Motorcar Parts of America Reports Strong Fiscal 2014 Second Quarter Results

Motorcar Parts of America Reports Strong Fiscal 2014 Second Quarter Results

Sales Up 14.8 Percent for Quarter

LOS ANGELES, Nov. 12, 2013 (GLOBE NEWSWIRE) -- Motorcar Parts of America, Inc.
(Nasdaq:MPAA) today reported results for its fiscal 2014 second quarter and
six-month period – reflecting the first full quarter of contributions from the
company's new wheel hub product line.

Net sales for the fiscal 2014 second quarter increased 14.8 percent to $66.2
million from $57.7 million for the same period last year. Net income for the
same period was $2.2 million, or $0.15 per diluted share, compared with a net
loss of $8.9 million, or $0.62 per share, a year ago – reflecting the impact
of the company's discontinued subsidiaries.

Excluding certain costs and non-cash expenses noted in the Reconciliation of
Non-GAAP Financial Measures tables below, adjusted net income for the second
fiscal quarter was $5.3 million, or $0.37 per diluted share, compared with
$5.5 million, or $0.38 per diluted share, for the same period a year earlier.

Gross profit for the second fiscal quarter was $19.7 million compared with
$20.1 million a year earlier. Adjusted for wheel hubs start-up costs and fees
related to discontinued subsidiaries, gross profit was $20.7 million compared
with $20.1 million for the prior period. Gross profit as a percentage of sales
was lower on a year-over-year comparison, due primarily to the addition of
wheel hub sales in June 2013 and a lower than normal overall cost of
manufacturing in the same quarter a year earlier.

Net sales for the six months increased 11.5 percent to $116.4 million from
$104.5 million a year ago. Net income for the fiscal 2014 six-month period was
$103.1 million, or $7.06 per diluted share, compared with a net loss of $18.8
million, or $1.32 per share, a year ago. Results for the 2014 first half
reflect a one-time gain on the deconsolidation of assets and liabilities of
the company's discontinued subsidiaries realized in the first fiscal quarter
of 2014.

Excluding certain costs and non-cash expenses noted in the Reconciliation of
Non-GAAP Financial Measures tables below, adjusted net income for the fiscal
six-month period was $8.6 million, or $0.59 per diluted share, compared with
$7.4 million, or $0.52 per diluted share, for the same period a year earlier.


"The automotive aftermarket industry remains strong, particularly for rotating
electrical products and other non-discretionary parts. For the second half of
fiscal 2014, we anticipate continued momentum in our base business, enhanced
by further growth of our wheel hub assembly business," said Selwyn Joffe,
chairman, president and chief executive officer of Motorcar Parts of America.

Use of Non-GAAP Measures

We define adjusted net income (loss) as net income (loss) adjusted for certain
items related to the company's discontinued subsidiaries, as well as
financing, consulting and other fees.We define Adjusted EBITDA as adjusted
net income (loss), plus interest expense, income tax expense and depreciation
and amortization.Adjusted net income (loss) does not reflect many items that
affect the company's net income (loss), including many items related to
company's discontinued subsidiaries.Adjusted EBITDA does not reflect the
impact of a number of items that affect the company's net income, including
financing costs and matters related to the company's discontinued
subsidiaries.Adjusted EBITDA and adjusted net income (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 income (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 income (loss) 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 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 Tuesday, November
19, 2013 by calling (855)-859-2056 (domestic) or (404)-537-3406
(international) and using access code: 87417925.

About Motorcar Parts of America

Motorcar Parts of America, Inc. is a remanufacturer, manufacturer and
distributor of automotive aftermarket parts -- including alternators, starters
and wheel hub assembly products 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 June 2013 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 Operations
(Unaudited)
                                                           
                                                           
                  Three Months Ended           Six Months Ended
                  September 30,               September 30,
                  2013          2012           2013           2012
                                                           
