Motorcar Parts & Accessories, Inc. Reports Third Quarter Results
4 February 1999
Motorcar Parts & Accessories, Inc. Reports Third Quarter Results
TORRANCE, Calif., Feb. 3 -- Motorcar Parts & Accessories,
Inc. , today reported results for the nine and three months
ended December 31, 1998.
For the nine months ended December 31, 1998, net sales increased 20.5% to
$97.5 million from $80.9 million during the comparable period last year. Net
income decreased 4.5% to $4.5 million, or $0.70 per share, as compared to
$4.7 million, or $0.87 per share, during the same period last year.
Net sales were relatively unchanged at $30.5 million during both the
quarter ended December 31, 1998 and the comparable quarter last year. Net
income decreased 44.7% to $1.0 million, or $0.15 per share, during the recent
quarter as compared to $1.7 million, or $0.29 per share, during the same
quarter last year.
The increased net sales over the nine-month period reflects the Company's
rapid growth and increased market share in the domestic vehicles business as
partially offset by a one-time re-calendarization of purchasing patterns by a
significant customer during the third quarter. This re-calendarization fully
offset such growth during the third quarter, resulting in the flat net sales
as compared to the third quarter of the prior year. 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.
Richard Marks, President and Chief Operating Officer, noted: "Although the
Company's financial results were adversely impacted by the re-calendarization,
there have been several very positive developments recently. The Company has
successfully completed a significant expansion and modernization of its
remanufacturing facility. Also, the recent exit of a major competitor in the
industry and anticipated greater volume for the Company indicates increased
net sales in the foreseeable future. We believe that the Company's strategic
plan over the last three years generally has been successfully implemented to
expand business into the CS alternator and other domestic vehicles markets, to
increase capacity and to attract additional volume in all lines for that
capacity. In light of recent developments and the success of our strategy, we
believe that we are well positioned to realize our potential."
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
December 31, March 31,
1998 1998
(Dollars in Thousands)
ASSETS
Current assets:
Cash and cash equivalents $3,210 $3,108
Accounts receivable - net 23,631 29,591
Inventory 71,968 54,736
Prepaid expenses and other
current assets 1,472 1,862
Total current assets 100,281 89,297
Plant and equipment --net 12,0527,141
Other assets 1,641 1,807
Total assets $113,974 $98,245
LIABILITIES
Current liabilities:
Current portion of capital
lease obligation $814 $395
Accounts payable & accrued
expenses 10,104 11,816
Income taxes payable 2,955 1,592
Deferred income tax
liability 211 161
Total current liabilities 14,084 13,964
Long-term debt 22,127 13,983
Other liabilities 1,359 1,163
Capitalized lease obligations
less current portion 3,020 602
Deferred income tax liability 506 406
Total liabilities 41,096 30,118
SHAREHOLDERS' EQUITY
Common stock 64 64
Additional paid-in capita l51,115 50,927
Unearned portion of
compensatory stock options 0 (48)
Accumulated foreign currency
translation adjustment (62) (57)
Retained earnings 21,761 17,241
Total shareholders' equity 72,878 68,127
Total liabilities and
shareholders' equity $113,974 $98,245
MOTORCAR PARTS & ACCESSORIES, INC.
STATEMENT OF OPERATIONS
Three Months
Ended Nine Months Ended
December 31, December 31,
1997 1998 1997 1998
(Dollars in thousands except per share data)
Net Sales $ 30,468 $ 30,545 $ 80,923 $ 97,522
Operating expenses:
Cost of goods sold 24,839 25,412 65,303 80,413
Research and development 161 210 428 715
Selling, general and
administrative 2,228 2,590 6,125 7,564
Acquisition costs 0 336 0 336
Total operating
expenses 27,228 28,548 71,856 89,028
Operating income 3,240 1,997 9,067 8,494
Interest expense -- net 412 419 1,304 1,121
Income before income
taxes 2,828 1,578 7,763 7,373
Provision for income
taxes 1,106 626 3,030 2,853
Net income $1,722 $952 $4,733 $4,520
Basic Net income per
share $0.30 $0.15 $0.90 $0.70
Weighted average number
of shares outstanding
- basic 5,650 6,433 5,266 6,431
Diluted income per share $0.29 $0.15 $0.87 $0.70
Weighted average number
of shares outstanding
- diluted 5,870 6,485 5,442 6,502