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, 2017
|
MOTORCAR PARTS OF AMERICA, INC.
|
||
|
|
|
Date: February 9, 2017
|
/s/ Michael M. Umansky
|
|
|
Michael M. Umansky
|
|
|
Vice President and General Counsel
|
![]() |
|
NEWS RELEASE
|
CONTACT:
|
Gary S. Maier
|
(310) 471-1288
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Net sales
|
$
|
112,595,000
|
$
|
94,022,000
|
$
|
306,843,000
|
$
|
271,527,000
|
||||||||
Cost of goods sold
|
80,225,000
|
65,123,000
|
223,424,000
|
194,817,000
|
||||||||||||
Gross profit
|
32,370,000
|
28,899,000
|
83,419,000
|
76,710,000
|
||||||||||||
Operating expenses:
|
||||||||||||||||
General and administrative
|
7,952,000
|
8,802,000
|
21,446,000
|
38,381,000
|
||||||||||||
Sales and marketing
|
3,234,000
|
2,671,000
|
8,575,000
|
7,583,000
|
||||||||||||
Research and development
|
1,039,000
|
711,000
|
2,813,000
|
2,093,000
|
||||||||||||
Total operating expenses
|
12,225,000
|
12,184,000
|
32,834,000
|
48,057,000
|
||||||||||||
Operating income
|
20,145,000
|
16,715,000
|
50,585,000
|
28,653,000
|
||||||||||||
Interest expense, net
|
3,357,000
|
2,516,000
|
9,365,000
|
13,566,000
|
||||||||||||
Income before income tax expense
|
16,788,000
|
14,199,000
|
41,220,000
|
15,087,000
|
||||||||||||
Income tax expense
|
5,678,000
|
6,451,000
|
13,459,000
|
6,821,000
|
||||||||||||
Net income
|
$
|
11,110,000
|
$
|
7,748,000
|
$
|
27,761,000
|
$
|
8,266,000
|
||||||||
Basic net income per share
|
$
|
0.59
|
$
|
0.42
|
$
|
1.49
|
$
|
0.45
|
||||||||
Diluted net income per share
|
$
|
0.57
|
$
|
0.41
|
$
|
1.43
|
$
|
0.44
|
||||||||
Weighted average number of shares outstanding:
|
||||||||||||||||
Basic
|
18,675,125
|
18,319,531
|
18,587,946
|
18,180,039
|
||||||||||||
Diluted
|
19,441,265
|
19,095,704
|
19,399,857
|
18,981,421
|
December 31, 2016
|
March 31, 2016
|
||||||
ASSETS
|
(Unaudited)
|
||||||
Current assets:
|
|||||||
Cash and cash equivalents
|
$
|
3,941,000
|
$
|
21,897,000
|
|||
Short-term investments
|
1,966,000
|
1,813,000
|
|||||
Accounts receivable — net
|
22,667,000
|
8,548,000
|
|||||
Inventory— net
|
71,340,000
|
58,060,000
|
|||||
Inventory unreturned
|
5,098,000
|
10,520,000
|
|||||
Deferred income taxes
|
34,723,000
|
33,347,000
|
|||||
Prepaid expenses and other current assets
|
7,478,000
|
5,900,000
|
|||||
Total current assets
|
147,213,000
|
140,085,000
|
|||||
Plant and equipment — net
|
18,243,000
|
16,099,000
|
|||||
Long-term core inventory — net
|
257,198,000
|
241,100,000
|
|||||
Long-term core inventory deposits
|
5,569,000
|
5,569,000
|
|||||
Long-term deferred income taxes
|
456,000
|
236,000
|
|||||
Goodwill
|
2,551,000
|
2,053,000
|
|||||
Intangible assets — net
|
4,150,000
|
4,573,000
|
|||||
Other assets
|
7,649,000
|
3,657,000
|
|||||
TOTAL ASSETS
|
$
|
443,029,000
|
$
|
413,372,000
|
|||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|||||||
Current liabilities:
|
|||||||
Accounts payable
|
$
|
77,552,000
|
$
|
72,152,000
|
|||
Accrued liabilities
|
8,716,000
|
9,101,000
|
|||||
Customer finished goods returns accrual
|
12,567,000
|
26,376,000
|
|||||
Accrued core payment
|
11,791,000
|
8,989,000
|
|||||
Revolving loan
|
18,001,000
|
7,000,000
|
|||||
Other current liabilities
|
11,579,000
|
4,698,000
|
|||||
