LOS ANGELES, Aug. 9, 2010 (GLOBE NEWSWIRE) -- Motorcar Parts of America, Inc. (Nasdaq:MPAA) today reported strong results for its fiscal 2011 first quarter ended June 30, 2010, reflecting increased sales and improved productivity.
Net income for the fiscal 2011 first quarter climbed sharply to $2.5 million, or $0.21 per diluted share, compared with net income of $1.2 million, or $0.10 per diluted share, for the comparable period a year earlier.
Net sales for the fiscal 2011 first quarter increased 10.8 percent to $36.2 million from $32.7 million for the same period last year.
Gross profit for the fiscal 2011 first quarter was $11.5 million compared with $7.2 million for the same period a year ago.
Operating income for the fiscal first quarter climbed 77.4 percent to $5.4 million from $3.1 million in the same period a year ago.
General and administrative expenses were negatively impacted by a $471,000 non-cash loss as a result of negative foreign currency fluctuations in the fiscal 2011 first quarter. The company benefitted in the same period a year earlier as a result of a non-cash gain in foreign currency fluctuations of $964,000.
"The 2011 fiscal year is off to an excellent start, with strong sales momentum and solid profitability as the company continues to focus on operating leverage and increased usage of available capacity," said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts.
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 9:00 a.m. Pacific time to discuss the company's financial results and operations for its fiscal 2011 first 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)-776-4016 (domestic) or (973)-638-3231 (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 approximately 12:00 noon Pacific time today through 8:59 p.m. Pacific time on Monday, August 16, 2010 by calling (800)-642-1687 (domestic) or (706)-645-9291 (international) and using access code: 90707301.
About Motorcar Parts of America
Motorcar Parts of America, Inc. is a remanufacturer of alternators and starters utilized in imported and domestic passenger vehicles, light trucks and heavy duty applications. 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 2010 and in its Form 10-Q 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) |
||||
| Three Months Ended | ||||
| June 30, | ||||
| 2010 | 2009 | |||
| Net sales | $ 36,234,000 | $ 32,690,000 | ||
| Cost of goods sold | 24,689,000 | 25,519,000 | ||
| Gross profit | 11,545,000 | 7,171,000 | ||
| Operating expenses: | ||||
| General and administrative | 4,024,000 | 2,512,000 | ||
| Sales and marketing | 1,740,000 | 1,272,000 | ||
| Research and development | 366,000 | 334,000 | ||
| Total operating expenses | 6,130,000 | 4,118,000 | ||
| Operating income | 5,415,000 | 3,053,000 | ||
| Other expense: | ||||
| Interest expense | 1,602,000 | 996,000 | ||
| Income before income tax expense | 3,813,000 | 2,057,000 | ||
| Income tax expense | 1,293,000 | 862,000 | ||
| Net income | $ 2,520,000 | $ 1,195,000 | ||
| Basic net income per share | $ 0.21 | $ 0.10 | ||
| Diluted net income per share | $ 0.21 | $ 0.10 | ||
| Weighted average number of shares outstanding: | ||||
| Basic | 12,049,057 | 11,962,021 | ||
| Diluted | 12,204,319 | 12,071,451 | ||
|
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES Consolidated Balance Sheets |
||||
| June 30, 2010 | March 31, 2010 | |||
| ASSETS | (Unaudited) | |||
| Current assets: | ||||
| Cash | $ 1,759,000 | $ 1,210,000 | ||
| Short-term investments | 232,000 | 451,000 | ||
| Accounts receivable — net | 3,267,000 | 5,553,000 | ||
| Inventory— net | 30,018,000 | 31,547,000 | ||
| Inventory unreturned | 4,664,000 | 3,924,000 | ||
| Deferred income taxes | 8,436,000 | 8,391,000 | ||
| Prepaid expenses and other current assets | 1,906,000 | 2,735,000 | ||
| Total current assets | 50,282,000 | 53,811,000 | ||
| Plant and equipment — net | 11,879,000 | 12,693,000 | ||
| Long-term core inventory | 70,646,000 | 67,957,000 | ||
| Long-term core inventory deposit | 25,768,000 | 25,768,000 | ||
| Long-term deferred income taxes | 720,000 | 951,000 | ||
| Intangible assets — net | 6,110,000 | 6,304,000 | ||
| Other assets | 1,604,000 | 1,549,000 | ||
| TOTAL ASSETS | $ 167,009,000 | $ 169,033,000 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | $ 27,185,000 | $ 31,603,000 | ||
| Accrued liabilities | 1,377,000 | 1,863,000 | ||
| Accrued salaries and wages | 2,423,000 | 3,590,000 | ||
| Accrued workers' compensation claims | 1,435,000 | 1,574,000 | ||
| Customer finished goods returns accrual | 7,481,000 | 7,454,000 | ||
| Income tax payable | 1,624,000 | 678,000 | ||
| Revolving loan | 1,800,000 | -- | ||
| Other current liabilities | 468,000 | 697,000 | ||
| Current portion of term loan | 2,000,000 | 2,000,000 | ||
| Current portion of capital lease obligations | 580,000 | 953,000 | ||
| Total current liabilities | 46,373,000 | 50,412,000 | ||
| Term loan, less current portion | 7,000,000 | 7,500,000 | ||
| Deferred core revenue | 6,197,000 | 6,061,000 | ||
| Deferred gain on sale-leaseback | 188,000 | 319,000 | ||
| Other liabilities | 607,000 | 676,000 | ||
| Capital lease obligations, less current portion | 365,000 | 445,000 | ||
| Total liabilities | 60,730,000 | 65,413,000 | ||
| 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; 12,052,271 and 12,026,021 shares issued and outstanding at June 30, 2010 and March, 31 2010, respectively |
121,000 | 120,000 | ||
| Additional paid-in capital | 92,926,000 | 92,792,000 | ||
| Additional paid-in capital-warrant | 1,879,000 | 1,879,000 | ||
| Accumulated other comprehensive loss | (1,422,000) | (1,426,000) | ||
| Retained earnings | 12,775,000 | 10,255,000 | ||
| Total shareholders' equity | 106,279,000 | 103,620,000 | ||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 167,009,000 | $ 169,033,000 | ||