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 June 14, 2018
|
MOTORCAR PARTS OF AMERICA, INC.
|
||
|
|
|
Date: June 14, 2018
|
/s/ David Lee
|
|
|
David Lee
|
|
|
Chief Financial Officer
|
CONTACT:
|
Gary S. Maier
|
|
(310) 471-1288
|
Three Months Ended
March 31,
|
Years Ended
March 31,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
Net sales
|
$
|
121,108,000
|
$
|
114,410,000
|
$
|
428,072,000
|
$
|
421,253,000
|
||||||||
Cost of goods sold
|
90,780,000
|
82,783,000
|
322,199,000
|
306,207,000
|
||||||||||||
Gross profit
|
30,328,000
|
31,627,000
|
105,873,000
|
115,046,000
|
||||||||||||
Operating expenses:
|
||||||||||||||||
General and administrative
|
8,810,000
|
9,678,000
|
35,527,000
|
31,124,000
|
||||||||||||
Sales and marketing
|
4,131,000
|
3,551,000
|
15,030,000
|
12,126,000
|
||||||||||||
Research and development
|
1,772,000
|
1,011,000
|
5,692,000
|
3,824,000
|
||||||||||||
Total operating expenses
|
14,713,000
|
14,240,000
|
56,249,000
|
47,074,000
|
||||||||||||
Operating income
|
15,615,000
|
17,387,000
|
49,624,000
|
67,972,000
|
||||||||||||
Interest expense, net
|
4,656,000
|
3,729,000
|
15,445,000
|
13,094,000
|
||||||||||||
Income before income tax expense
|
10,959,000
|
13,658,000
|
34,179,000
|
54,878,000
|
||||||||||||
Income tax expense
|
1,764,000
|
3,846,000
|
17,863,000
|
17,305,000
|
||||||||||||
Net income
|
$
|
9,195,000
|
$
|
9,812,000
|
$
|
16,316,000
|
$
|
37,573,000
|
||||||||
Basic net income per share
|
$
|
0.48
|
$
|
0.53
|
$
|
0.87
|
$
|
2.02
|
||||||||
Diluted net income per share
|
$
|
0.47
|
$
|
0.50
|
$
|
0.84
|
$
|
1.93
|
||||||||
Weighted average number of shares outstanding:
|
||||||||||||||||
Basic
|
18,977,295
|
18,672,381
|
18,854,993
|
18,608,812
|
||||||||||||
Diluted
|
19,441,230
|
19,492,999
|
19,514,775
|
19,418,706
|
2018
|
2017
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
13,049,000
|
$
|
9,029,000
|
||||
Short-term investments
|
2,828,000
|
2,140,000
|
||||||
Accounts receivable — net
|
15,738,000
|
26,017,000
|
||||||
Inventory— net
|
76,275,000
|
67,516,000
|
||||||
Inventory unreturned
|
7,508,000
|
7,581,000
|
||||||
Income tax receivable
|
7,796,000
|
1,709,000
|
||||||
Prepaid expenses and other current assets
|
11,491,000
|
8,139,000
|
||||||
Total current assets
|
134,685,000
|
122,131,000
|
||||||
Plant and equipment — net
|
28,322,000
|
18,437,000
|
||||||
Long-term core inventory — net
|
301,656,000
|
262,922,000
|
||||||
Long-term core inventory deposits
|
5,569,000
|
5,569,000
|
||||||
Long-term deferred income taxes
|
10,556,000
|
13,546,000
|
||||||
Goodwill
|
2,551,000
|
2,551,000
|
||||||
Intangible assets — net
|
3,766,000
|
3,993,000
|
||||||
Other assets
|
7,392,000
|
6,990,000
|
||||||
TOTAL ASSETS
|
$
|
494,497,000
|
$
|
436,139,000
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
73,273,000
|
$
|
85,960,000
|
||||
Accrued liabilities
|
11,799,000
|
10,077,000
|
||||||
Customer finished goods returns accrual
|
17,805,000
|
17,667,000
|
||||||
Accrued core payment
|
16,536,000
|
11,714,000
|
||||||
Revolving loan
|
54,000,000
|
11,000,000
|
||||||
Other current liabilities
|
4,471,000
|
3,300,000
|
||||||
Current portion of term loan
|
3,068,000
|
3,064,000
|
||||||
Total current liabilities
|
180,952,000
|
142,782,000
|
||||||
Term loan, less current portion
|
13,913,000
|
16,935,000