Current portion of term loan
|
3,064,000
|
3,067,000
|
|||||
Total current liabilities
|
143,270,000
|
131,383,000
|
|||||
Term loan, less current portion
|
17,691,000
|
19,980,000
|
|||||
Long-term accrued core payment
|
15,181,000
|
17,550,000
|
|||||
Long-term deferred income taxes
|
13,577,000
|
14,315,000
|
|||||
Other liabilities
|
13,374,000
|
19,336,000
|
|||||
Total liabilities
|
203,093,000
|
202,564,000
|
|||||
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; 18,693,779 and 18,531,751 shares issued and outstanding at December 31, 2016 and March 31, 2016, respectively
|
187,000
|
185,000
|
|||||
Additional paid-in capital
|
206,619,000
|
203,650,000
|
|||||
Retained earnings
|
40,478,000
|
11,825,000
|
|||||
Accumulated other comprehensive loss
|
(7,348,000
|
) |
(4,852,000
|
)
|
|||
Total shareholders' equity
|
239,936,000
|
210,808,000
|
|||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
443,029,000
|
$
|
413,372,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 1
|
Three Months Ended December 31,
|
Nine Months Ended December 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
GAAP Results:
|
||||||||||||||||
Net sales
|
$
|
112,595,000
|
$
|
94,022,000
|
$
|
306,843,000
|
$
|
271,527,000
|
||||||||
Net income
|
11,110,000
|
7,748,000
|
27,761,000
|
8,266,000
|
||||||||||||
Diluted income per share (EPS)
|
0.57
|
0.41
|
1.43
|
0.44
|
||||||||||||
Gross margin
|
28.7
|
%
|
30.7
|
%
|
27.2
|
%
|
28.3
|
%
|
||||||||
Non-GAAP Adjusted Results:
|
||||||||||||||||
Non-GAAP adjusted net sales
|
$
|
112,853,000
|
$
|
94,022,000
|
$
|
319,058,000
|
$
|
282,390,000
|
||||||||
Non-GAAP adjusted net income
|
11,744,000
|
9,942,000
|
34,260,000
|
30,086,000
|
||||||||||||
Non-GAAP adjusted diluted earnings per share (EPS)
|
0.60
|
0.52
|
1.77
|
1.59
|
||||||||||||
Non-GAAP adjusted gross margin
|
30.1
|
%
|
31.5
|
%
|
30.9
|
%
|
31.1
|
%
|
||||||||
Non-GAAP adjusted EBITDA
|
$
|
23,558,000
|
$
|
19,596,000
|
$
|
68,247,000
|
$
|
59,992,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 2
|
Three Months Ended December 31,
|
Nine Months Ended December 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
GAAP net sales
|
$
|
112,595,000
|
$
|
94,022,000
|
$
|
306,843,000
|
$
|
271,527,000
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Initial return and stock adjustment accruals related to new business
|
-
|
-
|
3,168,000
|
-
|
||||||||||||
Customer allowances related to new business
|
258,000
|
-
|
9,047,000
|
10,863,000
|
||||||||||||
Adjusted net sales
|
$
|
112,853,000
|
$
|
94,022,000
|
$
|
319,058,000
|
$
|
282,390,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 3
|
Three Months Ended December 31,
|
||||||||||||||||
2016
|
2015
|
|||||||||||||||
$
|
Per Diluted
Share
|
$
|
Per Diluted
Share
|
|||||||||||||
GAAP net income
|
$
|
11,110,000
|
$
|
0.57
|
$
|
7,748,000
|
$
|
0.41
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Customer allowances related to new business
|
258,000
|
$
|
0.01
|
-
|
$
|
-
|
||||||||||
Cost of goods sold
|
||||||||||||||||
Lower of cost or market revaluation - cores on customers' shelves and inventory step-up amortization
|
1,295,000
|
$
|
0.07
|
752,000
|
$
|
0.04
|
||||||||||
Operating expenses
|
||||||||||||||||
