EX-99.1 2 v56911exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
     
(MAIER & COMPANY)
  NEWS RELEASE
     
CONTACT:
  Gary S. Maier
 
  Maier & Company, Inc.
 
  (310) 442-9852
MOTORCAR PARTS OF AMERICA REPORTS STRONG FISCAL 2011
FIRST QUARTER RESULTS
—Net Income More Than Doubles; Sales Climb —
     LOS ANGELES, CA — August 9, 2010 — Motorcar Parts of America, Inc.
(NasdaqGM: MPAA) today reported strong results for its fiscal 2011 first quarter ended June 30, 2010, reflecting increased sales and improved productivity.
     Net income for the fiscal 2011 first quarter climbed sharply to $2.5 million, or $0.21 per diluted share, compared with net income of $1.2 million, or $0.10 per diluted share, for the comparable period a year earlier.
     Net sales for the fiscal 2011 first quarter increased 10.8 percent to $36.2 million from $32.7 million for the same period last year.
     Gross profit for the fiscal 2011 first quarter was $11.5 million compared with $7.2 million for the same period a year ago.
     Operating income for the fiscal first quarter climbed 77.4 percent to $5.4 million from $3.1 million in the same period a year ago.
     General and administrative expenses were negatively impacted by a $471,000 non-cash loss as a result of negative foreign currency fluctuations in the fiscal 2011 first quarter. The company benefitted in the same period a year earlier as a result of a non-cash gain in foreign currency fluctuations of $964,000.
     “The 2011 fiscal year is off to an excellent start, with strong sales momentum and solid profitability as the company continues to focus on operating leverage and increased usage of available capacity,” said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts.
Teleconference and Web Cast
     Selwyn Joffe, chairman, president and chief executive officer, and David Lee, chief financial officer, will host an investor conference call today at 9:00 a.m. Pacific time to discuss the company’s financial results and operations for its fiscal 2011 first quarter. The call will be open to all interested investors either through a live audio Web broadcast at www.motorcarparts.com or live by calling (877)-776-4016 (domestic) or (973)-638-3231 (international). For those who are not available to listen to the
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Tribecca Plaza • 12233 West Olympic Boulevard Suite 258 • Los Angeles, California 90064
telephone 310.442.9852
facsimile 310.442.9855

 


 

Motorcar Parts of America, Inc.
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live broadcast, the call will be archived for seven days on Motorcar Parts of America’s website. A telephone playback of the conference call will also be available from approximately 12:00 noon Pacific time today through 8:59 p.m. Pacific time on Monday, August 16, 2010 by calling (800)-642-1687 (domestic) or (706)-645-9291 (international) and using access code: 90707301.
About Motorcar Parts of America
     Motorcar Parts of America, Inc. is a remanufacturer of alternators and starters utilized in imported and domestic passenger vehicles, light trucks and heavy duty applications. Its products are sold to automotive retail outlets and the professional repair market throughout the United States and Canada, with remanufacturing facilities located in California, Mexico and Malaysia, and administrative offices located in California, Tennessee, Mexico, Singapore and Malaysia. Additional information is available at www.motorcarparts.com.
     The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the company’s current expectations and beliefs concerning future developments and their potential effects on the company. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the company) and are subject to change based upon various factors. Reference is also made to the Risk Factors set forth in the company’s Form 10-K Annual Report filed with the Securities and Exchange Commission (SEC) in June 2010 and in its Form 10-Q filed with the SEC thereafter for additional risks and uncertainties facing the company. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.
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(Financial tables follow)
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MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
                 
    Three Months Ended  
    June 30,  
    2010     2009  
Net sales
  $ 36,234,000     $ 32,690,000  
Cost of goods sold
    24,689,000       25,519,000  
 
           
 
               
Gross profit
    11,545,000       7,171,000  
Operating expenses:
               
General and administrative
    4,024,000       2,512,000  
Sales and marketing
    1,740,000       1,272,000  
Research and development
    366,000       334,000  
 
           
 
               
Total operating expenses
    6,130,000       4,118,000  
 
           
Operating income
    5,415,000       3,053,000  
Other expense:
               
Interest expense
    1,602,000       996,000  
 
           
Income before income tax expense
    3,813,000       2,057,000  
Income tax expense
    1,293,000       862,000  
 
           
 
               
Net income
  $ 2,520,000     $ 1,195,000  
 
           
 
               
Basic net income per share
  $ 0.21     $ 0.10  
 
           
 
               
Diluted net income per share
  $ 0.21     $ 0.10  
 
           
 
Weighted average number of shares outstanding:
               
 
               
Basic
    12,049,057       11,962,021  
 
           
 
               
Diluted
    12,204,319       12,071,451  
 
           

 


 

MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
                 
    June 30, 2010     March 31, 2010  
    (Unaudited)    
ASSETS        
Current assets:
               
Cash
  $ 1,759,000     $ 1,210,000  
Short-term investments
    232,000       451,000  
Accounts receivable — net
    3,267,000       5,553,000  
Inventory— net
    30,018,000       31,547,000  
Inventory unreturned
    4,664,000       3,924,000  
Deferred income taxes
    8,436,000       8,391,000  
Prepaid expenses and other current assets
    1,906,000       2,735,000  
 
           
Total current assets
    50,282,000       53,811,000  
Plant and equipment — net
    11,879,000       12,693,000  
Long-term core inventory
    70,646,000       67,957,000  
Long-term core inventory deposit
    25,768,000       25,768,000  
Long-term deferred income taxes
    720,000       951,000  
Intangible assets — net
    6,110,000       6,304,000  
Other assets
    1,604,000       1,549,000  
 
           
TOTAL ASSETS
  $ 167,009,000     $ 169,033,000  
 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
  $ 27,185,000     $ 31,603,000  
Accrued liabilities
    1,377,000       1,863,000  
Accrued salaries and wages
    2,423,000       3,590,000  
Accrued workers’ compensation claims
    1,435,000       1,574,000  
Customer finished goods returns accrual
    7,481,000       7,454,000  
Income tax payable
    1,624,000       678,000  
Revolving loan
    1,800,000        
Other current liabilities
    468,000       697,000  
Current portion of term loan
    2,000,000       2,000,000  
Current portion of capital lease obligations
    580,000       953,000  
 
           
Total current liabilities
    46,373,000       50,412,000  
Term loan, less current portion
    7,000,000       7,500,000  
Deferred core revenue
    6,197,000       6,061,000  
Deferred gain on sale-leaseback
    188,000       319,000  
Other liabilities
    607,000       676,000  
Capital lease obligations, less current portion
    365,000       445,000  
 
           
Total liabilities
    60,730,000       65,413,000  
Commitments and contingencies
               
Shareholders’ equity:
               
Preferred stock; par value $.01 per share, 5,000,000 shares authorized; none issued
           
Series A junior participating preferred stock; par value $.01 per share, 20,000 shares authorized; none issued
           
Common stock; par value $.01 per share, 20,000,000 shares authorized; 12,052,271 and 12,026,021 shares issued and outstanding at June 30, 2010 and March, 31 2010, respectively
    121,000       120,000  
Additional paid-in capital
    92,926,000       92,792,000  
Additional paid-in capital-warrant
    1,879,000       1,879,000  
Accumulated other comprehensive loss
    (1,422,000 )     (1,426,000 )
Retained earnings
    12,775,000       10,255,000  
 
           
Total shareholders’ equity
    106,279,000       103,620,000  
 
           
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  $ 167,009,000     $ 169,033,000