Standard Motor Products, Inc. · NYSE:SMP
Standard Motor Products — Q3 2003 Earnings Presentation
19 slides from Standard Motor Products's earnings presentation, November 2003
Slide 1: Standard Motor Products, Inc.
Standard Motor Products, Inc.
Slide 2: Forward Looking Statements
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, as amended. Forward- looking statements, including projections and anticipated level
Slide 3: James J. Burke, Vice President & Chief Financial Officer
James J. Burke Vice President & Chief Financial Officer
Slide 4: 3rd Quarter Earnings
3rd Quarter Earnings (in millions) Including DEM 3rd Quarter 2003 3rd Quarter 2002 Amount % of Sales Am ount % of Sales Net Sales $ 214.5 100.0% $ 183.6 100.0% Gross Profit 58.3 27.2% 51.0 27.7% Operating Expenses 50.1 23.4% 33.9 18.4% Operating Profit 8.2 3.8% 17.1 9.3% Earnings, continuing opts $
Slide 5: 9 Month Earnings
9 Month Earnings Ended September 30 (in millions) Including DEM YTD Sept. 2003 YTD Sept. 2002 Amount % of Sales Amount % of Sales Net Sales $ 516.3 100.0% $ 490.6 100.0% Gross Profit 136.6 26.5% 129.0 26.3% Operating Expenses 115.5 22.4% 99.4 20.3% Operating Profit 21.1 4.1% 29.6 6.0% Earnings, Cont
Slide 6: Operating Income Trend
Operating Income Trend 9 Months, YTD 2001 - 2003 Engine Management (excludes DEM) $35.0 15.0% 13.7% 12.8% $30.0 9.5% $25.0 10.0% $20.0 21.0 32.0 29.5 5.0% $15.0 $10.0 0.0% $5.0 -6.4% -3.7 $- -5.0% '01 '02 '03 '03 $(5.0) DEM (3 Mos) $(10.0) -10.0% MM' $ % to Sls
Slide 7: Condensed Balance Sheet
Condensed Balance Sheet as of September 30 (in millions) Including DEM Dollars Ratios 2003 2002 2003 2002 Cash and Equivalents $ 17.0 $ 16.9 Accounts Receivable/DSO's 234.5 191.7 103 96 Inventory/Turns 252.1 161.7 2.2 2.3 Other Assets 256.4 195.1 Total Assets $ 760.0 $ 565.4 Current Liabilities $ 20
Slide 8: Lawrence I. Sills, Chairman & Chief Executive Officer
Lawrence I. Sills Chairman & Chief Executive Officer
Slide 9: DEM Integration Update
DEM Integration Update
Slide 10: Original Goals
Original Goals Maintain Customer Base Integration Timetable 12 - 18 months Integration Costs - $35 million Annual Savings - $55 million
Slide 11: DEM Acquisition: Current Facilities
DEM Acquisition Current DEM Locations — 9 Facilities Branford, CT Franklin Park, IL Guilford, CT Argos, IN Northvale, NJ Mishawaka, IN Independence, KS Nashville, TN Manufacturing: 5 Distribution: 2 Offices: 2
Slide 12: DEM Acquisition: Post-Consolidation Facilities
DEM Acquisition Post-Consolidation — 2 Facilities Independence, KS Mishawaka, IN Before After Manufacturing: 5 2 Distribution: 2 0 Offices: 2 0
Slide 13: DEM Planned Integration Costs
DEM Planned Integration Costs ($ in millions) July 03 -Dec 04 Employee Related $21 – 22 (Severance, Outplacement, Stay Bonus) Equipment/Inventory Move Costs 5– 6 Facility Repair & Exit Costs 2– 3 Lease Exit Costs 1– 2 Other 1– 2 $30 - 35
Slide 14: DEM Planned Savings
DEM Planned Savings ($ in millions) Year 2005 Headcount Reductions $28 MIS Savings 6 Facility Savings 5 Material Savings 8 Marketing, Distr., G & A Savings 8 $55
Slide 15: All on Target
All on Target Maintained All Accounts Initial Moves Begun Integration Costs on Target Savings Goal on Target
Slide 16: Initial Moves Begun
Initial Moves Begun Reman. Computers to Toronto Complete Fuel Injectors to Greenville November Distribute Niehoff Brand from Reno December Other Moves On Schedule
Slide 17: Headcount Analysis
Headcount Analysis June 03 Sept 03 Projected DEM Eng Mgt 1,800 SMP Eng Mgt 1,400 Net Savings Combined Eng Mgt Hrly 2,300 2,375 2,000 300 Slry 900 775 600 300 Total 3,200 3,150 2,600 600
Slide 18: Sample Material Savings
Sample Material Savings Manufacturing “Best Practice” Wire Sets to Kansas/Reynosa $2,500,000 HEI Coils, LIC vs. Branford $300,000 Digital EGR Valves to LIC $200,000 One Makes, The Other Buys Outsourced product to Puerto Rico $1,100,000 Coil-on-Plug to Greenville $300,000 Best Vendor First 35 parts I
Slide 19: Standard Motor Products, Inc.
Standard Motor Products, Inc.
Standard Motor Products — Q3 2003 Earnings Presentation on 6ix