Legal, severance, acquisition, financing, transition and other costs
|
92,000
|
$
|
0.00
|
873,000
|
$
|
0.05
|
||||||||||
Payment received in connection with the settlement of litigation related to discontinued subsidiaries
|
-
|
$
|
-
|
(5,800,000
|
)
|
$
|
(0.30
|
)
|
||||||||
Bad debt expense (recovery) resulting from the bankruptcy filing by a customer
|
-
|
$
|
-
|
4,451,000
|
$
|
0.23
|
||||||||||
Share-based compensation expenses
|
818,000
|
$
|
0.04
|
753,000
|
$
|
0.04
|
||||||||||
Mark-to-market losses (gains)
|
2,000
|
$
|
0.00
|
1,070,000
|
$
|
0.06
|
||||||||||
Tax effected at 39% tax rate (a)
|
(1,831,000
|
)
|
$
|
(0.09
|
)
|
95,000
|
$
|
0.00
|
||||||||
Adjusted net income
|
$
|
11,744,000
|
$
|
0.60
|
$
|
9,942,000
|
$
|
0.52
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 4
|
Nine Months Ended December 31,
|
||||||||||||||||
2016
|
2015
|
|||||||||||||||
$
|
Per Diluted
Share
|
$
|
Per Diluted
Share
|
|||||||||||||
GAAP net income
|
$
|
27,761,000
|
$
|
1.43
|
$
|
8,266,000
|
$
|
0.44
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Initial return and stock adjustment accruals related to new business
|
3,168,000
|
$
|
0.16
|
-
|
$
|
-
|
||||||||||
Customer allowances related to new business
|
9,047,000
|
$
|
0.47
|
10,863,000
|
$
|
0.57
|
||||||||||
Cost of goods sold
|
||||||||||||||||
New product line start-up costs
|
140,000
|
$
|
0.01
|
-
|
$
|
-
|
||||||||||
Lower of cost or market revaluation - cores on customers' shelves and inventory step-up amortization
|
3,488,000
|
$
|
0.18
|
1,078,000
|
$
|
0.06
|
||||||||||
Cost of customer allowances and stock adjustment accruals related to new business
|
(568,000
|
)
|
$
|
(0.03
|
)
|
(809,000
|
)
|
$
|
(0.04
|
)
|
||||||
Operating expenses
|
||||||||||||||||
Legal, severance, acquisition, financing, transition and other costs
|
707,000
|
$
|
0.04
|
5,126,000
|
$
|
0.27
|
||||||||||
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
|
||||||||||
Payment made in connection with the settlement of litigation, net of insurance recoveries, related to discontinued subsidiaries
|
-
|
$
|
-
|
9,250,000
|
$
|
0.49
|
||||||||||
Share-based compensation expenses
|
2,555,000
|
$
|
0.13
|
1,786,000
|
$
|
0.09
|
||||||||||
Mark-to-market losses (gains)
|
(3,593,000
|
)
|
$
|
(0.19
|
)
|
3,181,000
|
$
|
0.17
|
||||||||
Interest
|
||||||||||||||||
Write-off of prior deferred loan fees
|
-
|
$
|
-
|
5,108,000
|
$
|
0.27
|
||||||||||
Tax effected at 39% tax rate (a)
|
(8,445,000
|
)
|
$
|
(0.44
|
)
|
(12,414,000
|
)
|
$
|
(0.65
|
)
|
||||||
Adjusted net income
|
$
|
34,260,000
|
$
|
1.77
|
$
|
30,086,000
|
$
|
1.59
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 5
|
Three Months Ended December 31,
|
||||||||||||||||
2016
|
2015
|
|||||||||||||||
$
|
Gross Margin
|
$
|
Gross Margin
|
|||||||||||||
GAAP gross profit
|
$
|
32,370,000
|
28.7
|
%
|
$
|
28,899,000
|
30.7
|
%
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Customer allowances related to new business
|
258,000
|
-
|
||||||||||||||
Cost of goods sold
|
||||||||||||||||
Lower of cost or market revaluation - cores on customers' shelves and inventory step-up amortization
|
1,295,000
|
752,000
|
||||||||||||||
Total adjustments
|
1,553,000
|
1.4
|
%
|
752,000
|
0.8
|
%
|
||||||||||
