☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
New York | 11-2153962 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
2929 California Street, Torrance, California | 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 |
Large accelerated filer ☐ | Accelerated filer ☑ |
Non-accelerated filer ☐ | Smaller reporting company ☐ |
Emerging growth company ☐ |
PART I — FINANCIAL INFORMATION | ||
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PART II — OTHER INFORMATION | ||
Item 1. | Financial Statements |
June 30, 2021 | March 31, 2021 | December 31, 2021 | March 31, 2021 | |||||||||||||
ASSETS | (Unaudited) | (Unaudited) | ||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 24,883,000 | $ | 15,523,000 | $ | 7,769,000 | $ | 15,523,000 | ||||||||
Short-term investments | 1,823,000 | 1,652,000 | 2,212,000 | 1,652,000 | ||||||||||||
Accounts receivable — net | 54,019,000 | 63,122,000 | 57,691,000 | 63,122,000 | ||||||||||||
Inventory | 320,685,000 | 302,913,000 | 358,738,000 | 302,913,000 | ||||||||||||
Contract assets | 26,264,000 | 26,940,000 | 26,609,000 | 26,940,000 | ||||||||||||
Prepaid expenses and other current assets | 13,307,000 | 12,706,000 | 11,743,000 | 12,706,000 | ||||||||||||
Total current assets | 440,981,000 | 422,856,000 | 464,762,000 | 422,856,000 | ||||||||||||
Plant and equipment — net | 53,287,000 | 53,854,000 | 50,636,000 | 53,854,000 | ||||||||||||
Operating lease assets | 87,924,000 | 71,513,000 | 82,029,000 | 71,513,000 | ||||||||||||
Long-term deferred income taxes | 19,150,000 | 19,381,000 | 20,255,000 | 19,381,000 | ||||||||||||
Long-term contract assets | 293,158,000 | 270,213,000 | 311,756,000 | 270,213,000 | ||||||||||||
Goodwill and intangible assets — net | 8,194,000 | 8,534,000 | 7,341,000 | 8,534,000 | ||||||||||||
Other assets | 1,246,000 | 1,531,000 | 1,501,000 | 1,531,000 | ||||||||||||
TOTAL ASSETS | $ | 903,940,000 | $ | 847,882,000 | $ | 938,280,000 | $ | 847,882,000 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable and accrued liabilities | $ | 141,451,000 | $ | 152,735,000 | $ | 149,314,000 | $ | 152,735,000 | ||||||||
Customer finished goods returns accrual | 35,261,000 | 31,524,000 | 37,333,000 | 31,524,000 | ||||||||||||
Contract liabilities | 40,988,000 | 41,072,000 | 40,190,000 | 41,072,000 | ||||||||||||
Revolving loan | 103,000,000 | 84,000,000 | 113,000,000 | 84,000,000 | ||||||||||||
Other current liabilities | 5,774,000 | 6,683,000 | 6,708,000 | 6,683,000 | ||||||||||||
Operating lease liabilities | 5,434,000 | 6,439,000 | 6,444,000 | 6,439,000 | ||||||||||||
Current portion of term loan | 3,670,000 | 3,678,000 | 3,670,000 | 3,678,000 | ||||||||||||
Total current liabilities | 335,578,000 | 326,131,000 | 356,659,000 | 326,131,000 | ||||||||||||
Term loan, less current portion | 15,804,000 | 16,786,000 | 13,951,000 | 16,786,000 | ||||||||||||
Long-term contract liabilities | 153,504,000 | 125,223,000 | 165,599,000 | 125,223,000 | ||||||||||||
Long-term deferred income taxes | 76,000 | 73,000 | 75,000 | 73,000 | ||||||||||||
Long-term operating lease liabilities | 85,889,000 | 70,551,000 | 82,287,000 | 70,551,000 | ||||||||||||
Other liabilities | 7,862,000 | 7,973,000 | 6,589,000 | 7,973,000 | ||||||||||||
Total liabilities | 598,713,000 | 546,737,000 | 625,160,000 | 546,737,000 | ||||||||||||
Commitments and contingencies | 0 | 0 | 0 | 0 | ||||||||||||
Shareholders' equity: | ||||||||||||||||
Shareholders’ equity: | ||||||||||||||||
Preferred stock; par value $0.01 per share, 5,000,000 shares authorized; NaN issued | 0 | 0 | 0 | 0 | ||||||||||||
