Standard Motor Products, Inc. Annual Meeting of Shareholders May 20, 2010
2010 Annual Meeting of Shareholders ►Larry Sills, Chairman and CEO ►Jim Burke, VP Finance & CFO
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.
Larry Sills Chairman and Chief Executive Officer
Key Priorities – As Per 2009 ►Generate►Generate Cash ►Reduce Debt ►Redeem Convertible Debentures Original Issue $90 MM 6.75% Coupon 10 Year Life Due July 15, 2009
Actions Taken ►Sold LIC Building ►Reduced Inventory $30 Million in 2009 $20 Million in 2008 ►Reduced Accounts Receivable $50 Million ►Suspended Dividend Reinstated in 2010
Actions Taken ►Hiring Freeze/ Early Retirement Reduced Salaried Staff ►100 People ►10% of Total ►Reduced Capital Expenditures $7.2mm 2009 $11.5mm Historical Average
Actions Taken ►Exited Two Businesses Blue Streak Electronics European Distribution ►Rolled Over $17 MM Bonds 2 Years 15% Interest ►Raised Additional Equity 3,450,000 Shares $27.5 MM (Net of Expenses)
Result ►2009 Debt Reduction $118 Million ►Redeemed Balance of Bonds ►Debt : EBITDA Ratio 2008: 6.2 (x) 2009: 1.7 (x)
Result
Other Accomplishments
Conclusion ►2009 was an Excellent Year ►Redeemed Bonds ►Reduced Cost Structure ►Reduced Debt ►Well Positioned for Future Growth
Jim Burke Vice President and Chief Financial Officer
2009 Results
2009 Income Statement Non - GAAP
Target Engine Management Gross Margin % 23.3%24.7%27-28% Temperature Control Gross Margin % 19.3%19.7%23-24% Substantial Margin Improvement
First Quarter 2010 Results
1 st Quarter Income Statement Non - GAAP
Condensed Balance Sheet
Thank You Standard Motor Products, Inc. Annual Meeting of Shareholders May 20, 2010
APPENDIX
Reconciliation of GAAP and Non-GAAP Measures