New York
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001-33861
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11-2153962
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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2929 California Street, Torrance, CA
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90503
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(Address of principal executive offices)
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(Zip Code)
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule l4a-12 under the Exchange Act (17 CFR 240.l4a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02.
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Results of Operations and Financial Condition.
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Item 9.01.
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Financial Statements and Exhibits.
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Exhibit No.
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Description
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Press Release, dated September 28, 2012
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MOTORCAR PARTS OF AMERICA, INC.
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||
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Date: September 28, 2012
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/s/ Michael M. Umansky
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Michael M. Umansky
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Vice President and General Counsel
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![]() |
NEWS RELEASE
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CONTACT:
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Gary S. Maier
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Maier & Company, Inc.
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(310) 442-9852
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Three Months Ended
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Twelve Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2012
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2011
|
2012
|
2011
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
Net sales
|
$ | 101,464,000 | $ | 42,786,000 | $ | 363,687,000 | $ | 161,285,000 | ||||||||
Cost of goods sold
|
94,188,000 | 28,804,000 | 335,980,000 | 109,903,000 | ||||||||||||
Gross profit
|
7,276,000 | 13,982,000 | 27,707,000 | 51,382,000 | ||||||||||||
Operating expenses:
|
||||||||||||||||
General and administrative
|
9,108,000 | 5,054,000 | 38,881,000 | 17,033,000 | ||||||||||||
Sales and marketing
|
3,785,000 | 1,798,000 | 12,804,000 | 6,537,000 | ||||||||||||
Research and development
|
495,000 | 396,000 | 1,765,000 | 1,549,000 | ||||||||||||
Impairment of plant and equipment
|
- | - | 1,031,000 | - | ||||||||||||
Acquisition costs
|
- | 879,000 | 713,000 | 879,000 | ||||||||||||
Total operating expenses
|
13,388,000 | 8,127,000 | 55,194,000 | 25,998,000 | ||||||||||||
Operating (loss) income
|
(6,112,000 | ) | 5,855,000 | (27,487,000 | ) | 25,384,000 | ||||||||||
Other expense:
|
||||||||||||||||
