Motorcar Parts of America, Inc. today reported results for its fiscal 2013 first quarter ended June 30, 2012 – reflecting ongoing operating strength of its rotating electrical business and continued progress in the undercar product line transition with an anticipated completion by May 2013.
Net sales for the fiscal 2013 first quarter increased 26.3 percent to $89.0 million from $70.5 million for the same period last year. As anticipated, due to the operating losses of the company’s undercar product line segment as the transition and turnaround of Fenco continues, the company reported a net loss for the fiscal 2013 first quarter of $9.9 million, or $0.71 per share, compared with a net loss of $8.3 million, or $0.68 per share, for the comparable period a year earlier. Excluding certain undercar-related transition and non-cash expenses noted in the Reconciliation of Non-GAAP Financial Measures tables below, results for the fiscal 2013 first quarter on a consolidated basis would have been a net loss of $4.5 million, or $0.32 per share.
Reflecting the impact of higher interest expense for the fiscal 2013 first quarter, non-GAAP adjusted net income for the rotating electrical segment was $2.0 million, or $0.15 per diluted share, compared with $2.8 million, or $0.22 per diluted share, a year earlier. Operating income for the rotating electrical segment increased to $6.7 million for the fiscal 2013 first quarter compared with $4.8 million a year ago. On a non-GAAP adjusted basis, EBITDA for the company’s rotating electrical segment was $7.8 million, a record for a first quarter, compared with $6.5 million for the same period a year earlier.
Gross profit for the fiscal 2013 first quarter was $12.1 million compared with $7.0 million for the same period a year ago. Gross profit as a percentage of net sales for the fiscal 2013 first quarter was 13.6 percent compared with 10.0 percent in the same quarter a year ago.
Gross profit as a percentage of net sales for the rotating electrical business segment for the fiscal 2013 first quarter was 31.7 percent compared with 32.1 percent in fiscal 2012 first quarter. Gross profit as a percentage of sales for the undercar segment was -6.4 percent for the fiscal 2013 first quarter compared with -17.5 percent for the fiscal 2012 first quarter. Gross profit for the undercar segment was impacted by an inefficient operating structure, unprofitable product lines, inadequate legacy pricing and transition costs which are the focus of the transition plan discussed above.
“Notwithstanding Fenco’s (undercar segment) results for the fiscal 2013 first quarter, we have made significant progress subsequent to June, which continues to support our previous targeted EBITDA guidance of $15 million run rate starting in May 2013. It is important to note that the results for the June quarter provide a dated perspective with regard to the progress made and we are working diligently to become current with our financial reporting next month,” said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts.
He added that the company’s rotating electrical business continues to be robust and provides a proven template going forward for the undercar segment.