Motorcar Parts of America reported results for its fiscal 2016 third quarter and nine months with reflecting record sales and profitability.
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Net sales for the fiscal 2016 third quarter increased 11.9 percent to $94 million from $84 million for the same period a year earlier.
The company's sales performance for the fiscal 2016 third quarter reflects continued strength of its rotating electrical and wheel hub business, as well as increased contributions from the company's emerging master cylinder product line.
The company's sales and profit performance for the prior fiscal 2015 third quarter reflects the benefits of recognizing net core revenue of $12.6 million that was previously deferred.
Net income for the fiscal 2016 third quarter was $7.7 million, or $0.41 per diluted share, compared with net income of $2.9 million, or $0.16 per diluted share, a year ago.
Adjusted net income for the fiscal 2016 third quarter increased 23.5 percent to $9.9 million, or $0.52 per diluted share, from $8.0 million, or $0.43 per diluted share, in the same period a year earlier - as noted in the Reconciliation of Non-GAAP Financial Measures tables below.
Gross profit for the fiscal 2016 third quarter increased 18.3 percent to $28.9 million from $24.4 million a year earlier. Gross profit as a percentage of sales for the fiscal 2016 second quarter was 30.7 percent compared with 29.1 percent a year earlier.
Gross margin benefited from better overhead absorption, including favorable purchasing and production metrics.
Adjusted gross profit was $29.7 million compared with $25.3 million a year ago. Adjusted gross profit as a percentage of sales for the three months was 31.5 percent compared with 29.7 percent a year earlier.
Net sales for the fiscal 2016 nine-month period increased 24.7 percent to $271.5 million from $217.8 million for the same period a year earlier. Adjusted for certain customer allowances for new business, net sales were $282.4 million compared with $229.8 million in the same nine-month period a year earlier.
As noted above, the company's sales and profit performance for the prior year period reflects the benefits of recognizing net core revenue of $12.6 million that was previously deferred.
Net income for the fiscal 2016 nine-month period was $8.3 million or $0.44 per diluted share, compared with net income of $8.4 million, or $0.49 per diluted share, a year ago.
Results for the fiscal 2016 nine-month period reflect the impact of a one-time $9.3 million expense for the company's litigation settlement, net of insurance recoveries, in the June 2013 bankruptcy cases relating to discontinued subsidiaries, which was partially offset by a $5.8 million gain in connection with a separate litigation settlement related to discontinued subsidiaries.
Adjusted net income for the fiscal 2016 nine-month period increased 31.2 percent to $30.1 million, or $1.59 per diluted share, from $22.9 million, or $1.33 per diluted share, in the same period a year earlier - as noted in the Reconciliation of Non-GAAP Financial Measures tables below.
Gross profit for the fiscal 2016 nine-month period increased 26.5 percent to $76.7 million from $60.7 million a year ago. Gross profit as a percentage of sales for the same period was 28.3 percent compared with 27.9 percent a year earlier.
Adjusted gross profit was $87.8 million compared with $72.9 million last year. Adjusted gross profit as a percentage of sales for the nine months was 31.1 percent compared with 31.7 percent a year earlier. ■