Motorcar Parts of America Reports Fiscal 2013 Fourth Quarter and Year-End Results

Motorcar Parts of America Reports Fiscal 2013 Fourth Quarter and Year-End
Results

Rotating Electrical Sales Up 18.2 Percent for Year

LOS ANGELES, June 17, 2013 (GLOBE NEWSWIRE) -- Motorcar Parts of America, Inc.
(Nasdaq:MPAA) today reported results for its fiscal 2013 fourth quarter and
year ended March 31, 2013 – reflecting record sales for its rotating
electrical business offset by the establishment of specific charge-off
accruals related to its former undercar business segment.

Rotating electrical net sales for the fiscal 2013 fourth quarter increased
11.8 percent to $58.0 million from $51.9 million for the same period last
year. Gross profit for the rotating electrical segment for the fourth quarter
was $18.1 million compared with $16.8 million a year earlier. Gross profit as
a percentage of sales for the rotating electrical segment was 31.2 percent
compared with 32.5 percent last year. Excluding certain undercar-related costs
and non-cash expenses noted in the Reconciliation of Non-GAAP Financial
Measures tables below, adjusted EBITDA for the company's rotating electrical
segment was $10.5 million compared with $10.3 million for the same period a
year earlier, and adjusted net income was $3.6 million, or $0.26 per diluted
share, compared with $3.7 million, or $0.30 per diluted share, for the same
period a year earlier.

The company reported a consolidated net loss for the fiscal 2013 fourth
quarter of $73.7 million, or $5.09 per share, compared with a net loss of
$12.9 million, or $1.03 per share, a year earlier. Consolidated results
include specific charge-off accruals related to the company's investment in
its former undercar business segment, and the required impairment of all
intangible assets on Fenco's balance sheet as a result of its pending
liquidation. On a non-GAAP adjusted basis, consolidated net loss was $2.1
million, or $0.14 per share compared with a net loss of $4.0 million, or $0.32
per share, a year ago.

Rotating electrical net sales for fiscal 2013 increased 18.2 percent to $213.2
million from $180.4 million for the prior fiscal year. Gross profit for the
rotating electrical segment for fiscal 2013 was $69.3 million compared with
$57.3 million a year earlier. Gross profit as a percentage of sales for the
rotating electrical segment was 32.5 percent compared with 31.8 percent last
year. Excluding certain undercar-related costs and non-cash expenses noted in
the Reconciliation of Non-GAAP Financial Measures tables below, adjusted
EBITDA for the company's rotating electrical segment was $41.2 million
compared with $32.1 million for the prior fiscal year, and adjusted net income
was $13.8 million, or $0.98 per diluted share, reflecting higher interest
expense, compared with $13.0 million, or $1.04 per diluted share, for fiscal
2012.

The company reported a consolidated net loss for fiscal 2013 of $91.5 million,
or $6.39 per share, compared with a net loss of $48.5 million, or $3.90 per
share, a year ago. Consolidated results include specific charge-off accruals
related to the company's investment in its former undercar business segment,
and the required impairment of all intangible assets on Fenco's balance sheet
as a result of its pending liquidation. On a non-GAAP adjusted basis,
consolidated net loss was $12.2 million, or $0.85 per share compared with a
net loss of $10.4 million, or $0.84 per share for the same period a year
earlier.

"While we had made significant progress in our turnaround efforts for Fenco,
it became clear that the cost savings and operational efficiencies that we
achieved were not sufficient to continue our investment under the existing
economic model. However, our rotating electrical business is the cornerstone
of our company and it is performing well. We expect continued growth,
supported by strong liquidity with a cash position of $19.0 million and
approximately $18.0 million available under the company's revolving credit
facility at fiscal year end. Our management team is resilient, our customers
are supportive and we look forward to the opportunities ahead," said Selwyn
Joffe, chairman, president and chief executive officer of Motorcar Parts of
America.

Joffe noted that the company expects to realize tax benefits of approximately
$30 million as a result of the losses incurred through Fenco, which should
further enhance Motorcar Parts of America's liquidity.

He added that during the fourth quarter the company repurchased an aggregate
135, 327 shares and vested options at a weighted average price of $4.84, or a
total of $654,675.

Use of Non-GAAP Measures

We define adjusted net loss as net loss adjusted for matters affecting net
sales for our undercar product line, financing, consulting and other fees,
share-based compensation expense, undercar product lines not supported, and
other matters. We define Adjusted EBITDA as adjusted net income (loss), plus
interest expense, income tax expense and depreciation and amortization. We
calculate those measures for the entire company as well as the rotating
electrical segment. Adjusted net loss does not reflect many items that affect
the company's net loss, including many items related to Fenco. 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 and adjusted net loss are not measures of financial
performance under GAAP, and should not be considered as alternatives to net
income or income from operations as a measure of liquidity. Adjusted EBITDA
and adjusted net loss have significant limitations as analytical tools, 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 and adjusted net loss, for the company and the
rotating electrical segment, see the financial tables included in the press
release.

