(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
|
||
(Address of principal executive offices)
|
(Zip Code)
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
Soliciting material pursuant to Rule l4a-12 under the Exchange Act (17 CFR 240.l4a-12)
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
Item 2.02. |
Results of Operations and Financial Condition
|
Item 9.01. |
Financial Statements and Exhibits.
|
Exhibit No. |
Description | |
99.1 | Press Release, dated August 9, 2022 | |
104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document).
|
|
MOTORCAR PARTS OF AMERICA, INC.
|
Date: August 9, 2022
|
/s/ David Lee |
|
David Lee
|
Chief Financial Officer
|
• |
Net sales reached a fiscal first quarter record of $164.0 million, an increase of $15.0 million, or 10.0 percent year over year.
|
• |
Gross profit was $30.3 million, an increase of $6.7 million, or 28.6 percent year over year.
|
• |
Operating expenses were impacted by non-cash foreign currency exchange fluctuations of approximately $820,000 compared with the prior year.
|
• |
Results were impacted by $3.0 million of increased interest expenses, primarily due to higher interest rates related to participation in the accounts receivable discount
programs offered by customers.
|
• |
Results were also impacted by $0.22 per share of non-cash items, and $0.15 per share of other items, primarily due to continuing, though diminishing, transitory costs related
to supply chain disruptions.
|
• |
EBITDA (defined below) was $10.5 million, which was impacted by $5.5 million of non-cash items and $3.7 million of other items, primarily due to transitory costs.
|
• |
Future margin expansion expected from additional price increases in the fiscal second quarter; anticipated improved operating efficiencies as brake-related product volume increases and fixed cost
leveraging opportunities are enhanced.
|
• |
Cash flow improvement expected as the new fiscal year gains momentum; strategic inventory build in fiscal 2022 is expected to benefit from previously announced top-line sales targets across all
product lines.
|
Motorcar Parts of America, Inc. |
2-2-2
|
Motorcar Parts of America, Inc. |
3-3-3
|
Three Months Ended
|
||||||||
June 30,
|
||||||||
2022
|
2021
|
|||||||
Net sales
|
$
|
163,985,000
|
$
|
149,034,000
|
||||
Cost of goods sold
|
133,683,000
|
125,463,000
|
||||||
Gross profit
|
30,302,000
|
23,571,000
|
||||||
Operating expenses:
|
||||||||
General and administrative
|
13,634,000
|
12,486,000
|
||||||
Sales and marketing
|
5,542,000
|
5,368,000
|
||||||
Research and development
|
3,113,000
|
2,501,000
|
||||||
Foreign exchange impact of lease liabilities and forward contracts
|
678,000
|
(2,533,000
|
)
|
|||||
Total operating expenses
|
22,967,000
|
17,822,000
|
||||||
Operating income
|
7,335,000
|
5,749,000
|
||||||
Interest expense, net
|
6,921,000
|
3,941,000
|
||||||
Income before income tax expense
|
414,000
|
1,808,000
|
||||||
Income tax expense
|
589,000
|
947,000
|
||||||
Net (loss) income
|
$
|
(175,000
|
)
|
$
|
861,000
|
|||
Basic net (loss) income per share
|
$
|
(0.01
|
)
|
$
|
0.05
|
|||
Diluted net (loss) income per share
|
$
|
(0.01
|
)
|
$
|
0.04
|
|||
Weighted average number of shares outstanding:
|
||||||||
Basic
|
19,123,354
|
19,054,481
|
||||||
Diluted
|
19,123,354
|
19,659,057
|
June 30, 2022
|
March 31, 2022
|
|||||||
ASSETS
|
