Exhibit 99.1
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NEWS RELEASE |
CONTACT: | Gary S. Maier | |
Maier & Company, Inc. | ||
(310) 442-9852 |
MOTORCAR PARTS OF AMERICA REPORTS FISCAL 2010
FOURTH QUARTER/YEAR-END RESULTS
FOURTH QUARTER/YEAR-END RESULTS
—Sales Climb 29 Percent for Quarter; Net Income Up Sharply For Year —
LOS ANGELES, CA — June 14, 2010 —Motorcar Parts of America, Inc. (NasdaqGM: MPAA) today reported strong results for its year ended March 31, 2010, reflecting record fourth quarter and full-year sales and a significant jump in net income for fiscal 2010.
Net sales for the fiscal 2010 fourth quarter were $38.6 million, compared with $29.9 million for the same period last year.
Gross profit for the fiscal 2010 fourth quarter was $12.5 million (or 32% gross margin), compared with $6.0 million (or 20% gross margin) for the same period a year ago.
Operating income for the fiscal fourth quarter climbed to $4.8 million, from an operating loss of $680,000 in the same period a year ago.
Net income for the fiscal 2010 fourth quarter was $2.9 million, or $0.24 per diluted share, compared with a net loss of $1.2 million, or $0.10 per share, for the comparable period a year earlier.
Net sales for fiscal 2010 climbed 9.2 percent to a record $147.2 million, compared with $134.9 million a year ago. Gross profit for fiscal 2010 was $41.3 million, compared with $39.5 million a year earlier, with a gross margin of 28 percent compared with 29 percent in fiscal 2009.
Operating income for fiscal 2010 was $18.3 million, compared with $10.6 million a year earlier.
Net income for fiscal 2010 climbed to $9.6 million, or $0.80 per diluted share, compared with $3.9 million, or $0.32 per diluted share, a year ago.
“Our record sales for fiscal 2010 reflect our ability to build strong long-term relationships with leading automotive retailers and the professional market,” said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts.
Joffe noted that “our performance for the quarter validates our belief that as we continue to grow market share, operating performance is enhanced with very little incremental expenditure. As we enter a new fiscal year, operating leverage and increased usage of available production capacity
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Motorcar Parts of America, Inc.
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continue to be important strategic components of the company’s year-over-year growth plans — supported by organic sales increases and acquisitions at appropriate valuations,” Joffe added.
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 for fiscal 2010. 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. 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 21, 2010 by calling (800)-642-1687 (domestic) or (706)-645-9291 (international) and using access code: 75655489.
About Motorcar Parts of America
Motorcar Parts of America, Inc. is a remanufacturer of alternators and starters utilized in imported and domestic passenger vehicles, light trucks and heavy duty applications. Its 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 2010 and in its Form 10-Qs filed with the SEC thereafter 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.
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MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Consolidated Statements of Operations
Three Months Ended | Year Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Net sales | $ | 38,616,000 | $ | 29,922,000 | $ | 147,225,000 | $ | 134,866,000 | ||||||||
Cost of goods sold | 26,153,000 | 23,891,000 | 105,898,000 | 95,319,000 | ||||||||||||
Gross profit | 12,463,000 | 6,031,000 | 41,327,000 | 39,547,000 | ||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative | 5,614,000 | 4,845,000 | 15,580,000 | 19,479,000 | ||||||||||||
Sales and marketing | 1,664,000 | 1,331,000 | 6,019,000 | 5,242,000 | ||||||||||||
