WESTCHESTER, Ill., June 29, 2015 (GLOBE NEWSWIRE) -- Fenix Parts, Inc. (Nasdaq:FENX), a leading recycler and reseller of original equipment manufacturer ("OEM") automotive products, today filed its first quarter 2015 10-Q for Fenix Parts, Inc. (the designated accounting acquirer) and for the Beagell Group and Standard (the designated accounting co-predecessors), as such companies were described in the prospectus dated May 14, 2015 for Fenix Parts' initial public offering (IPO).
As reported, the first quarter results are for a period in which Fenix Parts, Inc., the Beagell Group and Standard were private companies and operated on a standalone basis. As previously announced, financial results for the other founding companies (Eiss Brothers, Inc., GO Auto Recycling, Jerry Brown, Ltd., and Leesville Auto Wreckers, Inc.) are not included in these first quarter results but will be provided as part of the company's required Form 8-K/A to be filed in early August.
Fenix Parts, Inc. did not generate any revenues for the three months ended March 31, 2015 and incurred costs of $2.6 million during the quarter related to the audits of the founding companies and other pre-IPO costs. Fenix Parts, Inc., did not have any activity in the prior year period. Beagell Group revenues for the three months ended March 31, 2015 were $7.1 million compared with $7.4 million for the first quarter of 2014. The Beagell Group's net income for the first quarter of 2015 was $0.4 million compared with $0.8 million for the first quarter of 2014. The Standard companies' revenues for the three months ended March 31, 2015 were $5.6 million compared with $7.5 million for the first quarter of 2014. Standard's net income for the first quarter of 2015 was $0.2 million compared with $0.1 million for the first quarter of 2014.
As reported in the May 14, 2015 IPO prospectus, the Beagell Group and Standard each experienced lower revenues in the first quarter of 2015 due to lower scrap prices, which negatively impacted their self-service operations, and to Standard's decision to accumulate scrap with a view to selling it when scrap prices stabilized. Despite the negative effect of lower scrap prices and the deferral of scrap sales, Fenix Parts, Inc.'s pro forma revenues – which includes all of the founding companies – remained stable, at approximately $26 million for the first quarter of 2015.
Kent Robertson, CEO of Fenix Parts, said, "After completing the IPO and closing on the acquisition of our eight businesses on May 19, we have now begun to operate as a combined entity under the Fenix Parts umbrella. Following the combination, we met with our managers and employees at each facility to communicate the benefits of our business combination, including increased parts availability, a broader distribution network and our focus on customer service. Our leadership team is largely in place, including a dedicated team focused on expansion into new markets, and we are coordinating our vehicle procurement process within the group. We have brought together eight industry leaders to create a premier auto parts recycler and remain excited about the many opportunities that lie ahead for Fenix as we work to deliver long-term value for our customers and shareholders."
Initial Public Offering
On May 19, 2015, Fenix Parts, Inc. successfully closed its IPO of 12 million shares of common stock at a public offering price of $8.00 per share, followed by 1.8 million shares sold pursuant to the underwriters' exercise of their over-allotment option at the public offering price of $8.00 per share. Fenix Parts received approximately $101.6 million in IPO proceeds, net of underwriting discounts, commissions and other offering expenses.
Conference Call
As previously announced, company management will hold a conference call on Tuesday, June 30, 2015 at 8:30 a.m. Eastern Time to further discuss the first quarter 2015 results. The conference call can be directly accessed from the U.S. and Canada at (877) 312-8825, internationally at (330) 863-3331, or through the investor relations section of the company's website at www.fenixparts.com. For those unable to participate in the live conference call or webcast, a replay will be available beginning June 30, 2015 at 11:30 a.m. ET until July 25, 2015 at 11:59 p.m. ET. To access the replay, dial (855) 859-2056 or (404) 537-3406 and refer to the confirmation code 68738855. The replay will also be available on the company`s website.
About Fenix Parts
Fenix Parts is a leading recycler and reseller of original equipment manufacturer ("OEM") automotive products. The company's primary business is auto recycling, which is the recovery and resale of OEM parts, components and systems reclaimed from damaged, totaled or low value vehicles. Customers include collision repair shops (body shops), mechanical repair shops, auto dealerships and individual retail customers. Fenix provides its customers with high-quality recycled OEM products, extensive inventory and product availability, responsive customer service and fast delivery.
Fenix was founded in January 2014 to combine eight founding companies and create a network that offers sales, fulfillment and distribution in key regional markets in the United States and Canada. The founding companies have been in business an average of 25 years and operate from 13 locations.
Forward-Looking Statements
This press release contains forward-looking statements that are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected, expressed, or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by use of words such as "may, will, should, anticipates, believes, expects, plans, future, intends, could, estimate, predict, projects, targeting, potential or contingent," the negative of these terms or other similar expressions. Our actual results could differ materially from those discussed or implied herein.
We caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties disclosed in our SEC filings. These filings are available online at www.sec.gov, www.fenixparts.com or upon request from Fenix Parts.
We caution you that the important factors referenced above may not contain all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences we anticipate or affect us or our operations in the way we expect. The forward-looking statements included in this press release are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements.