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 August 11, 2014
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MOTORCAR PARTS OF AMERICA, INC.
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||
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Date: August 11, 2014
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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: | Gary S. Maier |
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Three Months Ended
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|||||||
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June 30,
|
|||||||
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2014
|
2013
|
||||||
|
||||||||
Net sales
|
$
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62,975,000
|
$
|
50,245,000
|
||||
Cost of goods sold
|
45,159,000
|
34,231,000
|
||||||
Gross profit
|
17,816,000
|
16,014,000
|
||||||
Operating expenses:
|
||||||||
General and administrative
|
5,392,000
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9,632,000
|
||||||
Sales and marketing
|
1,826,000
|
1,731,000
|
||||||
Research and development
|
522,000
|
549,000
|
||||||
Total operating expenses
|
7,740,000
|
11,912,000
|
||||||
Operating income
|
10,076,000
|
4,102,000
|
||||||
Interest expense, net
|
3,413,000
|
3,925,000
|
||||||
Income from continuing operations before income tax expense
|
6,663,000
|
177,000
|
||||||
Income tax expense
|
2,714,000
|
74,000
|
||||||
Income from continuing operations
|
3,949,000
|
103,000
|
||||||
Income from discontinued operations
|
-
|
100,877,000
|
||||||
|
||||||||
Net income
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$
|
3,949,000
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$
|
100,980,000
|
||||
|
||||||||
Basic net income per share from continuing operations
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$
|
0.26
|
$
|
0.01
|
||||
Basic net income per share from discontinued operations
|
-
|
6.97
|
||||||
Basic net income per share
|
$
|
0.26
|
$
|
6.98
|
||||
|
||||||||
Diluted net income per share from continuing operations
|
$
|
0.25
|
$
|
0.01
|
||||
Diluted net income per share from discontinued operations
|
-
|
6.90
|
||||||
Diluted net income per share
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$
|
0.25
|
$
|
6.91
|
||||
|
||||||||
Weighted average number of shares outstanding:
|
||||||||
|
||||||||
Basic
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15,082,818
|
14,460,979
|
||||||
Diluted
|
15,921,367
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14,609,464
|
|
June 30, 2014
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March 31, 2014
|
||||||
ASSETS
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(Unaudited)
|
|||||||
Current assets:
|
||||||||
Cash
|
$
|
24,692,000
|
$
|
24,599,000
|
||||
Short-term investments
|
549,000
|
521,000
|
||||||
Accounts receivable — net
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7,955,000
|
22,283,000
|
||||||
Inventory— net
|
47,471,000
|
47,246,000
|
||||||
Inventory unreturned
|
7,328,000
|
7,534,000
|
||||||
Deferred income taxes
|
18,864,000
|
18,767,000
|
||||||
Prepaid expenses and other current assets
|
3,532,000
|
4,316,000
|
||||||
Total current assets
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110,391,000
|
125,266,000
|
||||||
Plant and equipment — net
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11,224,000
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11,025,000
|
||||||
Long-term core inventory — net
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149,420,000
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143,476,000
|
||||||
Long-term core inventory deposits
|
29,638,000
|
29,375,000
|
||||||
Long-term deferred income taxes
|
2,630,000
|
2,614,000
|
||||||
Intangible assets — net
|
3,064,000
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3,244,000
|
||||||
Other assets
|
3,910,000
|
3,853,000
|
||||||
TOTAL ASSETS
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$
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310,277,000
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$
|
318,853,000
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
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$
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51,721,000
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$
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59,509,000
|
||||
Accrued liabilities
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5,310,000
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8,316,000
|
||||||
Customer finished goods returns accrual
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15,387,000
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16,251,000
|
||||||
Revolving loan
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10,000,000
|
10,000,000
|
||||||
Other current liabilities
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2,499,000
|
1,270,000
|
||||||
Current portion of term loan
|
7,843,000
|
7,843,000
|
||||||
Total current liabilities
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92,760,000
|
103,189,000
|
||||||
Term loan, less current portion
|
77,640,000
|
79,434,000
|
||||||
Deferred core revenue
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15,115,000
|
15,065,000
|
||||||
Other liabilities
|
10,443,000
|
11,529,000
|
||||||
Total liabilities
|
195,958,000
|
209,217,000
|
||||||
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
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-
|
-
|
||||||
Common stock; par value $.01 per share, 50,000,000 shares authorized; 15,082,645 and 15,067,645 shares issued and outstanding at June 30, 2014 and March 31, 2014, respectively
|
151,000
|
151,000
|
||||||
Additional paid-in capital
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121,232,000
|
120,553,000
|
||||||
Accumulated other comprehensive loss
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(822,000
|
)
|
(877,000
|
)
|
||||
Accumulated deficit
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(6,242,000
|
)
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(10,191,000
|
)
|
||||
