MWW Automotive Reports Financial Results for First Fiscal Quarter 2012 Reduces Operating Cost and Projects Increase in Revenues
HOWELL, Mich., Feb. 22, 2011 /PRNewswire/ -- MWW Automotive Group (OTCBB: MWWC), a global automotive firm providing design and engineering services and manufacturing of accessories to many of the world's leading automotive and industrial manufacturers, issued today its financial report for the First Fiscal Quarter 2012, ending on December 31, 2011. The full text of the Company's 10Q Report can be reviewed on the Company's web site at www.mwwautomotive.com, or at the SEC website www.sec.gov.
"As expected and already earlier indicated in our shareholder conference call on January 31, 2012, our first quarter revenues for 2012 do not reflect our recovery mode status yet," states Chuck Pinkerton, CEO of Marketing Worldwide Corp. "While we have made strong progress in securing significant new business with some of the largest automotive and industrial firms in the country, MWW's 1st quarter revenue is still lagging considerably behind the company's general development and its expectation for 2012. Nevertheless, we expect a strong recovery during 2012 and 2013. The low first quarter revenues have been caused mainly by the launch delay of several new large programs, especially the long expected industrial program.
"We finally have begun production with one of our new large automotive programs and are expecting to commence with production for our industrial project within the next four weeks. We expect these new programs to provide long-lasting and consistently increasing revenues for the months and years ahead. Consequently, and in combination with our radical cost down exercises, this will also improve our bottom line. Unfortunately, the complexity of our partners' engineering and pre-production process has taken longer than initially anticipated and distorted our 1st Quarter financial results. The entire MWW team is completely committed to making 2012 the turn-around year for MWW. We are confident that we will improve upon our 1st quarter performance significantly beginning in the quarters ahead and throughout 2012 and 2013."
Comparison of the three months revenues ended December 31, 2011 to the three months revenues ended at December 31, 2010.
Net revenues were approximately $224,000 for the three months ended December 31, 2011, a decrease of $370,920 from the three months ended December 31, 2010. This decrease is attributable to the fact that we elected to re-focus on our core business, while eliminating less profitable and more resource intense projects. The Company has now been quoting on only large and more profitable paint projects and has already begun production for some of the new programs for 2012 and 2013. These programs are expected to provide continued and significant revenue growth during 2012 and the years ahead and improve the Company's bottom line.
Gross (Loss) Profit
For the three months ended December 31, 2011, MWW's gross loss was $91,684 compared to gross profit of $144,024 for the three months ended December 31, 2010. The reason for this decrease was that MWW sold a greater percentage of its lower margin products in 2011 than in 2010. The actions taken during 2011, especially the further streamlining of our production facilities and the aggressive cost reduction exercises in all departments of the company, have been implemented to reverse this trend and return the company to profitability.
Selling, general, and administrative expenses were $253,026 in 2011 compared to $327,226 during 2010. Significant components of operating expenses consist of professional fees, salaries, and impairment losses. The decrease in SG&A is attributable to management's stringent efforts to reduce overhead costs and the aggressive cost down exercises in all areas of the company.
About MWW Automotive Group (MWW)
MWW's is headquartered in Howell, Michigan, with a "Class A" painting/assembly/logistics facility in Baroda, Michigan for the production of OE quality automotive and industrial products. The MWW Automotive Group (OTCQB: MWWC) delivers its in-house designed accessory products and Class A painting, assembly and logistics services directly to major global automobile manufacturers' Vehicle Processing Centers (VPC) and/or assembly lines in the United States, Canada and Europe. MWW's industrial products are delivered directly to the manufacturers for installation in their facilities. Noted for its adherence to the highest quality requirements and its advanced logistics capabilities, MWW products and services consistently meet and exceed customers' expectations and requirements. MWW provides substantial added value to the sale of vehicles and industrial products for leading international automobile and industrial manufacturers such as Toyota, BMW, Chevrolet, Hyundai, Kia Motors, GM, Ford, Deere and Whirlpool. For more information please visit www.mwwautomotive.com or e-mail email@example.com.
Safe Harbor Statement: Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings."
SOURCE MWW Automotive Group