CONTACT: At Fenix Parts: Scott Pettit Chief Financial Officer 708-407-7200 firstname.lastname@example.org Investor and Media Inquiries: Chris Kettmann 773-497-7575 email@example.com
WESTCHESTER, Ill., Oct. 13, 2016 (GLOBE NEWSWIRE) — Fenix Parts, Inc. (Nasdaq:FENX), a leading recycler and reseller of original equipment manufacturer (“OEM”) automotive products, today announced preliminary second quarter 2016 revenue, provided an update concerning the status of the second quarter review, and reported an inquiry into its accounting and public reporting by the Chicago Regional Office of the United States Securities and Exchange Commission (the “SEC”).
Preliminary Revenue Results for the Quarter Ended June 30, 2016
Consolidated net revenues of Fenix Parts are expected to be approximately $34 million for the second quarter of 2016. The Company will provide full second quarter results upon completion of the second quarter Form 10-Q.
Delayed Form 10-Q Filing
The Company has delayed filing its Quarterly Report on Form 10-Q for the second quarter of 2016 to complete quarterly review and first-time-through procedures, which are still ongoing. The delay has been, in large part, caused by the complexity of accounting for the Company’s multiple business combinations, the coordination of the transition of responsibilities between the Company’s prior and new independent registered public accounting firms, and additional procedures on purchase accounting and inventory following the Company’s recent receipt of a subpoena from the Chicago Regional Office of the SEC requiring the production of various documents. The SEC inquiry appears to be focused on the Company’s recent change in its independent registered public accounting firm, its previously announced business combinations and related goodwill impairment charge, the effectiveness of its internal control over financial reporting and its inventory valuation methodology. The Company’s receipt of a subpoena from the SEC does not mean that it has violated the securities laws, and management does not believe that the inquiry will have a material impact on the Company’s financial condition, results of operations or cash flow, but cannot predict the duration or outcome of the inquiry.