Standard Motor Products, Inc. (NYSE:SMP) Q3 2022 Results Conference Call October 28, 2022 11:00 AM ET Company Participants Tony Cristello - Vice President, Investor Relations Larry Sills - Chairman of the Board Eric Sills - President & Chief Executive Officer Jim Burke - Chief Operating Officer Nathan Iles - Chief Financial Officer Conference Call Participants Daniel Imbro - Stephens Inc Scott Stember - MKM Partners Bret Jordan - Jefferies Operator Good day, everyone, and welcome to today's Standard Motor P ...

Standard Motor Products, Inc. 2nd Quarter 2022 Earnings Call | August 3, 2022 1 2 Safe Harbor – Forward Looking Statements You should be aware that except for historical information, the matters discussed herein are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements, including projections and anticipated levels of future performance, are based on current information and assumptions and involve risks and uncertainties which may ca ...

Financial Data and Key Metrics Changes - The company reported a 5.1% increase in sales for Q2 2022 compared to the same period last year, marking eight consecutive quarters of record-breaking sales [10][37] - Engine Management sales increased by 3.7% year-over-year, while Temperature Control sales rose by 7.5% [11][36] - Consolidated gross margin rates decreased due to inflationary pressures, with Engine Management at 25.8% and Temperature Control at 26.7% for Q2 2022 [33][36] Business Line Data and Key Metrics Changes - Engine Management sales were $241.9 million for Q2 2022, up $8.7 million from the previous year, driven by acquisitions and pricing actions [32] - Temperature Control sales for Q2 2022 were $112.5 million, reflecting a solid start to the season and higher pricing [36] - The aftermarket business, which constitutes nearly three-quarters of total revenue, is expected to outperform in challenging economic times due to the aging vehicle fleet and non-discretionary nature of products [15][16] Market Data and Key Metrics Changes - The company noted that the vehicle fleet is aging, and the lack of new vehicle availability is leading motorists to repair their existing vehicles [16] - Gas prices have peaked and are now starting to decline, which may positively impact consumer spending on vehicle maintenance [16] - The company has a lesser reliance on Far East suppliers, allowing for better shipping capabilities compared to competitors [18] Company Strategy and Development Direction - The company is focusing on the "do-it-for-me" market, which is expected to drive growth as consumers increasingly seek professional installation of products [17] - Recent acquisitions in specialized non-aftermarket businesses have resulted in a run rate of approximately $300 million in sales, diversifying the company's market presence [19] - The company is implementing further pricing actions to offset inflationary pressures and is strategically increasing inventory levels to manage supply chain challenges [28][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by inflation, supply chain issues, and labor shortages, but expressed confidence in the company's ability to navigate these headwinds [49] - The company expects full-year sales growth for 2022 to be in the low to mid-single digits, with a revised expectation for consolidated gross margin around 27% [46][47] - Management remains optimistic about future growth opportunities despite the uncertain economic environment [48] Other Important Information - The company has entered into a new five-year $500 million credit facility to enhance liquidity and support growth initiatives [45] - A new $30 million share repurchase program has been approved by the Board, aligning with the company's capital allocation strategy [48] Q&A Session Summary Question: Can you elaborate on Engine Management performance excluding the wire and cable business? - Management noted that excluding the wire and cable segment, Engine Management showed low single-digit growth, while the wire and cable business has returned to a high single-digit decline [56][57] Question: What is the timing for implementing price increases? - Management indicated that there is always a lag in implementing price increases due to internal processes and customer agreements, with some increases already phased in for the second half of the year [58] Question: How is inventory in the channel amid high demand? - Management reported that customer inventories are holding up well, with sell-in matching sell-through, indicating a healthy inventory position [59][60] Question: Are the fundamentals of the business unchanged despite inflation? - Management confirmed that the fundamentals remain strong, with the industry expected to perform well even in challenging economic conditions [62] Question: What are the impacts of increased factoring costs? - Factoring costs increased by $4.7 million in Q2 2022 compared to the previous year, reflecting the impact of rising interest rates [88] Question: How does the company view acquisition opportunities? - Management remains open to acquisition opportunities that align with their strategic focus, particularly in the non-aftermarket niche [81] Question: What is the company's leverage comfort level? - The company is comfortable with its current leverage ratio of 1.7 times EBITDA and could potentially increase it to 3 times EBITDA for the right acquisition [82]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission file number: 001-04743 Standard Motor Products, Inc. (Exact name of registrant as specified in its charter) New York 11-1362020 (State or other jurisdiction of incorporation or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission file number: 001-04743 Standard Motor Products, Inc. (Exact name of registrant as specified in its charter) New York 11-1362020 (State or other jurisdiction of incorporation o ...

