Motorcar Parts of America has reported results for its fiscal 2016 second quarter – reflecting record sales and adjusted profitability, supported by strong growth in all product categories.
Net sales for the fiscal 2016 second quarter increased 29.4 percent to $91.7 million from $70.8 million for the same period a year earlier. Adjusted for certain customer allowances for new business, net sales climbed 25 percent to $101.7 million from $81.4 million in the fiscal 2015 second quarter. The company’s sales performance for the fiscal 2016 second quarter reflects continued strength of its rotating electrical and wheel hub business, as well as increased contributions from the company’s emerging master cylinder product line. The company recently introduced full-line master cylinder coverage, which includes remanufactured units.
The company reported a net loss for the fiscal second quarter of $1.4 million, or 8 cents per share, compared with net income of $1.5 million, or 9 cents per diluted share, a year ago – reflecting 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.
Gross profit for the fiscal 2016 second quarter increased 18.5 percent to $21.8 million from $18.4 million a year earlier. Gross profit as a percentage of sales for the fiscal 2016 second quarter was 23.8 percent compared with 26.0 percent a year earlier. Gross margin was impacted by product mix, as well as customer allowances related to the company’s new remanufactured brake master cylinder line and additional rotating electrical business.
Net sales for the fiscal 2016 six-month period increased 32.6 percent to $177.5 million from $133.8 million for the same period a year earlier. Adjusted for certain customer allowances for new business, net sales climbed 30.1 percent to $188.4 million from $144.8 million in the same six-month period a year earlier. The company’s sales performance for first half of fiscal 2016, as noted above for the quarter, reflects continued strength of its rotating electrical and wheel hub business, as well as increased contributions from the company’s emerging master cylinder product line.
Net income for the fiscal 2016 six-month period was $518,000 or 3 cents per diluted share, compared with net income of $5.4 million, or 33 cents per diluted share, a year ago – reflecting 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.
Gross profit for the fiscal 2016 six-month period increased 31.9 percent to $47.8 million from $36.2 million a year ago. Gross profit as a percentage of sales for the same period was 26.9 percent compared with 27.1 percent a year earlier. As noted above, gross margin was impacted by product mix, as well as customer allowances related to the company’s new remanufactured brake master cylinder line and additional rotating electrical business.
“Results for the fiscal 2016 second quarter reflect continued strength across all product lines which bodes well for our success in the second half of fiscal 2016 – supported by an aging vehicle population, increased miles driven, positive operating synergies and product line expansion opportunities. 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.
