QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading symbol(s)
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Name of each exchange on which registered
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Large accelerated filer ☐
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Non-accelerated filer ☐
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Smaller reporting company
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Emerging growth company
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PART I — FINANCIAL INFORMATION
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4
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4
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5
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6
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7
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8
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9
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21 | |
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27 |
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27 |
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PART II — OTHER INFORMATION
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29 |
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29 |
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29 |
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29 |
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30 | |
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32 |
Item 1. |
Financial Statements
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June 30, 2022
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March 31, 2022
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|||||||
ASSETS
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(Unaudited)
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|||||||
Current assets:
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||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Short-term investments
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||||||
Accounts receivable — net
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||||||
Inventory
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||||||
Contract assets
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||||||
Prepaid expenses and other current assets
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||||||
Total current assets
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||||||
Plant and equipment — net
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||||||
Operating lease assets
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||||||
Long-term deferred income taxes
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||||||
Long-term contract assets
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||||||
Goodwill and intangible assets — net
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||||||
Other assets
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||||||
TOTAL ASSETS
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$
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$
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||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
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||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued liabilities
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$
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$
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|
||||
Customer finished goods returns accrual
|
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||||||
Contract liabilities
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|
|
||||||
Revolving loan
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||||||
Other current liabilities
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||||||
Operating lease liabilities
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||||||
Current portion of term loan
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||||||
Total current liabilities
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||||||
Term loan, less current portion
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||||||
Long-term contract liabilities
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|
||||||
Long-term deferred income taxes
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|
||||||
Long-term operating lease liabilities
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|
||||||
Other liabilities
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|
||||||
Total liabilities
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|
||||||
Commitments and contingencies
|
||||||||
Shareholders’ equity:
|
||||||||
Preferred stock; par value $
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||||||
Series A junior participating preferred stock; par value $
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||||||
Common stock; par value $
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||||||
Additional paid-in capital
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|
||||||
Retained earnings
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|
||||||
Accumulated other comprehensive loss
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(
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)
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(
|
)
|
||||
Total shareholders’ equity
|
|
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
|
$
|
|
Three Months Ended
June 30,
|
||||||||
2022
|
2021
|
|||||||
Net sales
|
$
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|
$
|
|
||||
Cost of goods sold
|
|
|
||||||
Gross profit
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|
|
||||||
Operating expenses:
|
||||||||
General and administrative
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|
||||||
Sales and marketing
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|
||||||
Research and development
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||||||
Foreign exchange impact of lease liabilities and forward contracts
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(
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)
|
|||||
Total operating expenses
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|
||||||
Operating income
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|
||||||
Interest expense, net
|
|
|
||||||
Income before income tax expense
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|
||||||
Income tax expense
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|
||||||
Net (loss) income
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$
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(
|
)
|
$
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|
|||
Basic net (loss) income per share
|
$
|
(
|
)
|
$
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|
|||
Diluted net (loss) income per share
|
$
|
(
|
)
|
$
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|
|||
Weighted average number of shares outstanding:
|
||||||||
Basic
|
|
|
||||||
Diluted
|
|
|
Three Months Ended
June 30,
|
||||||||
2022
|
2021
|
|||||||
Net (loss) income
|
$
|
(
|
)
|
$
|
|
|||
Other comprehensive (loss) income, net of tax:
|
||||||||
Foreign currency translation (loss) gain
|
(
|
)
|
|
|||||
Total other comprehensive (loss) income, net of tax
|
(
|
)
|
|
|||||
Comprehensive (loss) income
|
$
|
(
|
)
|
$
|
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Common Stock
|
||||||||||||||||||||||||
Shares
|
Amount
|
Additional
Paid-in
Capital
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Retained
Earnings
|
Accumulated
Other
Comprehensive
(Loss) Income
|
Total
|
|||||||||||||||||||
Balance at March 31, 2022
|
|
$
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$
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$
|
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$
|
(
|
)
|
$
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|
||||||||||||
Compensation recognized under employee stock plans
|
-
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|
||||||||||||||||||
Exercise of stock options, net of shares withheld for employee taxes
