MWW Automotive Reports Financial Results For The First Fiscal Quarter 2013
This has been achieved while at the same time reducing our gross loss from operations by nearly 30% and only slightly increasing the net loss from operations, caused by the necessary expansion in expectation of higher production volume. We expect to significantly improve our performance in the third and fourth quarter 2013 and report positive cash flow from operating activities. While 2012 has been our year to assure the company's survival, the focus for 2013 will be on the aggressive expansion of our business model of diversification and on a more economical approach to financing the company's expansion in support of our share price."
REVENUES Net revenues were $193,974 for the three months ended December 31, 2012. Our revenues decreased by $29,615 from the three months ended December 31, 2011. This decrease is attributable to the fact that some of the new programs that had already been awarded still have been significantly delayed. At the same time our team was focused on the pre-production of a number of already awarded projects and aggressively pursuing additional business, with a focus on immediate production start.
GROSS LOSS For the three months ended December 31, 2012, MWW has significantly improved its Gross Loss, which was $26,249 (13.5) in the 1 st quarter of 2013, compared to a gross loss of $91,684 (41.05) for the three months ended December 31, 2012. This improvement is based on the fact that MWW sold a greater percentage of its higher margin products during the first quarter of 2013 than in the same period during 2012. The primary components of cost of sales are direct labor and cost of parts and materials. The cost of parts and materials has been consistent from year to year.
OPERATING EXPENSES Selling, general, and administrative expenses were $350,176 (180% of revenues) in 2012 compared to $253,026 (113% of revenues) during 2011. The increase in costs is attributable to additional production and management staffing added at Colortek, as we carefully ramp up towards future revenue. Management intends to keep costs comparatively low, so that increasing product volume and revenue will result in improving profit margins and eventually net profits. Significant components of operating expenses consist of professional fees, salaries, and impairment losses, some of them accrued or non-cash.Net Income – Earnings per ShareNet income available to common stockholders improved to a profit of $4,047,258, generated earnings per share of $0.02 in the first quarter of 2013 compared to a ($2,128,659) loss in the first quarter of 2012 an increase of $6,175,917. This increase was partially based on the change in the fair market value of the derivative liabilities. At the same time total liabilities decreased from $16,245,335 in 2012 to $11,883,752 in 2013 and generated earnings per share of $0.02 in Q1 of 2013 as opposed to a loss of $0.02 per share in Q1 of 2012. Please review the full report on the Company's web site in the investor relations section, or at the SEC website www.sec.gov. 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.comor 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.govunder "Search for Company Filings."
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