Motorcar Parts of America Inc. (MPA) has reported results for its fiscal 2016 third quarter and nine months, reflecting record sales and profitability for the quarter, supported by strong growth across all product categories.
Net sales for the fiscal 2016 third quarter increased 11.9 percent to $94 million from $84 million for the same period a year earlier. The company stated that its sales performance for the fiscal 2016 third quarter reflected continued strength of its rotating electrical and wheel hub business, as well as increased contributions from the company’s emerging master cylinder product line. MPA’s sales and profit performance for the prior fiscal 2015 third quarter reflects the benefits of recognizing net core revenue of $12.6 million that was previously deferred
Net income for the fiscal 2016 third quarter was $7.7 million, or 41 cents per diluted share, compared with net income of $2.9 million, or 16 cents per diluted share, a year ago.
Adjusted net income for the fiscal 2016 third quarter increased 23.5 percent to $9.9 million, or 52 cents per diluted share, from $8 million, or 43 cents per diluted share, in the same period a year earlier.
Gross profit for the fiscal 2016 third quarter increased 18.3 percent to $28.9 million from $24.4 million a year earlier. Gross profit as a percentage of sales for the fiscal 2016 second quarter was 30.7 percent compared with 29.1 percent a year earlier.
Net income for the fiscal 2016 nine-month period was $8.3 million or 44 cents per diluted share, compared with net income of $8.4 million, or 49 cents per diluted share, a year ago. Results for the fiscal 2016 nine-month period reflect the impact of a one-time $9.3 million expense for the company’s litigation settlement, net of insurance recoveries, in the June 2013 bankruptcy cases relating to discontinued subsidiaries. This was partially offset by a $5.8 million gain in connection with a separate litigation settlement related to discontinued subsidiaries.
Adjusted net income for the fiscal 2016 nine-month period increased 31.2 percent to $30.1 million, or $1.59 per diluted share, from $22.9 million, or $1.33 per diluted share, in the same period a year earlier.
Gross profit for the fiscal 2016 nine-month period increased 26.5 percent to $76.7 million from $60.7 million a year ago. Gross profit as a percentage of sales for the same period was 28.3 percent compared with 27.9 percent a year earlier.
“Results for the fiscal 2016 third quarter reflect continued strength across all product lines – supported by an aging vehicle population, increased miles driven, positive operating synergies and product line expansion. As always, our growth and success are attributable to the dedication of our entire team and their daily commitment to excellence, customer service and the company,” said Selwyn Joffe, chairman, president and CEO of Motorcar Parts of America.
