FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the Quarterly Period Ended September 30, 1997
------------------
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
Commission file number 1-4743
------
Standard Motor Products, Inc.
-----------------------------
(Exact name of registrant as specified in its charter)
New York 11-1362020
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
37-18 Northern Blvd., Long Island City, N.Y. 11101
- -------------------------------------------- -----
(Address of principal executive offices) (Zip Code)
(718) 392-0200
--------------
(Registrant's telephone number, including area code)
None
----
(Former name, former address and former fiscal year,
if changed since last report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No
--- ---
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date:
Date Class Shares Outstanding
---- ----- ------------------
September 30, 1997 Common Stock 13,125,195
- ------------------ ------------ ----------
<PAGE>
STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES
INDEX TO FINANCIAL AND OTHER INFORMATION
SEPTEMBER 30, 1997
PART 1 - FINANCIAL INFORMATION
------------------------------
Item 1 Page No.
- ------ --------
CONSOLIDATED BALANCE SHEETS
September 30, 1997 and December 31, 1996 2 & 3
CONSOLIDATED STATEMENTS OF EARNINGS AND
RETAINED EARNINGS for the Three-Month and Nine-Month
periods ended September 30, 1997 and 1996 4
CONSOLIDATED STATEMENTS OF CASH FLOWS for the
Nine-Month periods ended September 30, 1997 and 1996 5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 6 - 8
Item 2
- ------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS 9 & 10
PART II - OTHER INFORMATION
---------------------------
Item 6
- ------
Exhibits and Reports on Form 8-K 11
Signature 11
- 1 -
<PAGE>
[CAPTION]
<TABLE>
STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
ASSETS
------
<CAPTION>
September 30, December 31,
1997 1996
- ------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 3,137 $ 4,664
Marketable securities 2 2
Accounts and notes receivable, net of
allowance for doubtful accounts and
discounts of $8,475 (1996 - $5,499) 216,551 156,795
Inventories (Note 2) 187,453 229,210
Deferred income taxes 20,668 20,668
Prepaid expenses and other current assets 9,495 7,131
-------- --------
Total current assets 437,306 418,470
Property, plant and equipment, net of
accumulated depreciation (Note 3) 127,489 126,919
Goodwill, net 41,061 34,417
Other assets (Note 8) 40,059 45,000
-------- --------
Total assets $ 645,915 $ 624,806
-------- --------
-------- --------
</TABLE>
See accompanying notes to consolidated financial statements.
- 2 -
<PAGE>
[CAPTION]
<TABLE>
STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except for shares and per share data)
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
<CAPTION>
September 30, December 31,
1997 1996
- ------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C>
Current liabilities:
Notes payable - banks $ 54,764 $ 74,568
Current portion of long-term debt (Note 6) 23,483 17,492
Accounts payable 43,671 30,619
Sundry payables and accrued expenses 60,956 59,031
Accrued customer returns 17,801 15,061
Payroll and commissions 10,200 9,973
-------- --------
Total current liabilities 210,875 206,744
Long-term debt (Note 6) 175,152 172,387
Deferred income taxes 4,151 4,188
Postretirement benefits other than pensions
and other accrued liabilities 20,663 18,576
-------- --------
Total liabilities 410,841 401,895
Minority interest (318) (429)
Commitments and contingencies (Note 6)
Stockholders' equity (Notes 5 and 6):
Common stock-par value $2.00 per share
Authorized - 30,000,000 shares
Issued - 13,324,476 shares in 1997 and 1996
(including 199,281 and 194,175 shares held as
treasury shares in 1997 and 1996, respectively) 26,649 26,649
Capital in excess of par value 2,693 2,705
Loan to Employee Stock Ownership Plan (ESOP) (1,665) (3,345)
Minimum pension liability adjustment 764 764
Retained earnings 210,585 200,235
Foreign currency translation adjustment 217 71
-------- --------
239,243 227,079
Less: treasury stock-at cost 3,851 3,739
-------- --------
Total stockholders' equity 235,392 223,340
-------- --------
Total liabilities and stockholders' equity $ 645,915 $ 624,806
-------- --------
-------- --------
</TABLE>
See accompanying notes to consolidated financial statements.
