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 February 9, 2016
|
MOTORCAR PARTS OF AMERICA, INC.
|
||
|
|
|
Date: February 9, 2016
|
/s/ Michael M. Umansky
|
|
|
Michael M. Umansky
|
|
|
Vice President and General Counsel
|
CONTACT:
|
Gary S. Maier
|
|
Maier & Company, Inc.
|
|
(310) 471-1288
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Net sales
|
$
|
94,022,000
|
$
|
83,992,000
|
$
|
271,527,000
|
$
|
217,807,000
|
||||||||
Cost of goods sold
|
65,123,000
|
59,564,000
|
194,817,000
|
157,143,000
|
||||||||||||
Gross profit
|
28,899,000
|
24,428,000
|
76,710,000
|
60,664,000
|
||||||||||||
Operating expenses:
|
||||||||||||||||
General and administrative
|
8,802,000
|
12,628,000
|
38,381,000
|
27,832,000
|
||||||||||||
Sales and marketing
|
2,671,000
|
2,281,000
|
7,583,000
|
5,944,000
|
||||||||||||
Research and development
|
711,000
|
601,000
|
2,093,000
|
1,662,000
|
||||||||||||
Total operating expenses
|
12,184,000
|
15,510,000
|
48,057,000
|
35,438,000
|
||||||||||||
Operating income
|
16,715,000
|
8,918,000
|
28,653,000
|
25,226,000
|
||||||||||||
Interest expense, net
|
2,516,000
|
3,165,000
|
13,566,000
|
9,917,000
|
||||||||||||
Income before income tax expense
|
14,199,000
|
5,753,000
|
15,087,000
|
15,309,000
|
||||||||||||
Income tax expense
|
6,451,000
|
2,826,000
|
6,821,000
|
6,958,000
|
||||||||||||
Net income
|
$
|
7,748,000
|
$
|
2,927,000
|
$
|
8,266,000
|
$
|
8,351,000
|
||||||||
Basic net income per share
|
$
|
0.42
|
$
|
0.16
|
$
|
0.45
|
$
|
0.51
|
||||||||
Diluted net income per share
|
$
|
0.41
|
$
|
0.16
|
$
|
0.44
|
$
|
0.49
|
||||||||
Weighted average number of shares outstanding:
|
||||||||||||||||
Basic
|
18,319,531
|
17,921,682
|
18,180,039
|
16,331,168
|
||||||||||||
Diluted
|
19,095,704
|
18,822,664
|
18,981,421
|
17,206,069
|
December 31, 2015
|
March 31, 2015
|
|||||||
ASSETS
|
(Unaudited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
13,701,000
|
$
|
61,230,000
|
||||
Short-term investments
|
1,510,000
|
699,000
|
||||||
Accounts receivable — net
|
1,536,000
|
24,799,000
|
||||||
Inventory —net
|
58,501,000
|
56,829,000
|
||||||
Inventory unreturned
|
10,648,000
|
7,833,000
|
||||||
Deferred income taxes
|
23,433,000
|
22,998,000
|
||||||
Prepaid expenses and other current assets
|
6,263,000
|
7,407,000
|
||||||
Total current assets
|
115,592,000
|
181,795,000
|
||||||
Plant and equipment — net
|
15,143,000
|
12,535,000
|
||||||
Long-term core inventory — net
|
236,201,000
|
188,950,000
|
||||||
Long-term core inventory deposits
|
5,569,000
|
31,571,000
|
||||||
Long-term deferred income taxes
|
243,000
|
261,000
|
||||||
Goodwill
|
2,053,000
|
-
|
||||||
Intangible assets — net
|
4,718,000
|
2,574,000
|
||||||
Other assets
|
3,536,000
|
3,195,000
|
||||||
TOTAL ASSETS
|
$
|
383,055,000
|
$
|
420,881,000
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
61,992,000
|
$
|
61,893,000
|
||||
Accrued liabilities
|
8,649,000
|
10,096,000
|
||||||
Customer finished goods returns accrual…
|
23,358,000
|
19,678,000
|
||||||
Accrued core payment
|
8,946,000
|
13,190,000
|
||||||
Revolving loan
|
7,000,000
|
-
|
||||||
Other current liabilities
|
3,744,000
|
2,471,000
|
||||||
Current portion of term loan
|
3,067,000
|
7,733,000
