OREANDA-NEWS. Motorcar Parts of America, Inc. (Nasdaq:MPAA) today reported results for its fiscal 2016 fourth quarter and year ended March 31, 2016 – reflecting record sales for a fourth quarter and year, supported by strong growth across all product categories.

Net sales for the fiscal 2016 fourth quarter increased to $97.4 million from $83.9 million for the same period a year earlier. The company’s sales performance for the fiscal 2016 fourth quarter reflects continued strength of its rotating electrical and wheel hub business, as well as increased contributions from the company’s emerging master cylinder product line.

All results labeled as adjusted in this press release are non-GAAP measures as discussed more fully below under the heading “Use of Non-GAAP Measures.”

Adjusted net sales for the fiscal fourth quarter increased to $100.9 million from $90.9 million a year earlier.

Net income for the fiscal 2016 fourth quarter was $2.3 million, or $0.12 per diluted share, compared with net income of $3.1 million, or $0.16 per diluted share, a year ago.

Adjusted net income for the fiscal 2016 fourth quarter was $9.5 million, or $0.50 per diluted share, compared with $9.9 million, or $0.53 per diluted share, in the same period a year earlier.

Gross profit for the fiscal 2016 fourth quarter increased to $24.2 million from $20.9 million a year earlier.  Gross profit as a percentage of sales for the fiscal 2016 fourth quarter was 24.8 percent compared with 24.9 percent a year earlier.

Adjusted gross profit increased to $29.8 million from $28.2 million a year ago.  Adjusted gross profit as a percentage of sales for the three months was 29.6 percent compared with 31.1 percent a year earlier, impacted by product mix and lower metal prices resulting in lower scrap revenue.

Net sales for fiscal 2016 increased to $369.0 million from $301.7 million for the same period a year earlier.  The same period a year earlier included the benefits of recognizing net core revenue of $12.6 million in the third quarter that was previously deferred.

Adjusted net sales for fiscal 2016 increased to $383.3 million from $320.7 million a year earlier.  

Net income for fiscal 2016 was $10.6 million, or $0.55 per diluted share, compared with net income of $11.5 million, or $0.65 per diluted share, a year ago.  

Adjusted net income for fiscal 2016 was $39.6 million, or $2.08 per diluted share, compared with $32.9 million, or $1.87 per diluted share, in the same period a year earlier.

Gross profit for fiscal 2016 increased to $100.9 million from $81.6 million a year ago. Gross profit as a percentage of sales for the same period was 27.4 percent compared with 27.0 percent a year earlier.

Adjusted gross profit increased to $117.7 million from $101.2 million last year.  Adjusted gross profit as a percentage of sales was 30.7 percent compared with 31.5 percent a year earlier, impacted by product mix and lower metal prices resulting in lower scrap revenue.

“Results for fiscal 2016 reflect continued strength across all product lines – supported by an aging vehicle population, increased miles driven and related factors, all of which continue to contribute to overall growth in the aftermarket industry,” said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America.

Joffe noted that the company achieved solid market share gains in rotating electrical for the year. “Equally important, we realized strong growth from our wheel hub and brake master cylinder product offerings which impacted product mix and therefore gross margins,” Joffe said.

He noted that results for the year reflect new investments for innovation, growth and acquisitions, as well as the company’s value-added customer service programs – including Motorcar Parts of America’s industry-leading customer service, training and quality assurance initiatives.

“These investments position the company for even further success and growth.  As always, we thank our entire team for their daily commitment to excellence, customer service and our company,” Joffe said.

About Motorcar Parts of America, Inc.

Motorcar Parts of America is a remanufacturer, manufacturer and distributor of automotive aftermarket parts -- including alternators, starters, wheel hub assembly products and brake master cylinders utilized in imported and domestic passenger vehicles, light trucks and heavy duty applications. Motorcar Parts of America’s products are sold to automotive retail outlets and the professional repair market throughout the United States and Canada, with facilities located in California, Mexico, Malaysia and China, and administrative offices located in California, Tennessee, Mexico, Singapore, Malaysia and Toronto. 

