updated 2/7/2011 8:16:45 AM ET 2011-02-07T13:16:45

LOS ANGELES, Feb. 7, 2011 (GLOBE NEWSWIRE) -- Motorcar Parts of America, Inc. (Nasdaq:MPAA) today reported solid results for its fiscal 2011 third quarter and nine months ended December 31, 2010.

Net income for the fiscal 2011 third quarter increased 75.3 percent to $3.8 million, or $0.30 per diluted share, from net income of $2.1 million, or $0.18 per diluted share, for the comparable period a year earlier. Net sales for the fiscal 2011 third quarter increased 13.2 percent to $41.3 million from $36.5 million for the same period last year.

Gross profit for the fiscal 2011 third quarter was $13.2 million compared with $10.9 million for the same period a year ago. Gross profit as a percentage of net sales for the fiscal 2011 third quarter was 31.9 percent compared with 29.8 percent in the same quarter a year ago.

Operating income for the fiscal 2011 third quarter increased 27.6 percent to $6.6 million from $5.2 million in the same period a year ago.

Net income for the fiscal 2011 nine-month period increased 44.4 percent to $9.8 million, or $0.80 per diluted share, from $6.8 million, or $0.56 per diluted share, a year earlier. Net sales for the nine months increased 9.1 percent to $118.5 million from $108.6 million in the corresponding period a year ago.

Gross profit for the fiscal 2011 nine-month period was $37.4 million compared with $28.9 million in the same period in fiscal 2010. Gross profit as a percentage of net sales for the same period was 31.6 percent compared with 26.6 percent a year earlier.

Operating income for the nine months increased 44.4 percent to $19.5 million from $13.5 million for the same period in fiscal 2010.

"The company's record results for the fiscal third quarter reflect continued solid growth and strong operating performance in our base business. It is a great tribute to an excellent team of people working passionately to build value for our shareholders. We look forward to expanding the company's product line to include fast-growing under-the-car products through our anticipated acquisition of Fenwick Automotive early in the upcoming fiscal year," 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 third 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 1:00 p.m. Pacific time today through 8:59 p.m. Pacific time on Monday, February 14, 2011 by calling (800) 642-1687 (domestic) or (706) 645-9291 (international) and using access code: 39959147.

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 Nine Months Ended
  December 31,  December 31, 
  2010 2009 2010 2009
         
Net sales  $ 41,288,000  $ 36,482,000  $ 118,499,000  $ 108,609,000
Cost of goods sold  28,115,000  25,605,000  81,099,000  79,745,000
Gross profit  13,173,000  10,877,000  37,400,000  28,864,000
Operating expenses:        
General and administrative  4,384,000  3,801,000  11,979,000  9,966,000
Sales and marketing  1,798,000  1,548,000  4,739,000  4,355,000
Research and development  391,000  355,000  1,153,000  1,023,000
Total operating expenses  6,573,000  5,704,000  17,871,000  15,344,000
Operating income  6,600,000  5,173,000  19,529,000  13,520,000
Other expense (income):        
Gain on acquisition  --   --   --   (1,331,000)
Interest expense — net  997,000  1,776,000  4,300,000  3,746,000
Income before income tax expense  5,603,000  3,397,000  15,229,000  11,105,000
Income tax expense  1,842,000  1,252,000  5,447,000  4,330,000
Net income  $ 3,761,000  $ 2,145,000  $ 9,782,000  $ 6,775,000
Basic net income per share  $ 0.31  $ 0.18  $ 0.81  $ 0.57
Diluted net income per share  $ 0.30  $ 0.18  $ 0.80  $ 0.56
Weighted average number of shares outstanding:        
Basic 12,042,792 11,996,021 12,038,296 11,977,239
Diluted 12,399,211 12,126,420 12,254,510 12,098,126
         
         
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES

Consolidated Balance Sheets
     
  December 31, 2010 March 31, 2010
ASSETS (Unaudited)  
Current assets:    
Cash   $ 622,000  $ 1,210,000
Short-term investments  289,000  451,000
Accounts receivable — net  2,758,000  5,553,000
Inventory— net  28,781,000  31,547,000
Inventory unreturned  4,151,000  3,924,000
Deferred income taxes  8,431,000  8,391,000
Prepaid expenses and other current assets  2,677,000  2,735,000
Total current assets  47,709,000  53,811,000
Plant and equipment — net  11,468,000  12,693,000
Long-term core inventory — net  78,603,000  67,957,000
Long-term core inventory deposit  25,984,000  25,768,000
Long-term deferred income taxes  760,000  951,000
Long-term note receivable  4,863,000  --
Intangible assets — net  5,724,000  6,304,000
Other assets  1,722,000  1,549,000
TOTAL ASSETS  $ 176,833,000  $ 169,033,000
LIABILITIES AND SHAREHOLDERS' EQUITY    
Current liabilities:     
Accounts payable  $ 31,856,000  $ 31,603,000
Accrued liabilities  1,006,000  1,863,000
Accrued salaries and wages  2,936,000  3,590,000
Accrued workers' compensation claims  1,265,000  1,574,000
Customer finished goods returns accrual  7,408,000  7,454,000
Income tax payable  49,000  678,000
Revolving loan  300,000  -- 
Other current liabilities  527,000  697,000
Current portion of term loan  2,000,000  2,000,000
Current portion of capital lease obligations  267,000  953,000
Total current liabilities  47,614,000  50,412,000
Term loan, less current portion  6,000,000  7,500,000
Deferred core revenue  7,977,000  6,061,000
Deferred gain on sale-leaseback  13,000  319,000
Other liabilities  686,000  676,000
Capital lease obligations, less current portion  249,000  445,000
Total liabilities  62,539,000  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;     
12,067,271 and 12,026,021 shares issued and outstanding at December 31, 2010     
and March 31, 2010, respectively  121,000  120,000
Treasury stock, at cost, 14,400 shares of common stock at December 31, 2010 and     
none at March 31, 2010  (89,000)  -- 
Additional paid-in capital  93,081,000  92,792,000
Additional paid-in capital-warrant  1,879,000  1,879,000
Accumulated other comprehensive loss  (735,000)  (1,426,000)
Retained earnings  20,037,000  10,255,000
Total shareholders' equity  114,294,000  103,620,000
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $ 176,833,000  $ 169,033,000
     
CONTACT: Gary S. Maier
         Maier & Company, Inc.
         (310) 442-9852

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