Teleconference and Web Cast

Selwyn Joffe, chairman, president and chief executive officer, and David Lee,
chief financial officer, will host an investor conference call the same day 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 on Monday, June 17, 2013 through 8:59 p.m. Pacific time on
Monday, June 24, 2013 by calling (855)-859-2056 (domestic) or (404)-537-3406
(international) and using access code: 93948671.

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. 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, 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
                                                           
              Three Months Ended              Twelve Months Ended
              March 31,                      March 31,
              2013            2012            2013            2012
              (Unaudited)                                    
                                                           
Net sales      $89,336,000   $101,464,000  $406,266,000  $363,687,000
Cost of goods  86,486,000     94,188,000     350,538,000    335,980,000
sold
Gross profit   2,850,000      7,276,000      55,728,000     27,707,000
Operating                                                   
expenses:
General and    8,990,000      9,108,000      44,526,000     38,881,000
administrative
Sales and      2,583,000      3,785,000      12,713,000     12,804,000
marketing
Research and   924,000        495,000        2,628,000      1,765,000
development
Impairment of
goodwill and   84,686,000     --            84,686,000     --
intangible
assets
Impairment of
plant and      --            --            --            1,031,000
equipment
Acquisition    --            --            --            713,000
costs
Total
operating      97,183,000     13,388,000     144,553,000    55,194,000
expenses
Operating      (94,333,000)   (6,112,000)    (88,825,000)   (27,487,000)
(loss) income
Other expense:                                              
Interest       7,271,000      5,690,000      24,406,000     14,255,000
expense, net
(Loss) income
before income  (101,604,000)  (11,802,000)   (113,231,000)  (41,742,000)
tax expense
Income tax     (27,953,000)   1,141,000      (21,720,000)   6,772,000
expense
                                                           
Net (loss)     $(73,651,000) $(12,943,000) $(91,511,000) $(48,514,000)
income
                                                           
Basic net
(loss) income  $(5.09)       $(1.03)       $(6.39)       $(3.90)
per share
                                                           
Diluted net
(loss) income  $(5.09)       $(1.03)       $(6.39)       $(3.90)
per share
                                                           
Weighted
average number                                              
of shares
outstanding:
Basic          14,462,457      12,519,421      14,327,310      12,442,684
                                                           
Diluted        14,462,457      12,519,421      14,327,310      12,442,684



MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
March 31,
                                                              
                                                2013           2012
ASSETS                                                         
Current assets:                                                
Cash                                            $19,434,000  $32,617,000
Short-term investments                          411,000       342,000
Accounts receivable — net                       14,311,000    20,036,000
Inventory— net                                  61,090,000    95,071,000
Inventory unreturned                            12,150,000    9,819,000
Deferred income taxes                           34,885,000    3,793,000
Prepaid expenses and other current assets       10,350,000    6,553,000
Total current assets                            152,631,000   168,231,000
Plant and equipment — net                      14,083,000    12,738,000
Long-term core inventory — net                 158,476,000   194,406,000
Long-term core inventory deposits              27,610,000    26,939,000
Long-term deferred income taxes                2,546,000     1,857,000
Goodwill                                       --            68,356,000
Intangible assets — net                        3,983,000     22,484,000
Other assets                                   7,745,000     6,887,000
TOTAL ASSETS                                    $367,074,000 $501,898,000
LIABILITIES AND SHAREHOLDERS'EQUITY                           
Current liabilities:                                          
Accounts payable                                $113,753,000 $126,100,000
Accrued liabilities                             14,856,000    19,379,000
Customer finished goods returns accrual         24,978,000    21,695,000
Other current liabilities                       3,009,000     2,745,000
Current portion of term loan                    3,900,000     500,000
Revolving loan - in default                     49,277,000    --
Term loan - in default                          10,000,000    --
Total current liabilities                       219,773,000   170,419,000
Term loan, less current portion                80,110,000    84,500,000
Revolving loan                                 --            48,884,000
Deferred core revenue                          12,014,000    9,775,000
Customer core returns accrual                  50,414,000    113,702,000
Other liabilities                              8,277,000     999,000
Total liabilities                               370,588,000   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; 14,460,979 and
12,533,821 shares issued; 14,460,979 and         145,000       125,000
12,519,421 outstanding at March 31, 2013 and
2012, respectively
Treasury stock, at cost, none at March 31, 2013
and 14,400 shares of common stock at March 31,   --           (89,000)
2012
Additional paid-in capital                      114,737,000   98,627,000
Additional paid-in capital-warrant              --           1,879,000
Accumulated other comprehensive loss            (846,000)     (884,000)
Accumulated deficit                             (117,550,000) (26,039,000)
Total shareholders' (deficit) equity            (3,514,000)   73,619,000
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY      $367,074,000 $501,898,000



MOTORCAR PARTS OF AMERICA, INC.
Consolidating Statement of Operations
Year Ended March 31, 2013
                                                           