Series A junior participating preferred stock; par value $0.01 per share, 20,000 shares authorized; NaN issued | 0 | 0 | 0 | 0 | ||||||||||||
Common stock; par value $0.01 per share, 50,000,000 shares authorized; 19,101,092 and 19,045,386 shares issued and outstanding at June 30, 2021 and March 31, 2021, respectively | 191,000 | 190,000 | ||||||||||||||
Common stock; par value $0.01 per share, 50,000,000 shares authorized; 19,100,298 and 19,045,386 shares issued and outstanding at December 31, 2021 and March 31, 2021, respectively | 191,000 | 190,000 | ||||||||||||||
Additional paid-in capital | 224,445,000 | 223,058,000 | 225,319,000 | 223,058,000 | ||||||||||||
Retained earnings | 86,454,000 | 85,593,000 | 93,276,000 | 85,593,000 | ||||||||||||
Accumulated other comprehensive loss | (5,863,000 | ) | (7,696,000 | ) | (5,666,000 | ) | (7,696,000 | ) | ||||||||
Total shareholders' equity | 305,227,000 | 301,145,000 | ||||||||||||||
Total shareholders’ equity | 313,120,000 | 301,145,000 | ||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 903,940,000 | $ | 847,882,000 | $ | 938,280,000 | $ | 847,882,000 |
Three Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2020 | Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||
Net sales | $ | 149,034,000 | $ | 95,356,000 | $ | 161,810,000 | $ | 122,568,000 | $ | 486,392,000 | $ | 372,654,000 | ||||||||||||
Cost of goods sold | 125,463,000 | 81,969,000 | 129,235,000 | 98,327,000 | 394,295,000 | 295,300,000 | ||||||||||||||||||
Gross profit | 23,571,000 | 13,387,000 | 32,575,000 | 24,241,000 | 92,097,000 | 77,354,000 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
General and administrative | 12,486,000 | 11,687,000 | 14,605,000 | 14,005,000 | 41,556,000 | 38,210,000 | ||||||||||||||||||
Sales and marketing | 5,368,000 | 4,200,000 | 6,274,000 | 4,698,000 | 17,162,000 | 13,224,000 | ||||||||||||||||||
Research and development | 2,501,000 | 1,942,000 | 2,635,000 | 2,100,000 | 7,631,000 | 6,014,000 | ||||||||||||||||||
Foreign exchange impact of lease liabilities and forward contracts | (2,533,000 | ) | (4,817,000 | ) | 385,000 | (12,455,000 | ) | 1,769,000 | (21,257,000 | ) | ||||||||||||||
Total operating expenses | 17,822,000 | 13,012,000 | 23,899,000 | 8,348,000 | 68,118,000 | 36,191,000 | ||||||||||||||||||
Operating income | 5,749,000 | 375,000 | 8,676,000 | 15,893,000 | 23,979,000 | 41,163,000 | ||||||||||||||||||
Interest expense, net | 3,941,000 | 4,409,000 | 3,949,000 | 4,051,000 | 11,510,000 | 12,074,000 | ||||||||||||||||||
Income (loss) before income tax expense (benefit) | 1,808,000 | (4,034,000 | ) | |||||||||||||||||||||
Income tax expense (benefit) | 947,000 | (1,022,000 | ) | |||||||||||||||||||||
Net income (loss) | $ | 861,000 | $ | (3,012,000 | ) | |||||||||||||||||||
Basic net income (loss) per share | $ | 0.05 | $ | (0.16 | ) | |||||||||||||||||||
Diluted net income (loss) per share | $ | 0.04 | $ | (0.16 | ) | |||||||||||||||||||
Income before income tax expense | 4,727,000 | 11,842,000 | 12,469,000 | 29,089,000 | ||||||||||||||||||||
Income tax expense | 1,588,000 | 3,373,000 | 4,786,000 | 8,448,000 | ||||||||||||||||||||
Net income | $ | 3,139,000 | $ | 8,469,000 | $ | 7,683,000 | $ | 20,641,000 | ||||||||||||||||
Basic net income per share | $ | 0.16 | $ | 0.44 | $ | 0.40 | $ | 1.09 | ||||||||||||||||
Diluted net income per share | $ | 0.16 | $ | 0.44 | $ | 0.39 | $ | 1.07 | ||||||||||||||||
Weighted average number of shares outstanding: | ||||||||||||||||||||||||
Basic | 19,054,481 | 18,976,178 | 19,184,339 | 19,053,232 | 19,124,824 | 19,016,302 | ||||||||||||||||||
Diluted | 19,659,057 | 18,976,178 | 19,544,174 | 19,436,793 | 19,604,780 | 19,333,758 |
