Exhibit 99.1


For Immediate Release
For more information, contact:
James J. Burke
Standard Motor Products, Inc.
(718) 392-0200

Standard Motor Products, Inc. Announces

Third Quarter 2018 Results and a Quarterly Dividend

New York, NY, October 26, 2018......Standard Motor Products, Inc. (NYSE: SMP), an automotive replacement parts manufacturer and distributor, reported today its consolidated financial results for the three months and nine months ending September 30, 2018.

Consolidated net sales for the third quarter of 2018 were $296.6 million, compared to consolidated net sales of $281.1 million during the comparable quarter in 2017. Earnings from continuing operations for the third quarter of 2018 were $19.3 million or 84 cents per diluted share, compared to $17.1 million or 74 cents per diluted share in the third quarter of 2017. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the third quarter of 2018 were $19.1 million or 83 cents per diluted share, compared to $17.2 million or 74 cents per diluted share in the third quarter of 2017.


37-18 Northern Blvd., Long Island City, NY  11101
(718) 392-0200
www.smpcorp.com


Consolidated net sales for the nine month period ended September 30, 2018, were $845.1 million, compared to consolidated net sales of $876.2 million during the comparable period in 2017.  Earnings from continuing operations for the nine month period ended September 30, 2018, were $44.7 million or $1.95 per diluted share, compared to $51.7 million or $2.22 per diluted share in the comparable period of 2017.  Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the nine months ended September 30, 2018, and 2017 were $46.7 million or $2.03 per diluted share and $53.2 million or $2.28 per diluted share, respectively.

Mr. Eric P. Sills, Standard Motor Products’ Chief Executive Officer and President, stated, “We are pleased with our performance in the quarter. After a challenging first half, which was largely impacted by temporary or timing-related issues, our third quarter showed positive signs of recovery.  We believe this trend will continue for the balance of the year.

“Engine Management sales were essentially flat for the quarter. Our Wire and Cable product line, which is in gradual decline, was down 6.7%, while the balance of our Engine Management business showed an increase of 2.3%. Both of these trends are in line with our stated expectations. Meanwhile, excluding Wire and Cable, our customers have been reporting solid POS gains all year, which in the third quarter were up in the mid-single digits over 2017.

“Our Engine Management gross margin in the third quarter showed a 50 basis point improvement over the second quarter, as we are now beginning to see the gradual improvement in our efficiencies as we fully integrate the General Cable operation into our Reynosa, Mexico facility. While there remains much to be done, we are pleased to see this trending in the right direction.


“Year-to-date our Engine Management net sales were 4.9% below 2017 overall, and 3.2% below 2017 excluding Wire and Cable. As previously reported, the shortfall in the first half of the year was due to a few customers placing large pipeline orders in 2017 that were not repeated this year.

“Turning to Temperature Control, sales rebounded very strongly in the quarter, up 18.4% from last year. This was the result of a warm summer, compared to a mild summer in 2017. Sales year-to-date are essentially flat as compared to 2017. As previously reported, our first half sales lagged 2017 by almost 11%, as our customers entered 2018 with above normal inventory levels, and therefore placed substantially lower pre-season orders this year.

“The warm weather continued into autumn, which bodes well not just for this year’s sales, but for next year’s pre-season orders as well, as we expect our customers to end the year with lower than typical inventories.

“Temperature Control gross margin increased to 27.6% for the quarter, up from 26.8% from last year. This reflects the fact that we are now essentially fully low cost in our manufacturing, having exited our Texas operations in 2017. However, much of the gross margin improvement was negated by incremental SG&A associated with higher than usual distribution expenses. These increases were due to a combination of significant additional labor costs to keep up with the surge in sales, as well as start-up costs related to the installation of a new automation project in our distribution center.  We believe this project will be complete and fully optimized by year-end, and we will see substantial improvement next year.


“In closing, while we recognize that there is still a great deal of work ahead of us, we are pleased with the quarter, and feel that the temporary issues that have recently had a negative impact on us are either waning or are in the past. Coupled with strong signs of customer sell-through and industry health in general, we are excited about the future.”

The Board of Directors has approved payment of a quarterly dividend of 21 cents per share on the common stock outstanding. The dividend will be paid on December 3, 2018 to stockholders of record on November 15, 2018.

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Friday, October 26, 2018.  The dial-in number is 866-342-8591 (domestic) or 203-518-9713 (international). The playback number is 800-839-5125 (domestic) or 402-220-1502 (international). The conference ID # is STANDARD.

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.