               MPA (1)         Fenco (2)        Eliminations  Consolidated
                                                           
Net sales       $213,151,000  $193,115,000   $--        $406,266,000
Cost of goods   143,810,000    206,728,000     --          350,538,000
sold
Gross profit    69,341,000     (13,613,000)    --          55,728,000
(loss)
Operating                                                   
expenses:
General and     107,602,000    18,719,000      (81,795,000) 44,526,000
administrative
Sales and       7,290,000      5,423,000       --          12,713,000
marketing
Research and    1,930,000      698,000         --          2,628,000
development
Impairment of
goodwill and    --            84,686,000      --          84,686,000
intangible
assets
Total operating 116,822,000    109,526,000     (81,795,000) 144,553,000
expenses
Operating loss  (47,481,000)   (123,139,000)   81,795,000   (88,825,000)
Other expense:                                              
Interest        12,324,000     12,082,000      --          24,406,000
expense, net
Loss before
income tax      (59,805,000)   (135,221,000)   81,795,000   (113,231,000)
(benefit)
expense
Income tax
(benefit)       (21,759,000)   39,000          --          (21,720,000)
expense
                                                           
Net loss        $(38,046,000) $(135,260,000) $81,795,000 $(91,511,000)
                                                           
(1) MPA includes Motorcar Parts of America, Inc., MVR Products Pte Limited,
Unijoh Sdn. Bhd., Motorcar Parts de Mexico, S.A. de C.V., Central Auto Parts
Co. Ltd., and Motorcar Parts of Canada, Inc.
                                                           
(2) Fenco includes Fenwick Automotive Products Limited, Introcan, Inc., and
Fapco S.A. de C.V.



MOTORCAR PARTS OF AMERICA, INC.
Consolidating Balance Sheets
March 31, 2013
                                                               
                    MPA (1)        Fenco (2)      Eliminations    Consolidated
ASSETS                                                          
Current assets:                                                 
Cash                $19,346,000  $88,000      $--          $19,434,000
Short-term           411,000       --            --             411,000
investments
Accounts receivable  3,884,000     12,550,000    (2,123,000)    14,311,000
— net
Inventory— net      33,139,000    29,252,000    (1,301,000)    61,090,000
Inventory            6,981,000     5,169,000     --             12,150,000
unreturned
Deferred income      30,075,000    4,810,000     --             34,885,000
taxes
Prepaid expenses and
other current        8,195,000     2,155,000     --             10,350,000
assets
Total current        102,031,000   54,024,000    (3,424,000)    152,631,000
assets
Plant and equipment 10,036,000    4,047,000     --             14,083,000
— net
Investment in       4,946,000     --            (4,946,000)    --
Fenco
Long-term core      118,211,000   40,265,000    --             158,476,000
inventory — net
Long-term core      27,610,000    --            --             27,610,000
inventory deposits
Long-term deferred  2,546,000     --            --             2,546,000
income taxes
Intangible assets — 3,983,000     --            --             3,983,000
net
Other assets       7,723,000     22,000        --             7,745,000
TOTAL ASSETS        $277,086,000 $98,358,000  $(8,370,000)  $367,074,000
LIABILITIES AND                                                 
SHAREHOLDERS'EQUITY
Current                                                         
liabilities:
Accounts payable    $40,009,000  $106,332,000 $(32,588,000) $113,753,000
Accrued liabilities 9,326,000     5,530,000     --            14,856,000
Customer finished
goods returns        14,289,000    10,689,000    --            24,978,000
accrual
Other current        1,192,000     1,817,000     --            3,009,000
liabilities
Current portion of   3,900,000     --           --            3,900,000
term loan
Revolving loan - in                49,277,000    --            49,277,000
default
Term loan - in       --           10,000,000    --            10,000,000
default
Total current        68,716,000    183,645,000   (32,588,000)   219,773,000
liabilities
Term loan, less     80,110,000    --            --             80,110,000
current portion
Deferred core       12,014,000    --           --            12,014,000
revenue
Debenture loan to   --           52,631,000    (52,631,000)   --
MPA
Customer core       --           50,414,000    --            50,414,000
returns accrual
Other liabilities  3,481,000     4,796,000                    8,277,000
Total liabilities   164,321,000   291,486,000   (85,219,000)   370,588,000
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;
14,460,979 and
12,533,821 shares    145,000       --           --            145,000
issued; 14,460,979
and 12,519,421
outstanding at March
31, 2013 and 2012,
respectively
Treasury stock, at
cost, none at March
31, 2013 and 14,400  --           --           --            --
shares of common
stock at March 31,
2012
Additional paid-in   114,737,000   4,946,000     (4,946,000)    114,737,000
capital
Accumulated other    (846,000)     --           --            (846,000)
comprehensive loss
Accumulated deficit (1,271,000)   (198,074,000) 81,795,000     (117,550,000)
Total shareholders'  112,765,000   (193,128,000) 76,849,000     (3,514,000)
equity (deficit)
TOTAL LIABILITIES
AND SHAREHOLDERS'    $277,086,000 $98,358,000  $(8,370,000)  $367,074,000
EQUITY
                                                               
                                                               
(1) MPA includes Motorcar Parts of America, Inc., MVR Products Pte Limited,
Unijoh Sdn. Bhd., Motorcar Parts de Mexico, S.A. de C.V., Central Auto Parts Co.
Ltd., and Motorcar Parts of Canada, Inc.
                                                               
(2) Fenco includes Fenwick Automotive Products Limited, Introcan, Inc., and Fapco
S.A. de C.V.

