Motorcar Parts of America, Inc. (NASDAQ:MPAA) Q2 2016 Earnings Conference Call - Final Transcript
Nov 09, 2015 • 09:30 am ET
Good day, ladies and gentlemen, and welcome to the Motorcar Parts of America Fiscal 2016 Second 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 instructions will follow at that time. [Operator Instructions]
I would now like to introduce your host for today's conference call, Mr. Gary Maier, you may begin.
Thank you, Kevin, and thanks everyone for joining us for Motorcar Parts of America's fiscal 2016 second quarter conference call. Before we begin and I turn the call over to Selwyn Joffe, Chairman, President and 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 conference call. Such forward-looking statements are 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. The 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 company's various filings with the Securities and Exchange Commission.
With that said, I'd now like to begin the call and turn the call over to Selwyn Joffe.
Thank, Gary. Good morning, everybody. I appreciate you joining us today. Results for the second quarter and half year of fiscal 2016 were very solid for us and we are well-positioned for continued growth in the second half. We're experiencing continued strength in all of our product lines, which consist of rotating electrical, wheel hubs and our emerging brake master cylinder product line. I should mention that we recently expanded our brake master cylinder product line with the introduction of remanufactured units in the second quarter. This will allow us to provide full line coverage. We continue to be excited about our business opportunities in all of our product lines. As we announced two weeks ago in an 8-K filing, we resolved pending and threatened litigation with M&T Bank, and the trustee and the bankruptcy case relating to former subsidiaries.
The agreement allows us to move forward and avoid the time expense and inconvenience of protracted litigation. We incurred a one-time $9.3 million expense, net of insurance recovery, for the company's litigation settlement in the June 2013 bankruptcy cases related to discontinued subsidiaries. And as a result, we reported a net loss of $1.4 million or $0.08