|
||||||
Long-term accrued core payment
|
18,473,000
|
12,349,000
|
||||||
Long-term deferred income taxes
|
226,000
|
180,000
|
||||||
Other liabilities
|
5,957,000
|
15,212,000
|
||||||
Total liabilities
|
219,521,000
|
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; 18,893,102 and 18,648,854 shares issued and outstanding at March 31, 2018 and 2017, respectively
|
189,000 | 186,000 | ||||||
Additional paid-in capital
|
213,609,000
|
205,646,000
|
||||||
Retained earnings
|
66,606,000
|
50,290,000
|
||||||
Accumulated other comprehensive loss
|
(5,428,000
|
) |
(7,441,000
|
)
|
||||
Total shareholders’ equity
|
274,976,000
|
248,681,000
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
494,497,000
|
$
|
436,139,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 1
|
Three Months Ended March 31,
|
Twelve Months Ended March 31,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
GAAP Results:
|
||||||||||||||||
Net sales
|
$
|
121,108,000
|
$
|
114,410,000
|
$
|
428,072,000
|
$
|
421,253,000
|
||||||||
Net income
|
9,195,000
|
9,812,000
|
16,316,000
|
37,573,000
|
||||||||||||
Diluted income per share (EPS)
|
0.47
|
0.50
|
0.84
|
1.93
|
||||||||||||
Gross margin
|
25.0
|
%
|
27.6
|
%
|
24.7
|
%
|
27.3
|
%
|
||||||||
Non-GAAP Adjusted Results:
|
||||||||||||||||
Non-GAAP adjusted net sales
|
$
|
123,829,000
|
$
|
114,922,000
|
$
|
436,531,000
|
$
|
433,980,000
|
||||||||
Non-GAAP adjusted net income
|
10,899,000
|
11,286,000
|
35,607,000
|
45,546,000
|
||||||||||||
Non-GAAP adjusted diluted earnings per share (EPS)
|
0.56
|
0.58
|
1.82
|
2.35
|
||||||||||||
Non-GAAP adjusted gross margin
|
29.6
|
%
|
31.1
|
%
|
28.6
|
%
|
31.0
|
%
|
||||||||
Non-GAAP adjusted EBITDA
|
$
|
22,740,000
|
$
|
23,227,000
|
$
|
74,926,000
|
$
|
91,474,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 2
|
Three Months Ended March 31,
|
Twelve Months Ended March 31,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
GAAP net sales
|
$
|
121,108,000
|
$
|
114,410,000
|
$
|
428,072,000
|
$
|
421,253,000
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Initial return and stock adjustment accruals related to new business
|
394,000
|
-
|
2,890,000
|
3,168,000
|
||||||||||||
Customer allowances related to new business
|
2,327,000
|
512,000
|
5,569,000
|
9,559,000
|
||||||||||||
Adjusted net sales
|
$
|
123,829,000
|
$
|
114,922,000
|
$
|
436,531,000
|
$
|
433,980,000
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 3
|
Three Months Ended March 31,
|
||||||||||||||||
2018
|
2017
|
|||||||||||||||
$
|
Per Diluted
Share
|
$
|
Per Diluted
Share
|
|||||||||||||
GAAP net income
|
$
|
9,195,000
|
$
|
0.47
|
$
|
9,812,000
|
$
|
0.50
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Initial return and stock adjustment accruals related to new business
|
394,000
|
$
|
0.02
|
-
|
$
|
-
|
||||||||||
Customer allowances related to new business
|
2,327,000
|
$
|
0.12
|
512,000
|
$
|
0.03
|
||||||||||
Cost of goods sold
|
||||||||||||||||
New product line start-up and ramp-up costs, and transition expenses
|
1,028,000
|
$
|
0.05
|
1,317,000
|
$
|
0.07
|
||||||||||
Lower of cost or net realizable value revaluation - cores on customers’ shelves
|
2,828,000
|
$
|
0.15
|
2,300,000
|
$
|
0.12
|
||||||||||
Cost of customer allowances and stock adjustment accruals related to new business
|
(287,000
|
)
|
$
|
(0.01
