SMP — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-04-30

• •higher net sales in our Vehicle Control operating segment as certain customers expanded their range of our products, as well as some benefit from higher prices following the pass through to customers of tariffs implemented later in 2025,

• •improved net sales in our Engineered Solutions operating segment as growth begins to recover from the general softness in end markets experienced in 2025,

• •increased net sales in our Nissens Automotive operating segment with the benefit of foreign exchange conversion and higher demand from existing customers, and

• •slight increase in net sales in our Temperature Control operating segment as the benefits of the strong growth in 2025 continue into early 2026.

• •Overall, full year results at our Temperature Control and Nissens Automotive operating segments will be dependent upon summer weather conditions and customer inventory levels.

Text removed vs the prior filing · source: 10-Q · 2025-10-31

• •inclusion of $84.5 million of net sales in our new operating segment, Nissens Automotive, created with the acquisition of Nissens Automotive in the fourth quarter of 2024,

• •continued strong volume of customer orders in our Temperature Control operating segment benefiting from growth in certain product categories and gains in market share,

• •slightly lower net sales in our Vehicle Control operating segment due to the secular decline in sales of wire sets and comparison to strong third quarter net sales in the same period in 2024, and

• •flat net sales in our Engineered Solutions operating segment as growth from business wins and successful cross-selling efforts was more than offset by general softness in end markets.

• Gross margins, as a percentage of net sales, increased to 32.4% in the third quarter of 2025 compared to 30.4% in the third quarter of 2024. Overall, the gross margin increase as a percentage of sales in the third quarter of 2025 primarily reflects the positive impact of higher sales volumes leading…

Text added vs the prior filing · source: 10-Q · 2026-04-30

• and liabilities are denominated and does not take into account the incremental effect of such a change on our foreign currency denominated revenues.

• We manage our exposure to interest rate risk through the proportion of fixed rate debt and variable rate debt in our debt portfolio. To reduce our market risk to changes in interest rates on our variable rate borrowings, and to manage a portion of our exposure to changes in interest rates, we occasi…

• As of March 31, 2026, we had $641.8 million of outstanding borrowings under our 2024 Credit Agreement, net of deferred financing costs, of which $434.6 million bears interest at variable rates of interest and $209 million bears interest at fixed rates, after consideration of the interest rate swap a…

• In addition, we are party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions. We sell our undivided interests in certain of these receivables at our discretion when we determine that the c…

• Other than the aforementioned, there have been no significant changes to the information presented in Item 7A (Market Risk) of our Annual Report on Form 10-K for the year ended December 31, 2025.

Text removed vs the prior filing · source: 10-Q · 2025-10-31

• We manage our exposure to interest rate risk through the proportion of fixed rate debt and variable rate debt in our debt portfolio. To reduce our market risk to changes in interest rates on our variable rate borrowings, and to manage a portion of our exposure to changes in interest rates, we occasi…

• As of September 30, 2025, we had $569.5 million of outstanding borrowings under our 2024 Credit Agreement, net of deferred financing costs, of which $357.2 million bears interest at variable rates of interest and $214.4 million bears interest at fixed rates, after consideration of the interest rate …

• In addition, we are party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions. We sell our undivided interests in certain of these receivables at our discretion when we determine that the c…

• Other than the aforementioned, there have been no significant changes to the information presented in Item 7A (Market Risk) of our Annual Report on Form 10-K for the year ended December 31, 2024.

Text added vs the prior filing · source: 10-Q · 2026-04-30

• Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Exchange …

• Our management is committed to maintaining a strong internal control environment. In response to the material weakness, management, with oversight of the Audit Committee of the Board of Directors, has been engaged in developing and implementing a remediation plan to address the material weakness rel…

• •Engaged external resources on a temporary basis while actively recruiting for additional experienced IT personnel

• •Rationalized the number of users with privileged access to affected IT systems

• •Deployed tools to log the activities of privileged users within affected IT systems

Text removed vs the prior filing · source: 10-Q · 2025-10-31

• Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Exchange …

• During the quarter ended September 30, 2025, we have not made any changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. We review, document and test our…

• We are in the process of evaluating internal controls over financial reporting at Nissens Automotive, which we acquired in November 2024, and will make appropriate changes as we integrate Nissens Automotive into the Company’s overall internal control over financial reporting process.