Standard Motor Products, Inc. · NYSE:SMP
Standard Motor Products — Q1 2021 Earnings Presentation
26 slides from Standard Motor Products's earnings presentation, 2021
Slide 1: Q1 2021 Investor Presentation
Standard Motor Products, Inc. Q1 2021 Investor Presentation MP® 1
Slide 2: Forward Looking Statements
l~MP® ~~ard Motor Products, Inc. Forward Looking Statements You should be aware that except for historical information, the matters discussed here in are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements, including proje
Slide 3: Industry and Business Overview
Industry and Business Overview MP® 3
Slide 4: Why Invest in SMP?
l~MP® ~~ard Motor Products, Inc. Why Invest in SMP? oOo Longstanding business led by experienced management team L[.l.l Leader in engine management and temp control aftermarket Significant share of stable industry with positive outlook Proven strategy for long-term outperformance Superior shareholde
Slide 5: SMP Snapshot
l~MP® ~~ard Motor Products, Inc. SMP Snapshot 102 Years in Business • Founded 1919 • $1.1 Billion 2020 Sales • 4,300 Employees Worldwide LAWRENCE I. SILLS Chairman of the Board ERIC P. SILLS Director, CEO JAMES J. BURKE Chief Operating DALE BURKS EVP and Chief NATHAN ILES Chief Financial and Preside
Slide 6: SMP Snapshot: Professionally Recognized Brands
l~MP® ~~ard Motor Products, Inc. SMP Snapshot Professionally Recognized Brands ,fi!J!p "~ EIHLIR.iJWD. £.___,,,,,,,,,,,, Quallty,Coverage, service STANDARD l~MP"'" JI.CJ.WINDOW0 DOOR HAYDEN® , .. .. .. COMPONENTS t·W 1MM•M'M•MMM'M3 ~~UE STREAK,,,. Belden· Ge SORENSEN Pollak® Significant Supplier to
Slide 7: SMP Facilities – Global Footprint
SMP Facilities – Global Footprint 3 Million sq. ft. • 13 Manufacturing Plants • 6 Distribution Centers • 9 Offices 7
Slide 8: Favorable Industry Trends
l~MP® ~~ard Motor Products, Inc. Favorable Industry Trends Vehicle Population is increasing The car parc continues to get older U.S. Light Vehicle Parc Average Age of Cars and Light Trucks 290 12.0 Millions 11.3 11.4 11.5 11.6 11.6 11.7 11.8 11.9 278 281 260 270 272 8.0 264 258 249 253 230 4.0 200 0
Slide 9: Strategy Overview
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Slide 10: Strategic Objectives
l~MP® ~~ard Motor Products, Inc. Strategic Objectives • External programs that provide real value to our customers Premium Value • Best-in-class full-line, full-service supplier of premium engine Proposition management and temperature control products • Internal programs that make us a stronger comp
Slide 11: Core Strategy
CORE STRATEGY To be the best full-line, full-service supplier of premium engine management and temperature control products The SMP Value Proposition Our suite of products and services is designed to provide all the needed support for our customers and the technicians who install our parts Premium Q
Slide 12: Drive for Continuous Improvement
l~MP® ~~ard Motor Products, Inc. Drive for Continuous Improvement • Increased Manufacturing – Engineering resources up >30% from 2013 – 80% of capital budget for tooling projects – Acquisitions: a great “shortcut” % of Hrs in Low Cost Plants • Low Cost Manufacturing 81% 78% – Operations in Mexico &
Slide 13: Successful Growth Programs
Successful Growth Programs ADVANCED ICE BEYOND ICE TEMPERATURE CATEGORIES CATEGORIES CONTROL • VVT Components • Battery Management • ECV Compressors • 500+ SKUs, Manuf. Bialystok • Battery Current Sensors • 250+ SKUs • Power Distribution • 10.3M VIO by 2021 • EVAP Components • Manuf. Independence &
Slide 14: Successful Growth Programs: Strategic Acquisitions