Interest expense, net
|
5,690,000 | 1,055,000 | 14,255,000 | 5,355,000 | ||||||||||||
(Loss) income before income tax expense
|
(11,802,000 | ) | 4,800,000 | (41,742,000 | ) | 20,029,000 | ||||||||||
Income tax expense
|
1,141,000 | 2,362,000 | 6,772,000 | 7,809,000 | ||||||||||||
Net (loss) income
|
$ | (12,943,000 | ) | $ | 2,438,000 | $ | (48,514,000 | ) | $ | 12,220,000 | ||||||
Basic net (loss) income per share
|
$ | (1.03 | ) | $ | 0.20 | $ | (3.90 | ) | $ | 1.01 | ||||||
Diluted net (loss) income per share
|
$ | (1.03 | ) | $ | 0.19 | $ | (3.90 | ) | $ | 0.99 | ||||||
Weighted average number of shares outstanding:
|
||||||||||||||||
Basic
|
12,519,421 | 12,054,254 | 12,442,684 | 12,042,428 | ||||||||||||
Diluted
|
12,519,421 | 12,583,726 | 12,442,684 | 12,334,331 |
2012
|
2011
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash
|
$ | 32,617,000 | $ | 2,477,000 | ||||
Short-term investments
|
342,000 | 304,000 | ||||||
Accounts receivable — net
|
20,036,000 | 10,635,000 | ||||||
Inventory— net
|
95,071,000 | 29,733,000 | ||||||
Inventory unreturned
|
9,819,000 | 5,031,000 | ||||||
Deferred income taxes
|
3,793,000 | 5,658,000 | ||||||
Prepaid expenses and other current assets
|
6,553,000 | 6,299,000 | ||||||
Total current assets
|
168,231,000 | 60,137,000 | ||||||
Plant and equipment — net
|
12,738,000 | 11,663,000 | ||||||
Long-term core inventory — net
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194,406,000 | 80,558,000 | ||||||
Long-term core inventory deposit
|
26,939,000 | 25,984,000 | ||||||
Long-term deferred income taxes
|
1,857,000 | 1,346,000 | ||||||
Long-term note receivable
|
- | 4,863,000 | ||||||
Goodwill
|
68,356,000 | - | ||||||
Intangible assets — net
|
22,484,000 | 5,530,000 | ||||||
Other assets
|
6,887,000 | 1,784,000 | ||||||
TOTAL ASSETS
|
$ | 501,898,000 | $ | 191,865,000 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 126,100,000 | $ | 38,973,000 | ||||
Accrued liabilities
|
19,379,000 | 7,318,000 | ||||||
Customer finished goods returns accrual
|
21,695,000 | 9,161,000 | ||||||
Other current liabilities
|
2,331,000 | 918,000 | ||||||
Current portion of term loan
|
500,000 | 2,000,000 | ||||||
Current portion of capital lease obligations
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414,000 | 372,000 | ||||||
Total current liabilities
|
170,419,000 | 58,742,000 | ||||||
Term loan, less current portion
|
84,500,000 | 5,500,000 | ||||||
Revolving loan
|
48,884,000 | - | ||||||
Deferred core revenue
|
9,775,000 | 8,729,000 | ||||||
Customer core returns accrual
|
113,702,000 | - | ||||||
Other liabilities
|
751,000 | 1,255,000 | ||||||
Capital lease obligations, less current portion
|
248,000 | 462,000 | ||||||
Total liabilities
|
428,279,000 | 74,688,000 | ||||||
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; 12,533,821 and 12,078,271 shares issued; 12,519,421 and 12,063,871 outstanding at March 31, 2012 and 2011, respectively
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125,000 | 121,000 | ||||||
Treasury stock, at cost, 14,400 shares of common stock at March 31, 2012 and 2011, respectively
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(89,000 | ) | (89,000 | ) | ||||