Three Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Net income (loss) | $ | 861,000 | $ | (3,012,000 | ) | |||
Other comprehensive income (loss), net of tax: | ||||||||
Foreign currency translation gain (loss) | 1,833,000 | (1,263,000 | ) | |||||
Total other comprehensive income (loss), net of tax | 1,833,000 | (1,263,000 | ) | |||||
Comprehensive income (loss) | $ | 2,694,000 | $ | (4,275,000 | ) |
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net income | $ | 3,139,000 | $ | 8,469,000 | $ | 7,683,000 | $ | 20,641,000 | ||||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||
Foreign currency translation (loss) gain | (414,000 | ) | 1,614,000 | 2,030,000 | (90,000 | ) | ||||||||||
Total other comprehensive (loss) income, net of tax | (414,000 | ) | 1,614,000 | 2,030,000 | (90,000 | ) | ||||||||||
Comprehensive income | $ | 2,725,000 | $ | 10,083,000 | $ | 9,713,000 | $ | 20,551,000 |
Common Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | Shares | Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 19,045,386 | $ | 190,000 | $ | 223,058,000 | $ | 85,593,000 | $ | (7,696,000 | ) | $ | 301,145,000 | 19,045,386 | $ | 190,000 | $ | 223,058,000 | $ | 85,593,000 | $ | (7,696,000 | ) | $ | 301,145,000 | ||||||||||||||||||||||||
Compensation recognized under employee stock plans | - | 0 | 1,576,000 | 0 | 0 | 1,576,000 | - | 0 | 1,576,000 | 0 | 0 | 1,576,000 | ||||||||||||||||||||||||||||||||||||
Exercise of stock options, net of shares withheld for employee taxes | 19,837 | 0 | 354,000 | 0 | 0 | 354,000 | 19,837 | 0 | 354,000 | 0 | 0 | 354,000 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes | 35,869 | 1,000 | (543,000 | ) | 0 | 0 | (542,000 | ) | 35,869 | 1,000 | (543,000 | ) | 0 | 0 | (542,000 | ) | ||||||||||||||||||||||||||||||||
Foreign currency translation | - | 0 | 0 | 0 | 1,833,000 | 1,833,000 | - | 0 | 0 | 0 | 1,833,000 | 1,833,000 | ||||||||||||||||||||||||||||||||||||
Net income | - | 0 | 0 | 861,000 | 0 | 861,000 | - | 0 | 0 | 861,000 | 0 | 861,000 | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 19,101,092 | $ | 191,000 | $ | 224,445,000 | $ | 86,454,000 | $ | (5,863,000 | ) | $ | 305,227,000 | 19,101,092 | $ | 191,000 | $ | 224,445,000 | $ | 86,454,000 | $ | (5,863,000 | ) | $ | 305,227,000 | ||||||||||||||||||||||||
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 | 7,860 | 0 | 78,000 | 0 | 0 | 78,000 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes | 63,803 | 1,000 | (1,204,000 | ) | 0 | 0 | (1,203,000 | ) | ||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | - | 0 | 0 | 0 | 611,000 | 611,000 | ||||||||||||||||||||||||||||||||||||||||||
Net income | - | 0 | 0 | 3,683,000 | 0 | 3,683,000 | ||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 19,172,755 | $ | 192,000 | $ | 225,170,000 | $ | 90,137,000 | $ | (5,252,000 | ) | $ | 310,247,000 | ||||||||||||||||||||||||||||||||||||
Compensation recognized under employee stock plans | - | 0 | 2,030,000 | 0 | 0 | 2,030,000 | ||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options, net of shares withheld for employee taxes | 1,846 | 0 | 32,000 | 0 | 0 | 32,000 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes | 32,183 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Repurchase and cancellation of treasury stock, including fees | (106,486 | ) | (1,000 | ) | (1,913,000 | ) | 0 | 0 | (1,914,000 | ) | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation | - | 0 | 0 | 0 | (414,000 | ) | (414,000 | ) | ||||||||||||||||||||||||||||||||||||||||
Net income | - | 0 | 0 | 3,139,000 | 0 | 3,139,000 | ||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 19,100,298 | $ | 191,000 | $ | 225,319,000 | $ | 93,276,000 | $ | (5,666,000 | ) | $ | 313,120,000 |
