||||||||||||
Property, plant and equipment, net | 1,810 | 63 | ||||||||||||||
Operating lease right-of-use assets | 4,971 | 401 | ||||||||||||||
Intangible assets | 5,471 | 2,395 | ||||||||||||||
Goodwill | 4,827 | 766 | ||||||||||||||
Current liabilities | (4,190 | ) | (1,977 | ) | ||||||||||||
Noncurrent operating lease liabilities | (4,454 | ) | (328 | ) | ||||||||||||
Deferred income taxes | (1,751 | ) | (766 | ) | ||||||||||||
Net assets acquired | $ | 16,290 | $ | 3,176 |
(1) | The other current assets balance includes $ |
Purchase price | $ | 111,711 | ||||||
Assets acquired and liabilities assumed: | ||||||||
Receivables | $ | 9,173 | ||||||
Inventory | 12,460 | |||||||
Other current assets (1) | 5,193 | |||||||
Property, plant and equipment, net | 4,939 | |||||||
Operating lease right-of-use assets | 3,847 | |||||||
Intangible assets | 54,700 | |||||||
Goodwill | 49,250 | |||||||
Current liabilities | (5,072 | ) | ||||||
Noncurrent operating lease liabilities | (3,065 | ) | ||||||
Deferred income taxes | (8,210 | ) | ||||||
Subtotal | 123,215 | |||||||
Fair value of acquired noncontrolling interest | (11,504 | ) | ||||||
Net assets acquired | $ | 111,711 |
Purchase Price | $ | 2,924 | ||||||
Assets acquired and liabilities assumed: | ||||||||
Inventory | $ | 1,032 | ||||||
Machinery and equipment, net | 1,137 | |||||||
Intangible assets | 755 | |||||||
Net assets acquired | $ | 2,924 |
Workforce Reduction | Other Exit Costs | Total | ||||||||||
Exit activity liability at December 31, 2021 | $ | 79 | $ | 0 | $ | 79 | ||||||
Restructuring and integration costs: | ||||||||||||
Amounts provided for during 2022 | 0 | 44 | 44 | |||||||||
Cash payments | (16 | ) | (44 | ) | (60 | ) | ||||||
Reclassification | (29 | ) | 0 | (29 | ) | |||||||
Exit activity liability at June 30, 2022 | $ | 34 | $ | 0 | $ | 34 |
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) | 840 | 72 | 912 | |||||||||
Cash payments | (321 | ) | (48 | ) | (369 | ) | ||||||
Foreign currency exchange rate changes | (27 | ) | — | (27 | ) | |||||||
Exit activity liability at March 31, 2023 | $ | 2,013 | $ | 24 | $ | 2,037 |
(1) | Restructuring and integration expenses incurred during the three months ended March 31, 2023 consist of $0.3 million in our Vehicle Control segment, $0.5 million in our Temperature Control segment and $0.1 million in our Engineered Solutions segment. |
March 31, 2023 | December 31, 2022 | |||||||||||||||
June 30, 2022 | December 31, 2021 | (In thousands) | ||||||||||||||
(In thousands) | ||||||||||||||||
Finished goods | $ | 345,200 | $ | 296,739 | $ | 313,636 | $ | 324,362 | ||||||||
Work in process | 17,248 | 16,010 | 15,403 | 14,099 | ||||||||||||
Raw materials | 188,967 | 156,006 | 193,000 | 190,254 | ||||||||||||
Subtotal | 551,415 | 468,755 | 522,039 | 528,715 | ||||||||||||
Unreturned customer inventories | 21,405 | 22,268 | 20,626 | 19,695 | ||||||||||||
Total inventories | $ | 572,820 | $ | 491,023 | $ | 542,665 | $ | 548,410 |
June 30, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Customer relationships | $ | 156,321 | $ | 157,020 | $ | 159,447 | $ | 158,717 | ||||||||
Patents, developed technology and intellectual property | 14,123 | 14,123 | 14,123 | 14,123 | ||||||||||||
Trademarks and trade names | 8,880 | 8,880 | 8,880 | 8,880 | ||||||||||||
Non-compete agreements | 3,280 | 3,280 | 3,291 | 3,282 | ||||||||||||
Supply agreements | 800 | 800 | 800 | 800 | ||||||||||||
Leaseholds | 160 | 160 | 160 | 160 | ||||||||||||
Total acquired intangible assets | 183,564 | 184,263 | 186,701 | 185,962 | ||||||||||||
Less accumulated amortization (1) | (82,956 | ) | (78,932 | ) | (89,683 | ) | (86,945 | ) | ||||||||
Net acquired intangible assets | $ | 100,608 | $ | 105,331 | $ | 97,018 | $ | 99,017 |
(1) | Applies to all intangible assets, except for trademarks and trade names totaling $2.6 million, which |
Balance Sheet Information | June 30, 2022 | December 31, 2021 | ||||||
