Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2022 | Nov. 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Transition Report | false | |
Entity File Number | 001-33861 | |
Entity Registrant Name | MOTORCAR PARTS OF AMERICA INC | |
Entity Central Index Key | 0000918251 | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 11-2153962 | |
Entity Address, Address Line One | 2929 California Street | |
Entity Address, City or Town | Torrance | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90503 | |
City Area Code | 310 | |
Local Phone Number | 212-7910 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | MPAA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 19,422,181 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2022 | Mar. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 7,611,000 | $ 23,016,000 |
Short-term investments | 1,989,000 | 2,202,000 |
Accounts receivable - net | 79,861,000 | 85,075,000 |
Inventory | 401,202,000 | 385,504,000 |
Contract assets | 33,861,000 | 27,500,000 |
Prepaid expenses and other current assets | 15,511,000 | 13,688,000 |
Total current assets | 540,035,000 | 536,985,000 |
Plant and equipment - net | 47,853,000 | 51,062,000 |
Operating lease assets | 77,965,000 | 81,997,000 |
Long-term deferred income taxes | 28,150,000 | 26,982,000 |
Long-term contract assets | 313,188,000 | 310,255,000 |
Goodwill and intangible assets - net | 6,046,000 | 7,004,000 |
Other assets | 1,476,000 | 1,413,000 |
TOTAL ASSETS | 1,014,713,000 | 1,015,698,000 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 169,518,000 | 168,435,000 |
Customer finished goods returns accrual | 27,516,000 | 38,086,000 |
Contract liabilities | 50,213,000 | 42,496,000 |
Revolving loan | 163,000,000 | 155,000,000 |
Other current liabilities | 4,841,000 | 11,930,000 |
Operating lease liabilities | 6,752,000 | 6,788,000 |
Current portion of term loan | 3,670,000 | 3,670,000 |
Total current liabilities | 425,510,000 | 426,405,000 |
Term loan, less current portion | 11,171,000 | 13,024,000 |
Long-term contract liabilities | 181,145,000 | 172,764,000 |
Long-term deferred income taxes | 115,000 | 126,000 |
Long-term operating lease liabilities | 78,359,000 | 80,803,000 |
Other liabilities | 7,715,000 | 7,313,000 |
Total liabilities | 704,015,000 | 700,435,000 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock | 0 | 0 |
Common stock; par value $.01 per share, 50,000,000 shares authorized; 19,423,148 and 19,104,751 shares issued and outstanding at September 30, 2022 and March 31, 2022, respectively | 194,000 | 191,000 |
Additional paid-in capital | 229,489,000 | 227,184,000 |
Retained earnings | 86,262,000 | 92,954,000 |
Accumulated other comprehensive loss | (5,247,000) | (5,066,000) |
Total shareholders' equity | 310,698,000 | 315,263,000 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,014,713,000 | 1,015,698,000 |
Series A Junior Participating Preferred Stock [Member] | ||
Shareholders' equity: | ||
Preferred stock | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Mar. 31, 2022 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 19,423,148 | 19,104,751 |
Common stock, outstanding (in shares) | 19,423,148 | 19,104,751 |
Series A Junior Participating Preferred Stock [Member] | ||
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 20,000 | 20,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Condensed Consolidated Statements of Operations [Abstract] | ||||
Net sales | $ 172,543,000 | $ 175,548,000 | $ 336,528,000 | $ 324,582,000 |
Cost of goods sold | 146,027,000 | 139,597,000 | 279,710,000 | 265,060,000 |
Gross profit | 26,516,000 | 35,951,000 | 56,818,000 | 59,522,000 |
Operating expenses: | ||||
General and administrative | 14,846,000 | 14,465,000 | 28,480,000 | 26,951,000 |
Sales and marketing | 6,066,000 | 5,520,000 | 11,608,000 | 10,888,000 |
Research and development | 2,670,000 | 2,495,000 | 5,783,000 | 4,996,000 |
Foreign exchange impact of lease liabilities and forward contracts | 1,082,000 | 3,917,000 | 1,760,000 | 1,384,000 |
Total operating expenses | 24,664,000 | 26,397,000 | 47,631,000 | 44,219,000 |
Operating income | 1,852,000 | 9,554,000 | 9,187,000 | 15,303,000 |
Interest expense, net | 9,283,000 | 3,620,000 | 16,204,000 | 7,561,000 |
(Loss) income before income tax (benefit) expense | (7,431,000) | 5,934,000 | (7,017,000) | 7,742,000 |
Income tax (benefit) expense | (914,000) | 2,251,000 | (325,000) | 3,198,000 |
Net (loss) income | $ (6,517,000) | $ 3,683,000 | $ (6,692,000) | $ 4,544,000 |
Basic net (loss) income per share (in dollars per share) | $ (0.34) | $ 0.19 | $ (0.35) | $ 0.24 |
Diluted net (loss) income per share (in dollars per share) | $ (0.34) | $ 0.19 | $ (0.35) | $ 0.23 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 19,272,557 | 19,135,356 | 19,197,181 | 19,094,904 |
Diluted (in shares) | 19,272,557 | 19,619,774 | 19,197,181 | 19,638,045 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Condensed Consolidated Statements of Comprehensive (Loss) Income [Abstract] | ||||
Net (loss) income | $ (6,517,000) | $ 3,683,000 | $ (6,692,000) | $ 4,544,000 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation gain (loss) | 687,000 | 611,000 | (181,000) | 2,444,000 |
Total other comprehensive income (loss), net of tax | 687,000 | 611,000 | (181,000) | 2,444,000 |
Comprehensive (loss) income | $ (5,830,000) | $ 4,294,000 | $ (6,873,000) | $ 6,988,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Total |
Beginning balance at Mar. 31, 2021 | $ 190,000 | $ 223,058,000 | $ 85,593,000 | $ (7,696,000) | $ 301,145,000 |
Beginning balance (in shares) at Mar. 31, 2021 | 19,045,386 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Compensation recognized under employee stock plans | $ 0 | 1,576,000 | 0 | 0 | 1,576,000 |
Exercise of stock options, net of shares withheld for employee taxes | $ 0 | 354,000 | 0 | 0 | 354,000 |
Exercise of stock options, net of shares withheld for employee taxes (in Shares) | 19,837 | ||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes | $ 1,000 | (543,000) | 0 | 0 | (542,000) |
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes (in shares) | 35,869 | ||||
Foreign currency translation | $ 0 | 0 | 0 | 1,833,000 | 1,833,000 |
Net (loss) income | 0 | 0 | 861,000 | 0 | 861,000 |
Ending balance at Jun. 30, 2021 | $ 191,000 | 224,445,000 | 86,454,000 | (5,863,000) | 305,227,000 |
Ending balance (in shares) at Jun. 30, 2021 | 19,101,092 | ||||
Beginning balance at Mar. 31, 2021 | $ 190,000 | 223,058,000 | 85,593,000 | (7,696,000) | 301,145,000 |
Beginning balance (in shares) at Mar. 31, 2021 | 19,045,386 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation | 2,444,000 | ||||
Net (loss) income | 4,544,000 | ||||
Ending balance at Sep. 30, 2021 | $ 192,000 | 225,170,000 | 90,137,000 | (5,252,000) | 310,247,000 |
Ending balance (in shares) at Sep. 30, 2021 | 19,172,755 | ||||
Beginning balance at Jun. 30, 2021 | $ 191,000 | 224,445,000 | 86,454,000 | (5,863,000) | 305,227,000 |
Beginning balance (in shares) at Jun. 30, 2021 | 19,101,092 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Compensation recognized under employee stock plans | $ 0 | 1,851,000 | 0 | 0 | 1,851,000 |
Exercise of stock options, net of shares withheld for employee taxes | $ 0 | 78,000 | 0 | 0 | 78,000 |
Exercise of stock options, net of shares withheld for employee taxes (in Shares) | 7,860 | ||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes | $ 1,000 | (1,204,000) | 0 | 0 | (1,203,000) |
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes (in shares) | 63,803 | ||||
Foreign currency translation | $ 0 | 0 | 0 | 611,000 | 611,000 |
Net (loss) income | 0 | 0 | 3,683,000 | 0 | 3,683,000 |
Ending balance at Sep. 30, 2021 | $ 192,000 | 225,170,000 | 90,137,000 | (5,252,000) | 310,247,000 |
Ending balance (in shares) at Sep. 30, 2021 | 19,172,755 | ||||
Beginning balance at Mar. 31, 2022 | $ 191,000 | 227,184,000 | 92,954,000 | (5,066,000) | $ 315,263,000 |
Beginning balance (in shares) at Mar. 31, 2022 | 19,104,751 | 19,104,751 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Compensation recognized under employee stock plans | $ 0 | 1,249,000 | 0 | 0 | $ 1,249,000 |
Exercise of stock options, net of shares withheld for employee taxes | $ 0 | 191,000 | 0 | 0 | 191,000 |
Exercise of stock options, net of shares withheld for employee taxes (in Shares) | 25,543 | ||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes | $ 1,000 | (895,000) | 0 | 0 | (894,000) |
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes (in shares) | 84,684 | ||||
Foreign currency translation | $ 0 | 0 | 0 | (868,000) | (868,000) |
Net (loss) income | 0 | 0 | (175,000) | 0 | (175,000) |
Ending balance at Jun. 30, 2022 | $ 192,000 | 227,729,000 | 92,779,000 | (5,934,000) | 314,766,000 |
Ending balance (in shares) at Jun. 30, 2022 | 19,214,978 | ||||
Beginning balance at Mar. 31, 2022 | $ 191,000 | 227,184,000 | 92,954,000 | (5,066,000) | $ 315,263,000 |
Beginning balance (in shares) at Mar. 31, 2022 | 19,104,751 | 19,104,751 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation | $ (181,000) | ||||
Net (loss) income | (6,692,000) | ||||
Ending balance at Sep. 30, 2022 | $ 194,000 | 229,489,000 | 86,262,000 | (5,247,000) | $ 310,698,000 |
Ending balance (in shares) at Sep. 30, 2022 | 19,423,148 | 19,423,148 | |||
Beginning balance at Jun. 30, 2022 | $ 192,000 | 227,729,000 | 92,779,000 | (5,934,000) | $ 314,766,000 |
Beginning balance (in shares) at Jun. 30, 2022 | 19,214,978 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Compensation recognized under employee stock plans | $ 0 | 1,251,000 | 0 | 0 | 1,251,000 |
Exercise of stock options, net of shares withheld for employee taxes | $ 2,000 | 584,000 | 0 | 0 | 586,000 |
Exercise of stock options, net of shares withheld for employee taxes (in Shares) | 193,378 | ||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes | $ 0 | (75,000) | 0 | 0 | (75,000) |
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes (in shares) | 14,792 | ||||
Foreign currency translation | $ 0 | 0 | 0 | 687,000 | 687,000 |