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 fourth quarter and twelve-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, also referred to as the undercar
segment. Income statement information relating to the Company's reportable
segments for the three months and twelve months ended March 31, 2013 is as
follows:

                                                                                                                                  
Reconciliation of Non-GAAP Financial Measures                                                                        Exhibit 1      
                                                                                                                                
                                    Three months ended March 31, 2013 (Unaudited)
                                                                                                                                
                                                                                                                  Adjusted       
                                    Rotating        Undercar                      As Reported     Adjustment        Consolidated   
Income statement                     Electrical      Product Line     Eliminations  Consolidated    (Non-GAAP)   (1) (Non-GAAP)   
                                                                                                                                
Net sales                            $58,042,000   $31,294,000    $--        $89,336,000   $(5,095,000) (2) $84,241,000  
Cost of goods sold                   39,942,000     46,544,000      --          86,486,000     (15,518,000)  (3) 70,968,000    
Gross profit (loss)                  18,100,000     (15,250,000)    --          2,850,000      10,423,000         13,273,000    
Gross margin                         31.2%           -48.7%                        3.2%                               15.8%          
Operating expenses:                                                                                                              
General and administrative           88,448,000     2,337,000       (81,795,000) 8,990,000      (802,000)     (4) 8,188,000     
Sales and marketing                  1,811,000      772,000         --          2,583,000      --                2,583,000     
Research and development             588,000        336,000         --          924,000        (75,000)      (5) 849,000       
Impairment of goodwill and           --            84,686,000      --          84,686,000     (84,686,000)       --           
intangible assets
Total operating expenses             90,847,000     88,131,000      (81,795,000) 97,183,000     (85,563,000)       11,620,000    
Operating income (loss)              (72,747,000)   (103,381,000)   81,795,000   (94,333,000)   95,986,000         1,653,000     
Interest expense, net                3,951,000      3,320,000       --          7,271,000      (1,683,000)   (6) 5,588,000     (B)
Income (loss) before income tax      (76,698,000)   (106,701,000)   81,795,000   (101,604,000)  97,669,000         (3,935,000)   
expense (benefit)
Income tax expense (benefit)         (27,996,000)   43,000          --          (27,953,000)   30,320,000    (7) 2,367,000     (B)
Net income (loss)                    $(48,702,000) $(106,744,000) $81,795,000 $(73,651,000) $67,349,000       $(6,302,000) (A)
Undercar product lines not supported                                                            4,230,000      (8) 4,230,000      
Net income (loss) - Adjusted                                                                    $71,579,000       $(2,072,000) 
                                                                                                                                
Diluted net income (loss) per share                                              $(5.09)       $4.66             $(0.44)      
Undercar product lines not supported                                                            $0.29        (8) $0.29        
Diluted net income (loss) per share                                                             $4.95             $(0.14)      
- Adjusted
Weighted average number of shares                                                                                                
outstanding:
Diluted                                                                          14,462,457      14,462,457          14,462,457     
Depreciation and amortization                                                                                      1,294,000     (B)
Adjusted EBITDA - Sum of (A) and (B)                                                                               $2,947,000   
Undercar product lines not supported                                                                               4,230,000     
Adjusted EBITDA total                                                                                              $7,177,000   
                                                                                                                                
(1) See following Exhibits for detailed segment analysis of results                                                                
of operations.
                                                                                                                                
                                    Rotating        Undercar                                                                      
                                    Electrical      Product Line     Total                                                         
(2) Contractual customer
penalties/unique customer            --            436,000         436,000                                                      
allowances
Stock adjustment - sales/warranty    --            (5,531,000)     (5,531,000)                                                  
adjustment
Total                                --            (5,095,000)     (5,095,000)                                                  
                                                                                                                                
(3) Unusual inventory purchases and  --            38,000          38,000                                                       
freight expenses
Stock adjustment - cost of goods     --            2,831,000       2,831,000                                                    
sold
Inventory                            --            12,649,000      12,649,000                                                   
obsolescence/write-down/inefficiency
Total                                --            15,518,000      15,518,000                                                   
                                                                                                                                
(4) Financing, severance,            1,402,000      185,000         1,587,000                                                    
professional and other fees
Share-based compensation expense     93,000         --             93,000                                                       
Mark-to-market (gain)/loss           (878,000)      --             (878,000)                                                    
Total                                617,000        185,000         802,000                                                      
                                                                                                                                
(5) Consulting fees                  75,000         --             75,000                                                       
                                                                                                                                
(6) Intersegment interest income for the rotating electrical segment and intersegment interest expense for the Undercar product line    
segment is $1,513,000, so eliminates in consolidation.
Reflects $1,683,000 adjustment for one-time bank interest charges related to Fenco.                                                     
(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 January 1, 2013 to March 31, 2013 of $4,230,000 
- ($0.29) per share.

