|
|
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
Soliciting material pursuant to Rule l4a-12 under the Exchange Act (17 CFR 240.l4a-12)
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
Item 2.02. |
Results of Operations and Financial Condition
|
Item 9.01. |
Financial Statements and Exhibits.
|
Exhibit No.
|
Description
|
Press Release, dated August 9, 2023
|
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document).
|
MOTORCAR PARTS OF AMERICA, INC.
|
|
Date: August 9, 2023
|
|
/s/ David Lee
|
|
David Lee
|
|
Chief Financial Officer
|
• |
Sales volume is continuing to gain momentum.
|
o |
Ordering activity is strong.
|
o |
Extreme heat and strong industry fundamentals will enhance product demand.
|
• |
Margin improvement expected.
|
o |
Price increases.
|
o |
Better overhead absorption as the brake-related business grows.
|
◾ |
Overall gross profit is expected to increase in the interim.
|
o |
Operating efficiencies.
|
• |
Enhanced cash flow from working capital initiatives.
|
Three Months Ended
|
||||||||
June 30,
|
||||||||
2023
|
2022
|
|||||||
Net sales
|
$
|
159,705,000
|
$
|
163,985,000
|
||||
Cost of goods sold
|
133,138,000
|
133,683,000
|
||||||
Gross profit
|
26,567,000
|
30,302,000
|
||||||
Operating expenses:
|
||||||||
General and administrative
|
12,602,000
|
13,634,000
|
||||||
Sales and marketing
|
5,419,000
|
5,542,000
|
||||||
Research and development
|
2,375,000
|
3,113,000
|
||||||
Foreign exchange impact of lease liabilities and forward contracts
|
(4,270,000
|
)
|
678,000
|
|||||
Total operating expenses
|
16,126,000
|
22,967,000
|
||||||
Operating income
|
10,441,000
|
7,335,000
|
||||||
Other expenses:
|
||||||||
Interest expense, net
|
11,720,000
|
6,921,000
|
||||||
Change in fair value of compound net derivative liability
|
140,000
|
-
|
||||||
Total other expenses
|
11,860,000
|
6,921,000
|
||||||
(Loss) income before income tax (benefit) expense
|
(1,419,000
|
)
|
414,000
|
|||||
Income tax (benefit) expense
|
(9,000
|
)
|
589,000
|
|||||
Net loss
|
$
|
(1,410,000
|
)
|
$
|
(175,000
|
)
|
||
Basic net loss per share
|
$
|
(0.07
|
)
|
$
|
(0.01
|
)
|
||
Diluted net loss per share
|
$
|
(0.07
|
)
|
$
|
(0.01
|
)
|
||
Weighted average number of shares outstanding:
|
||||||||
Basic
|
19,508,626
|
19,123,354
|
||||||
Diluted
|
19,508,626
|
19,123,354
|
June 30, 2023
|
March 31, 2023
|
|||||||
ASSETS
|
(Unaudited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
10,887,000
|
$
|
11,596,000
|
||||
Short-term investments
|
2,159,000
|
2,011,000
|
||||||
Accounts receivable — net
|
146,645,000
|
119,868,000
|
||||||
Inventory
|
364,187,000
|
356,254,000
|
||||||
Contract assets
|
27,732,000
|
25,443,000
|
||||||
Prepaid expenses and other current assets
|
20,566,000
|
22,306,000
|
||||||
Total current assets
|
572,176,000
|
537,478,000
|
||||||
Plant and equipment — net
|
44,244,000
|
46,052,000
|
||||||
Operating lease assets
|
88,760,000
|
87,619,000
|
||||||
Long-term deferred income taxes
|
32,417,000
|
32,625,000
|
||||||
Long-term contract assets
|
314,463,000
|
318,381,000
|
||||||
Goodwill and intangible assets — net
|
5,046,000
|
5,348,000
|
||||||
Other assets
|
1,081,000
|
1,062,000
|
||||||
TOTAL ASSETS
|
$
|
1,058,187,000
|
$
|
1,028,565,000
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued liabilities
|
$
|
142,965,000
|
$
|
141,766,000
|
||||
Customer finished goods returns accrual
|
33,378,000
|
37,984,000
|
||||||
Contract liabilities
|
49,003,000
|
40,340,000
|
||||||
Revolving loan
|
167,000,000
|
145,200,000
|
||||||
Other current liabilities
|
5,170,000
|
4,871,000
|
||||||
Operating lease liabilities
|
8,914,000
|
8,767,000
|
||||||
Current portion of term loan
|
12,020,000
|
3,664,000
|
||||||
Total current liabilities
|
418,450,000
|
382,592,000
|
||||||
Term loan, less current portion
|
-
|
9,279,000
|
||||||
Convertible notes, related party
|
31,252,000
|
30,994,000
|
||||||
Long-term contract liabilities
|
194,708,000
|
193,606,000
|
||||||
Long-term deferred income taxes
|
1,985,000
|
718,000
|
||||||
Long-term operating lease liabilities
|
77,013,000
|
79,318,000
|
||||||
Other liabilities
|
11,340,000
|
11,583,000
|
||||||
Total liabilities
|
734,748,000
|
708,090,000
|
||||||
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;
|
||||||||
19,599,145 and 19,494,615 shares issued and outstanding at June 30, 2023 and
|
||||||||
March 31, 2023, respectively
|
196,000
|
195,000
|
||||||
Additional paid-in capital