Net (loss) income | 0 | 0 | (6,517,000) | 0 | (6,517,000) |
Ending balance at Sep. 30, 2022 | $ 194,000 | $ 229,489,000 | $ 86,262,000 | $ (5,247,000) | $ 310,698,000 |
Ending balance (in shares) at Sep. 30, 2022 | 19,423,148 | 19,423,148 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (6,692,000) | $ 4,544,000 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Depreciation and amortization | 6,214,000 | 6,364,000 |
Amortization of interest | 698,000 | 856,000 |
Amortization of core premiums paid to customers | 5,759,000 | 5,543,000 |
Amortization of finished goods premiums paid to customers | 349,000 | 324,000 |
Noncash lease expense | 3,873,000 | 3,656,000 |
Gain due to the change in the fair value of the contingent consideration | 0 | 70,000 |
Foreign exchange impact of lease liabilities and forward contracts | 1,760,000 | 1,384,000 |
Loss (gain) on short-term investments | 387,000 | (175,000) |
Net provision for inventory reserves | 8,715,000 | 6,305,000 |
Net provision for customer payment discrepancies and credit losses | 1,012,000 | 961,000 |
Deferred income taxes | (1,230,000) | (434,000) |
Share-based compensation expense | 2,500,000 | 3,427,000 |
Loss on disposal of plant and equipment | 16,000 | 34,000 |
Change in operating assets and liabilities: | ||
Accounts receivable | 3,370,000 | 1,403,000 |
Inventory | (26,286,000) | (34,185,000) |
Prepaid expenses and other current assets | (3,039,000) | (859,000) |
Other assets | (70,000) | 108,000 |
Accounts payable and accrued liabilities | 4,176,000 | (21,512,000) |
Customer finished goods returns accrual | (10,533,000) | 3,005,000 |
Contract assets, net | (15,556,000) | (47,006,000) |
Contract liabilities, net | 16,126,000 | 45,087,000 |
Operating lease liabilities | (3,249,000) | (2,701,000) |
Other liabilities | (5,254,000) | (538,000) |
Net cash used in operating activities | (16,954,000) | (24,339,000) |
Cash flows from investing activities: | ||
Purchase of plant and equipment | (2,644,000) | (3,238,000) |
Purchase of short-term investments | (173,000) | (245,000) |
Net cash used in investing activities | (2,817,000) | (3,483,000) |
Cash flows from financing activities: | ||
Borrowings under revolving loan | 40,000,000 | 57,000,000 |
Repayments of revolving loan | (32,000,000) | (21,000,000) |
Repayments of term loan | (1,875,000) | (1,875,000) |
Payments for debt issuance costs | (21,000) | (1,102,000) |
Payments on finance lease obligations | (1,223,000) | (1,427,000) |
Exercise of stock options, net of cash used to pay employee taxes | 777,000 | 432,000 |
Cash used to net share settle equity awards | (969,000) | (1,745,000) |
Net cash provided by financing activities | 4,689,000 | 30,283,000 |
Effect of exchange rate changes on cash and cash equivalents | (323,000) | (73,000) |
Net (decrease) increase in cash and cash equivalents | (15,405,000) | 2,388,000 |
Cash and cash equivalents - Beginning of period | 23,016,000 | 15,523,000 |
Cash and cash equivalents - End of period | 7,611,000 | 17,911,000 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest, net | 15,343,000 | 6,654,000 |
Cash paid for income taxes, net of refunds | 12,336,000 | 4,525,000 |
Cash paid for operating leases | 5,642,000 | 5,207,000 |
Cash paid for finance leases | 1,355,000 | 1,613,000 |
Plant and equipment acquired under finance leases | 529,000 | 252,000 |
Assets acquired under operating leases | 967,000 | 15,953,000 |
Non-cash capital expenditures | $ 272,000 | $ 198,000 |
Company Background and Organiza
Company Background and Organization | 6 Months Ended |
Sep. 30, 2022 | |
Company Background and Organization [Abstract] | |
Company Background and Organization | 1. Company Background and Organization Motorcar Parts of America, Inc. and its subsidiaries (the “Company”, or “MPA”) is a leading supplier of automotive aftermarket non-discretionary replacement parts, and test solutions and diagnostic equipment. These replacement parts are primarily sold to automotive retail chain stores and warehouse distributors throughout North America and to major automobile manufacturers for both their aftermarket programs and warranty replacement programs (“OES”). The Company’s test solutions and diagnostic equipment primarily serves the global automotive component and powertrain testing market. The Company’s products include (i) rotating electrical products such as alternators and starters, (ii) wheel hub assemblies and bearings, (iii) brake-related products, which include brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders, and (iv) other products, which include (a) turbochargers and (b) test solutions and diagnostic equipment used for electric vehicle powertrain development and manufacturing including electric motor test systems, e-axle test systems, advanced power emulators, charging unit test systems, test systems for alternators and starters, belt starter generators, bench-top testers, and specialized test services for electric vehicle inverters. Pursuant to the guidance provided under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) for segment reporting, the Company has identified its chief operating decision maker (“CODM”), reviewed the documents used by the CODM, and understands how such documents are used by the CODM to make financial and operating decisions. The Company has determined through this review process that its business comprises three separate operating segments. The operating segments meet all the criteria to be aggregated and are presented as such. Impact of the Novel Coronavirus (“COVID-19”) The outbreak of the COVID-19 pandemic continues to adversely impact the U.S. and global economies – creating uncertainty regarding the potential effects on the Company’s employees, supply chain, operations, and customer demand. The COVID-19 pandemic could impact the Company’s operations and the operations of its customers, suppliers, and vendors because of quarantines, facility closures, travel, and logistics restrictions. The extent to which the COVID-19 pandemic impacts the Company will depend on numerous factors and future developments, which are highly uncertain and cannot be predicted, including, but not limited to: (i) the severity of the virus, (ii) the occurrence and duration of additional spikes in infections, (iii) the effects of the pandemic on customers, suppliers, and vendors, (iv) the remedial actions and stimulus measures adopted by local, state and federal governments, (v) the availability and acceptance of vaccines, and (vi) the extent to which normal economic and operating conditions can resume. Even after the COVID-19 pandemic has subsided, the Company may continue to experience adverse impacts to its business because of an economic recession or depression that has occurred or may occur in the future. |
Basis of Presentation and New A
Basis of Presentation and New Accounting Pronouncements | 6 Months Ended |
Sep. 30, 2022 | |
Basis of Presentation and New Accounting Pronouncements [Abstract] | |
Basis of Presentation and New Accounting Pronouncements | 2. Basis of Presentation and New Accounting Pronouncements Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2023. This report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2022, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on June 14, 2022. The accompanying condensed consolidated financial statements have been prepared on a consistent basis with, and there have been no material changes to the accounting policies described in Note 2 Summary of Significant Accounting Policies, to the consolidated financial statements that are presented in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022. |
Accounts Receivable - Net
Accounts Receivable - Net | 6 Months Ended |
Sep. 30, 2022 | |
Accounts Receivable - Net [Abstract] | |
Accounts Receivable - Net | 3. Accounts Receivable — Net The Company has trade accounts receivable that result from the sale of goods and services. Accounts receivable — net includes offset accounts related to allowances for credit losses, customer payment discrepancies, and returned goods authorizations (“RGAs”) issued for in-transit unit returns. The Company believes its credit risk with respect to trade accounts receivable is limited due to its credit evaluation process and the long-term nature of its relationships with its largest customers. The Company utilizes a historical loss rate method, adjusted for any changes in economic conditions or risk characteristics, to estimate its expected credit losses each period. When developing an estimate of expected credit losses, the Company considers all available relevant information regarding the collectability of cash flows, including historical information, current conditions, and reasonable and supportable forecasts of future economic conditions over the contractual life of the receivable. The historical loss rate method considers past write-offs of trade accounts receivable over a period commensurate with the initial term of the Company’s contracts with its customers. The Company recognizes the allowance for credit losses at inception and reassesses quarterly based on management’s expectation of the asset’s collectability. The Company’s accounts receivable are short-term in nature and written off only when all collection attempts have failed. The Company uses receivable discount programs with certain customers and their respective banks (see Note 10). Accounts receivable — net is comprised of the following: September 30, 2022 March 31, 2022 Accounts receivable — trade $ 101,989,000 $ 98,734,000 Allowance for credit losses (242,000 ) (375,000 ) Customer payment discrepancies (1,604,000 ) (1,375,000 ) Customer returns RGA issued (20,282,000 ) (11,909,000 ) Total accounts receivable — net $ 79,861,000 $ 85,075,000 The following table provides a roll-forward of the allowance for credit losses that is deducted from accounts receivable to present the net amount expected to be collected. Six Months Ended September 30, 2022 2021 Balance at beginning of period $ 375,000 $ 348,000 Provision for expected credit losses 11,000 17,000 Recoveries - - Amounts written off charged against the allowance (144,000 ) (39,000 ) Balance at end of period $ 242,000 $ 326,000 |
