EX-99.1 2 v57600exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
 
(MAIER & COMPANY LOGO)   NEWS RELEASE
     
CONTACT:
  Gary S. Maier
 
  Maier & Company, Inc.
 
  (310) 442-9852
MOTORCAR PARTS OF AMERICA REPORTS RECORD FISCAL 2011
SECOND QUARTER RESULTS
—Operating Income Jumps 42 Percent on Strong Sales—
     LOS ANGELES, CA – November 8, 2010 – Motorcar Parts of America, Inc.
(NasdaqGM: MPAA) today reported record results for its fiscal 2011 second quarter and six months ended September 30, 2010.
     Net income for the fiscal 2011 second quarter increased to $3.5 million, or $0.29 per diluted share, compared with net income of $3.4 million, or $0.28 per diluted share, for the comparable period a year earlier. Results for the same period a year earlier included a $1.3 million, or $0.07 per diluted share, gain related to the company’s acquisition of certain assets of Reliance Automotive in August 2009.
     Net sales for the fiscal 2011 second quarter increased to $41.0 million from $39.4 million for the same period last year.
     Gross profit for the fiscal 2011 second quarter was $12.7 million compared with $10.8 million for the same period a year ago. Gross profit as a percentage of net sales for the fiscal 2011 second quarter was 30.9 percent compared with 27.4 percent in the same quarter a year ago.
     Operating income for the fiscal second quarter increased 42 percent to $7.5 million from $5.3 million in the same period a year ago.
     Net income for the fiscal 2011 six-month period increased 30.0 percent to $6.0 million, or $0.49 per diluted share, from $4.6 million, or $0.38 per diluted share, a year earlier. Net sales increased seven percent to $77.2 million from $72.1 million in the corresponding period a year ago.
     Gross profit for the fiscal 2011 six-months was $24.2 million compared with $18.0 million in the same period in fiscal 2011. Gross profit as a percentage of net sales for the same period was 31.4 percent compared with 24.9 percent a year earlier.
     Operating income for the six months was $12.9 million compared with $8.3 million for the same period in fiscal 2010.
     “The company’s fiscal second quarter results reflect continued solid growth in our business and strong operating performance, supported by positive automotive aftermarket dynamics and strong industry momentum. Equally important, our team has been able to capitalize on these positive trends and
(more)
Tribecca Plaza 12233 West Olympic Boulevard Suite 258 Los Angelles, California 90064
    TELEPHONE    310.442.9852
 
    FACSIMILE    310.442.9855

 


 

Motorcar Parts of America, Inc.
2-2-2
execute on the company’s healthy business model to achieve our goals,” 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 10:00 a.m. Pacific time to discuss the company’s financial results and operations for its fiscal 2011 second 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 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 1:00 p.m. Pacific time on Monday, November 8, 2010 through 8:59 p.m. Pacific time on Sunday, November 14, 2010 by calling (800)-642-1687 (domestic) or (706)-645-9291 (international) and using access code: 16370843.
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.
# # #
(Financial tables follow)

 


 

MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    September 30,     September 30,  
    2010     2009     2010     2009  
Net sales
  $ 40,977,000     $ 39,437,000     $ 77,211,000     $ 72,127,000  
Cost of goods sold
    28,295,000       28,621,000       52,984,000       54,140,000  
 
                       
Gross profit
    12,682,000       10,816,000       24,227,000       17,987,000  
Operating expenses:
                               
General and administrative
    3,571,000       3,653,000       7,595,000       6,165,000  
Sales and marketing
    1,201,000       1,535,000       2,941,000       2,807,000  
Research and development
    396,000       334,000       762,000       668,000  
 
                       
Total operating expenses
    5,168,000       5,522,000       11,298,000       9,640,000  
 
                       
Operating income
    7,514,000       5,294,000       12,929,000       8,347,000  
Other expense (income):
                               
Gain on acquisition
          (1,331,000 )           (1,331,000 )
Interest expense — net
    1,701,000       974,000       3,303,000       1,970,000  
 
                       
Income before income tax expense
    5,813,000       5,651,000       9,626,000       7,708,000  
Income tax expense
    2,312,000       2,216,000       3,605,000       3,078,000  
 
                       
Net income
  $ 3,501,000     $ 3,435,000     $ 6,021,000     $ 4,630,000  
 
                       
Basic net income per share
  $ 0.29     $ 0.29     $ 0.50     $ 0.39  
 
                       
Diluted net income per share
  $ 0.29     $ 0.28     $ 0.49     $ 0.38  
 
                       
Weighted average number of shares outstanding:
                               
Basic
    12,038,636       11,973,510       12,043,818       11,967,797  
 
                       
Diluted
    12,202,507       12,101,997       12,220,257       12,086,298  
 
                       

 


 

MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
                 
    September 30, 2010     March 31, 2010  
    (Unaudited)          
ASSETS
               
Current assets:
               
Cash
  $ 5,815,000     $ 1,210,000  
Short-term investments
    265,000       451,000  
Accounts receivable — net
          5,553,000  
Inventory— net
    27,773,000       31,547,000  
Inventory unreturned
    4,366,000       3,924,000  
Deferred income taxes
    8,455,000       8,391,000  
Prepaid expenses and other current assets
    1,928,000       2,735,000  
 
           
Total current assets
    48,602,000       53,811,000  
Plant and equipment — net
    11,563,000       12,693,000  
Long-term core inventory — net
    76,302,000       67,957,000  
Long-term core inventory deposit
    25,984,000       25,768,000  
Long-term deferred income taxes
    722,000       951,000  
Long-term note receivable
    1,894,000        
Intangible assets — net
    5,917,000       6,304,000  
Other assets
    1,660,000       1,549,000  
 
           
TOTAL ASSETS
  $ 172,644,000     $ 169,033,000  
 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
  $ 30,190,000     $ 31,603,000  
Accrued liabilities
    3,134,000       1,863,000  
Accrued salaries and wages
    2,574,000       3,590,000  
Accrued workers’ compensation claims
    1,350,000       1,574,000  
Customer finished goods returns accrual
    6,696,000       7,454,000  
Income tax payable
    535,000       678,000  
Other current liabilities
    478,000       697,000  
Current portion of term loan
    2,000,000       2,000,000  
Current portion of capital lease obligations
    308,000       953,000  
 
           
Total current liabilities
    47,265,000       50,412,000  
Term loan, less current portion
    6,500,000       7,500,000  
Deferred core revenue
    7,738,000       6,061,000  
Deferred gain on sale-leaseback
    58,000       319,000  
Other liabilities
    639,000       676,000  
Capital lease obligations, less current portion
    304,000       445,000  
 
           
Total liabilities
    62,504,000       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 September 30, 2010 and March 31, 2010, respectively
    121,000       120,000  
Treasury stock, at cost, 14,400 shares of common stock at September 30, 2010 and none at March 31, 2010
    (89,000 )      
Additional paid-in capital
    92,934,000       92,792,000  
Additional paid-in capital-warrant
    1,879,000       1,879,000  
Accumulated other comprehensive loss
    (981,000 )     (1,426,000 )
Retained earnings
    16,276,000       10,255,000  
 
           
Total shareholders’ equity
    110,140,000       103,620,000  
 
           
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  $ 172,644,000     $ 169,033,000