Standard Motor Products, Inc (SMP) has reported a 59.82 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $8.35 million, or $0.36 a share in the quarter, compared with $5.23 million, or $0.23 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $9.78 million, or $0.42 a share compared with $8.14 million or $0.35 a share, a year ago. Revenue during the quarter grew 12.12 percent to $229.80 million from $204.97 million in the previous year period. Gross margin for the quarter contracted 158 basis points over the previous year period to 29.06 percent. Total expenses were 94.50 percent of quarterly revenues, down from 95.28 percent for the same period last year. This has led to an improvement of 78 basis points in operating margin to 5.50 percent.
Operating income for the quarter was $12.63 million, compared with $9.68 million in the previous year period.
However, the adjusted operating income for the quarter stood at $14.15 million compared to $12.85 million in the prior year period. At the same time, adjusted operating margin contracted 12 basis points in the quarter to 6.16 percent from 6.27 percent in the last year period.
Mr. Eric P. Sills, Standard Motor Products’ chief executive officer and president stated, "We are very pleased with our 2016 results, as we set Company records for both sales and profit. For the year, net sales were up 8.9% (excluding the mid-year acquisition of General Cable’s North American automotive ignition wire business, net sales were ahead 3.5%). Gross margin for the year increased from 28.9% to 30.5%, and net earnings and earnings per share were up roughly 30%."
Operating cash flow improves significantly
Standard Motor Products, Inc has generated cash of $97.80 million from operating activities during the year, up 50.07 percent or $32.63 million, when compared with the last year. The company has spent $88.02 million cash to meet investing activities during the year as against cash outgo of $18.01 million in the last year.
The company has spent $7.76 million cash to carry out financing activities during the year as against cash outgo of $41.16 million in the last year period.
Cash and cash equivalents stood at $19.80 million as on Dec. 31, 2016, up 5.30 percent or $1 million from $18.80 million on Dec. 31, 2015.
Working capital decreases marginally
Standard Motor Products, Inc has witnessed a decline in the working capital over the last year. It stood at $231.01 million as at Dec. 31, 2016, down 2.04 percent or $4.82 million from $235.82 million on Dec. 31, 2015. Current ratio was at 1.81 as on Dec. 31, 2016, down from 1.97 on Dec. 31, 2015.
Debt moves up
Standard Motor Products, Inc has witnessed an increase in total debt over the last one year. It stood at $54.98 million as on Dec. 31, 2016, up 15.72 percent or $7.47 million from $47.50 million on Dec. 31, 2015. Total debt was 7.15 percent of total assets as on Dec. 31, 2016, compared with 6.98 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.12 as on Dec. 31, 2016, when compared with the last year. Interest coverage ratio improved to 36.09 for the quarter from 32.36 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