|
232,866,000
|
231,836,000
|
||||||
Retained earnings
|
87,337,000
|
88,747,000
|
||||||
Accumulated other comprehensive income (loss)
|
3,040,000
|
(303,000
|
)
|
|||||
Total shareholders' equity
|
323,439,000
|
320,475,000
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
1,058,187,000
|
$
|
1,028,565,000
|
Three Months Ended June 30,
|
||||||||||||||||
2023
|
2022
|
|||||||||||||||
$ |
Per Share
|
$ |
Per Share
|
|||||||||||||
GAAP net loss
|
$
|
(1,410,000
|
)
|
$
|
(0.07
|
)
|
$
|
(175,000
|
)
|
$
|
(0.01
|
)
|
||||
Non-cash items impacting net loss
|
||||||||||||||||
Core and finished goods premium amortization
|
$
|
2,657,000
|
$
|
0.14
|
$
|
3,044,000
|
$
|
0.16
|
||||||||
Revaluation - cores on customers' shelves
|
778,000
|
0.04
|
572,000
|
0.03
|
||||||||||||
Share-based compensation expenses
|
1,310,000
|
0.07
|
1,249,000
|
0.07
|
||||||||||||
Foreign exchange impact of lease liabilities and forward contracts
|
(4,270,000
|
)
|
(0.22
|
)
|
678,000
|
0.04
|
||||||||||
Change in fair value of compound net derivative liability
|
140,000
|
0.01
|
-
|
-
|
||||||||||||
Tax effect (a)
|
(154,000
|
)
|
(0.01
|
)
|
(1,386,000
|
)
|
(0.07
|
)
|
||||||||
Total non-cash items impacting net loss
|
$
|
461,000
|
$
|
0.02
|
$
|
4,157,000
|
$
|
0.22
|
||||||||
Cash items impacting net loss
|
||||||||||||||||
Supply chain disruptions and related costs (b)
|
$
|
1,984,000
|
$
|
0.10
|
$
|
3,094,000
|
$
|
0.16
|
||||||||
New product line start-up costs and transition expenses, and severance (c)
|
335,000
|
0.02
|
618,000
|
0.03
|
||||||||||||
Tax effect (a)
|
(580,000
|
)
|
(0.03
|
)
|
(928,000
|
)
|
(0.05
|
)
|
||||||||
Total cash items impacting net loss
|
$
|
1,739,000
|
$
|
0.09
|
$
|
2,784,000
|
$
|
0.15
|
Three Months Ended June 30,
|
||||||||||||||||
2023
|
2022
|
|||||||||||||||
$ |
Gross
Margin
|
|
$ |
Gross
Margin
|
||||||||||||
GAAP gross profit
|
$
|
26,567,000
|
16.6
|
%
|
$
|
30,302,000
|
18.5
|
%
|
||||||||
Non-cash items impacting gross profit
|
||||||||||||||||
Core and finished goods premium amortization
|
$
|
2,657,000
|
1.7
|
%
|
$
|
3,044,000
|
1.9
|
%
|
||||||||
Revaluation - cores on customers' shelves
|
778,000
|
0.5
|
%
|
572,000
|
0.3
|
%
|
||||||||||
Total non-cash items impacting gross profit
|
$
|
3,435,000
|
2.2
|
%
|
$
|
3,616,000
|
2.2
|
%
|
||||||||
Cash items impacting gross profit
|
||||||||||||||||
Supply chain disruptions and related costs
|
$
|
1,984,000
|
1.0
|
%
|
$
|
2,548,000
|
1.6
|
%
|
||||||||
Total cash items impacting gross profit
|
$
|
1,984,000
|
1.0
|
%
|
$
|
2,548,000
|
1.6
|
%
|
Three Months Ended June 30,
|
||||||||
2023
|
2022
|
|||||||
GAAP net loss
|
$
|
(1,410,000
|
)
|
$
|
(175,000
|
)
|
||
Interest expense, net
|
11,720,000
|
6,921,000
|
||||||
Income tax (benefit) expense
|
(9,000
|
)
|
589,000
|
|||||
Depreciation and amortization
|
3,033,000
|
3,124,000
|
||||||
EBITDA
|
$
|
13,334,000
|
$
|
10,459,000
|
||||
Non-cash items impacting EBITDA
|
||||||||
Core and finished goods premium amortization
|
$
|
2,657,000
|
$
|
3,044,000
|
||||
Revaluation - cores on customers' shelves
|
778,000
|
572,000
|
||||||
Share-based compensation expenses
|
1,310,000
|
1,249,000
|
||||||
Foreign exchange impact of lease liabilities and forward contracts
|
(4,270,000
|
)
|
678,000
|
|||||
Change in fair value of compound net derivative liability
|
140,000
|
-
|
||||||
Total non-cash items impacting EBITDA
|
$
|
615,000
|
$
|
5,543,000
|
||||
Cash items impacting EBITDA
|
||||||||
Supply chain disruptions and related costs
|
$
|
1,984,000
|
$
|
3,094,000
|
||||
New product line start-up costs and transition expenses, and severance
|
335,000
|
618,000
|
||||||
Total cash items impacting EBITDA
|
$
|
2,319,000
|
$
|
3,712,000
|
Document and Entity Information |
Aug. 09, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Aug. 09, 2023 |
Entity File Number | 001-33861 |
Entity Registrant Name | MOTORCAR PARTS OF AMERICA, INC. |
Entity Central Index Key | 0000918251 |
Entity Incorporation, State or Country Code | NY |
Entity Tax Identification Number | 11-2153962 |
Entity Address, Address Line One | 2929 California Street |
Entity Address, City or Town | Torrance |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 90503 |
City Area Code | 310 |
Local Phone Number | 212-7910 |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Trading Symbol | MPAA |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
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