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||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes
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|
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(
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)
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(
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)
|
||||||||||||||||
Foreign currency translation
|
-
|
|
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(
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)
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(
|
)
|
||||||||||||||||
Net loss
|
-
|
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(
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)
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(
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)
|
||||||||||||||||
Balance at June 30, 2022
|
|
$
|
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$
|
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$
|
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$
|
(
|
)
|
$
|
|
Common Stock
|
||||||||||||||||||||||||
Shares
|
Amount
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
(Loss) Income
|
Total
|
|||||||||||||||||||
Balance at March 31,2021
|
|
$
|
|
$
|
|
$
|
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$
|
(
|
)
|
$
|
|
||||||||||||
Compensation recognized under employee stock plans
|
-
|
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|
|
|
|
||||||||||||||||||
Exercise of stock options, net of shares withheld for employee taxes
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|
||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes
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|
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(
|
)
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(
|
)
|
||||||||||||||||
Foreign currency translation
|
-
|
|
|
|
|
|
||||||||||||||||||
Net income
|
-
|
|
|
|
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|
||||||||||||||||||
Balance at June 30, 2021
|
|
$
|
|
$
|
|
$
|
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$
|
(
|
)
|
$
|
|
Three Months
Ended
June 30,
|
||||||||
2022
|
2021
|
|||||||
Cash flows from operating activities:
|
||||||||
Net (loss) income
|
$
|
(
|
)
|
$
|
|
|||
Adjustments to reconcile net (loss) income to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
|
|
||||||
Amortization of interest
|
|
|
||||||
Amortization of core premiums paid to customers
|
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|
||||||
Amortization of finished goods premiums paid to customers
|
|
|
||||||
Noncash lease expense
|
|
|
||||||
Gain due to the change in the fair value of the contingent consideration
|
|
(
|
)
|
|||||
Foreign exchange impact of lease liabilities and forward contracts
|
|
(
|
)
|
|||||
Loss (gain) on short-term investments
|
|
(
|
)
|
|||||
Net provision for inventory reserves
|
|
|
||||||
Net provision for customer payment discrepancies and credit losses
|
|
|
||||||
Deferred income taxes
|
(
|
)
|
|
|||||
Share-based compensation expense
|
|
|
||||||
Loss on disposal of plant and equipment
|
|
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
|
|
||||||
Inventory
|
(
|
)
|
(
|
)
|
||||
Prepaid expenses and other current assets
|
|
|
||||||
Other assets
|
|
|
||||||
Accounts payable and accrued liabilities
|
|
(
|
)
|
|||||
Customer finished goods returns accrual
|
(
|
)
|
|
|||||
Contract assets, net
|
(
|
)
|
(
|
)
|
||||
Contract liabilities, net
|
|
|
||||||
Operating lease liabilities
|
(
|
)
|
(
|
)
|
||||
Other liabilities
|
(
|
)
|
(
|
)
|
||||
Net cash used in operating activities
|
(
|
)
|
(
|
)
|
||||
Cash flows from investing activities:
|
||||||||
Purchase of plant and equipment
|
(
|
)
|
(
|
)
|
||||
Purchase of short-term investments
|
(
|
)
|
(
|
)
|
||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Borrowings under revolving loan
|
|
|
||||||
Repayments of revolving loan
|
(
|
)
|
(
|
)
|
||||
Repayments of term loan
|
(
|
)
|
(
|
)
|
||||
Payments for debt issuance costs
|
(
|
)
|
(
|
)
|
||||
Payments on finance lease obligations
|
(
|
)
|
(
|
)
|
||||
Exercise of stock options
|
|
|
||||||
Cash used to net share settle equity awards
|
(
|
)
|
(
|
)
|
||||
Net cash (used in) provided by financing activities
|
(
|
)
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
(
|
)
|
|
|||||
Net (decrease) increase in cash and cash equivalents
|
(
|
)
|
|
|||||
Cash and cash equivalents — Beginning of period
|
|
|
||||||
Cash and cash equivalents — End of period
|
$
|
|
$
|
|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid for interest, net
|
$
|
|
$
|
|
||||
Cash paid for income taxes, net of refunds
|
|
|
||||||
Cash paid for operating leases
|
|
|
||||||
Cash paid for finance leases
|
|
|
||||||
Plant and equipment acquired under finance leases
|
|
|
||||||
Assets acquired under operating leases
|
|
|
||||||
Non-cash capital expenditures
|
|
|
|
June 30, 2022
|
March 31, 2022
|
||||||
Accounts receivable — trade
|
$
|
|
$
|
|
||||
Allowance for credit losses
|
(
|
)
|
(
|
)
|
||||
Customer payment discrepancies
|
(
|
)
|
(
|
)
|
||||
Customer returns RGA issued
|
(
|
)
|
(
|
)
|
||||
Total accounts receivable — net
|
$
|
|
$
|
|
Three Months
Ended
June 30,
|
||||||||
|
2022
|
2021
|
||||||
Balance at beginning of period
|
$
|
|
$
|
|
||||
Provision for expected credit losses
|
|
(
|
)
|
|||||
Recoveries
|
|
|
||||||
Amounts written off charged against the allowance
|
(
|
)
|
(
|
)
|
||||
Balance at end of period
|
$
|
|
$
|
|
|
June 30, 2022
|
March 31, 2022
|
||||||
Inventory
|
||||||||
Raw materials
|
$
|
|
$
|
|
||||
Work-in-process
|
|
|
||||||
Finished goods
|
|
|
||||||
|
|
|
||||||
Less allowance for excess and obsolete inventory
|
(
|
)
|
(
|
)
|
||||
Inventory — net
|
|
|
||||||
Inventory unreturned
|
|
|
||||||
Total inventory
|
$
|
|
$
|
|
|
June 30, 2022
|
March 31, 2022
|
||||||
Short-term contract assets
|
||||||||
Cores expected to be returned by customers
|
$
|
|
$
|
|
||||
Upfront payments to customers
|
|
|
||||||
Finished goods premiums paid to customers
|
|
|
||||||
Core premiums paid to customers
|
|
|
||||||
Total short-term contract assets
|
$
|
|
$
|
|
||||
Remanufactured cores held at customers’ locations
|
$
|
|
$
|
|
||||
Upfront payments to customers
|
|
|
||||||
Finished goods premiums paid to customers
|
|
|
||||||
Core premiums paid to customers
|
|
|
||||||
Long-term core inventory deposits
|
|
|
||||||
Total long-term contract assets
|
$
|
|
$
|
|
|
Three Months Ended
June 30,
|
|||||||
|
2022
|
2021
|
||||||
Net sales
|
||||||||
Customer A
|
|
%
|
|
%
|
||||
Customer B
|
|
%
|
|
%
|
||||
Customer C
|
|
%
|
|
%
|
|
June 30, 2022
|
March 31,2022
|
||||||
Accounts receivable - trade
|
||||||||
Customer A
|
|
%
|
|
%
|
||||
Customer B
|
|
%
|
|
%
|
||||
Customer C
|
|
%
|
|
%
|
|
Three Months Ended
June 30,
|
|||||||
|
2022
|
2021
|
||||||
Product line
|
||||||||
Rotating electrical products
|
|
%
|
|
%
|
||||
Wheel hub products
|
|
%
|
|
%
|
||||
Brake-related products
|
|
%
|
|
%
|
||||
Other products
|
|
%
|
|
%
|
||||
|
|
%
|
|
%
|
|
June 30, 2022
|
March 31, 2022
|
||||||
Principal amount of Term Loans
|
$
|
|
$
|
|
||||
Unamortized financing fees
|
(
|
)
|
(
|
)
|
||||
Net carrying amount of Term Loans
|
|
|
||||||
Less current portion of Term Loans
|
(
|
)
|
(
|
)
|
||||
Long-term portion of Term Loans
|
$
|
|
$
|
|
Year Ending March 31,
|
||||
2023
- remaining nine months
|
$
|
|
||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
Total payments
|
$
|
|
|
June 30, 2022
|
March 31, 2022
|
||||||
Short-term contract liabilities
|
||||||||
Customer core returns accruals
|
$
|
|
$
|
|
||||
Customer allowances earned
|
|
|
||||||
Customer deposits
|
|
|
||||||
Finished goods liabilities
|
|
|
||||||
Core bank liability
|
|
|
||||||
Accrued core payment
|
|
|
||||||
Total short-term contract liabilities
|
$
|
|
$
|
|
||||
|
||||||||
Long-term contract liabilities
|
||||||||
Customer core returns accruals
|
$
|
|
$
|
|
||||
Customer allowances earned
|
|
|
||||||
Finished goods liabilities
|
|
|
||||||
Core bank liability
|
|
|
||||||
Accrued core payment
|
|
|
||||||
