EX-99.1 2 v50389exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(MARIER & COMPANY LOGO)
Corporate Communications and Investor Relations   NEWS RELEASE          
     
     
CONTACT:
  Gary S. Maier
 
  Maier & Company, Inc.
 
  (310) 442-9852
MOTORCAR PARTS OF AMERICA ANNOUNCES RECORD SALES FOR
FISCAL 2009 SECOND QUARTER
Net Income More Than Doubles for Six Months; Operating Income Up 62 percent
     LOS ANGELES, CA – November 10, 2008 – Motorcar Parts of America, Inc. (NasdaqGM: MPAA) today reported strong financial performance for its fiscal 2009 second quarter and six-month period – reflecting the company’s continued success at controlling costs and improving efficiency.
     Net income for the fiscal 2009 second quarter ended September 30, 2008 jumped almost five-fold to $2.3 million, or $0.19 per diluted share, from $466,000, or $0.04 per diluted share, for the comparable period a year earlier. Operating income for the fiscal 2009 second quarter climbed to $5.0 million from $2.4 million a year ago, but was impacted by a non-cash charge of $560,000, or $0.03 per diluted share, recorded in general and administrative expenses to adjust for a significant fluctuation in the value of foreign exchange contracts. Net sales for the fiscal 2009 second quarter were $36.4 million compared with $33.8 million for the same period last year.
     Gross profit for the fiscal 2009 second quarter increased 44.4 percent to $11.9 million from $8.2 million for the same period a year ago. Gross margin was 32.7 percent for the fiscal 2009 second quarter compared with 24.4 percent a year earlier, due primarily to increased revenues, lower manufacturing costs and increased operating efficiencies.
     Net income for the fiscal 2009 six-month period increased sharply to $5.4 million, or $0.44 per diluted share, from $2.1 million, or $0.18 per diluted share, a year ago. Operating income for the same period increased 62.5 percent to $10.8 million from $6.7 million a year earlier. Net sales for the fiscal 2009 six-month period were $69.1 million compared with $69.3 million a year ago.
     Gross profit for the fiscal 2009 six months was $23.4 million compared with $18.4 million for the same period a year ago, with gross margin of 33.8 percent and 26.6 percent for the fiscal 2009 and fiscal 2008 six-month periods, respectively.
     “Results for the first six months of fiscal 2009 met expectations and highlight the company’s ongoing strategic focus on operating efficiencies. While economic conditions are challenging, the environment for aftermarket remanufactured parts should remain strong. The second half of our fiscal
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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.
2-2-2
year is off to an excellent start with strong momentum and additional business from new and existing customers,” said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America, Inc.
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 2009 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)-675-4750 (domestic) or (719)-325-4859 (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 4:00 p.m. Pacific time today, November 10, through 9:00 p.m. Pacific time, Monday, November 17, 2008 by calling (888)-203-1112 (domestic) or (719)-457-0820 (international) and using access code: 6477717.
About Motorcar Parts of America
     Motorcar Parts of America, Inc. is a remanufacturer of alternators and starters utilized in imported and domestic passenger vehicles and light trucks. 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 2008 and in its Form 10-Qs 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)
                                 
    Six Months Ended     Three Months Ended  
    September 30,     September 30,  
    2008     2007     2008     2007  
Net sales
  $ 69,142,000     $ 69,260,000     $ 36,437,000     $ 33,819,000  
Cost of goods sold
    45,756,000       50,815,000       24,531,000       25,574,000  
 
                       
Gross profit
    23,386,000       18,445,000       11,906,000       8,245,000  
Operating expenses:
                               
General and administrative
    9,174,000       9,513,000       4,972,000       4,725,000  
Sales and marketing
    2,356,000       1,726,000       1,344,000       797,000  
Research and development
    1,043,000       550,000       581,000       275,000  
 
                       
Total operating expenses
    12,573,000       11,789,000       6,897,000       5,797,000  
 
                       
Operating income
    10,813,000       6,656,000       5,009,000       2,448,000  
Other expense (income):
                               
Interest expense
    1,984,000       3,201,000       1,152,000       1,544,000  
Interest income
    (18,000 )     (15,000 )     (4,000 )     (1,000 )
 
                       
Income before income tax expense
    8,847,000       3,470,000       3,861,000       905,000  
Income tax expense
    3,495,000       1,412,000       1,541,000       439,000  
 
                       
 
Net income
  $ 5,352,000     $ 2,058,000     $ 2,320,000     $ 466,000  
 
                       
Basic net income per share
  $ 0.44     $ 0.19     $ 0.19     $ 0.04  
 
                       
Diluted net income per share
  $ 0.44     $ 0.18     $ 0.19     $ 0.04  
 
                       
Weighted average number of shares outstanding:
                               
Basic
    12,029,039       10,979,426       11,987,975       12,043,198  
 
                       
Diluted
    12,158,376       11,351,048       12,130,280       12,402,249  
 
                       

 


 

MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
                 
    September 30, 2008     March 31, 2008  
    (Unaudited)        
ASSETS
               
Current assets:
               
Cash
  $ 129,000     $ 1,935,000  
Short-term investments
    355,000       373,000  
Accounts receivable — net
    13,225,000       2,789,000  
Inventory— net
    29,505,000       32,707,000  
Deferred income taxes
    5,802,000       5,657,000  
Inventory unreturned
    3,905,000       4,124,000  
Prepaid expenses and other current assets
    1,394,000       1,608,000  
 
           
Total current assets
    54,315,000       49,193,000  
Plant and equipment — net
    15,804,000       15,996,000  
Long-term core inventory
    61,138,000       50,808,000  
Long-term core inventory deposit
    23,321,000       22,477,000  
Long-term accounts receivable
          767,000  
Long-term deferred income taxes
    1,346,000       1,357,000  
Goodwill
    2,091,000        
Intangible assets — net
    2,898,000        
Other assets
    437,000       810,000  
 
           
TOTAL ASSETS
  $ 161,350,000     $ 141,408,000  
 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
  $ 27,237,000     $ 32,401,000  
Note payable
    1,293,000        
Accrued liabilities
    1,147,000       2,200,000  
Accrued salaries and wages
    2,325,000       3,396,000  
Accrued workers’ compensation claims
    2,161,000       2,042,000  
Income tax payable
    2,242,000       392,000  
Line of credit
    17,550,000        
Deferred compensation
    355,000       373,000  
Deferred income
    133,000       133,000  
Other current liabilities
    297,000       448,000  
Current portion of capital lease obligations
    1,717,000       1,711,000  
 
           
Total current liabilities
    56,457,000       43,096,000  
Deferred income, less current portion
    55,000       122,000  
Deferred core revenue
    3,981,000       2,927,000  
Deferred gain on sale-leaseback
    1,081,000       1,340,000  
Other liabilities
    621,000       265,000  
Capitalized lease obligations, less current portion
    2,268,000       2,565,000  
 
           
Total liabilities
    64,463,000       50,315,000  
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;
               
11,962,021 and 12,070,555 shares issued and outstanding at September 30, 2008 and March 31, 2008, respectively
    120,000       121,000  
Additional paid-in capital
    92,336,000       92,663,000  
Additional paid-in capital-warrant
    1,879,000       1,879,000  
Shareholder note receivable
          (682,000 )
Accumulated other comprehensive income
    448,000       360,000  
Accumulated earnings (deficit)
    2,104,000       (3,248,000 )
 
           
Total shareholders’ equity
    96,887,000       91,093,000  
 
           
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  $ 161,350,000     $ 141,408,000