SMP(SMP) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter net sales for 2024 were $343.4 million, an increase of 18.1% compared to$ 290.8 million in the same quarter of 2023[4]. - The acquisition of Nissens contributed $35.7 million in sales during the fourth quarter, with full year net sales reaching$ 1.46 billion, up 7.8% from $1.36 billion in 2023[4][6]. - Adjusted diluted earnings per share for the fourth quarter were$ 0.47, up 27.0%, and $3.17 for the full year, an increase of 8.6%[4][6]. - Adjusted EBITDA for the fourth quarter improved to$ 29.0 million, representing a margin of 8.4%, and full year adjusted EBITDA was 9.6%[11]. - Total revenues for the three months ended December 31, 2024, were $343,352,000, an increase of 18.1% compared to$ 290,756,000 for the same period in 2023[21]. - Non-GAAP earnings from continuing operations for the three months ended December 31, 2024, were $10,508,000, compared to$ 8,161,000 for the same period in 2023, reflecting a 28.6% increase[23]. - GAAP operating income for the three months ended December 31, 2024, was $3,880,000, down from$ 9,947,000 in the same period of 2023[23]. - Non-GAAP diluted earnings per share from continuing operations for the three months ended December 31, 2024, were $0.47, compared to$ 0.37 for the same period in 2023[23]. - EBITDA without special items for the twelve months ended December 31, 2024, was $140,058,000, compared to$ 126,667,000 for the same period in 2023[24]. - The percentage of net sales for the consolidated EBITDA without special items was 9.6% for the twelve months ended December 31, 2024, compared to 6.3% in 2023, showing improved profitability[27]. - GAAP earnings from continuing operations before taxes for the twelve months ended December 31, 2024, were $73,989, compared to$ 81,716 in 2023, indicating a decline[27]. - The company reported a GAAP operating income of $80,624 for the twelve months ended December 31, 2024, compared to$ 92,677 in 2023, reflecting a decrease[27]. - Interest expense for the twelve months ended December 31, 2024, was $13,512, an increase from$ 2,521 in 2023, indicating higher borrowing costs[27]. - The company incurred special items totaling $21,144 for the twelve months ended December 31, 2024, which impacted overall financial performance[27]. - Net earnings for the twelve months ended December 31, 2024, were$ 28,476 thousand, a decrease of 17.1% compared to $34,352 thousand in 2023[30]. Sales and Revenue Segments - Vehicle Control sales increased by 4.9% in the fourth quarter, while Temperature Control sales surged by 30%[7][8]. - Engineered Solutions segment sales declined by 7.9% in the fourth quarter, but the company continues to win new business awards[9]. - Vehicle Control segment revenues for the three months ended December 31, 2024, were$ 187,418,000, an increase of 4.4% from $178,629,000 in the same period of 2023[21]. - Temperature Control segment revenues for the three months ended December 31, 2024, increased to$ 58,014,000, up 30.0% from $44,631,000 in the same period of 2023[21]. Expenses and Liabilities - Selling, General & Administrative expenses for the three months ended December 31, 2024, totaled$ 95,282,000, which is 27.8% of revenues, compared to 24.2% in the same period of 2023[22]. - The company reported acquisition expenses of $12,072,000 for the three months ended December 31, 2024, which negatively impacted GAAP operating income[24]. - The restructuring and integration expenses for the three months ended December 31, 2024, totaled$ 1,894, compared to $1,259 in the same period of 2023[26]. - Total current liabilities rose to$ 436,472 thousand in December 2024, compared to $304,263 thousand in December 2023, indicating an increase of 43.5%[29]. - Long-term debt increased to$ 535,197 thousand in December 2024, up from $151,182 thousand in December 2023, representing a substantial rise of 253.5%[29]. Cash Flow and Assets - Cash and cash equivalents at the end of the period rose to$ 44,426 thousand, compared to $32,526 thousand at the beginning of the period, marking an increase of 36.5%[30]. - Accounts receivable, net, increased to$ 210,719 thousand in December 2024 from $160,282 thousand in December 2023, reflecting a growth of 31.4%[29]. - Inventories grew significantly to$ 624,913 thousand in December 2024, up from $507,075 thousand in December 2023, an increase of 23.2%[29]. - Net cash provided by operating activities decreased to$ 76,693 thousand in 2024 from $144,260 thousand in 2023, a decline of 46.8%[30]. - The company reported a net cash used in investing activities of$ 418,683 thousand in 2024, compared to $25,700 thousand in 2023, indicating a significant increase in investment outflows[30]. - The net change in debt for the year was$ 392,630 thousand, contrasting with a decrease of $83,558 thousand in the previous year, highlighting a shift towards increased borrowing[30]. Future Outlook - The company expects mid-teens sales growth for 2025, largely driven by the Nissens acquisition, with adjusted EBITDA projected between 10.0% and 11.0%[13]. - The integration of Nissens is progressing well, with collaborative efforts underway to identify cost savings and growth opportunities[10]. - Total assets increased to$ 1,814,126 thousand in December 2024, up from $1,293,047 thousand in December 2023, representing a growth of approximately 40.4%[29].