Standard Motor Products Inc. (NYSE:SMP) Q4 2017 Earnings Conference Call - Preliminary Transcript

Feb 20, 2018 • 11:00 am ET

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Standard Motor Products Inc. (NYSE:SMP) Q4 2017 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Standard Motor Products Fourth Quarter Earnings Release. At this time all participants are in a listen-only mode. Later (inaudible) opportunity to ask question during the question-and-answer session. (Operator Instructions) Please note, today's call may be recorded, and I will be standing by if you should need any assistance.

It is now my pleasure to turn the conference over to Mr. Larry Sills, Executive Chairman. Please go ahead, sir.

Executive
Lawrence Sills

Okay. Thank you, and good morning, everyone, and welcome to Standard Motor Products Fourth Quarter Conference Call. And we thank you all for taking the time to attend. Here for the company is Eric Sills, President and CEO; Jim Burke, Executive Vice President and Chief Financial Officer; and myself, Larry Sills, Executive Chairman.

Agenda for today, Jim will review our financial results both for the fourth quarter and for the year as a whole, and then Eric will review some of the key events and developments, and then we'll open it for questions.

So with that, thank you for attending, and let's get started.

Executive
James Burke

Okay, thank you, Larry. As a preliminary note, I would like to point out that some of the material we will be discussing today may include forward-looking statements regarding our business and expected financial results. When we use words like anticipate, believe, estimate or expect, these are generally forward-looking statements.

Although we believe that the expectations reflected in these forward-looking statements are reasonable, they are based on information currently available to us and certain assumptions made by us, and we cannot assure you that they will prove correct. You should also read our filings with the Securities and Exchange Commission for a discussion of the risks and uncertainties that could cause our actual results to differ from our forward-looking statements.All right. To begin, overall, 2017 was a transition year with various facility moves, some completed and 2 still underway, establishment of a new JV in China and the recording of the impact of the Tax Cuts and Jobs Act tax law changes. Eric and I will discuss these points further in our prepared comments.

Consolidated net sales in Q4 '17 were $240 million, up $10.2 million or 4.4%. And full year 2017 net sales were $1,116,100,000, up $57.7 million or 5.4%. Excluding the General Cable incremental sales from our acquisition at the end of May 2016 of $38.4 million, our full year 2017 net sales increased $19.3 million or 1.8%.

Engine Management net sales in Q4 '17 were $198 million, up $12.8 million or 6.9%, and for the full year were $829.4 million, up $63.9 million or 8.3%.

Excluding the General Cable incremental wire sales, Engine Management full year net sales were up $25.5 million or 3.3%, which is within our expectation of low to mid-single-digit growth.

Temperature Control net sales in Q4 '17 were $40.3 million, down $2.4 million or 5.5%. And for the full year 2017 were $279.1 million, down $4.6 million or 1.6%. Eric will elaborate further on our customer