Assets | ||||||||
Operating lease right-of-use assets | $ | 39,827 | $ | 40,469 | ||||
Liabilities | ||||||||
Sundry payables and accrued expenses | $ | 11,122 | $ | 10,544 | ||||
Noncurrent operating lease liabilities | 30,039 | 31,206 | ||||||
Total operating lease liabilities | $ | 41,161 | $ | 41,750 | ||||
Weighted Average Remaining Lease Term | ||||||||
Operating leases | 4.9 Years | 5.3 Years | ||||||
Weighted Average Discount Rate | ||||||||
Operating leases | 3.1 | % | 3 | % |
Expense and Cash Flow Information | Three Months Ended June 30, | |||||||
2022 | 2021 | |||||||
Lease Expense | ||||||||
Operating lease expense (a) | $ | 2,711 | $ | 2,441 |
Balance Sheet Information | March 31, 2023 | December 31, 2022 | ||||||||||||||
Assets | ||||||||||||||||
Operating lease right-of-use assets | $ | 74,291 | $ | 49,838 | ||||||||||||
Liabilities | ||||||||||||||||
Sundry payables and accrued expenses | $ | 10,806 | $ | 10,763 | ||||||||||||
Noncurrent operating lease liabilities | 65,319 | 40,709 | ||||||||||||||
Total operating lease liabilities | $ | 76,125 | $ | 51,472 | ||||||||||||
Weighted Average Remaining Lease Term | ||||||||||||||||
Operating leases | 8.5 Years | 7 Years | ||||||||||||||
Weighted Average Discount Rate | ||||||||||||||||
Operating leases | 4.3 | % | 3.7 | % | ||||||||||||
Six Months Ended June 30, | ||||||||||||||||
2022 | 2021 | Three Months Ended | ||||||||||||||
Expense and Cash Flow Information | March 31, | |||||||||||||||
Lease Expense | 2023 | 2022 | ||||||||||||||
Operating lease expense (a) | $ | 5,541 | $ | 4,777 | $ | 3,109 | $ | 2,830 | ||||||||
Supplemental Cash Flow Information | ||||||||||||||||
Cash paid for the amounts included in the measurement of lease liabilities: | ||||||||||||||||
Operating cash flows from operating leases | $ | 5,397 | $ | 4,733 | $ | 2,834 | $ | 2,760 | ||||||||
Right-of-use assets obtained in exchange for new lease obligations: | ||||||||||||||||
Operating leases | $ | 4,458 | $ | 14,077 | ||||||||||||
Operating leases (b) | $ | 29,092 | $ | 3,866 |
(a) | Excludes expenses of approximately $0.7 million and |
(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 during the three months ended March 31, 2023. |
2022 | $ | 5,784 | ||
2023 | 10,788 | |||
2024 | 8,316 | |||
2025 | 6,588 | |||
2026 | 5,780 | |||
Thereafter | 6,851 | |||
Total lease payments | $ | 44,107 | ||
Less: Interest | (2,946 | ) | ||
Present value of lease liabilities | $ | 41,161 |
2023 | $ | 8,158 | ||
2024 | 12,383 | |||
2025 | 10,627 | |||
2026 | 9,517 | |||
2027 | 8,740 | |||
Thereafter | 44,780 | |||
Total lease payments | $ | 94,205 | ||
Less: Interest | (18,080 | ) | ||
Present value of lease liabilities | $ | 76,125 |
June 30, 2022 | December 31, 2021 | |||||||
(In thousands) | ||||||||
Credit facility – term loan due 2027 | $ | 100,000 | $ | 0 | ||||
Credit facility – revolver due 2027 | 164,500 | 0 | ||||||
Senior secured facility – revolver due 2023 | 0 | 125,298 | ||||||
Other (1) | 2,954 | 3,138 | ||||||
Total debt | $ | 267,454 | $ | 128,436 | ||||
Current maturities of debt | $ | 63,954 | $ | 128,415 | ||||
Long-term debt | 203,500 | 21 | ||||||
Total debt | $ | 267,454 | $ | 128,436 |
March 31, 2023 | December 31, 2022 | |||||||
(In thousands) | ||||||||
Credit facility – term loan due 2027 | $ | 96,250 | $ | 97,500 | ||||
Credit facility – revolver due 2027 | 176,750 | 142,000 | ||||||
Other | 101 | 120 | ||||||
Total debt | $ | 273,101 | $ | 239,620 | ||||
Current maturities of debt | $ | 57,614 | $ | 55,031 | ||||
Long-term debt | 215,487 | 184,589 | ||||||
Total debt | $ | 273,101 | $ | 239,620 |
Revolving Credit Facility | Term Loan Facility | Polish Overdraft Facility and Other Debt | Total | Revolving Credit Facility | Term Loan Facility | Polish Overdraft Facility and Other Debt | Total | |||||||||||||||||||||||||
Remainder of 2022 | $ | 0 | $ | 2,500 | $ | 2,954 | $ | 5,454 | ||||||||||||||||||||||||