Total long-term contract liabilities
|
$
|
|
$
|
|
Leases
|
Classification
|
June 30, 2022
|
March 31, 2022
|
|||||||
Assets:
|
|
|||||||||
Operating
|
|
$
|
|
$
|
|
|||||
Finance
|
|
|
|
|||||||
Total leased assets
|
|
$
|
|
$
|
|
|||||
|
|
|||||||||
Liabilities:
|
|
|||||||||
Current
|
|
|||||||||
Operating
|
|
$
|
|
$
|
|
|||||
Finance
|
|
|
|
|||||||
Long-term
|
|
|||||||||
Operating
|
|
|
|
|||||||
Finance
|
|
|
|
|||||||
Total lease liabilities
|
|
$
|
|
$
|
|
|
Three Months Ended
June 30,
|
|||||||
|
2022
|
2021
|
||||||
Lease cost
|
||||||||
Operating lease cost
|
$
|
|
$
|
|
||||
Short-term lease cost
|
|
|
||||||
Variable lease cost
|
|
|
||||||
Finance lease cost:
|
||||||||
Amortization of finance lease assets
|
|
|
||||||
Interest on finance lease liabilities
|
|
|
||||||
Total lease cost
|
$
|
|
$
|
|
Maturity of lease liabilities
|
Operating Leases
|
Finance Leases
|
Total
|
|||||||||
2023
- remaining nine months
|
$
|
|
$
|
|
$
|
|
||||||
2024
|
|
|
|
|||||||||
2025
|
|
|
|
|||||||||
2026
|
|
|
|
|||||||||
2027
|
|
|
|
|||||||||
Thereafter
|
|
|
|
|||||||||
Total lease payments
|
|
|
|
|||||||||
Less amount representing interest
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Present value of lease liabilities
|
$
|
|
$
|
|
$
|
|
|
June 30, 2022
|
March 31, 2022
|
||||||
Lease term and discount rate
|
||||||||
Weighted-average remaining lease term (years):
|
||||||||
Finance leases
|
|
|
||||||
Operating leases
|
|
|
||||||
Weighted-average discount rate:
|
||||||||
Finance leases
|
|
%
|
|
%
|
||||
Operating leases
|
|
%
|
|
%
|
|
Three Months
Ended
June 30,
|
|||||||
|
2022
|
2021
|
||||||
Receivables discounted
|
$
|
|
$
|
|
||||
Weighted average days
|
|
|
||||||
Annualized weighted average discount rate
|
|
%
|
|
%
|
||||
Amount of discount recognized as interest expense
|
$
|
|
$
|
|
|
Three Months Ended
June 30,
|
|||||||
|
2022
|
2021
|
||||||
Net (loss) income
|
$
|
(
|
)
|
$
|
|
|||
Basic shares
|
|
|
||||||
Effect of potentially dilutive securities
|
|
|
||||||
Diluted shares
|
|
|
||||||
Net (loss) income per share:
|
||||||||
Basic net (loss) income per share
|
$
|
(
|
)
|
$
|
|
|||
Diluted net (loss) income per share
|
$
|
(
|
)
|
$
|
|
Loss Recognized as Foreign Exchange Impact of Lease Liabilities and Forward Contracts
|
||||||||
Three Months Ended
|
||||||||
Derivatives Not Designated as
|
June 30,
|
|||||||
Hedging Instruments
|
2022
|
2021
|
||||||
Forward foreign currency exchange contracts
|
$
|
(
|
)
|
$
|
(
|
)
|
June 30, 2022
|
March 31, 2022
|
|||||||||||||||||||||||||||||||
Fair Value Measurements
Using Inputs Considered as
|
Fair Value Measurements
Using Inputs Considered as
|
|||||||||||||||||||||||||||||||
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||
Short-term investments
|
||||||||||||||||||||||||||||||||
Mutual funds
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Prepaid expenses and other current assets
|
||||||||||||||||||||||||||||||||
Forward foreign currency exchange contracts
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||||||||||
Other current liabilities
|
||||||||||||||||||||||||||||||||
Deferred compensation
|
|
|
|
|
|
|
|
|
|
Number of
Shares
|
Weighted Average
Exercise Price
|
||||||
Outstanding at March 31, 2022
|
|
$
|
|
|||||
Granted
|
|
$
|
|
|||||
Exercised
|
(
|
)
|
$
|
|
||||
Forfeited/Cancelled
|
(
|
)
|
$
|
|
||||
Expired | ( |
) | $ | |||||
Outstanding at June 30, 2022
|
|
$
|
|
|
Number of
Shares
|
Weighted Average
Grant Date Fair
Value
|
||||||
Outstanding at March 31, 2022
|
|
$
|
|
|||||
Granted
|
|
$
|
|
|||||
Vested
|
(
|
)
|
$
|
|
||||
Forfeited/Cancelled
|
(
|
)
|
$
|
|
||||
Outstanding at June 30, 2022
|
|
$
|
|
Three Months Ended
June 30, |
||||||||
2022
|
2021
|
|||||||
Risk free interest rate
|
|
%
|
|
%
|
||||
Expected life in years
|
||||||||
Expected volatility of MPA common stock
|
|
%
|
|
%
|
||||
Expected average volatility of peer companies
|
|
%
|
|
%
|
||||
Average correlation coefficient of peer companies
|
|
%
|
|
%
|
||||
Expected dividend yield
|
|
|
||||||
Grant date fair value
|
$
|
|
$
|
|
|
Number of
Shares
|
Weighted Average
Grant Date Fair
Value
|
||||||
Outstanding at March 31, 2022
|
|
$
|
|
|||||
Granted
|
|
$
|
|
|||||
Vested
|
|
$
|
|
|||||
Forfeited
|
|
$
|
|
|||||
Outstanding at June 30, 2022
|
|
$
|
|
|
Three Months Ended
June 30,
|
|||||||
|
2022
|
2021
|
||||||
Balance at beginning of period
|
$
|
|
$
|
|
||||
Charged to expense
|
|
|
||||||
Amounts processed
|
(
|
)
|
(
|
)
|
||||
Balance at end of period
|
$
|
|
$
|
|
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Three Months Ended
June 30,
|
||||||||
2022
|
2021
|
|||||||
Cash flow used in operations
|
$
|
(982,000
|
)
|
$
|
(4,739,000
|
)
|
||
Finished goods turnover (annualized) (1)
|
3.1
|
4.5
|
(1) |
Annualized finished goods turnover for the fiscal quarter is calculated by multiplying cost of goods sold for the quarter by 4 and dividing the result by the average between beginning and ending non-core finished goods inventory values
for the fiscal quarter. We believe this provides a useful measure of our ability to turn our inventory into revenues. The first quarter of fiscal 2023 reflects our investment in inventory to address disruptions related to the worldwide
supply chain and logistics challenges to meet higher anticipated future sales.
|
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
|
||||||
Gross profit percentage
|
18.5
|
%
|
15.8
|
%
|
Three Months Ended
June 30,
|
||||||||
2022
|
2021
|
|||||||
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
|
)
|
|||||
Percent of net sales
|
||||||||
General and administrative
|
8.3
|
%
|
8.4
|
%
|
||||
Sales and marketing
|
3.4
|
%
|
3.6
|
%
|
||||
Research and development
|
1.9
|
%
|
1.7
|
%
|
||||
Foreign exchange impact of lease liabilities and forward contracts
|
0.4
|
%
|
(1.7
|
)%
|
Three Months Ended
June 30,
|
||||||||
2022
|
2021
|
|||||||
Cash flows (used in) provided by:
|
||||||||
Operating activities
|
$
|
(982,000
|
)
|
$
|
(4,739,000
|
)
|
||
Investing activities
|
(1,461,000
|
)
|
(2,089,000
|
)
|
||||
Financing activities
|
(11,266,000
|
)
|
16,094,000
|
|||||
Effect of exchange rates on cash and cash equivalents
|
(90,000
|
)
|
94,000
|
|||||
Net (decrease) increase in cash and cash equivalents
|
$
|
(13,799,000
|
)
|
$
|
9,360,000
|
|||
Additional selected cash flow data:
|
||||||||
Depreciation and amortization
|
$
|
3,124,000
|
$
|
3,145,000
|
||||
Capital expenditures
|
1,375,000
|
1,922,000
|
Financial covenants
required under the
Credit Facility
|
Calculation as of
June 30, 2022
|
|||||||
Maximum senior leverage ratio
|
3.00
|
2.53
|
||||||
Minimum fixed charge coverage ratio
|
1.15
|
1.26
|
Three Months Ended
June 30,
|
||||||||
2022
|
2021
|
|||||||
Receivables discounted
|
$
|
142,624,000
|
$
|
146,669,000
|
||||
Weighted average days
|
327
|
329
|
||||||
Annualized weighted average discount rate
|
3.7
|
%
|
1.8
|
%
|
||||
Amount of discount recognized as interest expense
|
$
|
4,874,000
|
$
|
2,473,000
|
Item 1. |
Legal Proceedings
|
Item 1A. |
Risk Factors
|
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds
|
Periods
|
Total Number of
Shares Purchased
|
Average Price
Paid Per Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
|
Approximate
Dollar Value of
Shares That May
Yet Be Purchased
Under the Plans
or Programs (1)
|
||||||||||||
April 1 - April 30, 2022:
|
||||||||||||||||
Open market and privately negotiated purchases
|
-
|
$
|
-
|
-
|
$
|
18,255,000
|
||||||||||
May 1 - May 31, 2022:
|
||||||||||||||||
Open market and privately negotiated purchases
|
-
|
$
|
-
|
-
|
18,255,000
|
|||||||||||
June 1 - June 30, 2022:
|
||||||||||||||||
Open market and privately negotiated purchases
|
-
|
$
|
-
|
-
|
18,255,000
|
|||||||||||
Total
|
0
|
0
|
$
|
18,255,000
|
(1) |
As of June 30, 2022, $18,745,000 was utilized and $18,255,000 remains available to repurchase shares under the authorized share repurchase program, subject to the limit in our Credit Facility. We retired the 837,007 shares repurchased
under this program through June 30, 2022. Our share repurchase program does not obligate us to acquire any specific number of shares and shares may be repurchased in privately negotiated and/or open market transactions.
