HOWELL, Mich., Aug. 20, 2012 /PRNewswire/ -- MWW Automotive
Group (OTCQB: MWWC), a global design, engineering, and
manufacturing firm serving some of the world's leading automotive
and industrial manufacturers, today issued its financial report for
the Third Fiscal Quarter 2012, ending on June 30, 2012. The full text of the Company's
10-Q Report can be reviewed on the Company's web site at
www.mwwautomotive.com in the investor relations section, or at the
SEC website www.sec.gov.
"As expected, our third quarter revenues for 2012 still do not
appropriately reflect our current recovery mode status," states
Michael Winzkowski, Chairman of Marketing Worldwide Corp. "As we
have mentioned in our last press release, our team, led by our CEO
Chuck Pinkerton, is meeting the
recent changes in MWW's market and client roster head-on.
Since the partial loss of our Toyota business, Chuck has made
significant progress in securing new business, streamlining and
expanding production, significantly reducing operating expenses
throughout the Company and we have commenced with the production of
several new automotive programs. Nevertheless, third quarter
performance did not met our expectation yet, and at the end of the
quarter we still had not reached the stage of revenue recovery that
we had anticipated. On a month to month comparison though, we have
seen good improvement of revenues in June and July over the two
months before. We have been awarded several new projects in
addition to our ongoing programs and believe that we now have a
firmer grip on our new projects, expected revenues and the time
lines involved. We expect our recovery and the associated financial
performance improvement to take hold during the latter part of 2012
and beginning of 2013, with a return to profitability at the end of
2013, assuming sufficient and timely funding of current operations
and start-up cost associated with newly awarded projects."
Chuck Pinkerton, CEO of MWW
continues: "We are now in full production on the Mazda MX5, Ford
Mustang and Ford F150 with revenues hitting in the first quarter of
2013 and are also in final pre-production for our industrial
program. Unfortunately, our automotive and industrial partners'
engineering and pre-production process and their commitment to
producing only the highest quality products has been more complex
and time consuming than initially anticipated by them.
Consequently, this has delayed the original launch dates of several
new automotive and industrial projects for MWW and distorted our
First and Second Quarter financial results drastically. Once all
awarded programs have commenced with production, we expect these
programs to provide consistently increasing revenues for the months
and years ahead. This should also allow us to avoid further
constraining debt financing and reduce share dilution going
forward. Consequently, and in combination with our radical cost
down exercises, we should not only improve revenues, but also
improve gross margins and return the Company to profitability
towards the end of 2013.
"The entire MWW team is absolutely committed to making the rest
of 2012 the beginning of the turn-around for MWW. We do expect that
we will improve upon our second and third quarter performance
beginning in the Fourth Quarter 2012 and the subsequent quarters
ahead and to return to profitability during 2013."
REVENUES
Net revenues were $175,871 for the
three months ended June 30, 2012. Our
revenues decreased by $273,364 from
the three months ended June 30, 2011.
This decrease is attributable to the fact that some of the new
programs that had already been awarded have been significantly
delayed. We are re-focusing on our core business, have
restructured certain divisions of the Company and accordingly had
lower production output during this transitional period. The
Company is now quoting again on numerous new paint projects and has
commenced production with new programs for the 2012 and 2013
periods that are expected to provide continued revenue growth.
GROSS LOSS
For the three months ended June 30,
2012, MWW's gross loss was $115,802 compared to gross profit of $78,766 for the three months ended June 30, 2011. MWW had significant
"start-up" costs for new projects that have not been offset by
revenues yet and did not recognize any profit from the
re-evaluation of derivatives compared to the same period the year
before. 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 $292,342 in 2012 compared to $359,580 during 2011. The decrease in costs is
attributable to management's stringent efforts to reduce overhead
costs throughout the Company. Management intends to keep costs low,
so 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.
Please review the full report on the Company's web site at
www.mwwautomotive.com in the investor relations section, or at the
SEC website www.sec.gov.
About MWW Automotive Group (MWW)
MWW is headquartered in Howell,
Michigan, with a "Class A" painting-assembly-logistics
facility in Baroda, Michigan for
the production of high quality OE automotive and industrial
products. The MWW Automotive Group (OTCQB: MWWC) delivers its
accessory products via its "Class A" painting, assembly and
logistics services directly to major global automobile
manufacturers' Vehicle Processing Centers (VPC), Tier-1 Partners
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
standards and its advanced logistics capabilities, MWW products and
services consistently meet and exceed customers' expectations and
requirements. MWW provides substantial added value services for
leading international automobile and industrial manufacturers such
as Toyota, BMW, Chevrolet, Hyundai, Kia Motors, GM, Ford, ROUSH
Performance, Deere and Whirlpool. For more information
please visit www.mwwautomotive.com or 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) 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