Motorcar Parts of America Reports Record Results for Fiscal 2014

Motorcar Parts of America Reports Record Results for Fiscal 2014

Sales Up 32.1 Percent for Quarter; 21.4 Percent for Year

LOS ANGELES, June 16, 2014 (GLOBE NEWSWIRE) -- Motorcar Parts of America, Inc.
(Nasdaq:MPAA) today reported record results for its fiscal 2014 fourth quarter
and year ended March 31, 2014 – reflecting continued growth of its rotating
electrical business and the third full quarter of contributions from the
company's wheel hub product line.

Net sales for the fiscal 2014 fourth quarter increased 32.1 percent to $76.7
million from $58.0 million for the same period last year. Net income for the
quarter was $3.1 million, or $0.19 per diluted share, compared with a net loss
of $73.7 million, or $5.08 per share, a year ago, which was impacted by the
company's former discontinued undercar business.

Excluding certain costs and non-cash expenses noted in the Reconciliation of
Non-GAAP Financial Measures tables below, adjusted net income for the fiscal
2014 fourth quarter increased 86 percent to $6.8 million, or $0.43 per diluted
share, from $3.6 million, or $0.25 per diluted share, for the same period a
year earlier. Per-share results reflect a 9.2 percent increase in the diluted
weighted average number of shares outstanding.

Gross profit for the fiscal 2014 fourth quarter was $23.9 million compared
with $18.1 million a year earlier. Gross profit as a percentage of sales was
31.2 percent compared with 31.2 percent a year earlier.

Net sales for the full-year period increased 21.4 percent to $258.7 million
from $213.2 million a year ago. Net income for fiscal 2014 was $107.4 million,
or $7.01 per diluted share, compared with a net loss of $91.5 million, or
$6.36 per share, a year ago. Net income (loss) for both periods was impacted
by the company's former discontinued undercar business.

Excluding certain costs and non-cash expenses noted in the Reconciliation of
Non-GAAP Financial Measures tables below, adjusted net income for the
full-year period increased 55 percent to $21.3 million, or $1.39 per diluted
share, from $13.8 million, or $0.96 per diluted share, for the same period a
year earlier. Per-share results reflect a 6.5 percent increase in the diluted
weighted average number of shares outstanding.

Gross profit for the full year was $81.6 million compared with $69.3 million a
year earlier. Gross profit as a percentage of sales was 31.5 percent compared
with 32.5 percent a year earlier, reflecting product mix.

"We anticipate our solid growth will continue on a year-over-year basis,
supported by an aging vehicle population, new product introductions and
further opportunities for manufacturing and distribution leverage. I
appreciate our team's efforts in accomplishing industry-leading customer
service levels, and their dedicated focus on excellence," 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 Adjusted EBITDA and adjusted net income (loss) to 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 Monday, June 23,
2014 by calling (855)-859-2056 (domestic) or (404)-537-3406 (international)
and using access code: 57997083.

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
                                                           
                 Three Months Ended            Years Ended
                 March 31,                    March 31,
                 2014          2013            2014           2013
                 (Unaudited)                                 
                                                           
Net sales         $76,682,000 $58,042,000   $258,669,000 $213,151,000
Cost of goods     52,761,000   39,942,000     177,103,000   143,810,000
sold
Gross profit      23,921,000   18,100,000     81,566,000    69,341,000
Operating                                                   
expenses:
General and       11,766,000   6,653,000      39,684,000    25,807,000
administrative
Sales and         2,059,000    1,811,000      7,838,000     7,290,000
marketing
Research and      541,000      588,000        1,940,000     1,930,000
development
Total operating   14,366,000   9,052,000      49,462,000    35,027,000
expenses
Operating income  9,555,000    9,048,000      32,104,000    34,314,000
Interest expense, 3,177,000    3,951,000      18,289,000    12,324,000
net
Income from
continuing
operations before 6,378,000    5,097,000      13,815,000    21,990,000
income tax
expense
Income tax        3,311,000    1,195,000      7,333,000     7,432,000
expense
Income from
continuing        3,067,000    3,902,000      6,482,000     14,558,000
operations
Income (loss)
from discontinued --          (77,553,000)   100,877,000   (106,069,000)
operations
                                                           
Net income (loss) $3,067,000  $(73,651,000) $107,359,000 $(91,511,000)
                                                           
Basic net income
per share from    $0.20       $0.27         $0.45        $1.01
continuing
operations
Basic net income
(loss) per share  --          (5.36)         6.89          (7.40)
from discontinued
operations
                                                           
