Financial Data and Key Metrics Changes - The company reported resilience in business unit economics despite challenging economic conditions, with total transaction values (TTVs) remaining soft throughout the financial year 2025 [13] - Average ticket size per merchant increased by 15% compared to the same time last year, indicating improved efficiency in transaction processing [18] - Average TTV per newly onboarded merchants in the first quarter of the financial year is up approximately 20% compared to the existing fleet average [18] Business Line Data and Key Metrics Changes - The company maintained strong average revenue and margin per terminal, driven by a focus on customer verticals with strong payment economics [15] - New Zealand acquiring revenues are beginning to come online, with average revenue per terminal exceeding expectations due to targeting higher value merchants [19] - The company has increased the number of transacting merchants to transacting terminals, reflecting growth in the first quarter of the financial year [18] Market Data and Key Metrics Changes - The Reserve Bank of Australia published a preliminary decision to remove the prohibition on surcharging, which could impact Australian transactional revenues by up to 10% if implemented [24][25] - The New Zealand Commerce Commission's decision to reduce interchange caps may improve gross margins for the company, although the impact on revenue is still being assessed [26][27] Company Strategy and Development Direction - The company is executing a three-stage strategic plan, with good progress made in all stages throughout financial year 2025 [14][30] - The focus remains on embedding solutions and brand within customer businesses to realize value for shareholders [14] - The company is targeting over 5,000 merchants on its New Zealand acquiring solution by the end of financial year 2026 [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting projected timelines for the scheme of arrangement with Shift4 Holdings Limited [7][8] - The ongoing macro conditions are pressuring overall TTVs, but the company is adapting its sales focus to prepare for regulatory changes [18] - Management highlighted the importance of maintaining operating leverage and efficiency as the company grows its New Zealand revenues [19][33] Other Important Information - The company launched its next-generation Android payment terminal, which has been well received by customers [15][21] - A major marketing campaign was launched in Australia coinciding with the terminal launch, aimed at enhancing brand visibility [15] - The company has executed partnerships to deliver a next-generation merchant ecosystem and comprehensive small business toolset [30][32] Q&A Session Summary Question: Are there any questions from the audience? - No questions were raised during the Q&A session, both in-person and online [34][35][36][37][38][39][40][41][42][43][44][45][46]

Financial Data and Key Metrics Changes - Throughout financial year 2025, total transaction values (TTVs) remained soft, continuing the trend from financial year 2024, but top line revenue grew due to a focus on customer verticals with strong payment economics [13][17] - Average ticket size per merchant increased by 15% compared to the same time last year, and average TTV per newly onboarded merchants rose approximately 20% compared to the existing fleet average [17][18] - Customer attrition ratios for 2026 are consistent with the last two years, indicating stability in customer retention [18] Business Line Data and Key Metrics Changes - The company maintained transacting terminal margins across its fleet, with better revenue profiles from newly onboarded Australian customers [13][14] - New Zealand acquiring revenues are starting to come online, with average revenue per terminal exceeding expectations due to a focus on higher value merchants [18][28] - The company has targeted over 5,000 merchants for its New Zealand acquiring solution by the end of financial year 2026 [28] Market Data and Key Metrics Changes - In Australia, the company continues to grow market share despite a competitive environment, focusing on verticals with strong unit economics [14][15] - The Reserve Bank of Australia's preliminary decision to remove the prohibition on surcharging could impact Australian transactional revenues by up to 10% [24] - The New Zealand Commerce Commission's decision to reduce interchange caps may improve gross margins for the company [25][26] Company Strategy and Development Direction - The company is executing a three-stage strategic plan, with good progress made in all stages throughout financial year 2025 [14][29] - The focus is on embedding solutions and brand within customers' businesses to realize value for shareholders [14] - The company is developing a comprehensive in-store business and payment solution, including point of sale and cash flow management tools [29][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted resilience in business unit economics despite challenging economic conditions faced by customers [13] - The company is well-prepared and structured to leverage growth opportunities in both Australia and New Zealand [32] - Future growth is expected to be driven by the conversion of a captured base of over 24,000 merchants to acquiring solutions [32] Other Important Information - The company is progressing well with the completion of a scheme of arrangement following an acquisition offer by Shift4 Holdings Limited [7][8] - A major marketing campaign was launched in Australia coinciding with the introduction of a next-generation Android payment terminal [15][16] Q&A Session Summary Question: Are there any questions from online attendees? - No questions were raised from online attendees [34] Question: Are there any questions regarding the resolutions? - No questions were raised regarding the resolutions [36][39][40]