Inventory
Inventory | 6 Months Ended |
Sep. 30, 2022 | |
Inventory [Abstract] | |
Inventory | 4. Inventory Inventory is comprised of the following: September 30, 2022 March 31, 2022 Inventory Raw materials $ 148,948,000 $ 150,414,000 Work-in-process 7,035,000 6,880,000 Finished goods 243,223,000 226,729,000 399,206,000 384,023,000 Less allowance for excess and obsolete inventory (13,577,000 ) (13,520,000 ) Inventory — net 385,629,000 370,503,000 Inventory unreturned 15,573,000 15,001,000 Total inventory $ 401,202,000 $ 385,504,000 |
Contract Assets
Contract Assets | 6 Months Ended |
Sep. 30, 2022 | |
Contract Assets [Abstract] | |
Contract Assets | 5. Contract Assets During the three months ended September 30, 2022 and 2021, the Company reduced the carrying value of Remanufactured Cores held at customers’ locations by and $ , respectively. During the six months ended September 30, 2022 and 2021, the Company reduced the carrying value of Remanufactured Cores held at customers’ locations by $1,841,000 and $2,671,000, respectively . Contract assets are comprised of the following: September 30, 2022 March 31, 2022 Short-term contract assets Cores expected to be returned by customers $ 22,264,000 $ 15,778,000 Core premiums paid to customers 10,062,000 10,621,000 Upfront payments to customers 958,000 517,000 Finished goods premiums paid to customers 577,000 584,000 Total short-term contract assets $ 33,861,000 $ 27,500,000 Remanufactured cores held at customers’ locations $ 262,342,000 $ 258,376,000 Core premiums paid to customers 42,495,000 43,294,000 Long-term core inventory deposits 5,569,000 5,569,000 Finished goods premiums paid to customers 2,714,000 2,806,000 Upfront payments to customers 68,000 210,000 Total long-term contract assets $ 313,188,000 $ 310,255,000 |
Significant Customer and Other
Significant Customer and Other Information | 6 Months Ended |
Sep. 30, 2022 | |
Significant Customer and Other Information [Abstract] | |
Significant Customer and Other Information | 6. Significant Customer and Other Information Significant Customer Concentrations The largest customers accounted for the following percentage of net sales: Three Months Ended September 30, Six Months Ended September 30, 2022 2021 2022 2021 Net sales Customer A 39 % 40 % 38 % 37 % Customer B 20 % 17 % 22 % 18 % Customer C 26 % 30 % 23 % 30 % Customer D 4 % 2 % 4 % 2 % The largest customers accounted for the following percentage of accounts receivable – trade: September 30, 2022 March 31, 2022 Accounts receivable - trade Customer A 43 % 42 % Customer B 20 % 21 % Customer C 2 % 9 % Customer D 10 % 5 % Geographic and Product Information The Company’s products are sold predominantly in the U.S. and accounted for the following percentages of net sales: Three Months Ended September 30, Six Months Ended September 30, 2022 2021 2022 2021 Product line Rotating electrical products 67 % 73 % 67 % 71 % Wheel hub products 11 % 11 % 11 % 12 % Brake-related products 20 % 14 % 19 % 15 % Other products 2 % 2 % 3 % 2 % 100 % 100 % 100 % 100 % Significant Supplier Concentrations The Company had no suppliers that accounted for more than 10% of inventory purchases for the three and six months ended September 30, 2022 and 2021. |
Debt
Debt | 6 Months Ended |
Sep. 30, 2022 | |
Debt [Abstract] | |
Debt | 7. Debt The Company is party to a $268,620,000 senior secured financing, (as amended from time to time, the “Credit Facility”) with a syndicate of lenders and PNC Bank, National Association, as administrative agent, consisting of (i) a $238,620,000 revolving loan facility, subject to borrowing base restrictions, a $24,000,000 sublimit for borrowings by Canadian borrowers, and a $20,000,000 sublimit for letters of credit (the “Revolving Facility”) and (ii) a $30,000,000 term loan facility (the “Term Loans”). The loans under the Credit Facility mature on May 28, 2026. The Credit Facility currently permits the payment of up to $29,043,000 of dividends and share repurchases for fiscal year 2023, subject to pro forma compliance with financial covenants. In connection with the Credit Facility, the lenders have a security interest in substantially all of the assets of the Company. The Term Loans require quarterly principal payments of $937,500. The Credit Facility bears interest at rates equal to either LIBOR plus a margin of 2.25%, 2.50% or 2.75% or a reference rate plus a margin of 1.25%, 1.50% or 1.75%, in each case depending on the senior leverage ratio as of the applicable measurement date. There is also a facility fee of 0.375% to 0.50%, depending on the senior leverage ratio as of the applicable measurement date. The interest rate on the Company’s Term Loans and Revolving Facility was 5.32% and 5.62% respectively, at September 30, 2022, and 2.99% and 3.13% respectively, at March 31, 2022. On November 3, 2022, the Company entered into a fourth amendment to the Credit Facility (the “Fourth Amendment”). The Fourth Amendment, among other things, (i) modified the fixed charge coverage ratio financial covenant for the fiscal quarters ending September 30, 2022 and December 31, 2022, (ii) modified the senior leverage ratio financial covenant for the fiscal quarter ending September 30, 2022, (iii) modified the definition of “Consolidated EBITDA”, and (iv) replaces LIBOR as the benchmark rate with a replacement benchmark based on the Secured Overnight Financing Rate (“SOFR”) effective beginning November 3, 2022. The modifications to the financial covenants were effective as of September 30, 2022. The Credit Facility, among other things, requires the Company to maintain certain financial covenants including a maximum senior leverage ratio and a minimum fixed charge coverage ratio. The Company was in compliance with all financial covenants at In addition to other covenants, the Credit Facility places limits on the Company’s ability to incur liens, incur additional indebtedness, make loans and investments, engage in mergers and acquisitions, engage in asset sales, redeem, or repurchase capital stock, alter the business conducted by the Company and its subsidiaries, transact with affiliates, prepay, redeem, or purchase subordinated debt, and amend or otherwise alter debt agreements. The following summarizes information about the Term Loans: September 30, 2022 March 31, 2022 Principal amount of Term Loans $ 15,000,000 $ 16,875,000 Unamortized financing fees (159,000 ) (181,000 ) Net carrying amount of Term Loans 14,841,000 16,694,000 Less current portion of Term Loans (3,670,000 ) (3,670,000 ) Long-term portion of Term Loans $ 11,171,000 $ 13,024,000 Future repayments of the Term Loans are as follows: Year Ending March 31, 2023 $ 1,875,000 2024 3,750,000 2025 3,750,000 2026 3,750,000 2027 1,875,000 Total payments $ 15,000,000 The Company had $ and $155,000,000 outstanding under the Revolving Facility at and , respectively. In addition, $6,370,000 was outstanding for letters of credit at 2. At , after certain contractual adjustments, $ was available under the Revolving |
Contract Liabilities
Contract Liabilities | 6 Months Ended |
Sep. 30, 2022 | |
Contract Liabilities [Abstract] | |
Contract Liabilities | 8. Contract Liabilities Contract liabilities are comprised of the following: September 30, 2022 March 31, 2022 Short-term contract liabilities Customer core returns accruals $ 20,984,000 $ 12,322,000 Customer allowances earned 18,923,000 22,018,000 Customer deposits 3,876,000 3,306,000 Accrued core payment 2,999,000 1,679,000 Finished goods liabilities 1,771,000 1,537,000 Core bank liability 1,660,000 1,634,000 Total short-term contract liabilities $ 50,213,000 $ 42,496,000 Long-term contract liabilities Customer core returns accruals $ 155,040,000 $ 154,940,000 Core bank liability 14,432,000 15,267,000 Accrued core payment 10,467,000 928,000 Finished goods liabilities 1,206,000 1,588,000 Customer allowances earned - 41,000 Total long-term contract liabilities $ 181,145,000 $ 172,764,000 |
Leases
Leases | 6 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | 9. Leases The Company leases various facilities in North America and Asia under operating leases expiring through August 2033 The Company has material nonfunctional currency leases that could have a material impact on the Company’s condensed consolidated statements of operations. As required for other monetary liabilities, lessees remeasure foreign currency-denominated lease liabilities using the exchange rate at each reporting date, but the lease assets are nonmonetary assets measured at historical rates and are not affected by subsequent changes in the exchange rates. In connection with the remeasurement of these leases, the Company recorded losses of $ and $ during the three months ended September 30, 2022 and 2021, respectively Balance sheet information for leases is as follows: Leases Classification September 30, 2022 March 31, 2022 Assets: Operating Operating lease assets $ 77,965,000 $ 81,997,000 Finance Plant and equipment 6,543,000 7,470,000 Total leased assets $ 84,508,000 $ 89,467,000 Liabilities: Current Operating Operating lease liabilities $ 6,752,000 $ 6,788,000 Finance Other current liabilities 2,082,000 2,330,000 Long-term Operating Long-term operating lease liabilities 78,359,000 80,803,000 Finance Other liabilities 2,967,000 3,425,000 Total lease liabilities $ 90,160,000 $ 93,346,000 Lease cost recognized in the condensed consolidated statements of operations is as follows: Three Months Ended Six Months Ended September 30, September 30, 2022 2021 2022 2021 Lease cost Operating lease cost $ 3,130,000 $ 3,149,000 $ 6,295,000 $ 6,191,000 Short-term lease cost 559,000 375,000 1,013,000 751,000 Variable lease cost 179,000 210,000 364,000 491,000 Finance lease cost: Amortization of finance lease assets 489,000 565,000 1,028,000 1,064,000 Interest on finance lease liabilities 64,000 89,000 132,000 186,000 Total lease cost $ 4,421,000 $ 4,388,000 $ 8,832,000 $ 8,683,000 Maturities of lease commitments at September 30, 2022 by fiscal year were as follows: Maturity of lease liabilities Operating Leases Finance Leases Total 2023 $ 5,925,000 $ 1,273,000 $ 7,198,000 2024 10,488,000 1,895,000 12,383,000 2025 10,389,000 1,394,000 11,783,000 2026 10,356,000 662,000 11,018,000 2027 10,494,000 172,000 10,666,000 Thereafter 64,621,000 33,000 64,654,000 Total lease payments 112,273,000 5,429,000 117,702,000 Less amount representing interest (27,162,000 ) (380,000 ) (27,542,000 ) Present value of lease liabilities $ 85,111,000 $ 5,049,000 $ 90,160,000 Other information about leases is as follows: September 30, 2022 March 31, 2022 Lease term and discount rate Weighted-average remaining lease term (years): Finance leases 2.8 2.9 Operating leases 9.9 10.4 Weighted-average discount rate: Finance leases 5.4 % 5.1 % Operating leases 5.7 % 5.7 % |