2023 | 0 | 5,000 | 0 | 5,000 | ||||||||||||||||||||||||||||
Remainder of 2023 | $ | — | $ | 3,750 | $ | 14 | $ | 3,764 | ||||||||||||||||||||||||
2024 | 0 | 5,000 | 0 | 5,000 | — | 5,000 | 87 | 5,087 | ||||||||||||||||||||||||
2025 | 0 | 5,000 | 0 | 5,000 | — | 5,000 | — | 5,000 | ||||||||||||||||||||||||
2026 | 0 | 7,500 | 0 | 7,500 | — | 7,500 | — | 7,500 | ||||||||||||||||||||||||
2027 | 164,500 | 75,000 | 0 | 239,500 | 176,750 | 75,000 | — | 251,750 | ||||||||||||||||||||||||
Total | $ | 164,500 | $ | 100,000 | $ | 2,954 | $ | 267,454 | $ | 176,750 | $ | 96,250 | $ | 101 | $ | 273,101 | ||||||||||||||||
Less: current maturities | (56,000 | ) | (5,000 | ) | (2,954 | ) | (63,954 | ) | (52,600 | ) | (5,000 | ) | (14 | ) | (57,614 | ) | ||||||||||||||||
Long-term debt | $ | 108,500 | $ | 95,000 | $ | 0 | $ | 203,500 | $ | 124,150 | $ | 91,250 | $ | 87 | $ | 215,487 |
(In thousands) | ||||
Remainder of 2022 | $ | 257 | ||
2023 | 492 | |||
2024 | 479 | |||
2025 | 471 | |||
2026 | 465 | |||
2027 | 191 | |||
Total amortization | $ | 2,355 |
Three Months Ended June 30, 2022 | Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||
Foreign Currency Translation | Unrecognized Postretirement Benefit Costs (Credit) | Unrealized derivative gains (losses) | Total | Foreign Currency Translation | Unrecognized Postretirement Benefit Costs (Credit) | Unrealized derivative gains (losses) | Total | ||||||||||||||||||||||||||
Balance at March 31, 2022 attributable to SMP | $ | (8,862 | ) | $ | 47 | $ | 0 | $ | (8,815 | ) | |||||||||||||||||||||||
Balance at December 31, 2022 attributable to SMP | $ | (16,330 | ) | $ | 37 | $ | 3,823 | $ | (12,470 | ) | |||||||||||||||||||||||
Other comprehensive income before reclassifications | (6,464 | ) | 0 | 4 | (1) | (6,460 | ) | 2,849 | — | (1,039 | ) | (1) | 1,810 | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 0 | (4 | ) | 101 | 97 | — | (3 | ) | (338 | ) | (341 | ) | |||||||||||||||||||||
Other comprehensive income, net | (6,464 | ) | (4 | ) | 105 | (6,363 | ) | 2,849 | (3 | ) | (1,377 | ) | 1,469 | ||||||||||||||||||||
Balance at June 30, 2022 attributable to SMP | $ | (15,326 | ) | $ | 43 | $ | 105 | $ | (15,178 | ) | |||||||||||||||||||||||
Balance at March 31, 2023 attributable to SMP | $ | (13,481 | ) | $ | 34 | $ | 2,446 | $ | (11,001 | ) |
Six Months Ended June 30, 2022 | ||||||||||||||||
Foreign Currency Translation | Unrecognized Postretirement Benefit Costs (Credit) | Unrealized derivative gains (losses) | Total | |||||||||||||
Balance at December 31, 2021 attributable to SMP | $ | (8,221 | ) | $ | 52 | $ | 0 | $ | (8,169 | ) | ||||||
Other comprehensive income before reclassifications | (7,105 | ) | 0 | 4 | (1) | (7,101 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income | 0 | (9 | ) | 101 | 92 | |||||||||||
Other comprehensive income, net | (7,105 | ) | (9 | ) | 105 | (7,009 | ) | |||||||||
Balance at June 30, 2022 attributable to SMP | $ | (15,326 | ) | $ | 43 | $ | 105 | $ | (15,178 | ) |
(1) | Consists of the unrecognized |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended | ||||||||||
Details About Accumulated Other Comprehensive Income Components | 2022 | 2022 | March 31, 2023 | |||||||||
Derivative cash flow hedge: | ||||||||||||
Unrecognized gain (loss) (1) | $ | 136 | $ | 136 | $ | (456 | ) | |||||
Postretirement Benefit Plans: | ||||||||||||
Unrecognized gain (loss) (2) | (6 | ) | (13 | ) | (6 | ) | ||||||
Total before income tax | 130 | 123 | (462 | ) | ||||||||
Income tax expense | 33 | 31 | ||||||||||
Income tax expense (benefit) | (121 | ) | ||||||||||
Total reclassifications attributable to SMP | $ | 97 | $ | 92 | $ | (341 | ) |
(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 | Shares | Weighted Average Grant Date Fair Value Per Share | |||||||||||||
Balance at December 31, 2021 | 807,019 | $ | 34.92 | |||||||||||||
Balance at December 31, 2022 | 880,829 | $ | 31.79 | |||||||||||||
