Motorcar Parts of America (MPA) has reported record sales for its fiscal 2018 first quarter on a reported and adjusted basis.
Net sales for the fiscal 2018 first quarter increased 11.3 percent to $95.1 million from $85.4 million for the same period a year earlier. The company’s sales performance for the fiscal 2018 first quarter reflects continued strength of its rotating electrical business, as well as contributions from its other product lines – including the company’s emerging brake power boosters, which began shipping last August.
Adjusted net sales for the fiscal 2018 first quarter increased 1.3 percent to $95.1 million from $93.8 million a year earlier.
Net income for the fiscal 2018 first quarter was $7.6 million, or 39 cents per diluted share, compared with $7.5 million, or 39 cents per share, a year ago.
Adjusted net income for the fiscal 2018 first quarter was $7.3 million, or 38 cents per diluted share, compared with $10.1 million, or 52 cents per diluted share, in the same period a year earlier.
Gross profit for the fiscal 2018 first quarter was $25.8 million compared with $20.4 million a year earlier. Gross profit as a percentage of net sales for the fiscal 2018 first quarter was 27.2 percent compared with 23.9 percent a year earlier. The gross profit as a percentage of net sales for the year ago period was impacted by customer allowances and return accruals related to new business.
Adjusted gross profit for the fiscal 2018 first quarter was $27.2 million compared with $30.3 million a year ago. Adjusted gross profit as a percentage of adjusted net sales for the three months was 28.6 percent compared with 32.3 percent a year earlier. The current quarter adjusted gross profit as a percentage of net sales was impacted by higher returns.
“We begin our new fiscal year well-positioned within a $125 billon aftermarket hard parts industry, with a strong focus on organic growth, product line expansion and complementary acquisition opportunities,” said Selwyn Joffe, chairman, president and CEO of Motorcar Parts of America.
“Despite some industry-wide softness in the first quarter due to various factors, including a mild winter as has been widely discussed by industry leaders, we achieved record sales for the quarter on a reported and adjusted basis. The outlook for non-discretionary automotive parts is strong, and we remain encouraged by the numerous opportunities for growth as we harness our distribution relationships, leverage our scale, global footprint and financial strength to deliver growth and profits to shareholders. We anticipate increased sales volume as demand and order timing re-align to support the favorable industry dynamics. As always, we thank our entire team for their day-in and day-out commitment to excellence and our company,” said Joffe.
As previously announced, Motorcar Parts of America last month acquired D&V Electronics, an Ontario, Canada-based company focused on designing and manufacturing leading-edge tester systems utilized for a variety of applications – including: alternators, starters, electric motors, inverters and belt starter generators for both the OE and aftermarket.