Common Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income Loss | Total | Shares | Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||||||||||||||||
Balance at March 31,2020 | 18,969,380 | $ | 190,000 | $ | 218,581,000 | $ | 64,117,000 | $ | (7,368,000 | ) | $ | 275,520,000 | 18,969,380 | $ | 190,000 | $ | 218,581,000 | $ | 64,117,000 | $ | (7,368,000 | ) | $ | 275,520,000 | ||||||||||||||||||||||||
Compensation recognized under employee stock plans | - | 0 | 1,043,000 | 0 | 0 | 1,043,000 | - | 0 | 1,043,000 | 0 | 0 | 1,043,000 | ||||||||||||||||||||||||||||||||||||
Exercise of stock options | 3,000 | 0 | 20,000 | 0 | 0 | 20,000 | 3,000 | 0 | 20,000 | 0 | 0 | 20,000 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes | 29,953 | 0 | (207,000 | ) | 0 | 0 | (207,000 | ) | 29,953 | 0 | (207,000 | ) | 0 | 0 | (207,000 | ) | ||||||||||||||||||||||||||||||||
Foreign currency translation | - | 0 | 0 | 0 | (1,263,000 | ) | (1,263,000 | ) | - | 0 | 0 | 0 | (1,263,000 | ) | (1,263,000 | ) | ||||||||||||||||||||||||||||||||
Net loss | - | 0 | 0 | (3,012,000 | ) | 0 | (3,012,000 | ) | - | 0 | 0 | (3,012,000 | ) | 0 | (3,012,000 | ) | ||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 19,002,333 | $ | 190,000 | $ | 219,437,000 | $ | 61,105,000 | $ | (8,631,000 | ) | $ | 272,101,000 | 19,002,333 | $ | 190,000 | $ | 219,437,000 | $ | 61,105,000 | $ | (8,631,000 | ) | $ | 272,101,000 | ||||||||||||||||||||||||
Compensation recognized under employee stock plans | - | 0 | 1,218,000 | 0 | 0 | 1,218,000 | ||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 6,000 | 0 | 73,000 | 0 | 0 | 73,000 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes | 18,254 | 0 | (140,000 | ) | 0 | 0 | (140,000 | ) | ||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | - | 0 | 0 | 0 | (441,000 | ) | (441,000 | ) | ||||||||||||||||||||||||||||||||||||||||
Net income | - | 0 | 0 | 15,184,000 | 0 | 15,184,000 | ||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 19,026,587 | $ | 190,000 | $ | 220,588,000 | $ | 76,289,000 | $ | (9,072,000 | ) | $ | 287,995,000 | ||||||||||||||||||||||||||||||||||||
Compensation recognized under employee stock plans | - | 0 | 1,498,000 | 0 | 0 | 1,498,000 | ||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 5,794 | 0 | 112,000 | 0 | 0 | 112,000 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes | 23,911 | 1,000 | (5,000 | ) | 0 | 0 | (4,000 | ) | ||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | - | 0 | 0 | 0 | 1,614,000 | 1,614,000 | ||||||||||||||||||||||||||||||||||||||||||
Net income | - | 0 | 0 | 8,469,000 | 0 | 8,469,000 | ||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 19,056,292 | $ | 191,000 | $ | 222,193,000 | $ | 84,758,000 | $ | (7,458,000 | ) | $ | 299,684,000 |
Three Months Ended June 30, | Nine Months Ended December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) | $ | 861,000 | $ | (3,012,000 | ) | |||||||||||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||||||||||||||||
Net income | $ | 7,683,000 | $ | 20,641,000 | ||||||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 3,145,000 | 2,551,000 | 9,591,000 | 8,090,000 | ||||||||||||
Amortization of interest | 414,000 | 312,000 | 1,189,000 | 1,059,000 | ||||||||||||
Amortization of core premiums paid to customers | 2,531,000 | 1,223,000 | 8,497,000 | 4,269,000 | ||||||||||||
Amortization of finished goods premiums paid to customers | 146,000 | 0 | 516,000 | 0 | ||||||||||||
Noncash lease expense | 1,791,000 | 1,686,000 | 5,533,000 | 5,239,000 | ||||||||||||
