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Motorcar Parts of America Reports Fiscal 2013 Third Quarter



Motorcar Parts of America Reports Fiscal 2013 Third Quarter

Record Rotating Electrical Segment Sales for a Third Quarter

LOS ANGELES, Feb. 15, 2013 (GLOBE NEWSWIRE) -- Motorcar Parts of America, Inc.
(Nasdaq:MPAA) today reported results for its fiscal 2013 third quarter ended
December 31, 2012 – reflecting record sales for its rotating electrical
business and the continued impact of the undercar product line transition.

Net sales for the fiscal 2013 third quarter increased to $116.3 million from
$84.1 million for the same period last year. Results for the quarter include
revenue of approximately $50.8 million that was recognized as a result of the
elimination of the company's obligation to accept core returns from a
customer, previously accrued for in the undercar segment. Net income for the
same period was $935,000 or $0.06 per diluted share, compared with a net loss
of $21.8 million, or $1.74 per share, a year earlier – reflecting gross profit
recognition of $19.1 million in fiscal 2013 related to the elimination of the
remanufactured core liability noted above net of recognition of related core
inventory costs.

Net sales for the rotating electrical segment increased 20.2 percent to $50.7
million from $42.1 million for the prior year third quarter. Gross profit for
rotating electrical was $16.3 million compared with $12.6 million a year
earlier. Gross profit as a percentage of sales for the rotating electrical
segment increased to 32.2 percent from 30.0 percent last year, reflecting
higher sales and better absorption of manufacturing overhead. On a non-GAAP
basis, Adjusted EBITDA for the company's rotating electrical segment was $9.0
million compared with $6.5 million for the same period a year earlier.

Consolidated gross profit for the fiscal 2013 third quarter was $24.0 million
compared with negative gross profit of $1.6 million for the same period a year
ago. Gross profit as a percentage of net sales for the fiscal 2013 third
quarter was 20.7 percent compared with a negative 1.9 percent in the same
quarter a year ago.

Net sales for the fiscal 2013 nine-month period increased to $316.9 million
from $262.2 million for the same period last year. Results for the nine-month
period include revenue of approximately $50.8 million that was recognized as a
result of the elimination of the company's obligation to accept core returns
from a customer, previously accrued for in the undercar segment. As
anticipated due to the impact of the company's undercar product line segment
transition and turnaround, the company reported a consolidated net loss for
the fiscal 2013 nine-month period of $17.9 million, or $1.25 per share,
compared with a consolidated net loss of $35.6 million, or $2.86 per share,
for the comparable period a year earlier.

Net sales for fiscal 2013 nine-month period for the rotating electrical
segment increased 20.7 percent to $155.1 million from $128.5 million for the
same period last year. Gross profit for rotating electrical was $51.2 million
compared with $40.5 million a year earlier. Gross profit as a percentage of
sales for the rotating electrical segment for the nine months increased to
33.0 percent from 31.5 percent last year, reflecting higher sales and better
absorption of manufacturing overhead. On a non-GAAP basis, Adjusted EBITDA for
the company's rotating electrical segment for the nine months was $30.8
million compared with $21.9 million for the same period a year earlier.

Consolidated gross profit for the fiscal 2013 nine months was $52.9 million
compared with $20.4 million for the same period a year ago. Gross profit as a
percentage of net sales for the same period was 16.7 percent compared with 7.8
percent in the same period last year.

"Results for the quarter and nine months reflect continued positive momentum
in our rotating electrical segment. We have made continued progress in our
transition of the company's undercar segment -- highlighted by the
commencement of new undercar product shipments from Torrance, California;
exiting the third-party operated distribution in Pennsylvania; the
identification of further cost-reductions and streamlining opportunities; and,
the relocation of accounting personnel to Torrance from Toronto along with the
implementation of our new ERP system. While the transition is progressing
well, we are adapting to the new challenges of a downsized Fenco," said Selwyn
Joffe, chairman, president and chief executive officer of Motorcar Parts.

He noted that during the quarter and subsequent to December 31, 2012, the
company repurchased an aggregate 154,447 shares and vested options at an
average price of $4.89 for $754,670.

Use of Adjusted EBITDA

We defined Adjusted EBITDA as net income (loss), adjusted for various items
relating to discontinued customer, share-based compensation and other matters,
plus interest expense, income tax expense and depreciation and amortization.
Adjusted EBITDA does not reflect the impact of a number of items that affect
the company's net income, including financing, transition and
acquisition-related costs. Adjusted EBITDA is not a measure of financial
performance under GAAP, and should not be considered as an alternative to net
income or income from operations as a measure of performance, nor as
alternative to net cash from operating activities as a measure of liquidity.
Adjusted EBITDA has significant limitations as an analytical tool, and should
not be considered in isolation, or as a substitute for analysis of the
company's results as reported under GAAP.  For a reconciliation of net income
(loss) to Adjusted EBITDA, see the financial tables included in this press
release.

