Standard Motor Products, Inc. · NYSE:SMP
Standard Motor Products — Q4 2024 Earnings Presentation
25 slides from Standard Motor Products's earnings presentation, February 2025
Slide 1: Investor Presentation Fourth Quarter 2024
Investor Presentation Fourth Quarter 2024 NYSE: SMP
Slide 2: Safe Harbor – Forward Looking Statements
Safe Harbor – 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 of 1995. Forward looking statements, including projections and anticipat
Slide 3: Standard Motor Products: An Overview
Standard Motor Products: An Overview Who We Are: Standard Motor Products is a leading global manufacturer and distributor of premium replacement parts in the automotive aftermarket and a custom-engineered solutions provider to vehicle and equipment manufacturers in diverse non-aftermarket end market
Slide 4: SMP Investment Thesis
SMP Investment Thesis 1. A leading market position in global automotive aftermarket parts Serves a stable and growing do-it-for-me (DIFM) market that 2. benefits from non-discretionary vehicle repairs and increasing vehicle complexity that will require professions installment Diversification in Euro
Slide 5: Nissens Acquisition Highlights
Expansion of SMP’s Aftermarket Business Nissens Acquisition Highlights Aftermarket Revenue with Nissens2 • Before the acquisition of November 2024, SMP’s aftermarket business was already a North American leader for Vehicle and Temperature Control $1,420 products. • Acquisition helps turn SMP into an
Slide 6: Creating a Powerful Global Aftermarket Presence
Creating a Powerful Global Aftermarket Presence Leading European supplier for Thermal Leading North American supplier for Vehicle Management products with a growing array Control and Temperature Control products of Vehicle Control (Engine Efficiency) technologies Shared go-to-market strategy of bein
Slide 7: Diversified Manufacturing Footprint
Diversified Manufacturing Footprint 7
Slide 8: Our Operating Markets
Our Operating Markets North American Aftermarket European Aftermarket Engineered Solutions A mission to be the best full-line, full-service Contains the recently acquired Nissens Offers a wide range of custom-designed supplier of premium Vehicle Control and business, a leading manufacturer and produ
Slide 9: North American Aftermarket
North American Aftermarket Business Overview Key Market Drivers & Data • Contains the Vehicle Control and Temperature Control segments. • The Do-it-for-me (DIFM) has been steadily increasing since 2020 (~11% CAGR1) as cars continue to become more complicated. • Full-line coverage that delivers 80,00
Slide 10: European Aftermarket
European Aftermarket Business Overview Key Market Drivers & Data • Contains the recently acquired Nissens business, a leading • There are ~280 million2 cars in Europe as of 2023. manufacturer and distributor of aftermarket powertrain cooling • The average age of a car in Europe is 12.3 years2 as of
Slide 11: Engineered Solutions
Engineered Solutions Business Overview Key Market Drivers & Data • Offers a wide range of custom-designed products to vehicle and • Growth is driven by new customers, cross-selling to existing equipment manufacturers across diverse global end markets, including customers, new products and increasing
Slide 12: Financial Overview
SMP Standard Motor Products, Inc Financial Overview
Slide 13: Sales by Market Segment
Sales by Market Segment ($ in millions) Sales by Market Segment1 Sales by Geography $285 18% $277 $270 $283 $237 $159 3% 8% $1,062 $1,103 $1,076 $1,143 $969 71% 2020 2021 2022 2023 2024 USA Rest of North America North American Aftermarket European Aftermarket Engineered Solutions Rest of World Europ
Slide 14: Balance Sheet
Balance Sheet ($ in millions) • The recent Nissens acquisition will help improve future free cash flow in year 2025. • Cash flow will be used help lower debt balance over time. • With the addition of Nissens, our target ratio is under 2.0x levered by the end of 2026. Free Cash Flow1 Capital Expendit
Slide 15: Capital Allocation Priorities
Capital Allocation Priorities CapEx Investment Dividend Debt Paydown Opportunistic M&A Share Repurchases • Support organic • Continue to return • Continue to pay • Actively looking for • Spent $10.4mm in growth through capital to down debt to achieve deals that align with 2024 to repurchase reinvest
Slide 16: SMP Investment Thesis
SMP Investment Thesis 1. A leading market position in global automotive aftermarket parts Serves a stable and growing do-it-for-me (DIFM) market that 2. benefits from non-discretionary vehicle repairs and increasing vehicle complexity that will require professions installment Diversification in Euro
Slide 17: Contact Investor Relations
Contact Investor Relations: Tony Cristello, VP of IR & Corporate Development investors@smpcorp.com
Slide 18: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations
Slide 19: Income Statement Non-GAAP
Income Statement Non-GAAP (In millions, except per share amounts) THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, 2024 2023 2024 2023 Vehicle Control Revenue $ 187.4 $ 178.6 $ 762.6 $ 737.9 Gross Margin 59.6 31.8% 58.8 32.9% 244.1 32.0% 238.2 32.3% Selling, General & Administrative
Slide 20: Income Statement Non-GAAP Cont.
