Segment Information

9 Months Ended

Dec. 31, 2012

Segment Information [Abstract]

Segment Information

14. Segment Information

The Company has two reportable segments, the rotating electrical segment and the undercar product line segment, based on the way the Company manages, evaluates and internally reports its business activities.

The rotating electrical segment is comprised of the Company's alternator and starter business. This segment remanufactures, produces, and distributes alternators and starters for import and domestic cars, light trucks, heavy duty, agricultural and industrial applications. These replacement parts are sold for use on vehicles after initial vehicle purchase.

The undercar product line segment manufactures, remanufactures and distributes new and remanufactured aftermarket auto parts, including steering components, brake calipers, master cylinders, hub assembly and bearings, for virtually all passenger and truck vehicles.

The Company's products are sold to automotive retail chain stores, warehouse distributors, and to major automobile manufacturers throughout North America.

During the third quarter of fiscal 2013, the Company discontinued supplying its products to a major non-profitable customer of the undercar product line segment. The net sales to this customer represented approximately 31.0% for six months ended September 30, 2012 and 20.8% for the year ended March 31, 2012 from the date of acquisition on May 6, 2011, of net sales for this segment. The Company has no further obligation to accept additional product returns from this customer. In accordance with the Company's net-of-core revenue recognition policy, the Company recognized approximately $50,783,000 in revenue from the reduction in our obligation to provide a credit for this major customer's Remanufactured Cores which were previously recorded as a customer core returns accrual and $31,649,000 of the related long-term core inventory previously recorded in the consolidated balance sheet was recognized as cost of goods sold during the nine months ended December 31, 2012.

The results of operations of Fenco have been included from the date of acquisition on May 6, 2011. Financial information relating to the Company's reportable segments is as follows:

	Three months ended December 31, 2012
	Rotating		Undercar
Selected income statement data	Electrical		Product Line			Eliminations		Consolidated
Net sales to external customers	$	50,658,000	$	65,617,000		$	-	$	116,275,000
Gross profit		16,326,000		7,717,000			-		24,043,000
Operating income		5,050,000		2,720,000			-		7,770,000
Net income (loss)		1,786,000		(851,000	)		-		935,000

	Three months ended December 31, 2011
	Rotating		Undercar
Selected income statement data	Electrical		Product Line			Eliminations			Consolidated
Net sales to external customers	$	41,895,000	$	42,202,000		$	-		$	84,097,000
Intersegment revenue, net of cost		241,000		-			(241,000	)		-
Gross profit (loss)		12,636,000		(14,217,000	)		-			(1,581,000	)
Operating income (loss)		5,630,000		(22,219,000	)		-			(16,589,000	)
Net income (loss)		3,028,000		(24,855,000	)		-			(21,827,000	)

	Nine months ended December 31, 2012
	Rotating		Undercar
Selected income statement data	Electrical		Product Line			Eliminations		Consolidated
Net sales to external customers	$	155,109,000	$	161,821,000		$	-	$	316,930,000
Gross profit		51,241,000		1,637,000			-		52,878,000
Operating income (loss)		25,266,000		(19,758,000	)		-		5,508,000
Net income (loss)		10,656,000		(28,516,000	)		-		(17,860,000	)

	Nine months ended December 31, 2011
	Rotating		Undercar
Selected income statement data	Electrical		Product Line			Eliminations			Consolidated
Net sales to external customers	$	126,648,000	$	135,575,000		$	-		$	262,223,000
Intersegment revenue, net of cost		1,853,000		-			(1,853,000	)		-
Gross profit (loss)		40,483,000		(20,052,000	)		-			20,431,000
Operating income (loss)		15,902,000		(37,277,000	)		-			(21,375,000	)
Net income (loss)		8,280,000		(43,851,000	)		-			(35,571,000	)

	December 31, 2012
	Rotating		Undercar
Selected balance sheet data	Electrical		Product Line			Eliminations			Consolidated
Current assets	$	108,879,000	$	64,119,000		$	(31,649,000	)	$	141,349,000
Non-current assets		218,217,000		139,141,000			(56,065,000	)		301,293,000
Total assets	$	327,096,000	$	203,260,000		$	(87,714,000	)	$	442,642,000
Current liabilities	$	69,913,000	$	132,533,000		$	(33,150,000	)	$	169,296,000
Non-current liabilities		95,569,000		157,111,000			(49,618,000	)		203,062,000
Total liabilities		165,482,000		289,644,000			(82,768,000	)		372,358,000
Equity (deficit)		161,614,000		(86,384,000	)		(4,946,000	)		70,284,000
Total liabilities and equity	$	327,096,000	$	203,260,000		$	(87,714,000	)	$	442,642,000

	March 31, 2012
	Rotating		Undercar
Selected balance sheet data	Electrical		Product Line			Eliminations			Consolidated
Current assets	$	115,451,000	$	81,778,000		$	(28,998,000	)	$	168,231,000
Non-current assets		179,167,000		186,896,000			(32,396,000	)		333,667,000
Total assets	$	294,618,000	$	268,674,000		$	(61,394,000	)	$	501,898,000
Current liabilities	$	72,987,000	$	126,430,000		$	(28,998,000	)	$	170,419,000
Non-current liabilities		85,201,000		200,112,000			(27,453,000	)		257,860,000
Total liabilities		158,188,000		326,542,000			(56,451,000	)		428,279,000
Equity (deficit)		136,430,000		(57,868,000	)		(4,943,000	)		73,619,000
Total liabilities and equity	$	294,618,000	$	268,674,000		$	(61,394,000	)	$	501,898,000

	Nine months ended December 31, 2012
	Rotating			Undercar
Selected cash flow data	Electrical			Product Line			Eliminations		Consolidated
Net cash used in operating activities	$	(4,035,000	)	$	(23,694,000	)	$	-	$	(27,729,000	)
Net cash used in investing activities		(1,656,000	)		(1,401,000	)		-		(3,057,000	)
Net cash provided by financing activities		22,514,000			737,000			-		23,251,000
Effect of exchange rate changes on cash		(12,000	)		-			-		(12,000	)
Cash — Beginning of period		32,379,000			238,000			-		32,617,000
Cash — End of period		24,863,000			207,000			-		25,070,000
Additional selected financial data
Depreciation and amortization	$	2,137,000		$	1,854,000		$	-	$	3,991,000
Capital expenditures		1,625,000			1,401,000			-		3,026,000

	Nine months ended December 31, 2011
	Rotating			Undercar
Selected cash flow data	Electrical			Product Line			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	7,124,000		$	(52,472,000	)	$	-	$	(45,348,000	)
Net cash used in investing activities		(775,000	)		(322,000	)		-		(1,097,000	)
Net cash provided by financing activities		39,209,000			8,000,000			-		47,209,000
Effect of exchange rate changes on cash		(108,000	)		-			-		(108,000	)
Cash — Beginning of period		2,477,000			-			-		2,477,000
Cash — End of period		2,856,000			277,000			-		3,133,000
Additional selected financial data
Depreciation and amortization	$	2,634,000		$	2,904,000		$	-	$	5,538,000
Capital expenditures		746,000			322,000			-		1,068,000