STANDARD MOTOR PRODUCTS, INC.
Consolidated Statements of Operations

(In thousands, except per share amounts)

   
THREE MONTHS ENDED
SEPTEMBER 30,
   
NINE MONTHS ENDED
SEPTEMBER 30,
 
   
2018
   
2017
   
2018
   
2017
 
   
(Unaudited)
   
(Unaudited)
 
NET SALES
 
$
296,619
   
$
281,058
   
$
845,081
   
$
876,165
 
                                 
COST OF SALES
   
209,313
     
198,523
     
603,897
     
618,854
 
                                 
GROSS PROFIT
   
87,306
     
82,535
     
241,184
     
257,311
 
                                 
SELLING, GENERAL & ADMINISTRATIVE EXPENSES
   
60,137
     
54,963
     
175,604
     
172,726
 
RESTRUCTURING AND INTEGRATION EXPENSES
   
6
     
1,132
     
3,073
     
3,914
 
OTHER INCOME, NET
   
15
     
316
     
328
     
946
 
                                 
OPERATING INCOME
   
27,178
     
26,756
     
62,835
     
81,617
 
                                 
OTHER NON-OPERATING INCOME, NET
   
351
     
482
     
800
     
2,372
 
                                 
INTEREST EXPENSE
   
1,254
     
595
     
3,137
     
1,785
 
                                 
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
   
26,275
     
26,643
     
60,498
     
82,204
 
                                 
PROVISION FOR INCOME TAXES
   
7,002
     
9,535
     
15,801
     
30,468
 
                                 
EARNINGS FROM CONTINUING OPERATIONS
   
19,273
     
17,108
     
44,697
     
51,736
 
                                 
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES
   
(3,524
)
   
(3,983
)
   
(5,014
)
   
(5,113
)
                                 
NET EARNINGS
 
$
15,749
   
$
13,125
   
$
39,683
   
$
46,623
 
                                 
NET EARNINGS PER COMMON SHARE:
                               
                                 
BASIC EARNINGS FROM CONTINUING OPERATIONS
 
$
0.86
   
$
0.75
   
$
1.99
   
$
2.27
 
DISCONTINUED OPERATION
   
(0.16
)
   
(0.17
)
   
(0.22
)
   
(0.22
)
NET EARNINGS PER COMMON SHARE - BASIC
 
$
0.70
   
$
0.58
   
$
1.77
   
$
2.05
 
                                 
DILUTED EARNINGS FROM CONTINUING OPERATIONS
 
$
0.84
   
$
0.74
   
$
1.95
   
$
2.22
 
DISCONTINUED OPERATION
   
(0.15
)
   
(0.17
)
   
(0.22
)
   
(0.22
)
NET EARNINGS PER COMMON SHARE - DILUTED
 
$
0.69
   
$
0.57
   
$
1.73
   
$
2.00
 
                                 
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
   
22,424,962
     
22,660,157
     
22,464,697
     
22,774,927
 
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES
   
22,938,925
     
23,174,700
     
22,954,649
     
23,287,052
 


STANDARD MOTOR PRODUCTS, INC.
Segment Revenues and Operating Income

(In thousands)

   
THREE MONTHS ENDED
SEPTEMBER 30,
         
NINE MONTHS ENDED
SEPTEMBER 30,
       
   
2018
         
2017
         
2018
         
2017
       
   
(Unaudited)
         
(Unaudited)
       