Granted | 8,125 | 33.81 | — | — | ||||||||||||
Vested | (13,300 | ) | 39.80 | (12,047 | ) | 32.37 | ||||||||||
Forfeited | (5,500 | ) | 42.24 | (1,000 | ) | 40.12 | ||||||||||
Balance at June 30, 2022 | 796,344 | $ | 34.78 | |||||||||||||
Balance at March 31, 2023 | 867,782 | $ | 31.81 |
June 30, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||
Fair Value Hierarchy | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value Hierarchy | Fair Value | Carrying Amount | Fair Value | Carrying Amount | |||||||||||||||||||||||||
Cash and cash equivalents | LEVEL 1 | $ | 14,186 | $ | 14,186 | $ | 21,755 | $ | 21,755 | LEVEL 1 | $ | 24,196 | $ | 24,196 | $ | 21,150 | $ | 21,150 | ||||||||||||||||
Deferred compensation | LEVEL 1 | 20,217 | 20,217 | 23,623 | 23,623 | LEVEL 1 | 22,410 | 22,410 | 20,190 | 20,190 | ||||||||||||||||||||||||
Short term borrowings | LEVEL 1 | 63,954 | 63,954 | 128,415 | 128,415 | LEVEL 1 | 57,614 | 57,614 | 55,031 | 55,031 | ||||||||||||||||||||||||
Long-term debt | LEVEL 1 | 203,500 | 203,500 | 21 | 21 | LEVEL 1 | 215,487 | 215,487 | 184,589 | 184,589 | ||||||||||||||||||||||||
Cash flow interest rate swap | LEVEL 2 | 137 | 137 | 0 | 0 | LEVEL 2 | 3,311 | 3,311 | 5,174 | 5,174 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | |||||||||||||||||||
Net Earnings Attributable to SMP - | ||||||||||||||||||||||||
Net Earnings Attributable to SMP - | ||||||||||||||||||||||||
Earnings from continuing operations | $ | 20,792 | $ | 27,995 | $ | 41,354 | $ | 50,159 | $ | 12,698 | $ | 20,562 | ||||||||||||
Loss from discontinued operations | (1,666 | ) | (853 | ) | (2,782 | ) | (2,017 | ) | (780 | ) | (1,116 | ) | ||||||||||||
Net earnings attributable to SMP | $ | 19,126 | $ | 27,142 | $ | 38,572 | $ | 48,142 | $ | 11,918 | $ | 19,446 | ||||||||||||
Basic Net Earnings Per Common Share Attributable to SMP - | ||||||||||||||||||||||||
Earnings from continuing operations per common share | $ | 0.96 | $ | 1.26 | $ | 1.89 | $ | 2.25 | $ | 0.59 | $ | 0.94 | ||||||||||||
Loss from discontinued operations per common share | (0.08 | ) | (0.04 | ) | (0.13 | ) | (0.09 | ) | (0.04 | ) | (0.06 | ) | ||||||||||||
Net earnings per common share attributable to SMP | $ | 0.88 | $ | 1.22 | $ | 1.76 | $ | 2.16 | $ | 0.55 | $ | 0.88 | ||||||||||||
Weighted average common shares outstanding | 21,758 | 22,199 | 21,868 | 22,258 | 21,610 | 21,979 | ||||||||||||||||||
Diluted Net Earnings Per Common Share Attributable to SMP - | ||||||||||||||||||||||||
Earnings from continuing operations per common share | $ | 0.93 | $ | 1.23 | $ | 1.85 | $ | 2.21 | $ | 0.57 | $ | 0.91 | ||||||||||||
Loss from discontinued operations per common share | (0.07 | ) | (0.03 | ) | (0.13 | ) | (0.09 | ) | (0.03 | ) | (0.04 | ) | ||||||||||||
Net earnings per common share attributable to SMP | $ | 0.86 | $ | 1.20 | $ | 1.72 | $ | 2.12 | $ | 0.54 | $ | 0.87 | ||||||||||||
Weighted average common shares outstanding | 21,758 | 22,199 | 21,868 | 22,258 | 21,610 | 21,979 | ||||||||||||||||||
Plus incremental shares from assumed conversions: | ||||||||||||||||||||||||
Dilutive effect of restricted stock and performance-based stock | 498 | 487 | 505 | 483 | 488 | 499 | ||||||||||||||||||
Weighted average common shares outstanding – Diluted | 22,256 | 22,686 | 22,373 | 22,741 | 22,098 | 22,478 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Restricted and performance-based shares | 268 | 239 | 262 | 258 |
Three Months Ended March 31, | ||||||||
2023 | 2022 | |||||||
Restricted and performance-based shares | 298 | 259 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net Sales (a) | ||||||||||||||||
Engine Management | $ | 241,873 | $ | 233,216 | $ | 481,130 | $ | 445,234 | ||||||||
Temperature Control | 114,432 | 106,471 | 195,753 | 168,944 | ||||||||||||
All Other | 3,107 | 2,389 | 5,360 | 4,451 | ||||||||||||
Consolidated | $ | 359,412 | $ | 342,076 | $ | 682,243 | $ | 618,629 | ||||||||