|
||||||
Total current liabilities
|
116,756,000
|
115,061,000
|
||||||
Term loan, less current portion
|
20,738,000
|
71,489,000
|
||||||
Long-term accrued core payment
|
19,794,000
|
23,880,000
|
||||||
Other liabilities
|
22,480,000
|
20,248,000
|
||||||
Total liabilities
|
179,768,000
|
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; 18,326,985 and 17,974,598 shares issued and outstanding at December 31, 2015 and March 31, 2015, respectively
|
183,000
|
180,000
|
||||||
Additional paid-in capital
|
198,306,000
|
191,279,000
|
||||||
Accumulated other comprehensive loss
|
(4,730,000
|
)
|
(2,518,000
|
)
|
||||
Retained earnings
|
9,528,000
|
1,262,000
|
||||||
Total shareholders' equity
|
203,287,000
|
190,203,000
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
383,055,000
|
$
|
420,881,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 1
|
Three Months Ended December 31,
|
Nine Months Ended December 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
GAAP Results:
|
||||||||||||||||
Net sales
|
$
|
94,022,000
|
$
|
83,992,000
|
$
|
271,527,000
|
$
|
217,807,000
|
||||||||
Net income (loss)
|
7,748,000
|
2,927,000
|
8,266,000
|
8,351,000
|
||||||||||||
Diluted income (loss) per share (EPS)
|
0.41
|
0.16
|
0.44
|
0.49
|
||||||||||||
Gross margin
|
30.7
|
%
|
29.1
|
%
|
28.3
|
%
|
27.9
|
%
|
||||||||
Non-GAAP Adjusted Results:
|
||||||||||||||||
Non-GAAP adjusted net sales
|
$
|
94,022,000
|
$
|
85,047,000
|
$
|
282,390,000
|
$
|
229,849,000
|
||||||||
Non-GAAP adjusted net income
|
9,942,000
|
8,048,000
|
30,086,000
|
22,939,000
|
||||||||||||
Non-GAAP adjusted diluted earnings per share (EPS)
|
0.52
|
0.43
|
1.59
|
1.33
|
||||||||||||
Non-GAAP adjusted gross margin
|
31.5
|
%
|
29.7
|
%
|
31.1
|
%
|
31.7
|
%
|
||||||||
Non-GAAP adjusted EBITDA
|
19,596,000
|
16,975,000
|
59,992,000
|
49,387,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 2
|
Three Months Ended December 31,
|
Nine Months Ended December 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Net sales, as reported
|
$
|
94,022,000
|
$
|
83,992,000
|
$
|
271,527,000
|
$
|
217,807,000
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Return and stock adjustment accruals
|
-
|
1,055,000
|
-
|
1,615,000
|
||||||||||||
Customer allowances associated with inventory purchases related to new product lines and additional business
|
-
|
-
|
10,863,000
|
10,427,000
|
||||||||||||
Adjusted net sales
|
$
|
94,022,000
|
$
|
85,047,000
|
$
|
282,390,000
|
$
|
229,849,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 3
|
Three Months Ended December 31,
|
||||||||||||||||
2015
|
2014
|
|||||||||||||||
|
$
|
Per Diluted
Share
|
|
$
|
Per Diluted
Share
|
|||||||||||
GAAP net income (loss), as reported
|
$
|
7,748,000
|
$
|
0.41
|
$
|
2,927,000
|
$
|
0.16
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Return and stock adjustment accruals
|
-
|
1,055,000
|
$
|
0.06
|
||||||||||||
Cost of goods sold | ||||||||||||||||
Lower of cost or market revaluation - cores on customers' shelves and inventory step-up amortization
|
752,000
|
$
|
0.04
|
302,000
|
$
|
0.02
|
||||||||||
Cost of inventory purchases related to new product lines and additional business, and stock adjustment accrual
|
-
|
(518,000
|
)
|