Research and development | 398,000 | 435,000 | 1,421,000 | 1,993,000 | ||||||||||||
Impairment of goodwill | — | 100,000 | — | 2,191,000 | ||||||||||||
Total operating expenses | 7,676,000 | 6,711,000 | 23,020,000 | 28,905,000 | ||||||||||||
Operating income (loss) | 4,787,000 | (680,000 | ) | 18,307,000 | 10,642,000 | |||||||||||
Other expense (income): | ||||||||||||||||
Gain on acquisition | — | — | (1,331,000 | ) | — | |||||||||||
Interest expense | 964,000 | 1,027,000 | 4,710,000 | 4,215,000 | ||||||||||||
Interest income | — | — | — | (19,000 | ) | |||||||||||
Income (loss) before income tax expense (benefit) | 3,823,000 | (1,707,000 | ) | 14,928,000 | 6,446,000 | |||||||||||
Income tax expense (benefit) | 952,000 | (526,000 | ) | 5,282,000 | 2,589,000 | |||||||||||
Net income (loss) | $ | 2,871,000 | $ | (1,181,000 | ) | $ | 9,646,000 | $ | 3,857,000 | |||||||
Basic net income (loss) per share | $ | 0.24 | $ | (0.10 | ) | $ | 0.80 | $ | 0.32 | |||||||
Diluted net income (loss) per share | $ | 0.24 | $ | (0.10 | ) | $ | 0.80 | $ | 0.32 | |||||||
Weighted average number of shares outstanding: | ||||||||||||||||
Basic | 12,023,688 | 11,962,021 | 11,988,692 | 11,995,622 | ||||||||||||
Diluted | 12,156,354 | 11,962,021 | 12,116,615 | 12,086,126 | ||||||||||||
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
March 31,
Consolidated Balance Sheets
March 31,
2010 | 2009 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 1,210,000 | $ | 452,000 | ||||
Short-term investments | 451,000 | 335,000 | ||||||
Accounts receivable — net | — | 11,121,000 | ||||||
Inventory— net | 31,547,000 | 27,923,000 | ||||||
Inventory unreturned | 3,924,000 | 4,708,000 | ||||||
Deferred income taxes | 8,391,000 | 8,277,000 | ||||||
Prepaid expenses and other current assets | 2,735,000 | 1,355,000 | ||||||
Total current assets | 48,258,000 | 54,171,000 | ||||||
Plant and equipment — net | 12,693,000 | 13,997,000 | ||||||
Long-term core inventory | 67,957,000 | 62,821,000 | ||||||
Long-term core inventory deposit | 25,768,000 | 24,451,000 | ||||||
Long-term deferred income taxes | 951,000 | 989,000 | ||||||
Intangible assets — net | 6,304,000 | 2,564,000 | ||||||
Other assets | 1,549,000 | 595,000 | ||||||
TOTAL ASSETS | $ | 163,480,000 | $ | 159,588,000 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 31,603,000 | $ | 24,507,000 | ||||
Accrued liabilities | 3,764,000 | 1,451,000 | ||||||
Accrued salaries and wages | 3,590,000 | 3,162,000 | ||||||
Accrued workers’ compensation claims | 1,574,000 | 1,895,000 | ||||||
Income tax payable | 678,000 | 1,158,000 | ||||||
Note payable | — | 722,000 | ||||||
Revolving loan | — | 21,600,000 | ||||||
Other current liabilities | 697,000 | 1,624,000 | ||||||
Current portion of term loan | 2,000,000 | — | ||||||
Current portion of capital lease obligations | 953,000 | 1,621,000 | ||||||
Total current liabilities | 44,859,000 | 57,740,000 | ||||||
Term loan, less current portion | 7,500,000 | — | ||||||
Deferred core revenue | 6,061,000 | 5,934,000 | ||||||
Deferred gain on sale-leaseback | 319,000 | 843,000 | ||||||
Other liabilities | 676,000 | 587,000 | ||||||
Capital lease obligations, less current portion | 445,000 | 1,401,000 | ||||||
Total liabilities | 59,860,000 | 66,505,000 | ||||||
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; 12,026,021 and 11,962,021 shares issued and outstanding at March 31, 2010 and 2009, respectively | 120,000 | 120,000 | ||||||
Additional paid-in capital | 92,792,000 | 92,459,000 | ||||||
Additional paid-in capital-warrant | 1,879,000 | 1,879,000 | ||||||
Accumulated other comprehensive loss | (1,426,000 | ) | (1,984,000 | ) | ||||
Retained earnings | 10,255,000 | 609,000 | ||||||
Total shareholders’ equity | 103,620,000 | 93,083,000 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 163,480,000 | $ | 159,588,000 | ||||