Intersegment Revenue (a) | ||||||||||||||||
Engine Management | $ | 5,007 | $ | 5,185 | $ | 10,796 | $ | 10,544 | ||||||||
Temperature Control | 2,831 | 3,125 | 6,047 | 4,972 | ||||||||||||
All Other | (7,838 | ) | (8,310 | ) | (16,843 | ) | (15,516 | ) | ||||||||
Consolidated | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Operating Income | ||||||||||||||||
Engine Management | $ | 21,100 | $ | 30,384 | $ | 47,816 | $ | 61,498 | ||||||||
Temperature Control | 12,265 | 13,229 | 17,483 | 16,821 | ||||||||||||
All Other | (5,472 | ) | (6,688 | ) | (10,491 | ) | (12,070 | ) | ||||||||
Consolidated | $ | 27,893 | $ | 36,925 | $ | 54,808 | $ | 66,249 |
Three Months Ended March 31, | ||||||||
2023 | 2022 | |||||||
Net Sales (a) | ||||||||
Vehicle Control | $ | 184,577 | $ | 177,264 | ||||
Temperature Control | 72,406 | 73,058 | ||||||
Engineered Solutions | 71,045 | 72,509 | ||||||
Other | — | — | ||||||
Consolidated | $ | 328,028 | $ | 322,831 | ||||
Operating Income (Loss) | ||||||||
Vehicle Control | $ | 17,375 | $ | 20,344 | ||||
Temperature Control | 2,084 | 4,162 | ||||||
Engineered Solutions | 5,647 | 6,288 | ||||||
Other | (4,360 | ) | (3,879 | ) | ||||
Consolidated | $ | 20,746 | $ | 26,915 |
(a) |
Three months ended June 30, 2022 (a) | Engine Management | Temperature Control | Other (b) | Total | ||||||||||||
Geographic Area: | ||||||||||||||||
United States | $ | 214,444 | $ | 108,154 | $ | 0 | $ | 322,598 | ||||||||
Canada | 6,257 | 5,873 | 3,107 | 15,237 | ||||||||||||
Europe | 10,378 | 69 | 0 | 10,447 | ||||||||||||
Mexico | 6,666 | 105 | 0 | 6,771 | ||||||||||||
Asia | 2,634 | 30 | 0 | 2,664 | ||||||||||||
Other foreign | 1,494 | 201 | 0 | 1,695 | ||||||||||||
Total | $ | 241,873 | $ | 114,432 | $ | 3,107 | $ | 359,412 | ||||||||
Major Product Group: | ||||||||||||||||
Ignition, emission control, fuel and safety related system products | $ | 202,823 | $ | 0 | $ | 2,387 | $ | 205,210 | ||||||||
Wire and cable | 39,050 | 0 | 52 | 39,102 | ||||||||||||
Compressors | 0 | 72,063 | 243 | 72,306 | ||||||||||||
Other climate control parts | 0 | 42,369 | 425 | 42,794 | ||||||||||||
Total | $ | 241,873 | $ | 114,432 | $ | 3,107 | $ | 359,412 | ||||||||
Major Sales Channel: | ||||||||||||||||
Aftermarket | $ | 173,361 | $ | 103,652 | $ | 3,107 | $ | 280,120 | ||||||||
OE/OES | 59,984 | 10,094 | 0 | 70,078 | ||||||||||||
Export | 8,528 | 686 | 0 | 9,214 | ||||||||||||
Total | $ | 241,873 | $ | 114,432 | $ | 3,107 | $ | 359,412 |
Three months ended June 30, 2021 (a) | Engine Management | Temperature Control | Other (b) | Total | ||||||||||||
Geographic Area: | ||||||||||||||||
United States | $ | 202,274 | $ | 101,241 | $ | 0 | $ | 303,515 | ||||||||
Canada | 7,433 | 4,632 | 2,389 | 14,454 | ||||||||||||
Europe | 5,252 | 161 | 0 | 5,413 | ||||||||||||
Mexico | 6,460 | 115 | 0 | 6,575 | ||||||||||||
Asia | 9,447 | 68 | 0 | 9,515 | ||||||||||||
Other foreign | 2,350 | 254 | 0 | 2,604 | ||||||||||||
Total | $ | 233,216 | $ | 106,471 | $ | 2,389 | $ | 342,076 |
Major Product Group: | ||||||||||||||||
Ignition, emission control, fuel and safety related system products | $ | 192,486 | $ | 0 | $ | 1,832 | $ | 194,318 | ||||||||
Wire and cable | 40,730 | 0 | (142 | ) | 40,588 | |||||||||||
Compressors | 0 | 69,577 | 386 | 69,963 | ||||||||||||
Other climate control parts | 0 | 36,894 | 313 | 37,207 | ||||||||||||
Total | $ | 233,216 | $ | 106,471 | $ | 2,389 | $ | 342,076 | ||||||||
Major Sales Channel: | ||||||||||||||||
Aftermarket | $ | 172,676 | $ | 97,763 | $ | 2,389 | $ | 272,828 | ||||||||
OE/OES | 53,776 | 8,104 | 0 | 61,880 | ||||||||||||
Export | 6,764 | 604 | 0 | 7,368 | ||||||||||||
Total | $ | 233,216 | $ | 106,471 | $ | 2,389 | $ | 342,076 |
Six months ended June 30, 2022 (a) | Engine Management | Temperature Control | Other (b) | Total | ||||||||||||
Geographic Area: | ||||||||||||||||
United States | $ | 416,267 | $ | 183,603 | $ | 0 | $ | 599,870 | ||||||||
