The following is a summary of the Standard Motor Products, Inc. (SMP) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Standard Motor Products reported a record Q1 sales, driven by strong demand across all product categories.

• Mixed results were observed in Q1 with increased sales but lower profitability due to inflationary pressures.

• The vehicle control segment experienced a sales increase of 0.5% compared to Q1 2023, with an adjusted EBITDA of 10.4% of net sales.

• Engineered Solutions had a sales increase of 4.5%, setting a new single-quarter record.

• Temperature Control saw a slight sales decrease by 1.1% when compared to Q1 2023.

• Accounts receivable at quarter-end stood at $203.9 million, with inventory levels ending at $520.7 million.

Business Progress:

• The company gained new business and is managing a pipeline of opportunities.

• Focus is on the new distribution center in Shawnee, Kansas, which started shipping Vehicle Control products in April.

• Measures being taken to cope with cost pressures include cost reductions and pricing adjustments for potential relief in future quarters.

• Temporary increase in spending for the new distribution center is expected to reduce duplicate costs once completed and better position the company for the future.

• $6.1 million worth of shares have been repurchased so far this year, including $2.6 million in Q1 and an additional $3.5 million until April 29.

More details: Standard Motor Products IR

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