|
Item 6. |
Exhibits
|
(a) |
Exhibits:
|
Number
|
Description of Exhibit
|
Method of Filing
|
||
3.1
|
Certificate of Incorporation of the Company
|
Incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form SB-2 declared effective on March 22, 1994 (the “1994 Registration Statement”).
|
||
3.2
|
Amendment to Certificate of Incorporation of the Company
|
Incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form S-1 (No. 33-97498) declared effective on November 14, 1995.
|
||
3.3
|
Amendment to Certificate of Incorporation of the Company
|
|||
3.4
|
Amendment to Certificate of Incorporation of the Company
|
|||
3.5
|
Amendment to Certificate of Incorporation of the Company
|
|||
3.6
|
Amended and Restated By-Laws of Motorcar Parts of America, Inc.
|
|||
3.7
|
Certificate of Amendment of the Certificate of Incorporation of the Company
|
|||
3.8
|
Amendment to the Amended and Restated By-Laws of Motorcar Parts of America, Inc., as adopted on June 9, 2016
|
|
||
3.9
|
Amendment to the Amended and Restated By-Laws of the Company
|
|||
3.10
|
Third Amendment to the Amended and Restated By-Laws of Motorcar Parts of America, Inc., as adopted on January 26, 2022
|
|||
4.1 |
Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934
|
Filed herewith.
|
||
4.2
|
2004 Non-Employee Director Stock Option Plan
|
|||
4.3
|
2010 Incentive Award Plan
|
|||
4.4
|
Amended and Restated 2010 Incentive Award Plan
|
Number
|
Description of Exhibit
|
Method of Filing
|
||
4.5
|
Second Amended and Restated 2010 Incentive Award Plan
|
|||
4.6
|
2014 Non-Employee Director Incentive Award Plan
|
|||
4.7
|
Third Amended and Restated 2010 Incentive Award Plan
|
|||
4.8
|
Fourth Amended and Restated 2010 Incentive Award Plan
|
|||
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002
|
Filed herewith.
|
|||
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002
|
Filed herewith.
|
|||
Certification of Chief Accounting Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002
|
Filed herewith.
|
|||
Certifications of Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer pursuant to Section 906 of the Sarbanes Oxley Act of 2002
|
Filed herewith.
|
|||
101.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the inline XBRL document).
|
|||
101.SCM
|
Inline XBRL Taxonomy Extension Schema Document
|
|||
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
|||
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
|||
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
|||
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
|||
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
MOTORCAR PARTS OF AMERICA, INC. | ||
Dated: August 9, 2022 | By: | /s/ David Lee |
David Lee | ||
Chief Financial Officer | ||
Dated: August 9, 2022
|
By: | /s/ Kamlesh Shah |
Kamlesh Shah | ||
Chief Accounting Officer |
• |
our Board of Directors approved the business combination or the transaction in which the person became an interested shareholder prior to the date the person attained this status;
|
• |
the holders of a majority of our outstanding voting stock not beneficially owned by such interested shareholder approved such business combination at a meeting called for such
purpose no earlier than five years after such interested shareholder attained his status; or
|
• |
the business combination meets certain valuation requirements.
|
• |
any merger or consolidation involving us and the interested shareholder;
|
• |
any sale, lease, exchange, mortgage, pledge, transfer or other disposition to the interested shareholder of 10% or more of our assets;
|
• |
the issuance or transfer by us of 5% or more of our outstanding stock to the interested shareholder, subject to certain exceptions;
|
• |
the adoption of any plan or proposal for our liquidation or dissolution pursuant to any agreement with the interested shareholder;
|
• |
any transaction involving us that has the effect of increasing the proportionate share of our stock owned by the interested shareholder; and
|
• |
the receipt by the interested shareholder of the benefit of any loans, advances, guarantees, pledges, or other financial benefits provided by or through us.
|
• |
the approval of holders of a majority of the shares entitled to vote at an election of directors will be required to amend, alter or repeal our By-Laws;
|
• |
our Board of Directors is expressly authorized to adopt, alter, amend or repeal our By-Laws;
|
• |
in general, shareholders may not call special meetings of the shareholders or fill vacancies on our Board of Directors;
|
• |
directors may be removed, with, by the holders of at least a majority of the outstanding shares of capital stock of the Company entitled to vote at an election of directors; and
|
• |
we will indemnify officers and directors against losses that may be incurred by investigations and legal proceedings resulting from their services to us, which may include services
in connection with takeover defense measures.
|
Date: August 9, 2022 | /s/ Selwyn Joffe |
Selwyn Joffe | |
Chief Executive Officer |
Date: August 9, 2022 | /s/ David Lee |
David Lee | |
Chief Financial Officer |
Date: August 9, 2022 | /s/ Kamlesh Shah |
Kamlesh Shah | |
Chief Accounting Officer |
1. |
The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and
|
2. |
The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Selwyn Joffe | |
Selwyn Joffe | |
Chief Executive Officer | |
August 9, 2022 |
1. |
The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and
|
2. |
The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ David Lee |
|
David Lee | |
Chief Financial Officer | |
August 9, 2022 |
1. |
The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and
|
2. |
The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Kamlesh Shah | |
Kamlesh Shah | |
Chief Accounting Officer | |
August 9, 2022 |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2022 |
Mar. 31, 2022 |
---|---|---|
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 19,214,978 | 19,104,751 |
Common stock, outstanding (in shares) | 19,214,978 | 19,104,751 |
Series A Junior Participating Preferred Stock [Member] | ||
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 20,000 | 20,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) |
3 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Condensed Consolidated Statements of Comprehensive (Loss) Income [Abstract] | ||
Net (loss) income | $ (175,000) | $ 861,000 |
Other comprehensive (loss) income, net of tax: | ||
Foreign currency translation (loss) gain | (868,000) | 1,833,000 |
Total other comprehensive (loss) income, net of tax | (868,000) | 1,833,000 |
Comprehensive (loss) income | $ (1,043,000) | $ 2,694,000 |
Company Background and Organization |
3 Months Ended |
---|---|
Jun. 30, 2022 | |
Company Background and Organization [Abstract] | |
Company Background and Organization |
1. Company Background and Organization
Motorcar Parts of America, Inc. and its subsidiaries (the “Company”, or “MPA”) is a leading supplier of automotive aftermarket non-discretionary replacement
parts, and test solutions and diagnostic equipment. These replacement parts are primarily sold to automotive retail chain stores and warehouse distributors throughout North America and to major automobile manufacturers for both their aftermarket
programs and warranty replacement programs (“OES”). The Company’s test solutions and diagnostic equipment primarily serves the global automotive component and powertrain testing market. The Company’s products include (i) rotating electrical products
such as alternators and starters, (ii) wheel hub assemblies and bearings, (iii) brake-related products, which include brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders, and (iv) other products, which include (a)
turbochargers and (b) test solutions and diagnostic equipment used for electric vehicle powertrain development and manufacturing including electric motor test systems, e-axle test systems, advanced power emulators, charging unit test systems, test
systems for alternators and starters, belt starter generators, bench-top testers, and specialized test services for electric vehicle inverters.
Pursuant to the guidance provided under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) for segment reporting, the
Company has identified its chief operating decision maker (“CODM”), reviewed the documents used by the CODM, and understands how such documents are used by the CODM to make financial and operating decisions. The Company has determined through this
review process that its business comprises three separate operating segments. The operating segments meet all the criteria to be
aggregated and are presented as such.
