Standard Motor Products : Evercore Auto Aftermarket Forum

Published: 2025-05-07 04:16:45 ET SMP

Published on 05/07/2025 at 04:16

Investor Presentation

Who We Are:

Standard Motor Products is a leading global manufacturer and distributor of premium replacement parts in the automotive aftermarket and a custom-engineered solutions provider to vehicle and equipment manufacturers in diverse non-aftermarket end markets.

Financial Composition

Three Markets Key Facts

Headquarters: Long Island City, NY

16%

North American Aftermarket

Year Founded: 1919

North American Aftermarket

European Aftermarket Engineered Solutions

17%

2024 Revenue1

67%

European Aftermarket

Number of Employees2: ~6,100 Market Capitalization3: ~$615mm 2024 Revenue: $1.5B

Engineered Solutions

2024 Adj. EBITDA : $140M

2024 revenue includes Nissens pro forma results

Includes JVs

As of May 5, 2025

Reflects adjusted EBITDA which is a non-GAAP financial measure 3

North American Aftermarket

A mission to be the best full-line, full-service supplier of premium Vehicle Control and Temperature products for all makes and models. Products are primarily sold to retailers and warehouse distributors.

67% of 2024 Revenue

European Aftermarket

Contains the recently acquired Nissens business, a leading manufacturer and distributor of aftermarket engine cooling and air conditioning with a growing array of vehicle control technologies.

16% of 2024 Revenue1

Engineered Solutions

Offers a wide range of custom-designed products to vehicle and equipment manufacturers across diverse global end markets, including both on-highway and off-highway applications.

17% of 2024 Revenue

1. 2024 revenue consist of Nissens pro forma results

($ in millions)

$969

$1,076

$1,062

$1,103

$159

$1,143

$237

$283

$270

$277

$285

18%

71%

2020 2021 2022 2023 2024

1. 2024 revenue includes Nissens pro forma results

($ in millions) CY 2024 vs. 2023 Q1 2025 vs. 2024

Share Repurchases

Spent $10.4mm in 2024 to repurchase 321K shares

$19.6mm left under authorization as of March 31, 2025

10-year average yield of 1.9%

Opportunistic M&A

Actively looking for deals that align with SMP's core competencies

Completed a total of six acquisitions over the last 5 years

Debt Paydown

Continue to pay down debt to lower our net leverage ratio

Continue to return

capital to shareholders through quarterly dividend that currently has a 10-year CAGR of 8%

10-year average dividend yield of 2.2%

•

Support organic

growth through reinvestment in the business

•

Dividend

CapEx Investment

A leading market position in global automotive aftermarket parts

Serves a stable and growing do-it-for-me (DIFM) market that

benefits from non-discretionary vehicle repairs and increasing vehicle complexity that requires professional installment

Diversification in Europe and rest of the world with Nissens

acquisition

Engineered Solutions provides diversified growth in large, global

end markets

Demonstrated consistent financial performance, cash flow

generation, and disciplined capital allocation that fuels growth and returns capital to shareholders

Tony Cristello, VP of IR & Corporate Development

[email protected]

Income Statement Non-GAAP

(In millions, except per share amounts)

THREE MONTHS ENDED MARCH 31,

2025

2024

Vehicle Control

Revenue

$ 192.3

$ 185.5

Gross Margin

62.2

32.3%

58.9

31.7%

Selling, General & Administrative

37.4

19.5%

35.6

19.2%

Factoring Expenses

6.4

3.3%

7.7

4.2%

Operating Income

$ 18.3

9.5%

$ 15.6

8.4%

Adjusted EBITDA

$ 22.2

11.6%

$ 19.4

10.4%

Temperature Control

Revenue

$ 88.9

$ 71.6

Gross Margin

27.6

31.0%

19.7

27.5%

Selling, General & Administrative

16.9

19.0%

15.3

21.4%

Factoring Expenses

2.9

3.3%

2.3

3.2%

Operating Income

$ 7.8

8.7%

$ 2.1

2.9%

Adjusted EBITDA

$ 9.4

10.6%

$ 3.4

4.7%

(1)All operating results provided except for revenues are on a non-GAAP basis. See financial statements in earnings release for reconciliation of GAAP to non-GAAP earnings.

Income Statement Non-GAAP Cont.