(Unaudited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
9,217,000
|
$
|
23,016,000
|
||||
Short-term investments
|
1,995,000
|
2,202,000
|
||||||
Accounts receivable — net
|
73,030,000
|
85,075,000
|
||||||
Inventory
|
405,205,000
|
385,504,000
|
||||||
Contract assets
|
27,783,000
|
27,500,000
|
||||||
Prepaid expenses and other current assets
|
11,705,000
|
13,688,000
|
||||||
Total current assets
|
528,935,000
|
536,985,000
|
||||||
Plant and equipment — net
|
49,384,000
|
51,062,000
|
||||||
Operating lease assets
|
80,157,000
|
81,997,000
|
||||||
Long-term deferred income taxes
|
27,046,000
|
26,982,000
|
||||||
Long-term contract assets
|
306,953,000
|
310,255,000
|
||||||
Goodwill and intangible assets — net
|
6,548,000
|
7,004,000
|
||||||
Other assets
|
1,403,000
|
1,413,000
|
||||||
TOTAL ASSETS
|
$
|
1,000,426,000
|
$
|
1,015,698,000
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued liabilities
|
$
|
173,818,000
|
$
|
168,435,000
|
||||
Customer finished goods returns accrual
|
28,793,000
|
38,086,000
|
||||||
Contract liabilities
|
43,645,000
|
42,496,000
|
||||||
Revolving loan
|
146,000,000
|
155,000,000
|
||||||
Other current liabilities
|
11,279,000
|
11,930,000
|
||||||
Operating lease liabilities
|
6,653,000
|
6,788,000
|
||||||
Current portion of term loan
|
3,670,000
|
3,670,000
|
||||||
Total current liabilities
|
413,858,000
|
426,405,000
|
||||||
Term loan, less current portion
|
12,097,000
|
13,024,000
|
||||||
Long-term contract liabilities
|
173,045,000
|
172,764,000
|
||||||
Long-term deferred income taxes
|
121,000
|
126,000
|
||||||
Long-term operating lease liabilities
|
79,552,000
|
80,803,000
|
||||||
Other liabilities
|
6,987,000
|
7,313,000
|
||||||
Total liabilities
|
685,660,000
|
700,435,000
|
||||||
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; 19,214,978 and 19,104,751 shares issued and outstanding at June 30,
2022 and March 31, 2022, respectively
|
192,000
|
191,000
|
||||||
Additional paid-in capital
|
227,729,000
|
227,184,000
|
||||||
Retained earnings
|
92,779,000
|
92,954,000
|
||||||
Accumulated other comprehensive loss
|
(5,934,000
|
)
|
(5,066,000
|
)
|
||||
Total shareholders' equity
|
314,766,000
|
315,263,000
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
1,000,426,000
|
$
|
1,015,698,000
|
Items Impacting Net Income for the Three Months Ended June 30, 2022 and 2021 |
Exhibit 1
|
Three Months Ended June 30,
|
||||||||||||||||
2022
|
2021
|
|||||||||||||||
|
$ |
Per Share
|
|
$ |
Per Share
|
|||||||||||
GAAP net (loss) income
|
$
|
(175,000
|
)
|
$
|
(0.01
|
)
|
$
|
861,000
|
$
|
0.04
|
||||||
Non-cash items impacting net (loss) income
|
||||||||||||||||
Core and finished goods premium amortization
|
$
|
3,044,000
|
$
|
0.16
|
$
|
2,677,000
|
$
|
0.14
|
||||||||
Revaluation - cores on customers' shelves
|
572,000
|
0.03
|
984,000
|
0.05
|
||||||||||||
Share-based compensation expenses and earn-out accruals
|
1,249,000
|
0.07
|
1,543,000
|
0.08
|
||||||||||||
Foreign exchange impact of lease liabilities and forward contracts
|
678,000
|
0.04
|
(2,533,000
|
)
|
(0.13
|
)
|
||||||||||
Tax effect (a)
|
(1,386,000
|
)
|
(0.07
|
)
|
(668,000
|
)
|
(0.03
|
)
|
||||||||
Total non-cash items impacting net (loss) income
|
$
|
4,157,000
|
$
|
0.22
|
$
|
2,003,000
|
$
|
0.10
|
||||||||
Cash items impacting net (loss) income
|
||||||||||||||||