Standard Motor Products, Inc. 1 Q1 2022 Investor Presentation 2 Forward Looking Statements You should be aware that except for historical information, the matters discussed here in are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements, including projections and anticipated levels of future performance, are based on current information and assumptions and involve risks and uncertainties which may cause actual results to differ ma ...

Standard Motor Products, Inc. (NYSE:SMP) Q1 2022 Earnings Conference Call May 3, 2022 11:00 AM ET Company Participants Tony Cristello - VP, IR Eric Sills - Director, CEO and President James Burke - COO Nathan Iles - CFO Lawrence Sills - Chairman Conference Call Participants Joe Enderlin - Stephens, Inc. Bret Jordan - Jefferies & Co. Robert Smith - Center for Performance Investing Operator Good day, everyone and welcome to the Standard Motor Products First Quarter 2022 Earnings Call. [Operator Instructions] ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission file number: 001-04743 Standard Motor Products, Inc. (Exact name of registrant as specified in its charter) New York 11-1362020 (State or o ...

Standard Motor Products, Inc. Q4 2021 Investor Presentation 1 2 Forward Looking Statements You should be aware that except for historical information, the matters discussed here in are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements, including projections and anticipated levels of future performance, are based on current information and assumptions and involve risks and uncertainties which may cause actual results to differ ma ...

Financial Data and Key Metrics Changes - The company reported a record full-year earnings per diluted share of $4.45, an increase of $0.84 or 23% compared to the previous year [8] - Consolidated net sales for Q4 2021 increased by 9.6% year-over-year, while full-year sales grew by 15.1% to $1.3 billion [31] - The gross margin rate for Engine Management was 27.6% in Q4, down 5.4 points from the previous year, while the full-year gross margin rate was 28.5%, down 1.6 points [27][28] Business Line Data and Key Metrics Changes - Engine Management sales increased by 6% in Q4 and 12% for the full year, driven by new business wins and acquisitions [9] - Temperature Control experienced a significant increase of nearly 24% for the year, attributed to a strong selling season [11] - The gross margin for Temperature Control in Q4 was 27.6%, a decrease of 2.4 points from the previous year, while the full-year gross margin was up 0.6 points to 27.3% [30] Market Data and Key Metrics Changes - The company noted favorable market dynamics with increasing miles driven and a trend of motorists maintaining their vehicles due to difficulties in purchasing new ones [10] - The specialized original equipment (OE) channel represented 24% of Engine Management business in Q4, up from 17% the previous year, indicating a strategic shift [14] Company Strategy and Development Direction - The company is focusing on integrating recent acquisitions and expanding its specialized OE channel, which is seen as a complementary adjacency to its core aftermarket business [15][72] - The company aims to prepare for a post-internal combustion engine world by building a product portfolio that is not solely reliant on traditional vehicles [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges and maintain strong performance despite facing inflationary pressures and supply chain disruptions [45] - For 2022, the company expects sales growth in the low to mid-single digits, with gross margins projected to be in the range of 28% to 29% [40][41] Other Important Information - The company increased its inventory levels to mitigate supply chain disruptions, resulting in a total inventory of $468.8 million, up $123.3 million from the previous year [36][21] - The company reported cash generated from operations of $85.6 million for the year, with significant investments made in acquisitions and capital expenditures [38] Q&A Session Summary Question: Can you discuss the low to mid-single-digit sales guidance for 2022? - Management acknowledged uncertainty in the market but emphasized a return to normal organic growth, with potential impacts from acquisitions and previous demand pull-forward [49][50] Question: What are the margin expectations for Engine Management and Temperature Control? - Management indicated that margins are expected to remain relatively static, with Engine Management around 28% and Temperature Control at 27% plus [52][53] Question: Can you elaborate on cross-selling opportunities from the specialty OE business? - Management noted early integration efforts and identified potential cross-selling opportunities among acquired businesses, enhancing customer access to a broader product range [54] Question: What is the inventory situation for Temperature Control going into spring? - Management reported that inventory levels are balanced, with major players neither overstocked nor under-stocked, setting a good starting point for the year [61][62] Question: Are customers migrating towards near shore sourcing due to supply chain challenges? - Management observed that customers are reevaluating their supplier relationships, which has led to new business opportunities for the company [66] Question: What are the long-term targets for the specialty OE business? - Management stated that while there are no specific targets, there is significant growth potential in the fragmented specialty OE market [71][72] Question: How does the company approach recapturing inflationary costs? - Management indicated that there is a greater acceptance among customers to pass on costs due to the non-discretionary nature of their products [78] Question: What is the company's dividend payout philosophy? - Management mentioned a target payout ratio of around 30%, with a history of annual increases in dividends [81]