Additional paid-in capital
|
98,627,000 | 93,140,000 | ||||||
Additional paid-in capital-warrant
|
1,879,000 | 1,879,000 | ||||||
Accumulated other comprehensive loss
|
(884,000 | ) | (349,000 | ) | ||||
Retained (deficit) earnings
|
(26,039,000 | ) | 22,475,000 | |||||
Total shareholders' equity
|
73,619,000 | 117,177,000 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$ | 501,898,000 | $ | 191,865,000 |
Three months ended March 31, 2012 (Unaudited)
|
|||||||||||||||||||||||||||||
Rotating
|
Undercar
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As Reported
|
Adjusted
|
||||||||||||||||||||||||||
Income statement
|
Electrical
|
Product Line
|
(1) |
Eliminations
|
Consolidated
|
Adjustment
|
Consolidated
|
||||||||||||||||||||||
Net sales
|
$ | 51,903,000 | $ | 55,176,000 | $ | - | $ | 107,079,000 | $ | - | $ | 107,079,000 | |||||||||||||||||
Contractual customer penalties/unique customer allowances
|
(C) | (5,615,000 | ) | (2) | (5,615,000 | ) | 5,615,000 | - | |||||||||||||||||||||
Net sales total
|
51,903,000 | 49,561,000 | - | 101,464,000 | 5,615,000 | 107,079,000 | |||||||||||||||||||||||
Cost of goods sold
|
35,054,000 | 59,524,000 | 94,578,000 | 94,578,000 | |||||||||||||||||||||||||
Unusual inventory purchases and freight expenses
|
(B) | 257,000 | (2) | 257,000 | (257,000 | ) | - | ||||||||||||||||||||||
Additional production costs
|
(B) | 1,198,000 | (2) | 1,198,000 | (1,198,000 | ) | - | ||||||||||||||||||||||
Inventory step-up adjustment from purchase accounting
|
(B) | (1,845,000 | ) | (2) | (1,845,000 | ) | 1,845,000 | - | |||||||||||||||||||||
Cost of goods sold total
|
35,054,000 | 59,134,000 | - | 94,188,000 | 390,000 | 94,578,000 | |||||||||||||||||||||||
Gross profit (loss)
|
16,849,000 | (9,573,000 | ) | - | 7,276,000 | 5,225,000 | 12,501,000 | ||||||||||||||||||||||
Gross margin
|
32.5 | % | -19.3 | % | 7.2 | % | 11.7 | % | |||||||||||||||||||||
Gross margin - Adjusted (2)
|
32.5 | % | -7.9 | % | (5) | ||||||||||||||||||||||||
Operating expenses:
|
|||||||||||||||||||||||||||||
General and administrative
|
5,065,000 | 3,150,000 | 8,215,000 | 8,215,000 | |||||||||||||||||||||||||
G&A - Fenco related, bank financing and professional fees
|
(B) | (330,000 | ) | 2,146,000 | 1,816,000 | (1,816,000 | ) | - | |||||||||||||||||||||
Foreign exchange mark-to-market (gain)/loss
|
(B) | (923,000 | ) | (923,000 | ) | 923,000 | - | ||||||||||||||||||||||
Sales and marketing
|
1,870,000 | 1,915,000 | 3,785,000 | 3,785,000 | |||||||||||||||||||||||||
Research and development
|
495,000 | 495,000 | 495,000 | ||||||||||||||||||||||||||
Total operating expenses
|
6,177,000 | 7,211,000 | - | 13,388,000 | (893,000 | ) | 12,495,000 | ||||||||||||||||||||||
Operating income (loss)
|
10,672,000 | (16,784,000 | ) | - | (6,112,000 | ) | 6,118,000 | 6,000 | |||||||||||||||||||||
Interest expense
|
(B) | 2,569,000 | 3,121,000 | 5,690,000 | 5,690,000 | ||||||||||||||||||||||||
Income (loss) before income tax expense
|
8,103,000 | (19,905,000 | ) | - | (11,802,000 | ) | 6,118,000 | (5,684,000 | ) | ||||||||||||||||||||
Income tax expense
|
