Motorcar Parts Of America Turns To Profit In Q4

(RTTNews) - Auto parts maker Motorcar Parts of America, Inc. (MPAA) on Monday reported a turnaround to profit in the fourth quarter on strong revenue growth. In addition, the prior-year quarter's results were negatively impacted by the company's former discontinued undercar business.

The Torrance, California-based company's net income for the fourth quarter was $3.07 million or $0.19 per share, compared to net loss of $73.65 million or $5.08 per share in the year-ago period. The prior-year quarter's results includes loss from discontinued operations of $5.35 per share.

Excluding items, adjusted net income for the quarter was $6.78 million or $0.43 per share, compared to $3.64 million or $0.25 per share in the prior-year period. On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.39 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 32 percent to $76.68 million from $58.04 million in the year-ago period. Analysts had a consensus revenue estimate of $69.75 million for the quarter.

The results for the latest quarter reflect continued growth of the company's rotating electrical business and the third full quarter of contributions from its wheel hub product line.

Gross profit as a percentage of sales for the quarter was 31.2 percent, the same as in the year-ago period.

For fiscal 2014, Motorcar Parts' net income was $107.36 million or $7.01 per share, compared to net loss of $91.51 million or $6.36 per share in the previous year.

Adjusted net income for the year was $21.26 million or $1.39 per share, compared to adjusted net income of $13.75 million or $0.96 per share last year.

Net sales for the year grew 21.4 percent to $258.67 million from $213.15 million in the prior year.

Street expected the company to earn $1.37 per share for the year on revenues of $253.15 million.

Looking ahead, Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America said, "We anticipate our solid growth will continue on a year-over-year basis, supported by an aging vehicle population, new product introductions and further opportunities for manufacturing and distribution leverage."

MPAA is trading at $24.32, up $0.49 or 2.06 percent on a volume of 220,484 shares.