Standard Motor Products, Inc. Releases Fourth Quarter and 2024 Year-End Results
- 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.