Management will revise the guidance for the company's rotating electrical and
undercar business segments during its scheduled conference call later today.

Teleconference and Web Cast

Selwyn Joffe, chairman, president and chief executive officer, and David Lee,
chief financial officer, will host an investor conference call today at 10:00
a.m. Pacific time to discuss the company's financial results and operations.

The call will be open to all interested investors either through a live audio
Web broadcast at www.motorcarparts.com or live by calling (877)-776-4016
(domestic) or (973)-638-3231 (international). For those who are not available
to listen to the live broadcast, the call will be archived for seven days on
Motorcar Parts of America's website www.motorcarparts.com. A telephone
playback of the conference call will also be available from approximately 1:00
p.m. Pacific time today through 8:59 p.m. Pacific time on Thursday, February
21, 2013 by calling (855)-859-2056 (domestic) or (404)-537-3406
(international) and using access code: 99149942.

About Motorcar Parts of America

Motorcar Parts of America, Inc. is a remanufacturer of alternators and
starters utilized in imported and domestic passenger vehicles, light trucks
and heavy duty applications. The company also offers a broad line of
under-the-car products – including brake, steering and clutch
components. Motorcar Parts of America's products are sold to automotive retail
outlets and the professional repair market throughout the United States and
Canada, with remanufacturing facilities located in California, Mexico and
Malaysia, and administrative offices located in California, Tennessee, Mexico,
Canada, Singapore and Malaysia. Additional information is available at
www.motorcarparts.com.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for certain forward-looking statements. The statements contained in this press
release that are not historical facts are forward-looking statements based on
the company's current expectations and beliefs concerning future developments
and their potential effects on the company. These forward-looking statements
involve significant risks and uncertainties (some of which are beyond the
control of the company) and are subject to change based upon various
factors. Reference is also made to the Risk Factors set forth in the company's
Form 10-K Annual Report filed with the Securities and Exchange Commission
(SEC) in September 2012 and in its Forms 10-Q filed with the SEC for
additional risks and uncertainties facing the company. The company undertakes
no obligation to publicly update or revise any forward-looking statements,
whether as the result of new information, future events or otherwise.

                          (Financial tables follow)

MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
                                                                
                Three Months Ended             Nine Months Ended
                December 31,                   December 31, 
                2012           2011            2012            2011
Net sales        $ 116,275,000  $ 84,097,000    $ 316,930,000   $ 262,223,000
Cost of goods    92,232,000     85,678,000      264,052,000     241,792,000
sold
Gross profit     24,043,000     (1,581,000)     52,878,000      20,431,000
(loss)
Operating                                                       
expenses:
General and      12,779,000     10,155,000      35,536,000      29,773,000
administrative
Sales and        2,687,000      3,369,000       10,130,000      9,019,000
marketing
Research and     807,000        453,000         1,704,000       1,270,000
development
Impairment of
plant and        --             1,031,000       --              1,031,000
equipment
Acquisition      --             --              --              713,000
costs
Total operating  16,273,000     15,008,000      47,370,000      41,806,000
expenses
Operating        7,770,000      (16,589,000)    5,508,000       (21,375,000)
income (loss)
Interest         5,889,000      3,262,000       17,135,000      8,565,000
expense, net
Income (loss)
before income    1,881,000      (19,851,000)    (11,627,000)    (29,940,000)
tax expense
Income tax       946,000        1,976,000       6,233,000       5,631,000
expense
Net income       $ 935,000      $ (21,827,000)  $ (17,860,000)  $ (35,571,000)
(loss)
Basic net
income (loss)    $ 0.06         $ (1.74)        $ (1.25)        $ (2.86)
per share
Diluted net
income (loss)    $ 0.06         $ (1.74)        $ (1.25)        $ (2.86)
per share
Weighted
average number                                                  
of shares
outstanding:
Basic           14,463,782     12,517,269      14,283,080      12,417,292
Diluted         14,525,613     12,517,269      14,283,080      12,417,292

