Motorcar Parts Of America Inc 8-K, filed Nov 12, 2024

Motorcar Parts Of America Inc (MPAA)

8-K 2024-11-12 For: 2024-11-07

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Added on April 05, 2026

About this 8-K

Motorcar Parts Of America Inc filed this 8-K on November 12, 2024, reporting on events of November 7, 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	NASDAQ

	Exhibit No.	Description

	99.1	Press Release, dated November 12, 2024

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

	MOTORCAR PARTS OF AMERICA, INC.

Date: November 12, 2024	/s/ David Lee
	David Lee
	Chief Financial Officer

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2024			2023			2024			2023

Net sales	$	208,186,000		$	196,639,000		$	378,073,000		$	356,344,000
Cost of goods sold		166,909,000			155,491,000			307,622,000			288,629,000
Gross profit		41,277,000			41,148,000			70,451,000			67,715,000
Operating expenses:
General and administrative		15,052,000			14,325,000			31,722,000			26,927,000
Sales and marketing		5,834,000			5,688,000			11,283,000			11,107,000
Research and development		2,443,000			2,438,000			4,876,000			4,813,000
Foreign exchange impact of lease liabilities and forward contracts		5,428,000			4,760,000			16,506,000			490,000
Total operating expenses		28,757,000			27,211,000			64,387,000			43,337,000
Operating income		12,520,000			13,937,000			6,064,000			24,378,000
Other expenses:
Interest expense, net		14,182,000			15,383,000			28,569,000			27,103,000
Change in fair value of compound net derivative liability		380,000			390,000			(2,200,000	)		530,000
Loss on extinguishment of debt		-			168,000			-			168,000
Total other expenses		14,562,000			15,941,000			26,369,000			27,801,000
Loss before income tax expense (benefit)		(2,042,000	)		(2,004,000	)		(20,305,000	)		(3,423,000	)
Income tax expense (benefit)		912,000			(46,000	)		734,000			(55,000	)
Net loss	$	(2,954,000	)	$	(1,958,000	)	$	(21,039,000	)	$	(3,368,000	)
Basic net loss per share	$	(0.15	)	$	(0.10	)	$	(1.07	)	$	(0.17	)
Diluted net loss per share	$	(0.15	)	$	(0.10	)	$	(1.07	)	$	(0.17	)
Weighted average number of shares outstanding:
Basic		19,760,028			19,599,162			19,717,517			19,554,142
Diluted		19,760,028			19,599,162			19,717,517			19,554,142

		September 30, 2024	March 31, 2024
ASSETS	(Unaudited)
Current assets:
Cash and cash equivalents	$	10,413,000	$	13,974,000
Short-term investments		1,901,000		1,837,000
Accounts receivable — net		112,699,000		96,296,000
Inventory — net		378,776,000		397,328,000
Contract assets		24,956,000		27,139,000
Prepaid expenses and other current assets		19,457,000		23,885,000
Total current assets		548,202,000		560,459,000
Plant and equipment — net		32,561,000		38,338,000
Operating lease assets		71,792,000		83,973,000
Long-term deferred income taxes		5,637,000		2,976,000
Long-term contract assets		321,303,000		320,282,000
Goodwill and intangible assets — net		3,984,000		4,274,000
Other assets		2,763,000		1,700,000
TOTAL ASSETS	$	986,242,000	$	1,012,002,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	168,548,000	$	185,182,000
Customer finished goods returns accrual		37,495,000		38,312,000
Contract liabilities		45,517,000		37,591,000
Revolving loan		124,691,000		128,000,000
Other current liabilities		8,419,000		7,021,000
Operating lease liabilities		9,272,000		8,319,000
Total current liabilities		393,942,000		404,425,000
Convertible notes, related party		32,340,000		30,776,000
Long-term contract liabilities		219,891,000		212,068,000
Long-term deferred income taxes		573,000		511,000
Long-term operating lease liabilities		69,419,000		72,240,000
Other liabilities		6,114,000		6,872,000
Total liabilities		722,279,000		726,892,000
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; 19,776,373 and 19,662,380 shares issued and outstanding at September 30, 2024 and March 31, 2024, respectively		198,000		197,000
Additional paid-in capital		238,089,000		236,255,000
Retained earnings		18,464,000		39,503,000
Accumulated other comprehensive income		7,212,000		9,155,000
Total shareholders' equity		263,963,000		285,110,000
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	986,242,000	$	1,012,002,000

	Three Months Ended September 30,
	2024						2023
		$		Per Share				$		Per Share
GAAP net loss	$	(2,954,000	)	$	(0.15	)	$	(1,958,000	)	$	(0.10	)

Non-cash items impacting net income
Core and finished goods premium amortization	$	2,621,000		$	0.13		$	2,707,000		$	0.14
Revaluation - cores on customers' shelves		1,164,000			0.06			1,995,000			0.10
Share-based compensation expenses		1,016,000			0.05			1,533,000			0.08
Foreign exchange impact of lease liabilities and forward contracts		5,428,000			0.27			4,760,000			0.24
Change in fair value of compound net derivative liability and loss on extinguishment of debt		380,000			0.02			558,000			0.03
Tax effect (a)		(2,652,000	)		(0.13	)		(2,888,000	)		(0.15	)
Total non-cash items impacting net income	$	7,957,000		$	0.40		$	8,665,000		$	0.44

Cash items impacting net income
Supply chain disruptions and related costs (b)	$	-		$	-		$	3,199,000		$	0.16
New product line start-up costs and transition expenses, and severance and other (c)		1,498,000			0.08			349,000			0.02
Tax effect (a)		(375,000	)		(0.02	)		(887,000	)		(0.05	)
Total cash items impacting net income	$	1,123,000		$	0.06		$	2,661,000		$	0.14

	Six Months Ended September 30,
	2024						2023
		$		Per Share				$		Per Share
GAAP net loss	$	(21,039,000	)	$	(1.07	)	$	(3,368,000	)	$	(0.17	)

Non-cash items impacting net income
Core and finished goods premium amortization	$	5,349,000		$	0.27		$	5,364,000		$	0.27
Revaluation - cores on customers' shelves		1,558,000			0.08			2,773,000			0.14
Share-based compensation expenses		2,016,000			0.10			2,843,000			0.15
Foreign exchange impact of lease liabilities and forward contracts		16,506,000			0.84			490,000			0.03
Change in fair value of compound net derivative liability and loss on extinguishment of debt		(2,200,000	)		(0.11	)		698,000			0.04
Tax effect (a)		(5,807,000	)		(0.29	)		(3,042,000	)		(0.16	)
Total non-cash items impacting net income	$	17,422,000		$	0.88		$	9,126,000		$	0.47

Cash items impacting net income
Supply chain disruptions and related costs (b)	$	-		$	-		$	5,183,000		$	0.27
New product line start-up costs and transition expenses, and severance and other (c)		4,438,000			0.23			684,000			0.03
Tax effect (a)		(1,110,000	)		(0.06	)		(1,467,000	)		(0.08	)
Total cash items impacting net income	$	3,328,000		$	0.17		$	4,400,000		$	0.23