Standard Motor Products Inc. (NYSE:SMP) Q3 2020 Earnings Conference Call - Final Transcript

Oct 28, 2020 • 11:00 am ET


Standard Motor Products Inc. (NYSE:SMP) Q3 2020 Earnings Conference Call - Final Transcript


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Good day, everyone, and welcome to today's Standard Motor Products Third Quarter Earnings Call. [Operator Instructions]. Later you will have an opportunity to ask questions during the question-and-answer session. [Operator Instructions]. It is now my pleasure to turn today's program over to Larry Sills. Please go ahead.

Lawrence I. Sills

Well, good morning everybody and welcome to our third quarter conference call, and we thank you all for attending. With me today, I have Eric Sills, President and CEO; Jim Burke, Chief Operating Officer; Nathan Iles, Chief Financial Officer; and myself, Larry Sills, Executive Chairman. Here is the agenda for today, Eric will begin by reviewing the highlights of the quarter, then Jim will give a brief review of operations. Nathan will go into a more detailed review of the numbers, and then I will have a short wrap up before we open it to questions.

So with that, let me turn it over to Nathan for the forward-looking statements. Thank you.

Nathan R. Iles

Okay. Thank you, Larry. Before we begin this morning, I'd like to remind you 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. I'll now turn the call over to Eric.

Eric P. Sills

Thanks, Nathan, and good morning everybody and thank you for joining us today. I would like to open by thanking all of our employees who are going above and beyond in these difficult times.

As part of an essential industry, we had to jump through many hoops to stay operational so that people could come to work safely and I'm just so appreciative of everyone whose dedication, intelligence and skills lead us through this unprecedented experience. And a special thanks goes out to the front-line employees in our factories and distribution centers for braving the situation, working countless hours to take care of our customers. These folks are the true heroes.

Okay, so on to business. As mentioned on our last call, we came out of the second quarter experiencing strong demand and I'm pleased to say that the trend continued throughout the third quarter. Let me discuss each of the divisions separately, starting with Engine Management. Engine Management sales were up 6.7% for the quarter, clawing back about a third of our sales shortfall in the first half.

Consumer demand has been robust, which we believe reflects the deferred maintenance from the early days of the pandemic when costs were idled in driveways, but we're also experiencing a general surge in the aftermarket,