Financial Data and Key Metrics Changes - Throughout financial year 2025, total transaction values (TTVs) remained soft, continuing the trend from financial year 2024, but top line revenue grew due to a focus on customer verticals with strong payment economics [13][17] - Average ticket size per merchant increased by 15% compared to the same time last year, and average TTV per newly onboarded merchants rose approximately 20% compared to the existing fleet average [17][18] - Customer attrition ratios for 2026 are consistent with the last two years, indicating stability in customer retention [18] Business Line Data and Key Metrics Changes - The company maintained transacting terminal margins across its fleet, with better revenue profiles from newly onboarded Australian customers [13][14] - New Zealand acquiring revenues are starting to come online, with average revenue per terminal above expected fleet averages due to a focus on higher value merchants [18][28] - The company is targeting over 5,000 merchants on its New Zealand acquiring solution by the end of financial year 2026 [28] Market Data and Key Metrics Changes - In Australia, the company continues to grow market share despite a competitive environment, focusing on verticals with strong unit economics [14][15] - The Reserve Bank of Australia's preliminary decision to remove the prohibition on surcharging could impact Australian transactional revenues by up to 10% [24] - The New Zealand Commerce Commission's decision to reduce interchange caps may improve gross margins for the company [25][26] Company Strategy and Development Direction - The company is executing a three-stage strategic plan, with good progress made in all stages throughout financial year 2025 [14][29] - The focus is on embedding solutions and brand within customers' businesses to realize value for shareholders [14] - The company is developing a comprehensive in-store business and payment solution, including point of sale and cash flow management tools [29][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted resilience in business unit economics despite challenging economic conditions faced by customers [13] - The company is well-prepared and structured to maximize efficiency and deliver strong operating leverage over the coming years [18][32] - Future growth is expected to be accelerated with the growth in New Zealand revenues from the conversion of a captured base of over 24,000 merchants [32] Other Important Information - The company is progressing well with the completion of a scheme of arrangement following an acquisition offer by Shift4 Holdings Limited [7][8] - A major marketing campaign was launched in Australia coinciding with the introduction of a next-generation Android payment terminal [15][16] Q&A Session Summary Question: Are there any questions from the online attendees? - No questions were raised from online attendees [34] Question: Are there any questions regarding the resolutions? - No questions were raised regarding the resolutions [36][39][40]

Business Performance & Strategy - Smartpay has 20,500+ transacting terminals in Australia and 31,000+ terminals in the New Zealand market as of March 31, 2025 [15] - Smartpay's continuing revenue growth reached $104.7 million, with a strong EBITDA of $16.6 million in FY24 [15] - Normalised EBITDA excluding New Zealand pre-investment was $21.5 million in FY24 [15] - Smartpay is focusing on expanding its outbound sales team and target verticals in Australia to grow market share [20] - Smartpay aims to convert 75% of its existing fleet of 31,000+ New Zealand terminals over the next 3 years [55] New Zealand Acquiring - New Zealand acquiring pilot program shows per terminal revenue of approximately $400, 10 times the legacy terminal revenue of $40 [54] - Smartpay is targeting 5,000+ merchants in New Zealand by the end of FY26 [58] - Year to date revenue from New Zealand acquiring is $400k [29] Regulatory Impact - The RBA's preliminary decision on Australian payments review could potentially impact up to 10% downside on Australian revenues if surcharging is banned [49] - New Zealand Commerce Commission's decision to reduce domestic personal credit in-person interchange fees to 0.30% by December 2025 may benefit gross margin [52] Ordinary Resolutions - Resolution 1 regarding fixing the auditor's remuneration was approved with 140,397,299 votes for (57.99% of all securities) [69] - Resolutions 2, 3, 4, 5 and 6 regarding the election and re-election of directors were also approved with a majority of votes [70, 71, 72, 73, 74]