Gain due to the change in the fair value of the contingent consideration | (60,000 | ) | (47,000 | ) | ||||||||||||
Loss (gain) due to the change in the fair value of the contingent consideration | 60,000 | (45,000 | ) | |||||||||||||
Foreign exchange impact of lease liabilities and forward contracts | (2,533,000 | ) | (4,817,000 | ) | 1,769,000 | (21,257,000 | ) | |||||||||
Gain on short-term investments | (5,000 | ) | (155,000 | ) | (245,000 | ) | (398,000 | ) | ||||||||
Net provision for inventory reserves | 3,141,000 | 2,074,000 | 9,293,000 | 8,937,000 | ||||||||||||
Net provision for customer payment discrepancies and credit losses | 229,000 | 30,000 | 1,690,000 | 242,000 | ||||||||||||
Deferred income taxes | 358,000 | 465,000 | (877,000 | ) | 2,866,000 | |||||||||||
Share-based compensation expense | 1,576,000 | 1,043,000 | 5,457,000 | 3,759,000 | ||||||||||||
Loss on disposal of plant and equipment | 33,000 | 0 | 33,000 | 9,000 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | 9,020,000 | 25,847,000 | 3,626,000 | 47,066,000 | ||||||||||||
Inventory | (20,625,000 | ) | (8,034,000 | ) | (65,303,000 | ) | (68,723,000 | ) | ||||||||
Prepaid expenses and other current assets | 281,000 | (2,898,000 | ) | 187,000 | 982,000 | |||||||||||
Other assets | 297,000 | 219,000 | 7,000 | 1,067,000 | ||||||||||||
Accounts payable and accrued liabilities | (10,183,000 | ) | 6,478,000 | (877,000 | ) | 46,198,000 | ||||||||||
Customer finished goods returns accrual | 3,698,000 | 1,621,000 | 5,807,000 | 8,844,000 | ||||||||||||
Contract assets, net | (24,857,000 | ) | (6,076,000 | ) | (50,225,000 | ) | (18,126,000 | ) | ||||||||
Contract liabilities, net | 27,880,000 | 4,620,000 | 38,828,000 | 28,492,000 | ||||||||||||
Operating lease liabilities | (1,259,000 | ) | (1,416,000 | ) | (4,219,000 | ) | (4,710,000 | ) | ||||||||
Other liabilities | (618,000 | ) | 674,000 | (194,000 | ) | (2,017,000 | ) | |||||||||
Net cash (used in) provided by operating activities | (4,739,000 | ) | 22,388,000 | (22,174,000 | ) | 72,484,000 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of plant and equipment | (1,922,000 | ) | (2,983,000 | ) | (5,111,000 | ) | (12,043,000 | ) | ||||||||
Proceeds from sale of plant and equipment | 0 | 7,000 | ||||||||||||||
Change in short-term investments | (167,000 | ) | (55,000 | ) | (315,000 | ) | (259,000 | ) | ||||||||
Net cash used in investing activities | (2,089,000 | ) | (3,038,000 | ) | (5,426,000 | ) | (12,295,000 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Borrowings under revolving loan | 32,000,000 | 0 | 62,000,000 | 0 | ||||||||||||
Repayments of revolving loan | (13,000,000 | ) | (40,000,000 | ) | (33,000,000 | ) | (93,000,000 | ) | ||||||||
Repayments of term loan | (938,000 | ) | (938,000 | ) | (2,813,000 | ) | (2,813,000 | ) | ||||||||
Payments for debt issuance costs | (1,102,000 | ) | 0 | (1,148,000 | ) | 0 | ||||||||||
Payments on finance lease obligations | (678,000 | ) | (549,000 | ) | (2,074,000 | ) | (1,775,000 | ) | ||||||||
Exercise of stock options | 354,000 | 20,000 | 464,000 | 205,000 | ||||||||||||
Cash used to net share settle equity awards | (542,000 | ) | (207,000 | ) | (1,745,000 | ) | (351,000 | ) | ||||||||
Repurchase of common stock, including fees | (1,914,000 | ) | 0 | |||||||||||||
Net cash provided by (used in) financing activities | 16,094,000 | (41,674,000 | ) | 19,770,000 | (97,734,000 | ) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | 94,000 | 172,000 | 76,000 | 729,000 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 9,360,000 | (22,152,000 | ) | |||||||||||||
