LOS ANGELES, Nov. 10, 2008 (GLOBE NEWSWIRE) -- Motorcar Parts of America, Inc. (Nasdaq:MPAA) today reported strong financial performance for its fiscal 2009 second quarter and six-month period - reflecting the company's continued success at controlling costs and improving efficiency.
Net income for the fiscal 2009 second quarter ended September 30, 2008 jumped almost five-fold to $2.3 million, or $0.19 per diluted share, from $466,000, or $0.04 per diluted share, for the comparable period a year earlier. Operating income for the fiscal 2009 second quarter climbed to $5.0 million from $2.4 million a year ago, but was impacted by a non-cash charge of $560,000, or $0.03 per diluted share, recorded in general and administrative expenses to adjust for a significant fluctuation in the value of foreign exchange contracts. Net sales for the fiscal 2009 second quarter were $36.4 million compared with $33.8 million for the same period last year.
Gross profit for the fiscal 2009 second quarter increased 44.4 percent to $11.9 million from $8.2 million for the same period a year ago. Gross margin was 32.7 percent for the fiscal 2009 second quarter compared with 24.4 percent a year earlier, due primarily to increased revenues, lower manufacturing costs and increased operating efficiencies.
Net income for the fiscal 2009 six-month period increased sharply to $5.4 million, or $0.44 per diluted share, from $2.1 million, or $0.18 per diluted share, a year ago. Operating income for the same period increased 62.5 percent to $10.8 million from $6.7 million a year earlier. Net sales for the fiscal 2009 six-month period were $69.1 million compared with $69.3 million a year ago.
Gross profit for the fiscal 2009 six months was $23.4 million compared with $18.4 million for the same period a year ago, with gross margin of 33.8 percent and 26.6 percent for the fiscal 2009 and fiscal 2008 six-month periods, respectively.
"Results for the first six months of fiscal 2009 met expectations and highlight the company's ongoing strategic focus on operating efficiencies. While economic conditions are challenging, the environment for aftermarket remanufactured parts should remain strong. The second half of our fiscal year is off to an excellent start with strong momentum and additional business from new and existing customers," said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America, Inc.
Teleconference and Web Cast
Selwyn Joffe, chairman, president and chief executive officer, and David Lee, chief financial officer, will host an investor conference call today at 10:00 a.m. Pacific time to discuss the company's financial results and operations for its fiscal 2009 second quarter. The call will be open to all interested investors either through a live audio Web broadcast at www.motorcarparts.com or live by calling (877)-675-4750 (domestic) or (719)-325-4859 (international). For those who are not available to listen to the live broadcast, the call will be archived for seven days on Motorcar Parts of America's website. A telephone playback of the conference call will also be available from 4:00 p.m. Pacific time today, November 10, through 9:00 p.m. Pacific time, Monday, November 17, 2008 by calling (888)-203-1112 (domestic) or (719)-457-0820 (international) and using access code: 6477717.
About Motorcar Parts of America
Motorcar Parts of America, Inc. is a remanufacturer of alternators and starters utilized in imported and domestic passenger vehicles and light trucks. Its products are sold to automotive retail outlets and the professional repair market throughout the United States and Canada, with remanufacturing facilities located in California, Mexico and Malaysia, and administrative offices located in California, Tennessee, Mexico, Singapore and Malaysia. Additional information is available at www.motorcarparts.com
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the company's current expectations and beliefs concerning future developments and their potential effects on the company. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the company) and are subject to change based upon various factors. Reference is also made to the Risk Factors set forth in the company's Form 10-K Annual Report filed with the Securities and Exchange Commission (SEC) in June 2008 and in its Form 10-Qs filed with the SEC thereafter for additional risks and uncertainties facing the company. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Six Months Ended Three Months Ended