(In millions, except per share amounts)

THREE MONTHS ENDED MARCH 31,

2025

2024

Engineered Solutions

Revenue

$ 66.0

$ 74.3

Gross Margin

11.7

17.7%

10.9

14.7%

Selling, General & Administrative

8.5

12.9%

8.7

11.7%

Operating Income

$ 3.2

4.8%

$ 2.2

3.0%

Adjusted EBITDA

$ 6.4

9.7%

$ 5.5

7.4%

Nissens Automotive

Revenue

$ 66.2

$ -

Gross Margin

27.8

42.1%

0.0%

Selling, General & Administrative

20.3

30.6%

0.0%

Operating Income

$ 7.6

11.5%

$ -

0.0%

Adjusted EBITDA

$ 11.5

17.3%

$ -

0.0%

(1)All operating results provided except for revenues are on a non-GAAP basis. See financial statements in earnings release for reconciliation of GAAP to non-GAAP earnings.

Income Statement Non-GAAP Cont.

(In millions, except per share amounts)

THREE MONTHS ENDED MARCH 31,

2025

2024

Consolidated Results

Revenue

$ 413.4

$ 331.4

Gross Margin

129.3

31.3%

89.5

27.0%

Selling, General & Administrative

90.0

21.8%

64.7

19.5%

Factoring Expenses

9.3

2.3%

10.0

3.0%

Operating Income

$ 30.0

7.3%

$ 14.8

4.5%

Net Earnings from Continuing Operations

$ 18.0

$ 10.0

Adjusted EBITDA

$ 42.8

10.4%

$ 22.9

6.9%

Interest Expense

$ 7.8

$ 2.1

Diluted Earnings per Share

$ 0.81

$ 0.45

(1)All operating results provided except for revenues are on a non-GAAP basis. See financial statements in earnings release for reconciliation of GAAP to non-GAAP earnings.

Balance Sheet & Cash Flow Metrics

(In millions)

MARCH 31,

DECEMBER 31,

2025 2024

2024

Working Capital Stats

Accounts Receivable, Net

$ 280.8 $ 203.9

$ 210.7

Inventories

$ 641.1 $ 520.7

$ 624.9

Cash Flow Stats (YTD)

Operating cash flows

$ (60.2) $ (45.7)

$ 76.7

Capex

$ (9.1) $ (10.1)

$ (44.0)

M&A

$ - $ -

$ (372.5)

Dividends

$ (6.8) $ (6.4)

$ (25.3)

Share repurchases

$ - $ (2.2)

$ (10.4)

Net Change in Debt

$ 79.1 $ 58.7

$ 392.6

Debt & Leverage

Total debt

$ 650.6 $ 214.9

$ 562.3

Cash

$ 50.3 $ 27.1

$ 44.4

Net debt

$ 600.3 $ 187.8

$ 517.9

LTM Adjusted EBITDA

$ 159.9 $ 120.6

$ 140.1

Leverage ratio

3.75x 1.56x

3.70x

Remaining borrowing capacity

$ 108.5 $ 274.2

$ 193.4

Total Liquidity

$ 158.8 $ 301.3

$ 237.8

1. LTM Adjusted EBITDA and Leverage ratio only includes two months of Nissens

results, as the acquisition closed on November 1, 2024

Reconciliation of GAAP & Non-GAAP Measures

($ in thousands, except per share amounts) THREE MONTHS ENDED MARCH 31,

2025

2024

2023

2022

2021

EARNINGS FROM CONTINUING OPERATIONS

(Unaudited)

GAAP EARNINGS FROM CONTINUING OPERATIONS

$ 13,705

$ 9,863

$ 12,698

$ 20,562

$ 22,164

RESTRUCTURING AND INTEGRATION EXPENSES

673

192

912

ACQUISITION EXPENSES

5,147

INCOME TAX EFFECT RELATED TO RECONCILING ITEMS

(1,513)

(50)

(237)

(11)

NON-GAAP EARNINGS FROM CONTINUING OPERATIONS

$ 18,012

$ 10,005

$ 13,373

$ 20,592

$ 22,164

DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS

GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS

$ 0.61

$ 0.44

$ 0.57

$ 0.91

$ 0.97

RESTRUCTURING AND INTEGRATION EXPENSES

0.03

0.01

0.04

0.01

ACQUISITION EXPENSES

0.23

INCOME TAX EFFECT RELATED TO RECONCILING ITEMS

(0.06)

NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPS

$ 0.81

$ 0.45

$ 0.61

$ 0.92

$ 0.97

MANAGEMENT BELIEVES THAT EARNINGS FROM CONTINUING OPERATIONS AND DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS, 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 & Non-GAAP Measures Cont.