|
)
|
-
|
$
|
-
|
||||||||
Operating expenses
|
||||||||||||||||
Legal, severance, acquisition, financing, transition and other costs
|
355,000
|
$
|
0.02
|
916,000
|
$
|
0.05
|
||||||||||
Share-based compensation expenses
|
1,108,000
|
$
|
0.06
|
829,000
|
$
|
0.04
|
||||||||||
Mark-to-market losses (gains
|
(1,814,000
|
)
|
$
|
(0.09
|
)
|
(1,030,000
|
)
|
$
|
(0.05
|
)
|
||||||
Tax effected (a)
|
(2,793,000
|
)
|
$
|
(0.14
|
)
|
(3,370,000
|
)
|
$
|
(0.17
|
)
|
||||||
Tax charge for revaluation of deferred tax assets and liabilities
|
(1,427,000
|
)
|
$
|
(0.07
|
)
|
-
|
$
|
-
|
||||||||
Transition tax on deemed repatriation of accumulated foreign income
|
(15,000
|
)
|
$
|
(0.00
|
)
|
-
|
$
|
-
|
||||||||
Adjusted net income
|
$
|
10,899,000
|
$
|
0.56
|
$
|
11,286,000
|
$
|
0.58
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 4
|
Twelve Months Ended March 31,
|
||||||||||||||||
2018
|
2017
|
|||||||||||||||
$
|
Per Diluted
Share
|
$
|
Per Diluted
Share
|
|||||||||||||
GAAP net income
|
$
|
16,316,000
|
$
|
0.84
|
$
|
37,573,000
|
$
|
1.93
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Initial return and stock adjustment accruals related to new business
|
2,890,000
|
$
|
0.15
|
3,168,000
|
$
|
0.16
|
||||||||||
Customer allowances related to new business
|
5,569,000
|
$
|
0.29
|
9,559,000
|
$
|
0.49
|
||||||||||
Cost of goods sold
|
||||||||||||||||
New product line start-up and ramp-up costs, and transition expenses
|
1,831,000
|
$
|
0.09
|
1,457,000
|
$
|
0.08
|
||||||||||
Lower of cost or net realizable value revaluation - cores on customers’ shelves and inventory step-up amortization
|
9,360,000
|
$
|
0.48
|
5,788,000
|
$
|
0.30
|
||||||||||
Cost of customer allowances and stock adjustment accruals related to new business
|
(649,000
|
)
|
$
|
(0.03
|
)
|
(568,000
|
)
|
$
|
(0.03
|
)
|
||||||
Operating expenses
|
||||||||||||||||
Legal, severance, acquisition, financing, transition and other costs
|
1,092,000
|
$
|
0.06
|
1,623,000
|
$
|
0.08
|
||||||||||
Share-based compensation expenses
|
3,766,000
|
$
|
0.19
|
3,384,000
|
$
|
0.17
|
||||||||||
Mark-to-market losses (gains)
|
(3,065,000
|
)
|
$
|
(0.16
|
)
|
(4,623,000
|
)
|
$
|
(0.24
|
)
|
||||||
Interest
|
||||||||||||||||
Write-off of debt issuance costs
|
231,000
|
$
|
0.01
|
-
|
$
|
-
|
||||||||||
Tax effected (a)
|
(7,127,000
|
)
|
$
|
(0.37
|
)
|
(11,815,000
|
)
|
$
|
(0.61
|
)
|
||||||
Tax charge for revaluation of deferred tax assets and liabilities
|
4,863,000
|
$
|
0.25
|
-
|
$
|
-
|
||||||||||
Transition tax on deemed repatriation of accumulated foreign income
|
530,000
|
$
|
0.03
|
-
|
$
|
-
|
||||||||||
Adjusted net income
|
$
|
35,607,000
|
$
|
1.82
|
$
|
45,546,000
|
$
|
2.35
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 5
|
Three Months Ended March 31,
|
||||||||||||||||
2018
|
2017
|
|||||||||||||||
$
|
Gross Margin
|
$
|
Gross Margin
|
|||||||||||||
GAAP gross profit
|
$
|
30,328,000
|
25.0
|
%
|
$
|
31,627,000
|
27.6
|
%
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Initial return and stock adjustment accruals related to new business
|
394,000
|
-
|
||||||||||||||
Customer allowances related to new business
|
2,327,000
|
512,000
|
||||||||||||||
Cost of goods sold
|
||||||||||||||||
New product line start-up and ramp-up costs, and transition expenses
|
1,028,000
|
1,317,000
|
||||||||||||||
