Good day everyone and welcome to today’s Standard Motor Products Fourth Quarter Earnings Release. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note this program is being recorded. It is now my pleasure to turn today’s meeting over to Mr. Larry Sills. Please go ahead.

Good morning everybody and welcome to our fourth quarter conference call. We are following a slightly different format this time as you see, because we want to do have the opportunity to hear from Eric Sills our new President. So, the sequence will be, first, Jim Burke will review the numbers, then I will give a general overview of the company and the industry and then third, Eric will update you on the integration of our three latest acquisitions. Then of course, we will open for questions. So, let’s begin with the numbers and I call on Jim Burke.

Okay, thank you, Larry. Good morning. First let me begin as a preliminary note, I would like to point out that some of the material, we will be discussing today may include forward-looking statements regarding our business and expected financial results. When we use words like anticipate, believe, estimate or expect, these are generally forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they are based on information currently available to us, and certain assumptions made by us and we cannot assure you that they will prove correct. You should also read our filings with the Securities and Exchange Commission for a discussion of the risks and uncertainties that could cause our actual results to differ from our forward-looking statements. We are very pleased to report our strong performance for the fourth quarter and full year 2014. These results support our positive outlook for the future as reflected in our previously announced 15% dividend increase from $0.13 to $0.15 per quarter payable March 2 and a new 2015 share repurchase program for $10 million. Looking at the P&L, consolidated net sales in Q4 2014 were $218.1 million, down $654,000 or 0.3% and year-to-date, net sales were $980.4 million, down $3.3 million or again 0.3%. By segment, Engine Management net sales in Q4 2014 were $175.9 million, which was slightly ahead of Q4 2013’s net sales. We are very pleased to match or slightly exceed last year since sales were up 14% in last year’s fourth quarter. Engine Management net sales for the full year 2014 was $709.3 million, which was slightly below 2013 net sales of $711.2 million. Larry will further touch on sales performance shortly. Temperature Control net sales in Q4 2014 were $39.7 million, up $1.4 million or 3.7% and year-to-date were…

Okay, so, let me begin by saying how proud I am of our people. Despite sales, that were below our expectation and I’ll come back to that in a minute. Our folks were able to achieve significant operating improvements and the result, an all-time record of profit for the company. This was established and accomplished through the skill and efforts of hundreds and hundreds of people, different parts of the company, many locations, we are now manufacturing products we used to buy. We have had savings in purchased items making use of our engineering office in Hong Kong. We’ve had expense control in all areas and we’ve done a fine job which you’ll hear about shortly integrating our recent acquisitions. Result, an all-time profit record and we congratulate and thank all our people. I’ll talk about sales for a second and then I’ll turn it over to Eric. As we say, we were not pleased with our sales performance this year. In Temperature Control, as we all know, it’s a highly weather-related business and unfortunately, 2014 was the second cool summer in a row. As a result, sales suffered for the second year in a row. Now, our goal, our strategy is to position this division in such a way that we’ll do well in a cool summer and very well in a hot summer. We are making strides here. We build up our Mexican manufacturing operation. It’s very cost-efficient, high-quality and we are beginning to gain the benefits of our joint venture in China. So we are making strides, although there is still definite room for improvement. In Engine Management, as we spoke to you during the earlier reports of the year, what we were seeing was that our customers were achieving 3% to 5% increases in their sales…

Thank you and good morning everybody. It’s a pleasure to be with you here today. Before I talk about the specifics of the three deals, I thought I would take a minute to explain our acquisition strategy. Our primary focus is on staying reasonably close to home with related businesses either by acquiring what we call bolt-ons or competitors, or vertical integration type acquisitions where we acquire suppliers of ours allowing us to become more basic manufacturer, lowering our costs and gaining increased control over our supply chain. The rationale for this approach, these types of deals have clearly defined benefits with demonstrable and immediate synergies and with minimal risk. But in addition to strengthening our core business, they also tend to get us into something adjacent to our core business either a new market, a new product category or possibly in a new geography. So with the strategy we have been very active recently with seven deals over the last three or so years and thereof bring you up to speed on the three deals that we did in 2014. The first was Pensacola Fuel Injection, Pensacola is a re-manufacturer of diesel injectors, injector pumps, high pressure oil pumps and some turbo chargers, and they were our primary supplier of these products. Diesel is a huge growth category for us and one that we needed to be basic manufacturers in. So we acquired their re-manufacturing operations in January of last year and within six months, we relocated all of that production to our Grapevine Texas plant, Grapevine being our center of excellence for re-manufacturing which is the primary skill set needed in this type of business. Now since that time, we have made significant strides improving our manufacturing processes, improving the product itself and while there is still much…

Okay. Well, thanks for listening. As we said, we are very pleased with the fourth quarter and the year and we look forward to 2015. And now we will open for questions.

[Operator Instructions] We will take our first question from Chris Van Horn with FBR Capital Markets. Your line is open. Q –Cole Allen: Good morning.

Good morning, Chris. Q –Cole Allen: This is actually Cole Allen on for Chris. So, let’s get started. I have a few quick questions. First off, you guys mentioned that 4Q, your customers evened out the imbalance between their increase in sales and then you guys increase in sales to them. What are you guys seeing from your customers so far in 1Q 2015?

