Motorcar Parts and Accessories, Inc. Reports Q1 Results
12 August 1997
Motorcar Parts and Accessories, Inc. Reports First Quarter Results; New Domestic Parts Business Proceeding on Track
TORRANCE, Calif., Aug. 12 -- Motorcar Parts & Accessories,
Inc. , today reported results for the first quarter ended
June 30, 1997.
For the first quarter, net sales increased 18.6% to $21.8 million, from
$18.4 million during the comparable period last year. Net income increased
12.9% to $1.17 million, or $0.23 per share, compared to net income of
$1.04 million, or $0.21 per share, during the same period last year.
Richard Marks, President and Chief Operating Officer of the Company, said,
"We are pleased with our results for the first quarter, which were in line
with our internal plan. Initial shipments for our new line of domestic
alternators and starters were on track. We also maintained our position in
the imported parts market, despite this being seasonally our smallest
quarter."
"Order levels in our imported parts business indicate that second quarter
performance should be strong. As well, second quarter should be the largest
selling season for our new domestic parts business. Both trends lead us to
maintain an optimistic outlook on the core of our business," Marks added.
Mr. Marks concluded, "As has been our stated objective, we are
aggressively pursuing new market segments which will allow us to further
increase our share of the remanufactured import parts market, and leverage our
existing capabilities in this core business to establish a solid position in
the domestic alternator and starter market."
Motorcar Parts and Accessories, Inc. is a leading remanufacturer and
distributor of replacement alternators and starters for both import and
domestic cars and light trucks. The Company's customers include many of the
country's leading automotive retail chain stores and warehouse distributors,
and as a result the Company's products are found in approximately 4,000 retail
outlets.
This press release contains certain forward-looking statements with
respect to the future performance of Motorcar Parts and Accessories, Inc. that
involve risks and uncertainties. Various factors could cause actual results
to differ materially from those projected in such statements. These factors
include, but are not limited to, the potential for changes in consumer
spending, consumer preferences and general economic conditions, increased
competition in the remanufacturing industry, unforeseen increases in operating
costs, and other factors discussed in Motorcar Parts and Accessories' filings
with the Securities and Exchange Commission.
MOTORCAR PARTS & ACCESSORIES, INC.
STATEMENT OF OPERATIONS
(Dollars in thousands except per share data)
Three Months Ended
June 30,
1997 1996
Net sales $ 21,784 $ 18,375
Operating expenses:
Cost of goods sold 17,504 14,713
Research and development 145 0
Selling expenses 621 540
General and administrative
expense 1,215 1,194
Total operating expenses 19,485 16,447
Operating income 2,299 1,928
Interest expense - net 396 211
Income before income taxes 1,903 1,717
Provision for income taxes 732 680
Net income $ 1,171 $ 1,037
Net income per common share $ 0.23 $ 0.21
Weighted average number
of shares outstanding 5,152 4,982
MOTORCAR PARTS & ACCESSORIES, INC.
BALANCE SHEETS
(Dollars in thousands)
June 30, 1997 March 31, 1997
ASSETS
Current assets
Cash and cash equivalents $ 3,084 $ 3,539
Short-term investments 92 0
Accounts receivable - net 22,985 22,328
Inventory 52,108 41,862
Prepaid expenses and
other current assets 700 593
Deferred income tax 142 142
Total current assets 79,111 68,464
Long-term investments 900 1,874
Plant and equipment - net 4,809 4,291
Other assets 223 881
Total assets $ 85,043 $ 75,510
LIABILITIES
Current liabilities:
Current portion of
capital lease obligation $ 668 $ 743
Accounts payable &
accrued expenses 15,348 13,777
Income taxes payable 1,766 2,005
Due to affiliate 142 139
Total current liabilities 17,924 16,664
Long - term debt 24,584 17,496
Other liabilities 736 570
Capitalized lease obligation
less current portion 211 343
Deferred income tax liability 329 329
Total liabilities 43,784 35,402
SHAREHOLDERS' EQUITY
Common stock 49 49
Additional paid in capital 28,953 28,973
Retained earnings 12,257 11,086
Total shareholders' equity 41,259 40,108
Total liabilities and
shareholders' equity $ 85,043 $ 75,510
SOURCE Motorcar Parts & Accessories, Inc.