Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

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
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement