MWW Automotive Reports Financial Results For Fiscal Year 2010
HOWELL, Mich., Jan. 19, 2011 /PRNewswire/ -- MWW Automotive Group (OTC Bulletin Board: MWWC), a global automotive firm providing design and engineering services and manufacturing of accessories to many of the world's leading automotive manufacturers, reported today its audited financial results for the fiscal year ended September 30, 2010. The full text of the Company's audited Annual 10K Report can be reviewed on the Company's web site at www.mwwautomotive.com or at the SEC website www.sec.gov.
Fiscal 2010 Financial Highlights
Net revenues were approximately $4.0 million for the year ended September 30, 2010. Our revenues increased approximately $300,000, or 8% from the year ended September 30, 2009. This increase is attributable to the fact that we are focusing on our core business, which includes the design and manufacturing of spoilers, color-matched body-side moldings, seat heaters, Class A painting and assembly. The company is quoting on numerous new paint projects and working on new Toyota programs for the 2011 and 2012 programs that are expected to provide continued revenue growth.Gross profit increased Management improved MWW's gross profit margin as a percentage of revenues by 10.91% compared to the prior year. For the fiscal year ended September 30, 2010, MWW's gross profit was $1,142,616 (28.39%) compared to $ 1,030,180 (27.71%) for the fiscal year ended September 30, 2009. MWW sold a greater percentage of its higher margin products in 2010 than in 2009. Furthermore, MWW's successful efforts to reduce manufacturing costs contributed to higher margins. The Company has been successful in reducing head count, while at the same time driving production output, leading to higher gross profit and aiming to further improve the financial performance of the company. Operating expenses decreased Selling, general, and administrative expenses were $3,129,648 (77.8% of revenues) in FY10 compared to $3,007,767 (80.92 % of revenues) during 2009. In 2010, management's stringent efforts to reduce overhead costs resulted in a decrease in direct labor costs by 40% and occupancy costs by 50% compared to the same items in 2009. Net Loss Net loss has been decreased by $598,195 or 20% from $2,939,920 to $2,341,725. Jim Davis, CFO of MWW Automotive Group, said, "We are very pleased to announce these financial and operational improvements to our shareholders. MWW has demonstrated its ability to succeed in a volatile U.S. automotive market. Government incentives, which created a short term, exceptional increase in sales during August 2009, led to a downturn in sales in September and October. Despite these conditions, combined with the seasonally lower sales volume in November and December, MWW's net revenues increased in the fiscal year ended September 30, 2010. We are pleased to report that we have been on an increasing upward trend that is expected to improve further during 2011. As part of the continued restructuring of the Company, the Board welcomed a seasoned industry executive as our new Chief Executive Officer, Charles Pinkerton, to further accelerate our turnaround efforts. Under his leadership, the Company has increased new revenue opportunities ten-fold. Pinkerton explained, "As we have experienced over the last year, the large automated production facilities cannot economically serve the smaller volume, but more frequent production runs, of the major automotive manufacturers. To capitalize on this market trend, we have focused on our core business and scalable production capacity, including our Class A painting facility Colortek and have entered into crucial strategic alliances with several large Tier1 manufacturers. We are now quoting on a large number of new paint projects and working on new Toyota programs for the 2011 and 2012 programs that are expected to provide continued revenue growth.
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