Lower of cost or net realizable value revaluation - cores on customers’ shelves
|
2,828,000
|
2,300,000
|
||||||||||||||
Cost of customer allowances and stock adjustment accruals related to new business
|
(287,000
|
)
|
-
|
|||||||||||||
Total adjustments
|
6,290,000
|
4.6
|
%
|
4,129,000
|
3.5
|
%
|
||||||||||
Adjusted gross profit
|
$
|
36,618,000
|
29.6
|
%
|
$
|
35,756,000
|
31.1
|
%
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 6
|
Twelve Months Ended March 31,
|
||||||||||||||||
2018
|
2017
|
|||||||||||||||
$
|
Gross Margin
|
$
|
Gross Margin
|
|||||||||||||
GAAP gross profit
|
$
|
105,873,000
|
24.7
|
%
|
$
|
115,046,000
|
27.3
|
%
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Initial return and stock adjustment accruals related to new business
|
2,890,000
|
3,168,000
|
||||||||||||||
Customer allowances related to new business
|
5,569,000
|
9,559,000
|
||||||||||||||
Cost of goods sold
|
||||||||||||||||
New product line start-up and ramp-up costs, and transition expenses
|
1,831,000
|
1,457,000
|
||||||||||||||
Lower of cost or net realizable value revaluation - cores on customers’ shelves and inventory step-up amortization
|
9,360,000
|
5,788,000
|
||||||||||||||
Cost of customer allowances and stock adjustment accruals related to new business
|
(649,000
|
)
|
(568,000
|
)
|
||||||||||||
Total adjustments
|
19,001,000
|
3.9
|
%
|
19,404,000
|
3.7
|
%
|
||||||||||
Adjusted gross profit
|
$
|
124,874,000
|
28.6
|
%
|
$
|
134,450,000
|
31.0
|
%
|
Reconciliation of Non-GAAP Financial Measures
|
Exhibit 7
|
Three Months Ended March 31,
|
Twelve Months Ended March 31,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
GAAP net income
|
$
|
9,195,000
|
$
|
9,812,000
|
$
|
16,316,000
|
$
|
37,573,000
|
||||||||
Interest expense, net
|
4,656,000
|
3,729,000
|
15,445,000
|
13,094,000
|
||||||||||||
Income tax expense
|
1,764,000
|
3,846,000
|
17,863,000
|
17,305,000
|
||||||||||||
Depreciation and amortization
|
1,186,000
|
996,000
|
4,508,000
|
3,714,000
|
||||||||||||
EBITDA
|
$
|
16,801,000
|
$
|
18,383,000
|
$
|
54,132,000
|
$
|
71,686,000
|
||||||||
Adjustments:
|
||||||||||||||||
Net sales
|
||||||||||||||||
Initial return and stock adjustment accruals related to new business…
|
394,000
|
-
|
2,890,000
|
3,168,000
|
||||||||||||
Customer allowances related to new business
|
2,327,000
|
512,000
|
5,569,000
|
9,559,000
|
||||||||||||
Cost of goods sold
|
||||||||||||||||
New product line start-up and ramp-up costs, and transition expenses
|
1,028,000
|
1,317,000
|
1,831,000
|
1,457,000
|
||||||||||||
Lower of cost or net realizable value revaluation - cores on customers’ shelves and inventory step-up amortization
|
2,828,000
|
2,300,000
|
9,360,000
|
5,788,000
|
||||||||||||
Cost of customer allowances and stock adjustment accruals related to new business
|
(287,000
|
)
|
-
|
(649,000
|
)
|
(568,000
|
)
|
|||||||||
Operating expenses
|
||||||||||||||||
Legal, severance, acquisition, financing, transition and other costs
|
355,000
|
916,000
|
1,092,000
|
1,623,000
|
||||||||||||
Share-based compensation expenses
|
1,108,000
|
829,000
|
3,766,000
|
3,384,000
|
||||||||||||
Mark-to-market losses (gains)
|
(1,814,000
|
)
|
(1,030,000
|
)
|
(3,065,000
|
)
|
(4,623,000
|
)
|
||||||||
Adjusted EBITDA
|
$
|
22,740,000
|
$
|
23,227,000
|
$
|
74,926,000
|
$
|
91,474,000
|