Adjusted gross profit
|
$
|
33,923,000
|
30.1
|
%
|
$
|
29,651,000
|
31.5
|
%
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 6
|
Nine Months Ended December 31,
|
||||||||||||||||
2016
|
2015
|
|||||||||||||||
$
|
Gross Margin
|
$
|
Gross Margin
|
|||||||||||||
GAAP gross profit
|
$
|
83,419,000
|
27.2
|
%
|
$
|
76,710,000
|
28.3
|
%
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Initial return and stock adjustment accruals related to new business
|
3,168,000
|
-
|
||||||||||||||
Customer allowances related to new business
|
9,047,000
|
10,863,000
|
||||||||||||||
Cost of goods sold
|
||||||||||||||||
New product line start-up costs
|
140,000
|
-
|
||||||||||||||
Lower of cost or market revaluation - cores on customers' shelves and inventory step-up amortization
|
3,488,000
|
1,078,000
|
||||||||||||||
Cost of customer allowances and stock adjustment accruals related to new business
|
(568,000
|
)
|
(809,000
|
)
|
||||||||||||
Total adjustments
|
15,275,000
|
3.7
|
%
|
11,132,000
|
2.8
|
%
|
||||||||||
Adjusted gross profit
|
$
|
98,694,000
|
30.9
|
%
|
$
|
87,842,000
|
31.1
|
%
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 7
|
Three Months Ended December 31,
|
Nine Months Ended December 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
GAAP net income
|
$
|
11,110,000
|
$
|
7,748,000
|
$
|
27,761,000
|
$
|
8,266,000
|
||||||||
Interest expense, net
|
3,357,000
|
2,516,000
|
9,365,000
|
13,566,000
|
||||||||||||
Income tax expense
|
5,678,000
|
6,451,000
|
13,459,000
|
6,821,000
|
||||||||||||
Depreciation and amortization
|
948,000
|
782,000
|
2,718,000
|
2,213,000
|
||||||||||||
EBITDA
|
$
|
21,093,000
|
$
|
17,497,000
|
$
|
53,303,000
|
$
|
30,866,000
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Initial return and stock adjustment accruals related to new business
|
-
|
-
|
3,168,000
|
-
|
||||||||||||
Customer allowances related to new business
|
258,000
|
-
|
9,047,000
|
10,863,000
|
||||||||||||
Cost of goods sold
|
-
|
|||||||||||||||
New product line start-up costs
|
-
|
-
|
140,000
|
-
|
||||||||||||
Lower of cost or market revaluation - cores on customers' shelves and inventory step-up amortization
|
1,295,000
|
752,000
|
3,488,000
|
1,078,000
|
||||||||||||
Cost of customer allowances and stock adjustment accruals related to new business
|
-
|
-
|
(568,000
|
)
|
(809,000
|
)
|
||||||||||
Operating expenses
|
-
|
|||||||||||||||
Legal, severance, acquisition, financing, transition and other costs
|
92,000
|
873,000
|
707,000
|
5,126,000
|
||||||||||||
Payment received in connection with the settlement of litigation related to discontinued subsidiaries
|
-
|
(5,800,000
|
)
|
-
|
(5,800,000
|
)
|
||||||||||
Bad debt expense (recovery) resulting from the bankruptcy filing by a customer
|
-
|
4,451,000
|
-
|
4,451,000
|
||||||||||||
Payment made in connection with the settlement of litigation, net of insurance recoveries, related to discontinued subsidiaries
|
-
|
-
|
-
|
9,250,000
|
||||||||||||
Share-based compensation expenses
|
818,000
|
753,000
|
2,555,000
|
1,786,000
|
||||||||||||
Mark-to-market losses (gains)
|
2,000
|
1,070,000
|
(3,593,000
|
)
|
3,181,000
|
|||||||||||
Adjusted EBITDA
|
$
|
23,558,000
|
$
|
19,596,000
|
$
|
68,247,000
|
$
|
59,992,000
|