Standard Motor Products (SMP) Q4 2023 earnings summary

Executive summary

• FY2023 revenue was $1,358.3M, adjusted EBITDA was $126.7M and adjusted diluted EPS was $2.92; revenue and earnings declined YoY.

• Lower Vehicle Control and Temperature Control results were partly offset by Engineered Solutions growth.

Financial highlights

• FY2023 revenue was $1,358.3M vs. $1,371.8M; gross margin was 28.6% vs. 27.9%.

• FY2023 adjusted EBITDA was $126.7M vs. $146.1M; adjusted continuing-operations earnings were $64.8M vs. $79.4M.

• FY2023 continuing-operations earnings were $63.1M; diluted EPS was $2.85, while adjusted diluted EPS was $2.92.

• Q4 revenue was $290.8M vs. $308.2M; adjusted EBITDA was $18.3M vs. $31.9M.

• Q4 continuing-operations earnings were $7.2M vs. $8.5M; adjusted earnings were $8.2M vs. $15.1M, with adjusted diluted EPS of $0.37 vs. $0.69.

Outlook and guidance

• FY2024 sales growth is expected to be flat to low single digits; adjusted EBITDA margin guidance is 9.0%–9.5%.

• Shawnee distribution-center transition costs are expected at $7M–$8M; planned capital expenditures are $25M for automation, equipment and racking.

• The new distribution center is expected to partially open in 2024 and fully open in 2025, expanding capacity and distribution-footprint resilience.