Motorcar Parts of America, Inc. recently reported results for its fiscal 2020 second quarter ended Sept. 30, 2019 — reflecting strong profitability and record sales for the quarter.
Net sales for the fiscal 2020 second quarter increased 17.5 percent to $150.4 million from $127.9 million for the same period a year earlier, reflecting sales increases for both hard parts and diagnostic products.
Adjusted net sales for the fiscal 2020 second quarter increased 16.4 percent to $151.4 million from $130.2 million a year earlier.
“Our strong profitability and record sales for the quarter underscore the progress we are making in the execution of our strategic growth initiatives. We are on target to complete the majority of our expansion in Mexico and Malaysia by fiscal year end, which should further enhance our financial performance and strengthen our position within the non-discretionary hard parts aftermarket.
“Equally exciting, our emerging diagnostic and testing equipment business, which includes applications for rotating electrical, electric vehicles and aerospace, continues to gain traction,” said Selwyn Joffe, chairman, president and CEO.
He noted the company’s highly regarded customer service and expanding operating footprint position the company for growth and value creation.
Net income for the fiscal 2020 second quarter was $6.2 million, or $0.32 per diluted share, compared with net income of $3.5 million, or $0.18 per diluted share, a year ago.
Adjusted net income for the fiscal 2020 second quarter was $13 million, or $0.68 per diluted share, compared with $11.5 million, or $0.60 per diluted share, a year earlier.
Gross profit for the fiscal 2020 second quarter was $36.6 million compared with $25.7 million a year earlier. Gross profit as a percentage of net sales for the fiscal 2020 second quarter was 24.3 percent compared with 20.1 percent a year earlier.
Adjusted gross profit for the fiscal 2020 second quarter was $42.9 million compared with $36.0 million a year ago. Adjusted gross profit as a percentage of adjusted net sales for the three months was 28.3 percent compared with 27.6 percent a year earlier.
The results for the quarter and gross margin were primarily impacted by two items totaling $6.3 million.
• Non-cash expenses of $4.0 million, including a write-down of $2.9 million associated with the quarterly revaluation for cores on customers’ shelves, and $1.1 million of amortization related to the premium for core buy backs.
• Transition costs of $2.3 million associated with the move into the company’s new facilities in Mexico to support the growth in sales.
Six-Month Results
Net sales for the fiscal 2020 six-month period increased 18.2 percent to $259.5 million from $219.6 million a year earlier.
Adjusted net sales for the fiscal 2020 six-month period increased 16.1 percent to $260 million from $224 million last year.
Net income for the fiscal 2020 six-month period was $38,000, or $0.00 per share, compared with net loss of $2.0 million, or $0.10 loss per share, in fiscal 2019.
Adjusted net income for the fiscal 2020 six-month period was $14.7 million, or $0.76 per diluted share, compared with $14.6 million, or $0.75 per diluted share, in fiscal 2019.
Gross profit for the fiscal 2020 six-month period was $54.2 million compared with $42.1 million a year earlier. Gross profit as a percentage of net sales for the fiscal 2020 first half was 20.9 percent compared with 19.2 percent a year earlier.
Adjusted gross profit for the fiscal 2020 six-month period was $69.1 million compared with $58.9 million a year ago. Adjusted gross profit as a percentage of adjusted net sales for the six months was 26.6 percent compared with 26.3 percent a year earlier.