                                                                                                                                  
                                                                                                                                  
Reconciliation of Non-GAAP Financial                                                                                Exhibit 2       
Measures
                                                                                                                                  
                                    Twelve months ended March 31, 2013 (Unaudited)
                                                                                                                                  
                                                                                                                   Adjusted        
                                    Rotating        Undercar                      As Reported     Adjustment         Consolidated    
Income statement                     Electrical      Product Line     Eliminations  Consolidated    (Non-GAAP)    (1) (Non-GAAP)    
                                                                                                                                  
Net sales                            $213,151,000  $193,115,000   $--        $406,266,000  $(43,806,000) (2) $362,460,000  
Cost of goods sold                   143,810,000    206,728,000     --          350,538,000    (48,536,000)   (3) 302,002,000    
Gross profit (loss)                  69,341,000     (13,613,000)    --          55,728,000     4,730,000           60,458,000     
Gross margin                         32.5%           -7.0%                         13.7%                               16.7%           
Operating expenses:                                                                                                                
General and administrative           107,602,000    18,719,000      (81,795,000) 44,526,000     (10,828,000)   (4) 33,698,000     
Sales and marketing                  7,290,000      5,423,000       --          12,713,000     (747,000)      (5) 11,966,000     
Research and development             1,930,000      698,000         --          2,628,000      (75,000)       (6) 2,553,000      
Impairment of goodwill and           --            84,686,000      --          84,686,000     (84,686,000)        --            
intangible assets
Total operating expenses             116,822,000    109,526,000     (81,795,000) 144,553,000    (96,336,000)        48,217,000     
Operating income (loss)              (47,481,000)   (123,139,000)   81,795,000   (88,825,000)   101,066,000         12,241,000     
Interest expense, net                12,324,000     12,082,000      --          24,406,000     (1,683,000)    (7) 22,723,000     (B)
Income (loss) before income tax      (59,805,000)   (135,221,000)   81,795,000   (113,231,000)  102,749,000         (10,482,000)   
expense (benefit)
Income tax expense (benefit)         (21,759,000)   39,000          --          (21,720,000)   30,552,000     (8) 8,832,000      (B)
Net income (loss)                    $(38,046,000) $(135,260,000) $81,795,000 $(91,511,000) $72,197,000        $(19,314,000) (A)
Undercar product lines not supported                                                            7,115,000      (9) 7,115,000       
Net income (loss) - Adjusted                                                                    $79,312,000        $(12,199,000) 
                                                                                                                                  
Diluted net income (loss) per share                                              $(6.39)       $5.04              $(1.35)       
Undercar product lines not supported                                                            $0.50         (9) $0.50         
Diluted net income (loss) per share                                                             $5.54              $(0.85)       
- Adjusted
Weighted average number of shares                                                                                                  
outstanding:
Diluted                                                                          14,327,310      14,327,310           14,327,310      
Depreciation and amortization                                                                                       5,285,000      (B)
Adjusted EBITDA - Sum of (A) and (B)                                                                                $17,526,000   
Undercar product lines not supported                                                                                7,115,000      
Adjusted EBITDA total                                                                                               $24,641,000   
                                                                                                                                  
(1) See following Exhibits for detailed segment analysis of results                                                                     
of operations.
                                                                                                                                  
                                    Rotating        Undercar                                                                        
                                    Electrical      Product Line     Total                                                           
(2) Contractual customer
penalties/unique customer            --            4,587,000       4,587,000                                                      
allowances
Stock adjustment - sales/warranty    --            2,390,000       2,390,000                                                      
adjustment
Core revenue - discontinued customer --            (50,783,000)    (50,783,000)                                                   
Total                                --            (43,806,000)    (43,806,000)                                                   
                                                                                                                                  
(3) Third-party warehouse exit       --            1,402,000       1,402,000                                                      
termination fees
Severance                            --            1,272,000       1,272,000                                                      
Unusual inventory purchases and      --            512,000         512,000                                                        
freight expenses
Stock adjustment - cost of goods     --            (2,285,000)     (2,285,000)                                                    
sold
Inventory                            --            15,986,000      15,986,000                                                     
obsolescence/write-down/inefficiency
Core cost of revenue - discontinued  --            31,649,000      31,649,000                                                     
customer
Total                                --            48,536,000      48,536,000                                                     
                                                                                                                                  
(4) Financing, severance,            3,384,000      6,824,000       10,208,000                                                     
professional and other fees
Share-based compensation expense     1,010,000      24,000          1,034,000                                                      
Mark-to-market (gain)/loss           (414,000)      --             (414,000)                                                      
Total                                3,980,000      6,848,000       10,828,000                                                     
                                                                                                                                  
(5) Severance and professional fees  --            747,000         747,000                                                        
                                                                                                                                  
(6) Consulting fees                  75,000         --             75,000                                                         
                                                                                                                                  
(7) Intersegment interest income for the rotating electrical segment and intersegment interest expense for the Undercar product line segment
is $5,182,000, so eliminates in consolidation.
Reflects $1,683,000 adjustment for one-time bank interest charges related to Fenco.                                                      
(8) 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.
(9) Certain Undercar product lines not supported resulted in a loss for the period from April 1, 2012 to March 31, 2013 of $7,115,000 -
($0.50) per share.

