Item 5. Market for Registrant’s Common Equity
ITEM 5.
MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Our common stock trades publicly on the New York Stock Exchange (“NYSE”) under the trading symbol “SMP.” The last reported sale price of our common stock on the NYSE on February 22, 2021 was $42.47 per share. As of February 22, 2021, there were 440 holders of record of our common stock.
Dividends are declared and paid on the common stock at the discretion of our Board of Directors (the “Board”) and depend on our profitability, financial condition, capital needs, future prospects, and other factors deemed relevant by our Board. After temporarily suspending our quarterly cash dividend payment in the second quarter of 2020, in October 2020, our Board approved the reinstatement of our quarterly cash dividend payment of $0.25 per share. Our revolving credit facility permits dividends and distributions by us provided specific conditions are met. For information related to our revolving credit facility, see Note 11, “Credit Facilities and Long-Term Debt,” of the Notes to Consolidated Financial Statements in Item 8 of this Report.
There have been no unregistered offerings of our common stock during the fourth quarter of 2020.
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
For information related to our stock repurchases, see Note 12, “Stockholders’ Equity,” of the Notes to Consolidated Financial Statements in Item 8 of this Report.
The following table provides information relating to the Company’s purchases of its common stock for the fourth quarter of 2020:
Period
Total Number of
Shares Purchased (1)
Average
Price Paid
Per Share
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs (2)
Maximum Number (or
Approximate Dollar
Value) of Shares that
may yet be Purchased
Under the Plans or
Programs (2)
October 1-31, 2020
5,000
$
46.31
5,000
$
11,042,286
November 1-30, 2020
81,606
46.99
81,606
7,207,845
December 1-31, 2020
14,520
47.49
14,520
6,518,228
Total
101,126
$
47.03
101,126
$
6,518,228
(1)
All shares were purchased through the publicly announced stock repurchase programs in open market transactions.
(2)
In March 2020, our Board of Directors authorized the purchase of up to $20 million of our common stock, under a stock repurchase program. Under this program, during the year ended December 31, 2020, we repurchased 323,867 shares of our common stock, at a total cost of $13.5 million. As of December 31, 2020, there was approximately $6.5 million available for future stock purchases under the program. In February 2021, our Board of Directors authorized the purchase of up to an additional $20 million of our common stock under a new stock repurchase program, thereby increasing the amount available for future stock purchases to approximately $26.5 million. Stock will be purchased under the programs from time to time, in the open market or through private transactions, as market conditions warrant.
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Stock Performance Graph
The following graph compares the five year cumulative total return on the Company’s Common Stock to the total returns on the Standard & Poor’s 500 Stock Index and the S&P 1500 Auto Parts & Equipment Index, which is a combination of automotive parts and equipment companies within the S&P 400, the S&P 500 and the S&P 600. The graph shows the change in value of a $100 investment in the Company’s Common Stock and each of the above indices on December 31, 2015 and the reinvestment of all dividends. The comparisons in this table are required by the Securities and Exchange Commission and are not intended to forecast or be indicative of possible future performance of the Company’s Common Stock or the referenced indices.
SMP
S&P 500
S&P 1500 Auto
Parts &
Equipment
Index
2015
100
100
100
2016
142
112
106
2017
122
136
139
2018
134
130
95
2019
150
171
127
2020
115
203
157
* Source: S&P Capital IQ
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ITEM 6.
SELECTED FINANCIAL DATA
The following table sets forth selected consolidated financial data for the five years ended December 31, 2020. This selected consolidated financial data should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our financial statements and the notes thereto included elsewhere in this Form 10-K. Certain prior period amounts have been reclassified to conform to the 2020 presentation.
Year Ended
December 31,
2020
2019
2018
2017
2016
(Dollars in thousands)
Statement of Operations Data:
Net sales
$
1,128,588
$
1,137,913
$
1,092,051
$
1,116,143
$
1,058,482
Gross profit
336,655
331,800
312,787
326,656
322,487
Intangible asset impairment (1)
2,600
—
—
—
—
Operating income (2)
108,895
94,495
81,268
97,521
98,789
Earnings from continuing operations (3)
80,417
69,051
56,854
43,630
62,412
Loss from discontinued operations, net of income tax benefit (4)
(23,024
)
(11,134
)
(13,851
)
(5,654
)
(1,982
)
Net earnings (3) (4)
57,393
57,917
43,003
37,976
60,430
Per Share Data:
Earnings from continuing operations (3):
Basic
$
3.59
$
3.09
$
2.53
$
1.92
$
2.75
Diluted
3.52
3.03
2.48
1.88
2.70
Earnings per common share (3) (4):
Basic
2.57
2.59
1.91
1.67
2.66
Diluted
2.51
2.54
1.88
1.64
2.62
Cash dividends per common share (5)
0.50
0.92
0.84
0.76
0.68
Other Data:
Depreciation and amortization
$
26,323
$
25,809
$
24,104
$
23,916
$
20,457
Capital expenditures
17,820
16,185
20,141
24,442
20,921
Dividends (5)
11,218
20,593
18,854
17,287
15,447
Cash Flows Provided By (Used In):
Operating activities
$
97,896
$
76,928
$
70,258
$
64,617
$
97,805
Investing activities
(17,799
)
(54,812
)
(29,886
)
(31,228
)
(88,018
)
Financing activities
(71,516
)
(23,378
)
(46,121
)
(35,944
)
(7,756
)
Balance Sheet Data (at period end):
Cash and cash equivalents
$
19,488
$
10,372
$
11,138
$
17,323
$
19,796
Working capital
295,934
239,969
233,638
210,194
190,380
Total assets (6)
956,540
903,854
819,116
782,601
760,485
Total debt
10,232
57,045
49,219
61,778
54,975
Long‑term debt (excluding current portion)
97
129
153
79
120
Stockholders’ equity
550,236
504,228
467,201
453,654
441,028
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Notes to Selected Financial Data
(1)
In December 2020, a large retail customer informed us of its decision to pursue a private brand strategy for its engine management product line. As a result of this development, we anticipate that revenues sold under the BWD trademark will be significantly reduced and uncertain beyond the first quarter of 2021. In connection with the decision, we recorded an impairment charge of $2.6 million in 2020.
(2)
On January 1, 2018, we adopted ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . Pursuant to the adoption, net periodic benefit cost (credit) for the years ended December 31, 2017 and 2016 has been reclassified from selling, general and administrative expenses to other non-operating income (expense), net.
(3)
During 2017, we recorded an increase of $17.5 million to the provision for income taxes resulting from the remeasurement of our deferred tax assets, and the tax on deemed repatriated earnings of our foreign subsidiaries as a result of the enactment of the Tax Cuts and Jobs Act.
(4)
We recorded an after tax charge of $23 million, $11.1 million, $13.9 million, $5.7 million, and $2 million as loss from discontinued operations to account for legal expenses and potential costs associated with our asbestos‑related liability for the years ended December 31, 2020, 2019, 2018, 2017 and 2016, respectively. Such costs were also separately disclosed in the operating activity section of the consolidated statements of cash flows for those same years.
(5)
In April 2020, we temporarily suspended our $0.25 per share quarterly cash dividend in response to the impact of the COVID-19 pandemic on our business; and in October 2020, we reinstated the $0.25 per quarterly cash dividend, which was paid on December 1, 2020.
(6)
On January 1, 2019 we adopted ASU 2016-02, Leases , which resulted in the recording of operating lease right-of-use assets and operating lease liabilities on our consolidated balance sheet.
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