$
|
(0.03
|
)
|
||||||||||
Operating expenses
|
||||||||||||||||
Discontinued subsidiaries legal related, severance and other costs
|
873,000
|
$
|
0.05
|
3,140,000
|
$
|
0.17
|
||||||||||
Payment received in connection with the settlement of litigation related to discontinued subsidiaries
|
(5,800,000
|
)
|
$
|
(0.30
|
)
|
-
|
||||||||||
Bad debt expense resulting from the bankruptcy filing by a customer
|
4,451,000
|
$
|
0.23
|
-
|
||||||||||||
Share-based compensation expense
|
753,000
|
$
|
0.04
|
599,000
|
$
|
0.03
|
||||||||||
Mark-to-market losses (gains)
|
1,070,000
|
$
|
0.06
|
2,862,000
|
$
|
0.15
|
||||||||||
Tax effected at 39% tax rate (a)
|
95,000
|
$
|
0.005
|
(2,319,000
|
)
|
$
|
(0.12
|
)
|
||||||||
Adjusted net income
|
$
|
9,942,000
|
$
|
0.52
|
$
|
8,048,000
|
$
|
0.43
|
(a) | Tax effect at 39% of the income before income tax expense (reflecting the adjustments) |
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 4
|
Nine Months Ended December 31,
|
||||||||||||||||
2015
|
2014
|
|||||||||||||||
|
$
|
Per Diluted
Share
|
|
$
|
Per Diluted
Share
|
|||||||||||
GAAP net income, as reported
|
$
|
8,266,000
|
$
|
0.44
|
$
|
8,351,000
|
$
|
0.49
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Return and stock adjustment accruals
|
-
|
1,615,000
|
$
|
0.09
|
||||||||||||
Customer allowances associated with inventory purchases related to new product lines and additional business
|
10,863,000
|
$
|
0.57
|
10,427,000
|
$
|
0.61
|
||||||||||
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
|
1,078,000
|
$
|
0.06
|
1,033,000
|
0.06
|
|||||||||||
Cost of inventory purchases related to new product lines and additional business, and stock adjustment accrual
|
(809,000
|
)
|
$
|
(0.04
|
)
|
(983,000
|
)
|
(0.06
|
)
|
|||||||
Operating expenses
|
||||||||||||||||
Discontinued subsidiaries legal related, severance, acquisition, financing and other costs
|
5,126,000
|
$
|
0.27
|
5,053,000
|
0.29
|
|||||||||||
Payment received in connection with the settlement of litigation related to discontinued subsidiaries
|
(5,800,000
|
)
|
$
|
(0.31
|
)
|
-
|
||||||||||
Bad debt expense resulting from the bankruptcy filing by a customer
|
4,451,000
|
$
|
0.23
|
-
|
||||||||||||
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
|
1,786,000
|
$
|
0.09
|
1,697,000
|
$
|
0.10
|
||||||||||
Mark-to-market losses (gains)
|
3,181,000
|
$
|
0.17
|
3,265,000
|
$
|
0.19
|
||||||||||
Interest
|
||||||||||||||||
Write-off of prior deferred loan fees
|
5,108,000
|
$
|
0.27
|
-
|
||||||||||||
Tax effected at 39% tax rate (a)
|
(12,414,000
|
)
|
$
|
(0.65
|
)
|
(7,708,000
|
)
|
$
|
(0.45
|
)
|
||||||
Adjusted net income
|
$
|
30,086,000
|
$
|
1.59
|
$
|
22,939,000
|
$
|
1.33
|
(a) | Tax effect at 39% of the income before income tax expense (reflecting the adjustments) |
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 5
|
Three Months Ended December 31,
|
||||||||||||||||
2015
|
2014
|
|||||||||||||||
|
$
|
Gross Margin
|
|
$
|
Gross Margin
|
|||||||||||
GAAP gross profit, as reported
|
$
|
28,899,000
|
30.7
|
%
|
$
|
24,428,000
|
29.1
|
%
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Return and stock adjustment accruals
|
-
|
1,055,000
|
||||||||||||||
Cost of goods sold
|