                                                                                     
                                                                                     
Reconciliation of Non-GAAP Financial                                    Exhibit 3      
Measures
                                                                                     
                                    Three months ended March 31, 2013 (Unaudited)
                                                                       Adjusted       
                                    As Reported                         Undercar       
                                    Undercar         Adjustment          Product Line   
Income statement                     Product Line     (Non-GAAP)          (Non-GAAP)     
                                                                                     
Net sales                            $31,294,000    $(5,095,000) (2) $26,199,000  
Cost of goods sold                   46,544,000      (15,518,000)  (3) 31,026,000    
Gross profit (loss)                  (15,250,000)    10,423,000         (4,827,000)   
Gross margin                         -48.7%                              -18.4%         (1)
Operating expenses:                                                                   
General and administrative           2,337,000       (185,000)     (4) 2,152,000     
Sales and marketing                  772,000         --                772,000       
Research and development             336,000                            336,000       
Impairment of goodwill and           84,686,000      (84,686,000)       --           
intangible assets
Total operating expenses             88,131,000      (84,871,000)       3,260,000     
Operating income (loss)              (103,381,000)   95,294,000         (8,087,000)   
Interest expense, net                3,320,000       (1,513,000)   (5) 1,807,000     (B)
Income (loss) before income tax      (106,701,000)   96,807,000         (9,894,000)   
expense (benefit)
Income tax expense (benefit)         43,000          --           (6) 43,000        (B)
Net income (loss)                    $(106,744,000) $96,807,000       $(9,937,000) (A)
Undercar product lines not supported                                    4,230,000     (7)
Net income (loss) - Adjusted                                            $(5,707,000) 
                                                                                     
Diluted net income (loss) per share                                     $(0.69)      
Undercar product lines not supported                                    $0.29        (7)
Diluted net income (loss) per share                                     $(0.39)      
- Adjusted
Weighted average number of shares                                                     
outstanding:
Diluted                                                                 14,462,457     
Depreciation and amortization                                           582,000       (B)
Adjusted EBITDA - Sum of (A) and (B)                                    $(7,505,000) 
Undercar product lines not supported                                    4,230,000     
Adjusted EBITDA total                                                   $(3,275,000) 
                                                                                     
(1) Adjusted further for the impact on gross margins from the loss from Undercar product lines
not supported of 16.1%, total gross margin would have been negative (2.3%) for the Undercar
product line segment.
                                                                                     
(2) Contractual customer
penalties/unique customer            436,000                                          
allowances
Stock adjustment - sales/warranty    (5,531,000)                                      
adjustment
Total                                (5,095,000)                                      
                                                                                     
(3) Unusual inventory purchases and  38,000                                           
freight expenses
Stock adjustment - cost of goods     2,831,000                                        
sold
Inventory                            12,649,000                                       
obsolescence/write-down/inefficiency
Total                                15,518,000                                       
                                                                                     
(4) Financing, severance,            185,000                                          
professional and other fees
                                                                                     
(5) Intersegment interest expense for the Undercar product line segment is $1,513,000.
(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 January
1, 2013 to March 31, 2013 of $4,230,000 - ($0.29) per share.

                                                                                       
                                                                                       
Reconciliation of Non-GAAP Financial                                     Exhibit 4       
Measures
                                                                                       
                                    Twelve months ended March 31, 2013 (Unaudited)
                                                                        Adjusted        
                                    As Reported                          Undercar        
                                    Undercar         Adjustment           Product Line    
Income statement                     Product Line     (Non-GAAP)           (Non-GAAP)      
                                                                                       
Net sales                            $193,115,000   $(43,806,000) (2) $149,309,000  
Cost of goods sold                   206,728,000     (48,536,000)   (3) 158,192,000    
Gross profit (loss)                  (13,613,000)    4,730,000           (8,883,000)    
Gross margin                         -7.0%                                -5.9%           (1)
Operating expenses:                                                                     
General and administrative           18,719,000      (6,848,000)    (4) 11,871,000     
Sales and marketing                  5,423,000       (747,000)      (5) 4,676,000      
Research and development             698,000         --                 698,000        
Impairment of goodwill and           84,686,000      (84,686,000)        --            
intangible assets
Total operating expenses             109,526,000     (92,281,000)        17,245,000     
Operating income (loss)              (123,139,000)   97,011,000          (26,128,000)   
Interest expense, net                12,082,000      (5,182,000)    (6) 6,900,000      (B)
Income (loss) before income tax      (135,221,000)   102,193,000         (33,028,000)   
expense (benefit)
Income tax expense (benefit)         39,000          --            (7) 39,000         (B)
Net income (loss)                    $(135,260,000) $102,193,000       $(33,067,000) (A)
Undercar product lines not supported                                     7,115,000      (8)
Net income (loss) - Adjusted                                             $(25,952,000) 
                                                                                       
Diluted net income (loss) per share                                      $(2.31)       
Undercar product lines not supported                                     $0.50         (8)
Diluted net income (loss) per share                                      $(1.81)       
- Adjusted
Weighted average number of shares                                                       
outstanding:
Diluted                                                                  14,327,310      
Depreciation and amortization                                            2,436,000      (B)
Adjusted EBITDA - Sum of (A) and (B)                                     $(23,692,000) 
Undercar product lines not supported                                     7,115,000      
Adjusted EBITDA total                                                    $(16,577,000) 
                                                                                       