That’s a good question, but it’s really too soon to make any comments. It’s – we are only a few weeks into the year at this point. So I prefer to hold judgment on that and we can discuss that further when we discuss our first quarter results in a few weeks. Q –Cole Allen: Okay, okay, that’s fine. Thank you, and then another question I had was, all three acquisitions seem to fit well with your business. Are you guys looking at any more acquisitions right now? I know you said that you are looking for bolt-on or verticals, but, what should we expect from the acquisition front as we head into 2015? A –James Burke: Yes, it’s Jim Burke speaking. We are continuously looking at opportunities and again, we are pleased with the healthy balance sheet that we have. But again, once we find some, we stay close to the two categories, Engine Management and Temperature Control and look forward to hopefully having finding something in the future. We are always evaluating opportunities. Q –Cole Allen: Okay, okay, thanks so much. And one last quick one. You guys instituted or expanded the share repurchase program around $10 million, which was really good. What is your plan on executing that? Is that kind of like spread out between the next four quarters or is that all once? What are you guys thinking there? A –Lawrence Sills: Again, the timing will be over the course of the year, but obviously we’ll also be evaluating the markets and that. So, we look to – it could be over the course of the full year. Q –Cole Allen: Okay, thanks so much. Great quarter guys. A –Lawrence Sills: Thank you. A –James Burke: Thank you.

Thank you. We will go next to Scott Stember with Sidoti & Company. Your line is open.

Good morning and thanks for taking my questions. A –Lawrence Sills: Good morning. A –James Burke: Good morning Scott.

Jim, you made some comments about Temperature Control, about expectations for margins in the first half of the year and getting better in the back half of the year, could you maybe talk about for the full year where you would see the margins on a year-over-year basis? And maybe also just explain a little more granular the impacts in the first half there? Thank you. A –James Burke: Okay, very good. Okay, and because it’s a seasonal nature of the business, so the products that were – to understand, the products were building in the second half of 2014 that’s really gone into inventory with less production units. You can think of it on an average cost per piece which is going to be higher. Those are going to be the units just in on a first-in first-out basis that will be selling in the first half. So, I see margins in the first half being lower than we’ll finish for the year. On a normal season, we still think we have invested with opportunities from the Gwo Yng Annex benefits that will generate and I am looking for year-over-year improvements in Temperature Control. Our stated goal is to be able to get Temperature Control back to the 23%, 24% margin level. I am not going on record to say that will be next year, but that’s our goal to get on there and then for continuous improvement afterwards.

Okay, and maybe just touch base on the margins expectations in the Engine Management. You’ve seen a lot of benefit from acquisitions and more outsourcing of product. What’s the outlook for the year there? Would you expect growth there as well? A –James Burke: Yes, again, we are looking for year-over-year improvement. I did point out that we had – I think it was five straight years there where we had significant gains, but our day-to-day efforts of sourcing and in-house manufacturing and engineering efforts, we look for the combination of all those items offset by whatever inflationary cost you have for net incremental improvements year-over-year. Again assuming rational pricing in the marketplace.

Gotcha and, last question, I think, last quarter you guys talked about with Gwo Yng, the opportunity to benefit from winter-related products. Could you talk about the outlook for that and essential timing? A –Lawrence Sills: Gwo Yng for winter-related products, it’s primarily a Temp business. We may have a little bit more going on there. But I don’t think anything eminent. But…

Gwo Yng is providing air-conditioning related parts. So, they are much more of a summer business. We do have certain parts of our line that are winter-related, heater – winter-related, heater-related, but that’s not Gwo Yng.

Okay, gotcha. All right, thanks so much. A –Lawrence Sills: All right, thank you Scott.

[Operator Instructions] We’ll go next to Bret Jordan with BB&T Capital Markets. Your line is open.

Good morning this is actually David Kelley in for Bret this morning. Thanks for taking my questions. Just initially on – I think we discussed over the past years, so that the last couple summers have certainly been mild. What is your expectation there and what are your feelings on customer inventory levels and Temperature Control as we head into the spring season and maybe, opportunity here for ordering patterns assuming a normalized summer in 2015? A –Lawrence Sills: Well, we do get information on customer inventories and frankly I’ve been pleasantly surprised – one would have thought that after two poor summers in a row, people would have oversupply of inventory. I think our customers are getting very sophisticated and we work with them as close as we can. So, I am not seeing a lot of excess inventory out there at this point. So, we’ll wait to see what the summer holds.

Okay, great. Thank you. And then a follow-up also on the – I think the acquisition questions earlier. Have you seen an uptick and say, the multiples that historic averages you’ve paid over the last few years and recent years or maybe expectations for2015? I mean, it sounds like people are fairly bullish on industry growth this year and just want to get your thoughts on maybe the multiples you are seeing in the market right now? A –James Burke: Again, David, I am reading and seeing some of the multiples that are out there recently and they were higher, I think at one point maybe multiples were possibly in the 5 to 6 range and there has been few deals where they have been north of that. Our key is to look for bolt-on acquisitions that we can find where we have a critical mass of that potential supplier or a customer that’s in their competitor. So, I don’t envision multiples increasing for us. We look for product lines where we can integrate and again, we – once we have any opportunity to announce something, we’ll be pleased to be forthcoming.

All right. Great, thank you. I appreciate the color.

[Operator Instructions] And we have no further questions at this time.

Okay, with that, I would like to thank everyone for joining our call today. Thank you. Good bye.

Thank you.