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MWW Automotive Reports Financial Results for the First Fiscal Quarter 2013
HOWELL, Mich., Feb. 19, 2013 /PRNewswire/ -- MWW Automotive Group (OTCQB: MWWC); a global design, engineering, and manufacturing firm serving some of the world's leading automotive and industrial manufacturers and design firms, announced today its financial results for the First Quarter 2013, ending on December 31, 2012.
"While we have been able to considerably improve our balance sheet in specific sections and will continue to do so in the months and years to come, we have not yet produced the revenues that appropriately reflect the level of our turn around," states Chuck Pinkerton of Marketing Worldwide Corp. "Nevertheless, based on recent developments, the Company's management and consulting teams believe that the Company will report positive cash flow from operating activities by the end of 2013. Achieving these goals is subject to the Company's ability to appropriately finance the rapidly increasing order and resulting production volume and resolve certain remaining issues as outlined in our filings. We do believe that the prospects of the company have improved significantly and it is now on a clear path of recovery."
Chuck Pinkerton, continues: "While our revenues are still in a partial pre-production-recovery mode, as we have earlier announced, we expect to demonstrate improving financial and operational performance beginning with our 2nd quarter 2013 results, which are due on May 15, 2013. Already in this first quarter ending on December 31, 2012, we have set the basis for improving performance by keeping our operating expenses close to the same level as in the year before. At the same time we have continued to secure new business, have been expanding our production facilities, broadened production capabilities, and disbursed significant resources for several awarded pre-production projects in preparation for a significant increase in production volume and revenues, beginning in the 2nd quarter of 2013.
Only twenty four months ago our company was dependent on mainly one large client (Toyota), which had created an unsustainable vulnerability for us, painfully demonstrated when we lost that customer because of a general shift within the Toyota organization and we lost the majority of our revenues over night. Based on this experience, we are now spreading our risk over a number of large customers. Most of the MWW extended active client roster programs are now either in full production or an advanced pre-production mode. This includes programs for large clients such as Ford, Chevrolet, Hyundai, Subaru, Toyota (returning business), Nissan, Scion, MAZDA and CNH to name a few.
This has been achieved while at the same time reducing our gross loss from operations by nearly 30% and only slightly increasing the net loss from operations, caused by the necessary expansion in expectation of higher production volume. We expect to significantly improve our performance in the third and fourth quarter 2013 and report positive cash flow from operating activities. While 2012 has been our year to assure the company's survival, the focus for 2013 will be on the aggressive expansion of our business model of diversification and on a more economical approach to financing the company's expansion in support of our share price."
REVENUES
Net revenues were $193,974 for the three months ended December 31, 2012. Our revenues decreased by $29,615 from the three months ended December 31, 2011. This decrease is attributable to the fact that some of the new programs that had already been awarded still have been significantly delayed. At the same time our team was focused on the pre-production of a number of already awarded projects and aggressively pursuing additional business, with a focus on immediate production start.
GROSS LOSS
For the three months ended December 31, 2012, MWW has significantly improved its Gross Loss, which was $26,249 (13.5) in the 1st quarter of 2013, compared to a gross loss of $91,684 (41.05) for the three months ended December 31, 2012. This improvement is based on the fact that MWW sold a greater percentage of its higher margin products during the first quarter of 2013 than in the same period during 2012. The primary components of cost of sales are direct labor and cost of parts and materials. The cost of parts and materials has been consistent from year to year.
OPERATING EXPENSES
Selling, general, and administrative expenses were $350,176 (180% of revenues) in 2012 compared to $253,026 (113% of revenues) during 2011. The increase in costs is attributable to additional production and management staffing added at Colortek, as we carefully ramp up towards future revenue. Management intends to keep costs comparatively low, so that increasing product volume and revenue will result in improving profit margins and eventually net profits. Significant components of operating expenses consist of professional fees, salaries, and impairment losses, some of them accrued or non-cash.
Net Income – Earnings per Share
Net income available to common stockholders improved to a profit of $4,047,258, generated earnings per share of $0.02 in the first quarter of 2013 compared to a ($2,128,659) loss in the first quarter of 2012 an increase of $6,175,917. This increase was partially based on the change in the fair market value of the derivative liabilities. At the same time total liabilities decreased from $16,245,335 in 2012 to $11,883,752 in 2013 and generated earnings per share of $0.02 in Q1 of 2013 as opposed to a loss of $0.02 per share in Q1 of 2012.
Please review the full report on the Company's web site in the investor relations section, or at the SEC website www.sec.gov.
About MWW Automotive Group (MWW)
The MWW Automotive Group's (OTCQB: MWWC) administrative offices are located in Howell, Michigan, with a 46,000 square foot Class A manufacturing and logistics facility in Baroda, Michigan for the production of high quality OE automotive and industrial products. MWW delivers its products and Class A painting, assembly and logistics services directly to major US and Foreign automobile manufacturers' Vehicle Processing Centers (VPC), leading edge show car and performance accessory design firms, and/or assembly lines in North America. MWW's industrial products are delivered directly to the industrial manufacturers for installation in their facilities. MWW provides substantial added value to the sale of vehicles and industrial products for leading international automobile and industrial manufacturers such as Toyota, Chevrolet, Hyundai, Kia Motors, MAZDA, GM, Ford, FIVE AXIS and their strategic partners ROUSH Performance and Polytec/FOHA. For more information visit www.mwwautomotive.comor e-mail investorrelations@mwwautomotive.com.
