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
|
|
Press Release, dated August 9, 2017
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MOTORCAR PARTS OF AMERICA, INC.
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||
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|
|
Date: August 9, 2017
|
/s/ Michael M. Umansky
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|
|
Michael M. Umansky
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|
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Vice President and General Counsel
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CONTACT: |
Gary S. Maier
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Three Months Ended
|
||||||||
June 30,
|
||||||||
2017
|
2016
|
|||||||
Net sales
|
$
|
95,063,000
|
$
|
85,412,000
|
||||
Cost of goods sold
|
69,224,000
|
65,021,000
|
||||||
Gross profit
|
25,839,000
|
20,391,000
|
||||||
Operating expenses:
|
||||||||
General and administrative
|
6,187,000
|
3,625,000
|
||||||
Sales and marketing
|
3,394,000
|
2,634,000
|
||||||
Research and development
|
1,002,000
|
869,000
|
||||||
Total operating expenses
|
10,583,000
|
7,128,000
|
||||||
Operating income
|
15,256,000
|
13,263,000
|
||||||
Interest expense, net
|
3,314,000
|
2,819,000
|
||||||
Income before income tax expense
|
11,942,000
|
10,444,000
|
||||||
Income tax expense
|
4,316,000
|
2,936,000
|
||||||
Net income
|
$
|
7,626,000
|
$
|
7,508,000
|
||||
Basic net income per share
|
$
|
0.41
|
$
|
0.40
|
||||
Diluted net income per share
|
$
|
0.39
|
$
|
0.39
|
||||
Weighted average number of shares outstanding:
|
||||||||
Basic
|
18,655,304
|
18,545,621
|
||||||
Diluted
|
19,421,352
|
19,484,938
|
June 30, 2017
|
March 31, 2017
|
|||||||
ASSETS
|
(Unaudited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
8,120,000
|
$
|
9,029,000
|
||||
Short-term investments
|
2,407,000
|
2,140,000
|
||||||
Accounts receivable — net
|
9,704,000
|
26,017,000
|
||||||
Inventory— net
|
82,246,000
|
67,516,000
|
||||||
Inventory unreturned
|
7,701,000
|
7,581,000
|
||||||
Prepaid expenses and other current assets
|
9,664,000
|
9,848,000
|
||||||
Total current assets
|
119,842,000
|
122,131,000
|
||||||
Plant and equipment — net
|
18,318,000
|
18,437,000
|
||||||
Long-term core inventory — net
|
264,726,000
|
262,922,000
|
||||||
Long-term core inventory deposits
|
5,569,000
|
5,569,000
|
||||||
Long-term deferred income taxes
|
13,642,000
|
13,546,000
|
||||||
Goodwill
|
2,551,000
|
2,551,000
|
||||||
Intangible assets — net
|
3,848,000
|
3,993,000
|
||||||
Other assets
|
6,398,000
|
6,990,000
|
||||||
TOTAL ASSETS
|
$
|
434,894,000
|
$
|
436,139,000
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
82,953,000
|
$
|
85,960,000
|
||||
Accrued liabilities
|
7,843,000
|
10,077,000
|
||||||
Customer finished goods returns accrual
|
13,877,000
|
17,667,000
|
||||||
Accrued core payment
|
11,728,000
|
11,714,000
|
||||||
Revolving loan
|
15,000,000
|
11,000,000
|
||||||
Other current liabilities
|
5,624,000
|
3,300,000
|
||||||
Current portion of term loan
|
3,060,000
|
3,064,000
|
||||||
Total current liabilities
|
140,085,000
|
142,782,000
|
||||||
Term loan, less current portion
|
16,155,000
|
16,935,000
|
||||||
Long-term accrued core payment
|
9,401,000
|
12,349,000
|
||||||
Long-term deferred income taxes
|
185,000
|
180,000
|
||||||
Other liabilities
|
13,814,000
|
15,212,000
|
||||||
Total liabilities
|
179,640,000
|
187,458,000
|
||||||
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; 18,635,099 and 18,648,854 shares issued and outstanding at June 30, 2017 and March 31, 2017, respectively
|
186,000
|
186,000
|
||||||
Additional paid-in capital
|
204,308,000
|
205,646,000
|
||||||
Retained earnings
|
57,916,000
|
50,290,000
|
||||||
Accumulated other comprehensive loss
|
(7,156,000
|
)
|
(7,441,000
|
)
|
||||
Total shareholders' equity
|
255,254,000
|
248,681,000
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
434,894,000
|
$
|
436,139,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 1
|
Three Months Ended June 30,
|
||||||||
2017
|
2016
|
|||||||
GAAP Results:
|
||||||||
Net sales
|
$
|
95,063,000
|
$
|
85,412,000
|
||||
Net income
|
7,626,000
|
7,508,000
|
||||||
Diluted income per share (EPS)
|
0.39
|
0.39
|
||||||
Gross margin
|
27.2
|
%
|
23.9
|
%
|
||||
Non-GAAP Adjusted Results:
|
||||||||
Non-GAAP adjusted net sales
|
$
|
95,063,000
|
$
|
93,822,000
|
||||
Non-GAAP adjusted net income
|
7,348,000
|