Basic net income  $0.20       $(5.09)       $7.34        $(6.39)
(loss) per share
                                                           
Diluted net
income per share  $0.19       $0.27         $0.42        $1.01
from continuing
operations
Diluted net
income (loss) per
share from        --          (5.35)         6.59          (7.37)
discontinued
operations
                                                           
Diluted net
income (loss) per $0.19       $(5.08)       $7.01        $(6.36)
share
Weighted average
number of shares                                            
outstanding:
Basic             14,996,959    14,462,457      14,633,946     14,327,310
Diluted           15,819,326    14,491,858      15,317,931     14,385,515
                                                           

MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
March 31,
                                                              
                                                2014           2013
ASSETS                                                         
Current assets:                                                
Cash                                             $24,599,000  $19,346,000
Short-term investments                           521,000       411,000
Accounts receivable — net                        22,283,000    3,689,000
Inventory— net                                   47,246,000    31,838,000
Inventory unreturned                             7,534,000     6,981,000
Deferred income taxes                            18,767,000    30,996,000
Prepaid expenses and other current assets        4,316,000     8,195,000
Current assets of discontinued operations        --            51,175,000
Total current assets                             125,266,000   152,631,000
Plant and equipment — net                        11,025,000    10,036,000
Long-term core inventory — net                   143,476,000   118,211,000
Long-term core inventory deposits                29,375,000    27,610,000
Long-term deferred income taxes                  2,614,000     2,377,000
Intangible assets — net                          3,244,000     3,983,000
Other assets                                     3,853,000     5,618,000
Long-term assets of discontinued operations      --            44,503,000
TOTAL ASSETS                                     $318,853,000 $364,969,000
LIABILITIES AND SHAREHOLDERS'EQUITY                           
Current liabilities:                                          
Accounts payable                                $59,509,000  $39,152,000
Accrued liabilities                              8,316,000     9,326,000
Customer finished goods returns accrual          16,251,000    14,289,000
Revolving loan                                   10,000,000    --
Other current liabilities                        1,270,000     1,192,000
Current portion of term loan                     7,843,000     3,775,000
Current liabilities of discontinued operations   --           151,914,000
Total current liabilities                        103,189,000   219,648,000
Term loan, less current portion                  79,434,000    78,130,000
Deferred core revenue                            15,065,000    12,014,000
Other liabilities                                11,529,000    3,481,000
Long-term liabilities of discontinued operations --           55,210,000
Total liabilities                                209,217,000   368,483,000
Commitments and contingencies                                 
Shareholders' equity:                                         
Preferred stock; par value $.01 per share,       --            --
5,000,000 shares authorized; none issued
Series A junior participating preferred stock;
par value $.01 per share,20,000 shares          --            --
authorized; none issued
Common stock; par value $.01 per share,
50,000,000 and 20,000,000 shares
authorized;15,067,645 and 14,460,979 shares     151,000       145,000
issued and outstanding at March 31, 2014
and2013, respectively
Additional paid-in capital                       120,553,000   114,737,000
Accumulated other comprehensive loss             (877,000)     (846,000)
Accumulated deficit                              (10,191,000)  (117,550,000)
Total shareholders' equity (deficit)            109,636,000   (3,514,000)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY       $318,853,000 $364,969,000
                                                              

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 twelve months ended March 31, 2014 and 2013. 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 twelve months ended March 31,
2014 and 2013 are as follows:

Reconciliation of
Non-GAAP Financial                                           Exhibit 1
Measures
                                                            
                  Three Months Ended March 31, Years Ended March 31,
                  2014           2013           2014           2013
GAAP Results:                                                
Net sales          $76,682,000  $58,042,000  $258,669,000 $213,151,000
Net income (loss)  3,067,000     (73,651,000)  107,359,000   (91,511,000)
Diluted income
(loss) per share   0.19          (5.08)        7.01          (6.36)
(EPS)
Non-GAAP Adjusted                                            
Results:
Non-GAAP adjusted  $6,778,000   $3,635,000   $21,258,000  $13,753,000
net income
Non-GAAP adjusted
diluted earnings   0.43          0.25          1.39          0.96
per share (EPS)
Non-GAAP adjusted  14,940,000    10,452,000    52,419,000    41,218,000
EBITDA

                                                              
Reconciliation of
Non-GAAP Financial                                             Exhibit 2
Measures
                                                              