Canada | 14,397 | 11,189 | 5,360 | 30,946 | ||||||||||||
Europe | 18,085 | 114 | 0 | 18,199 | ||||||||||||
Mexico | 15,007 | 189 | 0 | 15,196 | ||||||||||||
Asia | 14,126 | 192 | 0 | 14,318 | ||||||||||||
Other foreign | 3,248 | 466 | 0 | 3,714 | ||||||||||||
Total | $ | 481,130 | $ | 195,753 | $ | 5,360 | $ | 682,243 | ||||||||
Major Product Group: | ||||||||||||||||
Ignition, emission control, fuel and safety related system products | $ | 403,177 | $ | 0 | $ | 4,707 | $ | 407,884 | ||||||||
Wire and cable | 77,953 | 0 | (31 | ) | 77,922 | |||||||||||
Compressors | 0 | 115,340 | 192 | 115,532 | ||||||||||||
Other climate control parts | 0 | 80,413 | 492 | 80,905 | ||||||||||||
Total | $ | 481,130 | $ | 195,753 | $ | 5,360 | $ | 682,243 | ||||||||
Major Sales Channel: | ||||||||||||||||
Aftermarket | $ | 338,486 | $ | 175,931 | $ | 5,360 | $ | 519,777 | ||||||||
OE/OES | 126,541 | 18,588 | 0 | 145,129 | ||||||||||||
Export | 16,103 | 1,234 | 0 | 17,337 | ||||||||||||
Total | $ | 481,130 | $ | 195,753 | $ | 5,360 | $ | 682,243 |
Six months ended June 30, 2021 (a) | Engine Management | Temperature Control | Other (b) | Total | ||||||||||||
Geographic Area: | ||||||||||||||||
United States | $ | 383,375 | $ | 159,977 | $ | 0 | $ | 543,352 | ||||||||
Canada | 16,007 | 7,958 | 4,451 | 28,416 | ||||||||||||
Europe | 10,401 | 217 | 0 | 10,618 | ||||||||||||
Mexico | 12,607 | 180 | 0 | 12,787 | ||||||||||||
Asia | 19,082 | 144 | 0 | 19,226 | ||||||||||||
Other foreign | 3,762 | 468 | 0 | 4,230 | ||||||||||||
Total | $ | 445,234 | $ | 168,944 | $ | 4,451 | $ | 618,629 |
Major Product Group: | ||||||||||||||||
Ignition, emission control, fuel and safety related system products | $ | 366,152 | $ | 0 | $ | 3,501 | $ | 369,653 | ||||||||
Wire and cable | 79,082 | 0 | (135 | ) | 78,947 | |||||||||||
Compressors | 0 | 102,951 | 404 | 103,355 | ||||||||||||
Other climate control parts | 0 | 65,993 | 681 | 66,674 | ||||||||||||
Total | $ | 445,234 | $ | 168,944 | $ | 4,451 | $ | 618,629 | ||||||||
Major Sales Channel: | ||||||||||||||||
Aftermarket | $ | 337,309 | $ | 153,448 | $ | 4,451 | $ | 495,208 | ||||||||
OE/OES | 94,821 | 14,484 | 0 | 109,305 | ||||||||||||
Export | 13,104 | 1,012 | 0 | 14,116 | ||||||||||||
Total | $ | 445,234 | $ | 168,944 | $ | 4,451 | $ | 618,629 |
Three Months Ended March 31, | ||||||||
2023 | 2022 | |||||||
Vehicle Control | ||||||||
Engine Management (Ignition, Emissions and Fuel Delivery) | $ | 116,083 | $ | 109,149 | ||||
Electrical and Safety | 51,804 | 52,257 | ||||||
Wire Sets and Other | 16,690 | 15,858 | ||||||
Total Vehicle Control | 184,577 | 177,264 | ||||||
Temperature Control | ||||||||
AC System Components | 45,752 | 47,374 | ||||||
Other Thermal Components | 26,654 | 25,684 | ||||||
Total Temperature Control | 72,406 | 73,058 | ||||||
Engineered Solutions | ||||||||
Commercial Vehicle | 19,857 | 21,451 | ||||||
Construction/Agriculture | 12,795 | 10,984 | ||||||
Light Vehicle | 22,966 | 26,075 | ||||||
All Other | 15,427 | 13,999 | ||||||
Total Engineered Solutions | 71,045 | 72,509 | ||||||
Other | — | — | ||||||
Total | $ | 328,028 | $ | 322,831 |
Three months ended March 31, 2023 | Vehicle Control | Temperature Control | Engineered Solutions | Other | Total | |||||||||||||||
Geographic Area: | ||||||||||||||||||||
United States | $ | 166,412 | $ | 69,571 | $ | 44,206 | $ | — | $ | 280,189 | ||||||||||
Canada | 8,330 | 2,755 | 5,238 | — | 16,323 | |||||||||||||||
Europe | 198 | — | 15,084 | — | 15,282 | |||||||||||||||
Mexico | 8,587 | — | 1,768 | — | 10,355 | |||||||||||||||
Asia | 62 | 20 | 4,054 | — | 4,136 | |||||||||||||||
Other foreign | 988 | 60 | 695 | — | 1,743 | |||||||||||||||
Total | $ | 184,577 | $ | 72,406 | $ | 71,045 | $ | — | $ | 328,028 |
Three months ended March 31, 2022 | Vehicle Control | Temperature Control | Engineered Solutions | Other | Total | |||||||||||||||
Geographic Area: | ||||||||||||||||||||