Accounts Receivable Discount Pr
Accounts Receivable Discount Programs | 6 Months Ended |
Sep. 30, 2022 | |
Accounts Receivable Discount Programs [Abstract] | |
Accounts Receivable Discount Programs | 10. Accounts Receivable Discount Programs The Company uses receivable discount programs with certain customers and their respective banks. Under these programs, the Company may sell those customers’ receivables to those banks at a discount to be agreed upon at the time the receivables are sold. These discount arrangements allow the Company to accelerate receipt of payment on customers’ receivables. The following is a summary of accounts receivable discount programs: Six Months Ended September 30, 2022 2021 Receivables discounted $ 283,359,000 $ 268,410,000 Weighted average number of days collection was accelerated 327 333 Annualized weighted average discount rate 4.4 % 1.8 % Amount of discount recognized as interest expense $ 11,293,000 $ 4,432,000 |
Net (Loss) Income per Share
Net (Loss) Income per Share | 6 Months Ended |
Sep. 30, 2022 | |
Net (Loss) Income per Share [Abstract] | |
Net (Loss) Income per Share | 11. Net (Loss) Income per Share Basic net (loss) income per share is computed by dividing net (loss) (loss) The following presents a reconciliation of basic and diluted net (loss) income Three Months Ended September 30, Six Months Ended September 30, 2022 2021 2022 2021 Net (loss) $ (6,517,000 ) $ 3,683,000 $ (6,692,000 ) $ 4,544,000 Basic shares 19,272,557 19,135,356 19,197,181 19,094,904 Effect of potentially dilutive securities - 484,418 - 543,141 Diluted shares 19,272,557 19,619,774 19,197,181 19,638,045 Net (loss) income Basic net (loss) income $ (0.34 ) $ 0.19 $ (0.35 ) $ 0.24 Diluted net (loss) income $ (0.34 ) $ 0.19 $ (0.35 ) $ 0.23 Potential common shares that would have the effect of increasing diluted net income per share or decreasing diluted net loss per share are considered to be anti-dilutive and as such, these shares are not included in calculating diluted net (loss) income per share. (loss) (loss) . |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | 12. Income Taxes The Company recorded income tax benefit of $914,000, or an effective tax rate of 12.3%, and income tax expense of $2,251,000, or an effective tax rate of 37.9%, for the three months ended September 30, 2022 and 2021, respectively. The Company recorded income tax benefit of $325,000, or an effective tax rate of 4.6%, and income tax expense of $3,198,000, or an effective tax rate of 41.3%, for the six months ended September 30, 2022 and 2021, respectively. Effective tax rates are based on current annual projections and any changes in future periods could result in an effective tax rate that is materially different from the current estimate. The effective tax rate for the three months ended September 30, 2022, was primarily impacted by (i) specific jurisdictions that the Company does not expect to recognize the benefit of losses, (ii) foreign income taxed at rates that are different from the federal statutory rate, and (iii) non-deductible executive compensation under Internal Revenue Code Section 162(m). The Company and its subsidiaries file income tax returns in the U.S. federal, various state, and foreign jurisdictions with varying statutes of limitations. At September 30, 2022, the Company is not under examination in any jurisdiction, and remain subject to examination from the years ended March 31, 2017. The Company believes no significant changes in the unrecognized tax benefits will occur within the next 12 months. |
Financial Risk Management and D
Financial Risk Management and Derivatives | 6 Months Ended |
Sep. 30, 2022 | |
Financial Risk Management and Derivatives [Abstract] | |
Financial Risk Management and Derivatives | 13. Financial Risk Management and Derivatives Purchases and expenses denominated in currencies other than the U.S. dollar, which are primarily related to the Company’s overseas facilities, expose the Company to market risk from material movements in foreign exchange rates between the U.S. dollar and the foreign currencies. The Company’s primary risk exposure is from fluctuations in the value of the Mexican peso and to a lesser extent the Chinese yuan. To mitigate these risks, the Company enters into forward foreign currency exchange contracts to exchange U.S. dollars for these foreign currencies. The extent to which forward foreign currency exchange contracts are used, is modified periodically in response to the Company’s estimate of market conditions and the terms and length of anticipated requirements. The Company enters into forward foreign currency exchange contracts in order to reduce the impact of foreign currency fluctuations and not to engage in currency speculation. The use of derivative financial instruments allows the Company to reduce its exposure to the risk that the eventual cash outflow resulting from funding the expenses of the foreign operations will be materially affected by changes in exchange rates between the U.S. dollar and the foreign currencies. The Company does not hold or issue financial instruments for trading purposes. The Company designates forward foreign currency exchange contracts for forecasted expenditure requirements to fund foreign operations. The Company had forward foreign currency exchange contracts with a U.S. dollar equivalent notional value of and at September 30 and March respectively. These contracts generally have a term of or less, at rates agreed at the inception of the contracts. The counterparty to this derivative transaction is a major financial institution with investment grade credit rating; however, the Company is exposed to credit risk with this institution. The credit risk is limited to the potential unrealized gains (which offset currency fluctuations adverse to the Company) in any such contract should this counterparty fail to perform as contracted. Any changes in the fair values of forward foreign currency exchange contracts are included in “foreign exchange impact of lease liabilities and forward contracts” in the condensed consolidated statements of operations. The following shows the effect of derivative instruments on the condensed consolidated statements of operations: Loss Recognized as Foreign Exchange Impact of Lease Liabilities and Forward Contracts Derivatives Not Designated as Three Months Ended September 30, Six Months Ended September 30, Hedging Instruments 2022 2021 2022 2021 Forward foreign currency exchange contracts $ (41,000 ) $ (2,171,000 ) $ (739,000 ) $ (2,433,000 ) The fair value of the forward foreign currency exchange contracts of $374,000 and $ is included in prepaid expenses and other current assets in the condensed consolidated balance sheets at September 30, 2022 and March 31, 2022, respectively. The changes in the fair values of forward foreign currency exchange contracts are included in “foreign exchange impact of lease liabilities and forward contracts” in the condensed consolidated statements of cash flows for the six months ended September 30, 2022 and 2021 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 30, 2022 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 14. Fair Value Measurements The following summarizes financial assets and liabilities measured at fair value, by level within the fair value hierarchy: September 30, 2022 March 31, 2022 Fair Value Measurements Fair Value Measurements Using Inputs Considered as Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Assets Short-term investments Mutual funds $ 1,989,000 $ 1,989,000 $ - $ - $ 2,202,000 $ 2,202,000 $ - $ - Prepaid expenses and other current assets Forward foreign currency exchange contracts 374,000 - 374,000 - 1,113,000 - 1,113,000 - Liabilities Other current liabilities Deferred compensation 1,989,000 1,989,000 - - 2,202,000 2,202,000 - - Short-term Investments and Deferred Compensation The Company’s short-term investments, which fund its deferred compensation liabilities, consist of investments in mutual funds. These investments are classified as Level 1 as the shares of these mutual funds trade with sufficient frequency and volume to enable the Company to obtain pricing information on an ongoing basis. Forward Foreign Currency Exchange Contracts The forward foreign currency exchange contracts are primarily measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers (See Note 13) . The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value due to the short-term nature of these instruments. The carrying amounts of the revolving loan, term loan and other long-term liabilities approximate their fair value based on the variable nature of interest rates and current rates for instruments with similar characteristics. |
Share-based Payments
Share-based Payments | 6 Months Ended |
Sep. 30, 2022 | |
Share-based Payments [Abstract] | |
