Motorcar Parts Of America Inc 8-K, filed Jun 11, 2024

Motorcar Parts Of America Inc (MPAA)

8-K 2024-06-11 For: 2024-06-11

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Added on April 05, 2026

About this 8-K

Motorcar Parts Of America Inc filed this 8-K on June 11, 2024.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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New York		001-33861		11-2153962
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

2929 California Street, Torrance, CA		90503
(Address of principal executive offices)		(Zip Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	MPAA	The Nasdaq Global Select Market

	Exhibit No.	Description

	99.1	Press Release, dated June 11, 2024

	104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

	MOTORCAR PARTS OF AMERICA, INC.

Date: June 11, 2024	/s/ David Lee
	David Lee
	Chief Financial Officer

	Three Months Ended March 31,						Year Ended March 31,
	2024			2023			2024			2023
	(Unaudited)

Net sales	$	189,478,000		$	194,727,000		$	717,684,000		$	683,074,000
Cost of goods sold		154,685,000			158,576,000			585,133,000			569,112,000
Gross profit		34,793,000			36,151,000			132,551,000			113,962,000
Operating expenses:
General and administrative		15,644,000			12,677,000			57,769,000			54,756,000
Sales and marketing		5,443,000			4,487,000			22,481,000			21,729,000
Research and development		2,643,000			1,992,000			9,995,000			10,322,000
Foreign exchange impact of lease liabilities and forward contracts		(1,155,000	)		(6,738,000	)		(3,814,000	)		(9,291,000	)
Total operating expenses		22,575,000			12,418,000			86,431,000			77,516,000
Operating income		12,218,000			23,733,000			46,120,000			36,446,000
Other expenses:
Interest expense, net		14,640,000			11,880,000			60,040,000			39,555,000
Change in fair value of compound net derivative liability		(2,710,000	)		-			(1,020,000	)		-
Loss on extinguishment of debt		-			-			168,000			-
Total other expenses		11,930,000			11,880,000			59,188,000			39,555,000
Income (loss) before income tax (benefit) expense		288,000			11,853,000			(13,068,000	)		(3,109,000	)
Income tax (benefit) expense		(1,050,000	)		10,394,000			36,176,000			1,098,000

Net income (loss)	$	1,338,000		$	1,459,000		$	(49,244,000	)	$	(4,207,000	)

Basic net income (loss) per share	$	0.07		$	0.07		$	(2.51	)	$	(0.22	)

Diluted net income (loss) per share	$	(0.03	)	$	0.07		$	(2.51	)	$	(0.22	)

Weighted average number of shares outstanding:

Basic		19,662,380			19,492,962			19,601,204			19,340,246

Diluted		22,085,292			19,603,394			19,601,204			19,340,246

	March 31, 2024		March 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	13,974,000	$	11,596,000
Short-term investments		1,837,000		2,011,000
Accounts receivable — net		96,296,000		119,868,000
Inventory — net		377,040,000		339,675,000
Inventory unreturned		20,288,000		16,579,000
Contract assets		27,139,000		25,443,000
Income tax receivable		5,683,000		2,156,000
Prepaid expenses and other current assets		18,202,000		20,150,000
Total current assets		560,459,000		537,478,000
Plant and equipment — net		38,338,000		46,052,000
Operating lease assets		83,973,000		87,619,000
Deferred income taxes		2,976,000		32,625,000
Long-term contract assets		320,282,000		318,381,000
Goodwill		3,205,000		3,205,000
Intangible assets — net		1,069,000		2,143,000
Other assets		1,700,000		1,062,000
TOTAL ASSETS	$	1,012,002,000	$	1,028,565,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	154,977,000	$	119,437,000
Accrued liabilities		30,205,000		22,329,000
Customer finished goods returns accrual		38,312,000		37,984,000
Contract liabilities		37,591,000		40,340,000
Revolving loan		128,000,000		145,200,000
Other current liabilities		7,021,000		4,871,000
Operating lease liabilities		8,319,000		8,767,000
Current portion of term loan		-		3,664,000
Total current liabilities		404,425,000		382,592,000
Term loan, less current portion		-		9,279,000
Convertible notes, related party		30,776,000		30,994,000
Contract liabilities, less current portion		212,068,000		193,606,000
Deferred income taxes		511,000		718,000
Operating lease liabilities, less current portion		72,240,000		79,318,000
Other liabilities		6,872,000		11,583,000
Total liabilities		726,892,000		708,090,000
Commitments and contingencies
Shareholders' equity:
Preferred stock; par value $.01 per share, 5,000,000 shares authorized; none issued		-		-
Series A junior participating preferred stock; par value $.01 per share, 20,000 shares authorized; none issued		-		-
Common stock; par value $.01 per share, 50,000,000 shares authorized; 19,662,380 and 19,494,615 shares issued and outstanding at March 31, 2024 and 2023, respectively		197,000		195,000
Additional paid-in capital		236,255,000		231,836,000
Retained earnings		39,503,000		88,747,000
Accumulated other comprehensive income (loss)		9,155,000		(303,000	)
Total shareholders' equity		285,110,000		320,475,000
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,012,002,000	$	1,028,565,000

	Twelve Months Ended March 31,
	2024						2023
	$			Per Share			$			Per Share
GAAP net loss	$	(49,244,000	)	$	(2.51	)	$	(4,207,000	)	$	(0.22	)

Non-cash items impacting net loss
Core and finished goods premium amortization	$	10,963,000		$	0.56		$	11,791,000		$	0.61
Revaluation - cores on customers' shelves		5,353,000			0.27			3,736,000			0.19
Share-based compensation expenses		4,700,000			0.24			4,685,000			0.24
Foreign exchange impact of lease liabilities and forward contracts		(3,814,000	)		(0.19	)		(9,291,000	)		(0.48	)
Change in fair value of compound net derivative liability and loss on extinguishment of debt		(852,000	)		(0.04	)		-			-
Tax effect (a)		(4,088,000	)		(0.21	)		(2,730,000	)		(0.14	)
Tax valuation allowance		38,009,000			1.94			-			-
Total non-cash items impacting net loss	$	50,271,000		$	2.56		$	8,191,000		$	0.42

Cash items impacting net loss
Supply chain disruptions and related costs (b)	$	7,472,000		$	0.38		$	12,914,000		$	0.67
New product line start-up costs and transition expenses, and severance (c)		1,820,000			0.09			3,565,000			0.18
Employee retention credit (d)		-			-			(5,104,000	)		(0.26	)
Tax effect (a)		(2,323,000	)		(0.12	)		(2,844,000	)		(0.15	)
Total cash items impacting net loss	$	6,969,000		$	0.36		$	8,531,000		$	0.44