Impact of the Novel Coronavirus (“COVID-19”)
The outbreak of the COVID-19 pandemic continues to adversely impact the U.S. and global economies – creating uncertainty regarding the potential effects on
the Company’s employees, supply chain, operations, and customer demand. The COVID-19 pandemic could impact the Company’s operations and the operations of its customers, suppliers, and vendors because of quarantines, facility closures, travel, and
logistics restrictions. The extent to which the COVID-19 pandemic impacts the Company will depend on numerous factors and future developments, which are highly uncertain and cannot be predicted, including, but not limited to: (i) the severity of the
virus, (ii) the occurrence and duration of additional spikes in infections, (iii) the effects of the pandemic on customers, suppliers, and vendors, (iv) the remedial actions and stimulus measures adopted by local, state and federal governments, (v)
the availability and acceptance of vaccines, and (vi) the extent to which normal economic and operating conditions can resume. Even after the COVID-19 pandemic has subsided, the Company may continue to experience adverse impacts to its business
because of an economic recession or depression that has occurred or may occur in the future.
|
Basis of Presentation and New Accounting Pronouncements |
3 Months Ended |
---|---|
Jun. 30, 2022 | |
Basis of Presentation and New Accounting Pronouncements [Abstract] | |
Basis of Presentation and New Accounting Pronouncements |
2. Basis of Presentation and New Accounting Pronouncements
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles
(“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended June 30, 2022 are not necessarily indicative of the results that may be expected for
the fiscal year ending March 31, 2023. This report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2022, which are included in the Company’s Annual
Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on June 14, 2022.
The accompanying condensed consolidated financial statements have been prepared
on a consistent basis with, and there have been no material changes to the accounting policies described in Note 2, Summary of Significant Accounting Policies, to
the consolidated financial statements that are presented in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022.
|
Accounts Receivable - Net |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable - Net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable - Net |
3. Accounts Receivable — Net
The Company has trade accounts receivable that result from the sale of goods and services. Accounts receivable — net includes offset accounts related to
allowances for credit losses, customer payment discrepancies, and returned goods authorizations (“RGAs”) issued for in-transit unit returns. The Company believes its credit risk with respect to trade accounts receivable is limited due to its credit
evaluation process and the long-term nature of its relationships with its largest customers. The Company utilizes a historical loss rate method, adjusted for any changes in economic conditions or risk characteristics, to estimate its expected credit
losses each period. When developing an estimate of expected credit losses, the Company considers all available relevant information regarding the collectability of cash flows, including historical information, current conditions, and reasonable and
supportable forecasts of future economic conditions over the contractual life of the receivable. The historical loss rate method considers past write-offs of trade accounts receivable over a period commensurate with the initial term of the Company’s
contracts with its customers. The Company recognizes the allowance for credit losses at inception and reassesses quarterly based on management’s expectation of the asset’s collectability. The Company’s accounts receivable are short-term in nature and
written off only when all collection attempts have failed. The Company uses receivable discount programs with certain customers and their respective banks (see Note 10).
Accounts receivable — net is comprised of the following:
The following table provides a roll-forward of the allowance for credit losses that is deducted from accounts receivable to present the net amount expected to
be collected.
|
Inventory |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Inventory [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory |
4. Inventory
Inventory is comprised of the following:
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Contract Assets |
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Contract Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Assets |
5. Contract Assets
During the three months ended June 30, 2022 and 2021, the Company reduced the
carrying value of Remanufactured Cores held at customers’ locations by $572,000 and $984,000,
respectively.
Contract assets are comprised of the following:
|
Significant Customer and Other Information |
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Significant Customer and Other Information [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Customer and Other Information |
6. Significant Customer and Other Information
Significant Customer Concentrations
The largest customers accounted for the following percentage of net sales:
The largest customers accounted for the following percentage of accounts receivable – trade:
Geographic and Product Information
The Company’s products are sold predominantly in the U.S. and accounted for the following percentages of net sales:
Significant Supplier Concentrations
The Company had no suppliers that accounted for more than 10% of inventory purchases for the three months ended June 30, 2022 and 2021, respectively.
|
Debt |
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt |
7. Debt
The Company is party to a $268,620,000 senior
secured financing, (as amended from time to time, the “Credit Facility”) with a syndicate of lenders and PNC Bank, National Association, as administrative agent, consisting of (i) a $238,620,000 revolving loan facility, subject to borrowing base restrictions, a $24,000,000
sublimit for borrowings by Canadian borrowers, and a $20,000,000 sublimit for letters of credit (the “Revolving Facility”) and (ii) a $30,000,000 term loan facility (the “Term Loans”). The loans under the Credit Facility mature on May 28, 2026. The Credit Facility currently permits the payment of up to $29,043,000
of dividends and share repurchases for fiscal year 2023, subject to pro forma compliance with financial covenants. In connection with the Credit Facility, the lenders have a security interest in substantially all of the assets of the Company.
The Term Loans require quarterly principal payments of $937,500.
The Credit Facility bears interest at rates equal to either LIBOR plus a margin of 2.25%, 2.50% or 2.75% or a reference rate plus a margin of 1.25%, 1.50% or 1.75%, in each case depending on the senior leverage ratio as of the applicable measurement date. There is also a facility fee of 0.375% to 0.50%, depending on the senior
leverage ratio as of the applicable measurement date. The interest rate on the Company’s Term Loans and Revolving Facility was 3.82% and 4.20% respectively, at June 30, 2022, and 2.99% and 3.13% respectively, at March 31, 2022.
The Credit Facility, among other things, requires the Company to maintain certain financial covenants including a maximum senior leverage ratio and a minimum
fixed charge coverage ratio. The Company was in compliance with all financial covenants at June 30, 2022.
In addition to other covenants, the Credit Facility places limits on the Company’s
ability to incur liens, incur additional indebtedness, make loans and investments, engage in mergers and acquisitions, engage in asset sales, redeem, or repurchase capital stock, alter the business conducted by the Company and its subsidiaries,
transact with affiliates, prepay, redeem, or purchase subordinated debt, and amend or otherwise alter debt agreements.
The following summarizes information about the Term Loans:
Future repayments of the Term Loans are as follows:
The Company had $146,000,000 and $155,000,000 outstanding under the Revolving Facility at June 30, 2022 and March 31, 2022, respectively. In addition, $6,370,000 was outstanding for letters of credit at June
30, 2022. At June 30, 2022, after certain contractual adjustments, $86,250,000 was available under the Revolving Facility.
|
Contract Liabilities |
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Contract Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Liabilities |
8. Contract Liabilities
Contract liabilities are comprised of the following:
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases |
9. Leases
The Company leases various facilities in North America and Asia under operating
leases expiring through August 2033. The Company has material nonfunctional currency leases that could have a material impact on the Company’s condensed
consolidated statements of operations. As required for other monetary liabilities, lessees remeasure foreign currency-denominated lease liabilities using the exchange rate at each reporting date, but the lease assets are nonmonetary assets measured
at historical rates and are not affected by subsequent changes in the exchange rates.
In connection with the remeasurement of these leases, the Company recorded gains
of $20,000 and $2,795,000 during the three months ended June 30, 2022 and 2021, respectively. These amounts are included in “foreign exchange impact of lease liabilities and forward contracts” in the condensed consolidated statements of operations.
Balance sheet information for leases is as follows:
Lease cost recognized in the condensed consolidated statements of operations is as follows:
Maturities of lease commitments at June 30, 2022
by fiscal year were as follows:
Other information about leases is as follows:
|
Accounts Receivable Discount Programs |
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable Discount Programs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable Discount Programs |
10. Accounts Receivable Discount Programs
The Company uses receivable discount programs with certain customers and their respective banks. Under these programs, the Company may sell those customers’
receivables to those banks at a discount to be agreed upon at the time the receivables are sold. These discount arrangements allow the Company to accelerate receipt of payment on customers’ receivables.