Share-based Payments | 15. Share-based Payments Stock Options During the six months ended September 30 The following is a summary of stock option transactions: Number of Shares Weighted Average Exercise Price Outstanding at March 31, 2022 1,695,499 $ 17.53 Granted - $ - Exercised (309,191 ) $ 6.59 Forfeited/ Cancelled (92,712 ) $ 18.70 Expired (3,000 ) $ 9.85 Outstanding at September 30, 2022 1,290,596 $ 20.08 At September 30, 2022 At September 30, 2022, there was $480,000 of total unrecognized compensation expense related to unvested stock option awards, which will be recognized over the weighted average remaining vesting period of approximately nine months. Restricted Stock Units and Restricted Stock Awards During the six months ended September 30, 2022 and 2021, the Company granted (i) performance-based restricted stock awards which had a threshold performance level of 33,333 shares, a target performance level of 66,667 shares, and a maximum performance level of 100,000 shares at the grant date for both periods and (ii) 176,353 and 118,928 of time-based vesting restricted stock units, respectively, based on the closing market price on the grant date. The following is a summary of non-vested RSUs: Number of Shares Weighted Average Grant Date Fair Value Outstanding at March 31, 2022 399,063 $ 19.98 Granted 276,353 $ 13.14 Vested (174,781 ) $ 20.51 Forfeited/Cancelled (51,652 ) $ 20.18 Outstanding at September 30, 2022 448,983 $ 15.54 At September 30, 2022 The Company’s unrecognized compensation expense includes restricted stock awards at target performance level. Performance Stock Units (“PSUs”) During the six months ended September 30, 2022 and 2021, the Company granted 126,028 and 84,593 PSUs (at target performance levels), respectively, Adjusted EBITDA and net sales are considered performance conditions. The Company will reassess the probability of achieving each performance condition separately each reporting period. TSR is considered a market condition because it measures the Company’s return against the performance of the Russell 3000, excluding companies classified as financials and real estate, over a given period of time. Compensation cost related to the TSR award will not be adjusted even if the market condition is not met. The Company calculated the fair value of the PSUs for each component individually. The fair value of PSUs subject to performance conditions is equal to the closing stock price on the grant date. The fair value of PSUs subject to the market condition is determined using the Monte Carlo valuation model. The following table summarizes the assumptions used in determining the fair value of the TSR awards: Six Months Ended September 30, 2022 2021 Risk free interest rate 3.35 % 0.47 % Expected life in years 3 3 Expected volatility of MPA common stock 51.30 % 53.70 % Expected average volatility of peer companies 62.70 % 59.30 % Average correlation coefficient of peer companies 27.50 % 26.70 Expected dividend yield - - Grant date fair value $ 16.02 $ 26.89 The following is a summary of non-vested PSUs: Number of Shares Weighted Average Grant Date Fair Value Outstanding at March 31, 2022 84,593 $ 23.19 Granted 126,028 $ 14.00 Vested - $ - Forfeited (4,808 ) $ 23.19 Outstanding at September 30, 2022 205,813 $ 17.57 At September 30, 2022 of unrecognized compensation expense related to these awards, which will be recognized over the weighted average remaining vesting period of approximately years |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Warranty Returns The Company allows its customers to return goods that their consumers have returned to them, whether or not the returned item is defective (“warranty returns”). The Company accrues an estimate of its exposure to warranty returns based on a historical analysis of the level of this type of return as a percentage of unit sales. Amounts charged to expense for these warranty returns are considered in arriving at the Company’s net sales. The following summarizes the changes in the warranty return accrual: Three Months Ended September 30, Six Months Ended September 30, 2022 2021 2022 2021 Balance at beginning of period $ 17,868,000 $ 20,010,000 $ 20,125,000 $ 21,093,000 Charged to expense 33,895,000 30,837,000 64,815,000 58,098,000 Amounts processed (33,302,000 ) (29,972,000 ) (66,479,000 ) (58,316,000 ) Balance at end of period $ 18,461,000 $ 20,875,000 $ 18,461,000 $ 20,875,000 Contingencies The Company is subject to various lawsuits and claims. In addition, government agencies and self-regulatory organizations have the ability to conduct periodic examinations of and administrative proceedings regarding the Company’s business. Following an audit in fiscal 2019, the U.S. Customs and Border Protection stated that it believed that the Company owed additional duties of approximately $17 million from 2011 through mid-2018 relating to products that it imported from Mexico. The Company does not believe that this amount is correct and believes that it has numerous defenses and intends to dispute this amount vigorously. The Company cannot assure that the U.S. Customs and Border Protection will agree or that it will not need to accrue or pay additional amounts in the future. |
Share Repurchases
Share Repurchases | 6 Months Ended |
Sep. 30, 2022 | |
Share Repurchases [Abstract] | |
Share Repurchases | 17. Share Repurchases In August 2018, the Company’s board of directors approved an increase in its share repurchase program from $20,000,000 to $37,000,000 of its common stock. During the three and six mont September September |
Basis of Presentation and New_2
Basis of Presentation and New Accounting Pronouncements (Policies) | 6 Months Ended |
Sep. 30, 2022 | |
Basis of Presentation and New Accounting Pronouncements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2023. This report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2022, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on June 14, 2022. The accompanying condensed consolidated financial statements have been prepared on a consistent basis with, and there have been no material changes to the accounting policies described in Note 2 Summary of Significant Accounting Policies, to the consolidated financial statements that are presented in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022. |
Accounts Receivable - Net (Tabl
Accounts Receivable - Net (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Accounts Receivable - Net [Abstract] | |
Accounts Receivable | Accounts receivable — net is comprised of the following: September 30, 2022 March 31, 2022 Accounts receivable — trade $ 101,989,000 $ 98,734,000 Allowance for credit losses (242,000 ) (375,000 ) Customer payment discrepancies (1,604,000 ) (1,375,000 ) Customer returns RGA issued (20,282,000 ) (11,909,000 ) Total accounts receivable — net $ 79,861,000 $ 85,075,000 |
Allowance for Credit Losses | The following table provides a roll-forward of the allowance for credit losses that is deducted from accounts receivable to present the net amount expected to be collected. Six Months Ended September 30, 2022 2021 Balance at beginning of period $ 375,000 $ 348,000 Provision for expected credit losses 11,000 17,000 Recoveries - - Amounts written off charged against the allowance (144,000 ) (39,000 ) Balance at end of period $ 242,000 $ 326,000 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Inventory [Abstract] | |
Inventory Net | Inventory is comprised of the following: September 30, 2022 March 31, 2022 Inventory Raw materials $ 148,948,000 $ 150,414,000 Work-in-process 7,035,000 6,880,000 Finished goods 243,223,000 226,729,000 399,206,000 384,023,000 Less allowance for excess and obsolete inventory (13,577,000 ) (13,520,000 ) Inventory — net 385,629,000 370,503,000 Inventory unreturned 15,573,000 15,001,000 Total inventory $ 401,202,000 $ 385,504,000 |
Contract Assets (Tables)
Contract Assets (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Contract Assets [Abstract] | |
Contract Assets | Contract assets are comprised of the following: September 30, 2022 March 31, 2022 Short-term contract assets Cores expected to be returned by customers $ 22,264,000 $ 15,778,000 Core premiums paid to customers 10,062,000 10,621,000 Upfront payments to customers 958,000 517,000 Finished goods premiums paid to customers 577,000 584,000 Total short-term contract assets $ 33,861,000 $ 27,500,000 Remanufactured cores held at customers’ locations $ 262,342,000 $ 258,376,000 Core premiums paid to customers 42,495,000 43,294,000 Long-term core inventory deposits 5,569,000 5,569,000 Finished goods premiums paid to customers 2,714,000 2,806,000 Upfront payments to customers 68,000 210,000 Total long-term contract assets $ 313,188,000 $ 310,255,000 |
Significant Customer and Othe_2
Significant Customer and Other Information (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Significant Customer and Other Information [Abstract] | |
Concentrations of Risk | Significant Customer Concentrations The largest customers accounted for the following percentage of net sales: Three Months Ended September 30, Six Months Ended September 30, 2022 2021 2022 2021 Net sales Customer A 39 % 40 % 38 % 37 % Customer B 20 % 17 % 22 % 18 % Customer C 26 % 30 % 23 % 30 % Customer D 4 % 2 % 4 % 2 % The largest customers accounted for the following percentage of accounts receivable – trade: September 30, 2022 March 31, 2022 Accounts receivable - trade Customer A 43 % 42 % Customer B 20 % 21 % Customer C 2 % 9 % Customer D 10 % 5 % Geographic and Product Information The Company’s products are sold predominantly in the U.S. and accounted for the following percentages of net sales: Three Months Ended September 30, Six Months Ended September 30, 2022 2021 2022 2021 Product line Rotating electrical products 67 % 73 % 67 % 71 % Wheel hub products 11 % 11 % 11 % 12 % Brake-related products 20 % 14 % 19 % 15 % Other products 2 % 2 % 3 % 2 % 100 % 100 % 100 % 100 % |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Debt [Abstract] | |
Information About the Term Loan | The following summarizes information about the Term Loans: September 30, 2022 March 31, 2022 Principal amount of Term Loans $ 15,000,000 $ 16,875,000 Unamortized financing fees (159,000 ) (181,000 ) Net carrying amount of Term Loans 14,841,000 16,694,000 Less current portion of Term Loans (3,670,000 ) (3,670,000 ) Long-term portion of Term Loans $ 11,171,000 $ 13,024,000 |
