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)
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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)
|
o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
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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.
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Financial Statements and Exhibits.
|
Exhibit
No.
|
Description
|
|
Press Release, dated August 9, 2018
|
MOTORCAR PARTS OF AMERICA, INC.
|
||
|
|
|
Date: August 9, 2018
|
/s/ David Lee
|
|
|
David Lee
|
|
|
Chief Financial Officer
|
CONTACT:
|
Gary S. Maier
|
(310) 471-1288 |
Three Months Ended
June 30,
|
||||||||
2018
|
2017
|
|||||||
Net sales
|
$
|
92,565,000
|
$
|
95,519,000
|
||||
Cost of goods sold
|
75,314,000
|
68,843,000
|
||||||
Gross profit
|
17,251,000
|
26,676,000
|
||||||
Operating expenses:
|
||||||||
General and administrative
|
12,340,000
|
6,187,000
|
||||||
Sales and marketing
|
4,392,000
|
3,394,000
|
||||||
Research and development
|
1,736,000
|
1,002,000
|
||||||
Total operating expenses
|
18,468,000
|
10,583,000
|
||||||
Operating (loss) income
|
(1,217,000
|
)
|
16,093,000
|
|||||
Interest expense, net
|
5,075,000
|
3,314,000
|
||||||
(Loss) income before income tax (benefit) expense
|
(6,292,000
|
)
|
12,779,000
|
|||||
Income tax (benefit) expense
|
(1,278,000
|
)
|
4,628,000
|
|||||
Net (loss) income
|
$
|
(5,014,000
|
)
|
$
|
8,151,000
|
|||
Basic net (loss) income per share
|
$
|
(0.27
|
)
|
$
|
0.44
|
|||
Diluted net (loss) income per share
|
$
|
(0.27
|
)
|
$
|
0.42
|
|||
Weighted average number of shares outstanding:
|
||||||||
Basic
|
18,895,847
|
18,655,304
|
||||||
Diluted
|
18,895,847
|
19,421,352
|
June 30, 2018
|
March 31, 2018
|
|||||||
ASSETS
|
(Unaudited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
12,242,000
|
$
|
13,049,000
|
||||
Short-term investments
|
3,053,000
|
2,828,000
|
||||||
Accounts receivable — net
|
40,510,000
|
63,174,000
|
||||||
Inventory— net
|
187,342,000
|
161,210,000
|
||||||
Inventory unreturned
|
8,315,000
|
7,508,000
|
||||||
Contract assets
|
16,542,000
|
15,614,000
|
||||||
Income tax receivable
|
9,416,000
|
7,796,000
|
||||||
Prepaid expenses and other current assets
|
13,148,000
|
11,491,000
|
||||||
Total current assets
|
290,568,000
|
282,670,000
|
||||||
Plant and equipment — net
|
28,026,000
|
28,322,000
|
||||||
Long-term deferred income taxes
|
10,343,000
|
10,317,000
|
||||||
Long-term contract assets
|
207,792,000
|
205,998,000
|
||||||
Goodwill
|
2,551,000
|
2,551,000
|
||||||
Intangible assets — net
|
3,567,000
|
3,766,000
|
||||||
Other assets
|
6,406,000
|
7,392,000
|
||||||
TOTAL ASSETS
|
$
|
549,253,000
|
$
|
541,016,000
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
86,633,000
|
$
|
73,273,000
|
||||
Accrued liabilities
|
9,358,000
|
11,799,000
|
||||||
Customer finished goods returns accrual
|
16,438,000
|
17,805,000
|
||||||
Contract liabilities
|
32,083,000
|
32,603,000
|
||||||
Revolving loan
|
45,406,000
|
54,000,000
|
||||||
Other current liabilities
|
6,159,000
|
4,471,000
|
||||||
Current portion of term loan
|
2,749,000
|
3,068,000
|
||||||
Total current liabilities
|
198,826,000
|
197,019,000
|
||||||
Term loan, less current portion
|
26,954,000
|
13,913,000
|
||||||
Long-term contract liabilities
|
45,666,000
|
48,183,000
|
||||||
Long-term deferred income taxes
|
216,000
|
226,000
|
||||||
Other liabilities
|
6,853,000
|
5,957,000
|
||||||
Total liabilities
|
278,515,000
|
265,298,000
|
||||||
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; 18,916,108 and 18,893,102 shares issued and outstanding at June 30, 2018 and March 31, 2018, respectively
|
189,000
|
189,000
|
||||||
Additional paid-in capital
|
214,358,000
|
213,609,000
|
||||||
Retained earnings
|
63,080,000
|
67,348,000
|
||||||
Accumulated other comprehensive loss
|
(6,889,000
|
)
|
(5,428,000
|
)
|
||||
Total shareholders’ equity
|
270,738,000
|
275,718,000
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
549,253,000
|
$
|
541,016,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 1
|
Three Months Ended June 30,
|
||||||||
2018
|
2017
|
|||||||
