Motorcar Parts of America Reports Record Fiscal 2015 First Quarter

Motorcar Parts of America Reports Record Fiscal 2015 First Quarter

Expands Product Line with Brake Master Cylinder Introduction

LOS ANGELES, Aug. 11, 2014 (GLOBE NEWSWIRE) -- Motorcar Parts of America, Inc.
(Nasdaq:MPAA) today reported record results for its fiscal 2015 first quarter
ended June 30, 2014 – reflecting continued growth of its rotating electrical
and wheel hub business.

Net sales for the fiscal 2015 first quarter increased 25.3 percent to $63.0
million from $50.2 million for the same period a year earlier. The increase in
net sales was due to growth in both rotating electrical products and the
benefits of a full quarter of wheel hub sales, which commenced in late June
2013. Net income for the quarter was $3.9 million, or $0.25 per diluted share,
compared with a net income of $101.0 million, or $6.91 per diluted share, a
year ago, which reflects a gain on the deconsolidation of the company's
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
2015 first quarter increased 45.6 percent to $4.7 million, or $0.30 per
diluted share, from $3.2 million, or $0.22 per diluted share, for the same
period a year earlier – based on a 9.0 percent increase in the diluted
weighted average number of shares outstanding.

Gross profit for the fiscal 2015 first quarter was $17.8 million compared with
$16.0 million a year earlier. Gross profit as a percentage of sales was 28.3
percent compared with 31.9 percent a year earlier. Adjusted gross profit was
$19.2 million compared with $16.4 million a year ago, representing a 17.1
percent increase. Adjusted gross profit as a percentage of sales for the first
quarter was 30.2 percent compared with 32.1 percent a year earlier, primarily
reflecting product mix.

"Fiscal 2015 is off to an excellent start, supported by strong organic growth
in all product lines, an aging vehicle population and positive operating
synergies. Our team's ongoing focus on achieving the highest customer service
levels continues to distinguish our organization. We look forward to solid
momentum as the new fiscal year evolves – supported by strong organic growth
in both the rotating electrical and wheel hub business, as well as
contributions from the introduction of our most recent product line," said
Selwyn Joffe, chairman, president and chief executive officer of Motorcar
Parts of America.

Brake Master Cylinders

Subsequent to the end of the fiscal first quarter, Motorcar Parts of America
introduced brake master cylinders as a new product line and commenced
shipments.

"The brake master cylinder product line expansion follows the introduction
last June of wheel hubs. Like rotating electrical and wheel hubs, brake master
cylinders are non-discretionary with strong growth dynamics. We anticipate
solid sales and profit contributions from this new product line," Joffe said.

Industry sources estimate the market size for master cylinders to be
approximately $500 million at the user level.

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, August 18,
2014 by calling (855)-859-2056 (domestic) or (404)-537-3406 (international)
and using access code: 81621123

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 2014 and in its Forms 10-Q filed with the SEC for additional
risks and uncertainties facing the company. The company undertakes no
obligation to publicly update or revise any forward-looking statements,
whether as the result of new information, future events or otherwise.

                          (Financial tables follow)


MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
                                                              
                                                 Three Months Ended
                                                 June 30,
                                                 2014          2013
                                                              
Net sales                                         $62,975,000 $50,245,000
Cost of goods sold                                45,159,000   34,231,000
Gross profit                                      17,816,000   16,014,000
Operating expenses:                                            
General and administrative                        5,392,000    9,632,000
Sales and marketing                               1,826,000    1,731,000
Research and development                          522,000      549,000
Total operating expenses                          7,740,000    11,912,000
Operating income                                  10,076,000   4,102,000
Interest expense, net                             3,413,000    3,925,000
Income from continuing operations before income   6,663,000    177,000
tax expense
Income tax expense                                2,714,000    74,000
Income from continuing operations                 3,949,000    103,000
Income from discontinued operations               --          100,877,000
                                                              
Net income                                        $3,949,000  $100,980,000
                                                              
Basic net income per share from continuing        $0.26       $0.01
operations
Basic net income per share from discontinued      --          6.97
operations
Basic net income per share                        $0.26       $6.98
                                                              
Diluted net income per share from continuing      $0.25       $0.01
operations
Diluted net income per share from discontinued    --          6.90
operations
Diluted net income per share                      $0.25       $6.91
                                                              
Weighted average number of shares outstanding:                 
Basic                                             15,082,818    14,460,979
Diluted                                           15,921,367    14,609,464



MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
                                                              
                                                June 30, 2014  March 31, 2014
ASSETS                                           (Unaudited)    
Current assets:                                                
Cash                                             $24,692,000  $24,599,000
Short-term investments                           549,000       521,000
Accounts receivable — net                        7,955,000     22,283,000
Inventory—net                                    47,471,000    47,246,000
Inventory unreturned                             7,328,000     7,534,000
Deferred income taxes                            18,864,000    18,767,000
Prepaid expenses and other current assets        3,532,000     4,316,000
Total current assets                             110,391,000   125,266,000
Plant and equipment — net                        11,224,000    11,025,000
Long-term core inventory — net                   149,420,000   143,476,000
Long-term core inventory deposits                29,638,000    29,375,000
Long-term deferred income taxes                  2,630,000     2,614,000
Intangible assets — net                          3,064,000     3,244,000
Other assets                                     3,910,000     3,853,000
TOTAL ASSETS                                     $310,277,000 $318,853,000
LIABILITIES AND SHAREHOLDERS'EQUITY                           
Current liabilities:                                          
Accounts payable                                 $51,721,000  $59,509,000
Accrued liabilities                              5,310,000     8,316,000
Customer finished goods returns accrual          15,387,000    16,251,000
Revolving loan                                   10,000,000    10,000,000
Other current liabilities                        2,499,000     1,270,000
Current portion of term loan                     7,843,000     7,843,000
Total current liabilities                        92,760,000    103,189,000
Term loan, less current portion                  77,640,000    79,434,000
Deferred core revenue                            15,115,000    15,065,000
Other liabilities                                10,443,000    11,529,000
Total liabilities                                195,958,000   209,217,000
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 shares authorized;
15,082,645 and 15,067,645 shares issued and
outstanding at June 30, 2014 andMarch 31, 2014, 151,000       151,000
respectively
Additional paid-in capital                       121,232,000   120,553,000
Accumulated other comprehensive loss             (822,000)     (877,000)
Accumulated deficit                              (6,242,000)   (10,191,000)
Total shareholders' equity                       114,319,000   109,636,000
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY       $310,277,000 $318,853,000