Future Repayments of the Amended Term Loan, by Fiscal Year | Future repayments of the Term Loans are as follows: Year Ending March 31, 2023 $ 1,875,000 2024 3,750,000 2025 3,750,000 2026 3,750,000 2027 1,875,000 Total payments $ 15,000,000 |
Contract Liabilities (Tables)
Contract Liabilities (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Contract Liabilities [Abstract] | |
Contract Liabilities | Contract liabilities are comprised of the following: September 30, 2022 March 31, 2022 Short-term contract liabilities Customer core returns accruals $ 20,984,000 $ 12,322,000 Customer allowances earned 18,923,000 22,018,000 Customer deposits 3,876,000 3,306,000 Accrued core payment 2,999,000 1,679,000 Finished goods liabilities 1,771,000 1,537,000 Core bank liability 1,660,000 1,634,000 Total short-term contract liabilities $ 50,213,000 $ 42,496,000 Long-term contract liabilities Customer core returns accruals $ 155,040,000 $ 154,940,000 Core bank liability 14,432,000 15,267,000 Accrued core payment 10,467,000 928,000 Finished goods liabilities 1,206,000 1,588,000 Customer allowances earned - 41,000 Total long-term contract liabilities $ 181,145,000 $ 172,764,000 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Balance Sheet Information for Leases | Balance sheet information for leases is as follows: Leases Classification September 30, 2022 March 31, 2022 Assets: Operating Operating lease assets $ 77,965,000 $ 81,997,000 Finance Plant and equipment 6,543,000 7,470,000 Total leased assets $ 84,508,000 $ 89,467,000 Liabilities: Current Operating Operating lease liabilities $ 6,752,000 $ 6,788,000 Finance Other current liabilities 2,082,000 2,330,000 Long-term Operating Long-term operating lease liabilities 78,359,000 80,803,000 Finance Other liabilities 2,967,000 3,425,000 Total lease liabilities $ 90,160,000 $ 93,346,000 |
Lease Cost Recognized in Consolidated Statements of Operations | Lease cost recognized in the condensed consolidated statements of operations is as follows: Three Months Ended Six Months Ended September 30, September 30, 2022 2021 2022 2021 Lease cost Operating lease cost $ 3,130,000 $ 3,149,000 $ 6,295,000 $ 6,191,000 Short-term lease cost 559,000 375,000 1,013,000 751,000 Variable lease cost 179,000 210,000 364,000 491,000 Finance lease cost: Amortization of finance lease assets 489,000 565,000 1,028,000 1,064,000 Interest on finance lease liabilities 64,000 89,000 132,000 186,000 Total lease cost $ 4,421,000 $ 4,388,000 $ 8,832,000 $ 8,683,000 |
Maturity of Lease Commitments | Maturities of lease commitments at September 30, 2022 by fiscal year were as follows: Maturity of lease liabilities Operating Leases Finance Leases Total 2023 $ 5,925,000 $ 1,273,000 $ 7,198,000 2024 10,488,000 1,895,000 12,383,000 2025 10,389,000 1,394,000 11,783,000 2026 10,356,000 662,000 11,018,000 2027 10,494,000 172,000 10,666,000 Thereafter 64,621,000 33,000 64,654,000 Total lease payments 112,273,000 5,429,000 117,702,000 Less amount representing interest (27,162,000 ) (380,000 ) (27,542,000 ) Present value of lease liabilities $ 85,111,000 $ 5,049,000 $ 90,160,000 |
Other Information about Leases | Other information about leases is as follows: September 30, 2022 March 31, 2022 Lease term and discount rate Weighted-average remaining lease term (years): Finance leases 2.8 2.9 Operating leases 9.9 10.4 Weighted-average discount rate: Finance leases 5.4 % 5.1 % Operating leases 5.7 % 5.7 % |
Accounts Receivable Discount _2
Accounts Receivable Discount Programs (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Accounts Receivable Discount Programs [Abstract] | |
Accounts Receivable Discount Programs | The following is a summary of accounts receivable discount programs: Six Months Ended September 30, 2022 2021 Receivables discounted $ 283,359,000 $ 268,410,000 Weighted average number of days collection was accelerated 327 333 Annualized weighted average discount rate 4.4 % 1.8 % Amount of discount recognized as interest expense $ 11,293,000 $ 4,432,000 |
Net (Loss) Income per Share (Ta
Net (Loss) Income per Share (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Net (Loss) Income per Share [Abstract] | |
Reconciliation of Basic and Diluted Net (Loss) Income Per Share | The following presents a reconciliation of basic and diluted net (loss) income Three Months Ended September 30, Six Months Ended September 30, 2022 2021 2022 2021 Net (loss) $ (6,517,000 ) $ 3,683,000 $ (6,692,000 ) $ 4,544,000 Basic shares 19,272,557 19,135,356 19,197,181 19,094,904 Effect of potentially dilutive securities - 484,418 - 543,141 Diluted shares 19,272,557 19,619,774 19,197,181 19,638,045 Net (loss) income Basic net (loss) income $ (0.34 ) $ 0.19 $ (0.35 ) $ 0.24 Diluted net (loss) income $ (0.34 ) $ 0.19 $ (0.35 ) $ 0.23 |
Financial Risk Management and_2
Financial Risk Management and Derivatives (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Financial Risk Management and Derivatives [Abstract] | |
Derivative Instruments on Consolidated Statements of Operations | The following shows the effect of derivative instruments on the condensed consolidated statements of operations: Loss Recognized as Foreign Exchange Impact of Lease Liabilities and Forward Contracts Derivatives Not Designated as Three Months Ended September 30, Six Months Ended September 30, Hedging Instruments 2022 2021 2022 2021 Forward foreign currency exchange contracts $ (41,000 ) $ (2,171,000 ) $ (739,000 ) $ (2,433,000 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Fair Value Measurements [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value Recurring Basis | The following summarizes financial assets and liabilities measured at fair value, by level within the fair value hierarchy: September 30, 2022 March 31, 2022 Fair Value Measurements Fair Value Measurements Using Inputs Considered as Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Assets Short-term investments Mutual funds $ 1,989,000 $ 1,989,000 $ - $ - $ 2,202,000 $ 2,202,000 $ - $ - Prepaid expenses and other current assets Forward foreign currency exchange contracts 374,000 - 374,000 - 1,113,000 - 1,113,000 - Liabilities Other current liabilities Deferred compensation 1,989,000 1,989,000 - - 2,202,000 2,202,000 - - |
Share-based Payments (Tables)
Share-based Payments (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Share-based Payments [Abstract] | |
Stock Option Transactions | The following is a summary of stock option transactions: Number of Shares Weighted Average Exercise Price Outstanding at March 31, 2022 1,695,499 $ 17.53 Granted - $ - Exercised (309,191 ) $ 6.59 Forfeited/ Cancelled (92,712 ) $ 18.70 Expired (3,000 ) $ 9.85 Outstanding at September 30, 2022 1,290,596 $ 20.08 |
Restricted Stock Units Activity | The following is a summary of non-vested RSUs: Number of Shares Weighted Average Grant Date Fair Value Outstanding at March 31, 2022 399,063 $ 19.98 Granted 276,353 $ 13.14 Vested (174,781 ) $ 20.51 Forfeited/Cancelled (51,652 ) $ 20.18 Outstanding at September 30, 2022 448,983 $ 15.54 |
Monte Carlo Valuation Model Assumptions used in Determining Fair Value of TSR Awards | The following table summarizes the assumptions used in determining the fair value of the TSR awards: Six Months Ended September 30, 2022 2021 Risk free interest rate 3.35 % 0.47 % Expected life in years 3 3 Expected volatility of MPA common stock 51.30 % 53.70 % Expected average volatility of peer companies 62.70 % 59.30 % Average correlation coefficient of peer companies 27.50 % 26.70 Expected dividend yield - - Grant date fair value $ 16.02 $ 26.89 |
Performance Stock Units Activity | The following is a summary of non-vested PSUs: Number of Shares Weighted Average Grant Date Fair Value Outstanding at March 31, 2022 84,593 $ 23.19 Granted 126,028 $ 14.00 Vested - $ - Forfeited (4,808 ) $ 23.19 Outstanding at September 30, 2022 205,813 $ 17.57 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies [Abstract] | |
Changes in Warranty Return Accrual | The following summarizes the changes in the warranty return accrual: Three Months Ended September 30, Six Months Ended September 30, 2022 2021 2022 2021 Balance at beginning of period $ 17,868,000 $ 20,010,000 $ 20,125,000 $ 21,093,000 Charged to expense 33,895,000 30,837,000 64,815,000 58,098,000 Amounts processed (33,302,000 ) (29,972,000 ) (66,479,000 ) (58,316,000 ) Balance at end of period $ 18,461,000 $ 20,875,000 $ 18,461,000 $ 20,875,000 |
Company Background and Organi_2
Company Background and Organization (Details) | 6 Months Ended |
Sep. 30, 2022 Segment | |
Company Background and Organization [Abstract] | |
Number of operating segments | 3 |
Accounts Receivable - Net (Deta
Accounts Receivable - Net (Details) - USD ($) | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2022 | |
Components of accounts receivable [Abstract] | |||
Accounts receivable - trade | $ 101,989,000 | $ 98,734,000 | |
Allowance for credit losses | (242,000) | (375,000) | |
Customer payment discrepancies | (1,604,000) | (1,375,000) | |
Customer returns RGA issued | (20,282,000) | (11,909,000) | |
Total accounts receivable - net | 79,861,000 | $ 85,075,000 | |
Allowance for credit losses [Roll Forward] | |||
Balance at beginning of period | 375,000 | $ 348,000 | |
Provision for expected credit losses | 11,000 | 17,000 | |
Recoveries | 0 | 0 | |
Amounts written off charged against the allowance | (144,000) | (39,000) | |
Balance at end of period | $ 242,000 | $ 326,000 |
Inventory (Details)
Inventory (Details) - USD ($) | Sep. 30, 2022 | Mar. 31, 2022 |
Inventory [Abstract] | ||
Raw materials | $ 148,948,000 | $ 150,414,000 |
Work-in-process | 7,035,000 | 6,880,000 |
Finished goods | 243,223,000 | 226,729,000 |
Inventory, gross | 399,206,000 | 384,023,000 |
Less allowance for excess and obsolete inventory | (13,577,000) | (13,520,000) |
Inventory - net | 385,629,000 | 370,503,000 |
Inventory unreturned | 15,573,000 | 15,001,000 |
Total inventory | $ 401,202,000 | $ 385,504,000 |
Contract Assets (Details)