Supply chain disruptions and related costs (b)
|
$
|
3,094,000
|
$
|
0.16
|
$
|
5,297,000
|
$
|
0.27
|
||||||||
New product line start-up costs and transition expenses, and severance (c)
|
618,000
|
0.03
|
2,183,000
|
0.11
|
||||||||||||
Tax effect (a)
|
(928,000
|
)
|
(0.05
|
)
|
(1,870,000
|
)
|
(0.10
|
)
|
||||||||
Total cash items impacting net (loss) income
|
$
|
2,784,000
|
$
|
0.15
|
$
|
5,610,000
|
$
|
0.29
|
Items Impacting Gross Profit for the Three Months Ended June 30, 2022 and 2021 |
Exhibit 2
|
Three Months Ended June 30,
|
||||||||||||||||
2022
|
2021
|
|||||||||||||||
|
$ |
Gross
Margin
|
|
$ |
Gross
Margin
|
|||||||||||
GAAP gross profit
|
$
|
30,302,000
|
18.5
|
%
|
$
|
23,571,000
|
15.8
|
%
|
||||||||
Non-cash items impacting gross profit
|
||||||||||||||||
Core and finished goods premium amortization
|
$
|
3,044,000
|
1.9
|
%
|
$
|
2,677,000
|
1.8
|
%
|
||||||||
Revaluation - cores on customers' shelves
|
572,000
|
0.3
|
%
|
984,000
|
0.7
|
%
|
||||||||||
Total non-cash items impacting gross profit
|
$
|
3,616,000
|
2.2
|
%
|
$
|
3,661,000
|
2.5
|
%
|
||||||||
Cash items impacting gross profit
|
||||||||||||||||
Supply chain disruptions and related costs
|
$
|
2,548,000
|
1.6
|
%
|
$
|
4,761,000
|
3.2
|
%
|
||||||||
New product line start-up costs and transition expenses
|
-
|
-
|
1,947,000
|
1.3
|
%
|
|||||||||||
Total cash items impacting gross profit
|
$
|
2,548,000
|
1.6
|
%
|
$
|
6,708,000
|
4.5
|
%
|
Items Impacting EBITDA for the Three Months Ended June 30, 2022 and 2021 | Exhibit 3 |
Three Months Ended June 30,
|
||||||||
2022
|
2021
|
|||||||
GAAP net (loss) income
|
$
|
(175,000
|
)
|
$
|
861,000
|
|||
Interest expense, net
|
6,921,000
|
3,941,000
|
||||||
Income tax expense
|
589,000
|
947,000
|
||||||
Depreciation and amortization
|
3,124,000
|
3,145,000
|
||||||
EBITDA
|
$
|
10,459,000
|
$
|
8,894,000
|
||||
Non-cash items impacting EBITDA
|
||||||||
Core and finished goods premium amortization
|
$
|
3,044,000
|
$
|
2,677,000
|
||||
Revaluation - cores on customers' shelves
|
572,000
|
984,000
|
||||||
Share-based compensation expenses and earn-out accruals
|
1,249,000
|
1,543,000
|
||||||
Foreign exchange impact of lease liabilities and forward contracts
|
678,000
|
(2,533,000
|
)
|
|||||
Total non-cash items impacting EBITDA
|
$
|
5,543,000
|
$
|
2,671,000
|
||||
Cash items impacting EBITDA
|
||||||||
Supply chain disruptions and related costs
|
$
|
3,094,000
|
$
|
5,297,000
|
||||
New product line start-up costs and transition expenses, and severance (a)
|
618,000
|
2,016,000
|
||||||
Total cash items impacting EBITDA
|
$
|
3,712,000
|
$
|
7,313,000
|
Document and Entity Information |
Aug. 09, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Aug. 09, 2022 |
Entity File Number | 001-33861 |
Entity Registrant Name | MOTORCAR PARTS AMERICA INC |
Entity Central Index Key | 0000918251 |
Entity Incorporation, State or Country Code | NY |
Entity Tax Identification Number | 11-2153962 |
Entity Address, Address Line One | 2929 California Street |
Entity Address, City or Town | Torrance |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 90503 |
City Area Code | 310 |
Local Phone Number | 212-7910 |
Entity Emerging Growth Company | false |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Trading Symbol | MPAA |
Security Exchange Name | NASDAQ |
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