United States | $ | 161,071 | $ | 69,312 | $ | 46,889 | $ | — | $ | 277,272 | ||||||||||
Canada | 8,708 | 3,499 | 3,502 | — | 15,709 | |||||||||||||||
Europe | 192 | 15 | 11,330 | — | 11,537 | |||||||||||||||
Mexico | 6,083 | 84 | 1,624 | — | 7,791 | |||||||||||||||
Asia | 80 | 22 | 8,401 | — | 8,503 | |||||||||||||||
Other foreign | 1,130 | 126 | 763 | — | 2,019 | |||||||||||||||
Total | $ | 177,264 | $ | 73,058 | $ | 72,509 | $ | — | $ | 322,831 |
Three Months Ended | Six Months Ended | Three Months Ended March 31, | ||||||||||||||||||||||
June 30, | June 30, | 2023 | 2022 | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||
Balance, beginning of period | $ | 20,711 | $ | 16,948 | $ | 17,463 | $ | 17,663 | $ | 19,667 | $ | 17,463 | ||||||||||||
Liabilities accrued for current year sales | 30,295 | 25,162 | 52,921 | 45,339 | 25,793 | 22,626 | ||||||||||||||||||
Settlements of warranty claims | (27,240 | ) | (23,897 | ) | (46,618 | ) | (44,789 | ) | (24,860 | ) | (19,378 | ) | ||||||||||||
Balance, end of period | $ | 23,766 | $ | 18,213 | $ | 23,766 | $ | 18,213 | $ | 20,600 | $ | 20,711 |
ITEM 2. |
Operating Segments as of 2022 | Operating Segments in 2023 | |||
Engine Management: | Vehicle Control (Aftermarket): | |||
Engine Management (Ignition, | ||||
Ignition, Emissions, Fuel & Safety | 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 June 30, | Three Months Ended | |||||||||||||||
March 31, | ||||||||||||||||
(In thousands, except per share data) | 2022 | 2021 | 2023 | 2022 | ||||||||||||
Net sales | $ | 359,412 | $ | 342,076 | $ | 328,028 | $ | 322,831 | ||||||||
Gross profit | 96,351 | 99,272 | 91,267 | 89,840 | ||||||||||||
Gross profit % | 26.8 | % | 29 | % | 27.8 | % | 27.8 | % | ||||||||
Operating income | 27,893 | 36,925 | 20,746 | 26,915 | ||||||||||||
Operating income % | 7.8 | % | 10.8 | % | 6.3 | % | 8.3 | % | ||||||||
Earnings from continuing operations before income taxes | 27,999 | 37,262 | 17,109 | 27,559 | ||||||||||||
Provision for income taxes | 7,122 | 9,248 | 4,372 | 7,005 | ||||||||||||
Earnings from continuing operations | 20,877 | 28,014 | 12,737 | 20,554 | ||||||||||||
Loss from discontinued operations, net of income taxes | (1,666 | ) | (853 | ) | (780 | ) | (1,116 | ) | ||||||||
Net earnings | 19,211 | 27,161 | 11,957 | 19,438 | ||||||||||||
Net earnings (loss) attributable to noncontrolling interest | 85 | 19 | 39 | (8 | ) | |||||||||||
Net earnings attributable to SMP | 19,126 | 27,142 | 11,918 | 19,446 | ||||||||||||
Per share data attributable to SMP – Diluted: | ||||||||||||||||
Earnings from continuing operations | $ | 0.93 | $ | 1.23 | $ | 0.57 | $ | 0.91 | ||||||||
Discontinued operations | (0.07 | ) | (0.03 | ) | (0.03 | ) | (0.04 | ) | ||||||||
Net earnings per common share | $ | 0.86 | $ | 1.20 | $ | 0.54 | $ | 0.87 |
Three Months Ended June 30, | ||||||||
2022 | 2021 | |||||||
Engine Management: | ||||||||
Ignition, Emission Control, Fuel and Safety Related System Products | $ | 202,823 | $ | 192,486 | ||||
Wire and Cable | 39,050 | 40,730 | ||||||
Total Engine Management | 241,873 | 233,216 | ||||||
Temperature Control: | ||||||||
Compressors | 72,063 | 69,577 | ||||||
Other Climate Control Parts | 42,369 | 36,894 | ||||||
Total Temperature Control | 114,432 | 106,471 | ||||||
All Other | 3,107 | 2,389 | ||||||
Total | $ | 359,412 | $ | 342,076 |
Three Months Ended | ||||||||
March 31, | ||||||||
2023 | 2022 | |||||||
Vehicle Control | ||||||||
Engine Management (Ignition, Emissions and Fuel Delivery) | $ | 116,083 | $ | 109,149 | ||||
Electrical and Safety | 51,804 | 52,257 | ||||||
Wire Sets and Other | 16,690 | 15,858 | ||||||
Total Vehicle Control | 184,577 | 177,264 | ||||||
Temperature Control | ||||||||
AC System Components | 45,752 | 47,374 | ||||||
Other Thermal Components | 26,654 | 25,684 | ||||||
Total Temperature Control | 72,406 | 73,058 | ||||||
Engineered Solutions | ||||||||
Commercial Vehicle | 19,857 | 21,451 | ||||||