 
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
                                                                 
                                              December 31, 2012 March 31, 2012
ASSETS                                        (Unaudited)        
Current assets:                                                  
Cash                                           $ 25,070,000      $ 32,617,000
Short-term investments                         383,000           342,000
Accounts receivable — net                      5,171,000         20,036,000
Inventory— net                                 85,822,000        95,071,000
Inventory unreturned                           14,127,000        9,819,000
Deferred income taxes                          3,834,000         3,793,000
Prepaid expenses and other current assets      6,942,000         6,553,000
Total current assets                           141,349,000       168,231,000
Plant and equipment — net                      13,484,000        12,738,000
Long-term core inventory — net                 160,862,000       194,406,000
Long-term core inventory deposits              27,610,000        26,939,000
Long-term deferred income taxes                2,151,000         1,857,000
Goodwill                                       68,356,000        68,356,000
Intangible assets — net                        20,856,000        22,484,000
Other assets                                   7,974,000         6,887,000
TOTAL ASSETS                                   $ 442,642,000     $ 501,898,000
LIABILITIES AND SHAREHOLDERS' EQUITY                             
Current liabilities:                                             
Accounts payable                               $ 118,716,000     $ 126,100,000
Accrued liabilities                            12,836,000        19,379,000
Customer finished goods returns accrual        30,164,000        21,695,000
Other current liabilities                      2,493,000         2,331,000
Current portion of term loan                   4,800,000         500,000
Current portion of capital lease obligations   287,000           414,000
Total current liabilities                      169,296,000       170,419,000
Term loan, less current portion                89,428,000        84,500,000
Revolving loan                                 49,729,000        48,884,000
Deferred core revenue                          10,357,000        9,775,000
Customer core returns accrual                  49,739,000        113,702,000
Other liabilities                              3,748,000         751,000
Capital lease obligations, less current        61,000            248,000
portion
Total liabilities                              372,358,000       428,279,000
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, 20,000,000 shares        
authorized; 
14,526,717 and 12,533,821 shares issued;
14,493,197 and 12,519,421 outstanding at       145,000           125,000
December 31, 2012 and March 31, 2012,
respectively 
Treasury stock, at cost, 33,520 and 14,400
shares of common stock at December 31, 2012    (189,000)         (89,000)
and March 31, 2012, respectively 
Additional paid-in capital                     115,355,000       98,627,000
Additional paid-in capital-warrant             --                1,879,000
Accumulated other comprehensive loss           (1,128,000)       (884,000)
Accumulated deficit                            (43,899,000)      (26,039,000)
Total shareholders' equity                     70,284,000        73,619,000
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY     $ 442,642,000     $ 501,898,000

Reconciliation of Non-GAAP Financial Measures

To supplement the consolidated financial statements presented in accordance
with U.S. generally accepted accounting principles ("GAAP"), the Company has
included the following non-GAAP adjusted financial measures in this press
release and in the webcast to discuss the Company's financial results for the
fiscal year 2013 and fiscal 2012 third quarter and nine-month period. Each of
these non-GAAP adjusted financial measures is adjusted from results based on
GAAP to exclude certain expenses and gains.  Among other things, the Company
uses such non-GAAP adjusted financial measures in addition to and in
conjunction with corresponding GAAP measures to help analyze the performance
of its business. 

These non-GAAP adjusted financial measures reflect an additional way of
viewing aspects of the Company's operations that, when viewed with the GAAP
results and the reconciliations to corresponding GAAP financial measures,
provide a more complete understanding of the Company's results of operations
and the factors and trends affecting the Company's business. However, these
non-GAAP adjusted financial measures should be considered as a supplement to,
and not as a substitute for, or superior to, the corresponding measures
calculated in accordance with GAAP.

Beginning with the first quarter of fiscal year 2012, the Company has begun
providing segment information. The two segments are defined as rotating
electrical and acquired Fenco products now referred to as the undercar
segment. Income statement information relating to the Company's reportable
segments for the three months and nine months ended December 31, 2012 is as
follows:

Reconciliation of Non-GAAP Financial Measures                                                                       Exhibit 1
                                      
                                     Three months ended December 31, 2012 (Unaudited)
                                     Rotating      Undercar                    As Reported                          Adjusted
Income statement                     Electrical    Product Line  Eliminations  Consolidated   Adjustment            Consolidated    
                                                                                              (Non-GAAP)      (1)   (Non-GAAP) 
Net sales                             $ 50,658,000  $ 65,617,000  $ --          $ 116,275,000  $ (42,093,000)  (2)   $ 74,182,000   
Cost of goods sold                    34,332,000    57,900,000    --            92,232,000     (30,219,000)    (3)   62,013,000     
Gross profit (loss)                   16,326,000    7,717,000     --            24,043,000     (11,874,000)          12,169,000     
Gross margin                         32.2%         11.8%                       20.7%                                16.4%           
Operating expenses:                                                                                                                 
General and administrative            8,848,000     3,931,000     --            12,779,000     (4,054,000)     (4)   8,725,000      
Sales and marketing                   1,983,000     704,000       --            2,687,000                            2,687,000      
Research and development              445,000       362,000       --            807,000                              807,000        
Total operating expenses              11,276,000    4,997,000     --            16,273,000     (4,054,000)           12,219,000     
Operating income (loss)               5,050,000     2,720,000     --            7,770,000      (7,820,000)           (50,000)       
Interest expense, net                 2,384,000     3,505,000     --            5,889,000      --              (5)   5,889,000     (B)
Income (loss) before income tax       2,666,000     (785,000)     --            1,881,000      (7,820,000)           (5,939,000)    
expense
Income tax expense                    880,000       66,000        --            946,000       831,000          (6)  1,777,000      (B)
Net income (loss)                     $ 1,786,000   $ (851,000)   $ --          $ 935,000      $ (8,651,000)         $ (7,716,000) (A)
Undercar product lines not supported                                                          1,379,000        (7)  1,379,000       
Net income (loss) - Adjusted                                                                   $ (7,272,000)         $ (6,337,000)  
                                                                                                                                    