 

MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Statements of Income
 
    Three Months Ended   Years Ended
    March 31,    March 31, 
      2016       2015       2016       2015  
    (Unaudited)        
                 
Net sales   $ 97,443,000     $ 83,904,000     $ 368,970,000     $ 301,711,000  
Cost of goods sold     73,229,000       62,995,000       268,046,000       220,138,000  
Gross profit     24,214,000       20,909,000       100,924,000       81,573,000  
Operating expenses:                
General and administrative     11,284,000       10,031,000       49,665,000       37,863,000  
Sales and marketing     2,382,000       1,907,000       9,965,000       7,851,000  
Research and development     915,000       611,000       3,008,000       2,273,000  
Total operating expenses     14,581,000       12,549,000       62,638,000       47,987,000  
Operating income     9,633,000       8,360,000       38,286,000       33,586,000  
Interest expense, net     2,678,000       3,148,000       16,244,000       13,065,000  
Income before income tax expense     6,955,000       5,212,000       22,042,000       20,521,000  
Income tax expense     4,658,000       2,110,000       11,479,000       9,068,000  
                 
Net income   $ 2,297,000     $ 3,102,000     $ 10,563,000     $ 11,453,000  
Basic net income per share   $ 0.12     $ 0.17     $ 0.58     $ 0.68  
Diluted net income per share   $ 0.12     $ 0.16     $ 0.55     $ 0.65  
                                 
Weighted average number of shares outstanding:                
Basic     18,393,154       17,967,060       18,233,163       16,734,539  
Diluted     19,165,334       18,815,858       19,066,093       17,605,940  
 
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
March 31,
 
      2016       2015  
ASSETS        
Current assets:        
Cash and cash equivalents   $ 21,897,000     $ 61,230,000  
Short-term investments     1,813,000       699,000  
Accounts receivable — net     8,548,000       24,799,000  
Inventory— net     58,060,000       56,829,000  
Inventory unreturned     10,520,000       7,833,000  
Deferred income taxes     33,347,000       22,998,000  
Prepaid expenses and other current assets     5,900,000       7,407,000  
Total current assets     140,085,000       181,795,000  
Plant and equipment — net     16,099,000       12,535,000  
Long-term core inventory — net     241,100,000       188,950,000  
Long-term core inventory deposits     5,569,000       31,571,000  
Long-term deferred income taxes     236,000       261,000  
Goodwill     2,053,000       -  
Intangible assets — net     4,573,000       2,574,000  
Other assets     3,657,000       3,195,000  
TOTAL ASSETS   $ 413,372,000     $ 420,881,000  
LIABILITIES AND SHAREHOLDERS'  EQUITY        
Current liabilities:        
Accounts payable   $ 72,152,000     $ 61,893,000  
Accrued liabilities     9,101,000       10,096,000  
Customer finished goods returns accrual     26,376,000       19,678,000  
Accrued core payment     8,989,000       13,190,000  
Revolving loan     7,000,000       -  
Other current liabilities     4,698,000       2,471,000  
Current portion of term loan     3,067,000       7,733,000  
Total current liabilities     131,383,000       115,061,000  
Term loan, less current portion     19,980,000       71,489,000  
Long-term accrued core payment     17,550,000       23,880,000  
Long-term deferred income taxes     14,315,000       7,803,000  
Other liabilities     19,336,000       12,445,000  
Total liabilities     202,564,000       230,678,000  
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, 50,000,000 shares authorized; 18,531,751 and 17,974,598 shares issued and outstanding at March 31, 2016 and 2015, respectively     185,000       180,000  
Additional paid-in capital     203,650,000       191,279,000  
Retained earnings     11,825,000       1,262,000  
Accumulated other comprehensive loss     (4,852,000 )     (2,518,000 )
Total shareholders' equity     210,808,000       190,203,000  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   $ 413,372,000     $ 420,881,000