($ in thousands) THREE MONTHS ENDED MARCH 31,

2025

2024

2023

2022

2021

EBITDA WITHOUT SPECIAL ITEMS ATTRIBUTABLE TO SMP

(Unaudited)

GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES

$ 18,949

$ 13,371

$ 17,109

$ 27,559

$ 29,751

DEPRECIATION & AMORTIZATION

10,267

7,301

7,082

6,952

6,514

INTEREST EXPENSE

7,761

2,067

3,862

805

209

EBITDA

36,977

22,739

28,053

35,316

36,474

RESTRUCTURING AND INTEGRATION EXPENSES

673

192

912

ACQUISITION EXPENSES

5,147

SPECIAL ITEMS

5,820

192

912

EBITDA WITHOUT SPECIAL ITEMS

$ 42,797

$ 22,931

$ 28,965

$ 35,357

$ 36,474

TOTAL DEBT

$ 650,555

$ 214,902

$ 273,101

$ 248,685

$ 42,574

CASH

$ 50,276

$ 27,113

$ 24,196

$ 19,998

$ 17,100

NET DEBT

$ 600,279

$ 187,789

$ 248,905

$ 228,687

$ 25,474

NET DEBT TO EBITDA RATIO (TTM)

3.8:1

1.6:1

1.8:1

1.4:1

0.2:1

MANAGEMENT BELIEVES THAT EBITDA WITHOUT SPECIAL ITEMS, WHICH IS NON-GAAP MEASUREMENT, IS MEANINGFUL TO INVESTORS BECAUSE IT PROVIDES 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 & Non-GAAP Measures by Seg.

(In thousands)

THREE MONTHS ENDED MARCH 31, 2025

THREE MONTHS ENDED MARCH 31, 2024

Temperature

Engineered Nissens

All Other

Consolidated

Vehicle Control

Temperature

Control

Engineered Nissens

Solutions Automotive

All Other

Consolidated

Vehicle Control

Control

Solutions Automotive

(Unaudited)

$ 17,782

$ 7,900

$ 3,176 $ 2,587

$ (6,983)

$ 24,462

$ 15,540

$ 2,031

$ 2,232 $ -

$ (5,184)

$ 14,619

526

136

20 -

(9)

673

101

33 -

192

- 5,011

136

5,147

- -

(261)

(1) (14)

(258)

(22) -

(22)

$ 18,326

$ 7,775

$ 3,195 $ 7,584

$ (6,856)

$ 30,024

$ 15,641

$ 2,089

$ 2,243 $ -

$ (5,184)

$ 14,789

$ 17,046

$ 7,948

$ 3,431 $ (2,151)

$ (7,325)

$ 18,949

$ 14,315

$ 1,888

$ 2,346 $ -

$ (5,178)

$ 13,371

3,669

778

2,500 2,987

333

10,267

3,525

898

2,469 -

409

7,301

1,007

539

459 5,620

136

7,761

1,427

531

664 -

(555)

2,067

21,722

9,265

6,390 6,456

(6,856)

36,977

19,267

3,317

5,479 -

(5,324)

22,739

526

136

20 -

(9)

673

101

33 -

192

- 5,011

136

5,147

- -

526

136

20 5,011

127

5,820

101

33 -

192

$ 22,248

$ 9,401

$ 6,410 $ 11,467

$ (6,729)

$ 42,797

$ 19,368

$ 3,375

$ 5,512 $ -

$ (5,324)

$ 22,931

11.6%

10.6%

9.7% 17.3%

10.4%

4.7%

7.4%

6.9%

OPERATING INCOME

GAAP OPERATING INCOME

RESTRUCTURING AND INTEGRATION EXPENSES ACQUISITION EXPENSES

OTHER EXPENSE, NET

NON-GAAP OPERATING INCOME

EBITDA WITHOUT SPECIAL ITEMS

GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES DEPRECIATION AND AMORTIZATION

INTEREST EXPENSE

EBITDA

RESTRUCTURING AND INTEGRATION EXPENSES ACQUISITION EXPENSES

SPECIAL ITEMS

EBITDA WITHOUT SPECIAL ITEMS

% of Net Sales

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.

Disclaimer

Standard Motor Products Inc. published this content on May 05, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2025 at 07:49 UTC.