(B) | 2,083,000 | (942,000 | ) | 1,141,000 | 589,000 | (3) | 1,730,000 | |||||||||||||||||||||
Net income (loss)
|
(A) | $ | 6,020,000 | $ | (18,963,000 | ) | $ | - | $ | (12,943,000 | ) | $ | 5,529,000 | $ | (7,414,000 | ) | |||||||||||||
Undercar product lines not supported
|
3,389,000 | (4) | 3,389,000 | ||||||||||||||||||||||||||
Net income (loss) - Adjusted
|
$ | 8,918,000 | $ | (4,025,000 | ) | ||||||||||||||||||||||||
Diluted net income (loss) per share
|
$ | (1.03 | ) | $ | 0.44 | $ | (0.59 | ) | |||||||||||||||||||||
Undercar product lines not supported
|
$ | 0.27 | (4) | $ | 0.27 | ||||||||||||||||||||||||
Diluted net income (loss) per share - Adjusted
|
$ | 0.71 | $ | (0.32 | ) | ||||||||||||||||||||||||
Weighted average number of shares outstanding:
|
|||||||||||||||||||||||||||||
Diluted
|
12,519,421 | 12,519,421 | 12,519,421 | ||||||||||||||||||||||||||
Depreciation and amortization
|
(B) | 832,000 | 980,000 | 1,812,000 | |||||||||||||||||||||||||
Adjusted EBITDA - Sum of (A) and (B) less (C)
|
$ | 10,251,000 | $ | (8,433,000 | ) | $ | - | $ | 1,818,000 | ||||||||||||||||||||
Undercar product lines not supported
|
3,389,000 | (4) | 3,389,000 | ||||||||||||||||||||||||||
Adjusted EBITDA total
|
$ | (5,044,000 | ) | $ | 5,207,000 |
Twelve months ended March 31, 2012 (Unaudited)
|
||||||||||||||||||||||||||||
Rotating
|
Undercar
|
As Reported
|
Adjusted
|
|||||||||||||||||||||||||
Income statement
|
Electrical
|
Product Line
|
(1) |
Eliminations
|
Consolidated
|
Adjustment
|
Consolidated
|
|||||||||||||||||||||
Net sales
|
$ | 178,551,000 | $ | 193,065,000 | $ | - | $ | 371,616,000 | $ | - | $ | 371,616,000 | ||||||||||||||||
Intersegment revenue, net of cost of goods sold
|
(C)
|
1,853,000 | - | (1,853,000 | ) | - | - | - | ||||||||||||||||||||
Contractual customer penalties/unique customer allowances
|
(C)
|
- | (7,929,000 | ) | (2) | - | (7,929,000 | ) | 7,929,000 | - | ||||||||||||||||||
Net sales total
|
180,404,000 | 185,136,000 | (1,853,000 | ) | 363,687,000 | 7,929,000 | 371,616,000 | |||||||||||||||||||||
Cost of goods sold
|
123,072,000 | 200,732,000 | - | 323,804,000 | - | 323,804,000 | ||||||||||||||||||||||
Intersegment revenue, net of cost of goods sold
|
(B)
|
- | 1,853,000 | (2) | (1,853,000 | ) | - | - | - | |||||||||||||||||||
Unusual inventory purchases and freight expenses
|
(B)
|
- | 3,304,000 | (2) | - | 3,304,000 | (3,304,000 | ) | - | |||||||||||||||||||
Additional production costs
|
(B)
|
- | 5,126,000 | (2) | - | 5,126,000 | (5,126,000 | ) | - | |||||||||||||||||||
Inventory step-up adjustment from purchase accounting
|
(B)
|
- | 3,746,000 | (2) | - | 3,746,000 | (3,746,000 | ) | - | |||||||||||||||||||
Cost of goods sold total
|
123,072,000 | 214,761,000 | (1,853,000 | ) | 335,980,000 | (12,176,000 | ) | 323,804,000 | ||||||||||||||||||||
Gross profit (loss)
|
57,332,000 | (29,625,000 | ) | - | 27,707,000 | 20,105,000 | 47,812,000 | |||||||||||||||||||||
Gross margin
|
31.8 | % | -16.0 | % | 0.0 | % | 7.6 | % | 12.9 | % | ||||||||||||||||||
Gross margin - Adjusted (2)
|
31.1 | % | -4.0 | % | (5) | |||||||||||||||||||||||
Operating expenses:
|
||||||||||||||||||||||||||||
General and administrative
|
