Motorcar Parts of America Reports Strong Fiscal 2011 First Quarter Results
Net Income More Than Doubles; Sales Climb
On Monday August 9, 2010, 8:00 am EDT
LOS ANGELES, Aug. 9, 2010 (GLOBE NEWSWIRE) -- Motorcar Parts of America, Inc. (Nasdaq:MPAA - News) 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
Contact:
Maier & Company, Inc.
Gary S. Maier
(310) 442-9852