Income Statement Non-GAAP Cont. (In millions, except per share amounts) THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, 2024 2023 2024 2023 Engineered Solutions Revenue $ 62.2 $ 67.5 $ 285.5 $ 282.6 Gross Margin 10.7 17.2% 10.4 15.4% 49.9 17.5% 54.8 19.4% Selling, General & Administ
Slide 21: Income Statement Non-GAAP Cont. – Consolidated Results
Income Statement Non-GAAP Cont. (In millions, except per share amounts) THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, 2024 2023 2024 2023 Consolidated Results Revenue $ 343.4 $ 290.8 $ 1,463.8 $ 1,358.3 Gross Margin 104.1 30.3% 81.5 28.0% 426.4 29.1% 388.8 28.6% Selling, General &
Slide 22: Balance Sheet & Cash Flow Metrics
Balance Sheet & Cash Flow Metrics (In millions) DECEMBER 31, 2024 2023 Working Capital Stats Accounts Receivable, Net $ 210.7 $ 160.3 Inventories $ 624.9 $ 507.1 Cash Flow Stats (YTD) Operating cash flows $ 76.7 $ 144.3 Capex $ (44.0) $ (28.6) M&A $ (372.5) $ (4.0) Dividends $ (25.3) $ (25.2) Share
Slide 23: Reconciliation of GAAP & Non-GAAP Measures
Reconciliation of GAAP & Non-GAAP Measures ($ in thousands, except per share amounts) TWELVE MONTHS DECEMBER 31, 2024 2023 2022 2021 2020 (Unaudited) EARNINGS FROM CONTINUING OPERATIONS GAAP EARNINGS FROM CONTINUING OPERATIONS $ 53,628 $ 63,144 $ 73,042 $ 99,353 $ 80,417 RESTRUCTURING AND INTEGRATIO
Slide 24: Reconciliation of GAAP & Non-GAAP Measures Cont.
Reconciliation of GAAP & Non-GAAP Measures Cont. ($ in thousands) TWELVE MONTHS DECEMBER 31, 2024 2023 2022 2021 2020 (Unaudited) EBITDA WITHOUT SPECIAL ITEMS ATTRIBUTABLE TO SMP GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES $ 73,989 $ 81,716 $ 98,332 $ 130,465 $ 107,379 DEPRECIATION & AMORT
Slide 25: Reconciliation of GAAP & Non-GAAP Measures by Segment
Reconciliation of GAAP & Non-GAAP Measures by Seg. (In thousands) TWELVE MONTHS ENDED DECEMBER 31, 2024 TWELVE MONTHS ENDED DECEMBER 31, 2023 Vehicle Temperature Engineered Nissens Vehicle Temperature Engineered Nissens All Other Consolidated All Other Consolidated Control Control Solutions Automoti
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