- Fourth quarter net sales of $343
million up 18.1%, and up 5.8% excluding Nissens
- Acquisition of Nissens closed in November, contributed
$35.7 million of sales in the
quarter
- Net sales for the full year of $1.46
billion, up 7.8%, and up 5.1% excluding Nissens
- Full year adjusted EBITDA of 9.6%
- Adjusted diluted earnings per share of $0.47 in the quarter and $3.17 for the full year, up 27.0% and 8.6%
respectively
NEW
YORK, Feb. 27, 2025 /PRNewswire/ -- Standard
Motor Products, Inc. (NYSE: SMP), a leading automotive parts
manufacturer and distributor, reported today its consolidated
financial results for the three and twelve months ended
December 31, 2024.
Net sales for the fourth quarter of 2024 were $343.4 million, compared to consolidated net
sales of $290.8 million during the
same quarter in 2023. Loss from continuing operations for the
fourth quarter of 2024 was $0.8 million or $0.04 per diluted share, compared to earnings of
$7.2 million or $0.32 per diluted share in the fourth quarter of
2023. Excluding non-operational gains and losses identified on the
attached reconciliation of GAAP and non-GAAP measures, earnings
from continuing operations for the fourth quarter of 2024 were
$10.5 million or $0.47 per diluted share, compared to $8.2 million or $0.37 per diluted share in the fourth quarter of
2023.
Consolidated net sales for the twelve months ended December 31, 2024, were $1.46 billion, compared to consolidated net sales
of $1.36 billion during the
comparable period in 2023. Earnings from continuing
operations for the twelve months ended December 31, 2024, were $53.6 million or $2.41 per diluted share, compared to $63.1 million or $2.85 per diluted share in the comparable period
of 2023. Excluding non-operational gains and losses
identified on the attached reconciliation of GAAP and non-GAAP
measures, earnings from continuing operations for the twelve
months ended December 31, 2024 and
2023 were $70.5 million or
$3.17 per diluted share and
$64.8 million or $2.92 per diluted share, respectively.
Mr. Eric Sills, Standard Motor
Products' Chairman and Chief Executive Officer stated, "We are
pleased with our results. Sales for the quarter were up
18.1%, and up 7.8% for the full year. Excluding the impact of the
recent acquisition of Nissens Automotive, sales for the quarter and
year were up 5.8% and 5.1%, respectively. Adjusted diluted earnings
per share were up 27% for the quarter and 8.6% for the year. On
November 1st, we completed
the acquisition of Nissens Automotive and during the two months
ownership in 2024, the business performed in line with our
expectations. We are delighted with the acquisition, and
integration plans are well-underway."
By segment, Vehicle Control sales increased 4.9% in the fourth
quarter, bringing full-year performance to an increase of
3.3%. The solid results in the quarter were due to a
combination of factors including favorable order patterns, general
strength across our non-discretionary categories, as well as some
benefit due to a softer comparison from last year.
Turning to Temperature Control, the strength experienced all
year continued as sales increased 30% in the quarter, contributing
to an increase of 12.5% for the full year. This has been a
very strong year for the segment, as demand started early and
remained robust throughout the year.
For Engineered Solutions, although sales for the full year were
up 1%, fourth quarter sales declined 7.9% against a difficult
comparison. Throughout the quarter we saw softening across various
end markets as certain customers reduced their production
schedules. We continue to win new business awards which bodes
well for future growth.
Turning to our newest segment, Nissens, we were pleased with the
performance during our two months of ownership, as it contributed
sales of $35.7 million in the
quarter. As we work together with the Nissens team, we
continue to see an excellent business and cultural fit, as well as
the tremendous opportunities the combination of our two companies
present. While in the early stages, collaborative efforts are
underway to identify and implement potential cost savings and
growth opportunities, as well as to instill best practices across
both our companies. We look forward to updating you as we
move further into the integration process and remain very excited
about the future potential.
Looking at profitability, Adjusted EBITDA improved to
$29.0 million from last year's fourth
quarter of $18.3 million, up 210
basis points to 8.4%, and our full year Adjusted EBITDA was up 30
basis points to 9.6%. Margin improvement resulted from
leverage gained on the solid sales performance, as well as from
various cost containment actions to offset inflationary pressures,
including the benefit from our previously disclosed early
retirement program. We remain focused on our cost savings
initiatives and continue to look at ways to drive margin
improvement going forward.
From a cash flow perspective, we were pleased to see healthy
cash flows for the year, and borrowings in line with
expectations. Total net debt at year-end stood at
$517.9 million, reflecting additional
borrowings related to our Nissens acquisition. As we have
noted, we plan to use cash flows to work our debt balances down to
lower levels, with target leverage of less than 2.0x by the end of
2026.
Looking forward, our outlook for the full year of 2025 includes
an expectation that sales growth will be in the mid-teens, largely
due to the addition of Nissens. Further, we expect Adjusted EBITDA
will be in a range of 10.0-11.0%. Our forecast includes
expenses related to aligning operations for our new Nissens segment
as well as some redundant transition costs for our distribution
center expansion into Shawnee,
KS. We expect much of the DC move to be completed by late
2025 and anticipate the sale of our Edwardsville, KS distribution center taking
place in the first half of 2026. At this time, it is
difficult to assess the timing or magnitude of any tariff
provisions that may be implemented and therefore have not
incorporated any impact from changes to tariffs to our
guidance.
As previously announced, our Board of Directors approved an
increase in our dividend, and we will make a quarterly dividend
payment of 31 cents per share on the
common stock outstanding, which will be paid on March 3, 2025 to stockholders of record on
February 14, 2025.
In closing, Mr. Sills commented, "As we move into 2025, we are
excited about the future. Our North American aftermarket
business remains healthy and strong, and as our products are
largely non-discretionary, they tend to outperform in challenging
economic times. Nissens is performing well, and our integration is
beginning to take shape, setting the stage for realization of a
multi-year period of growth and synergy savings from this
transformative acquisition. And while our Engineered Solutions
segment will be prone to the ebbs and flows of the end markets it
serves, we continue to gain standing in this broad global
marketplace, with a strong future ahead. In many ways this will be
a transition year to have SMP well-positioned to take advantage of
the many opportunities we see before us. As always, we thank
our employees that make all this possible."
Conference Call
Standard Motor Products, Inc.
will hold a conference call at 11:00 AM,
Eastern Time, on Thursday, February
27, 2025. This call will be webcast and can be
accessed on our website at www.smpcorp.com and clicking on the
SMP Q4'24 Earnings Call Earnings Webcast link. Investors
may also listen to the call by dialing 800-225-9448 (domestic) or
203-518-9708 (international). The conference call ID code is
SMP4Q2024. Our playback will be made available for dial in
immediately following the call. For those choosing to listen
to the replay by webcast, the link should be active on our website
within 24 hours after the call. The playback number is
800-925-9527 (domestic) or 402-220-5388 (international).
Under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, Standard Motor Products cautions
investors that any forward-looking statements 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 are those 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 and quarterly reports on Form 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.
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SOURCE Standard Motor Products, Inc.
