New York
|
|
001-33861
|
|
11-2153962
|
(State or other jurisdiction of incorporation)
|
|
(Commission File Number)
|
|
(IRS Employer Identification No.)
|
2929 California Street, Torrance, CA
|
|
90503
|
(Address of principal executive offices)
|
|
(Zip Code)
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule l4a-12 under the Exchange Act (17 CFR 240.l4a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02.
|
Results of Operations and Financial Condition.
|
Item 9.01.
|
Financial Statements and Exhibits.
|
Exhibit No.
|
Description
|
|
Press Release, dated November 9, 2015
|
MOTORCAR PARTS OF AMERICA, INC.
|
||
|
|
|
Date: November 9, 2015
|
/s/ Michael M. Umansky
|
|
|
Michael M. Umansky
|
|
|
Vice President and General Counsel
|
CONTACT: | Gary S. Maier |
Three Months Ended
September 30,
|
Six Months Ended
September 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Net sales
|
$
|
91,670,000
|
$
|
70,840,000
|
$
|
177,505,000
|
$
|
133,815,000
|
||||||||
Cost of goods sold
|
69,850,000
|
52,420,000
|
129,694,000
|
97,579,000
|
||||||||||||
Gross profit
|
21,820,000
|
18,420,000
|
47,811,000
|
36,236,000
|
||||||||||||
Operating expenses:
|
||||||||||||||||
General and administrative
|
18,219,000
|
9,812,000
|
29,579,000
|
15,204,000
|
||||||||||||
Sales and marketing
|
2,632,000
|
1,837,000
|
4,912,000
|
3,663,000
|
||||||||||||
Research and development
|
646,000
|
539,000
|
1,382,000
|
1,061,000
|
||||||||||||
Total operating expenses
|
21,497,000
|
12,188,000
|
35,873,000
|
19,928,000
|
||||||||||||
Operating income
|
323,000
|
6,232,000
|
11,938,000
|
16,308,000
|
||||||||||||
Interest expense, net
|
2,613,000
|
3,339,000
|
11,050,000
|
6,752,000
|
||||||||||||
(Loss) income before income tax (benefit) expense
|
(2,290,000
|
)
|
2,893,000
|
888,000
|
9,556,000
|
|||||||||||
Income tax (benefit) expense
|
(898,000
|
)
|
1,418,000
|
370,000
|
4,132,000
|
|||||||||||
Net (loss) income
|
$
|
(1,392,000
|
)
|
$
|
1,475,000
|
$
|
518,000
|
$
|
5,424,000
|
|||||||
Basic net (loss) income per share
|
$
|
(0.08
|
)
|
$
|
0.09
|
$
|
0.03
|
$
|
0.35
|
|||||||
Diluted net (loss) income per share
|
$
|
(0.08
|
)
|
$
|
0.09
|
$
|
0.03
|
$
|
0.33
|
|||||||
Weighted average number of shares outstanding:
|
||||||||||||||||
Basic
|
18,215,783
|
15,975,437
|
18,109,912
|
15,531,566
|
||||||||||||
Diluted
|
18,215,783
|
16,826,427
|
18,887,153
|
16,372,726
|
September 30, 2015
|
March 31, 2015
|
|||||||
ASSETS
|
(Unaudited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
31,698,000
|
$
|
61,230,000
|
||||
Short-term investments
|
1,339,000
|
699,000
|
||||||
Accounts receivable — net
|
899,000
|
24,799,000
|
||||||
Inventory— net
|
53,973,000
|
56,829,000
|
||||||
Inventory unreturned
|
10,641,000
|
7,833,000
|
||||||
Deferred income taxes
|
23,219,000
|
22,998,000
|
||||||
Prepaid expenses and other current assets
|
11,265,000
|
7,407,000
|
||||||
Total current assets
|
133,034,000
|
181,795,000
|
||||||
Plant and equipment — net
|
15,360,000
|
12,535,000
|
||||||
Long-term core inventory — net
|
231,382,000
|
188,950,000
|
||||||
Long-term core inventory deposits
|
5,569,000
|
31,571,000
|
||||||
Long-term deferred income taxes
|
238,000
|
261,000
|
||||||
Goodwill
|
2,552,000
|
-
|
||||||
Intangible assets — net
|
4,863,000
|
2,574,000
|
||||||
Other assets
|
3,418,000
|
3,195,000
|
||||||
TOTAL ASSETS
|
$
|
396,416,000
|
$
|
420,881,000
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
69,648,000
|
$
|
61,893,000
|
||||
Accrued liabilities
|
16,948,000
|
10,096,000
|
||||||
Customer finished goods returns accrual
|
19,205,000
|
19,678,000
|
||||||
Accrued core payment
|
8,916,000
|
13,190,000
|
||||||
Revolving loan
|
15,000,000
|
-
|
||||||
Other current liabilities
|
3,748,000
|
2,471,000
|
||||||
Current portion of term loan
|
3,070,000
|
7,733,000
|
||||||
Total current liabilities
|
136,535,000
|
115,061,000
|
||||||
Term loan, less current portion
|
21,517,000
|
71,489,000
|
||||||
Long-term accrued core payment
|
22,024,000
|
23,880,000
|
||||||
Other liabilities
|
21,400,000
|
20,248,000
|
||||||
Total liabilities
|
201,476,000
|
230,678,000
|
||||||
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, 50,000,000 shares authorized; 18,315,871 and 17,974,598 shares issued and outstanding at September 30, 2015 and March 31, 2015, respectively
|
183,000
|
180,000
|
||||||
Additional paid-in capital
|
197,327,000
|
191,279,000
|
||||||
Accumulated other comprehensive loss
|
(4,350,000
|
)
|
(2,518,000
|
)
|
||||
Retained earnings
|
1,780,000
|
1,262,000
|
||||||
Total shareholders' equity
|
194,940,000
|
190,203,000
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
396,416,000
|
$
|
420,881,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 1
|
Three Months Ended September 30,
|
Six Months Ended September 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
GAAP Results:
|
||||||||||||||||
Net sales
|
91,670,000
|
$
|
70,840,000
|
$
|
177,505,000
|
$
|
133,815,000
|
|||||||||
Net income (loss)
|
(1,392,000
|
)
|
1,475,000
|
518,000
|
5,424,000
|
|||||||||||
Diluted income (loss) per share (EPS)
|
(0.08
|
)
|
0.09
|
0.03
|
0.33
|
|||||||||||
Gross margin
|
23.8
|
%
|
26.0
|
%
|
26.9
|
%
|
27.1
|
%
|
||||||||
Non-GAAP Adjusted Results:
|
||||||||||||||||
Non-GAAP adjusted net sales
|
$
|
101,745,000
|
$
|
81,385,000
|
$
|
188,368,000
|
$
|
144,802,000
|
||||||||
Non-GAAP adjusted net income
|
11,790,000
|
10,172,000
|
20,144,000
|
14,891,000
|
||||||||||||
Non-GAAP adjusted diluted earnings per share (EPS)
|
0.62
|
0.60
|
1.07
|
0.91
|
||||||||||||
Non-GAAP adjusted gross margin
|
30.9
|
%
|
35.0
|
%
|
30.9
|
%
|
32.9
|
%
|
||||||||
Non-GAAP adjusted EBITDA
|
22,681,000
|
20,630,000
|
40,396,000
|
32,412,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 2
|
Three Months Ended September 30,
|
Six Months Ended September 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Net sales, as reported
|
$
|
91,670,000
|
$
|
70,840,000
|
$
|
177,505,000
|
$
|
133,815,000
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Return and stock adjustment accruals
|
-
|
560,000
|
-
|
560,000
|
||||||||||||
Customer allowances associated with inventory purchases related to new product lines and additional business
|
10,075,000
|
9,985,000
|
10,863,000
|
10,427,000
|
||||||||||||
Adjusted net sales
|
$
|
101,745,000
|
$
|
81,385,000
|
$
|
188,368,000
|
$
|
144,802,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 3
|
Three Months Ended September 30,
|
||||||||||||||||
2015
|
2014
|
|||||||||||||||
$ |
Per Diluted
Share
|
$ |
Per Diluted
Share
|
|||||||||||||
GAAP net income (loss), as reported
|
$
|
(1,392,000
|
)
|
$
|
(0.08
|
)
|
$
|
1,475,000
|
$
|
0.09
|
||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Return and stock adjustment accruals
|
-
|
560,000
|
$
|
0.03
|
||||||||||||
Customer allowances associated with inventory purchases related to new product lines and additional business
|
10,075,000
|
$
|
0.53
|
9,985,000
|
$
|
0.59
|
||||||||||
Cost of goods sold
|
