Motorcar Parts of America Inc. (MPA) has reported results for its fiscal 2017 third quarter – reflecting record profitability on a reported and adjusted basis.
Net sales for the fiscal 2017 third quarter were $112.6 million compared with $94 million for the same period a year earlier.
The company’s sales performance for the fiscal 2017 third 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 in August. The increase in sales also benefitted from $9.3 million due to a change in estimate in the accrual for anticipated stock adjustment returns.
Adjusted net sales for the fiscal 2017 third quarter were $112.9 million compared with $94.0 million a year earlier. Net income for the fiscal 2017 third quarter was $11.1 million, or 57 cents per diluted share, compared with $7.7 million, or 41 cents per share, a year ago.
Adjusted net income for the fiscal 2017 third quarter was $11.7 million, or 60 cents per diluted share, compared with $9.9 million, or 52 cents per diluted share, in the same period a year earlier.
Gross profit for the fiscal 2017 third quarter was $32.4 million compared with $28.9 million a year earlier. Gross profit as a percentage of net sales for the fiscal 2017 third quarter was 28.7 percent compared with 30.7 percent a year earlier, impacted by volume and stock update discounts for rotating electrical products and customer allowances related to new business.
Adjusted gross profit for the fiscal 2017 third quarter was $33.9 million compared with $29.7 million a year ago. Adjusted gross profit as a percentage of adjusted net sales for the three months was 30.1 percent compared with 31.5 percent a year earlier. Net sales for the fiscal 2017 nine-month period were $306.8 million compared with $271.5 million a year earlier.
Adjusted net sales for the nine-month period were $319.1 million compared with $282.4 million last year. Net income for the nine-month period was $27.8 million, or $1.43 per diluted share, compared with $8.3 million, or 44 cents per diluted share, in fiscal 2016.
Adjusted net income for the fiscal 2017 nine-month period was $34.3 million, or $1.77 per diluted share, compared with $30.1 million, or $1.59 per diluted share, in fiscal 2016.
Gross profit for the fiscal 2017 nine-month period was $83.4 million compared with $76.7 million a year earlier. Gross profit as a percentage of net sales for the same period was 27.2 percent compared with 28.3 percent a year earlier, impacted by customer allowances and initial return accruals related to new business.
Adjusted gross profit for the fiscal 2017 nine-month period was $98.7 million compared with $87.8 million a year ago. Adjusted gross profit as a percentage of adjusted net sales for the nine months was 30.9 percent compared with 31.1 percent a year earlier.
“As we approach the end of fiscal 2017, we are well-positioned within a $116 billion aftermarket hard parts industry. We anticipate continued growth in all of our product lines, and we are encouraged by the additional opportunities we are seeing. Our adjusted double-digit sales growth over the past five years highlights the company’s success and we remain optimistic about the future,” said Selwyn Joffe, chairman, president and CEO of Motorcar Parts of America.
“The company is poised for further growth as we harness our distribution relationships and leverage our scale, global footprint and financial strength to deliver growth and profits to shareholders. Our positive outlook is supported by an aging vehicle population, increased miles driven and related factors, all of which should continue to contribute to overall growth in the aftermarket industry. As always, we thank our entire team for their day-in and day-out commitment to excellence and our company,” Joffe said.