Diluted net income (loss) per share                                             $ 0.06         $ (0.60)              $ (0.53)       
Undercar product lines not supported                                                           $ 0.09          (7)   $ 0.09         
Diluted net income (loss) per share - Adjusted                                                 $ (0.50)              $ (0.44)       
Weighted average number of shares outstanding:                                                                                      
Diluted                                                                        14,525,613     14,525,613            14,525,613      
Depreciation and amortization                                                                                        1,263,000     (B)
Adjusted EBITDA - Sum of (A) and (B)                                                                                 $ 1,213,000    
Undercar product lines not supported                                                                                 1,379,000      
Adjusted EBITDA total                                                                                                $ 2,592,000    
                                                                                                                                    
(1) See following Exhibits for detailed segment analysis of results of
operations.
                                     Rotating      Undercar      Total                                                              
                                     Electrical    Product Line
(2) Contractual customer
penalties/unique customer             --            769,000       769,000       
allowances 
Stock adjustment - sales              --            7,921,000     7,921,000                    
Core revenue - discontinued customer  --            (50,783,000)  (50,783,000)                                                      
Total                                 --            (42,093,000)  (42,093,000)                                                      
(3) Unusual inventory purchases and   --            349,000       349,000                                                           
freight expenses
Stock adjustment - cost of goods      --            (5,116,000)   (5,116,000)                                                       
sold
Inventory                             --            3,337,000     3,337,000                                                         
obsolescence/write-down/inefficiency
Core cost of revenue - discontinued   --            31,649,000    31,649,000                                                        
customer
Total                                 --            30,219,000    30,219,000                                                        
(4) Financing, severance,             1,443,000     808,000       2,251,000                                                         
professional and other fees
Share-based compensation expense      917,000       24,000        941,000                                                           
Mark-to-market (gain)/loss            862,000       --            862,000                                                           
Total                                 3,222,000     832,000       4,054,000                                                         
(5) Intersegment interest income for the rotating electrical segment and intersegment interest expense for the Undercar product line
segment is $1,501,000.
(6) Tax effected for Rotating Electrical at 39% tax rate and Undercar product line at 0% tax rate after further adjusting for
intercompany interest income and expense.
(7) Certain Undercar product lines not supported resulted in a loss for the period from October 1, 2012 to December 31, 2012 of
$1,379,000 - ($0.09) per share.

                                                                           

                                                                                                                   
Reconciliation of Non-GAAP Financial Measures                                                                     Exhibit 2
                                      
                                     Nine months ended December 31, 2012 (Unaudited)
                                     Rotating       Undercar                      As Reported                           Adjusted
Income statement                     Electrical     Product Line    Eliminations  Consolidated    Adjustment            Consolidated     
                                                                                                  (Non-GAAP)      (1)   (Non-GAAP) 
Net sales                             $ 155,109,000  $ 161,821,000   $ --          $ 316,930,000   $ (38,711,000)  (2)   $ 278,219,000   
Cost of goods sold                    103,868,000    160,184,000     --            264,052,000     (33,018,000)    (3)   231,034,000     
Gross profit (loss)                   51,241,000     1,637,000       --            52,878,000      (5,693,000)           47,185,000      
Gross margin                         33.0%          1.0%                          16.7%                                 17.0%            
Operating expenses:                                                                                                                      
General and administrative            19,154,000     16,382,000      --            35,536,000      (10,026,000)    (4)   25,510,000      
Sales and marketing                   5,479,000      4,651,000       --            10,130,000      (747,000)       (5)   9,383,000       
Research and development              1,342,000      362,000         --            1,704,000       --                    1,704,000       
Total operating expenses              25,975,000     21,395,000      --            47,370,000      (10,773,000)          36,597,000      
Operating income (loss)               25,266,000     (19,758,000)    --            5,508,000       5,080,000             10,588,000      
Interest expense, net                 8,373,000      8,762,000       --            17,135,000      --              (6)   17,135,000     (B)
Income (loss) before income tax       16,893,000     (28,520,000)    --            (11,627,000)    5,080,000             (6,547,000)     
expense
Income tax expense                    6,237,000      (4,000)         --            6,233,000       232,000         (7)   6,465,000      (B)
Net income (loss)                     $ 10,656,000   $ (28,516,000)  $ --          $ (17,860,000)  $ 4,848,000           $ (13,012,000) (A)
Undercar product lines not supported                                                               2,885,000       (8)  2,885,000        
Net income (loss) - Adjusted                                                                       $ 7,733,000           $ (10,127,000)  
                                                                                                                                         