September 30, September 30,
------------------------- -------------------------
2008 2007 2008 2007
----------- ----------- ----------- -----------
Net sales $69,142,000 $69,260,000 $36,437,000 $33,819,000
Cost of
goods sold 45,756,000 50,815,000 24,531,000 25,574,000
----------- ----------- ----------- -----------
Gross
profit 23,386,000 18,445,000 11,906,000 8,245,000
Operating
expenses:
General and
administra-
tive 9,174,000 9,513,000 4,972,000 4,725,000
Sales and
marketing 2,356,000 1,726,000 1,344,000 797,000
Research and
development 1,043,000 550,000 581,000 275,000
----------- ----------- ----------- -----------
Total
operating
expenses 12,573,000 11,789,000 6,897,000 5,797,000
----------- ----------- ----------- -----------
Operating
income 10,813,000 6,656,000 5,009,000 2,448,000
Other expense
(income):
Interest
expense 1,984,000 3,201,000 1,152,000 1,544,000
Interest
income (18,000) (15,000) (4,000) (1,000)
----------- ----------- ----------- -----------
Income before
income tax
expense 8,847,000 3,470,000 3,861,000 905,000
Income tax
expense 3,495,000 1,412,000 1,541,000 439,000
----------- ----------- ----------- -----------
Net income $ 5,352,000 $ 2,058,000 $ 2,320,000 $ 466,000
=========== =========== =========== ===========
Basic net
income per
share $ 0.44 $ 0.19 $ 0.19 $ 0.04
=========== =========== =========== ===========
Diluted net
income per
share $ 0.44 $ 0.18 $ 0.19 $ 0.04
=========== =========== =========== ===========
Weighted
average number
of shares
outstanding:
Basic 12,029,039 10,979,426 11,987,975 12,043,198
=========== =========== =========== ===========
Diluted 12,158,376 11,351,048 12,130,280 12,402,249
=========== =========== =========== ===========
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
September 30, March 31,
2008 2008
------------- -------------
ASSETS (Unaudited)
Current assets:
Cash $ 129,000 $ 1,935,000
Short-term investments 355,000 373,000
Accounts receivable - net 13,225,000 2,789,000
Inventory - net 29,505,000 32,707,000
Deferred income taxes 5,802,000 5,657,000
Inventory unreturned 3,905,000 4,124,000
Prepaid expenses and other
current assets 1,394,000 1,608,000
------------- -------------
Total current assets 54,315,000 49,193,000
Plant and equipment - net 15,804,000 15,996,000
Long-term core inventory 61,138,000 50,808,000
Long-term core inventory deposit 23,321,000 22,477,000
Long-term accounts receivable -- 767,000
Long-term deferred income taxes 1,346,000 1,357,000
Goodwill 2,091,000 --
Intangible assets - net 2,898,000 --
Other assets 437,000 810,000
------------- -------------
TOTAL ASSETS $ 161,350,000 $ 141,408,000
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 27,237,000 $ 32,401,000
Note payable 1,293,000 --
Accrued liabilities 1,147,000 2,200,000
Accrued salaries and wages 2,325,000 3,396,000
Accrued workers' compensation claims 2,161,000 2,042,000
Income tax payable 2,242,000 392,000
Line of credit 17,550,000 --
Deferred compensation 355,000 373,000
Deferred income 133,000 133,000
Other current liabilities 297,000 448,000
Current portion of capital lease
obligations 1,717,000 1,711,000
------------- -------------
Total current liabilities 56,457,000 43,096,000
Deferred income, less current
portion 55,000 122,000
Deferred core revenue 3,981,000 2,927,000
Deferred gain on sale-leaseback 1,081,000 1,340,000
Other liabilities 621,000 265,000
Capitalized lease obligations,
less current portion 2,268,000 2,565,000
------------- -------------
Total liabilities 64,463,000 50,315,000
Commitments and Contingencies
Shareholders' equity:
Preferred stock; par value $.01 per
share, 5,000,000 shares authorized;
none issued -- --
Series A junior participating
preferred stock; par value $.01
per share, 20,000 shares
authorized; none issued -- --
Common stock; par value $.01 per
share, 20,000,000 shares authorized;
11,962,021 and 12,070,555 shares
issued and outstanding at
September 30, 2008 and
March 31, 2008, respectively 120,000 121,000
Additional paid-in capital 92,336,000 92,663,000
Additional paid-in capital-warrant 1,879,000 1,879,000
Shareholder note receivable -- (682,000)
Accumulated other comprehensive
income 448,000 360,000
Accumulated earnings (deficit) 2,104,000 (3,248,000)
------------- -------------
Total shareholders' equity 96,887,000 91,093,000
------------- -------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 161,350,000 $ 141,408,000
============= =============