GAAP Results:
|
||||||||
Net sales
|
$
|
92,565,000
|
$
|
95,519,000
|
||||
Net income (loss)
|
(5,014,000
|
)
|
8,151,000
|
|||||
Diluted income (loss) per share (EPS)
|
(0.27
|
)
|
0.42
|
|||||
Gross margin
|
18.6
|
%
|
27.9
|
%
|
||||
Non-GAAP Adjusted Results:
|
||||||||
Non-GAAP adjusted net sales
|
$
|
93,772,000
|
$
|
95,519,000
|
||||
Non-GAAP adjusted net income
|
2,801,000
|
8,310,000
|
||||||
Non-GAAP adjusted diluted earnings per share (EPS)
|
0.15
|
0.43
|
||||||
Non-GAAP adjusted gross margin
|
24.4
|
%
|
29.3
|
%
|
||||
Non-GAAP adjusted EBITDA
|
$
|
10,093,000
|
$
|
17,236,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 2
|
Three Months Ended June 30,
|
||||||||
2018
|
2017
|
|||||||
GAAP net sales
|
$
|
92,565,000
|
$
|
95,519,000
|
||||
Adjustments:
|
||||||||
Net sales
|
||||||||
Customer allowances related to new business
|
1,207,000
|
-
|
||||||
Adjusted net sales
|
$
|
93,772,000
|
$
|
95,519,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 3
|
Three Months Ended June 30,
|
||||||||||||||||
2018
|
2017
|
|||||||||||||||
$
|
Per Diluted
Share
|
$
|
Per Diluted
Share
|
|||||||||||||
GAAP net income (loss)
|
$
|
(5,014,000
|
)
|
$
|
(0.27
|
)
|
$
|
8,151,000
|
$
|
0.42
|
||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Customer allowances related to new business
|
1,207,000
|
$
|
0.06
|
-
|
$
|
-
|
||||||||||
Cost of goods sold
|
||||||||||||||||
New product line start-up and ramp-up costs, and transition expenses
|
1,755,000
|
$
|
0.09
|
-
|
$
|
-
|
||||||||||
Lower of cost or net realizable value revaluation - cores on customers’ shelves
|
2,624,000
|
$
|
0.14
|
1,350,000
|
$
|
0.07
|
||||||||||
Operating expenses
|
||||||||||||||||
Acquisition, financing, transition, severance and other costs
|
531,000
|
$
|
0.03
|
265,000
|
$
|
0.01
|
||||||||||
Share-based compensation expenses
|
941,000
|
$
|
0.05
|
834,000
|
$
|
0.04
|
||||||||||
Mark-to-market losses (gains)
|
2,666,000
|
$
|
0.14
|
(2,345,000
|
)
|
$
|
(0.12
|
)
|
||||||||
Interest
|
||||||||||||||||
Write-off of debt issuance costs
|
303,000
|
$
|
0.02
|
-
|
$
|
-
|
||||||||||
Tax effected (a)
|
(2,212,000
|
)
|
$
|
(0.11
|
)
|
55,000
|
$
|
0.00
|
||||||||
Adjusted net income
|
$
|
2,801,000
|
$
|
0.15
|
$
|
8,310,000
|
$
|
0.43
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 4
|
Three Months Ended June 30,
|
||||||||||||||||
2018
|
2017
|
|||||||||||||||
$
|
Gross
Margin
|
$
|
Gross
Margin
|
|||||||||||||
GAAP gross profit
|
$
|
17,251,000
|
18.6
|
%
|
$
|
26,676,000
|
27.9
|
%
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Customer allowances related to new business
|
1,207,000
|
-
|
||||||||||||||
Cost of goods sold
|
||||||||||||||||
New product line start-up and ramp-up costs, and transition expenses
|
1,755,000
|
-
|
||||||||||||||
Lower of cost or net realizable value revaluation - cores on customers’ shelves
|
2,624,000
|
1,350,000
|
||||||||||||||
Total adjustments
|
5,586,000
|
5.8
|
%
|
1,350,000
|
1.4
|
%
|
||||||||||
Adjusted gross profit
|
$
|
22,837,000
|
24.4
|
%
|
$
|
28,026,000
|
29.3
|
%
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 5
|
Three Months Ended June 30,
|
||||||||
2018
|
2017
|
|||||||
GAAP net income (loss)
|
$
|
(5,014,000
|
)
|
$
|
8,151,000
|
|||
Interest expense, net
|
5,075,000
|
3,314,000
|
||||||
Income tax expense (benefit)
|
(1,278,000
|
)
|
4,628,000
|
|||||
Depreciation and amortization
|
1,586,000
|
1,039,000
|
||||||
EBITDA
|
$
|
369,000
|
$
|
17,132,000
|
||||
Adjustments:
|
||||||||
Net sales
|
||||||||
Customer allowances related to new business
|
1,207,000
|
-
|
||||||
Cost of goods sold
|
||||||||
New product line start-up and ramp-up costs, and transition expenses
|
1,755,000
|
-
|
||||||
Lower of cost or net realizable value revaluation - cores on customers’ shelves
|
2,624,000
|
1,350,000
|
||||||
Operating expenses
|
||||||||
Acquisition, financing, transition, severance and other costs
|
531,000
|
265,000
|
||||||
Share-based compensation expenses
|
941,000
|
834,000
|
||||||
Mark-to-market losses (gains)
|
2,666,000
|
(2,345,000
|
)
|
|||||
Adjusted EBITDA
|
$
|
10,093,000
|
$
|
17,236,000
|
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