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 months ended June 30, 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 months ended June 30, 2014 and 2013
are as follows:

Reconciliation of Non-GAAP Financial Measures                    Exhibit 1
                                                               
                                                 Three Months Ended June 30,
                                                 2014           2013
GAAP Results:                                                   
Net sales                                         $ 62,975,000  $ 50,245,000
Net income                                        3,949,000     100,980,000
Diluted income per share (EPS)                    0.25          6.91
Gross margin                                      28.3%          31.9%
Non-GAAP Adjusted Results:                                      
Non-GAAP adjusted net income                      $4,719,000   $3,242,000
Non-GAAP adjusted diluted earnings per share      0.30          0.22
(EPS)
Non-GAAP adjusted gross margin                    30.2%          32.1%
Non-GAAP adjusted EBITDA                          11,782,000    9,784,000

                                                              
                                                              
Reconciliation of
Non-GAAP Financial                                             Exhibit 2
Measures
                                                              
                        Three Months Ended June 30,
                        2014                    2013
                        $          Per Diluted $            Per Diluted
                                      Share                      Share
GAAP net income, as      $ 3,949,000 $0.25      $100,980,000 $6.91
reported
Adjustments:                                                   
Income from discontinued --                     (100,877,000) $(6.90)
operations
Net sales                                                      
Customer allowance -     442,000     $0.03                    
cost of new business
New product line returns
and stock adjustment     --                     712,000       $0.05
accruals
Cost of goods sold                                             
New product line         189,000     $0.01                    
start-up costs
Lower of cost or market
revaluation - cores on   731,000     $0.05                    
customers' shelves
Cost of stock adjustment --                     (354,000)     $(0.02)
accrual
Operating expenses                                             
Disc. subsidiaries
legal, severance and     560,000     $0.04      2,067,000     $0.14
other costs
Share-based compensation 498,000     $0.03      125,000       $0.01
expense
Mark-to-market losses    (1,347,000) $(0.08)    2,303,000     $0.16
(gains)
Disc. subsidiaries sales --                     21,000        $0.001
and marketing expenses
Consulting fees,         --                     75,000        $0.01
research and development
Interest                                                       
Disc. subsidiaries
supplier revolving       --                     189,000       $0.01
credit line interest
Tax effected at 39% tax  (303,000)   $(0.02)    (1,999,000)   $(0.14)
rate (a)
Adjusted net income      $ 4,719,000 $0.30      $3,242,000   $0.22
                                                              
(a) Tax effect at 39% of the income from continuing operations before income
tax expense (reflecting the adjustments)

                                                                 
                                                                 
Reconciliation of Non-GAAP                                        Exhibit 3
Financial Measures
                                                                 
                                Three Months Ended June 30,
                                2014                2013
                                $           Gross  $           Gross
                                               Margin               Margin
GAAP gross profit, as reported   $17,816,000 28.29%  $16,014,000 31.87%
Adjustments:                                                      
Net sales                                                         
Customer allowance - cost of new 442,000                          
business
New product line returns and     --                 712,000      
stock adjustment accruals
Cost of goods sold                                                
New product line start-up costs  189,000                          
Lower of cost or market
revaluation - cores on           731,000                          
customers' shelves
Cost of stock adjustment accrual --                 (354,000)    
Total adjustments                1,362,000    1.95%   358,000      0.26%
Adjusted gross profit            $19,178,000 30.24%  $16,372,000 32.13%

                                                              
                                                              
Reconciliation of Non-GAAP Financial Measures                  Exhibit 4
                                                              
                                                 Three Months Ended June 30,
                                                 2014          2013
GAAP net income, as reported                      $3,949,000  $ 100,980,000
Income from discontinued operations               --          (100,877,000)
Interest expense, net                             3,413,000    3,925,000
Income tax expense                                2,714,000    74,000
Depreciation and amortization                     633,000      733,000
EBITDA, as reported                               $ 10,709,000 $4,835,000
                                                              
Adjustments:                                                   
Net sales                                                      
Customer allowance - cost of new business         442,000      
New product line returns and stock adjustment     --          712,000
accruals
Cost of goods sold                                             
New product line start-up costs                   189,000      
Lower of cost or market revaluation - cores on    731,000      
customers' shelves
Cost of stock adjustment accrual                  --          (354,000)
Operating expenses                                             
Disc. subsidiaries legal, severance and other     560,000      2,067,000
costs
Share-based compensation expense                  498,000      125,000
Mark-to-market losses (gains)                     (1,347,000)  2,303,000
Disc. subsidiaries sales and marketing expenses   --          21,000
Consulting fees, research and development         --          75,000
Adjusted EBITDA                                   $ 11,782,000 $9,784,000

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