Diluted net income (loss) per share                                                $ (1.25)        $ 0.34                $ (0.91)        
Undercar product lines not supported                                                               $ 0.20          (8)   $ 0.20          
Diluted net income (loss) per share - Adjusted                                                     $ 0.54                $ (0.71)        
Weighted average number of shares outstanding:                                                                                           
Diluted                                                                           14,283,080      14,283,080            14,283,080       
Depreciation and amortization                                                                                            3,991,000      (B)
Adjusted EBITDA - Sum of (A) and (B)                                                                                     $ 14,579,000    
Undercar product lines not supported                                                                                     2,885,000       
Adjusted EBITDA total                                                                                                    $ 17,464,000    
                                                                                                                                         
(1) See following Exhibits for detailed segment analysis of results of                                                                   
operations.
                                     Rotating       Undercar        Total                                                                
                                     Electrical     Product Line
(2) Contractual customer
penalties/unique customer             --             4,151,000       4,151,000                                                           
allowances 
Stock adjustment - sales              --             7,921,000       7,921,000                                                           
Core revenue - discontinued customer  --             (50,783,000)    (50,783,000)                                                        
Total                                 --             (38,711,000)    (38,711,000)                                                        
(3) Third-party warehouse exit        --             1,402,000       1,402,000                                                           
termination fees
Severance                             --             1,272,000       1,272,000                                                           
Unusual inventory purchases and       --             474,000         474,000                                                             
freight expenses
Stock adjustment - cost of goods      --             (5,116,000)     (5,116,000)                                                         
sold
Inventory                             --             3,337,000       3,337,000                                                           
obsolescence/write-down/inefficiency
Core cost of revenue - discontinued   --             31,649,000      31,649,000                                                          
customer
Total                                 --             33,018,000      33,018,000                                                          
(4) Financing, severance,             1,982,000      6,639,000       8,621,000                                                           
professional and other fees
Share-based compensation expense      917,000        24,000          941,000                                                             
Mark-to-market (gain)/loss            464,000        --              464,000                                                             
Total                                 3,363,000      6,663,000       10,026,000                                                          
(5) Severance                         --             747,000         747,000                                                             
(6) Intersegment interest income for the rotating electrical segment and intersegment interest expense for the Undercar product line
segment is $3,669,000.
(7) Tax effected for Rotating Electrical at 39% tax rate and Undercar product line at 0% tax rate after further adjusting for intercompany
interest income and expense.
(8) Certain Undercar product lines not supported resulted in a loss for the period from April 1, 2012 to December 31, 2012 of $2,885,000 -
($0.20) per share.
                                                                                                                                         

                                                                                     
Reconciliation of Non-GAAP Financial                                                Exhibit 3
Measures                                                                           
                                                   
                                                  Three months ended December 31, 2012 (Unaudited)
                                                  As Reported                             Adjusted
Income statement                                  Undercar        Adjustment              Undercar         
                                                  Product Line    (Non-GAAP)              Product Line
                                                                                          (Non-GAAP)
Net sales                                          $ 65,617,000    $ (42,093,000)    (2)   $ 23,524,000    
Cost of goods sold                                 57,900,000      (30,219,000)      (3)   27,681,000      
Gross profit (loss)                                7,717,000       (11,874,000)            (4,157,000)     
Gross margin                                      11.8%                                   -17.7%          (1)
Operating expenses:                                                                                        
General and administrative                         3,931,000       (832,000)         (4)   3,099,000       
Sales and marketing                                704,000                                 704,000         
Research and development                           362,000                                 362,000         
Total operating expenses                           4,997,000       (832,000)               4,165,000       
Operating income (loss)                            2,720,000       (11,042,000)            (8,322,000)     
Interest expense, net                              3,505,000       (1,501,000)       (5)   2,004,000      (B)
Income (loss) before income tax expense            (785,000)       (9,541,000)             (10,326,000)    
Income tax expense                                 66,000          --                (6)   66,000         (B)
Net income (loss)                                  $ (851,000)     $ (9,541,000)           $ (10,392,000) (A)
Undercar product lines not supported                                                       1,379,000      (7)
Net income (loss) - Adjusted                                                               $ (9,013,000)   
                                                                                                           