Net sales          $66,174,000 $57,652,000  $116,419,000 $104,451,000
Cost of goods sold 46,469,000   37,556,000    80,700,000    69,536,000
Gross profit       19,705,000   20,096,000    35,719,000    34,915,000
Operating                                                   
expenses:
General and        8,706,000    4,392,000     18,338,000    10,306,000
administrative
Sales and          2,143,000    1,724,000     3,874,000     3,496,000
marketing
Research and       398,000      461,000       947,000       897,000
development
Total operating    11,247,000   6,577,000     23,159,000    14,699,000
expenses
Operating income   8,458,000    13,519,000    12,560,000    20,216,000
Interest expense,  4,663,000    3,093,000     8,588,000     5,989,000
net
Income from
continuing         3,795,000    10,426,000    3,972,000     14,227,000
operations before
income tax expense
Income tax expense 1,631,000    3,923,000     1,705,000     5,357,000
Income from
continuing         2,164,000    6,503,000     2,267,000     8,870,000
operations
Income (loss) from
discontinued       --          (15,436,000)  100,877,000   (27,665,000)
operations
                                                           
Net income (loss)  $2,164,000  $(8,933,000) $103,144,000 $(18,795,000)
                                                           
Basic net income
per share from     $0.15       $0.45        $0.16        $0.63
continuing
operations
Basic net income
(loss) per share   --          (1.07)        6.97          (1.95)
from discontinued
operations
Basic net income   $0.15       $(0.62)      $7.13        $(1.32)
(loss) per share
                                                           
Diluted net income
per share from     $0.15       $0.45        $0.16        $0.62
continuing
operations
Diluted net income
(loss) per share   --          (1.07)        6.90          (1.94)
from discontinued
operations
Diluted net income $0.15       $(0.62)      $7.06        $(1.32)
(loss) per share
                                                           
Weighted average number of shares outstanding:                
Basic              14,460,979    14,456,921     14,460,979     14,192,235
Diluted            14,554,457    14,501,152     14,612,288     14,248,715


MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
                                                              
                                            September 30, 2013 March 31, 2013
ASSETS                                       (Unaudited)        
Current assets:                                                
Cash                                         $23,549,000      $19,346,000
Short-term investments                       452,000           411,000
Accounts receivable — net                    1,279,000         3,689,000
Inventory— net                               34,222,000        31,838,000
Inventory unreturned                         7,962,000         6,981,000
Deferred income taxes                        30,111,000        30,075,000
Prepaid expenses and other current assets    2,426,000         8,195,000
Current assets of discontinued operations   --                52,096,000
Total current assets                         100,001,000       152,631,000
Plant and equipment — net                   10,205,000        10,036,000
Long-term core inventory — net              128,076,000       118,211,000
Long-term core inventory deposits            28,075,000        27,610,000
Long-term deferred income taxes              11,705,000        2,546,000
Intangible assets — net                     3,605,000         3,983,000
Other assets                                 7,837,000         7,723,000
Long-term assets of discontinued operations  --                44,334,000
TOTAL ASSETS                                 $289,504,000     $367,074,000
LIABILITIES AND SHAREHOLDERS'EQUITY                           
Current liabilities:                                          
Accounts payable                             $40,192,000      $39,152,000
Accrued liabilities                          7,939,000         9,326,000
Customer finished goods returns accrual      13,960,000        14,289,000
Other current liabilities                    4,915,000         1,192,000
Current portion of term loan                 8,400,000         3,900,000
Current liabilities of discontinued          --               151,914,000
operations
Total current liabilities                    75,406,000        219,773,000
Term loan, less current portion             94,474,000        80,110,000
Deferred core revenue                        12,293,000        12,014,000
Other liabilities                            7,458,000         3,481,000
Long-term liabilities of discontinued        --               55,210,000
operations
Total liabilities                           189,631,000       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 shares issued and outstanding at
September 30, 2013 and March 31, 2013,       145,000           145,000
respectively
Additional paid-in capital                   114,978,000       114,737,000
Accumulated other comprehensive loss         (844,000)         (846,000)
Accumulated deficit                          (14,406,000)      (117,550,000)
Total shareholders' equity (deficit)         99,873,000        (3,514,000)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $289,504,000     $367,074,000

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
three and six months ended September 30, 2013 and 2012. 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.

