updated 6/13/2011 8:16:57 AM ET 2011-06-13T12:16:57

LOS ANGELES, June 13, 2011 (GLOBE NEWSWIRE) -- Motorcar Parts of America, Inc. (Nasdaq:MPAA) today reported strong results for its fiscal 2011 fourth quarter and year ended March 31, 2011.

Net sales for the fiscal 2011 fourth quarter increased 10.8 percent to $42.8 million from $38.6 million for the same period last year. Net income for the fiscal 2011 fourth quarter was $2.4 million, or $0.19 per diluted share, compared with $2.9 million, or $0.24 per diluted share, for the comparable period a year earlier.

Net income for the fourth quarter was impacted by costs related to the company's Fenco acquisition of approximately $1.0 million, or $0.05 per diluted share, including $879,000 of professional fees. Additionally, as a result of the decrease in the domestic effective tax rate, the company revalued the deferred tax assets to reflect the lower value of deductions taken for book purposes, but not yet allowed for tax purposes. The change in the deferred tax rate resulted in a reduction of the net deferred tax assets and increased the charge to income tax expense of $558,000, or $0.04 per diluted share. Net income before acquisition costs and the higher income tax expense for the fourth quarter was $0.28 per diluted share.

Gross profit for the fiscal 2011 fourth quarter was $14.0 million compared with $12.5 million for the same period a year ago. Gross profit as a percentage of net sales for the fiscal 2011 fourth quarter was 32.7 percent compared with 32.3 percent in the same quarter a year ago. 

Operating income for the fiscal 2011 fourth quarter increased 22.3 percent to $5.9 million from $4.8 million a year earlier.

Net sales for the full fiscal year increased 9.6 percent to $161.3 million from $147.2 million in fiscal 2010. Net income for fiscal 2011 increased 26.7 percent to $12.2 million, or $0.99 per diluted share, from $9.6 million, or $0.80 per diluted share, a year earlier.

Net income for the full year was impacted by costs related to the company's Fenco acquisition of approximately $1.0 million, or $0.05 per diluted share, including $879,000 of professional fees. Net income before acquisition costs was $1.04 per diluted share.

Gross profit for fiscal 2011 was $51.4 million compared with $41.3 million in fiscal 2010. Gross profit as a percentage of net sales for the same period was 31.9 percent compared with 28.1 percent a year earlier.

Operating income for the full fiscal year increased 38.7 percent to $25.4 million from $18.3 million in fiscal 2010. 

"The company's strong results for the year underscore the success of our offshore business model in rotating electrical. We look forward to applying this model to the multiple product lines we acquired from Fenco," said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts.

He noted the company expects to file an amended 8-K/A with pro-forma financial information for the combined companies by mid-July.

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 year 2011. 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). 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 Sunday, June 19, 2011 by calling (800) 642-1687 (domestic) or (706) 645-9291 (international) and using access code: 73977334.

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. Through its wholly owned subsidiary Fenco Automotive Products, the company also offers a broad line of under-the-car products – including brake, steering and clutch components. Motorcar Parts of America's 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, Malaysia, and administrative offices located in California, Tennessee, Mexico, Canada, 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 2011 and in its Forms 10-Q filed with the SEC  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 Statement of Income
         
  Three Months Ended Twelve Months Ended
  March 31,  March 31, 
  2011 2010 2011 2010
  (Unaudited)      
         
Net sales  $ 42,786,000  $ 38,616,000  $ 161,285,000  $ 147,225,000
Cost of goods sold  28,804,000  26,153,000  109,903,000  105,898,000
Gross profit  13,982,000  12,463,000  51,382,000  41,327,000
Operating expenses:        
General and administrative  5,054,000  5,614,000  17,033,000  15,389,000
Sales and marketing  1,798,000  1,664,000  6,537,000  6,019,000
Research and development  396,000  398,000  1,549,000  1,421,000
Acquisition costs  879,000  --   879,000  191,000
Total operating expenses  8,127,000  7,676,000  25,998,000  23,020,000
Operating income  5,855,000  4,787,000  25,384,000  18,307,000
Other expense (income):        
Gain on acquisition  --   --   --   (1,331,000)
Interest expense  1,199,000  964,000  5,595,000  4,710,000
Interest income  (144,000)  --   (240,000)  -- 
Income before income tax expense  4,800,000  3,823,000  20,029,000  14,928,000
Income tax expense  2,362,000  952,000  7,809,000  5,282,000
Net income  $ 2,438,000  $ 2,871,000  $ 12,220,000  $ 9,646,000
Basic net income per share  $ 0.20  $ 0.24  $ 1.01  $ 0.80
Diluted net income per share  $ 0.19  $ 0.24  $ 0.99  $ 0.80
Weighted average number of shares outstanding:        
Basic 12,054,254 12,023,688 12,042,428 11,988,692
Diluted 12,583,726 12,156,354 12,334,331 12,116,615
 
 
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
March 31,
  2011 2010
ASSETS    
Current assets:    
 Cash   $ 2,477,000  $ 1,210,000
 Short-term investments   304,000  451,000
 Accounts receivable — net  10,635,000  5,553,000
 Inventory— net   29,733,000  31,547,000
 Inventory unreturned  5,031,000  3,924,000
 Deferred income taxes  5,658,000  8,391,000
 Prepaid expenses and other current assets   6,299,000  2,735,000
 Total current assets  60,137,000  53,811,000
 Plant and equipment — net  11,663,000  12,693,000
 Long-term core inventory — net  80,558,000  67,957,000
 Long-term core inventory deposit  25,984,000  25,768,000
 Long-term deferred income taxes   1,346,000  951,000
 Long-term note receivable   4,863,000  --
 Intangible assets — net   5,530,000  6,304,000
 Other assets   1,784,000  1,549,000
 TOTAL ASSETS  $ 191,865,000  $ 169,033,000
LIABILITIES AND SHAREHOLDERS' EQUITY    
 Current liabilities:     
 Accounts payable  $ 38,973,000  $ 31,603,000
 Accrued liabilities  2,181,000  1,863,000
 Accrued salaries and wages  3,993,000  3,590,000
 Accrued workers' compensation claims  1,144,000  1,574,000
 Customer finished goods returns accrual  9,161,000  7,454,000
 Income tax payable  322,000  678,000
 Deferred income taxes   136,000  -- 
 Other current liabilities  460,000  697,000
 Current portion of term loan  2,000,000  2,000,000
 Current portion of capital lease obligations  372,000  953,000
 Total current liabilities   58,742,000  50,412,000
 Term loan, less current portion  5,500,000  7,500,000
 Deferred core revenue  8,729,000  6,061,000
 Other liabilities  1,255,000  995,000
 Capital lease obligations, less current portion  462,000  445,000
 Total liabilities  74,688,000  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; 12,078,271 and 12,026,021 shares issued; 12,063,871 and 12,026,021 outstanding at March 31, 2011 and 2010, respectively   121,000  120,000
Treasury stock, at cost, 14,400 shares of common stock at March 31, 2011 and none at March 31, 2010  (89,000)  -- 
Additional paid-in capital   93,140,000  92,792,000
Additional paid-in capital-warrant  1,879,000  1,879,000
Accumulated other comprehensive loss  (349,000)  (1,426,000)
 Retained earnings   22,475,000  10,255,000
 Total shareholders' equity   117,177,000  103,620,000
 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 191,865,000  $ 169,033,000
CONTACT: Gary S. Maier
         Maier & Company, Inc.
         (310) 442-9852

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