LOS ANGELES – Motorcar Parts of America Inc. (MPA) has reported results for its fiscal 2013 fourth quarter and year ended March 31, 2013, which the company says reflect record sales for its rotating electrical business offset by the establishment of specific charge-off accruals related to its former undercar business segment.
Rotating electrical net sales for the fiscal 2013 fourth quarter increased 11.8 percent to $58 million from $51.9 million for the same period last year. Gross profit for the rotating electrical segment for the fourth quarter was $18.1 million compared with $16.8 million a year earlier. Gross profit as a percentage of sales for the rotating electrical segment was 31.2 percent compared with 32.5 percent last year.
The company reported a consolidated net loss for the fiscal 2013 fourth quarter of $73.7 million, or $5.09 per share, compared with a net loss of $12.9 million, or $1.03 per share, a year earlier. Consolidated results include specific charge-off accruals related to the company’s investment in its former undercar business segment, and the required impairment of all intangible assets on Fenco’s balance sheet as a result of its pending liquidation. (Click here to read more about the expected bankruptcy filing for Fenwick Automotive Products, as announced on June 10.)
On a non-GAAP adjusted basis, consolidated net loss was $2.1 million, or 14 cents per share compared with a net loss of $4 million, or 32 cents per share, a year ago.
Rotating electrical net sales for fiscal 2013 increased 18.2 percent to $213.2 million from $180.4 million for the prior fiscal year. Gross profit for the rotating electrical segment for fiscal 2013 was $69.3 million compared with $57.3 million a year earlier. Gross profit as a percentage of sales for the rotating electrical segment was 32.5 percent compared with 31.8 percent last year.
The company reported a consolidated net loss for fiscal 2013 of $91.5 million, or $6.39 per share, compared with a net loss of $48.5 million, or $3.90 per share, a year ago. Consolidated results include specific charge-off accruals related to the company’s investment in its former undercar business segment, and the required impairment of all intangible assets on Fenco’s balance sheet as a result of its pending liquidation. On a non-GAAP adjusted basis, consolidated net loss was $12.2 million, or 85 cents per share compared with a net loss of $10.4 million, or 84 cents per share for the same period a year earlier.
"While we had made significant progress in our turnaround efforts for Fenco, it became clear that the cost savings and operational efficiencies that we achieved were not sufficient to continue our investment under the existing economic model. However, our rotating electrical business is the cornerstone of our company and it is performing well. We expect continued growth, supported by strong liquidity with a cash position of $19 million and approximately $18 million available under the company’s revolving credit facility at fiscal year end. Our management team is resilient, our customers are supportive and we look forward to the opportunities ahead," said Selwyn Joffe, MPA’s chairman, president and CEO.
Joffe noted that the company expects to realize tax benefits of approximately $30 million as a result of the losses incurred through Fenco, which should further enhance Motorcar Parts of America’s liquidity. He added that during the fourth quarter the company repurchased an aggregate 135,327 shares and vested options at a weighted average price of $4.84, or a total of $654,675.