Income statement information for the three and six months ended September 30,
2013 and 2012 are as follows:

Reconciliation of Non-GAAP Financial                       Exhibit 1     
Measures
                           Three months ended September 30, 2013 (Unaudited)
                                        Adjustment        Adjusted      
Income statement            As Reported   (Non-GAAP)        (Non-GAAP)    
Net sales                   $66,174,000 $700,000   (1) $66,874,000 
Cost of goods sold          46,469,000   (325,000)   (2) 46,144,000   
Gross profit                19,705,000   1,025,000        20,730,000   
Gross margin                29.8%                          31.0%         
Operating expenses:                                                    
General and administrative  8,706,000    (3,448,000) (3) 5,258,000    
Sales and marketing         2,143,000                     2,143,000    
Research and development    398,000                       398,000      
Total operating expenses    11,247,000   (3,448,000)      7,799,000    
Operating income            8,458,000    4,473,000        12,931,000   
Interest expense, net       4,663,000    (464,000)   (4) 4,199,000    (B)
Income from continuing
operations before income    3,795,000    4,937,000        8,732,000    
tax expense
Income tax expense          1,631,000    1,774,000   (5) 3,405,000    (B)
Income from continuing      2,164,000    3,163,000        5,327,000    (A)
operations
                                                                      
Diluted net income per share                               $0.37       
Weighted average number of                                             
shares outstanding:
Diluted                                                    14,554,457    
Depreciation and amortization                               683,000      (B)
Adjusted EBITDA - Sum of                                  $13,614,000 
(A) and (B)
                                                                      
(1) Returns and rebates     700,000                                    
accruals
(2) Discontinued            325,000                                    
subsidiaries costs
(3) Discontinued
subsidiaries legal,         841,000                                    
financing, severance and
other costs
Share-based compensation    116,000                                    
expense
Mark-to-market losses       2,491,000                                  
Total                       3,448,000                                  
(4) Discontinued
subsidiaries' supplier      464,000                                    
revolving credit line
interest
(5) Tax effected at 39% tax                                            
rate

                                                                                                     
Reconciliation of Non-GAAP Financial                                                     Exhibit 2    
Measures
                                                                                                   
                                          Three months ended September 30, 2012 (Unaudited)
                                                              Adjustment               Adjusted      
Income statement                           As Reported          (Non-GAAP)               (Non-GAAP)    
Net sales                                  $57,652,000        $--                   $57,652,000 
Cost of goods sold                         37,556,000          --                     37,556,000   
Gross profit                               20,096,000          --                     20,096,000   
Gross margin                               34.9%                                        34.9%         
Operating expenses:                                                                                 
General and administrative                 4,392,000           198,000            (1) 4,590,000    
Sales and marketing                        1,724,000           --                     1,724,000    
Research and development                   461,000             --                     461,000      
Total operating expenses                   6,577,000           198,000                 6,775,000    
Operating income                           13,519,000          (198,000)               13,321,000   
Interest expense, net                      3,093,000           1,273,000          (2) 4,366,000    (B)
Income from continuing operations before   10,426,000          (1,471,000)             8,955,000    
income tax expense
Income tax expense                         3,923,000           (431,000)          (3) 3,492,000    (B)
Income from continuing operations          6,503,000           (1,040,000)             5,463,000    
Income (loss) from discontinued operations (15,436,000)        15,436,000         (4) --          
Net income (loss)                          $(8,933,000)       $14,396,000            $5,463,000  (A)
                                                                                                   
Diluted net income per share                                                            $0.38       
Weighted average number of shares                                                                   
outstanding:
Diluted                                                                                 14,501,152    
Depreciation and amortization                                                            703,000      (B)
Adjusted EBITDA - Sum of (A) and (B)                                                   $14,024,000 
                                                                                                   
(1) Financing and other fees               300,000                                                  
Mark-to-market (gains)                     (498,000)                                                
Total                                      (198,000)                                                
(2) Intersegment interest income           1,273,000                                                
(3) Tax effected at 39% tax rate                                                                    
(4) Discontinued operations                15,436,000                                               

                                                                    
Reconciliation of
Non-GAAP Financial                                     Exhibit 3      
Measures
                                                                    