Summary of Standard Motor Products (SMP) FY Conference Call Company Overview - **Company Name**: Standard Motor Products (SMP) - **Ticker**: SMP - **Industry**: Auto Parts Manufacturing and Distribution - **Revenue**: Approximately $1.5 billion [3] Key Segments 1. **North American Aftermarket** - Comprises vehicle control and temperature control segments - Accounts for about two-thirds of revenue [16] - Revenue growth from $1 billion in 2021 to $1.14 billion in 2024, reflecting steady low single-digit growth [24] - Average age of vehicles serviced is approximately 12.3 years, driving repair needs [22] 2. **European Aftermarket** - Recently expanded through the acquisition of Nissens, which adds approximately $277 million in revenue on a pro forma basis [10] - Nissens has achieved mid to high single-digit growth, outperforming the low single-digit growth typical in the market [26] - The European car park is similar in size to North America, with about 280 million cars [25] 3. **Engineered Solutions** - Represents about 17% of the business, focusing on niche, customized products for commercial and heavy-duty equipment [4] - Revenue grew from $237 million to $285 million, with a consistent performance despite market downturns [31] Acquisition Insights - The acquisition of Nissens is the largest in SMP's history, aimed at expanding into the European market [9] - Expected cost synergies of $8 million to $12 million within the first 24 months post-acquisition [12] - Nissens provides a full line of products that complement SMP's existing offerings, enhancing cross-selling opportunities [12] Market Dynamics - The aftermarket industry is characterized by stability, driven by the number of vehicles on the road and their average age [4] - SMP's business model is less reliant on discretionary spending, focusing on essential repairs [5] - The company has a strong manufacturing presence in North America, reducing reliance on imports from Asia [15] Financial Performance - Free cash flow has been strong, with a focus on capital allocation towards dividends and debt reduction post-acquisition [34][37] - Net debt was reported at 3.7 times leverage, expected to decrease to under 3 times by 2025 [36] - Sales growth in the first half of the year was reported at just under 26%, with legacy business growth at just under 5% [39] Strategic Outlook - SMP aims to achieve organic sales of approximately $2 billion in the coming years through continued profit improvements [48] - The company is focused on maintaining a low leverage profile while exploring potential M&A opportunities [37] Additional Insights - The average age of vehicles has increased from under 10 years to 12.3 years over the past decade, indicating a growing need for aftermarket services [22] - SMP trains about 60,000 technicians annually to enhance brand awareness and customer loyalty [21] - The company has a diversified customer base, with no single customer accounting for more than 15% of sales [28] This summary encapsulates the key points discussed during the Standard Motor Products FY Conference Call, highlighting the company's strategic initiatives, market dynamics, and financial performance.

Group 1 - Standard Motor Products (SMP) is outperforming its peers in the Auto-Tires-Trucks sector with a year-to-date return of 20.9%, while the sector average is -11.3% [4] - The Zacks Consensus Estimate for SMP's full-year earnings has increased by 2.8% in the past quarter, indicating improved analyst sentiment [4] - SMP holds a Zacks Rank of 2 (Buy), suggesting it is positioned to outperform the broader market in the near term [3] Group 2 - The Auto-Tires-Trucks sector consists of 96 individual stocks and is currently ranked 15 in the Zacks Sector Rank [2] - SMP belongs to the Automotive - Replacement Parts industry, which has an average year-to-date loss of 7.3%, further highlighting SMP's strong performance [6] - Visteon, another stock in the sector, has a year-to-date return of 36.1% and a Zacks Rank of 1 (Strong Buy), indicating strong performance within the industry [5][7]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1]. Company Overview: Standard Motor Products (SMP) - SMP currently holds a Momentum Style Score of B, indicating a positive momentum outlook [2]. - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3]. Performance Metrics - Over the past week, SMP shares increased by 2.14%, while the Zacks Automotive - Replacement Parts industry rose by 2.72% [5]. - In a longer timeframe, SMP's monthly price change is 21.55%, outperforming the industry's 10.7% [5]. - SMP shares have risen by 32.56% over the past quarter and 25.67% over the last year, compared to the S&P 500's increases of 9.33% and 17.71%, respectively [6]. Trading Volume - SMP's average 20-day trading volume is 231,016 shares, which serves as a bullish indicator when combined with rising stock prices [7]. Earnings Outlook - In the past two months, one earnings estimate for SMP has increased, raising the consensus estimate from $3.58 to $3.67 [9]. - For the next fiscal year, one estimate has also moved upwards, with no downward revisions during the same period [9]. Conclusion - Given the positive momentum indicators and earnings outlook, SMP is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for investors seeking short-term gains [11].

