Gabelli Automotive Aftermarket Symposium November 2-3, 2015

Transcription

1 Gabelli Automotive Aftermarket Symposium November 2-3,

2 Forward Looking Statements You should be aware that except for historical information, the matters discussed herein are forward looking statements within the meaning of the Private Securities Litigation Reform Act of Forward looking statements, including projections and anticipated levels of future performance, are based on current information and assumptions and involve risks and uncertainties which may cause actual results to differ materially from those discussed herein. You are urged to review our filings with the SEC and our press releases from time to time for details of these risks and uncertainties. 2

3 SMP Snapshot n 95 Years in Business n Financial Performance: Net Sales $984mm $980mm EBITDA w/o special items $107mm $111mm Operational Diluted EPS $2.32 $2.52 n 2014 Sales Breakdown: Aftermarket 92% OE/OES 8% n Major Product Lines: Engine Management 70% Temperature Control 30% n Locations: Mfg Distr. Other U.S Mexico 3 1 Poland 1 China/Hong Kong 1 1 Canada

4 Strategy Overview 4

5 Strategic Objectives Enhance Market Leadership Best-in-Class Full-Line, Full-Service Supplier ConAnuous Improvement Increased Manufacturing Low Cost Manufacturing Low Cost Purchasing Growth Programs New Products Strategic AcquisiAons Return to Shareholders Dividend Increase Treasury Stock Buyback Program 5

6 5 Year Performance Measures Consolidated Net Sales Gross Margin 30.0% 29.5% 29.5% $1,000.0 $983.7 $980.4 $ % $ % 27.4% $ $ % % $ % 25.6% $ $ % $750.0 Full Year (Millions) EBITDA (w/o Special Items) $115.0 $105.0 $106.8 $ % Full Year Diluted EPS (w/o Special Items) $2.52 $2.55 $2.32 $2.30 $95.0 $85.0 $75.0 $65.0 $61.7 $76.6 $ $2.05 $1.80 $1.55 $1.30 $1.05 $1.07 $1.57 $ $55.0 Full Year (Millions) $0.80 Full Year 6

7 September 2015 QTR and YTD Results 7

8 Q Income Statement Non - GAAP Q Q Amount % of Sales Amount % of Sales Net Sales $ % $ % Gross Profit % % SG&A Expenses % % Operating Profit % % Other Income/(Loss) (0.6) (1.0) Interest Expense Income Taxes Earnings from Continuing Ops. $ 18.4 $ 17.1 Diluted Earnings Per Share: Continuing Operations $ 0.80 $ 0.74 Diluted Shares (000's) 23,134 23,169 8

9 September 2015 YTD Income Statement Non - GAAP September 2015 YTD September 2014 YTD Amount % of Sales Amount % of Sales Net Sales $ % $ % Gross Profit % % SG&A Expenses % % Operating Profit % % Other Income/(Loss) 0.1 (1.1) Interest Expense Income Taxes Earnings from Continuing Ops. $ 41.3 $ 47.2 Diluted Earnings Per Share: Continuing Operations $ 1.78 $ 2.04 Diluted Shares (000's) 23,220 23,181 9

10 Condensed Balance Sheet Actual September 2015, 2014 ($ in millions) Dollars Ratios Cash and Equivalents $ 13.3 $ 10.6 Accounts Receivable/DSO Inventory/Turns Other Assets Total Assets $ $ Current Liabilities $ $ Total Debt/Debt to Cap Ratio % 13.9% Other Liabilities Total Liabilities $ $ Equity/Debt to Equity Ratio Total Liabilities and Equity $ $

