LOS ANGELES – Motorcar Parts of America (MPA) has reported results for its fiscal 2014 second quarter and six-month period – reflecting the first full quarter of contributions from the company’s new wheel hub product line.
Net sales for the fiscal 2014 second quarter increased 14.8 percent to $66.2 million from $57.7 million for the same period last year. Net income for the same period was $2.2 million, or 15 cents per diluted share, compared with a net loss of $8.9 million, or 62 cents per share, a year ago – reflecting the impact of the company’s discontinued subsidiaries.
Excluding certain costs and non-cash expenses, adjusted net income for the second fiscal quarter was $5.3 million, or 37 cents per diluted share, compared with $5.5 million, or 38 cents per diluted share, for the same period a year earlier.
Gross profit for the second fiscal quarter was $19.7 million compared with $20.1 million a year earlier. Adjusted for wheel hub start-up costs and fees related to discontinued subsidiaries, gross profit was $20.7 million compared with $20.1 million for the prior period. Gross profit as a percentage of sales was lower on a year-over-year comparison, due primarily to the addition of wheel hub sales in June 2013 and a lower than normal overall cost of manufacturing in the same quarter a year earlier.
Net sales for the six months increased 11.5 percent to $116.4 million from $104.5 million a year ago. Net income for the fiscal 2014 six-month period was $103.1 million, or $7.06 per diluted share, compared with a net loss of $18.8 million, or $1.32 per share, a year ago. Results for the 2014 first half reflect a one-time gain on the deconsolidation of assets and liabilities of the company’s discontinued subsidiaries realized in the first fiscal quarter of 2014.
Excluding certain costs and non-cash expenses, adjusted net income for the fiscal six-month period was $8.6 million, or 59 cents per diluted share, compared with $7.4 million, or 52 cents per diluted share, for the same period a year earlier.
"The automotive aftermarket industry remains strong, particularly for rotating electrical products and other non-discretionary parts," said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America. "For the second half of fiscal 2014, we anticipate continued momentum in our base business, enhanced by further growth of our wheel hub assembly business."