The following is a summary of accounts receivable discount programs:
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Net (Loss) Income per Share |
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Net (Loss) Income per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income per Share |
11. Net (Loss) Income per Share
Basic net (loss) income per share is computed by dividing net (loss) income by the weighted average number of shares of common stock outstanding during
the period. Diluted net (loss) income per share includes the effect, if any, from the potential exercise or conversion of securities, such as stock options, which
would result in the issuance of incremental shares of common stock to the extent such impact is not anti-dilutive.
The following presents a reconciliation of basic and diluted net (loss) income per share:
Potential common shares that would have the effect of increasing diluted net
income per share or decreasing diluted net loss per share are considered to be anti-dilutive and as such, these shares are not included in calculating diluted net (loss) income per share. For the three months ended June 30, 2022 and 2021, there were 2,301,901 and 634,832, respectively, of potential common shares not included in the
calculation of diluted net (loss) income per share because their effect was anti-dilutive.
|
Income Taxes |
3 Months Ended |
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Jun. 30, 2022 | |
Income Taxes [Abstract] | |
Income Taxes |
12. Income Taxes
The Company recorded income tax expense of $589,000,
or an effective tax rate of 142.3%, and $947,000,
or an effective tax rate of 52.4%, for the three months ended June 30, 2022 and 2021, respectively. Effective tax rates are based on
current annual projections and any changes in future periods could result in an effective tax rate that is materially different from the current estimate. The effective tax rate for the three months ended June 30, 2022, was primarily impacted by
(i) specific jurisdictions that the Company does not expect to recognize the benefit of losses, (ii) foreign income taxed at rates that are different from the federal statutory rate, and (iii) non-deductible executive compensation under Internal
Revenue Code Section 162(m).
The Company and its subsidiaries file income tax returns in the U.S. federal, various state, and foreign jurisdictions with varying statutes of limitations.
At June 30, 2022, the Company is not under examination in any jurisdiction, and remain subject to examination from the years ended March 31, 2017. The Company believes no significant changes in the unrecognized tax benefits will occur within the next
12 months.
|
Financial Risk Management and Derivatives |
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Financial Risk Management and Derivatives [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Financial Risk Management and Derivatives |
13. Financial Risk Management and Derivatives
Purchases and expenses denominated in currencies other than the U.S. dollar, which are primarily related to the Company’s overseas facilities, expose the
Company to market risk from material movements in foreign exchange rates between the U.S. dollar and the foreign currencies. The Company’s primary risk exposure is from fluctuations in the value of the Mexican peso and to a lesser extent the Chinese
yuan. To mitigate these risks, the Company enters into forward foreign currency exchange contracts to exchange U.S. dollars for these foreign currencies. The extent to which forward foreign currency exchange contracts are used, is modified
periodically in response to the Company’s estimate of market conditions and the terms and length of anticipated requirements.
The Company enters into forward foreign currency exchange contracts in order to reduce the impact of foreign currency fluctuations and not to engage in
currency speculation. The use of derivative financial instruments allows the Company to reduce its exposure to the risk that the eventual cash outflow resulting from funding the expenses of the foreign operations will be materially affected by
changes in exchange rates between the U.S. dollar and the foreign currencies. The Company does not hold or issue financial instruments for trading purposes. The Company designates forward foreign currency exchange contracts for forecasted expenditure
requirements to fund foreign operations.
The Company had forward foreign currency exchange contracts with a U.S. dollar
equivalent notional value of $46,450,000 and $44,968,000 at June 30, 2022 and March 31, 2022, respectively. These contracts generally have a term of one year or less, at rates agreed at the inception of the contracts. The counterparty to this derivative transaction is a major financial institution with investment grade credit
rating; however, the Company is exposed to credit risk with this institution. The credit risk is limited to the potential unrealized gains (which offset currency fluctuations adverse to the Company) in any such contract should this counterparty
fail to perform as contracted. Any changes in the fair values of forward foreign currency exchange contracts are included in “foreign exchange impact of lease liabilities and forward contracts” in the condensed consolidated statements of
operations.
The following shows the effect of derivative instruments on the condensed consolidated statements of operations:
The fair value of the forward foreign currency exchange contracts of $415,000 and $1,113,000 is included in
prepaid expenses and other current assets in the condensed consolidated balance sheets at June 30, 2022 and March 31, 2022, respectively. The changes in the fair values of forward foreign currency exchange contracts are included in “foreign
exchange impact of lease liabilities and forward contracts” in the condensed consolidated statements of cash flows for the three months ended June 30, 2022 and 2021.
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Fair Value Measurements |
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Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
14. Fair Value Measurements
The following summarizes financial assets and liabilities measured at fair value, by level within the fair value hierarchy:
Short-term Investments and Deferred Compensation
The Company’s short-term investments,
which fund its deferred compensation liabilities, consist of investments in mutual funds. These investments are classified as Level 1 as the shares of these mutual funds trade with sufficient frequency and volume to enable the Company to obtain pricing information on an ongoing basis.
Forward Foreign Currency Exchange Contracts
The forward foreign currency exchange
contracts are primarily measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers (See Note 13).
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities
approximate their fair value due to the short-term nature of these instruments. The carrying amounts of the revolving loan, term loan and other long-term liabilities approximate their fair value based on the variable nature of interest rates and
current rates for instruments with similar characteristics.
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Share-based Payments |
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Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payments |
15. Share-based Payments
Stock Options
During the three months ended June 30, 2022 and 2021, no
options to purchase shares of the Company’s common stock were granted.
The following is a summary of stock option transactions:
At June 30, 2022, options to purchase 197,032
shares of common stock were unvested at a weighted average exercise price of $17.25.
At June 30, 2022, there was $666,000 of total
unrecognized compensation expense related to unvested stock option awards, which will be recognized over the weighted average remaining vesting period of approximately one year.
Restricted Stock Units and Restricted Stock Awards (collectively “RSUs”)
During the three months ended June 30, 2022 and 2021, the Company granted (i) performance-based restricted stock awards which had a
threshold performance level of 33,333 shares, a target performance level of 66,667 shares, and a maximum performance level of 100,000 shares at the grant date for both periods and
(ii) 176,590 and 118,673 of time-based vesting restricted stock units, respectively, based on the closing market price on the grant date.
The following is a summary of non-vested RSUs:
At June 30, 2022, there was $5,818,000 of
unrecognized compensation expense related to RSUs, which will be recognized over the weighted average remaining vesting period of approximately 2.0
years. The Company’s unrecognized compensation expense includes restricted stock awards at target performance level.
Performance Stock Units (“PSUs”)
During the three months ended
June 30, 2022 and 2021, the Company granted 126,028 and 84,593 PSUs (at target performance levels), respectively, which typically cliff vest after three-years
subject to continued employment. These awards are contingent and granted separately for each of the following metrics: adjusted EBITDA, net sales, and relative total shareholder return (“TSR”). Compensation cost is determined at the grant date
and recognized on a straight-line basis over the requisite service period to the extent the conditions are deemed probable. The number of shares earned at the end of the three-year period will vary, based only on actual performance, from 0% to 150% of the target number of
PSUs granted. PSUs are not considered issued or outstanding ordinary shares of the Company.
Adjusted EBITDA and net sales are considered performance conditions. The Company will reassess the probability of achieving each performance condition
separately each reporting period. TSR is considered a market condition because it measures the Company’s return against the performance of the Russell 3000, excluding companies classified as financials and real estate, over a given period of time.