Net decrease in cash and cash equivalents | (7,754,000 | ) | (36,816,000 | ) | ||||||||||||
Cash and cash equivalents — Beginning of period | 15,523,000 | 49,616,000 | 15,523,000 | 49,616,000 | ||||||||||||
Cash and cash equivalents — End of period | $ | 24,883,000 | $ | 27,464,000 | $ | 7,769,000 | $ | 12,800,000 | ||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||
Cash paid for interest, net | $ | 3,521,000 | $ | 4,234,000 | $ | 10,348,000 | $ | 11,222,000 | ||||||||
Cash paid for income taxes, net of refunds | 1,550,000 | 447,000 | 5,987,000 | 2,048,000 | ||||||||||||
Cash paid for operating leases | 2,472,000 | 2,574,000 | 7,969,000 | 8,087,000 | ||||||||||||
Cash paid for finance leases | 775,000 | 632,000 | 2,343,000 | 2,049,000 | ||||||||||||
Plant and equipment acquired under finance leases | 230,000 | 1,427,000 | 601,000 | 3,334,000 | ||||||||||||
Assets acquired under operating leases | 15,718,000 | 15,564,000 | 16,141,000 | 15,630,000 | ||||||||||||
Non-cash capital expenditures | 206,000 | 678,000 | 430,000 | 923,000 |
June 30, 2021 | March 31, 2021 | December 31, 2021 | March 31, 2021 | |||||||||||||
Accounts receivable — trade | $ | 67,212,000 | $ | 81,549,000 | $ | 71,124,000 | $ | 81,549,000 | ||||||||
Allowance for credit losses | (273,000 | ) | (348,000 | ) | (292,000 | ) | (348,000 | ) | ||||||||
Customer payment discrepancies | (797,000 | ) | (752,000 | ) | (1,185,000 | ) | (752,000 | ) | ||||||||
Customer returns RGA issued | (12,123,000 | ) | (17,327,000 | ) | (11,956,000 | ) | (17,327,000 | ) | ||||||||
Total accounts receivable — net | $ | 54,019,000 | $ | 63,122,000 | $ | 57,691,000 | $ | 63,122,000 |
Three Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Balance at beginning of period | $ | 348,000 | $ | 4,252,000 | ||||
Provision for expected credit losses | (36,000 | ) | 170,000 | |||||
Recoveries | 0 | (100,000 | ) | |||||
Amounts written off charged against the allowance | (39,000 | ) | (3,897,000 | ) | ||||
Balance at end of period | $ | 273,000 | $ | 425,000 |
Nine Months Ended December 31, | ||||||||
2021 | 2020 | |||||||
Balance at beginning of period | $ | 348,000 | $ | 4,252,000 | ||||
Provision for expected credit losses | (17,000 | ) | 74,000 | |||||
Recoveries | 0 | (100,000 | ) | |||||
Amounts written off charged against the allowance | (39,000 | ) | (3,898,000 | ) | ||||
Balance at end of period | $ | 292,000 | $ | 328,000 |
June 30, 2021 | March 31, 2021 | |||||||
Inventory | ||||||||
Raw materials | $ | 140,109,000 | $ | 128,190,000 | ||||
Work-in-process | 7,189,000 | 5,233,000 | ||||||
Finished goods | 173,725,000 | 168,184,000 | ||||||
321,023,000 | 301,607,000 | |||||||
Less allowance for excess and obsolete inventory | (13,945,000 | ) | (13,246,000 | ) | ||||
Inventory — net | 307,078,000 | 288,361,000 | ||||||
Inventory unreturned | 13,607,000 | 14,552,000 | ||||||
Total inventory | $ | 320,685,000 | $ | 302,913,000 |
December 31, 2021 | March 31, 2021 | |||||||
Inventory | ||||||||
Raw materials | $ | 159,001,000 | $ | 128,190,000 | ||||
Work-in-process | 8,048,000 | 5,233,000 | ||||||
Finished goods | 191,040,000 | 168,184,000 | ||||||
358,089,000 | 301,607,000 | |||||||
Less allowance for excess and obsolete inventory | (14,857,000 | ) | (13,246,000 | ) | ||||
Inventory — net | 343,232,000 | 288,361,000 | ||||||
Inventory unreturned | 15,506,000 | 14,552,000 | ||||||
Total inventory | $ | 358,738,000 | $ | 302,913,000 |
June 30, 2021 | March 31, 2021 | |||||||
Short-term contract assets | ||||||||
Cores expected to be returned by customers | $ | 15,024,000 | $ | 17,657,000 | ||||
Upfront payments to customers | 533,000 | 684,000 | ||||||