10,089,000
|
||||||
Non-GAAP adjusted diluted earnings per share (EPS)
|
0.38
|
0.52
|
||||||
Non-GAAP adjusted gross margin
|
28.6
|
%
|
32.3
|
%
|
||||
Non-GAAP adjusted EBITDA
|
$
|
16,399,000
|
$
|
20,219,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 2
|
Three Months Ended June 30,
|
||||||||
2017
|
2016
|
|||||||
GAAP net sales
|
$
|
95,063,000
|
$
|
85,412,000
|
||||
Adjustments:
|
||||||||
Net sales
|
||||||||
Initial return and stock adjustment accruals related to new business
|
-
|
1,853,000
|
||||||
Customer allowances related to new business
|
-
|
6,557,000
|
||||||
Adjusted net sales
|
$
|
95,063,000
|
$
|
93,822,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 3
|
Three Months Ended June 30,
|
||||||||||||||||
2017
|
2016
|
|||||||||||||||
$
|
Per Diluted Share
|
$
|
Per Diluted Share
|
|||||||||||||
GAAP net income
|
$
|
7,626,000
|
$
|
0.39
|
$
|
7,508,000
|
$
|
0.39
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Initial return and stock adjustment accruals related to new business
|
-
|
$
|
-
|
1,853,000
|
$
|
0.10
|
||||||||||
Customer allowances related to new business
|
-
|
$
|
-
|
6,557,000
|
$
|
0.34
|
||||||||||
Cost of goods sold
|
||||||||||||||||
New product line start-up and ramp-up costs
|
-
|
$
|
-
|
124,000
|
$
|
0.01
|
||||||||||
Lower of cost or net realizable value revaluation - cores on customers' shelves
|
1,350,000
|
$
|
0.07
|
1,718,000
|
$
|
0.09
|
||||||||||
Cost of customer allowances and stock adjustment accruals related to new business
|
-
|
$
|
-
|
(355,000
|
)
|
$
|
(0.02
|
)
|
||||||||
Operating expenses
|
||||||||||||||||
Legal, severance, acquisition, financing, transition and other costs
|
265,000
|
$
|
0.01
|
396,000
|
$
|
0.02
|
||||||||||
Share-based compensation expenses
|
834,000
|
$
|
0.04
|
729,000
|
$
|
0.04
|
||||||||||
Mark-to-market losses (gains)
|
(2,345,000
|
)
|
$
|
(0.12
|
)
|
(4,926,000
|
)
|
$
|
(0.25
|
)
|
||||||
Tax effected at 39% tax rate (a)
|
(382,000
|
)
|
$
|
(0.02
|
)
|
(3,515,000
|
)
|
$
|
(0.18
|
)
|
||||||
Adjusted net income
|
$
|
7,348,000
|
$
|
0.38
|
$
|
10,089,000
|
$
|
0.52
|
(a) |
Adjusted net income is calculated by applying an income tax rate of 39%; this rate may differ from the period's actual income tax rate
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 4
|
Three Months Ended June 30,
|
||||||||||||||||
2017
|
2016
|
|||||||||||||||
$
|
Gross Margin
|
$
|
Gross Margin
|
|||||||||||||
GAAP gross profit
|
$
|
25,839,000
|
27.2
|
%
|
$
|
20,391,000
|
23.9
|
%
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Initial return and stock adjustment accruals related to new business
|
-
|
1,853,000
|
||||||||||||||
Customer allowances related to new business
|
-
|
6,557,000
|
||||||||||||||
Cost of goods sold
|
||||||||||||||||
New product line start-up and ramp-up costs
|
-
|
124,000
|
||||||||||||||
Lower of cost or net realizable value revaluation - cores on customers' shelves
|
1,350,000
|
1,718,000
|
||||||||||||||
Cost of customer allowances and stock adjustment accruals related to new business
|
-
|
(355,000
|
)
|
|||||||||||||
Total adjustments
|
1,350,000
|
1.4
|
%
|
9,897,000
|
8.4
|
%
|
||||||||||
Adjusted gross profit
|
$
|
27,189,000
|
28.6
|
%
|
$
|
30,288,000
|
32.3
|
%
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 5
|
Three Months Ended June 30,
|
||||||||
2017
|
2016
|
|||||||
GAAP net income
|
$
|
7,626,000
|
$
|
7,508,000
|
||||
Interest expense, net
|
3,314,000
|
2,819,000
|
||||||
Income tax expense
|
4,316,000
|
2,936,000
|
||||||
Depreciation and amortization
|
1,039,000
|
860,000
|
||||||
EBITDA
|
$
|
16,295,000
|
$
|
14,123,000
|
||||
Adjustments:
|
||||||||
Net sales
|
||||||||
Initial return and stock adjustment accruals related to new business
|
-
|
1,853,000
|
||||||
Customer allowances related to new business
|
-
|
6,557,000
|
||||||
Cost of goods sold
|
||||||||
New product line start-up and ramp-up costs
|
-
|
124,000
|
||||||
Lower of cost or net realizable value revaluation - cores on customers' shelves
|
1,350,000
|
1,718,000
|
||||||
Cost of customer allowances and stock adjustment accruals related to new business
|
-
|
(355,000
|
)
|
|||||
Operating expenses
|
||||||||
Legal, severance, acquisition, financing, transition and other costs
|
265,000
|
396,000
|
||||||
Share-based compensation expenses
|
834,000
|
729,000
|
||||||
Mark-to-market losses (gains)
|
(2,345,000
|
)
|
(4,926,000
|
)
|
||||
Adjusted EBITDA
|
$
|
16,399,000
|
$
|
20,219,000
|