||||||||||||||||
Lower of cost or market revaluation - cores on customers' shelves and inventory step-up amortization
|
326,000
|
$
|
0.02
|
|||||||||||||
Cost of inventory purchases related to new product lines and additional business, and stock adjustment accrual
|
(809,000
|
)
|
$
|
(0.04
|
)
|
(465,000
|
)
|
$
|
(0.03
|
)
|
||||||
Operating expenses
|
||||||||||||||||
Discontinued subsidiaries legal and other costs
|
1,112,000
|
$
|
0.06
|
1,353,000
|
$
|
0.08
|
||||||||||
Expense for the company’s litigation settlement, net of insurance recoveries, in the June 2013 bankruptcy cases relating to discontinued subsidiaries
|
9,250,000
|
$
|
0.49
|
|||||||||||||
Share-based compensation expense
|
517,000
|
$
|
0.03
|
600,000
|
$
|
0.04
|
||||||||||
Mark-to-market losses (gains)
|
1,147,000
|
$
|
0.06
|
1,750,000
|
$
|
0.10
|
||||||||||
Tax effected at 39% tax rate (a)
|
(8,436,000
|
)
|
$
|
(0.45
|
)
|
(5,086,000
|
)
|
$
|
(0.30
|
)
|
||||||
Adjusted net income
|
$
|
11,790,000
|
$
|
0.62
|
$
|
10,172,000
|
$
|
0.60
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 4
|
Six Months Ended September 30,
|
||||||||||||||||
2015
|
2014
|
|||||||||||||||
$
|
Per Diluted
Share
|
$
|
Per Diluted
Share
|
|||||||||||||
GAAP net income, as reported
|
$
|
518,000
|
$
|
0.03
|
$
|
5,424,000
|
$
|
0.33
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Return and stock adjustment accruals
|
-
|
560,000
|
$
|
0.03
|
||||||||||||
Customer allowances associated with inventory purchases related to new product lines and additional business
|
10,863,000
|
$
|
0.58
|
10,427,000
|
$
|
0.64
|
||||||||||
Cost of goods sold
|
||||||||||||||||
New product line start-up costs
|
-
|
189,000
|
0.01
|
|||||||||||||
Lower of cost or market revaluation - cores on customers' shelves and inventory step-up amortization
|
326,000
|
$
|
0.02
|
731,000
|
0.04
|
|||||||||||
Cost of inventory purchases related to new product lines and additional business, and stock adjustment accrual
|
(809,000
|
)
|
$
|
(0.04
|
)
|
(465,000
|
)
|
(0.03
|
)
|
|||||||
Operating expenses
|
||||||||||||||||
Discontinued subsidiaries legal, severance, acquisition, financing and other costs
|
4,253,000
|
$
|
0.23
|
1,913,000
|
0.12
|
|||||||||||
Expense for the company’s litigation settlement, net of insurance recoveries, in the June 2013 bankruptcy cases relating to discontinued subsidiaries
|
9,250,000
|
$
|
0.49
|
|||||||||||||
Share-based compensation expenses
|
1,033,000
|
$
|
0.05
|
1,098,000
|
$
|
0.07
|
||||||||||
Mark-to-market losses (gains)
|
2,111,000
|
$
|
0.11
|
403,000
|
$
|
0.02
|
||||||||||
Interest
|
||||||||||||||||
Write-off of prior deferred loan fees
|
5,108,000
|
$
|
0.27
|
|||||||||||||
Tax effected at 39% tax rate (a)
|
(12,509,000
|
)
|
$
|
(0.66
|
)
|
(5,389,000
|
)
|
$
|
(0.33
|
)
|
||||||
Adjusted net income
|
$
|
20,144,000
|
$
|
1.07
|
$
|
14,891,000
|
$
|
0.91
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 5
|
Three Months Ended September 30,
|
||||||||||||||||
2015
|
2014
|
|||||||||||||||
$
|
Gross Margin
|
$
|
Gross Margin
|
|||||||||||||
GAAP gross profit, as reported
|
$
|
21,820,000
|
23.8
|
%
|
$
|
18,420,000
|
26.0
|
%
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Return and stock adjustment accruals
|
-
|
560,000
|
||||||||||||||
Customer allowances associated with inventory purchases related to new product lines and additional business
|
10,075,000
|
9,985,000
|
||||||||||||||
Cost of goods sold
|
||||||||||||||||