||||||||||||||||
Lower of cost or market revaluation - cores on customers' shelves and inventory step-up amortization
|
752,000
|
302,000
|
||||||||||||||
Cost of inventory purchases related to new product lines and additional business, and stock adjustment accrual
|
-
|
(518,000
|
)
|
|||||||||||||
Total adjustments
|
752,000
|
0.8
|
%
|
839,000
|
0.6
|
%
|
||||||||||
Adjusted gross profit
|
$
|
29,651,000
|
31.5
|
%
|
$
|
25,267,000
|
29.7
|
%
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 6
|
Nine Months Ended December 31,
|
||||||||||||||||
2015
|
2014
|
|||||||||||||||
|
$
|
Gross Margin
|
|
$
|
Gross Margin
|
|||||||||||
GAAP gross profit, as reported
|
$
|
76,710,000
|
28.25
|
%
|
$
|
60,664,000
|
27.85
|
%
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Return and stock adjustment accruals
|
-
|
1,615,000
|
||||||||||||||
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
|
1,078,000
|
1,033,000
|
||||||||||||||
Cost of inventory purchases related to new product lines and additional business, and stock adjustment accrual
|
(809,000
|
)
|
(983,000
|
)
|
||||||||||||
Total adjustments
|
11,132,000
|
2.86
|
%
|
12,281,000
|
3.88
|
%
|
||||||||||
Adjusted gross profit
|
$
|
87,842,000
|
31.11
|
%
|
$
|
72,945,000
|
31.74
|
%
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 7
|
Three Months Ended December 31,
|
Nine Months Ended December 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
GAAP net income (loss), as reported
|
$
|
7,748,000
|
$
|
2,927,000
|
$
|
8,266,000
|
$
|
8,351,000
|
||||||||
Interest expense, net
|
2,516,000
|
3,165,000
|
13,566,000
|
9,917,000
|
||||||||||||
Income tax expense (benefit)
|
6,451,000
|
2,826,000
|
6,821,000
|
6,958,000
|
||||||||||||
Depreciation and amortization
|
782,000
|
617,000
|
2,213,000
|
1,865,000
|
||||||||||||
EBITDA, as reported
|
$
|
17,497,000
|
$
|
9,535,000
|
$
|
30,866,000
|
$
|
27,091,000
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Return and stock adjustment accruals
|
-
|
1,055,000
|
-
|
1,615,000
|
||||||||||||
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
|
752,000
|
302,000
|
1,078,000
|
1,033,000
|
||||||||||||
Cost of inventory purchases related to new product lines and additional business, and stock adjustment accrual
|
-
|
(518,000
|
)
|
(809,000
|
)
|
(983,000
|
)
|
|||||||||
Operating expenses
|
||||||||||||||||
Discontinued subsidiaries legal related, severance, acquisition, financing and other costs
|
873,000
|
3,140,000
|
5,126,000
|
5,053,000
|
||||||||||||
Payment received in connection with the settlement of litigation related to discontinued subsidiaries
|
(5,800,000
|
)
|
-
|
(5,800,000
|
)
|
-
|
||||||||||
Bad debt expense resulting from the bankruptcy filing by a customer
|
4,451,000
|
-
|
4,451,000
|
-
|
||||||||||||
Expense for the company’s litigation settlement, net of insurance recoveries, in the June 2013 bankruptcy cases relating to discontinued subsidiaries
|
-
|
-
|
9,250,000
|
-
|
||||||||||||
Share-based compensation expense
|
753,000
|
599,000
|
1,786,000
|
1,697,000
|
||||||||||||
Mark-to-market losses (gains)
|
1,070,000
|
2,862,000
|
3,181,000
|
3,265,000
|
||||||||||||
Adjusted EBITDA
|
$
|
19,596,000
|
$
|
16,975,000
|
$
|
59,992,000
|
$
|
49,387,000
|