Motorcar Parts of America (MPA) reported results for its fiscal 2016 first quarter – reflecting record sales and adjusted profitability for the first quarter, supported by new business and product-line expansion contributions.
Net sales for the fiscal 2016 first quarter increased 36.3 percent to $85.8 million from $63 million for the same period a year earlier. On an adjusted basis, net sales climbed 36.6 percent to $86.6 million from $63.4 million in the fiscal 2015 first quarter – excluding certain customer allowances related to new business. The company’s sales performance for the fiscal 2016 quarter reflects new rotating electrical business gains, as well as increased contributions from wheel hubs and the company’s emerging master cylinder business.
Net income for the quarter was $1.9 million, or 10 cents per diluted share, compared with net income of $3.9 million, or 25 cents per diluted share, a year ago – reflecting the impact of certain unusual items, as well as an 18.6 percent increase in the diluted weighted average number of shares outstanding in the fiscal 2016 period.
Adjusted net income for the fiscal 2016 first quarter increased 77 percent to $8.4 million, or 44 cents per diluted share, from $4.7 million, or 30 cents per diluted share, the same period a year earlier – excluding certain expenses.
Gross profit increased 45.9 percent to $26 million from $17.8 million a year earlier. Gross profit as a percentage of sales for the fiscal 2016 first quarter was 30.3 percent compared with 28.3 percent a year earlier – due primarily to product mix, overall lower per-unit costs related to improved purchasing, enhanced production and better overhead absorption. In addition, gross profit a year ago was impacted by certain start-up costs.
Adjusted gross profit was $26.8 million compared with $19.2 million a year ago, representing a 39.6 percent increase. Adjusted gross profit as a percentage of sales for the three months was 30.9 percent compared with 30.2 percent a year earlier.
“Results for the fiscal 2016 first quarter reflect sales gains across all product lines, and we are well-positioned for continued success – supported by an aging vehicle population, increased miles driven, positive operating synergies and product line expansion opportunities,” said Selwyn Joffe, chairman, president and CEO.
