Motorcar Parts & Accessories, Inc. Reports Q2 Results
10 November 1998
Motorcar Parts & Accessories, Inc. Reports Second Quarter Results
TORRANCE, Calif., Nov. 10 -- Motorcar Parts & Accessories,
Inc. , today reported results for the three and six months ended
September 30, 1998.
For the six months ended September 30, 1998, net sales increased 32.7% to
$67.0 million from $50.5 million during the comparable period last year. Net
income increased 18.5% to $3.6 million, or $0.54 per share, over $3.0 million,
or $0.58 per share, during the same period last year.
For the three months ended September 30, 1998, net sales increased 25.4%
to $36.0 million from $28.7 million during the comparable period last year.
Net income increased 5.9% to $1.9 million or $0.30 per share, over
$1.8 million, or $0.35 per share, during the same period last year.
Richard Marks, President and Chief Operating Officer, noted: "The increase
in net sales in the recent periods is a function of the rapid growth and
increased market share in the Company's domestic vehicles business, even
though that business represents lower margins as compared with the Company's
traditional imported vehicles business. The decrease in earnings per share
over the periods reflects the increased number of outstanding shares that
resulted from the Company's underwritten public offering of common stock in
November 1997."
Motorcar Parts & Accessories, Inc. is a leading remanufacturer and
distributor of replacement alternators and starters for both imported and
domestic cars and light trucks.
MOTORCAR PARTS & ACCESSORIES, INC.
BALANCE SHEETS
September 30, March 31,
1998 1998
(Dollars in Thousands)
ASSETS
Current assets:
Cash and cash equivalents $3,117 $3,108
Accounts receivable - net 25,474 29,591
Inventory 65,979 54,736
Prepaid expenses and
other current assets 2,141 1,862
Total current assets 96,711 89,297
Plant and equipment -- net 9,568 7,141
Other assets 1,760 1,807
Total assets $108,039 $98,245
LIABILITIES
Current liabilities:
Current portion of
capital lease obligation $523 $395
Accounts payable &
accrued expenses 10,960 11,816
Income taxes payable 2,332 1,592
Current portion
of credit line 211 0
Deferred income
tax liability 0 161
Total current liabilities 14,026 13,964
Long-term debt 18,792 13,983
Other liabilities 1,302 1,163
Capitalized lease obligations
less current portion 1,634 602
Deferred income tax liability 506 406
Total liabilities 36,260 30,118
SHAREHOLDERS' EQUITY
Common stock 64 64
Additional paid-in capital 50,968 50,927
Unearned portion of
compensatory stock options 0 (48)
Accumulated foreign currency
translation adjustment (62) (57)
Retained earnings 20,809 17,241
Total shareholders' equity 71,779 68,127
Total liabilities
and shareholders' equity $108,039 $98,245
MOTORCAR PARTS & ACCESSORIES, INC.
STATEMENT OF OPERATIONS
Three Months Ended Six Months Ended
September 30, September 30,
1997 1998 1997 1998
(Dollars in thousands except per share data)
Net Sales $28,671 $35,955 $50,455 $66,977
Operating expenses:
Cost of goods sold 22,960 29,639 40,464 55,001
Research and development 122 248 267 505
Selling, general
and administrative 2,061 2,554 3,897 4,974
Total operating
expenses 25,143 32,441 44,628 60,480
Operating income 3,528 3,514 5,827 6,497
Interest expense -- net 496 379 892 702
Income before
income taxes 3,032 3,135 4,935 5,795
Provision for
income taxes 1,192 1,186 1,924 2,227
Net income $1,840 $1,949 $3,011 $3,568
Basic Net income
per share $0.36 $0.30 $0.60 $0.55
Weighted average
number of shares
outstanding - basic 5,065 6,433 5,028 6,431
Diluted income per share $0.35 $0.30 $0.58 $0.54
Weighted average
number of shares
outstanding - diluted 5,305 6,523 5,224 6,551