(1) Adjusted further for the impact on gross margins from the loss from Undercar product lines
not supported of 4.7%, total gross margin would have been negative (1.2%) for the Undercar
product line segment.
                                                                                       
(2) Contractual customer
penalties/unique customer            4,587,000                                          
allowances
Stock adjustment - sales/warranty    2,390,000                                          
adjustment
Core revenue - discontinued customer (50,783,000)                                       
Total                                (43,806,000)                                       
                                                                                       
(3) Third-party warehouse exit       1,402,000                                          
termination fees
Severance                            1,272,000                                          
Unusual inventory purchases and      512,000                                            
freight expenses
Stock adjustment - cost of goods     (2,285,000)                                        
sold
Inventory                            15,986,000                                         
obsolescence/write-down/inefficiency
Core cost of revenue - discontinued  31,649,000                                         
customer
Total                                48,536,000                                         
                                                                                       
(4) Financing, severance,            6,824,000                                          
professional and other fees
Share-based compensation expense     24,000                                             
Total                                6,848,000                                          
                                                                                       
(5) Severance                        747,000                                            
                                                                                       
(6) Intersegment interest expense for the Undercar product line segment is $5,182,000.
(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 March 31, 2013 of $7,115,000 - ($0.50) per share.

                                                                    
                                                                    
Reconciliation of
Non-GAAP Financial                                      Exhibit 5     
Measures
                                                                    
                   Three months ended March 31, 2013 (Unaudited)
                                                       Adjusted      
                   As Reported                          Rotating      
                   Rotating         Adjustment           Electrical    
Income statement    Electrical       (Non-GAAP)           (Non-GAAP)    
                                                                    
Net sales           $58,042,000    $--               $58,042,000 
Cost of goods sold  39,942,000      --                 39,942,000   
Gross profit        18,100,000      --                 18,100,000   
Gross margin        31.2%                                31.2%         
Operating expenses:                                                  
General and         88,448,000      (82,412,000)  (1)  6,036,000    
administrative
Sales and marketing 1,811,000       --                 1,811,000    
Research and        588,000         (75,000)      (2)  513,000      
development
Total operating     90,847,000      (82,487,000)        8,360,000    
expenses
Operating income    (72,747,000)    82,487,000          9,740,000    
(loss)
Interest expense,   3,951,000       (170,000)     (3)  3,781,000    (B)
net
Income (loss)
before income tax   (76,698,000)    82,657,000          5,959,000    
expense (benefit)
Income tax expense  (27,996,000)    30,320,000    (4)  2,324,000    (B)
(benefit)
Net income (loss)   $(48,702,000)  $52,337,000        $3,635,000  (A)
                                                                    
Diluted net income                                      $0.26       
per share
Weighted average
number of shares                                                     
outstanding:
Diluted                                                 14,131,232    (5)
Depreciation and                                        712,000      (B)
amortization
Adjusted EBITDA -                                       $10,452,000 
Sum of (A) and (B)
                                                                    
(1) Financing,
severance and other 1,402,000                                        
fees
Reserve for Fenco   81,795,000                                       
investment
Share-based
compensation        93,000                                           
expense
Mark-to-market      (878,000)                                        
(gain)/loss
Total               82,412,000                                       
                                                                    
(2) Consulting fees 75,000                                           
                                                                    
(3) Intersegment interest income from the Undercar product line segment is
$1,513,000
offset by an adjustment for $1,683,000 for one-time bank interest charges
related to Fenco.
(4) Tax effected for Rotating Electrical at 39% tax rate.
(5) Excludes the impact of 360,000 shares in connection with the consideration
for the May 6, 2011 Fenco acquisition.

                                                                    
                                                                    
Reconciliation of
Non-GAAP Financial                                     Exhibit 6      
Measures
                                                                    
                  Twelve months ended March 31, 2013 (Unaudited)
                                                      Adjusted       
                  As Reported                          Rotating       
                  Rotating         Adjustment           Electrical     
Income statement   Electrical       (Non-GAAP)           (Non-GAAP)     
                                                                    
Net sales          $213,151,000   $--               $213,151,000 
Cost of goods sold 143,810,000     --                 143,810,000   
Gross profit       69,341,000      --                 69,341,000    
Gross margin       32.5%                                32.5%          
Operating                                                            
expenses:
General and        107,602,000     (85,775,000)  (1)  21,827,000    
administrative
Sales and          7,290,000       --                 7,290,000     
marketing
Research and       1,930,000       (75,000)      (2)  1,855,000     
development
Total operating    116,822,000     (85,850,000)        30,972,000    
expenses
Operating income   (47,481,000)    85,850,000          38,369,000    
(loss)
Interest expense,  12,324,000      3,499,000     (3)  15,823,000    (B)
net
Income (loss)
before income tax  (59,805,000)    82,351,000          22,546,000    
expense (benefit)
Income tax expense (21,759,000)    30,552,000    (4)  8,793,000     (B)
(benefit)
Net income (loss)  $(38,046,000)  $51,799,000        $13,753,000  (A)
                                                                    
