On this page of StockholderLetter.com we present the 4/16/2024 shareholder letter from STANDARD MOTOR PRODUCTS, INC. — ticker symbol SMP. Reading current and past SMP letters to shareholders can bring important insights into the investment thesis.

 •  4/16/2024 Letter Continued (Full PDF)
 •  4/18/2023 SMP Stockholder Letter
 •  4/15/2025 SMP Stockholder Letter
 •  More "Auto Parts" Category Stockholder Letters
 •  SMP Benford's Law Stock Score = 96

SMP 4/16/2024 Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT
2023

REGISTRAR AND TRANSFER AGENT
Computershare Trust Company, N.A.
PO Box 43006
Providence, RI 02940-3006
www.computershare.com/investor


INDEPENDENT AUDITORS
KPMG LLP
345 Park Avenue
New York, NY 10154
COMMON STOCK
Standard Motor Products, Inc.   s Common
Stock is listed on the New York Stock
Exchange under the symbol    SMP   
A S U B S I D I A R Y O F S TA N D A R D M O T O R P R O D U C T S , I N C .
A S U B S I D I A R Y O F S TA N D A R D M O T O R P R O D U C T S , I N C .
CORPORATE HEADQUARTERS
U.S. SUBSIDIARY
HUNGARY SUBSIDIARY
Standard Motor Products, Inc.
37-18 Northern Boulevard
Long Island City, NY 11101
Trumpet Holdings, Inc.
Milwaukee, WI
STABIL PRODUKT Elektrotechnikai Kft.
P  cel, Hungary
CANADA SUBSIDIARY
MEXICO SUBSIDIARIES
SMP Motor Products Ltd.
Mississauga, Canada
Standard Motor Products de Mexico,
S. de R.L. de C.V.
Reynosa, Mexico
LOCATIONS
USA
Disputanta, VA
Edwardsville, KS
Ft. Lauderdale, FL
Greenville, SC
Independence, KS
Irving, TX
Lewisville, TX
Long Island City, NY
McAllen, TX
Mishawaka, IN
Milwaukee, WI
Shawnee, KS
Sheboygan Falls, WI
CHINA SUBSIDIARIES
Trombetta Electric (Shanghai) Co., Ltd.
Shanghai, China
SMP Automotive de Mexico,
S.A. de C.V.
Cuernavaca, Mexico
Trombetta Electric (Wuxi) Co., Ltd.
Wuxi, China
SMP Engine Management de Mexico,
S. de R.L. de C.V.
Reynosa, Mexico
GERMANY SUBSIDIARIES
CANADA
Mississauga, ONT
St. Thomas, ONT
SMP KADE GmbH (formerly KADE Trading GmbH)
Glinde, Germany

STABIL ELEKTROTECHNIK GmbH
Kirchheim-Teck, Germany
MEXICO
Cuernavaca
Reynosa
STABIL VERBINDUNGSTECHNIK GmbH
Kirchheim-Teck, Germany
EUROPE
Glinde, Germany
Kirchhiem, Germany
P  cel, Hungary
Bialystok, Poland
SMP Poland sp. z o.o.
Bialystok, Poland
ASIA
Foshan, China
Hong Kong
POLAND SUBSIDIARY
Shanghai, China
Wuxi, China
HONG KONG SUBSIDIARIES
Standard Motor Products (Hong Kong) Limited
Hong Kong
Trombetta Asia, Ltd.
Hong Kong
SMP Four Seasons de Mexico,
S. de R.L. de C.V.
Reynosa, Mexico
Trombetta S. de R.L. de C.V.
}             T          
CHINA JOINT VENTURES
Foshan GWOYNG SMP Vehicle Climate
Control & Cooling Products Co. Ltd.
Foshan, China
Foshan FGD SMP Automotive
Compressor Co., Ltd.
Foshan, China
9                          
New Energy Technology Co., Ltd.
Foshan, China

YEAR ENDED DECEMBER 31,
2023
Net Sales

Operating Income
Earnings From Continuing Operations*
$1,358,272
2022

1,371,815
2021

1,298,816
92,677
104,135
128,999
$63,144
73,042
99,353
Net Earnings*

$34,148

55,351

90,886
PER SHARE:
Earnings From Continuing Operations* - Diluted

2.85

3.30

4.39
Net Earnings* - Diluted
1.54
2.50
4.02
Dividends
1.16
1.08
1.00
Stock Price at Year End

Average Number of Common and Dilutive Shares
39.81

22,161,341
34.80

22,139,981
52.39
22,616,456
Assets

1,293,047

1,254,929

1,197,961
Stockholders    Equity

650,873

621,038

612,627
Total Debt to Capitalization
*Attributable to SMP
19.4%
27.8%
17.3%
(Dollars in thousands, except per share amounts)
ABOUT THE COMPANY
With over 100 years in business, Standard Motor Products, Inc. (SMP) is a leader in the industries it serves and a trusted
partner for all its stakeholders. We manufacture and distribute premium replacement parts in the automotive aftermarket
and provide custom-engineered solutions to vehicle and equipment manufacturers in diverse non-aftermarket end markets.
We are a global manufacturer with over 6,000 employees (inclusive of temporary and joint venture employees) across 40
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to provide steady, long-term shareholder returns through consistent dividends, reinvestment back into our company and
selective acquisitions that serve to make our core businesses stronger.