l~MP® ~~ard Motor Products, Inc. Successful Growth Programs Strategic Acquisitions 2011 2012 2013 2014 2016 2017 2019 • 13 Acquisitions in Recent Years ~ • Primary Focus c::::x:7 – Bolt-on: acquire competitors ~~ ~ – Vertical integration: acquire suppliers 5T-DARDMOTORU::.Sl".URm't" – New but relate
Slide 15: Return to Shareholders
l~MP® ~~ard Motor Products, Inc. Return to Shareholders Dividend Increase Quarterly Dividend $0.23 $0.25 $0.25 $0.21 $0.15 $0.17 $0.19 $0.09 $0.11 $0.13 $0.07 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* 2021 * Dividend paid out for two quarters only due to COVID-19 pandemic Treasury Stock Buy
Slide 16: SMP Cash Utilization
l~MP® ~~ard Motor Products, Inc. SMP Cash Utilization 120 ■ Capital Expenditures ■ Dividends 100 ■ Cash Acquisitions ■ Buybacks 0.4 4.1 10.7 Cash Uses ($M) 80 67.3 109.5 10.0 60 5.0 24.4 Buybacks 14.9 43.5 70.5 287.1 37.7 6.8 9.9 Acquisitions 40 38.6 19.6 6.9 13.5 17.3 133.7 12.8 15.4 18.9 20.6 13.7
Slide 17: March 2021 YTD Results
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Slide 18: Year-Over-Year Performance Measures
l~MP® ~~ard Motor Products, Inc. Year-Over-Year Performance Measures Consolidated Net Sales ($M) Gross Margin $1,200 35.0% 30.3% $1,000 $1,116.1 $1,092.1 $1,137.9 $1,128.6 30.0% 25.0% 29.8% - 27.7% - 27.5% - 27.7% - - $800 20.0% $600 15.0% 29.3% 28.6% 29.2% 29.8% $400 10.0% $200 $282.4 $283.8 $276.6
Slide 19: Substantial Gross Margin Improvement
l~MP® ~~ard Motor Products, Inc. Substantial Gross Margin Improvement Engine Management 34% Future Target: 29% + 32% 31.0% 31.3% 30.7% 30.4% 29.6% 30.1% 30% 29.4%* 28.2% 28.6%* 28% 26% 25.0% 25.6% 24.3% 26.2% 26.7% 24% 25.6% 25.3% 25.2% 22% 23.1% 23.5% 21.8% 22.1% 21.6% 21.9% Temperature Control 20%
Slide 20: Income Statement Non-GAAP
l~MP® ~~ard Motor Products, Inc. Income Statement Non-GAAP ($ in millions) March 2021 YTD March 2020 YTD Amount % of Sales Amount % of Sales Net Sales $ 276.6 100.0% $ 254.3 100.0% Gross Profit 83.8 30.3% 70.4 27.7% SG&A Expenses 54.5 19.7% 55.9 22.0% Operating Profit 29.3 10.6% 14.5 5.7% Other Inco
Slide 21: Condensed Balance Sheet
l~MP® ~~ard Motor Products, Inc. Condensed Balance Sheet Actual Q1 2021, Q1 2020 ($ in millions) Dollars Ratios 2021 2020 2021 2020 Cash and Equivalents $ 17.1 $ 13.3 Accounts Receivable/DSO 174.1 152.2 54 50 Inventory/Turns 390.9 370.9 2.3 2.2 Unreturned Customer Inventory 21.1 19.4 Other Assets 37
Slide 22: Condensed Statement of Cash Flows
l~MP® ~~ard Motor Products, Inc. Condensed Statement of Cash Flows (IN MILLIONS) March YTD Full Year 2021 2020 2020 NET INCOME $21.0 $8.6 $57.4 DEPRECIATION & AMORTIZATION 6.5 6.5 26.3 ACCOUNTS RECEIVABLE 23.5 (28.1) (71.9) INVENTORY (46.3) (5.3) 18.0 ACCOUNTS PAYABLE 8.4 (11.9) 7.4 OTHER OPERATING
Slide 23: Appendix
Appendix LA \\ NWO Yoo VT
Slide 24: Reconciliation of GAAP and Non-GAAP Measures
l~MP® Reconciliation of GAAP and ~~ard Motor Products, Inc. Non-GAAP Measures ($ in thousands, except per share amounts) THREE MONTHS MARCH 31, 2021 2020 2019 2018 2017 (Unaudited) EARNINGS FROM CONTINUING OPERATIONS GAAP EARNINGS FROM CONTINUING OPERATIONS $ 22,164 $ 9,621 $ 13,104 $ 8,597 $ 16,367
Slide 25: Reconciliation of GAAP and Non-GAAP Measures (cont'd)
l~MP® Reconciliation of GAAP and ~~ard Motor Products, Inc. Non-GAAP Measures (cont’d) ($ in thousands) THREE MONTHS MARCH 31, 2021 2020 2019 2018 2017 (Unaudited) EBITDA WITHOUT SPECIAL ITEMS GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES $ 29,751 $ 12,926 $ 17,514 $ 11,644 $ 25,874 DEPRECIA
Slide 26: Thank You
Thank You LA \\ NWO Yoo VT
Standard Motor Products — Q1 2021 Earnings Presentation on 6ix