11 Condensed Statement of Cash Flows (IN MILLIONS) September YTD Full Year NET INCOME $40.8 $31.9 $43.0 DEPRECIATION & AMORTIZATION ACCOUNTS RECEIVABLE (25.1) (17.5) 1.8 INVENTORY 4.8 (3.5) (6.7) ACCOUNTS PAYABLE 8.4 (3.4) (4.3) OTHER OPERATING ACTIVITIES (4.1) NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES CAPITAL EXPENDITURES (14.6) (9.3) (13.9) ACQUISITIONS 0.0 (37.7) (37.7) OTHER INVESTING ACTIVITIES NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (14.6) (47.0) (51.2) NET BORROWINGS (PAYMENTS) (32.2) DIVIDENDS (10.3) (8.9) (11.9) REPURCHASE OF COMMON STOCK (15.5) (9.5) (10.0) OTHER FINANCING ACTIVITIES (0.6) (0.1) (1.0) NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (58.6) NET CHANGE IN CASH $ (0.4) $ 5.0 $ 8.2 FREE CASH FLOW $ 47.9 $ 14.5 $

12 Return to Shareholders Dividend Increase Annual Dividend $0.52 $0.44 $0.36 $0.36 $0.28 $0.20 $0.60 Suspended Treasury Stock Buyback Program Year Spend Shares Avg. Price 2011 $4.1M 322,250 $ $5.0M 380,777 $ $6.9M 209,973 $ $10M 284,284 $ ~$18M YTD ($20M authorized) 12

13 Appendix 13

14 Reconciliation of GAAP and Non-GAAP Measures ($ in thousands, except per share amounts) TWELVE MONTHS ENDED DECEMBER 31, EARNINGS FROM CONTINUING OPERATIONS (Unaudited) GAAP EARNINGS FROM CONTINUING OPERATIONS $ 52,899 $ 53,043 $ 42,969 $ 64,327 $ 24,700 LITIGATION CHARGE (NET OF TAX) 6, RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX) 718 2, ,101 LOSS FROM EUROPE DIVESTITURE (NET OF TAX) REVERSAL OF LT TAX LIABILITY (350) CERTAIN TAX CREDITS AND PROD. DEDUCTIONS FINALIZED IN PERIOD (361) (374) (774) - - POSTRETIREMENT CURTAILMENT GAIN (NET OF TAX) (2,188) - GAIN FROM SALE OF JOINT VENTURE (NET OF TAX) (1,485) - NONRECURRING INCOME TAX ADJ, INCL. VALUATION ALLOWANCE REVERSAL (24,755) (1,084) GAIN FROM SALE OF BUILDINGS (NET OF TAX) (629) (629) (772) (629) (1,588) NON-GAAP EARNINGS FROM CONTINUING OPERATIONS $ 58,667 $ 54,054 $ 42,285 $ 36,076 $ 24,176 DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS $ 2.28 $ 2.28 $ 1.86 $ 2.78 $ 1.09 LITIGATION CHARGE (NET OF TAX) RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX) LOSS FROM EUROPE DIVESTITURE (NET OF TAX) REVERSAL OF LT TAX LIABILITY (0.02) CERTAIN TAX CREDITS AND PROD. DEDUCTIONS FINALIZED IN PERIOD (0.02) (0.02) (0.03) - - POSTRETIREMENT CURTAILMENT GAIN (NET OF TAX) (0.09) - GAIN FROM SALE OF JOINT VENTURE (NET OF TAX) (0.06) - NONRECURRING INCOME TAX ADJ, INCL. VALUATION ALLOWANCE REVERSAL (1.07) (0.04) GAIN FROM SALE OF BUILDINGS (NET OF TAX) (0.03) (0.03) (0.03) (0.03) (0.07) NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS $ 2.52 $ 2.32 $ 1.83 $ 1.57 $

