MWW Automotive Reports Second Fiscal Quarter 2013 Financial Results Revenue Increases For Second Consecutive Quarter
HOWELL, Mich., May 16, 2013 /PRNewswire/ -- MWW Automotive Group (OTCQB: MWWC); a global design, engineering and manufacturing firm serving some of the world's leading automotive and industrial manufacturers and design firms, announced today its financial results for the Second Quarter 2013, ending on March 31, 2013. Net revenues were $240,181 for the three months ended March 31, 2013 an increase of $65,623 or thirty seven percent (37%) from the three months ended March 31, 2012. Revenues have also increased on a six months comparison basis.
Chuck Pinkerton, states: "While our revenues have increased again as they have in our 1st Quarter, we are still not close to our production and revenue potential. Several of the projects that have been awarded to us during 2012 have commenced with production after the close of the 2nd quarter 2013 and will only begin to have a more substantial positive impact on our revenue, cash flow and bottom line in our 3rd and 4th quarter of this year (ending June 30 and September 31, 2013 respectively). We have now secured substantial new business as fixed orders for the months ahead and we will supply further details in a follow up press release."
Net revenues were $240,181 for the three months ended March 31, 2013. Our revenues increased by $65,623 or thirty seven percent (37%) from the three months ended March 31, 2012. This increase is attributable to the fact that some of the new programs that have been awarded during 2012, have finally commenced with production, although still with the lower production volume of a typical start up production. The Company is entering into higher volume production during this current quarter and is continuing to quote on numerous new paint projects. In the meanwhile the Company continues to commence with the production of additonal new programs for the 2013 and 2014 periods that are expected to provide continued revenue growth and a positive impact on our bottom line and cash flow.
GROSS PROFIT (LOSS)
For the three months ended March 31, 2013, MWW's gross profit was $35,980 (14.98%) compared to gross loss of $132,058 (75.65%) for the three months ended March 31, 2012. MWW sold a greater percentage of its higher margin products in 2013 than in 2012. Gross Profit has also increased on a six months comparison.
Selling, general, and administrative expenses were $351,778 in 2013 compared to $363,541 during 2012. The decrease in costs is attributable to streamlined staffing at the administration level and further improved cost controls, although production is continuing to increase. Management intends to keep costs low, so further increasing production volume and revenue will result in improving profit margins and eventually net profits.
OTHER INCOME (EXPENSES)
Financing expenses were $811,973 for the three months ended March 31, 2013 compared to $858,102 during same period last year. The major portion of these lower expenses were non-cash interest expense and amortization of debt discounts relating to our convertible notes of $736,633 for the three months ended March 31, 2013 compared to $789,367 for the three months ended March 31, 2012.
GAIN ON CHANGE IN FAIR VALUE OF DERIVATIVE LIABILITY.
For the three months ended March 31, 2013, we recorded a net gain of $2,589,995 in change in fair value of the derivative liability as compared to a gain of $2,225,672 for the same period the previous year. The changes in the market price of our common stock have affected the fair value of the derivative liability.
Please refer to our current filing with the SEC at www.sec.gov for more details.
About MWW Automotive Group (MWW)
The MWW Automotive Group's (OTCQB: MWWC) administrative offices are located in Howell, Michigan, with a 46,000 square foot Class A manufacturing and logistics facility in Baroda, Michigan for the production of high quality OE automotive and industrial products. MWW delivers its products and Class A painting, assembly and logistics services directly to major US and Foreign automobile manufacturers' Vehicle Processing Centers (VPC), leading edge show car and performance accessory design firms, and/or assembly lines in North America. MWW's industrial products are delivered directly to the industrial manufacturers for installation in their facilities. MWW provides substantial added value to the sale of vehicles and industrial products for leading international automobile and industrial manufacturers such as Toyota, Chevrolet, Hyundai, Kia Motors, MAZDA, GM, Ford, FIVE AXIS and their strategic partners ROUSH Performance and Polytec/FOHA. For more information visit www.mwwautomotive.com or e-mail firstname.lastname@example.org.
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) generate sufficient revenues to fund operations (ii) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (iii) build the management and human resources and infrastructure necessary to support the growth of its business; (iv) competitive factors and developments beyond the Company's control; and (v) 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