Contract Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2022 | |
Contract Assets [Abstract] | |||||
Long-term contract assets, write-down | $ 1,269,000 | $ 1,687,000 | $ 1,841,000 | $ 2,671,000 | |
Short-term contract assets [Abstract] | |||||
Cores expected to be returned by customers | 22,264,000 | 22,264,000 | $ 15,778,000 | ||
Core premiums paid to customers | 10,062,000 | 10,062,000 | 10,621,000 | ||
Upfront payments to customers | 958,000 | 958,000 | 517,000 | ||
Finished goods premiums paid to customers | 577,000 | 577,000 | 584,000 | ||
Total short-term contract assets | 33,861,000 | 33,861,000 | 27,500,000 | ||
Long-term contract assets [Abstract] | |||||
Remanufactured cores held at customers' locations | 262,342,000 | 262,342,000 | 258,376,000 | ||
Core premiums paid to customers | 42,495,000 | 42,495,000 | 43,294,000 | ||
Long-term core inventory deposits | 5,569,000 | 5,569,000 | 5,569,000 | ||
Finished goods premiums paid to customers | 2,714,000 | 2,714,000 | 2,806,000 | ||
Upfront payments to customers | 68,000 | 68,000 | 210,000 | ||
Total long-term contract assets | $ 313,188,000 | $ 313,188,000 | $ 310,255,000 |
Significant Customer and Othe_3
Significant Customer and Other Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2022 | |
Net Sales [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 39% | 40% | 38% | 37% | |
Net Sales [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 20% | 17% | 22% | 18% | |
Net Sales [Member] | Customer Concentration Risk [Member] | Customer C [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 26% | 30% | 23% | 30% | |
Net Sales [Member] | Customer Concentration Risk [Member] | Customer D [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 4% | 2% | 4% | 2% | |
Net Sales [Member] | Product Concentration Risk [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 100% | 100% | 100% | 100% | |
Net Sales [Member] | Product Concentration Risk [Member] | Rotating Electrical Products [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 67% | 73% | 67% | 71% | |
Net Sales [Member] | Product Concentration Risk [Member] | Wheel Hub Products [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 11% | 11% | 11% | 12% | |
Net Sales [Member] | Product Concentration Risk [Member] | Brake-Related Products [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 20% | 14% | 19% | 15% | |
Net Sales [Member] | Product Concentration Risk [Member] | Other Products [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 2% | 2% | 3% | 2% | |
Accounts Receivable - Trade [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 43% | 42% | |||
Accounts Receivable - Trade [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 20% | 21% | |||
Accounts Receivable - Trade [Member] | Customer Concentration Risk [Member] | Customer C [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 2% | 9% | |||
Accounts Receivable - Trade [Member] | Customer Concentration Risk [Member] | Customer D [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 10% | 5% |
Debt (Details)
Debt (Details) - USD ($) | 6 Months Ended | |
Sep. 30, 2022 | Mar. 31, 2022 | |
Summarized information about the term loan [Abstract] | ||
Less current portion of Term Loans | $ (3,670,000) | $ (3,670,000) |
Long-term portion of Term Loans | $ 11,171,000 | $ 13,024,000 |
Revolving Facility [Member] | ||
Amended Credit Facility [Abstract] | ||
Interest rate at end of period | 5.62% | 3.13% |
Revolving Facility [Member] | Letters of Credit [Member] | ||
Future repayments of the Term Loan, by fiscal year [Abstract] | ||
Outstanding balance under revolving loan | $ 6,370,000 | |
Term Loans [Member] | ||
Amended Credit Facility [Abstract] | ||
Quarterly principal payments | $ 937,500 | |
Interest rate at end of period | 5.32% | 2.99% |
Summarized information about the term loan [Abstract] | ||
Principal amount of Term Loans | $ 15,000,000 | $ 16,875,000 |
Unamortized financing fees | (159,000) | (181,000) |
Net carrying amount of Term Loans | 14,841,000 | 16,694,000 |
Less current portion of Term Loans | (3,670,000) | (3,670,000) |
Long-term portion of Term Loans | 11,171,000 | 13,024,000 |
Future repayments of the Term Loan, by fiscal year [Abstract] | ||
2023 - remaining six months | 1,875,000 | |
2024 | 3,750,000 | |
2025 | 3,750,000 | |
2026 | 3,750,000 | |
2027 | 1,875,000 | |
Total payments | 15,000,000 | 16,875,000 |
Credit Facility [Member] | ||
Amended Credit Facility [Abstract] | ||
Maximum borrowing capacity | $ 268,620,000 | |
Debt instrument, maturity date | May 28, 2026 | |
Credit Facility [Member] | Minimum [Member] | ||
Amended Credit Facility [Abstract] | ||
Facility fee on total leverage ratio | 0.375% | |
Credit Facility [Member] | Maximum [Member] | ||
Amended Credit Facility [Abstract] | ||
Dividend payments and share repurchases, annual maximum amount permitted | $ 29,043,000 | |
Facility fee on total leverage ratio | 0.50% | |
Credit Facility [Member] | LIBOR [Member] | ||
Amended Credit Facility [Abstract] | ||
Reference interest rate under option 1, floor | 2.25% | |
Interest rate over LIBOR rate under option 1 | 2.50% | |
Interest rate above base rate under option 2 | 2.75% | |
Credit Facility [Member] | Reference Rate [Member] | ||
Amended Credit Facility [Abstract] | ||
Reference interest rate under option 1, floor | 1.25% | |
Interest rate over LIBOR rate under option 1 | 1.50% | |
Interest rate above base rate under option 2 | 1.75% | |
Credit Facility [Member] | Revolving Facility [Member] | ||
Amended Credit Facility [Abstract] | ||
Maximum borrowing capacity | $ 238,620,000 | |
Future repayments of the Term Loan, by fiscal year [Abstract] | ||
Outstanding balance under revolving loan | 163,000,000 | $ 155,000,000 |
Amount available under revolving facility | 69,250,000 | |
Credit Facility [Member] | Revolving Facility [Member] | Canadian Borrowers [Member] | ||
Amended Credit Facility [Abstract] | ||
Maximum borrowing capacity | 24,000,000 | |
Credit Facility [Member] | Revolving Facility [Member] | Letters of Credit [Member] | ||
Amended Credit Facility [Abstract] | ||
Maximum borrowing capacity | 20,000,000 | |
Credit Facility [Member] | Term Loans [Member] | ||
Amended Credit Facility [Abstract] | ||
Maximum borrowing capacity | $ 30,000,000 |
Contract Liabilities (Details)
Contract Liabilities (Details) - USD ($) | Sep. 30, 2022 | Mar. 31, 2022 |
Short-term contract liabilities [Abstract] | ||
Customer core returns accruals | $ 20,984,000 | $ 12,322,000 |
Customer allowances earned | 18,923,000 | 22,018,000 |
Customer deposits | 3,876,000 | 3,306,000 |
Accrued core payment | 2,999,000 | 1,679,000 |
Finished goods liabilities | 1,771,000 | 1,537,000 |
Core bank liability | 1,660,000 | 1,634,000 |
Total short-term contract liabilities | 50,213,000 | 42,496,000 |
Long-term contract liabilities [Abstract] | ||
Customer core returns accruals | 155,040,000 | 154,940,000 |
Core bank liability | 14,432,000 | 15,267,000 |
Accrued core payment | 10,467,000 | 928,000 |
Finished goods liabilities | 1,206,000 | 1,588,000 |
Customer allowances earned | 0 | 41,000 |
Total long-term contract liabilities | $ 181,145,000 | $ 172,764,000 |
Leases, General Information (De
Leases, General Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
(Loss) gain in foreign currency-denominated lease liabilities | $ (1,041,000) | $ (1,746,000) | $ (1,021,000) | $ 1,049,000 |
Leases, Balance Sheet Informati
Leases, Balance Sheet Information (Details) - USD ($) | Sep. 30, 2022 | Mar. 31, 2022 |
Assets [Abstract] | ||
Operating, Operating lease assets | $ 77,965,000 | $ 81,997,000 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Operating, Operating lease assets | Operating, Operating lease assets |
Finance, Plant and equipment | $ 6,543,000 | $ 7,470,000 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Plant and equipment - net | Plant and equipment - net |
Total leased assets | $ 84,508,000 | $ 89,467,000 |
Current [Abstract] | ||
Operating, Operating lease liabilities | $ 6,752,000 | $ 6,788,000 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Operating, Operating lease liabilities | Operating, Operating lease liabilities |
Finance, Other current liabilities | $ 2,082,000 | $ 2,330,000 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Long-term [Abstract] | ||
Operating, Long-term operating lease liabilities | $ 78,359,000 | $ 80,803,000 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Operating, Long-term operating lease liabilities | Operating, Long-term operating lease liabilities |
Finance, Other liabilities | $ 2,967,000 | $ 3,425,000 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Total lease liabilities | $ 90,160,000 | $ 93,346,000 |
Leases, Cost Recognized in Cons
Leases, Cost Recognized in Consolidated Statements of Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lease cost [Abstract] | ||||
Operating lease cost | $ 3,130,000 | $ 3,149,000 | $ 6,295,000 | $ 6,191,000 |
Short-term lease cost | 559,000 | 375,000 | 1,013,000 | 751,000 |
Variable lease cost | 179,000 | 210,000 | 364,000 | 491,000 |
Finance lease cost [Abstract] | ||||
Amortization of finance lease assets | 489,000 | 565,000 | 1,028,000 | 1,064,000 |
Interest on finance lease liabilities | 64,000 | 89,000 | 132,000 | 186,000 |
Total lease cost | $ 4,421,000 | $ 4,388,000 | $ 8,832,000 | $ 8,683,000 |
Leases, Maturities of Lease Com
Leases, Maturities of Lease Commitments (Details) - USD ($) | Sep. 30, 2022 | Mar. 31, 2022 |
Operating Leases [Abstract] | ||
2023 - remaining six months | $ 5,925,000 | |
2024 | 10,488,000 | |
2025 | 10,389,000 | |
2026 | 10,356,000 | |
2027 | 10,494,000 | |
Thereafter | 64,621,000 | |
Total lease payments | 112,273,000 | |
Less amount representing interest | (27,162,000) | |
Present value of lease liabilities | 85,111,000 | |
Finance Leases [Abstract] | ||
2023 - remaining six months | 1,273,000 | |
2024 | 1,895,000 | |
2025 | 1,394,000 | |
2026 | 662,000 | |
2027 | 172,000 | |
Thereafter | 33,000 | |
Total lease payments | 5,429,000 | |
Less amount representing interest | (380,000) | |
Present value of lease liabilities | 5,049,000 | |