17,651,000 | 14,546,000 | - | 32,197,000 | - | 32,197,000 | ||||||||||||||||||||||
G&A - Fenco related, bank financing and professional fees
|
(B)
|
2,494,000 | 3,714,000 | - | 6,208,000 | (6,208,000 | ) | - | ||||||||||||||||||||
Foreign exchange mark-to-market (gain)/loss
|
(B)
|
476,000 | - | - | 476,000 | (476,000 | ) | - | ||||||||||||||||||||
Sales and marketing
|
7,421,000 | 5,145,000 | - | 12,566,000 | - | 12,566,000 | ||||||||||||||||||||||
Sales and marketing - Fenco related
|
(B)
|
238,000 | - | - | 238,000 | (238,000 | ) | - | ||||||||||||||||||||
Research and development
|
1,765,000 | - | - | 1,765,000 | - | 1,765,000 | ||||||||||||||||||||||
Impairment of plant and equipment
|
(B)
|
- | 1,031,000 | - | 1,031,000 | (1,031,000 | ) | - | ||||||||||||||||||||
Acquisition costs
|
(B)
|
713,000 | - | - | 713,000 | (713,000 | ) | - | ||||||||||||||||||||
Total operating expenses
|
30,758,000 | 24,436,000 | - | 55,194,000 | (8,666,000 | ) | 46,528,000 | |||||||||||||||||||||
Operating income (loss)
|
26,574,000 | (54,061,000 | ) | - | (27,487,000 | ) | 28,771,000 | 1,284,000 | ||||||||||||||||||||
Interest expense
|
(B)
|
4,841,000 | 9,414,000 | - | 14,255,000 | - | 14,255,000 | |||||||||||||||||||||
Income (loss) before income tax expense
|
21,733,000 | (63,475,000 | ) | - | (41,742,000 | ) | 28,771,000 | (12,971,000 | ) | |||||||||||||||||||
Income tax expense
|
(B)
|
7,433,000 | (661,000 | ) | - | 6,772,000 | 2,572,000 | (3) | 9,344,000 | |||||||||||||||||||
Net income (loss)
|
(A)
|
$ | 14,300,000 | $ | (62,814,000 | ) | $ | - | $ | (48,514,000 | ) | $ | 26,199,000 | $ | (22,315,000 | ) | ||||||||||||
Undercar product lines not supported
|
11,924,000 | (4) | 11,924,000 | |||||||||||||||||||||||||
Net income (loss) - Adjusted
|
$ | 38,123,000 | $ | (10,391,000 | ) | |||||||||||||||||||||||
Diluted net income (loss) per share
|
$ | (3.90 | ) | $ | 2.11 | $ | (1.79 | ) | ||||||||||||||||||||
Undercar product lines not supported
|
$ | 0.96 | (4) | $ | 0.96 | |||||||||||||||||||||||
Diluted net income (loss) per share - Adjusted
|
$ | 3.06 | $ | (0.84 | ) | |||||||||||||||||||||||
Weighted average number of shares outstanding:
|
||||||||||||||||||||||||||||
Diluted
|
12,442,684 | 12,442,684 | 12,442,684 | |||||||||||||||||||||||||
Depreciation and amortization
|
(B)
|
3,466,000 | 3,884,000 | - | 7,350,000 | |||||||||||||||||||||||
Adjusted EBITDA - Sum of (A) and (B) less (C)
|
$ | 32,108,000 | $ | (23,474,000 | ) | $ | - | $ | 8,634,000 | |||||||||||||||||||
Undercar product lines not supported
|
11,924,000 | (4) | 11,924,000 | |||||||||||||||||||||||||
Adjusted EBITDA total
|
$ | (11,550,000 | ) | $ | 20,558,000 |
Three months ended March 31, 2012 (Unaudited)
|
|||||||||||||
As Reported
|
Adjusted
|
||||||||||||
Rotating
|
Rotating
|
||||||||||||
Income statement
|
Electrical
|
Adjustment
|
Electrical
|
||||||||||
Net sales (excluding intersegment revenue)
|
$ | 51,903,000 | $ | 51,903,000 | |||||||||
Net sales total
|
51,903,000 | - | 51,903,000 | ||||||||||
Cost of goods sold
|
35,054,000 | 35,054,000 | |||||||||||
Gross profit
|
16,849,000 | - | 16,849,000 | ||||||||||
Gross margin
|
32.5 | % | 32.5 | % | |||||||||
Operating expenses:
