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Published byMelinda French Modified over 9 years ago
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Standard Motor Products, Inc. Annual Meeting of Shareholders May 21, 2009
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2009 Annual Meeting of Shareholders Larry Sills, Chairman and CEO Jim Burke, VP Finance & CFO
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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 1995. 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.
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Larry Sills Chairman and Chief Executive Officer
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Aftermarket versus OE There are major differences Aftermarket Original Equipment Market SMP is an aftermarket company
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Aftermarket versus OE Aftermarket Based on 250 million vehicles on the road Highly stable Slow and steady growth Tens of thousands of SKUs OE Based on new car production Minimal number of SKUs High degree of automation
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Aftermarket Growth
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SMP Breakdown of Sales Volume Market ChannelPercentage/Sales Traditional47% Retail33% OE7% OES5% Export3% Special Markets5%
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Current Operating Environment Favorable Macro Trends for Aftermarket New Car Sales Down Aging Fleet of Vehicles Car Dealerships Closing Leasing Availability Down Fuel Prices Down Commodity Prices Coming Down
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Jim Burke Vice President and Chief Financial Officer
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SMP Overview – 40,000 Foot View Stable Revenues – $700 to $800 MM Restructuring Efforts – Maintain Global Competitiveness 2003-2005 Dana Integration 2006-2007 Exit UK Manufacturing Establish Low Cost Poland Manufacturing Site 2007-2008 REMFG Compressors to Reynosa, MX Puerto Rico & LIC, NY MFG to Reynosa, MX
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Restructuring Impact on EBITDA Restructuring Impact on EBITDA w/o Special Items 2002 Pre-Dana 2003-05 Integration 2006-07 2008 Integration EBITDA$50 MM $38-41 MM $53-57 MM $31 MM Key Takeaway is the Health of our Core Business in the $45-50 MM Range Excluding Integration Years
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SMP Debt Load Debt Load20022003-052006-0720082009 December$177 MM$218-248 MM$238-255 MM$194 MM Debt Reduction Debt/EBITDA3.5 (x)5.7-6.8 (x)4.2-4.9 (x)6.3 (x) 3.0-3.5 (x) Range
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Key Priorities Generate Cash Reduce Debt Redeem Convertible Debentures Original Issue $90 MM 6.75% Coupon 10 Year Life Due July 15, 2009
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Key Priorities 2008 Actions Generate Cash/Reduce Debt Sale of LIC HQ Building Reduced Inventory by $20 MM Reduced AR Closed DC in Reno Reduced Headcount Total Debt Reduction in 2008 $61 MM Repurchased $45 MM Bonds at Discount
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Key Priorities 2009 Actions Generate Cash/Reduce Debt Reduced Inventory by $27 MM Additional AR Reduction Suspend 2009 Quarterly Dividend 2009 Salary Increase Eliminated Capex Reduction Early Retirement Program Debt Reduction Through April $26 MM
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Key Priorities 2009 Actions May 6, 2009 exchanged $12.3 MM old bonds for new bonds Coupon 15% Due April 15, 2011 Strike Price $15.00
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Key Priorities The Result of 2008 and 2009 Actions Remaining $32 MM Bonds Will Be Retired on Schedule – July 15, 2009 Debt : EBITDA Ratio Significantly Improved
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First Quarter 2009 Results
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1 st Quarter Income Statement
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1 st Quarter Income Statement Non - GAAP
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Condensed Balance Sheet
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Reconciliation of GAAP and Non-GAAP Measures
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Plans For Future Expand Low Cost Manufacturing Expand Low Cost Purchasing New Business
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Accomplishments and Trends Low Cost Manufacturing 16% 29% 38% % production labor hours in low cost facilities 46% 2005200720082009 Estimate
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Accomplishments and Trends Low Cost Purchasing 200520072008 38% 42% 47% % purchased from low cost suppliers 2009 Estimate 50%
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Accomplishments and Trends New Business Wire and Cable Acquired FM Wire & Cable Product Line New Aftermarket Business Engine Management Temperature Controls
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Thank You Standard Motor Products, Inc. Annual Meeting of Shareholders May 21, 2009
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