LOS ANGELES – Motorcar Parts of America (MPA) has reported record results for its fiscal 2015 first quarter ended June 30, 2014 – reflecting continued growth of its rotating electrical and wheel hub business.
Net sales for the fiscal 2015 first quarter increased 25.3 percent to $63 million from $50.2 million for the same period a year earlier. The increase in net sales was due to growth in both rotating electrical products and the benefits of a full quarter of wheel hub sales, which commenced in late June 2013. Net income for the quarter was $3.9 million, or 25 cents per diluted share, compared with a net income of $101 million, or $6.91 per diluted share, a year ago, which reflects a gain on the deconsolidation of the company’s discontinued undercar business.
Excluding certain costs and non-cash expenses, adjusted net income for the fiscal 2015 first quarter increased 45.6 percent to $4.7 million, or 30 cents per diluted share, from $3.2 million, or 22 cents per diluted share, for the same period a year earlier – based on a 9 percent increase in the diluted weighted average number of shares outstanding.
Gross profit for the fiscal 2015 first quarter was $17.8 million compared with $16 million a year earlier. Gross profit as a percentage of sales was 28.3 percent compared with 31.9 percent a year earlier. Adjusted gross profit was $19.2 million compared with $16.4 million a year ago, representing a 17.1 percent increase. Adjusted gross profit as a percentage of sales for the first quarter was 30.2 percent compared with 32.1 percent a year earlier, primarily reflecting product mix.
“Fiscal 2015 is off to an excellent start, supported by strong organic growth in all product lines, an aging vehicle population and positive operating synergies. Our team’s ongoing focus on achieving the highest customer service levels continues to distinguish our organization. We look forward to solid momentum as the new fiscal year evolves – supported by strong organic growth in both the rotating electrical and wheel hub business, as well as contributions from the introduction of our most recent product line,” said Selwyn Joffe, chairman, president and CEO of Motorcar Parts of America.
Brake Master Cylinders
Subsequent to the end of the fiscal first quarter, Motorcar Parts of America introduced brake master cylinders as a new product line and began shipments.
“The brake master cylinder product line expansion follows the introduction last June of wheel hubs. Like rotating electrical and wheel hubs, brake master cylinders are non-discretionary with strong growth dynamics. We anticipate solid sales and profit contributions from this new product line,” said Joffe.
MPA estimates the market size for master cylinders to be approximately $500 million at the user level.