CONSOLIDATED NET SALES
$1,500
$1,250
$1,298.8 $1,371.8 $1,358.3
$1,137.9 $1,128.6
TO OUR SHAREHOLDERS
$1,000
$750

$500
great deal in positioning ourselves for the future. We
$250
reorganized our business into new operating segments,
$0
2019
2020
2021
2022
2023
Full Year (Millions)
made solid progress on our sustainability journey, improved

ERIC P. SILLS
Chairman of the Board &
          '                 Z        
invest in our global footprint.
EBITDA (W/O SPECIAL ITEMS)*
$180.0
$161.8
$139.1
$125.5
$146.1
$126.7
$120.0
$60.0
$0.0
2019
2020
2021
2022
2023
Full Year (Millions)
DILUTED EPS (W/O SPECIAL ITEMS)*
$5.00
$4.45
$3.61
$4.00
$3.59
$3.10
$2.92
$3.00
$2.00
$1.00
$0.00
2019
2020
2021
2022
2023
Full Year
*See the Reconciliation of GAAP and Non-GAAP Measures on
the page facing the inside back cover of this Annual Report
SEGMENT REORGANIZATION
become a standalone operating segment.

operating segments to better align with
our strategic focus, as well as to provide
greater clarity to all stakeholders into how
the Company is positioned to capture
growth opportunities.

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traction we are gaining with blue-chip
accounts across a wide range of global
end markets as they recognize our
capabilities.

continue to be the heart of our business.
It is a robust industry demonstrating
tremendous stability and resiliency and
we are fortunate to be part of its very
                            Z                                            
being the best full-line, full-service
supplier of premium products continues
to be very well received by our broad
customer base. We remain steadfastly
primary driver of our business.
QUARTERLY DIVIDENDS
$0.30
$0.23
$0.25
$0.25
2020**
2021
$0.27
$0.29
$0.20
$0.10
$0
2019
2022
Dividend paid in two quarters

2023

                    '           T                                  
breadth of the offering, especially in
powertrain-neutral safety and electrical
product categories on the cars of today
and tomorrow, including battery electric
and hybrid electric vehicles.
Meanwhile, over the past several years,
we have aggressively grown our sales to
diverse global on-highway and off                                       t               
felt it had reached the critical mass to
We are now a year into these changes, and
believe that they have been well-received
by our customers, our employees, and the
investor community.
BUSINESS PERFORMANCE
This was a year of both challenges and
successes. Coming off record sales in

both of our operating segments
for different reasons. Vehicle Control felt
the impact of a major customer
bankruptcy, lowering sales as the channel
absorbed the inventory. Temperature
Control was up against the longest and
ended with the second-best sales year in
our history, it was unable to match
the outsized performance of the
previous year.
Z                             '                   w                   
had a very good year, showing solid
revenue growth. We are gaining traction
with various customers who now see us as
a strong, committed supplier of a broad

portfolio of products, and are rewarding us with many
opportunities to grow our business with them.
                                                                                             w                      
emissions reductions, and we are happy to report we are
on-pace to achieve our milestones.

                                                                                                                Z      
we were pleased with the impact of our initiatives on reducing
both our inventory and borrowing levels, allowing us to reduce
our debt to a very healthy leverage ratio.
global footprint, positioning ourselves for the future. We entered
into a new lease in a 575K square foot distribution facility in
w               Nw                                                                                  Z     
current DC network was nearing capacity, and this now provides
us room to grow, while also mitigating risk of business disruption.
                                                                         T                                         
be fully operational in this state-of-the-art facility by the end
We also acquired a 40K square foot production facility adjacent
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with manufacturing in Hungary. This has proven to be an

SUSTAINABILITY
                                                                                                                     9     
over 100 years we have been focused on these activities, always
recognizing our responsibility to take care of our people, support
the communities in which we operate, and be good stewards of
our planet.
290
278
281
279
283
284

various geopolitical risks may continue to create volatility, we are
The aftermarket remains strong and healthy, and tends to
well-established and well-regarded value proposition, evolve our
product categories to the needs of the vehicles of today and
tomorrow, and provide all the key services to help our channel
partners and their installer customers be successful.
Z     '                   w                                                                    
demonstrate our capabilities and our broad product portfolio
across our global footprint, we will continue to be rewarded
with new business wins.
AVERAGE AGE OF CARS
AND LIGHT TRUCKS
(YEARS)
14
12
LOOKING FORWARD


A                                                                                                       
activities, and we look forward to being more transparent
                                                                  w                           t             
U.S. TOTAL LIGHT VEHICLES
(MILLIONS)
Z                                                                                                      
agency scores in our environmental, social and governance
                         A                                                                                                       
progress, we are proud to share that SMP has been recognized as
                              T       t                                                     
U                      w                                                                                       
companies in the automotive and components sector included in
                    9                       wTq            w  }                                             
              O                                                                                                     
greenhouse gas emissions.
11.8
11.9
12.1
12.2
ANNUAL MILES DRIVEN
(TRILLIONS)
3.5
3.266
12.5
3.0
3.229
3.250
3.264
2021
2022
2023
2.830
245
2.5
10
200
2.0
8
2019
2020
2021
2022
2023
Source: Auto Care Association / IHS Markit
2019
2020
2021
2022
2023
Source: Auto Care Association / IHS Markit
2019
2020
Source: USDOT



 4/16/2024 Letter Continued (Full PDF)