Motorcar Parts of America, Inc. (NASDAQ:MPAA) Q3 2015 Earnings Conference Call - Final Transcript

Feb 09, 2015 • 01:00 pm ET


Motorcar Parts of America, Inc. (NASDAQ:MPAA) Q3 2015 Earnings Conference Call - Final Transcript


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Good day ladies and gentlemen and welcome to the Motorcar Parts of America's Fiscal 2015 Third Quarter Results Conference Call. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instruction will follow at that time. [Operator Instructions]

Now, I turn the conference over to Gary Maier of Investor Relations. Sir you may begin.

Gary S. Maier

Thank you, Shannon. Thanks, everyone for joining us for today's fiscal third quarter call. Before we begin, I turn the call over to Selwyn Joffe, Chairman, President and the Chief Executive Officer and David Lee, the Company's Chief Financial Officer. I'd like to remind everyone of the Safe Harbor statement included in today's press release.

The private securities litigation Reform Act of 1995 provides a safe harbor for certain forward-looking statements, including statements made during the course of today's call. Such forward-looking statements Based on the Company's current expectations and beliefs concerning future developments, and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by Motorcar Parts of America. Actual results may differ from those projected in these forward-looking statements. These forward-looking statements involve significant risks and uncertainties, some of which are beyond the control of the Company, and are subject to change based upon various factors. The Company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. For a more detailed discussion of some of the ongoing risks and uncertainties of the Company's business, I refer you to the various filings with the Securities and Exchange Commission.

With that said, I'd like to begin the call and turn it over to Selwyn Joffe.

Selwyn Joffe

Okay, thanks, Gary. Good morning, good afternoon, everybody. I appreciate you joining us today. We're well positioned for solid growth and continued momentum in our base rotating electrical business as well as further expansion we'll have our emerging brake master cylinder business. This optimism is supported by the ramp up of new business that commenced in January. And additional opportunities including new business from organic growth, accretive acquisitions and new product line expansion, an area that is an ongoing focus.

Net sales for third quarter climbed 28.1% to $84 million from $65.6 million a year earlier. Our net income on an adjusted basis climbed 36.1% to $8 million, or $0.43 per diluted share from $5.9 million or $0.38 per diluted share in the same fiscal quarter a year ago, which is after a 22% increase in the diluted weighted average shares outstanding.

Current economic conditions along with the growth in aging of the car population continue to provide strong demand for our products, not to mention, the anticipated ongoing benefit from lower fuel prices on miles driven. As I have highlighted on previous calls, industry data shows average age of vehicles is 11.4 years. In addition, as a number of cars in the 12 plus category continues to grow