Fenix Parts Inc (OTCMKTS:FENX) has announced the financial; results for the first quarter of 2017. Fenix Parts is one of the leading reseller and recycler of original equipment manufacturer (“OEM”) automotive products.
The company’s Consolidated net revenues amounted to $34.1 million during the quarter as compared to $33.2 million that was reported in the fourth quarter of 2016. The company recorded $29.2 million in sales of recycled OEM products during the quarter, a slight improvement from the $29.1 million that was recorded in the fourth quarter of 2016. A total of $4.9 million was reported from the sale of other ancillary products including scrap metal. This is a slight improvement from the $4.1 million that the company recorded in the fourth quarter of 2016. The company generated a total of $4.7 million from its operations in Canada up from $3.5 million which was recorded in the fourth quarter of 2016.
During the second quarter of 2017, the company is projecting net revenue of around $32 million. The company encountered massive loss on April 6, 2017 after its facility Scarborough (Toronto), Ontario caught fire. No employee was injured despite the company losing everything in the building including accounting records and computers. Additionally, none of the company’s inventory vehicles was affected during the incident.
Losses incurred during the fire were covered in the property and business interruption insurance and the cover is subject to certain exclusions and limits. The management however estimates that the fire adversely affected the company’s revenue by around $2 million during the second quarter of 2017.
The company recorded $39.9 million in Operating Loss during the quarter and was mainly as a result of a goodwill impairment amounting to $37.1 million. The loss was also driven by high general and administrative expenses including the $2.7 million in professional fees. Net loss amounted to $39.4 million after a $1.1 million benefit for income taxes. Adjusted Operating Loss amounted to $0.8 million during the quarter after $39.1 million in net adjustments.
The company reported $1.3 million in depreciation and amortization expense during the quarter. This includes $0.2 million that was allocated to Cost of Goods Sold