Finished goods premiums paid to customers | 644,000 | 405,000 | ||||||
Core premiums paid to customers | 10,063,000 | 8,194,000 | ||||||
Total short-term contract assets | $ | 26,264,000 | $ | 26,940,000 | ||||
Remanufactured cores held at customers' locations | $ | 243,389,000 | $ | 229,918,000 | ||||
Upfront payments to customers | 398,000 | 486,000 | ||||||
Finished goods premiums paid to customers | 3,191,000 | 2,731,000 | ||||||
Core premiums paid to customers | 40,611,000 | 31,509,000 | ||||||
Long-term core inventory deposits | 5,569,000 | 5,569,000 | ||||||
Total long-term contract assets | $ | 293,158,000 | $ | 270,213,000 |
December 31, 2021 | March 31, 2021 | |||||||
Short-term contract assets | ||||||||
Cores expected to be returned by customers | $ | 14,172,000 | $ | 17,657,000 | ||||
Upfront payments to customers | 540,000 | 684,000 | ||||||
Finished goods premiums paid to customers | 613,000 | 405,000 | ||||||
Core premiums paid to customers | 11,284,000 | 8,194,000 | ||||||
Total short-term contract assets | $ | 26,609,000 | $ | 26,940,000 | ||||
Remanufactured cores held at customers’ locations | $ | 257,609,000 | $ | 229,918,000 | ||||
Upfront payments to customers | 231,000 | 486,000 | ||||||
Finished goods premiums paid to customers | 2,926,000 | 2,731,000 | ||||||
Core premiums paid to customers | 45,421,000 | 31,509,000 | ||||||
Long-term core inventory deposits | 5,569,000 | 5,569,000 | ||||||
Total long-term contract assets | $ | 311,756,000 | $ | 270,213,000 |
Three Months Ended June 30, | Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Net sales | ||||||||||||||||||||||||
Customer A | 34 | % | 45 | % | 38 | % | 35 | % | 38 | % | 42 | % | ||||||||||||
Customer B | 20 | % | 26 | % | 15 | % | 26 | % | 17 | % | 24 | % | ||||||||||||
Customer C | 31 | % | 17 | % | 29 | % | 24 | % | 30 | % | 21 | % |
June 30, 2021 | March 31,2021 | December 31, 2021 | March 31, 2021 | |||||||||||||
Accounts receivable - trade | ||||||||||||||||
Customer A | 43 | % | 50 | % | 38 | % | 50 | % | ||||||||
Customer B | 24 | % | 23 | % | 21 | % | 23 | % | ||||||||
Customer C | 1 | % | 0 | 1 | % | 0 | % |
Three Months Ended June 30, | Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Product line | ||||||||||||||||||||||||
Rotating electrical products | 67 | % | 72 | % | 68 | % | 72 | % | 69 | % | 76 | % | ||||||||||||
Wheel hub products | 14 | % | 18 | % | 13 | % | 14 | % | 13 | % | 14 | % | ||||||||||||
Brake related products | 16 | % | 9 | % | 15 | % | 12 | % | 15 | % | 9 | % | ||||||||||||
Other products | 3 | % | 1 | % | 4 | % | 2 | % | 3 | % | 1 | % | ||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
June 30, 2021 | March 31, 2021 | December 31, 2021 | March 31, 2021 | |||||||||||||
Principal amount of Term Loans | $ | 19,687,000 | $ | 20,625,000 | $ | 17,812,000 | $ | 20,625,000 | ||||||||
Unamortized financing fees | (213,000 | ) | (161,000 | ) | (191,000 | ) | (161,000 | ) | ||||||||
Net carrying amount of Term Loans | 19,474,000 | 20,464,000 | 17,621,000 | 20,464,000 | ||||||||||||
Less current portion of Term Loans | (3,670,000 | ) | (3,678,000 | ) | (3,670,000 | ) | (3,678,000 | ) | ||||||||
Long-term portion of Term Loans | $ | 15,804,000 | $ | 16,786,000 | $ | 13,951,000 | $ | 16,786,000 |
Year Ending March 31, | ||||||||
2022 - remaining nine months | $ | 2,812,000 | ||||||
2022 - remaining three months | $ | 937,000 | ||||||
2023 | 3,750,000 | 3,750,000 | ||||||
2024 | 3,750,000 | 3,750,000 | ||||||
2025 | 3,750,000 | 3,750,000 | ||||||
2026 | 3,750,000 | 3,750,000 | ||||||
Thereafter | 1,875,000 | 1,875,000 | ||||||
Total payments | $ | 19,687,000 | $ | 17,812,000 |