                    Six months ended September 30, 2013 (Unaudited)         
                                  Adjustment           Adjusted       
Income statement     As Reported    (Non-GAAP)           (Non-GAAP)     
Net sales            $116,419,000 $1,412,000    (1) $117,831,000 
Cost of goods sold   80,700,000    29,000         (2) 80,729,000    
Gross profit         35,719,000    1,383,000           37,102,000    
Gross margin         30.7%                              31.5%          
Operating expenses:                                                  
General and          18,338,000    (7,943,000)    (3) 10,395,000    
administrative
Sales and marketing  3,874,000     (21,000)       (4) 3,853,000     
Research and         947,000       (75,000)       (5) 872,000       
development
Total operating      23,159,000    (8,039,000)         15,120,000    
expenses
Operating income     12,560,000    9,422,000           21,982,000    
Interest expense,    8,588,000     (653,000)      (6) 7,935,000     (B)
net
Income from
continuing           3,972,000     10,075,000          14,047,000    
operations before
income tax expense
Income tax expense   1,705,000     3,773,000      (7) 5,478,000     (B)
Income from
continuing           2,267,000     6,302,000           8,569,000     
operations
Income (loss) from
discontinued         100,877,000   (100,877,000)  (8) --           
operations
Net income (loss)    $103,144,000 $(94,575,000)      $8,569,000   (A)
                                                                    
Diluted net income per share                            $0.59        
Weighted average
number of shares                                                     
outstanding:
Diluted                                                 14,612,288     
Depreciation and amortization                            1,416,000     (B)
Adjusted EBITDA -                                      $23,398,000  
Sum of (A) and (B)
                                                                    
(1) Return, stock
adjustment and       1,412,000                                       
rebates accruals
(2) Cost of stock
adjustment           (29,000)                                        
accrual/discontinued
subsidiaries costs
(3) Discontinued
subsidiaries legal,  2,908,000                                       
financing, severance
and other costs
Share-based          241,000                                         
compensation expense
Mark-to-market       4,794,000                                       
losses
Total                7,943,000                                       
(4) Discontinued
subsidiaries-related 21,000                                          
expenses
(5) Consulting fees  75,000                                          
(6) Discontinued
subsidiaries'        653,000                                         
supplier revolving
credit line interest
(7) Tax effected at                                                  
39% tax rate
(8) Discontinued     (100,877,000)                                   
operations

                                                                      
Reconciliation of
Non-GAAP Financial                                       Exhibit 4      
Measures
                                                                      
                       Six months ended September 30, 2012 (Unaudited)
                                      Adjustment         Adjusted       
Income statement        As Reported     (Non-GAAP)         (Non-GAAP)     
Net sales               $104,451,000  $--             $104,451,000 
Cost of goods sold      69,536,000     --               69,536,000    
Gross profit            34,915,000     --               34,915,000    
Gross margin            33.4%                             33.4%          
Operating expenses:                                                    
General and             10,306,000     (141,000)    (1) 10,165,000    
administrative
Sales and marketing     3,496,000      --               3,496,000     
Research and            897,000        --               897,000       
development
Total operating         14,699,000     (141,000)         14,558,000    
expenses
Operating income        20,216,000     141,000           20,357,000    
Interest expense, net   5,989,000      2,168,000    (2) 8,157,000     (B)
Income from continuing
operations before       14,227,000     (2,027,000)       12,200,000    
income tax expense
Income tax expense      5,357,000      (599,000)    (3) 4,758,000     (B)
Income from continuing  8,870,000      (1,428,000)       7,442,000     
operations
Income (loss) from      (27,665,000)   27,665,000   (4) --           
discontinued operations
Net income (loss)       $(18,795,000) $26,237,000      $7,442,000   (A)
                                                                      
Diluted net income per share                              $0.52        
Weighted average number                                                
of shares outstanding:
Diluted                                                   14,248,715     
Depreciation and amortization                              1,438,000     (B)
Adjusted EBITDA - Sum                                    $21,795,000  
of (A) and (B)
                                                                      
(1) Financing and other 539,000                                        
fees
Mark-to-market (gains)  (398,000)                                      
Total                   141,000                                        
(2) Intersegment        2,168,000                                      
interest income
(3) Tax effected at 39%                                                
tax rate
(4) Discontinued        27,665,000                                     
operations

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