LOS ANGELES – Motorcar Parts of America Inc. (MPA) has reported results for its fiscal 2014 first quarter, reflecting a one-time gain on the deconsolidation of assets and liabilities of the company’s previous undercar business.
Net sales for the fiscal 2014 first quarter increased 7.4 percent to $50.2 million from $46.8 million for the same period last year. Net income from continuing operations was $103,000, or 1 cent per diluted share, compared with net income from continuing operations of $2.4 million, or 17 cents per diluted share, a year ago. Net income from continuing operations in the current year was impacted by a mark-to-market non-cash loss of $2.3 million related to warrants and forward currency contracts, and approximately $2.4 million in expenses related to the company’s previous subsidiaries. Excluding certain costs and non-cash expenses noted in the Reconciliation of Non-GAAP Financial Measures tables below, adjusted net income was $3.2 million, or $0.22 per diluted share, compared with $2.0 million, or $0.14 per diluted share, for the same period a year earlier.
Net income for the quarter was $101 million, or $6.94 per diluted share, reflecting a one-time gain from deconsolidation of $100.9 million, compared with a net loss of $9.9 million, or 71 cents per basic share, a year earlier.
Gross profit for the first fiscal quarter was $16 million compared with $14.8 million a year earlier. Gross profit from continuing operations as a percentage of sales was approximately 32 percent for both periods.
"The automotive aftermarket continues to be robust, particularly for rotating electrical products and other non-discretionary parts," said Selwyn Joffe, MPA’s chairman, president and CEO. "Moving forward, we anticipate continued momentum in our base business and in our new wheel hub assembly business. We are off to an excellent start for our new fiscal year with all of our products. We expect strong growth supported by a cash position of $15.2 million and an available credit line of $18 million at June 30, 2013."
Joffe noted that the company expects to realize tax benefits of approximately $30 million as a result of the losses incurred through its previous subsidiary.