Total [Abstract] | ||
2023 - remaining six months | 7,198,000 | |
2024 | 12,383,000 | |
2025 | 11,783,000 | |
2026 | 11,018,000 | |
2027 | 10,666,000 | |
Thereafter | 64,654,000 | |
Total lease payments | 117,702,000 | |
Less amount representing interest | (27,542,000) | |
Present value of lease liabilities | $ 90,160,000 | $ 93,346,000 |
Leases, Other Information (Deta
Leases, Other Information (Details) | Sep. 30, 2022 | Mar. 31, 2022 |
Weighted-average remaining lease term (years) [Abstract] | ||
Finance leases | 2 years 9 months 18 days | 2 years 10 months 24 days |
Operating leases | 9 years 10 months 24 days | 10 years 4 months 24 days |
Weighted-average discount rate [Abstract] | ||
Finance leases | 5.40% | 5.10% |
Operating leases | 5.70% | 5.70% |
Accounts Receivable Discount _3
Accounts Receivable Discount Programs (Details) - USD ($) | 6 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Accounts Receivable Discount Programs [Abstract] | ||
Receivables discounted | $ 283,359,000 | $ 268,410,000 |
Weighted average number of days collection was accelerated | 327 days | 333 days |
Annualized weighted average discount rate | 4.40% | 1.80% |
Amount of discount recognized as interest expense | $ 11,293,000 | $ 4,432,000 |
Net (Loss) Income per Share (De
Net (Loss) Income per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reconciliation of basic and diluted net income per share [Abstract] | ||||||
Net (loss) income | $ (6,517,000) | $ (175,000) | $ 3,683,000 | $ 861,000 | $ (6,692,000) | $ 4,544,000 |
Basic shares (in shares) | 19,272,557 | 19,135,356 | 19,197,181 | 19,094,904 | ||
Effect of potentially dilutive securities (in shares) | 0 | 484,418 | 0 | 543,141 | ||
Diluted shares (in shares) | 19,272,557 | 19,619,774 | 19,197,181 | 19,638,045 | ||
Net (loss) income per share, Basic [Abstract] | ||||||
Basic net (loss) income per share (in dollars per share) | $ (0.34) | $ 0.19 | $ (0.35) | $ 0.24 | ||
Net (loss) income per share, Diluted [Abstract] | ||||||
Diluted net (loss) income per share (in dollars per share) | $ (0.34) | $ 0.19 | $ (0.35) | $ 0.23 | ||
Options [Member] | ||||||
Antidilutive Securities [Abstract] | ||||||
Antidilutive shares excluded from computation of earnings per share (in shares) | 1,945,392 | 915,778 | 1,945,392 | 707,660 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Taxes [Abstract] | ||||
Income tax (benefit) expense | $ (914,000) | $ 2,251,000 | $ (325,000) | $ 3,198,000 |
Effective income tax rate | 12.30% | 37.90% | 4.60% | 41.30% |
Financial Risk Management and_3
Financial Risk Management and Derivatives (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2022 | |
Foreign Currency Exchange Contracts [Abstract] | |||||
Forward foreign currency exchange contracts included in prepaid and other current assets | $ 374,000 | $ 374,000 | $ 1,113,000 | ||
Forward Foreign Currency Exchange Contracts [Member] | |||||
Foreign Currency Exchange Contracts [Abstract] | |||||
Notional amount of foreign currency derivatives | 46,785,000 | 46,785,000 | $ 44,968,000 | ||
Forward Foreign Currency Exchange Contracts [Member] | Foreign Exchange Impact of Lease Liabilities and Forward Contracts [Member] | |||||
Foreign Currency Exchange Contracts [Abstract] | |||||
Forward foreign currency exchange contracts | $ (41,000) | $ (2,171,000) | $ (739,000) | $ (2,433,000) | |
Forward Foreign Currency Exchange Contracts [Member] | Maximum [Member] | |||||
Foreign Currency Exchange Contracts [Abstract] | |||||
Derivative, term of contract | 1 year |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring [Member] - USD ($) | Sep. 30, 2022 | Mar. 31, 2022 |
Short-term investments [Abstract] | ||
Mutual funds | $ 1,989,000 | $ 2,202,000 |
Prepaid expense and other current assets [Abstract] | ||
Forward foreign currency exchange contracts | 374,000 | 1,113,000 |
Other current liabilities [Abstract] | ||
Deferred compensation | 1,989,000 | 2,202,000 |
Level 1 [Member] | ||
Short-term investments [Abstract] | ||
Mutual funds | 1,989,000 | 2,202,000 |
Prepaid expense and other current assets [Abstract] | ||
Forward foreign currency exchange contracts | 0 | 0 |
Other current liabilities [Abstract] | ||
Deferred compensation | 1,989,000 | 2,202,000 |
Level 2 [Member] | ||
Short-term investments [Abstract] | ||
Mutual funds | 0 | 0 |
Prepaid expense and other current assets [Abstract] | ||
Forward foreign currency exchange contracts | 374,000 | 1,113,000 |
Other current liabilities [Abstract] | ||
Deferred compensation | 0 | 0 |
Level 3 [Member] | ||
Short-term investments [Abstract] | ||
Mutual funds | 0 | 0 |
Prepaid expense and other current assets [Abstract] | ||
Forward foreign currency exchange contracts | 0 | 0 |
Other current liabilities [Abstract] | ||
Deferred compensation | $ 0 | $ 0 |
Share-based Payments - Stock Op
Share-based Payments - Stock Options Activity (Details) - Stock Options [Member] - USD ($) | 6 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Number of Shares [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 1,695,499 | |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | (309,191) | |
Forfeited/Cancelled (in shares) | (92,712) | |
Expired (in shares) | (3,000) | |
Outstanding at end of period (in shares) | 1,290,596 | |
Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at beginning of period (in dollars per share) | $ 17.53 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 6.59 | |
Forfeited/Cancelled (in dollars per share) | 18.7 | |
Expired (in dollars per share) | 9.85 | |
Outstanding at end of period (in dollars per share) | $ 20.08 | |
Number of stock options unvested (in shares) | 105,713 | |
Weighted average exercise price of stock options unvested (in dollars per share) | $ 15.17 | |
Total unrecognized compensation expense | $ 480,000 |
Share-based Payments - Restrict
Share-based Payments - Restricted Stock Units (Details) - USD ($) | 6 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Restricted Stock [Member] | ||
Number of Shares [Roll Forward] | ||
Non-vested at beginning of period (in shares) | 399,063 | |
Granted (in shares) | 276,353 | |
Vested (in shares) | (174,781) | |
Forfeited/Cancelled (in shares) | (51,652) | |
Non-vested at end of period (in shares) | 448,983 | |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Non-vested at beginning of period (in dollars per share) | $ 19.98 | |
Granted (in dollars per share) | 13.14 | |
Vested (in dollars per share) | 20.51 | |
Forfeited/Cancelled (in dollars per share) | 20.18 | |
Non-vested at end of period (in dollars per share) | $ 15.54 | |
Total unrecognized compensation expense | $ 4,463,000 | |
Weighted average remaining vesting period over which compensation expense is expected to be recognized | 2 years | |
Restricted Stock, Threshold Performance Level [Member] | ||
Number of Shares [Roll Forward] | ||
Granted (in shares) | 33,333 | 33,333 |
Restricted Stock, Target Performance Level [Member] | ||
Number of Shares [Roll Forward] | ||
Granted (in shares) | 66,667 | 66,667 |
Restricted Stock, Maximum Performance Level [Member] | ||
Number of Shares [Roll Forward] | ||
Granted (in shares) | 100,000 | 100,000 |
Restricted Stock, Time-based [Member] | ||
Number of Shares [Roll Forward] | ||
Granted (in shares) | 176,353 | 118,928 |
Share-based Payments - Performa
Share-based Payments - Performance Stock Units (Details) - Performance Stock Units [Member] - USD ($) | 6 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Performance Stock Units ("PSUs") [Abstract] | ||
Vesting period | 3 years | |
Monte Carlo valuation model assumptions used in determining the fair value of the TSR awards [Abstract] | ||
Risk free interest rate | 3.35% | 0.47% |
Expected life | 3 years | 3 years |
Expected volatility of MPA common stock | 51.30% | 53.70% |
Expected average volatility of peer companies | 62.70% | 59.30% |
Average correlation coefficient of peer companies | 27.50% | 26.70% |
Expected dividend yield | 0% | 0% |
Grant date fair value (in dollars per share) | $ 16.02 | $ 26.89 |
Number of Shares [Roll Forward] | ||
Non-vested at beginning of period (in shares) | 84,593 | |
Granted (in shares) | 126,028 | 84,593 |
Vested (in shares) | 0 | |
Forfeited (in shares) | (4,808) | |
Non-vested at end of period (in shares) | 205,813 | |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Non-vested at beginning of period (in dollars per share) | $ 23.19 | |
Granted (in dollars per share) | 14 | |
Vested (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 23.19 | |
Non-vested at end of period (in dollars per share) | $ 17.57 | |
Total unrecognized compensation expense | $ 2,656,000 | |
Weighted average remaining vesting period over which compensation expense is expected to be recognized | 2 years 3 months 18 days | |
Minimum [Member] | ||
Performance Stock Units ("PSUs") [Abstract] | ||
Awards vesting target percentage | 0% | |
Maximum [Member] | ||
Performance Stock Units ("PSUs") [Abstract] | ||
Awards vesting target percentage | 150% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2019 | |
Change in warranty return accrual [Roll Forward] | |||||
Balance at beginning of period | $ 17,868,000 | $ 20,010,000 | $ 20,125,000 | $ 21,093,000 | |
Charged to expense | 33,895,000 | 30,837,000 | 64,815,000 | 58,098,000 | |
Amounts processed | (33,302,000) | (29,972,000) | (66,479,000) | (58,316,000) | |
Balance at end of period | $ 18,461,000 | $ 20,875,000 | $ 18,461,000 | $ 20,875,000 | |
Contingencies [Abstract] | |||||
Estimated additional import duties | $ 17,000,000 |
Share Repurchases (Details)
Share Repurchases (Details) - Common Stock [Member] - USD ($) | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Aug. 31, 2018 | |
Stock Repurchase Program [Abstract] | |||
Stock repurchase program, approved amount | $ 37,000,000 | $ 37,000,000 | $ 20,000,000 |
Repurchase of shares (in shares) | 0 | 0 | |
Shares utilized, amount | $ 18,745,000 | ||
Shares available for repurchase, amount | $ 18,255,000 | $ 18,255,000 | |
Shares repurchased and retired (in shares) | 837,007 |