Diluted net income                                     $0.98        
per share
Weighted average
number of shares                                                     
outstanding:
Diluted                                                13,967,310     (5)
Depreciation and                                       2,849,000     (B)
amortization
Adjusted EBITDA -                                      $41,218,000  
Sum of (A) and (B)
                                                                    
(1) Financing,
severance and      3,384,000                                         
other fees
Reserve for Fenco  81,795,000                                        
investment
Share-based
compensation       1,010,000                                         
expense
Mark-to-market     (414,000)                                         
(gain)/loss
Total              85,775,000                                        
                                                                    
(2) Consulting     75,000                                            
fees
                                                                    
(3) Intersegment interest income from the Undercar product line segment is
$5,182,000
offset by an adjustment for $1,683,000 for one-time bank interest charges
related to Fenco.
(4) Tax effected for Rotating Electrical at 39% tax rate.
(5) Excludes the impact of 360,000 shares in connection with the consideration
for the May 6, 2011 Fenco acquisition.

                                                                    
                                                                    
Reconciliation of
Non-GAAP Financial                                      Exhibit 7     
Measures
                                                                    
                   Three months ended March 31, 2012 (Unaudited)
                                                       Adjusted      
                   As Reported                          Rotating      
                   Rotating        Adjustment            Electrical    
Income statement    Electrical      (Non-GAAP)            (Non-GAAP)    
                                                                    
Net sales           $51,903,000                        $51,903,000 
Cost of goods sold  35,054,000                          35,054,000   
Gross profit        16,849,000     --                  16,849,000   
Gross margin        32.5%                                32.5%         
Operating expenses:                                                  
General and         3,812,000      1,253,000      (1)  5,065,000    
administrative
Sales and marketing 1,870,000                           1,870,000    
Research and        495,000        --                  495,000      
development
Total operating     6,177,000      1,253,000            7,430,000    
expenses
Operating income    10,672,000     (1,253,000)          9,419,000    
Interest expense,   2,569,000      802,000        (2)  3,371,000    (B)
net
Income before       8,103,000      (2,055,000)          6,048,000    
income tax expense
Income tax expense  2,083,000      276,000        (3)  2,359,000    (B)
Net income          $6,020,000    $(2,331,000)        $3,689,000  (A)
                                                                    
Diluted net income                                      $0.30       
per share
Weighted average
number of shares                                                     
outstanding:
Diluted                                                 12,278,948    (4)
Depreciation and                                        832,000      (B)
amortization
Adjusted EBITDA -                                       $10,251,000 
Sum of (A) and (B)
                                                                    
(1) Fenco,
financing,          (330,000)                                        
professional and
other fees
Mark-to-market      (923,000)                                        
(gain)/loss
Total               (1,253,000)                                      
                                                                    
(2) Intersegment interest income from the Undercar product line segment is
$802,000.
(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                                     Exhibit 8      
Measures
                                                                    
                  Twelve months ended March 31, 2012 (Unaudited)
                                                      Adjusted       
                  As Reported                          Rotating       
                  Rotating        Adjustment            Electrical     
Income statement   Electrical      (Non-GAAP)            (Non-GAAP)     
                                                                    
Net sales          $180,404,000  $(1,853,000)  (1)  $178,551,000 
Cost of goods sold 123,072,000    --                  123,072,000   
Gross profit       57,332,000     (1,853,000)          55,479,000    
Gross margin       31.8%                                31.1%          
Operating                                                            
expenses:
General and        20,621,000     (2,970,000)    (2)  17,651,000    
administrative
Sales and          7,659,000      (238,000)      (3)  7,421,000     
marketing
Research and       1,765,000      --                  1,765,000     
development
Acquisition costs  713,000        (713,000)      (4)  --           
Total operating    30,758,000     (3,921,000)          26,837,000    
expenses
Operating income   26,574,000     2,068,000            28,642,000    
Interest expense,  4,841,000      2,529,000      (5)  7,370,000     (B)
net
Income before      21,733,000     (461,000)            21,272,000    
income tax expense
Income tax expense 7,433,000      864,000        (6)  8,296,000     (B)
Net income         $14,300,000   $(1,325,000)        $12,976,000  (A)
                                                                    
Diluted net income                                     $1.04        
per share
Weighted average
number of shares                                                     
outstanding:
Diluted                                                12,429,756     (7)
Depreciation and                                       3,466,000     (B)
amortization
Adjusted EBITDA -                                      $32,108,000  
Sum of (A) and (B)
                                                                    
(1) Intersegment
revenue, net of    1,853,000                                         
cost of goods sold
                                                                    
(2) Fenco,
financing,         2,494,000                                         
professional and
other fees
Mark-to-market     476,000                                           
(gain)/loss
Total              2,970,000                                         
                                                                    
(3) Fenco related
sales and          238,000                                           
marketing expenses
                                                                    
(4) Fenco related  713,000                                           
acquisition costs
                                                                    
(5) Intersegment interest income from the Undercar product line segment is
$2,529,000
(6) Tax effected for Rotating Electrical at 39% tax rate.
(7) Excludes the impact of 324,590 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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