- 3 -
<PAGE>
[CAPTION]
<TABLE>
STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
(Dollars in thousands, except for shares and per share data)
(Unaudited) (Unaudited)
<CAPTION>
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
-------------------------- -------------------------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales $ 209,238 $ 187,792 $ 618,285 $ 567,484
Cost of sales 141,584 127,022 420,498 384,643
------- ------- ------- -------
Gross profit 67,654 60,770 197,787 182,841
Selling, general and
administrative expenses 53,037 50,867 166,612 151,447
------- ------- ------- -------
Operating Income 14,617 9,903 31,175 31,394
Other income (expense) - net 352 251 951 1,567
------- ------- ------- -------
14,969 10,154 32,126 32,961
Interest expense 5,306 5,251 15,684 13,818
------- ------- ------- ------
Earnings before taxes and
minority interest 9,663 4,903 16,442 19,143
Minority interest (77) (45) (255) (45)
Income taxes (Note 4) 1,669 1,324 2,686 5,169
------- ------- ------- -------
Net earnings $ 7,917 $ 3,534 $ 13,501 $ 13,929
Retained earnings at
beginning of period 203,718 198,130 200,235 189,837
------- ------- ------- -------
$ 211,635 $ 201,664 $ 213,736 $ 203,766
Less cash dividends for period 1,050 1,050 3,151 3,152
------- ------- ------- -------
Retained earnings at end of period $ 210,585 $ 200,614 $ 210,585 $ 200,614
------- ------- ------- -------
------- ------- ------- -------
Per share data:
- ---------------
Net earnings per share $0.60 $0.27 $1.03 $1.06
----- ----- ----- -----
----- ----- ----- -----
Dividends per common share $.08 $.08 $.24 $.24
---- ---- ---- ----
Average number of common shares 13,131,515 13,131,863 13,131,119 13,131,612
---------- ---------- ---------- ----------
</TABLE>
See accompanying notes to consolidated financial statements.
- 4 -
<PAGE>
[CAPTION]
<TABLE>
STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
<CAPTION>
For the Nine Months Ended
September 30,
-------------------------
1997 1996
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 13,501 $ 13,929
Adjustments to reconcile net earnings to net
cash used in operating activities:
Depreciation and amortization 14,252 12,109
Loss (gain) on disposal of property, plant & equipment 3 (511)
Proceeds from sales of trading securities -- 5,269
Purchases of trading securities -- (6,503)
Change in assets and liabilities, net of effects
from acquisitions:
(Increase) in accounts receivable, net (54,619) (64,494)
Decrease (increase) in inventories 46,542 (2,130)
Decrease (increase) in other assets 6,204 (1,853)
(Decrease) increase in accounts payable 9,909 (5,024)
(Decrease) increase in other current assets and liabilities (1,690) 613
Increase in sundry payables and accrued expenses 4,364 1,696
------- -------
Net cash provided by (used in) operating activities 38,466 (46,899)
Cash flows from investing activities:
Proceeds of held-to-maturity securities -- 6,252
Purchases of held-to-maturity securities -- (163)
Capital expenditures, net of effects from acquisitions (11,410) (14,952)
Payments for acquisitions, net of cash acquired (16,313) (42,408)
------- --------
Net cash (used in) investing activities (27,723) (51,271)
Cash flows from financing activities:
Net (payments) borrowings under line-of-credit agreements (19,804) 62,316
Proceeds from issuance of long-term debt 11,894 35,558
Principal payments of long-term debt (2,904) (6,664)
Reduction of loan to ESOP 1,680 1,680
Proceeds from exercise of employee stock options 29 168
Purchase of treasury stock (153) (147)
Dividends paid (3,151) (3,152)
------- --------
Net cash provided by (used in) financing activities (12,409) 89,759
Effect of exchange rate changes on cash 139 (17)
------- --------
Net (decrease) in cash (1,527) (8,428)
Cash and cash equivalents at beginning of the period 4,664 10,856
------- --------
Cash and cash equivalents at end of the period $ 3,137 $ 2,428
------- --------
------- --------
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest $ 14,975 $ 11,334
Income taxes 2,741 4,686
</TABLE>
- 5 -
<PAGE>
STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1
The accompanying unaudited financial information should be read in conjunction
with the consolidated financial statements, including the notes thereto, for
the year ended December 31, 1996.