Compensation cost related to the TSR award will not be adjusted even if the market condition is not met.
The Company calculated the fair value of the PSUs for each component individually. The fair value of PSUs subject to performance conditions is equal to the
closing stock price on the grant date. The fair value of PSUs subject to the market condition is determined using the Monte Carlo valuation model.
The following table summarizes
the assumptions used in determining the fair value of the TSR awards:
The following is a summary of non-vested PSUs:
At June 30, 2022, there was $3,033,000 of unrecognized compensation expense related to these awards, which will be recognized over
the weighted average remaining vesting period of approximately 2.5 years.
|
Commitments and Contingencies |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies |
16. Commitments and Contingencies
Warranty Returns
The Company allows its customers to return goods that their consumers have returned to them, whether or not the returned item is defective (“warranty
returns”). The Company accrues an estimate of its exposure to warranty returns based on a historical analysis of the level of this type of return as a percentage of unit sales. Amounts charged to expense for these warranty returns are considered in
arriving at the Company’s net sales.
The following summarizes the changes in the warranty return accrual:
Contingencies
The Company is subject to various lawsuits and claims. In addition, government agencies and self-regulatory organizations have the ability to conduct periodic
examinations of and administrative proceedings regarding the Company’s business. Following an audit in fiscal 2019, the U.S. Customs and Border Protection stated that it believed that the Company owed additional duties of approximately $17 million from 2011 through mid-2018 relating to products that it imported from Mexico. The Company does not believe that this amount is correct and
believes that it has numerous defenses and intends to dispute this amount vigorously. The Company cannot assure that the U.S. Customs and Border Protection will agree or that it will not need to accrue or pay additional amounts in the future.
|
Share Repurchases |
3 Months Ended |
---|---|
Jun. 30, 2022 | |
Share Repurchases [Abstract] | |
Share Repurchases |
17. Share Repurchases
In August 2018, the Company’s board of directors approved an increase in its share repurchase program
from $20,000,000 to $37,000,000
of its common stock. During the three months ended June 30, 2022, the Company did not repurchase any shares of its common stock. As of
June 30, 2022, $18,745,000 was utilized and $18,255,000
remains available to repurchase shares under the authorized share repurchase program, subject to the limit in the Company’s Credit Facility. The Company retired the 837,007 shares repurchased under this program through June 30, 2022. The Company’s share repurchase program does not obligate it to acquire any specific number of shares and shares may be repurchased in privately
negotiated and/or open market transactions.
|
Basis of Presentation and New Accounting Pronouncements (Policies) |
3 Months Ended |
---|---|
Jun. 30, 2022 | |
Basis of Presentation and New Accounting Pronouncements [Abstract] | |
Basis of Presentation |
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles
(“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended June 30, 2022 are not necessarily indicative of the results that may be expected for
the fiscal year ending March 31, 2023. This report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2022, which are included in the Company’s Annual
Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on June 14, 2022.
The accompanying condensed consolidated financial statements have been prepared
on a consistent basis with, and there have been no material changes to the accounting policies described in Note 2, Summary of Significant Accounting Policies, to
the consolidated financial statements that are presented in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022.
|
Accounts Receivable - Net (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable - Net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable |
Accounts receivable — net is comprised of the following:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses |
The following table provides a roll-forward of the allowance for credit losses that is deducted from accounts receivable to present the net amount expected to
be collected.
|
Inventory (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Net |
Inventory is comprised of the following:
|
Contract Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Assets |
Contract assets are comprised of the following:
|
Significant Customer and Other Information (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Customer and Other Information [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentrations of Risk |
Significant Customer Concentrations
The largest customers accounted for the following percentage of net sales:
The largest customers accounted for the following percentage of accounts receivable – trade:
Geographic and Product Information
The Company’s products are sold predominantly in the U.S. and accounted for the following percentages of net sales:
|
Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information About the Term Loan |
The following summarizes information about the Term Loans:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Repayments of the Amended Term Loan, by Fiscal Year |
Future repayments of the Term Loans are as follows:
|
Contract Liabilities (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Contract Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Liabilities |
Contract liabilities are comprised of the following:
|
Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Information for Leases |
Balance sheet information for leases is as follows:
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Lease Cost Recognized in Consolidated Statements of Operations |
Lease cost recognized in the condensed consolidated statements of operations is as follows:
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Maturity of Lease Commitments |
Maturities of lease commitments at June 30, 2022
by fiscal year were as follows:
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Other Information about Leases |
Other information about leases is as follows:
|
Accounts Receivable Discount Programs (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable Discount Programs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable Discount Programs |
The following is a summary of accounts receivable discount programs:
|
Net (Loss) Income per Share (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Basic and Diluted Net (Loss) Income Per Share |
The following presents a reconciliation of basic and diluted net (loss) income per share:
|
Financial Risk Management and Derivatives (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Financial Risk Management and Derivatives [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments on Consolidated Statements of Income |
The following shows the effect of derivative instruments on the condensed consolidated statements of operations:
|
Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value Recurring Basis |
The following summarizes financial assets and liabilities measured at fair value, by level within the fair value hierarchy:
|
Share-based Payments (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Transactions |
The following is a summary of stock option transactions:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Units Activity |
The following is a summary of non-vested RSUs:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Monte Carlo Valuation Model Assumptions used in Determining Fair Value of TSR Awards |
The following table summarizes
the assumptions used in determining the fair value of the TSR awards:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance Stock Units Activity |
The following is a summary of non-vested PSUs:
|
Commitments and Contingencies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Warranty Return Accrual |
The following summarizes the changes in the warranty return accrual:
|
Company Background and Organization (Details) |
3 Months Ended |
---|---|
Jun. 30, 2022
Segment
| |
Company Background and Organization [Abstract] | |
Number of operating segments | 3 |
