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)
|
☐
|
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
|
Common Stock, par value $0.01 per share
|
MPAA
|
The Nasdaq Global Select Market
|
Item 2.02. |
Results of Operations and Financial Condition
|
Item 9.01. |
Financial Statements and Exhibits.
|
Exhibit No. | Description | ||
Press Release, dated August 10, 2020
|
MOTORCAR PARTS OF AMERICA, INC.
|
||
Date: August 10, 2020
|
/s/ David Lee
|
|
David Lee
|
||
Chief Financial Officer
|
NEWS RELEASE
|
|
CONTACT:
|
|
Gary S. Maier
|
|
(310) 972-5124
|
Motorcar Parts of America, Inc.
|
2-2-2
|
Motorcar Parts of America, Inc.
|
3-3-3
|
Motorcar Parts of America, Inc.
|
4-4-4
|
Three Months Ended
June 30,
|
||||||||
2020
|
2019
|
|||||||
Net sales
|
$
|
95,356,000
|
$
|
109,148,000
|
||||
Cost of goods sold
|
81,969,000
|
91,565,000
|
||||||
Gross profit
|
13,387,000
|
17,583,000
|
||||||
Operating expenses:
|
||||||||
General and administrative
|
6,870,000
|
12,000,000
|
||||||
Sales and marketing
|
4,200,000
|
4,919,000
|
||||||
Research and development
|
1,942,000
|
2,372,000
|
||||||
Total operating expenses
|
13,012,000
|
19,291,000
|
||||||
Operating income (loss)
|
375,000
|
(1,708,000
|
)
|
|||||
Interest expense, net
|
4,409,000
|
6,173,000
|
||||||
Loss before income tax benefit
|
(4,034,000
|
)
|
(7,881,000
|
)
|
||||
Income tax benefit
|
(1,022,000
|
)
|
(1,730,000
|
)
|
||||
Net loss
|
$
|
(3,012,000
|
)
|
$
|
(6,151,000
|
)
|
||
Basic net loss per share
|
$
|
(0.16
|
)
|
$
|
(0.33
|
)
|
||
Diluted net loss per share
|
$
|
(0.16
|
)
|
$
|
(0.33
|
)
|
||
Weighted average number of shares outstanding:
|
||||||||
Basic
|
18,976,178
|
18,822,178
|
||||||
Diluted
|
18,976,178
|
18,822,178
|
June 30, 2020
|
March 31, 2020
|
|||||||
ASSETS
|
(Unaudited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
27,464,000
|
$
|
49,616,000
|
||||
Short-term investments
|
1,061,000
|
850,000
|
||||||
Accounts receivable — net
|
66,138,000
|
91,748,000
|
||||||
Inventory
|
241,253,000
|
234,680,000
|
||||||
Contract assets
|
30,024,000
|
20,332,000
|
||||||
Prepaid expenses and other current assets
|
14,658,000
|
11,890,000
|
||||||
Total current assets
|
380,598,000
|
409,116,000
|
||||||
Plant and equipment — net
|
46,311,000
|
44,957,000
|
||||||
Operating lease assets
|
68,729,000
|
53,029,000
|
||||||
Long-term deferred income taxes
|
18,578,000
|
18,950,000
|
||||||
Long-term contract assets
|
234,735,000
|
239,540,000
|
||||||
Goodwill and intangible assets — net
|
9,373,000
|
9,598,000
|
||||||
Other assets
|
1,676,000
|
1,839,000
|
||||||
TOTAL ASSETS
|
$
|
760,000,000
|
$
|
777,029,000
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued liabilities
|
$
|
101,901,000
|
$
|
95,083,000
|
||||
Customer finished goods returns accrual
|
27,595,000
|
25,326,000
|
||||||
Contract liabilities
|
34,718,000
|
27,911,000
|
||||||
Revolving loan
|
112,000,000
|
152,000,000
|
||||||
Other current liabilities
|
7,047,000
|
9,390,000
|
||||||
Operating lease liabilities
|
6,249,000
|
5,104,000
|
||||||
Current portion of term loan
|
3,678,000
|
3,678,000
|
||||||
Total current liabilities
|
293,188,000
|
318,492,000
|
||||||
Term loan, less current portion
|
19,543,000
|
20,462,000
|
||||||
Long-term contract liabilities
|
90,125,000
|
92,101,000
|
||||||
Long-term deferred income taxes
|
73,000
|
79,000
|
||||||
Long-term operating lease liabilities
|
74,426,000
|
61,425,000
|
||||||
Other liabilities
|
10,544,000
|
8,950,000
|
||||||
Total liabilities
|
487,899,000
|
501,509,000
|
||||||
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;19,002,333 and 18,969,380 shares issued and outstanding at June 30, 2020 and March 31, 2020,
respectively
|
190,000
|
190,000
|
||||||
Additional paid-in capital
|
219,437,000
|
218,581,000
|
||||||
Retained earnings
|
61,105,000
|
64,117,000
|
||||||
Accumulated other comprehensive loss
|
(8,631,000
|
)
|
(7,368,000
|
)
|
||||
Total shareholders’ equity
|
272,101,000
|
275,520,000
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
760,000,000
|
$
|
