Standard Motor Product Inc.
) reported a 23.7% rise in adjusted earnings per share to 73
cents in the third quarter of 2012 from 59 cents in the year-ago
quarter, surpassing the Zacks Consensus Estimate by 9 cents.
Profits went up 22.6% to $16.8 million from $13.7 million in the
Total revenue increased 16.8% to $276.0 million, beating the
Zacks Consensus Estimate of $258.0 million. The year-over-year
growth in revenues was attributable to the positive impact from
the company's recent acquisitions and strong performance of the
company's Temperature Control segment.
Gross profit improved 20.7% to $77.8 million or 28.2% of sales
from $64.5 million or 27.3% in the third quarter of 2011. Cost of
sales increased 15.4% to $198.2 million from $171.7 million a
year ago. Selling, general and administrative expenses rose 22.2%
to $50.9 million from $41.7 million in the year-ago quarter.
Operating income increased 17% to $26.7 million from $22.8
million in the third quarter of 2011. Operating margin was 9.7%
versus 9.6% in the year-ago quarter.
Revenues from the
segment rose 6.4% to $175.8 million from $165.2 million in the
year-ago quarter. The segment gross profit went up 17% to $51.3
million or 29.2% of sales from $43.8 million or 26.5% a year ago.
Operating profit grew 15.1% to $21.4 million from $18.6 million
in the corresponding quarter last year.
Revenues from the
segment climbed 39.7% to $95.2 million. Gross profit improved
33.5% to $23.2 million or 24.3% of sales from $17.3 million or
25.4% in the prior-year quarter. Operating profits increased
16.3% to $9.1 million from $7.8 million.
segment shot up 71.5% to $4.9 million. Gross profit rose
marginally by 1.7% to $3.4 million from $3.3 million. However,
the company incurred an operating loss of $3.6 million, which is
flat compared with the corresponding quarter of 2011.
Standard Motors had cash balance of $10.9 million as of September
30, 2012, which is in line with the same as of December 31, 2011.
Long-term debt of the company was $222 thousand as of September
30, 2012, down from $299 thousand as of December 31, 2011.
In the third quarter of 2012, the company completed the
acquisition of Compressor Works for $38.6 million, repurchased
$5.0 million worth shares and paid $12.8 million of debt. The
company had $60.5 million in total debt as of September 30, 2012.
The company will be paying a quarterly dividend of 9 cents per
share on the outstanding common stock on December 3, 2012 to
shareholders of record as of November 15, 2012.
Standard Motor, based in Long Island City, New York, was founded
in 1919. The company is one of the leading manufacturers,
distributors and marketers of automotive replacement parts in the
U.S. Further, it enjoys strong brand recognition globally.
Standard Motor is optimistic about the recent acquisitions of
BLD, Forecast Trading, and Compressor Works. The integration will
generate savings by optimizing the product costs and operating
expenses, mostly in 2013. However, the company's high dependence
Advance Auto Parts Inc.
O'Reilly Automotive Inc.
) for its business may adversely affect the results of the
Currently, Standard Motor's retains a Zacks #3 Rank, which
translates into a short-term (1 to 3 months) Hold rating and we
have a long-term (more than 6 months) Neutral recommendation on
ADVANCE AUTO PT (AAP): Free Stock Analysis
O REILLY AUTO (ORLY): Free Stock Analysis
STANDARD MOTOR (SMP): Free Stock Analysis
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