MWW Automotive Reports Financial Results for Fiscal Year 2011
HOWELL, Mich., Jan. 18, 2012 /PRNewswire/ -- MWW Automotive Group (OTCQB: MWWC), a global automotive firm providing design and engineering services and manufacturing of accessories to many of the world's leading automotive and industrial manufacturers, issued today its financial report for the Fiscal Year 2011, ending on September 30, 2011. 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.
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"The last 12 months have been a crucial year in MWW's business history," states Chuck Pinkerton, CEO of MWW Automotive. "Like so many other companies, we had to overcome the negative impact of a world in turmoil, caused by the meltdown of the financial markets and subsequently the unprecedented turmoil in the automotive industry. While based on this impact, our revenues have decreased during 2011, this decrease is also a consequence of a very focused and committed restructuring of the company from the bottom up and top down and after addressing all issues that needed to be dealt with, we are confident that we are now returning to a solid path of recovery. We have reacted to market conditions and have reorganized the Company in a fashion that would not only make us survive difficult times, but also had us re-focus on the core strength of MWW.
"We have been rebuilding a company that can, based on the radically changing needs in then world markets, meet these needs in the area of smaller, but more frequent production runs, a core competency that we have been focusing on over the last years. This will allow us to compete strongly in a changing world market. We have been able to significantly reduce our overhead, while at the same time expanding our production capacity and secure a substantial amount of new business with new large customers in the automotive market as well as in the industrial machinery markets."
The Company has been quoting on a large number of new paint projects in the automotive and industrial industries and is currently working on new programs for the 2012 and 2013 year that are expected to provide anewed and continuing revenue growth. Several of the new quoted programs have already been awarded, production has commenced and revenue impact will be reflected in our 2nd and 3rd Quarter 2012 financial reports. Accordingly, we are considering our last fiscal year 2011 the starting point for MWW's development over the next two years, expecting strong financial growth and subsequently improving stock values, rewarding our early investors.
We will elaborate in more detail on this in a conference call towards the end of January beginning of February. During this call, we will provide a general outlook on our current standings and the expected business development over the next two years. We will also answer questions from participants during this call.
COMPARISON OF THE YEAR ENDED SEPTEMBER 30, 2011 TO THE YEAR ENDED SEPTEMBER 30, 2010
REVENUES
Net revenues were approximately $1.9 million for the year ended September 30, 2011. Our revenues decreased $2,116,102 from the year ended September 30, 2010. This decrease is attributable to the fact we have been restructuring our entire organization, product selection and re-focusing on our core business, which includes painting & assembly, logistics, seat heaters, spoilers and body-side moldings
OPERATING EXPENSES
in an effort to return the company to profitability, we have reduced operating expenses considerably without sacrificing production capacity. Selling, general, and administrative expenses were $1,712,760 in 2011 compared to $3,129,648 during 2010. The decrease in costs is attributable to management's stringent efforts to reduce overhead costs. Significant components of operating expenses consist of professional fees, salaries, and impairment losses.
LOSS FROM OPERATIONS
Based on the same cost down exercises and restructuring of significant processes in the company we have been able to reduce or loss from operations to $1,647,869 in 2011 compared with $2,447,582 in 2010. The company intends to continue this trend, which should result in improving bottom line with increasing revenues.
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 OE quality automotive and industrial products. The MWW Automotive Group (OTCQB: MWWC) delivers its in-house designed accessory products and Class A painting, assembly and logistics services directly to major global automobile manufacturers' Vehicle Processing Centers (VPC) 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 requirements and its advanced logistics capabilities, MWW products and services consistently meet and exceed customers' expectations and requirements. MWW provides substantial added value to the sale of vehicles and industrial products for leading international automobile and industrial manufacturers such as Toyota, BMW, Chevrolet, Hyundai, Kia Motors, GM, Ford, Deere and Whirlpool. For more information please visit www.mwwautomotive.com or e-mail [email protected].
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."
| MARKETING WORLDWIDE CORPORATION |
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2011 |
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2010 |
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| Revenues |
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$ |
1,908,249 |
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$ |
4,024,351 |
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| Cost of goods sold |
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1,843,359 |
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2,881,735 |
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| Gross profit |
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64,890 |
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1,142,616 |
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| Operating expenses: |
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| Selling, general and administrative expenses |
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1,712,759 |
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3,129,648 |
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| Impairment loss on property, plant and equipment |
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- |
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409,823 |
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| Impairment loss on customer list (intangible asset) |
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- |
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50,000 |
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| Loss of disposal of equipment |
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- |
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727 |
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| Total operating expenses |
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1,712,759 |
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3,590,198 |
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| Loss from operations |
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(1,647,869) |
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(2,447,582) |
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| Other Income (Expense) |
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| Gain on change in fair value of derivative liability |
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1,173,072 |
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784,445 |
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| Financing expenses |
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(1,770,169) |
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(367,760) |
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| Loss on settlement of debt |
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(58,411) |
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- |
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| Other (expense) income, net |
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32,760 |
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94,190 |
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| Loss from continuing operations |
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(2,270,617) |
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(1,936,707) |
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| Loss from discontinued operations |
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- |
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(405,018) |
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| Net Loss |
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(2,270,617) |
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(2,341,725) |
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| Profit (Loss) Income attributable to Non-controlling interest |
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3,428 |
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(451,998) |
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| Loss attributable to Company |
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(2,274,045) |
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(1,889,727) |
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| Preferred stock dividend |
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(315,000) |
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(315,000) |
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| NET LOSS AVAILABLE TO COMMON STOCKHOLDERS |
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$ |
(2,589,045) |
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$ |
(2,204,727) |
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| Loss per common share, basic and diluted |
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| Continuing operations |
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$ |
(0.05) |
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$ |
(0.09) |
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| Discontinued operations |
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- |
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(0.02) |
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| Totals |
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$ |
(0.05) |
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$ |
(0.11) |
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| Weighted average common stock outstanding |
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| Basic and diluted |
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46,510,615 |
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21,002,981 |
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| Comprehensive loss: |
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| Net Loss |
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$ |
(2,270,617) |
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$ |
(2,341,725) |
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| Foreign currency translation loss |
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- |
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(40,944) |
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| Comprehensive loss |
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$ |
(2,270,617) |
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$ |
(2,382,669) |
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| Comprehensive income (loss) attributable to non controlling interest |
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3,428 |
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(451,998) |
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| Comprehensive loss attributable to Marketing Worldwide Corporation |
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$ |
(2,274,044) |
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$ |
(1,930,671) |
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| See the accompanying notes to the consolidated financial statements |
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SOURCE MWW Automotive Group
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