Accounts Receivable - Net (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Mar. 31, 2022 |
|
Components of accounts receivable [Abstract] | |||
Accounts receivable - trade | $ 94,087,000 | $ 98,734,000 | |
Allowance for credit losses | (231,000) | (375,000) | |
Customer payment discrepancies | (1,418,000) | (1,375,000) | |
Customer returns RGA issued | (19,408,000) | (11,909,000) | |
Total accounts receivable - net | 73,030,000 | $ 85,075,000 | |
Allowance for credit losses [Roll Forward] | |||
Balance at beginning of period | 375,000 | $ 348,000 | |
Provision for expected credit losses | 12,000 | (36,000) | |
Recoveries | 0 | 0 | |
Amounts written off charged against the allowance | (156,000) | (39,000) | |
Balance at end of period | $ 231,000 | $ 273,000 |
Inventory (Details) - USD ($) |
Jun. 30, 2022 |
Mar. 31, 2022 |
---|---|---|
Inventory [Abstract] | ||
Raw materials | $ 146,775,000 | $ 150,414,000 |
Work-in-process | 6,357,000 | 6,880,000 |
Finished goods | 248,332,000 | 226,729,000 |
Inventory, gross | 401,464,000 | 384,023,000 |
Less allowance for excess and obsolete inventory | (12,704,000) | (13,520,000) |
Inventory - net | 388,760,000 | 370,503,000 |
Inventory unreturned | 16,445,000 | 15,001,000 |
Total inventory | $ 405,205,000 | $ 385,504,000 |
Contract Assets (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Mar. 31, 2022 |
|
Contract Assets [Abstract] | |||
Long-term contract assets, write-down | $ 572,000 | $ 984,000 | |
Short-term contract assets [Abstract] | |||
Cores expected to be returned by customers | 16,658,000 | $ 15,778,000 | |
Upfront payments to customers | 460,000 | 517,000 | |
Finished goods premiums paid to customers | 573,000 | 584,000 | |
Core premiums paid to customers | 10,092,000 | 10,621,000 | |
Total short-term contract assets | 27,783,000 | 27,500,000 | |
Long-term contract assets [Abstract] | |||
Remanufactured cores held at customers' locations | 257,379,000 | 258,376,000 | |
Upfront payments to customers | 122,000 | 210,000 | |
Finished goods premiums paid to customers | 2,685,000 | 2,806,000 | |
Core premiums paid to customers | 41,198,000 | 43,294,000 | |
Long-term core inventory deposits | 5,569,000 | 5,569,000 | |
Total long-term contract assets | $ 306,953,000 | $ 310,255,000 |
Contract Liabilities (Details) - USD ($) |
Jun. 30, 2022 |
Mar. 31, 2022 |
---|---|---|
Short-term contract liabilities [Abstract] | ||
Customer core returns accruals | $ 17,533,000 | $ 12,322,000 |
Customer allowances earned | 18,698,000 | 22,018,000 |
Customer deposits | 2,507,000 | 3,306,000 |
Finished goods liabilities | 1,582,000 | 1,537,000 |
Core bank liability | 1,647,000 | 1,634,000 |
Accrued core payment | 1,678,000 | 1,679,000 |
Total short-term contract liabilities | 43,645,000 | 42,496,000 |
Long-term contract liabilities [Abstract] | ||
Customer core returns accruals | 156,153,000 | 154,940,000 |
Customer allowances earned | 0 | 41,000 |
Finished goods liabilities | 1,202,000 | 1,588,000 |
Core bank liability | 14,851,000 | 15,267,000 |
Accrued core payment | 839,000 | 928,000 |
Total long-term contract liabilities | $ 173,045,000 | $ 172,764,000 |
Leases, General Information (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Leases [Abstract] | ||
Gains in foreign currency-denominated lease liabilities | $ 20,000 | $ 2,795,000 |
Leases, Cost Recogized in Consolidated Statements of Income (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Lease cost [Abstract] | ||
Operating lease cost | $ 3,165,000 | $ 3,042,000 |
Short-term lease cost | 454,000 | 376,000 |
Variable lease cost | 185,000 | 281,000 |
Finance lease cost [Abstract] | ||
Amortization of finance lease assets | 539,000 | 499,000 |
Interest on finance lease liabilities | 68,000 | 97,000 |
Total lease cost | $ 4,411,000 | $ 4,295,000 |
Leases, Maturities of Lease Commitments (Details) - USD ($) |
Jun. 30, 2022 |
Mar. 31, 2022 |
---|---|---|
Operating Leases [Abstract] | ||
2023 - remaining nine months | $ 8,804,000 | |
2024 | 10,073,000 | |
2025 | 10,143,000 | |
2026 | 10,358,000 | |
2027 | 10,496,000 | |
Thereafter | 64,621,000 | |
Total lease payments | 114,495,000 | |
Less amount representing interest | (28,290,000) | |
Present value of lease liabilities | 86,205,000 | |
Finance Leases [Abstract] | ||
2023 - remaining nine months | 1,884,000 | |
2024 | 1,762,000 | |
2025 | 1,263,000 | |
2026 | 570,000 | |
2027 | 106,000 | |
Thereafter | 5,000 | |
Total lease payments | 5,590,000 | |
Less amount representing interest | (370,000) | |
Present value of lease liabilities | 5,220,000 | |
Total [Abstract] | ||
2023 - remaining nine months | 10,688,000 | |
2024 | 11,835,000 | |
2025 | 11,406,000 | |
2026 | 10,928,000 | |
2027 | 10,602,000 | |
Thereafter | 64,626,000 | |
Total lease payments | 120,085,000 | |
Less amount representing interest | (28,660,000) | |
Present value of lease liabilities | $ 91,425,000 | $ 93,346,000 |
Leases, Other Information (Details) |
Jun. 30, 2022 |
Mar. 31, 2022 |
---|---|---|
Weighted-average remaining lease term (years) [Abstract] | ||
Finance leases | 2 years 9 months 18 days | 2 years 10 months 24 days |
Operating leases | 10 years 2 months 12 days | 10 years 4 months 24 days |
Weighted-average discount rate [Abstract] | ||
Finance leases | 5.10% | 5.10% |
Operating leases | 5.70% | 5.70% |
Accounts Receivable Discount Programs (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Accounts Receivable Discount Programs [Abstract] | ||
Receivables discounted | $ 142,624,000 | $ 146,669,000 |
Weighted average days | 327 days | 329 days |
Annualized weighted average discount rate | 3.70% | 1.80% |
Amount of discount recognized as interest expense | $ 4,874,000 | $ 2,473,000 |
Net (Loss) Income per Share (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Reconciliation of basic and diluted net income per share [Abstract] | ||
Net (loss) income | $ (175,000) | $ 861,000 |
Basic shares (in shares) | 19,123,354 | 19,054,481 |
Effect of potentially dilutive securities (in shares) | 0 | 604,576 |
Diluted shares (in shares) | 19,123,354 | 19,659,057 |
Net (loss) income per share, Basic [Abstract] | ||
Basic net (loss) income per share (in dollars per share) | $ (0.01) | $ 0.05 |
Net (loss) income per share, Diluted [Abstract] | ||
Diluted net (loss) income per share (in dollars per share) | $ (0.01) | $ 0.04 |
Options [Member] | ||
Antidilutive Securities [Abstract] | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 2,301,901 | 634,832 |
Income Taxes (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Income Taxes [Abstract] | ||
Income tax expense | $ 589,000 | $ 947,000 |
Effective income tax rate | 142.30% | 52.40% |
Financial Risk Management and Derivatives (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Mar. 31, 2022 |
|
Foreign Currency Exchange Contracts [Abstract] | |||
Forward foreign currency exchange contracts included in prepaid and other current assets | $ 415,000 | $ 1,113,000 | |
Forward Foreign Currency Exchange Contracts [Member] | |||
Foreign Currency Exchange Contracts [Abstract] | |||
Notional amount of foreign currency derivatives | 46,450,000 | $ 44,968,000 | |
Forward Foreign Currency Exchange Contracts [Member] | Foreign Exchange Impact of Lease Liabilities and Forward Contracts [Member] | |||
Foreign Currency Exchange Contracts [Abstract] | |||
Forward foreign currency exchange contracts | $ (698,000) | $ (262,000) | |
Forward Foreign Currency Exchange Contracts [Member] | Maximum [Member] | |||
Foreign Currency Exchange Contracts [Abstract] | |||
Derivative, term of contract | 1 year |
Commitments and Contingencies (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Mar. 31, 2019 |
|
Change in warranty return accrual [Roll Forward] | |||
Balance at beginning of period | $ 20,125,000 | $ 21,093,000 | |
Charged to expense | 30,920,000 | 27,261,000 | |
Amounts processed | (33,177,000) | (28,344,000) | |
Balance at end of period | $ 17,868,000 | $ 20,010,000 | |
Contingencies [Abstract] | |||
Estimated additional import duties | $ 17,000,000 |
Share Repurchases (Details) - Common Stock [Member] - USD ($) |
3 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Aug. 31, 2018 |
|
Stock Repurchase Program [Abstract] | ||
Stock repurchase program, approved amount | $ 37,000,000 | $ 20,000,000 |
Repurchase of shares (in shares) | 0 | |
Shares utilized, amount | $ 18,745,000 | |
Shares available for repurchase, amount | $ 18,255,000 | |
Shares repurchased and retired (in shares) | 837,007 |
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