Motorcar Parts of America Reports Record Fiscal 2011 Second Quarter Results
Operating Income Jumps 42 Percent on Strong Sales
On Monday November 8, 2010, 8:00 am EST
LOS ANGELES, Nov. 8, 2010 (GLOBE NEWSWIRE) -- Motorcar Parts of America, Inc. (Nasdaq:MPAA - News) today reported record results for its fiscal 2011 second quarter and six months ended September 30, 2010.
Net income for the fiscal 2011 second quarter increased to $3.5 million, or $0.29 per diluted share, compared with net income of $3.4 million, or $0.28 per diluted share, for the comparable period a year earlier. Results for the same period a year earlier included a $1.3 million, or $0.07 per diluted share, gain related to the company's acquisition of certain assets of Reliance Automotive in August 2009.
Net sales for the fiscal 2011 second quarter increased to $41.0 million from $39.4 million for the same period last year.
Gross profit for the fiscal 2011 second quarter was $12.7 million compared with $10.8 million for the same period a year ago. Gross profit as a percentage of net sales for the fiscal 2011 second quarter was 30.9 percent compared with 27.4 percent in the same quarter a year ago.
Operating income for the fiscal second quarter increased 42 percent to $7.5 million from $5.3 million in the same period a year ago.
Net income for the fiscal 2011 six-month period increased 30.0 percent to $6.0 million, or $0.49 per diluted share, from $4.6 million, or $0.38 per diluted share, a year earlier. Net sales increased seven percent to $77.2 million from $72.1 million in the corresponding period a year ago.
Gross profit for the fiscal 2011 six-months was $24.2 million compared with $18.0 million in the same period in fiscal 2011. Gross profit as a percentage of net sales for the same period was 31.4 percent compared with 24.9 percent a year earlier.
Operating income for the six months was $12.9 million compared with $8.3 million for the same period in fiscal 2010.
"The company's fiscal second quarter results reflect continued solid growth in our business and strong operating performance, supported by positive automotive aftermarket dynamics and strong industry momentum. Equally important, our team has been able to capitalize on these positive trends and execute on the company's healthy business model to achieve our goals," 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 10:00 a.m. Pacific time to discuss the company's financial results and operations for its fiscal 2011 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)-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 on Monday, November 8, 2010 through 8:59 p.m. Pacific time on Sunday, November 14, 2010 by calling (800)-642-1687 (domestic) or (706)-645-9291 (international) and using access code: 16370843.
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.
(Financial tables follow)
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Three Months Ended
September 30, Six Months Ended
September 30,
2010 2009 2010 2009
Net sales $ 40,977,000 $ 39,437,000 $ 77,211,000 $ 72,127,000
Cost of goods sold 28,295,000 28,621,000 52,984,000 54,140,000
Gross profit 12,682,000 10,816,000 24,227,000 17,987,000
Operating expenses:
General and administrative 3,571,000 3,653,000 7,595,000 6,165,000
Sales and marketing 1,201,000 1,535,000 2,941,000 2,807,000
Research and development 396,000 334,000 762,000 668,000
Total operating expenses 5,168,000 5,522,000 11,298,000 9,640,000
Operating income 7,514,000 5,294,000 12,929,000 8,347,000
Other expense (income):
Gain on acquisition -- (1,331,000) -- (1,331,000)
Interest expense -- net 1,701,000 974,000 3,303,000 1,970,000
Income before income tax expense 5,813,000 5,651,000 9,626,000 7,708,000
Income tax expense 2,312,000 2,216,000 3,605,000 3,078,000
Net income $ 3,501,000 $ 3,435,000 $ 6,021,000 $ 4,630,000
Basic net income per share $ 0.29 $ 0.29 $ 0.50 $ 0.39
Diluted net income per share $ 0.29 $ 0.28 $ 0.49 $ 0.38
Weighted average number of shares outstanding:
Basic 12,038,636 11,973,510 12,043,818 11,967,797
Diluted 12,202,507 12,101,997 12,220,257 12,086,298
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
September 30, 2010 March 31, 2010
ASSETS (Unaudited)
Current assets:
Cash $ 5,815,000 $ 1,210,000
Short-term investments 265,000 451,000
Accounts receivable -- net -- 5,553,000
Inventory-- net 27,773,000 31,547,000
Inventory unreturned 4,366,000 3,924,000
Deferred income taxes 8,455,000 8,391,000
Prepaid expenses and other current assets 1,928,000 2,735,000
Total current assets 48,602,000 53,811,000
Plant and equipment -- net 11,563,000 12,693,000
Long-term core inventory -- net 76,302,000 67,957,000
Long-term core inventory deposit 25,984,000 25,768,000
Long-term deferred income taxes 722,000 951,000
Long-term note receivable 1,894,000 --
Intangible assets -- net 5,917,000 6,304,000
Other assets 1,660,000 1,549,000
TOTAL ASSETS $ 172,644,000 $ 169,033,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 30,190,000 $ 31,603,000
Accrued liabilities 3,134,000 1,863,000
Accrued salaries and wages 2,574,000 3,590,000
Accrued workers' compensation claims 1,350,000 1,574,000
Customer finished goods returns accrual 6,696,000 7,454,000
Income tax payable 535,000 678,000
Other current liabilities 478,000 697,000
Current portion of term loan 2,000,000 2,000,000
Current portion of capital lease obligations 308,000 953,000
Total current liabilities 47,265,000 50,412,000
Term loan, less current portion 6,500,000 7,500,000
Deferred core revenue 7,738,000 6,061,000
Deferred gain on sale-leaseback 58,000 319,000
Other liabilities 639,000 676,000
Capital lease obligations, less current portion 304,000 445,000
Total liabilities 62,504,000 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 September 30, 2010 and March 31, 2010, respectively 121,000 120,000
Treasury stock, at cost, 14,400 shares of common stock at September 30, 2010 and none at March 31, 2010 (89,000) --
Additional paid-in capital 92,934,000 92,792,000
Additional paid-in capital-warrant 1,879,000 1,879,000
Accumulated other comprehensive loss (981,000) (1,426,000)
Retained earnings 16,276,000 10,255,000
Total shareholders' equity 110,140,000 103,620,000
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 172,644,000 $ 169,033,000
Contact:
Maier & Company, Inc.
Gary S. Maier
(310) 442-9852