Lower of cost or market revaluation - cores on customers' shelves and inventory step-up amortization
|
326,000
|
|||||||||||||||
Cost of inventory purchases related to new product lines and additional business, and stock adjustment accrual
|
(809,000
|
)
|
(465,000
|
)
|
||||||||||||
Total adjustments
|
9,592,000
|
7.1
|
%
|
10,080,000
|
9.0
|
%
|
||||||||||
Adjusted gross profit
|
$
|
31,412,000
|
30.9
|
%
|
$
|
28,500,000
|
35.0
|
%
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 6
|
Six Months Ended September 30,
|
||||||||||||||||
2015
|
2014
|
|||||||||||||||
$
|
Gross Margin
|
$
|
Gross Margin
|
|||||||||||||
GAAP gross profit, as reported
|
$
|
47,811,000
|
26.9
|
%
|
$
|
36,236,000
|
27.1
|
%
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Return and stock adjustment accruals
|
-
|
560,000
|
||||||||||||||
Customer allowances associated with inventory purchases related to new product lines and additional business
|
10,863,000
|
10,427,000
|
||||||||||||||
Cost of goods sold
|
||||||||||||||||
New product line start-up costs
|
-
|
189,000
|
||||||||||||||
Lower of cost or market revaluation - cores on customers' shelves and inventory step-up amortization
|
326,000
|
731,000
|
||||||||||||||
Cost of inventory purchases related to new product lines and additional business, and stock adjustment accrual
|
(809,000
|
)
|
(465,000
|
)
|
||||||||||||
Total adjustments
|
10,380,000
|
4.0
|
%
|
11,442,000
|
5.8
|
%
|
||||||||||
Adjusted gross profit
|
$
|
58,191,000
|
30.9
|
%
|
$
|
47,678,000
|
32.9
|
%
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 7
|
Three Months Ended September 30,
|
Six Months Ended September 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
GAAP net income (loss), as reported
|
$
|
(1,392,000
|
)
|
$
|
1,475,000
|
$
|
518,000
|
$
|
5,424,000
|
|||||||
Interest expense, net
|
2,613,000
|
3,339,000
|
11,050,000
|
6,752,000
|
||||||||||||
Income tax expense (benefit)
|
(898,000
|
)
|
1,418,000
|
370,000
|
4,132,000
|
|||||||||||
Depreciation and amortization
|
740,000
|
615,000
|
1,431,000
|
1,248,000
|
||||||||||||
EBITDA, as reported
|
$
|
1,063,000
|
$
|
6,847,000
|
$
|
13,369,000
|
$
|
17,556,000
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Return and stock adjustment accruals
|
-
|
560,000
|
-
|
560,000
|
||||||||||||
Customer allowances associated with inventory purchases related to new product lines and additional business
|
10,075,000
|
9,985,000
|
10,863,000
|
10,427,000
|
||||||||||||
Cost of goods sold
|
||||||||||||||||
New product line start-up costs
|
189,000
|
|||||||||||||||
Lower of cost or market revaluation - cores on customers' shelves and inventory step-up amortization
|
326,000
|
326,000
|
731,000
|
|||||||||||||
Cost of inventory purchases related to new product lines and additional business, and stock adjustment accrual
|
(809,000
|
)
|
(465,000
|
)
|
(809,000
|
)
|
(465,000
|
)
|
||||||||
Operating expenses
|
||||||||||||||||
Discontinued subsidiaries legal, severance, acquisition, financing and other costs
|
1,112,000
|
1,353,000
|
4,253,000
|
1,913,000
|
||||||||||||
Expense for the company’s litigation settlement, net of insurance recoveries, in the June 2013 bankruptcy cases relating to discontinued subsidiaries
|
9,250,000
|
9,250,000
|
||||||||||||||
Share-based compensation expense
|
517,000
|
600,000
|
1,033,000
|
1,098,000
|
||||||||||||
Mark-to-market losses (gains)
|
1,147,000
|
1,750,000
|
2,111,000
|
403,000
|
||||||||||||
Adjusted EBITDA
|
$
|
22,681,000
|
$
|
20,630,000
|
$
|
40,396,000
|
$
|
32,412,000
|