Motorcar Parts of America Reports Fiscal 2010 Fourth Quarter/Year-End Results
Sales Climb 29 Percent for Quarter; Net Income Up Sharply for Year
On Monday June 14, 2010, 8:00 am EDT
LOS ANGELES, June 14, 2010 (GLOBE NEWSWIRE) -- Motorcar Parts of America, Inc. (Nasdaq:MPAA - News) today reported strong results for its year ended March 31, 2010, reflecting record fourth quarter and full-year sales and a significant jump in net income for fiscal 2010.
Net sales for the fiscal 2010 fourth quarter were $38.6 million, compared with $29.9 million for the same period last year.
Gross profit for the fiscal 2010 fourth quarter was $12.5 million (or 32% gross margin), compared with $6.0 million (or 20% gross margin) for the same period a year ago.
Operating income for the fiscal fourth quarter climbed to $4.8 million, from an operating loss of $680,000 in the same period a year ago.
Net income for the fiscal 2010 fourth quarter was $2.9 million, or $0.24 per diluted share, compared with a net loss of $1.2 million, or $0.10 per share, for the comparable period a year earlier.
Net sales for fiscal 2010 climbed 9.2 percent to a record $147.2 million, compared with $134.9 million a year ago. Gross profit for fiscal 2010 was $41.3 million, compared with $39.5 million a year earlier, with a gross margin of 28 percent compared with 29 percent in fiscal 2009.
Operating income for fiscal 2010 was $18.3 million, compared with $10.6 million a year earlier.
Net income for fiscal 2010 climbed to $9.6 million, or $0.80 per diluted share, compared with $3.9 million, or $0.32 per diluted share, a year ago.
"Our record sales for fiscal 2010 reflect our ability to build strong long-term relationships with leading automotive retailers and the professional market," said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts.
Joffe noted that "our performance for the quarter validates our belief that as we continue to grow market share, operating performance is enhanced with very little incremental expenditure. As we enter a new fiscal year, operating leverage and increased usage of available production capacity continue to be important strategic components of the company's year-over-year growth plans -- supported by organic sales increases and acquisitions at appropriate valuations," Joffe added.
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 fiscal 2010. 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 1:00 p.m. Pacific Time today through 8:59 p.m. Pacific Time on Monday, June 21, 2010 by calling (800)-642-1687 (domestic) or (706)-645-9291 (international) and using access code: 75655489.
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-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.
(Financial tables follow)
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Three Months Ended
March 31, Year Ended
March 31,
2010 2009 2010 2009
(Unaudited) (Unaudited)
Net sales $ 38,616,000 $ 29,922,000 $ 147,225,000 $ 134,866,000
Cost of goods sold 26,153,000 23,891,000 105,898,000 95,319,000
Gross profit 12,463,000 6,031,000 41,327,000 39,547,000
Operating expenses:
General and administrative 5,614,000 4,845,000 15,580,000 19,479,000
Sales and marketing 1,664,000 1,331,000 6,019,000 5,242,000
Research and development 398,000 435,000 1,421,000 1,993,000
Impairment of goodwill -- 100,000 -- 2,191,000
Total operating expenses 7,676,000 6,711,000 23,020,000 28,905,000
Operating income (loss) 4,787,000 (680,000) 18,307,000 10,642,000
Other expense (income):
Gain on acquisition -- -- (1,331,000) --
Interest expense 964,000 1,027,000 4,710,000 4,215,000
Interest income -- -- -- (19,000)
Income (loss) before income tax expense (benefit) 3,823,000 (1,707,000) 14,928,000 6,446,000
Income tax expense (benefit) 952,000 (526,000) 5,282,000 2,589,000
Net income (loss) $ 2,871,000 $ (1,181,000) $ 9,646,000 $ 3,857,000
Basic net income (loss) per share $ 0.24 $ (0.10) $ 0.80 $ 0.32
Diluted net income (loss) per share $ 0.24 $ (0.10) $ 0.80 $ 0.32
Weighted average number of shares outstanding:
Basic 12,023,688 11,962,021 11,988,692 11,995,622
Diluted 12,156,354 11,962,021 12,116,615 12,086,126
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
March 31,
2010 2009
ASSETS
Current assets:
Cash $ 1,210,000 $ 452,000
Short-term investments 451,000 335,000
Accounts receivable -- net -- 11,121,000
Inventory-- net 31,547,000 27,923,000
Inventory unreturned 3,924,000 4,708,000
Deferred income taxes 8,391,000 8,277,000
Prepaid expenses and other current assets 2,735,000 1,355,000
Total current assets 48,258,000 54,171,000
Plant and equipment -- net 12,693,000 13,997,000
Long-term core inventory 67,957,000 62,821,000
Long-term core inventory deposit 25,768,000 24,451,000
Long-term deferred income taxes 951,000 989,000
Intangible assets -- net 6,304,000 2,564,000
Other assets 1,549,000 595,000
TOTAL ASSETS $ 163,480,000 $ 159,588,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 31,603,000 $ 24,507,000
Accrued liabilities 3,764,000 1,451,000
Accrued salaries and wages 3,590,000 3,162,000
Accrued workers' compensation claims 1,574,000 1,895,000
Income tax payable 678,000 1,158,000
Note payable -- 722,000
Revolving loan -- 21,600,000
Other current liabilities 697,000 1,624,000
Current portion of term loan 2,000,000 --
Current portion of capital lease obligations 953,000 1,621,000
Total current liabilities 44,859,000 57,740,000
Term loan, less current portion 7,500,000 --
Deferred core revenue 6,061,000 5,934,000
Deferred gain on sale-leaseback 319,000 843,000
Other liabilities 676,000 587,000
Capital lease obligations, less current portion 445,000 1,401,000
Total liabilities 59,860,000 66,505,000
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; 12,026,021 and 11,962,021 shares issued and outstanding at March 31, 2010 and 2009, respectively 120,000 120,000
Additional paid-in capital 92,792,000 92,459,000
Additional paid-in capital-warrant 1,879,000 1,879,000
Accumulated other comprehensive loss (1,426,000) (1,984,000)
Retained earnings 10,255,000 609,000
Total shareholders' equity 103,620,000 93,083,000
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 163,480,000 $ 159,588,000
Contact:
Maier & Company, Inc.
Gary S. Maier
(310) 442-9852
