LOS ANGELES – Motorcar Parts of America (MPA) has reported results for its fiscal 2012 second quarter and six months ended Sept. 30, 2011, reflecting record quarterly consolidated sales growth of 163 percent and record sales in both the company’s rotating electrical segment and its under-the-car product line segment. The company also reported solid progress in its transition strategy for the under-the-car product line segment.
Net sales for the fiscal 2012 second quarter climbed to $107.6 million from $41 million a year earlier. The company reported a net loss of $5.6 million, or 45 cents per share, compared with net income of $3.5 million, or 29 cents per diluted share, for the comparable quarter a year earlier due, in part, to the operations of Fenco combined with certain related costs for its under-the-car product line as the transition strategy progresses. Excluding the under-the-car product line segment operating results and certain other Fenco-related expenses, earnings for the rotating electrical segment would have been $4 million, or 32 cents per diluted share. On a consolidated basis, net income before certain Fenco-related transition costs and non-cash foreign exchange contract charges totaling $6.1 million would have been approximately $500,000, or 4 cents per diluted share.
Net sales for the six months increased 131 percent to $178.1 million from $77.2 million a year ago. For the six-month period, the company reported a net loss of $11.9 million, or 96 cents per share, compared with net income of $6 million, or 49 cents per diluted share, a year earlier. Excluding the under-the-car product line segment operating results and certain other Fenco-related expenses, earnings for the rotating electrical segment for the six months would have been $6.8 million, or 54 cents per diluted share. On a consolidated basis, net income before certain Fenco-related transition costs and non-cash foreign exchange contract charges totaling $14.7 million would have been $2.8 million, or 22 cents per diluted share.
Gross profit for the fiscal 2012 second quarter was $15.3 million compared with $12.7 million for the same period a year ago. Gross profit for the company’s rotating electrical segment as a percentage of net sales for the fiscal 2012 second quarter was 32.4 percent compared with 30.9 percent in the same quarter a year ago, reflecting lower per unit manufacturing costs.
Gross profit for the fiscal 2012 six-month period was $24.6 million compared with $24.2 million for the same period a year ago. Gross profit for the company’s rotating electrical segment as a percentage of net sales for the fiscal 2012 six months was 32.2 percent compared with 31.4 percent in the same period a year ago, reflecting lower per unit manufacturing costs.
EBITDA for the fiscal 2012 second quarter was approximately $9.3 million, adjusted for Fenco-related transition costs and non-cash foreign exchange contract charges, consisting of $8.8 million for the rotating electrical segment and approximately $500,000 for the under-the-car segment.
EBITDA for the fiscal 2012 six-month period was approximately $18.0 million, adjusted for Fenco-related transition costs and non-cash foreign exchange contract charges, consisting of $15.4 million for the rotating electrical segment for the six-month period and $2.6 million for the under-the-car segment for the period from May 7 through September 30, 2011.
"Results for the first half of fiscal 2012 and expectations for the full year reflect continued strength in the company’s rotating electrical product segment. Our transition initiatives related to our Fenco acquisition are progressing and we continue to recognize significant opportunities for margin improvement. All of our products are non-discretionary and we expect demand to continue to grow and profitability to improve," said Selwyn Joffe, chairman, president and CEO of Motorcar Parts.
The company is targeting at least a $20 million EBITDA run rate from the Fenco operation beginning on the second anniversary of the acquisition. Among other initiatives, the company has made significant progress in implementing its transition strategy by among other things enhancing quality control systems, improving customer service levels, eliminating unprofitable product lines and reducing its warehousing costs. Subsequent to the end of the second fiscal quarter, the company closed its Fenco facility in New Hampshire.