Construction/Agriculture | 12,795 | 10,984 | ||||||
Light Vehicle | 22,966 | 26,075 | ||||||
All Other | 15,427 | 13,999 | ||||||
Total Engineered Solutions | 71,045 | 72,509 | ||||||
Other | — | — | ||||||
Total | $ | 328,028 | $ | 322,831 |
Three Months Ended June 30, | Engine Management | Temperature Control | Other | Total | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Vehicle Control | Temperature Control | Engineered Solutions | Other | Total | |||||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||||||
Net sales | $ | 184,577 | $ | 72,406 | $ | 71,045 | $ | — | $ | 328,028 | ||||||||||||||||||||||||||
Gross margins | 58,472 | 19,155 | 13,640 | — | 91,267 | |||||||||||||||||||||||||||||||
Gross margin percentage | 31.7 | % | 26.5 | % | 19.2 | % | — | 27.8 | % | |||||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||||||
Net sales | $ | 241,873 | $ | 114,432 | $ | 3,107 | $ | 359,412 | $ | 177,264 | $ | 73,058 | $ | 72,509 | $ | — | $ | 322,831 | ||||||||||||||||||
Gross margins | 62,294 | 30,564 | 3,493 | 96,351 | 55,424 | 19,488 | 14,928 | — | 89,840 | |||||||||||||||||||||||||||
Gross margin percentage | 25.8 | % | 26.7 | % | — | 26.8 | % | 31.3 | % | 26.7 | % | 20.6 | % | — | 27.8 | % | ||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||||||
Net sales | $ | 233,216 | $ | 106,471 | $ | 2,389 | $ | 342,076 | ||||||||||||||||||||||||||||
Gross margins | 67,447 | 28,658 | 3,167 | 99,272 | ||||||||||||||||||||||||||||||||
Gross margin percentage | 28.9 | % | 26.9 | % | — | 29 | % |
Six Months Ended June 30, | ||||||||
2022 | 2021 | |||||||
Engine Management: | ||||||||
Ignition, Emission Control, Fuel and Safety Related System Products | $ | 403,177 | $ | 366,152 | ||||
Wire and Cable | 77,953 | 79,082 | ||||||
Total Engine Management | 481,130 | 445,234 | ||||||
Temperature Control: | ||||||||
Compressors | 115,340 | 102,951 | ||||||
Other Climate Control Parts | 80,413 | 65,993 | ||||||
Total Temperature Control | 195,753 | 168,944 | ||||||
All Other | 5,360 | 4,451 | ||||||
Total | $ | 682,243 | $ | 618,629 |
Six Months Ended June 30, | Engine Management | Temperature Control | Other | Total | ||||||||||||
2022 | ||||||||||||||||
Net sales | $ | 481,130 | $ | 195,753 | $ | 5,360 | $ | 682,243 | ||||||||
Gross margins | 127,829 | 50,550 | 7,812 | 186,191 | ||||||||||||
Gross margin percentage | 26.6 | % | 25.8 | % | — | 27.3 | % | |||||||||
2021 | ||||||||||||||||
Net sales | $ | 445,234 | $ | 168,944 | $ | 4,451 | $ | 618,629 | ||||||||
Gross margins | 132,517 | 44,653 | 5,886 | 183,056 | ||||||||||||
Gross margin percentage | 29.8 | % | 26.4 | % | — | 29.6 | % |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
(a) |
(b) |
ITEM 1. | LEGAL PROCEEDINGS |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number (or Approximate Dollar Value) of Shares that may yet be Purchased Under the Plans or Programs (2) | ||||||||||||
April 1 – 30, 2022 | 96,028 | $ | 42.72 | 96,028 | $ | 18,703,548 | ||||||||||
May 1 – 31, 2022 | 104,400 | 39.59 | 104,400 | 14,570,753 | ||||||||||||
June 1 – 30, 2022 | 271,030 | 42.10 | 271,030 | 3,160,443 | ||||||||||||
Total | 471,458 | $ | 41.67 | 471,458 | $ | 3,160,443 |
In July 2022, our Board of Directors authorized the purchase of up to an additional $30 million of our common stock under a new stock repurchase program. Stock will be purchased from time to time in the open market, or through private transactions, as market conditions warrant. |
ITEM 6. | EXHIBITS |
Exhibit | |
Number | |
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). |
** | In accordance with Regulation S-T, the XBRL-related information in Exhibit 101 to the Original Filing shall be deemed to be “furnished” and not “filed.” |
STANDARD MOTOR PRODUCTS, INC. | ||
(Registrant) | ||
Date: | /s/ Nathan R. Iles | |
Nathan R. Iles | ||
Chief Financial Officer | ||
(Principal Financial and | ||
Accounting Officer) |