15 Reconciliation of GAAP and Non-GAAP Measures (cont d) ($ in thousands, except per share amounts) TWELVE MONTHS DECEMBER 31, EBITDA WITHOUT SPECIAL ITEMS (Unaudited) GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES $ 81,753 $ 84,962 $ 67,947 $ 64,448 $ 40,091 DEPRECIATION & AMORTIZATION 17,295 17,595 16,466 14,145 13,574 INTEREST EXPENSE 1,616 1,902 2,788 3,821 7,127 EBITDA 100, ,459 87,201 82,414 60,792 LITIGATION CHARGE 10, RESTRUCTURING AND INTEGRATION EXPENSES 1,197 3,357 1,437 1,344 3,502 LOSS FROM EUROPE DIVESTITURE POSTRETIREMENT CURTAILMENT GAIN (3,647) - GAIN FROM SALE OF JOINT VENTURE (2,475) - GAIN FROM SALE OF BUILDINGS (1,048) (1,048) (1,287) (1,048) (2,646) SPECIAL ITEMS 10,799 2, (5,826) 935 EBITDA WITHOUT SPECIAL ITEMS $ 111,463 $ 106,768 $ 87,351 $ 76,588 $ 61,727 TOTAL DEBT $ 56,816 $ 21,481 $ 40,648 $ 73,299 $ 65,596 DEBT TO EBITDA RATIO (TTM) 0.5:1 0.2:1 0.5:1 1:1 1:1 MANAGEMENT BELIEVES THAT EARNINGS FROM CONTINUING OPERATIONS, DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS, AND OPERATING INCOME, EACH OF WHICH ARE NON-GAAP MEASUREMENTS AND ARE ADJUSTED FOR SPECIAL ITEMS, ARE MEANINGFUL TO INVESTORS BECAUSE THEY PROVIDE A VIEW OF THE COMPANY WI RESPECT TO ONGOING OPERATING RESULTS. SPECIAL ITEMS REPRESENT SIGNIFICANT CHARGES OR CREDITS THAT ARE IMPORTANT TO AN UNDERSTANDING OF THE COMPANY OVERALL OPERATING RESULTS IN THE PERIODS PRESENTED. SUCH NON-GAAP MEASUREMENTS ARE NOT RECOGNIZED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND SHOULD NOT BE VIEWED AS AN ALTERNATIVE TO GAAP MEASURES OF PERFORMANCE. 15

16 Reconcilia)on of GAAP and Non-GAAP Measures (cont d) ($ in thousands, except per share amounts) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, EARNINGS FROM CONTINUING OPERATIONS (Unaudited) (Unaudited) GAAP EARNINGS FROM CONTINUING OPERATIONS $ 19,194 $ 17,806 $ 42,341 $ 41,382 LITIGATION CHARGE (NET OF TAX) ,390 RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX) (48) 206 (30) 642 REVERSAL OF LT TAX LIABILITY - (350) - (350) CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD (571) (361) (571) (361) GAIN FROM SALE OF BUILDINGS (NET OF TAX) (157) (157) (472) (472) NON-GAAP EARNINGS FROM CONTINUING OPERATIONS $ 18,418 $ 17,144 $ 41,268 $ 47,231 DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS $ 0.83 $ 0.77 $ 1.82 $ 1.79 LITIGATION CHARGE (NET OF TAX) RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX) REVERSAL OF LT TAX LIABILITY - (0.01) - (0.02) CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD (0.02) (0.02) (0.02) (0.02) GAIN FROM SALE OF BUILDINGS (NET OF TAX) (0.01) (0.01) (0.02) (0.02) NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS $ 0.80 $ 0.74 $ 1.78 $ 2.04 MANAGEMENT BELIEVES THAT EARNINGS FROM CONTINUING OPERATIONS, DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS, AND OPERATING INCOME, EACH OF WHICH ARE NON-GAAP MEASUREMENTS AND ARE ADJUSTED FOR SPECIAL ITEMS, ARE MEANINGFUL TO INVESTORS BECAUSE THEY PROVIDE A VIEW OF THE COMPANY WITH RESPECT TO ONGOING OPERATING RESULTS. SPECIAL ITEMS REPRESENT SIGNIFICANT CHARGES OR CREDITS THAT ARE IMPORTANT TO AN UNDERSTANDING OF THE COMPANY'S OVERALL OPERATING RESULTS IN THE PERIODS PRESENTED. SUCH NON-GAAP MEASUREMENTS ARE NOT RECOGNIZED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND SHOULD NOT BE VIEWED AS AN ALTERNATIVE TO GAAP MEASURES OF PERFORMANCE. 16