The consolidated financial statements include the accounts of the Company and
all domestic and international companies in which the Company has more than a
50% equity ownership. The Company's investments in unconsolidated affiliates
are accounted for on the equity method. All significant inter-company items
have been eliminated.
Management acknowledges its responsibility for the preparation of the
accompanying interim consolidated financial statements which reflect all
adjustments considered necessary, in the opinion of management, for a fair
statement of the results of interim periods presented. The results of
operations for the interim periods are not necessarily indicative of the
results of operations for the entire year.
Where appropriate, certain amounts in 1996 have been reclassified to conform
with the 1997 presentation.
Note 2
Inventories
-----------
(Dollars in thousands)
September 30, December 31,
1997 1996
------------- ------------
(Unaudited)
Finished goods $ 114,696 $ 152,404
Work in process 4,714 4,283
Raw materials 68,043 72,523
------------- ------------
Total inventories $ 187,453 $ 229,210
------------- ------------
------------- ------------
Note 3
Property, Plant and Equipment
-----------------------------
(Dollars in thousands)
September 30, December 31,
1997 1996
------------- ------------
(Unaudited)
Land, buildings and improvements $ 73,268 $ 72,785
Machinery and equipment 97,352 93,446
Tools, dies and auxiliary equipment 9,488 9,196
Furniture and fixtures 22,126 21,323
Leasehold improvements 7,345 7,105
Construction in progress 18,288 12,013
------------- ------------
227,867 215,868
Less accumulated depreciation 100,378 88,949
------------- ------------
Total property, plant and equipment-net $ 127,489 $ 126,919
------------- ------------
------------- ------------
Note 4
The provision for taxes is less than the normal statutory rate primarily
because earnings of a subsidiary operating in Puerto Rico, amounting to
approximately $7,673,000 and $8,934,000 for the nine months ended September,
1997 and 1996, respectively, are exempt from United States income taxes and are
partially exempt from Puerto Rican income taxes. In addition, the Company
utilized the loss carryforward in Canada thereby lowering the effective tax
rate in 1997.
- 6 -
<PAGE>
STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 5
The Company granted 1,000 options in January, 1997 and 5,000 options in May,
1997 and 201,000 in September, 1997 at the stock's fair market value at the
time of issuance.
At September 30, 1997, 1,070,000 shares of authorized but unissued common
stock were reserved for issuance under the Company's stock option plans, of
which 631,000 shares were subject to outstanding options. 199,281 shares held
in treasury will be used to meet requirements for the Company's stock option
program.
249,000 outstanding options were vested at September 30, 1997. 382,000 of the
unvested outstanding options will become vested starting January 7, 1998
through September 18, 2001.
Note 6
Long-Term Debt
--------------
(Dollars in thousands)
September 30, December 31,
1997 1996
------------- ------------
(Unaudited)
Long-term debt consists of:
6.81% senior note payable $ 73,000 $ 73,000
7.85% senior note payable 55,714 55,714
9.47% senior note payable 30,000 30,000
Credit Facility ($20 Million Canadian) 14,444 14,624
AlliedSignal 10,156 --
Intermotor Facilities 7,203 5,464
7.88% - 10.08% purchase obligations 5,302 5,997
Credit Agreement 1,674 3,354
Other 1,142 1,726
------------- ------------
198,635 189,879
Less current portion 23,483 17,492
------------- ------------
Total noncurrent portion of
long-term debt $ 175,152 $ 172,387
------------- ------------
------------- ------------
Under the terms of the $73,000,000 senior note agreement, the Company is
required to repay the loan in seven equal annual installments beginning in
2000.
Under the terms of the $55,714,000 senior note agreement, the Company is
required to repay the loan in six equal annual installments from 1997 through
2002.