777,029,000
|
Items Impacting Net Loss for the Three Months Ended June 30, 2020 and 2019
|
Exhibit 1
|
Three Months Ended June 30,
|
||||||||||||||||
2020
|
2019
|
|||||||||||||||
|
$ |
Per Share
|
|
$ |
Per Share
|
|||||||||||
GAAP net loss
|
$
|
(3,012,000
|
)
|
$
|
(0.16
|
)
|
$
|
(6,151,000
|
)
|
$
|
(0.33
|
)
|
||||
Items impacting net loss
|
||||||||||||||||
COVID-related expenses (a)
|
2,295,000
|
$
|
0.12
|
-
|
-
|
|||||||||||
Customer allowances, return accruals and changeover costs (b) related to new business, net of costs
|
307,000
|
0.02
|
212,000
|
0.01
|
||||||||||||
Core buy-back premium amortization
|
1,223,000
|
0.06
|
1,108,000
|
0.06
|
||||||||||||
Impact of tariff costs before being passed through to customers
|
-
|
-
|
1,067,000
|
0.06
|
||||||||||||
Loss in connection with a cancelled contract
|
-
|
-
|
426,000
|
0.02
|
||||||||||||
New product line start-up costs and transition expenses (c)
|
3,586,000
|
0.19
|
1,914,000
|
0.10
|
||||||||||||
Revaluation - cores on customers’ shelves
|
1,384,000
|
0.07
|
4,564,000
|
0.24
|
||||||||||||
Acquisition costs, earn-out accruals and severance
|
(7,000
|
)
|
(0.00
|
)
|
373,000
|
0.02
|
||||||||||
Share-based compensation expenses
|
1,043,000
|
0.05
|
988,000
|
0.05
|
||||||||||||
Mark-to-market gains
|
(4,817,000
|
)
|
(0.25
|
)
|
(537,000
|
)
|
(0.03
|
)
|
||||||||
Tax effect (d)
|
(1,254,000
|
)
|
(0.07
|
)
|
(2,529,000
|
)
|
(0.13
|
)
|
Items Impacting Gross Profit for the Three Months Ended June 30, 2020 and 2019
|
Exhibit 2
|
Three Months Ended June 30,
|
||||||||||||||||
2020
|
2019
|
|||||||||||||||
|
$ |
Gross Margin
|
|
$ |
Gross Margin
|
|||||||||||
GAAP gross profit
|
$
|
13,387,000
|
14.0
|
%
|
$
|
17,583,000
|
16.1
|
%
|
||||||||
Adjustments:
|
||||||||||||||||
New product line start-up costs and transition expenses
|
3,301,000
|
3.5
|
%
|
1,354,000
|
1.2
|
%
|
||||||||||
Revaluation - cores on customers’ shelves
|
1,384,000
|
1.5
|
%
|
4,564,000
|
4.2
|
%
|
||||||||||
Income related to under return of cores
|
(550,000
|
)
|
-0.6
|
%
|
(864,000
|
)
|
-0.8
|
%
|
||||||||
Total adjustments
|
4,135,000
|
4.3
|
%
|
5,054,000
|
4.6
|
%
|
||||||||||
Adjusted gross profit
|
$
|
17,522,000
|
18.4
|
%
|
$
|
22,637,000
|
20.7
|
%
|
||||||||
Other items not adjusted
|
||||||||||||||||
COVID-related expenses
|
1,840,000
|
1.9
|
%
|
-
|
-
|
|||||||||||
Customer allowances, return accruals and changeover costs related to new business, net of costs
|
307,000
|
0.3
|
%
|
100,000
|
0.1
|
%
|
||||||||||
Core buy-back premium amortization
|
1,223,000
|
1.3
|
%
|
1,108,000
|
1.0
|
%
|
||||||||||
Impact of tariff costs before being passed through to customers
|
-
|
-
|
1,067,000
|
1.0
|
%
|
|||||||||||
Loss in connection with a cancelled contract
|
-
|
-
|
426,000
|
0.4
|
%
|
Items Impacting EBITDA for the Three Months Ended June 30, 2020 and 2019
|
Exhibit 3 |
Three Months Ended June 30,
|
||||||||
2020
|
2019
|
|||||||
GAAP net loss
|
$
|
(3,012,000
|
)
|
$
|
(6,151,000
|
)
|
||
Interest expense, net
|
4,409,000
|
6,173,000
|
||||||
Income tax benefit
|
(1,022,000
|
)
|
(1,730,000
|
)
|
||||
Depreciation and amortization
|
2,551,000
|
2,379,000
|
||||||
EBITDA
|
$
|
2,926,000
|
$
|
671,000
|
||||
Items impacting EBITDA
|
||||||||
COVID-related expenses
|
2,295,000
|
-
|
||||||
Customer allowances, return accruals and changeover costs related to new business, net of costs
|
307,000
|
212,000
|
||||||
Core buy-back premium amortization
|
1,223,000
|
1,108,000
|
||||||
Impact of tariff costs before being passed through to customers
|
-
|
1,067,000
|
||||||
Loss in connection with a cancelled contract
|
-
|
426,000
|
||||||
New product line start-up costs and transition expenses (a)
|
3,496,000
|
1,850,000
|
||||||
Revaluation - cores on customers’ shelves
|
1,384,000
|
4,564,000
|
||||||
Acquisition costs, earn-out accruals and severance
|
(7,000
|
)
|
373,000
|
|||||
Share-based compensation expenses
|
1,043,000
|
988,000
|
||||||
Mark-to-market gains
|
(4,817,000
|
)
|
(537,000
|
)
|
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