Company Overview - Standard Motor Products Inc. is a leading manufacturer, distributor, and marketer of premium automotive replacement parts for engine management and temperature control systems, founded in 1919 [11] - The company started reporting results in four segments: Vehicle Control, Temperature Control, Engineered Solutions, and Nissens Automotive from February 2025 [11] Investment Ratings - Standard Motor Products holds a Zacks Rank of 2 (Buy) and has a VGM Score of A, indicating strong potential for investors [12] - The company is considered a top pick for growth investors, with a Growth Style Score of B, forecasting year-over-year earnings growth of 15.8% for the current fiscal year [12] Earnings Estimates - In the last 60 days, one analyst revised their earnings estimate upwards, with the Zacks Consensus Estimate increasing by $0.09 to $3.67 per share [12] - Standard Motor Products boasts an average earnings surprise of +40.4%, highlighting its strong performance relative to expectations [12] Investment Considerations - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, Standard Motor Products is recommended for investors' consideration [13]

Core Viewpoint - Standard Motor Products (SMP) has shown strong stock performance, with an 8.7% increase over the past month and an 18.1% gain since the start of the year, outperforming the Zacks Auto-Tires-Trucks sector and the Zacks Automotive - Replacement Parts industry [1][2]. Financial Performance - SMP has a consistent record of positive earnings surprises, having met or exceeded earnings consensus estimates in the last four quarters. In the latest earnings report on August 5, 2025, the company reported an EPS of $1.29, surpassing the consensus estimate of $0.97, and beat the revenue estimate by 9.75% [2]. - For the current fiscal year, SMP is projected to achieve earnings of $3.67 per share on revenues of $1.72 billion, reflecting a 15.77% increase in EPS and a 17.27% increase in revenues. For the next fiscal year, earnings are expected to rise to $4.23 per share on $1.77 billion in revenues, indicating a year-over-year change of 15.44% in EPS and 2.97% in revenues [3]. Valuation Metrics - SMP currently trades at 10X the current fiscal year EPS estimates, which is below the peer industry average of 13.6X. On a trailing cash flow basis, the stock trades at 7.7X, aligning with the peer group's average, positioning SMP favorably for value investors [7]. - The company has a Value Score of A, while its Growth and Momentum Scores are D and C, respectively, resulting in a combined VGM Score of B [6]. Zacks Rank - SMP holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates. This ranking suggests that the stock is a suitable choice for investors looking for stocks with strong potential for gains [8].

Core Viewpoint - The article emphasizes the importance of identifying and sustaining stock price trends for successful short-term investing, highlighting the need for strong fundamentals and positive earnings revisions to maintain momentum [1][2]. Group 1: Stock Performance - Standard Motor Products (SMP) has shown a solid price increase of 22.9% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - SMP has also experienced an 8.7% price increase over the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, SMP is trading at 98.7% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - SMP holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. Group 3: Investment Strategy - The article suggests that investors can utilize the "Recent Price Strength" screen to identify stocks like SMP that are on an upward trend supported by strong fundamentals [3][8]. - It also mentions that there are over 45 Zacks Premium Screens available for investors to find winning stock picks based on their personal investing styles [8].