                       Three Months Ended March 31,
                       2014                    2013
                       $          Per Diluted $             Per Diluted
                                     Share                       Share
GAAP net income (loss), $3,067,000 $0.19      $(73,651,000) $(5.08)
as reported
Adjustments:                                                   
(Income) loss from      --         $--       77,553,000     $5.35
discontinued operations
Operating expenses                                             
Disc. subsidiaries
legal, severance and    670,000     $0.04      --            --
other costs
Financing and other     --         --         1,402,000      $0.10
fees
Share-based             419,000     $0.03      93,000         $0.01
compensation expense
Mark-to-market losses   3,645,000   $0.23      (878,000)      $(0.06)
(gains)
Consulting fees,
research and            --         --         75,000         $0.01
development
Interest                                                       
Disc. subsidiaries
related interest
expense less            --         --         170,000        $0.01
intersegment interest
income
Tax effected at 39% tax (1,023,000) $(0.06)    (1,129,000)    $(0.08)
rate (a)
Adjusted net income     $6,778,000 $0.43      $3,635,000    $0.25
                                                              
(a) Tax effect at 39% of the income from continuing operations before income
tax expense (reflecting the adjustments)


Reconciliation of
Non-GAAP Financial                                             Exhibit 3
Measures
                                                              
                     Years Ended March 31,
                     2014                      2013
                     $            Per Diluted $             Per Diluted
                                     Share                       Share
GAAP net income       $107,359,000 $7.01      $(91,511,000) $(6.36)
(loss), as reported
Adjustments:                                                   
(Income) loss from
discontinued          (100,877,000) $(6.59)    106,069,000    $7.37
operations
Net sales                                                      
Return, stock
adjustment and        1,412,000     $0.09      --            --
rebates accruals
Cost of goods sold                                             
Cost of stock adj.
accrual and disc.     (29,000)      $(0.002)   --            --
subsidiaries costs
Operating expenses                                             
Disc. subsidiaries
legal, severance and  4,056,000     $0.26      --            --
other costs
Financing and other   --           --         3,384,000      $0.24
fees
Share-based           969,000       $0.06      1,010,000      $0.07
compensation expense
Mark-to-market losses 11,069,000    $0.72      (414,000)      $(0.03)
(gains)
Disc. subsidiaries
sales and marketing   21,000        $0.001     --            --
expenses
Consulting fees,
research and          75,000        $0.005     75,000         $0.01
development
Interest                                                       
Disc. subsidiaries
supplier revolving
credit line interest  3,462,000     $0.23      --            --
and write-off prior
deferred loan fees
Disc. subsidiaries
related interest
expense less          --           --         (3,499,000)    $(0.24)
intersegment interest
income
Tax effected at 39%   (6,259,000)   $(0.41)    (1,361,000)    $(0.09)
tax rate (a)
Adjusted net income   $21,258,000  $1.39      $13,753,000   $0.96
                                                              
(a) Tax effect at 39% of the income from continuing operations before income
tax expense (reflecting the adjustments)
                                                              

Reconciliation of
Non-GAAP                                                    Exhibit 4
Financial
Measures
                                                           
                 Three Months Ended March 31, Years Ended March 31,
                 2014          2013            2014           2013
GAAP net income
(loss), as        $3,067,000  $(73,651,000) $107,359,000 $(91,511,000)
reported
(Income) loss
from discontinued --          77,553,000     (100,877,000) 106,069,000
operations
Interest expense, 3,177,000    3,951,000      18,289,000    12,324,000
net
Income tax        3,311,000    1,195,000      7,333,000     7,432,000
expense
Depreciation and  651,000      712,000        2,742,000     2,849,000
amortization
EBITDA, as        $10,206,000 $9,760,000    $34,846,000  $37,163,000
reported
                                                           
Adjustments:                                                
Net sales                                                   
Return, stock
adjustment and    --          --            1,412,000     --
rebates accruals
Cost of goods                                               
sold
Cost of stock
adj. accrual and
disc.             --          --            (29,000)      --
subsidiaries
costs
Operating                                                   
expenses
Disc.
subsidiaries      670,000      --            4,056,000     --
legal, severance
and other costs
Financing and     --          1,402,000      --           3,384,000
other fees
Share-based
compensation      419,000      93,000         969,000       1,010,000
expense
Mark-to-market    3,645,000    (878,000)      11,069,000    (414,000)
losses (gains)
Disc.
subsidiaries
sales and         --          --            21,000        --
marketing
expenses
Consulting fees,
research and      --          75,000         75,000        75,000
development
Adjusted EBITDA   $14,940,000 $10,452,000   $52,419,000  $41,218,000
                                                           

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