Under the terms of the $30,000,000 senior note agreement, the Company is
required to repay the loan in seven (7) varying annual installments beginning
in 1998. Subject to certain restrictions, the Company may make prepayments
without premium beginning in 1998.
Under the terms of the $20,000,000 CDN credit agreement, the Company is
required to repay the loan with four (4) equal annual installments of
$2,000,000 CDN beginning in 1998 with a final payment of $12,000,000 CDN due
in 2002. Subject to certain restrictions, the Company can make prepayments
without premium. The credit agreement has various interest rate options.
Under the terms of the unsecured note agreement with AlliedSignal, the Company
is required to repay $5,156,000 in October of 1997. The remaining $5,000,000
is to be repaid in two equal annual installments of $2,000,000 beginning in
September of 1998 with a final payment of $1,000,000 due in 2000 (See Note 7).
The Company acquired a 73.4% equity interest in Intermotor Holdings Limited
assuming various existing credit facilities which mature by 2003.
- 7 -
<PAGE>
STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 6 (Continued)
The purchase obligations, due under agreements with municipalities, mature in
annual installments through 2003, and are secured by certain property, plant,
and equipment.
The Credit Agreement matures in varying annual installments through 1998 and
bears interest at the lower of 91% of prime rate, or 91% of the "LIBOR" plus
1.092%. The Company also entered into an interest rate swap agreement to
reduce the impact of changes in interest rates on its Credit Agreement. The
swap agreement modifies the interest rate on the Credit Agreement, adjusted
favorably or unfavorably for the spread between 77.52% of the 3-month reserve
unadjusted "LIBOR" and 7.69%. The proceeds of such note were loaned to the
Company's Employee Stock Ownership Plan (ESOP) to purchase 1,000,000 shares of
the Company's common stock to be distributed in accordance with the terms of
the ESOP established in 1989.
Certain loans agreements contain restrictive covenants which require the
maintenance, on a quarterly basis, of minimum working capital and tangible net
worth, as defined, and limit, among other items, investments, indebtedness and
distributions for the payment of dividends and the acquisition of capital
stock. At September 30, 1997, the Company has unrestricted retained earnings
of $39,863,000.
Note 7
In January 1997, the Company acquired the assets of the Filko Automotive
Division of F & B Manufacturing Company for approximately $6,200,000 plus
certain future consulting and non-compete payments. Located in Des Plaines,
Illinois, Filko Automotive assembles and distributes ignition, emissions and
wire products to traditional and retail aftermarket customers in North America
under the Filko and Cobra brands. The acquisition had an immaterial effect on
consolidated net earnings for the nine months ended September 30, 1997.
In July 1997, the Company signed a letter of intent to exchange its brake
business for the temperature control business of Moog Automotive, Inc., a
subsidiary of Cooper Industries. This anticipated transaction will involve an
exchange of certain assets, assumption of certain liabilities, and possible
payment of cash to achieve an equivalent exchange value. These two businesses
each had revenues of approximately $150 million in 1996. The Company has filed
this transaction with the Department of Justice and is currently awaiting
regulatory approval of the exchange, which is anticipated in December of 1997.
In September 1997, the Company acquired the oxygen sensor manufacturing
business of AlliedSignal for approximately $10,200,000. While presently located
in Fostoria, Ohio, the Company plans to integrate the equipment and inventory
within its existing facility. The acquisition had no effect on consolidated net
earnings for the nine months ended September 30, 1997.
In October 1997, the Company signed a letter of intent to sell its Service Line
business to R&B, Inc. This anticipated transaction will involve the sale of
select assets of Champ and APS Service Lines and Pik-A-Nut Fastener Line.
Although the final consideration is uncertain, the Company anticipates that it
will be incurring a loss on the sale of the business. The loss on sale will be
reflected in the Company's fourth quarter results once the final terms of a
purchase agreement are known. Closing on the sale is expected in mid-1998.
Note 8
Other assets primarily consist of deferred new customer acquisition costs,
certain held-to-maturity securities, unamortized customer supply agreements,
equity in joint ventures and pension assets.
- 8 -
<PAGE>
STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
As of September 30, 1997, the Company had stockholders' equity of $235,392,000
and working capital of $226,431,000. The Company expects capital expenditures
for the remainder of 1997 to be approximately $4,000,000 primarily for new
machinery and equipment. During the first quarter of 1997, the Company
utilized funds from its lines of credit to acquire Filko Automotive. At
September 30, 1997, the Company had unused lines of credit aggregating
approximately $69,000,000. In October of 1997, approximately $5,000,000 of
these available lines were utilized to meet the terms of the purchase agreement
with AlliedSignal with the balance of the note paid annually through the year
2000. The Company is in the process of expanding its credit lines with a
three-year secured $185,000,000 revolving credit bank facility. This new credit
facility will replace the current short-term lines. Completion of this new
credit facility is expected in January 1998. This facility will be used as a
source of funding working capital requirements and capital expenditures. The
Company anticipates that its present sources of funds under existing credit
lines and the future sources described above are adequate to meet its needs.
During the nine months ended September 30, 1997, total debt decreased by
$11,048,000. This was primarily due to reductions in inventory, at all
operations, a reduction in other assets and an increase in payables partially
offset by an increase in an accounts receivable and the funding required to
acquire Filko. During the nine-month period ended September 30, 1997, accounts
receivable increased by $59,756,000 primarily due to the seasonal dating
programs extended by the Climate Control and Brake Parts Divisions and an
increase in receivables resulting from the Filko acquisition.
In July 1997, the Company signed a letter of intent to exchange its brake
business for the temperature control business of Moog Automotive, Inc., a
subsidiary of Cooper Industries. This anticipated transaction will involve an
exchange of certain assets, assumption of certain liabiliites, and possible
payment of cash to achieve an equivalent exchange value. These two businesses
each had revenues of approximately $150 million in 1996. The Company has filed
this transaction with the Department of Justice and is currently awaiting
regulatory approval of the exchange, which is anticipated in December of 1997.
In October 1997, the Company signed a letter of intent to sell its Service Line
business to R&B, Inc. This anticipated transaction will involve the sale of
select assets of Champ and APS Service Lines and Pik-A-Nut Fastener Line.
Although the final consideration is uncertain, the Company anticipates that it
will be incurring a loss on the sale of the business. The loss on sale will be
reflected in the Company's fourth quarter results once the final terms of a
purchase agreement are known. Closing on the sale is expected in Mid-1998.
INTERIM RESULTS OF OPERATIONS
- -----------------------------
Comparison of the three months ended September 1997 to the three months
- -----------------------------------------------------------------------
ended September 30, 1996.
- -------------------------
Net sales for the current quarter increased $21,446,000 or 11.4% from the
comparable period in 1996 primarily due to recent acquisitions and a
significant sales increase within the Climate Control Division. Excluding
the revenues from acquisitions not present in last year's third quarter, net
sales increased in the third quarter of 1997 by 6.6%.
The gross margin percentage for the third quarter of 1997 of 32.3% was
slightly below (0.1%) the gross margin percentage of 32.4% from the comparable
period one year ago. While the gross margin was relatively unchanged, an
overall favorable decrease (1.9%) in sales deductions as a percentage of net
sales was offset by increased sales of lower margins products within the
Climate Control Division.
- 9 -
<PAGE>
INTERIM RESULTS OF OPERATIONS (Continued)
- -----------------------------------------
Comparison of the three months ended September 30, 1997 to the three months
- ---------------------------------------------------------------------------
ended September 30, 1996.
- -------------------------
Selling, general and administrative (S.G. & A.) expenses increased by
$2,170,000 over the comparable quarter in 1996. As a percentage of net sales,
S.G. & A. decreased by one and eight tenths of a percentage point (25.3%
versus 27.1% in 1996). The S.G. & A. increase was primarily attributable to
the Filko acquisition and variable selling and distribution expenses related to
the $21,446,000 sales growth. Both of these elements of cost will be reduced,
as strict controls on new customer acquisition costs impact future quarters and
Filko becomes fully integrated.
