HOWELL, Mich., Feb. 19, 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 First Quarter 2013, ending on
December 31, 2012.
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"While we have been able to considerably improve our balance
sheet in specific sections and will continue to do so in the months
and years to come, we have not yet produced the revenues that
appropriately reflect the level of our turn around," states
Chuck Pinkerton of Marketing
Worldwide Corp. "Nevertheless, based on recent developments, the
Company's management and consulting teams believe that the Company
will report positive cash flow from operating activities by the end
of 2013. Achieving these goals is subject to the Company's ability
to appropriately finance the rapidly increasing order and resulting
production volume and resolve certain remaining issues as outlined
in our filings. We do believe that the prospects of the company
have improved significantly and it is now on a clear path of
recovery."
Chuck Pinkerton, continues:
"While our revenues are still in a partial pre-production-recovery
mode, as we have earlier announced, we expect to demonstrate
improving financial and operational performance beginning with our
2nd quarter 2013 results, which are due on May 15, 2013. Already in this first quarter
ending on December 31, 2012, we have
set the basis for improving performance by keeping our operating
expenses close to the same level as in the year before. At the same
time we have continued to secure new business, have been expanding
our production facilities, broadened production capabilities, and
disbursed significant resources for several awarded pre-production
projects in preparation for a significant increase in production
volume and revenues, beginning in the 2nd quarter of
2013.
Only twenty four months ago our company was dependent on mainly
one large client (Toyota), which had created an unsustainable
vulnerability for us, painfully demonstrated when we lost that
customer because of a general shift within the Toyota organization
and we lost the majority of our revenues over night. Based on this
experience, we are now spreading our risk over a number of large
customers. Most of the MWW extended active client roster programs
are now either in full production or an advanced pre-production
mode. This includes programs for large clients such as Ford,
Chevrolet, Hyundai, Subaru, Toyota (returning business), Nissan,
Scion, MAZDA and CNH to name a few.
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
1st 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 Share
Net 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
investorrelations@mwwautomotive.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) 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."
SOURCE MWW Automotive Group