Diluted net income (loss) per share                                                        $ (0.72)        
Undercar product lines not supported                                                      $ 0.09          (7)
Diluted net income (loss) per share - Adjusted                                            $ (0.62)         
Weighted average number of shares outstanding:                                                             
Diluted                                                                                   14,525,613       
Depreciation and amortization                                                              564,000        (B)
Adjusted EBITDA - Sum of (A) and (B)                                                       $ (7,758,000)   
Undercar product lines not supported                                                       1,379,000       
Adjusted EBITDA total                                                                     $ (6,379,000)    
                                                                                                           
(1) Adjusted further for the impact on gross margins from the loss from Undercar product lines not supported
of 5.6%, 
total gross margin would have been negative (12.1%) for the Undercar product line segment.                 
(2) Contractual customer penalties/unique          769,000                                                 
customer allowances 
Stock adjustment - sales                           7,921,000                                               
Core revenue - discontinued customer               (50,783,000)                                            
Total                                              (42,093,000)                                            
(3) Unusual inventory purchases and freight        349,000                                                 
expenses
Stock adjustment - cost of goods sold              (5,116,000)                                             
Inventory obsolescence/write-down/inefficiency     3,337,000                                               
Core cost of revenue - discontinued customer       31,649,000                                              
Total                                              30,219,000                                              
(4) Financing, severance, professional and other   808,000                                                 
fees
Share-based compensation expense                   24,000                                                  
Total                                              832,000                                                 
(5) Intersegment interest expense for the Undercar product line segment is $1,501,000.                     
(6) Tax effected for Undercar product line at 0%                                                           
tax rate.
(7) Certain Undercar product lines not supported resulted in a loss for the period from October 1, 2012 to
December 31, 2012 
of $1,379,000 - ($0.09) per share.                                                                         

                                                                                            
Reconciliation of Non-GAAP Financial Measures                              Exhibit 4
                                                                                            
                                     Nine months ended December 31, 2012 (Unaudited)        
                                     As Reported                           Adjusted
Income statement                     Undercar        Adjustment            Undercar         
                                     Product Line    (Non-GAAP)            Product Line
                                                                           (Non-GAAP)
Net sales                             $ 161,821,000   $ (38,711,000)  (2)   $ 123,110,000   
Cost of goods sold                    160,184,000     (33,018,000)    (3)   127,166,000     
Gross profit (loss)                   1,637,000       (5,693,000)           (4,056,000)     
Gross margin                         1.0%                                  -3.3%            (1) 
Operating expenses:                                                                         
General and administrative            16,382,000      (6,663,000)     (4)   9,719,000       
Sales and marketing                   4,651,000       (747,000)       (5)   3,904,000       
Research and development              362,000                               362,000         
Total operating expenses              21,395,000      (7,410,000)           13,985,000      
Operating income (loss)               (19,758,000)    1,717,000             (18,041,000)    
Interest expense, net                 8,762,000       (3,669,000)     (6)   5,093,000      (B)
Income (loss) before income tax       (28,520,000)    5,386,000             (23,134,000)    
expense
Income tax expense                    (4,000)         --              (7)   (4,000)        (B)
Net income (loss)                     $ (28,516,000)  $ 5,386,000           $ (23,130,000) (A)
Undercar product lines not supported                                        2,885,000       (8) 
Net income (loss) - Adjusted                                                $ (20,245,000)  
                                                                                            
Diluted net income (loss) per share                                         $ (1.62)        
Undercar product lines not supported                                        $ 0.20          (8) 
Diluted net income (loss) per share - Adjusted                              $ (1.42)        
Weighted average number of shares                                                           
outstanding:
Diluted                                                                    14,283,080       
Depreciation and amortization                                               1,854,000      (B)
Adjusted EBITDA - Sum of (A) and (B)                                        $ (16,187,000)  
Undercar product lines not supported                                        2,885,000       
Adjusted EBITDA total                                                       $ (13,302,000)  
                                                                                            