Total shareholders' equity
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114,319,000
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109,636,000
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
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$
|
310,277,000
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$
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318,853,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 1
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|
Three Months Ended June 30,
|
|||||||
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2014
|
2013
|
||||||
GAAP Results:
|
||||||||
Net sales
|
$
|
62,975,000
|
$
|
50,245,000
|
||||
Net income
|
3,949,000
|
100,980,000
|
||||||
Diluted income per share (EPS)
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0.25
|
6.91
|
||||||
Gross margin
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28.3
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%
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31.9
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%
|
||||
Non-GAAP Adjusted Results:
|
||||||||
Non-GAAP adjusted net income
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$
|
4,719,000
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$
|
3,242,000
|
||||
Non-GAAP adjusted diluted earnings per share (EPS)
|
0.30
|
0.22
|
||||||
Non-GAAP adjusted gross margin
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30.2
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%
|
32.1
|
%
|
||||
Non-GAAP adjusted EBITDA
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11,782,000
|
9,784,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 2
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|
Three Months Ended June 30,
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|||||||||||||||
|
2014
|
2013
|
||||||||||||||
|
$
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Per Diluted Share
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$
|
Per Diluted Share
|
||||||||||||
GAAP net income, as reported
|
$
|
3,949,000
|
$
|
0.25
|
$
|
100,980,000
|
$
|
6.91
|
||||||||
Adjustments:
|
||||||||||||||||
Income from discontinued operations
|
-
|
(100,877,000
|
)
|
$
|
(6.90
|
)
|
||||||||||
Net sales
|
||||||||||||||||
Customer allowance - cost of new business
|
442,000
|
$
|
0.03
|
|||||||||||||
New product line returns and stock adjustment accruals
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-
|
712,000
|
$
|
0.05
|
||||||||||||
Cost of goods sold
|
||||||||||||||||
New product line start-up costs
|
189,000
|
$
|
0.01
|
|||||||||||||
Lower of cost or market revaluation - cores on customers' shelves
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731,000
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$
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0.05
|
|||||||||||||
Cost of stock adjustment accrual
|
-
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(354,000
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)
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$
|
(0.02
|
)
|
||||||||||
Operating expenses
|
||||||||||||||||
Disc. subsidiaries legal, severance and other costs
|
560,000
|
$
|
0.04
|
2,067,000
|
$
|
0.14
|
||||||||||
Share-based compensation expense
|
498,000
|
$
|
0.03
|
125,000
|
$
|
0.01
|
||||||||||
Mark-to-market losses (gains)
|
(1,347,000
|
)
|
$
|
(0.08
|
)
|
2,303,000
|
$
|
0.16
|
||||||||
Disc. subsidiaries sales and marketing expenses
|
-
|
21,000
|
$
|
0.001
|
||||||||||||
Consulting fees, research and development
|
-
|
75,000
|
$
|
0.01
|
||||||||||||
Interest
|
||||||||||||||||
Disc. subsidiaries supplier revolving credit line interest
|
-
|
189,000
|
$
|
0.01
|
||||||||||||
Tax effected at 39% tax rate (a)
|
(303,000
|
)
|
$
|
(0.02
|
)
|
(1,999,000
|
)
|
$
|
(0.14
|
)
|
||||||
Adjusted net income
|
$
|
4,719,000
|
$
|
0.30
|
$
|
3,242,000
|
$
|
0.22
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 3
|
|
Three Months Ended June 30,
|
|||||||||||||||
|
2014
|
2013
|
||||||||||||||
|
$
|
Gross Margin
|
$
|
Gross Margin
|
||||||||||||
GAAP gross profit, as reported
|
$
|
17,816,000
|
28.29
|
%
|
$
|
16,014,000
|
31.87
|
%
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Customer allowance - cost of new business
|
442,000
|
|||||||||||||||
New product line returns and stock adjustment accruals
|
-
|
712,000
|
||||||||||||||
Cost of goods sold
|
||||||||||||||||
New product line start-up costs
|
189,000
|
|||||||||||||||
Lower of cost or market revaluation - cores on customers' shelves
|
731,000
|
|||||||||||||||
Cost of stock adjustment accrual
|
-
|
(354,000
|
)
|
|||||||||||||
Total adjustments
|
1,362,000
|
1.95
|
%
|
358,000
|
0.26
|
%
|
||||||||||
Adjusted gross profit
|
$
|
19,178,000
|
30.24
|
%
|
$
|
16,372,000
|
32.13
|
%
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 4
|
|
Three Months Ended June 30,
|
|||||||
|
2014
|
2013
|
||||||
GAAP net income, as reported
|
$
|
3,949,000
|
$
|
100,980,000
|
||||
Income from discontinued operations
|
-
|
(100,877,000
|
)
|
|||||
Interest expense, net
|
3,413,000
|
3,925,000
|
||||||
Income tax expense
|
2,714,000
|
74,000
|
||||||
Depreciation and amortization
|
633,000
|
733,000
|
||||||
EBITDA, as reported
|
$
|
10,709,000
|
$
|
4,835,000
|
||||
|
||||||||
Adjustments:
|
||||||||
Net sales
|
||||||||
Customer allowance - cost of new business
|
442,000
|
|||||||
New product line returns and stock adjustment accruals
|
-
|
712,000
|
||||||
Cost of goods sold
|
||||||||
New product line start-up costs
|
189,000
|
|||||||
Lower of cost or market revaluation - cores on customers' shelves
|
731,000
|
|||||||
Cost of stock adjustment accrual
|
-
|
(354,000
|
)
|
|||||
Operating expenses
|
||||||||
Disc. subsidiaries legal, severance and other costs
|
560,000
|
2,067,000
|
||||||
Share-based compensation expense
|
498,000
|
125,000
|
||||||
Mark-to-market losses (gains)
|
(1,347,000
|
)
|
2,303,000
|
|||||
Disc. subsidiaries sales and marketing expenses
|
-
|
21,000
|
||||||
Consulting fees, research and development
|
-
|
75,000
|
||||||
Adjusted EBITDA
|
$
|
11,782,000
|
$
|
9,784,000
|
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