Fenix Parts Releases Third Quarter 2016 Results
Fenix Parts, Inc. announced third quarter 2016 results on March 28, 2017. The company reported consolidated net revenues of $32.5 million for third quarter of 2016, compared to $34.2 million in second quarter 2016 and $32.2 million on a combine pro forma basis in the third quarter of 2015.
Sales of recycled OEM products were $27.8 million for the third quarter of 2016, down from $28.8 million in the second quarter of 2016, and in-line with $27.8 million on a combined pro forma basis in the third quarter of 2015, including sales contributed by Ocean County, Butler and Tri-City (which the company acquired during the second half of 2015) during both comparative periods, the company reported.
Sales from other ancillary products, representing the sale of commodities including scrap metal, were down from the second quarter 2016 as well as sales from Canadian operations. Kent Robertson, CEO of Fenix Parts, said, “The company’s revenues in the third quarter of 2016 declined sequentially from company-record levels in the second quarter due to a reduction in average scrap metal prices and lower volume to our repair shop customers resulting from softness in insurance-related claims during the period. However, we are pleased that fourth quarter revenue has improved, driven by higher sales to repair shop customers.”
Fenix also released numbers on its reported operating loss, its default under the credit facility with BMO Harris Bank N.A. and its engagement of Stifel, Nicolaus & Co., Inc., to assist in helping the company improve liquidity and maximize shareholder value.
“While we continue to face challenges due to our strained liquidity position, high professional fees and the inability to borrow under our existing credit facility, we are pleased to have reached a forbearance agreement with our bank lender and are optimistic that we will reach a positive outcome following the strategic alternative evaluation process,” said Robertson. “Our team will remain focused on executing our business plan and meeting the needs of our customers.”
To view the entire release, go to www.fenixparts.com.