(1) Adjusted further for the impact on gross margins from the loss from Undercar product    
lines not supported of 2.3%, 
total gross margin would have been negative (1.0%) for the Undercar                         
product line segment.
(2) Contractual customer
penalties/unique customer             4,151,000                                             
allowances 
 Stock adjustment - sales             7,921,000                                             
 Core revenue - discontinued          (50,783,000)                                          
customer
 Total                                (38,711,000)                                          
(3) Third-party warehouse exit        1,402,000                                             
termination fees
 Severance                            1,272,000                                             
 Unusual inventory purchases and      474,000                                               
freight expenses
 Stock adjustment - cost of goods     (5,116,000)                                           
sold
 Inventory                            3,337,000                                             
obsolescence/write-down/inefficiency
 Core cost of revenue - discontinued  31,649,000                                            
customer
 Total                                33,018,000                                            
(4) Financing, severance,             6,639,000                                             
professional and other fees
 Share-based compensation expense     24,000                                                
 Total                                6,663,000                                             
(5) Severance                         747,000                                               
(6) Intersegment interest expense for the Undercar product line                             
segment is $3,669,000.
(7) Tax effected for Undercar                                                               
product line at 0% tax rate.
(8) Certain Undercar product lines not supported resulted in a loss for the period from April 1,
2012 to September 30, 2012 
of $2,885,000 - ($0.20) per share.                                                          

                                                                        
 Reconciliation of                                                     Exhibit
Non-GAAP Financial                                                     5
Measures
                                                                        
                       Three months ended December 31, 2012 (Unaudited)
                      As Reported                        Adjusted
Income statement      Rotating       Adjustment          Rotating       
                      Electrical     (Non-GAAP)          Electrical
                                                         (Non-GAAP)
Net sales              $ 50,658,000   $ --                $ 50,658,000  
Cost of goods sold     34,332,000     --                  34,332,000    
Gross profit           16,326,000     --                  16,326,000    
Gross margin          32.2%                              32.2%          
Operating expenses:                                                     
General and            8,848,000      (3,222,000)   (1)   5,626,000     
administrative
Sales and marketing    1,983,000      --                  1,983,000     
Research and           445,000        --                  445,000       
development
Total operating        11,276,000     (3,222,000)         8,054,000     
expenses
Operating income       5,050,000      3,222,000           8,272,000     
Interest expense, net  2,384,000      1,501,000     (2)   3,885,000    (B)
Income before income   2,666,000      1,721,000           4,387,000     
tax expense
Income tax expense     880,000        831,000       (3)   1,711,000    (B)
Net income             $ 1,786,000    $ 890,000           $ 2,676,000  (A)
                                                                        
Diluted net income per share                              $ 0.19        
Weighted average
number of shares                                                        
outstanding:
Diluted                                                  14,165,613     (4) 
Depreciation and amortization                             699,000      (B)
Adjusted EBITDA - Sum                                     $ 8,971,000   
of (A) and (B)
                                                                        
(1) Financing,
severance and other    1,443,000                                        
fees
 Share-based           917,000                                          
compensation expense
 Mark-to-market        862,000                                          
(gain)/loss
 Total                 3,222,000                                        
(2) Intersegment interest income from the Undercar                      
product line segment is $1,501,000.
(3) Tax effected for Rotating Electrical at 39%                         
tax rate.
(4) Excludes the impact of 360,000 shares in connection with the consideration
for the May 6, 2011 Fenco acquisition.

                                                   
Reconciliation of Non-GAAP Financial Measures     Exhibit 6
                       
                      Nine months ended December 31, 2012 (Unaudited)
                      As Reported                       Adjusted
Income statement      Rotating       Adjustment         Rotating        
                      Electrical     (Non-GAAP)         Electrical
                                                        (Non-GAAP)
Net sales              $ 155,109,000  $ --               $ 155,109,000  
Cost of goods sold     103,868,000    --                 103,868,000    
Gross profit           51,241,000     --                 51,241,000     
Gross margin          33.0%                             33.0%           
Operating expenses:                                                     
General and            19,154,000     (3,363,000)  (1)   15,791,000     
administrative
Sales and marketing    5,479,000      --                 5,479,000      
Research and           1,342,000      --                 1,342,000      
development
Total operating        25,975,000     (3,363,000)        22,612,000     
expenses
Operating income       25,266,000     3,363,000          28,629,000     
Interest expense, net  8,373,000      3,669,000    (2)   12,042,000    (B)
Income before income   16,893,000     (306,000)          16,587,000     
tax expense
Income tax expense     6,237,000      232,000      (3)   6,469,000     (B)
Net income             $ 10,656,000   $ (538,000)        $ 10,118,000  (A)
                                                                        
Diluted net income per share                             $ 0.73         
Weighted average
number of shares                                                        
outstanding:
Diluted                                                 13,923,080      (4) 
Depreciation and amortization                            2,137,000     (B)
Adjusted EBITDA - Sum                                    $ 30,766,000   
of (A) and (B)
                                                                        
(1) Financing,
severance and other    1,982,000                                        
fees
 Share-based           917,000                                          
compensation expense
 Mark-to-market        464,000                                          
(gain)/loss
 Total                 3,363,000                                        
(2) Intersegment interest income from the Undercar product line         
segment is $3,669,000.
(3) Tax effected for Rotating Electrical at 39% tax rate.               
(4) Excludes the impact of 360,000 shares in connection with the        
consideration for the May 6, 2011 Fenco acquisition.