Other income - net increased by $101,000 in 1997 as compared to 1996 primarily
due to higher earnings from joint ventures offset by an increase in the loss
on sale of accounts receivable.
Interest expense for the quarter increased by $55,000 as compared to 1996.
Reductions in debt were offset by higher interest rates.
Taxes based on earnings decreased by $345,000 as compared to 1996 primarily
due to improved earnings before taxes partially offset by the tax benefits
from the loss carryforward in Canada.
INTERIM RESULTS OF OPERATIONS
- -----------------------------
Comparison of the nine months ended September 30, 1997 to the nine months
- -------------------------------------------------------------------------
ended September 30, 1996.
- -------------------------
Net sales increased $50,801,000 or 9.0% from the comparable period in 1996
primarily due to sales resulting from recent acquisitions and a sales increase
within the Climate Control Division. Excluding the revenues from acquisitions
not present in last year's comparable period, net sales increased in 1997 by
0.7%.
The gross margin percentage for the nine-month period in 1997 of 32.0% was
slightly below the margin of 32.2% from the comparable period in 1996. This
increase in cost of goods sold primarily reflects the Company's continued
expansion into lower margin products. As compared to 1996, the current
year's gross margin percentage was favorably affected by an overall decrease
(1.2%) in sales deductions as a percentage of net sales offset by increased
sales of lower margin products within the Climate Control Division.
Selling, general and administrative (S.G. & A.) expenses increased by
$15,165,000 over the comparable period in 1996. As a percentage of net sales,
S.G. & A. increased by two tenths of a percentage point (26.9% in 1997
versus 26.7% in 1996). This S.G. & A. increase was primarily attributable to
$16,400,000 in costs related to new acquisitions not present in 1996, including
goodwill amortization expenses. Higher variable selling and distribution
expenses due to increased sales and new customer acquisition costs related
primarily to a major customer changeover also contributed to the S.G. & A.
increase.
Other income - net decreased by $616,000 primarily due to a decrease in
investment income and an increase in the loss on sale of accounts receivable
partially offset by higher earnings from joint ventures.
Interest expense increased by $1,866,000 as compared to 1996 due primarily to
higher average borrowings needed to finance recent acquisitions and to support
higher accounts receivable partially offset by reductions in inventory, at all
operations.
Taxes based on earnings decreased by $2,483,000 as compared to 1996 primarily
due to reduced earnings before taxes coupled with the tax benefits from the
loss carryforward in Canada.
- 10 -
<PAGE>
PART II - OTHER INFORMATION
---------------------------
Item 6. Exhibits and Reports on Form 8-K
- ------------------------------------------
(a) Exhibit(s)
---------
Number Description Method of Filing
------ ----------- ----------------
27 Financial Data Schedule Filed with this Document
(b) Reports on Form 8-K
-------------------
There were no reports on Form 8-K filed for this quarter.
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
STANDARD MOTOR PRODUCTS, INC.
----------------------------
(Registrant)
November 14, 1997 Michael J. Bailey
- ----------------- -----------------
(Date) Vice President Finance,
Chief Financial Officer
- 11
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 3,137
<SECURITIES> 2
<RECEIVABLES> 225,026
<ALLOWANCES> 8,475
<INVENTORY> 187,453
<CURRENT-ASSETS> 437,306
<PP&E> 227,867
<DEPRECIATION> 100,378
<TOTAL-ASSETS> 645,915
<CURRENT-LIABILITIES> 210,875
<BONDS> 175,152
0
0
<COMMON> 26,649
<OTHER-SE> 208,743
<TOTAL-LIABILITY-AND-EQUITY> 645,915
<SALES> 618,285
<TOTAL-REVENUES> 618,285
<CGS> 420,498
<TOTAL-COSTS> 420,498
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 3,189
<INTEREST-EXPENSE> 15,684
<INCOME-PRETAX> 16,442
<INCOME-TAX> 2,686
<INCOME-CONTINUING> 13,501
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 13,501
<EPS-PRIMARY> 1.03
<EPS-DILUTED> 1.03
</TABLE>