|
|||||||||||||
General and administrative
|
5,065,000 | 5,065,000 | |||||||||||
General and administration - Fenco related and professional fees
|
(B)
|
(330,000 | ) | 330,000 | - | ||||||||
Foreign exchange mark-to-market (gain)/loss
|
(B)
|
(923,000 | ) | 923,000 | - | ||||||||
Sales and marketing
|
1,870,000 | 1,870,000 | |||||||||||
Research and development
|
495,000 | 495,000 | |||||||||||
Total operating expenses
|
6,177,000 | 1,253,000 | 7,430,000 | ||||||||||
Operating income
|
10,672,000 | (1,253,000 | ) | 9,419,000 | |||||||||
Interest expense, net
|
(B) | 2,569,000 | 802,000 | (2) | 3,371,000 | ||||||||
Income before income tax expense
|
8,103,000 | (2,055,000 | ) | 6,048,000 | |||||||||
Income tax expense
|
(B) | 2,083,000 | 276,000 | 2,359,000 | (1) | ||||||||
Net income
|
(A) | $ | 6,020,000 | $ | (2,331,000 | ) | $ | 3,689,000 | |||||
Diluted net income per share
|
$ | 0.49 | $ | 0.30 | |||||||||
Weighted average number of shares outstanding:
|
|||||||||||||
Diluted
|
12,278,948 |
(3)
|
12,278,948 | (3) | |||||||||
Depreciation and amortization
|
(B) | 832,000 | |||||||||||
Adjusted EBITDA - Sum of (A) and (B)
|
$ | 10,251,000 |
Twelve months ended March 31, 2012 (Unaudited)
|
|||||||||||||
As Reported
|
Adjusted
|
||||||||||||
Rotating
|
Rotating
|
||||||||||||
Income statement
|
Electrical
|
Adjustment
|
Electrical
|
||||||||||
Net sales (excluding intersegment revenue)
|
$ | 178,551,000 | $ | 178,551,000 | |||||||||
Intersegment revenue, net of cost of goods sold
|
(C) | 1,853,000 | (1,853,000 | ) | - | ||||||||
Net sales total
|
180,404,000 | (1,853,000 | ) | 178,551,000 | |||||||||
Cost of goods sold
|
123,072,000 | 123,072,000 | |||||||||||
Gross profit
|
57,332,000 | (1,853,000 | ) | 55,479,000 | |||||||||
Gross margin
|
31.8 | % | 31.1 | % | |||||||||
Operating expenses:
|
|||||||||||||
General and administrative
|
17,651,000 | 17,651,000 | |||||||||||
General and administration - Fenco related and professional fees
|
(B) | 2,494,000 | (2,494,000 | ) | - | ||||||||
Foreign exchange mark-to-market (gain)/loss
|
(B) | 476,000 | (476,000 | ) | - | ||||||||
Sales and marketing
|
7,421,000 | 7,421,000 | |||||||||||
Sales and marketing - Fenco related
|
(B) | 238,000 | (238,000 | ) | - | ||||||||
Research and development
|
1,765,000 | 1,765,000 | |||||||||||
Acquisition costs
|
(B) | 713,000 | (713,000 | ) | - | ||||||||
Total operating expenses
|
30,758,000 | (3,921,000 | ) | 26,837,000 | |||||||||
Operating income
|
26,574,000 | 2,068,000 | 28,642,000 | ||||||||||
Interest expense, net
|
(B) | 4,841,000 | 2,529,000 | (2) | 7,370,000 | ||||||||
Income before income tax expense
|
21,733,000 | (461,000 | ) | 21,272,000 | |||||||||
Income tax expense
|
(B) | 7,433,000 | 863,000 | 8,296,000 | (1) | ||||||||
Net income
|
(A) | $ | 14,300,000 | $ | (1,324,000 | ) | $ | 12,976,000 | |||||
Diluted net income per share
|
$ | 1.15 | $ | 1.04 | |||||||||
Weighted average number of shares outstanding:
|
|||||||||||||
Diluted
|
12,429,756 |
(3)
|
12,429,756 | (3) | |||||||||
Depreciation and amortization
|
(B) | 3,466,000 | |||||||||||
Adjusted EBITDA - Sum of (A) and (B) less (C)
|
$ | 32,108,000 |