                                                                              
Reconciliation of Non-GAAP Financial Measures     Exhibit 7                   
                      
                     Three months ended December 31, 2011 (Unaudited)  
                     As Reported                        Adjusted
Income statement     Rotating       Adjustment          Rotating       
                     Electrical     (Non-GAAP)          Electrical
                                                        (Non-GAAP)
Net sales             $ 42,136,000   $ (241,000)   (1)   $ 41,895,000  
Cost of goods sold    29,500,000     --                  29,500,000    
Gross profit          12,636,000     (241,000)           12,395,000    
Gross margin         30.0%                              29.6%          
Operating expenses:                                                    
General and           4,495,000      (136,000)     (2)   4,359,000     
administrative
Sales and marketing   2,058,000      (112,000)     (3)   1,946,000     
Research and          453,000        --                  453,000       
development
Total operating       7,006,000      (248,000)           6,758,000     
expenses
Operating income      5,630,000      7,000               5,637,000     
Interest expense,     767,000        782,000       (4)   1,549,000    (B)
net
Income before income  4,863,000      (775,000)           4,088,000     
tax expense
Income tax expense    1,835,000      (241,000)     (5)   1,594,000    (B)
Net income            $ 3,028,000    $ (534,000)         $ 2,494,000  (A)
                                                                       
Diluted net income per share                             $ 0.20        
Weighted average
number of shares                                                       
outstanding:
Diluted                                                 12,297,749     (6) 
Depreciation and amortization                            857,000      (B)
Adjusted EBITDA -                                        $ 6,494,000   
Sum of (A) and (B)
                                                                       
(1) Intersegment
revenue, net of cost  241,000                                          
of goods sold
(2) Fenco,
financing,            624,000                                          
professional and
other fees
 Mark-to-market       (488,000)                                        
(gain)/loss
 Total                136,000                                          
(3) Fenco related
sales and marketing   112,000                                          
expenses
(4) Intersegment interest income from the                              
Undercar product line segment is $782,000.
(5) Tax effected for
Rotating Electrical                                                    
at 39% tax rate.
(6) Excludes the impact of 360,000 shares in connection with the       
consideration for the May 6, 2011 Fenco acquisition.

                                                   
Reconciliation of Non-GAAP Financial Measures     Exhibit 8
                     
                    Nine months ended December 31, 2011 (Unaudited)
                    As Reported                         Adjusted
Income statement    Rotating       Adjustment           Rotating        
                    Electrical     (Non-GAAP)           Electrical
                                                        (Non-GAAP)
Net sales            $ 128,501,000  $ (1,853,000)  (1)   $ 126,648,000  
Cost of goods sold   88,018,000     --                   88,018,000     
Gross profit         40,483,000     (1,853,000)          38,630,000     
Gross margin        31.5%                               30.5%           
Operating expenses:                                                     
General and          16,809,000     (4,223,000)    (2)   12,586,000     
administrative
Sales and marketing  5,789,000      (238,000)      (3)   5,551,000      
Research and         1,270,000      --                   1,270,000      
development
Acquisition costs    713,000        (713,000)      (4)   --             
Total operating      24,581,000     (5,174,000)          19,407,000     
expenses
Operating income     15,902,000     3,321,000            19,223,000     
Interest expense,    2,272,000      1,727,000      (5)   3,999,000     (B)
net
Income before        13,630,000     1,594,000            15,224,000     
income tax expense
Income tax expense   5,350,000      588,000        (6)   5,937,000     (B)
Net income           $ 8,280,000    $ 1,006,000          $ 9,287,000   (A)
                                                                        
Diluted net income per share                             $ 0.75         
Weighted average
number of shares                                                        
outstanding:
Diluted                                                 12,459,762      (7) 
Depreciation and amortization                            2,634,000     (B)
Adjusted EBITDA -                                        $ 21,857,000   
Sum of (A) and (B)
                                                                        
(1) Intersegment
revenue, net of      1,853,000                                          
cost of goods sold
(2) Fenco,
financing,           2,824,000                                          
professional and
other fees
 Mark-to-market      1,399,000                                          
(gain)/loss
 Total               4,223,000                                          
(3) Fenco related
sales and marketing  238,000                                            
expenses
(4) Fenco related    713,000                                            
acquisition costs
(5) Intersegment interest income from the Undercar product line         
segment is $1,727,000
(6) Tax effected for Rotating Electrical at 39% tax rate.               
(7) Excludes the impact of 312,873 shares in connection with the        
consideration for the May 6, 2011 Fenco acquisition.

CONTACT: Gary S. Maier
         Maier & Company, Inc.
         (310) 471-1288
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