A. Carolina Jolly • Gabelli Funds

Question 1

A. Carolina Jolly's questions to Standard Motor Products Inc (SMP) leadership • Q2 2025

Aug 5, 2025

Question

A. Carolina Jolly from Gabelli Funds asked about the expected margin and efficiency impact once the Shawnee distribution center is fully operational post-2025. She also questioned whether tariff costs might decrease in the third quarter compared to the second, based on recent developments.

Answer

CFO Nathan Iles explained that while the Shawnee DC will bring efficiencies, higher lease and depreciation expenses will result in a net cost increase of $3-4 million from the 2023 baseline. Chair, CEO & President Eric Sills clarified that based on currently implemented tariffs, costs are not expected to decrease in Q3. He reiterated that pricing actions only cover tariffs that have already taken effect, and future changes will be addressed as they occur.

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Question 2

A. Carolina Jolly's questions to Motorcar Parts of America Inc (MPAA) leadership • Q4 2025

Jun 11, 2025

Question

A. Carolina Jolly from Gabelli Funds sought clarification on the tariff impact, asking if the amount seen in the quarter was representative of future impacts. She also questioned whether the announced price increases have already been implemented and asked for the key catalysts behind the expected margin expansion in the next fiscal year.

Answer

Chairman, President & CEO Selwyn Joffe stated that the timing of tariff impacts is currently unpredictable but will resolve as price increases take full effect. He confirmed that nearly 100% of the necessary price increases have already been accepted by customers. Both Joffe and CFO David Lee attributed the expected margin expansion to increased sales volume leading to better overhead absorption and various ongoing operational cost-reduction initiatives.