SMP(US:SMP) Prnewswire·2025-02-27 13:30Core Insights - Standard Motor Products, Inc. reported a strong sales growth in Q4 2024, with net sales reaching $343.4 million, an increase of 18.1% compared to Q4 2023 [3][5][8] - The company experienced a loss from continuing operations of $0.8 million in Q4 2024, contrasting with earnings of $7.2 million in the same quarter of the previous year [3][4] - The acquisition of Nissens Automotive contributed $35.7 million in sales during the two months of ownership in Q4 2024, with overall sales growth of 5.8% excluding this acquisition [5][9] Financial Performance - For the full year 2024, consolidated net sales were $1.46 billion, up 7.8% from $1.36 billion in 2023 [4][8] - Earnings from continuing operations for the full year were $53.6 million or $2.41 per diluted share, down from $63.1 million or $2.85 per diluted share in 2023 [4][10] - Adjusted diluted earnings per share increased by 27% in Q4 and 8.6% for the full year, reaching $0.47 and $3.17 respectively [5][10] Segment Performance - Vehicle Control sales increased by 4.9% in Q4 and 3.3% for the full year, driven by favorable order patterns and strength in non-discretionary categories [5][6] - Temperature Control segment saw a significant sales increase of 30% in Q4 and 12.5% for the full year, indicating robust demand [6][10] - Engineered Solutions segment experienced a 7.9% decline in Q4 sales, although full-year sales were up 1% [7][10] Profitability and Cash Flow - Adjusted EBITDA improved to $29.0 million in Q4 2024, up from $18.3 million in the previous year, with a margin of 8.4% [10] - Total net debt at year-end was $517.9 million, reflecting borrowings related to the Nissens acquisition, with plans to reduce debt levels to below 2.0x by the end of 2026 [11][12] Future Outlook - The company anticipates mid-teens sales growth for 2025, largely due to the Nissens acquisition, with expected Adjusted EBITDA in the range of 10.0-11.0% [12][14] - Integration plans for Nissens are underway, with expectations for cost savings and growth opportunities [9][14] - A quarterly dividend payment of 31 cents per share has been approved, reflecting confidence in future performance [13]