Revenues
                                               
Ignition, Emission and Fuel System Parts
 
$
159,101
         
$
155,544
         
$
482,640
         
$
498,802
       
Wire and Cable
   
38,469
           
41,232
           
117,847
           
132,637
       
Engine Management
   
197,570
           
196,776
           
600,487
           
631,439
       
                                                         
Compressors
   
54,842
           
44,733
           
131,680
           
132,278
       
Other Climate Control Parts
   
41,237
           
36,427
           
105,000
           
106,563
       
Temperature Control
   
96,079
           
81,160
           
236,680
           
238,841
       
                                                         
All Other
   
2,970
           
3,122
           
7,914
           
5,885
       
Revenues
 
$
296,619
         
$
281,058
         
$
845,081
         
$
876,165
       
                                                         
Gross Margin
                                                       
Engine Management
 
$
57,188
   
28.9
%
 
$
57,808
   
29.4
%
 
$
171,440
   
28.6
%
 
$
187,531
   
29.7
%
Temperature Control
   
26,523
   
27.6
%
   
21,721
   
26.8
%
   
60,990
   
25.8
%
   
62,539
   
26.2
%
All Other
   
3,595
           
3,006
           
8,754
           
7,241
       
Gross Margin
 
$
87,306
   
29.4
%
 
$
82,535
   
29.4
%
 
$
241,184
   
28.5
%
 
$
257,311
   
29.4
%
                                                         
Selling, General & Administrative
                                                       
Engine Management
 
$
35,553
   
18.0
%
 
$
34,289
   
17.4
%
 
$
106,415
   
17.7
%
 
$
108,497
   
17.2
%
Temperature Control
   
17,961
   
18.7
%
   
13,665
   
16.8
%
   
46,511
   
19.7
%
   
41,215
   
17.3
%
All Other
   
6,623
           
7,009
           
22,678
           
23,014
       
Selling, General & Administrative
 
$
60,137
   
20.3
%
 
$
54,963
   
19.6
%
 
$
175,604
   
20.8
%
 
$
172,726
   
19.7
%
                                                         
                                                         
Operating Income
                                                       
Engine Management
 
$
21,635
   
11.0
%
 
$
23,519
   
12.0
%
 
$
65,025
   
10.8
%
 
$
79,034
   
12.5
%
Temperature Control
   
8,562
   
8.9
%
   
8,056
   
9.9
%
   
14,479
   
6.1
%
   
21,324
   
8.9
%
All Other
   
(3,028
)
         
(4,003
)
         
(13,924
)
         
(15,773
)
     
Subtotal
   
27,169
   
9.2
%
   
27,572
   
9.8
%
   
65,580
   
7.8
%
   
84,585
   
9.7
%
Restructuring & Integration
   
(6
)
 
0.0
%
   
(1,132
)
 
-0.4
%
   
(3,073
)
 
-0.4
%
   
(3,914
)
 
-0.4
%
Other Income, Net
   
15
   
0.0
%
   
316
   
0.1
%
   
328
   
0.0
%
   
946
   
0.1
%
Operating Income
 
$
27,178
   
9.2
%
 
$
26,756
   
9.5
%
 
$
62,835
   
7.4
%
 
$
81,617
   
9.3
%


STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures

(In thousands, except per share amounts)

   
THREE MONTHS ENDED
SEPTEMBER 30,
   
NINE MONTHS ENDED
SEPTEMBER 30,
 
   
2018
   
2017
   
2018
   
2017
 
   
(Unaudited)
   
(Unaudited)
 
EARNINGS FROM CONTINUING OPERATIONS
                       
                         
GAAP EARNINGS FROM CONTINUING OPERATIONS
 
$
19,273
   
$
17,108
   
$
44,697
   
$
51,736
 
                                 
RESTRUCTURING AND INTEGRATION EXPENSES
   
6
     
1,132
     
3,073
     
3,914
 
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD
   
(144
)
   
(463
)
   
(144
)
   
(463
)
GAIN FROM SALE OF BUILDINGS
   
-
     
(262
)
   
(218
)
   
(786
)
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS
   
(1
)
   
(348
)
   
(742
)
   
(1,251
)
                                 
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS
 
$
19,134
   
$
17,167
   
$
46,666
   
$
53,150
 
                                 
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
                               
                                 
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
 
$
0.84
   
$
0.74
   
$
1.95
   
$
2.22
 
                                 
RESTRUCTURING AND INTEGRATION EXPENSES
   
-
     
0.05
     
0.13
     
0.16
 
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD
   
(0.01
)
   
(0.02
)
   
(0.01
)
   
(0.02
)
GAIN FROM SALE OF BUILDINGS
   
-
     
(0.01
)
   
(0.01
)
   
(0.03
)
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS
   
-
     
(0.02
)
   
(0.03
)
   
(0.05
)
                                 
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
 
$
0.83
   
$
0.74
   
$
2.03
   
$
2.28
 
                                 
OPERATING INCOME
                               
                                 
GAAP OPERATING INCOME
 
$
27,178
   
$
26,756
   
$
62,835
   
$
81,617
 
                                 
RESTRUCTURING AND INTEGRATION EXPENSES
   
6
     
1,132
     
3,073
     
3,914
 
OTHER INCOME, NET
   
(15
)
   
(316
)
   
(328
)
   
(946
)
                                 
NON-GAAP OPERATING INCOME
 
$
27,169
   
$
27,572
   
$
65,580
   
$
84,585
 

MANAGEMENT BELIEVES THAT EARNINGS FROM CONTINUING OPERATIONS, DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS, AND OPERATING INCOME, 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.


STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Balance Sheets

(In thousands)

   
September 30,
2018
   
December 31,
2017
 
   
(Unaudited)
       
             
ASSETS
           
             
CASH
 
$
27,321
   
$
17,323
 
                 
ACCOUNTS RECEIVABLE, GROSS
   
168,846
     
145,024
 
ALLOWANCE FOR DOUBTFUL ACCOUNTS
   
5,537
     
4,967
 
ACCOUNTS RECEIVABLE, NET
   
163,309
     
140,057
 
                 
INVENTORIES
   
318,420
     
326,411
 
UNRETURNED CUSTOMER INVENTORY
   
21,295
     
-
 
OTHER CURRENT ASSETS
   
11,681
     
12,300
 
                 
TOTAL CURRENT ASSETS
   
542,026
     
496,091
 
                 
PROPERTY, PLANT AND EQUIPMENT, NET
   
91,735
     
89,103
 
GOODWILL
   
67,387
     
67,413
 
OTHER INTANGIBLES, NET
   
50,263
     
56,261
 
DEFERRED INCOME TAXES
   
34,907
     
32,420
 
INVESTMENT IN UNCONSOLIDATED AFFILIATES
   
33,785
     
31,184
 
OTHER ASSETS
   
16,284
     
15,095
 
                 
TOTAL ASSETS
 
$
836,387
   
$
787,567
 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
                 
NOTES PAYABLE
 
$
45,000
   
$
57,000
 
CURRENT PORTION OF OTHER DEBT
   
5,980
     
4,699
 
ACCOUNTS PAYABLE
   
84,031
     
77,990
 
ACCRUED CUSTOMER RETURNS
   
53,717
     
35,916
 
ACCRUED CORE LIABILITY
   
30,002
     
11,899
 
OTHER CURRENT LIABILITIES
   
90,221
     
98,393
 
                 
TOTAL CURRENT LIABILITIES
   
308,951
     
285,897
 
                 
OTHER LONG-TERM DEBT
   
26
     
79
 
ACCRUED ASBESTOS LIABILITIES
   
35,319
     
33,376
 
OTHER LIABILITIES
   
18,039
     
14,561
 
                 
TOTAL LIABILITIES
   
362,335
     
333,913
 
                 
TOTAL STOCKHOLDERS' EQUITY
   
474,052
     
453,654
 
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
836,387
   
$
787,567
 


STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Statements of Cash Flows

(In thousands)

   
NINE MONTHS ENDED
SEPTEMBER 30,
 
   
2018
   
2017
 
   
(Unaudited)
 
             
CASH FLOWS FROM OPERATING ACTIVITIES
           
NET EARNINGS
 
$
39,683
   
$
46,623
 
ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
               
DEPRECIATION AND AMORTIZATION
   
17,745
     
17,439
 
OTHER
   
12,220
     
14,065
 
CHANGE IN ASSETS AND LIABILITIES:
               
ACCOUNTS RECEIVABLE
   
(23,428
)
   
(27,753
)
INVENTORY
   
2,761
     
(18,746
)
ACCOUNTS PAYABLE
   
5,193
     
90
 
PREPAID EXPENSES AND OTHER CURRENT ASSETS
   
1,202
     
(4,805
)
SUNDRY PAYABLES AND ACCRUED EXPENSES
   
12,828
     
8,728
 
OTHER
   
(619
)
   
1,120
 
NET CASH PROVIDED BY OPERATING ACTIVITIES
   
67,585
     
36,761
 
                 
                 
CASH FLOWS FROM INVESTING ACTIVITIES
               
ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES
   
(9,852
)
   
-
 
CAPITAL EXPENDITURES
   
(15,633
)
   
(17,710
)
OTHER INVESTING ACTIVITIES
   
37
     
6
 
NET CASH USED IN INVESTING ACTIVITIES
   
(25,448
)
   
(17,704
)
                 
                 
CASH FLOWS FROM FINANCING ACTIVITIES
               
NET CHANGE IN DEBT
   
(10,537
)
   
18,153
 
PURCHASE OF TREASURY STOCK
   
(9,271
)
   
(20,000
)
DIVIDENDS PAID
   
(14,144
)
   
(12,990
)
OTHER FINANCING ACTIVITIES
   
1,382
     
658
 
NET CASH USED IN FINANCING ACTIVITIES
   
(32,570
)
   
(14,179
)
                 
EFFECT OF EXCHANGE RATE CHANGES ON CASH
   
431
     
724
 
NET INCREASE IN CASH AND CASH EQUIVALENTS
   
9,998
     
5,602
 
CASH AND CASH EQUIVALENTS at beginning of Period
   
17,323
     
19,796
 
CASH AND CASH EQUIVALENTS at end of Period
 
$
27,321
   
$
25,398
 



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