June 30, 2021 | March 31, 2021 | December 31, 2021 | March 31, 2021 | |||||||||||||
Short-term contract liabilities | ||||||||||||||||
Customer core returns accruals | $ | 12,350,000 | $ | 12,710,000 | $ | 13,089,000 | $ | 12,710,000 | ||||||||
Customer allowances earned | 17,298,000 | 16,513,000 | 18,461,000 | 16,513,000 | ||||||||||||
Customer deposits | 2,735,000 | 2,234,000 | 3,747,000 | 2,234,000 | ||||||||||||
Finished goods liabilities | 2,424,000 | 1,883,000 | 1,609,000 | 1,883,000 | ||||||||||||
Core bank liability | 1,597,000 | 1,585,000 | 1,622,000 | 1,585,000 | ||||||||||||
Accrued core payment, net | 4,584,000 | 6,147,000 | ||||||||||||||
Accrued core payment | 1,662,000 | 6,147,000 | ||||||||||||||
Total short-term contract liabilities | $ | 40,988,000 | $ | 41,072,000 | $ | 40,190,000 | $ | 41,072,000 | ||||||||
Long-term contract liabilities | ||||||||||||||||
Customer core returns accruals | $ | 132,469,000 | $ | 103,719,000 | $ | 146,837,000 | $ | 103,719,000 | ||||||||
Customer allowances earned | 245,000 | 313,000 | 109,000 | 313,000 | ||||||||||||
Finished goods liabilities | 2,668,000 | 2,678,000 | 1,972,000 | 2,678,000 | ||||||||||||
Core bank liability | 16,499,000 | 16,903,000 | 15,682,000 | 16,903,000 | ||||||||||||
Accrued core payment, net | 1,623,000 | 1,610,000 | ||||||||||||||
Accrued core payment | 999,000 | 1,610,000 | ||||||||||||||
Total long-term contract liabilities | $ | 153,504,000 | $ | 125,223,000 | $ | 165,599,000 | $ | 125,223,000 |
Leases | Classification | June 30, 2021 | March 31, 2021 | Classification | December 31, 2021 | March 31, 2021 | |||||||||||||
Assets: | |||||||||||||||||||
Operating | Operating lease assets | $ | 87,924,000 | $ | 71,513,000 | Operating lease assets | $ | 82,029,000 | $ | 71,513,000 | |||||||||
Finance | Plant and equipment | 8,592,000 | 8,852,000 | Plant and equipment | 7,745,000 | 8,852,000 | |||||||||||||
Total leased assets | $ | 96,516,000 | $ | 80,365,000 | $ | 89,774,000 | $ | 80,365,000 | |||||||||||
Liabilities: | |||||||||||||||||||
Current | |||||||||||||||||||
Operating | Operating lease liabilities | $ | 5,434,000 | $ | 6,439,000 | Operating lease liabilities | $ | 6,444,000 | $ | 6,439,000 | |||||||||
Finance | Other current liabilities | 2,584,000 | 2,640,000 | Other current liabilities | 2,420,000 | 2,640,000 | |||||||||||||
Long-term | |||||||||||||||||||
Operating | Long-term operating lease liabilities | 85,889,000 | 70,551,000 | Long-term operating lease liabilities | 82,287,000 | 70,551,000 | |||||||||||||
Finance | Other liabilities | 4,606,000 | 4,995,000 | Other liabilities | 3,741,000 | 4,995,000 | |||||||||||||
Total lease liabilities | $ | 98,513,000 | $ | 84,625,000 | $ | 94,892,000 | $ | 84,625,000 |
Three Months Ended | ||||||||||||||||||||||||
June 30, | Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Lease cost | ||||||||||||||||||||||||
Operating lease cost | $ | 3,042,000 | $ | 2,683,000 | $ | 3,134,000 | $ | 2,962,000 | $ | 9,325,000 | $ | 8,522,000 | ||||||||||||
Short-term lease cost | 376,000 | 317,000 | 361,000 | 373,000 | 1,112,000 | 1,027,000 | ||||||||||||||||||
Variable lease cost | 281,000 | 143,000 | 225,000 | 183,000 | 716,000 | 556,000 | ||||||||||||||||||
Finance lease cost: | ||||||||||||||||||||||||
Amortization of finance lease assets | 499,000 | 413,000 | 515,000 | 458,000 | 1,579,000 | 1,299,000 | ||||||||||||||||||
Interest on finance lease liabilities | 97,000 | 83,000 | 83,000 | 98,000 | 269,000 | 274,000 | ||||||||||||||||||
Total lease cost | $ | 4,295,000 | $ | 3,639,000 | $ | 4,318,000 | $ | 4,074,000 | $ | 13,001,000 | $ | 11,678,000 |
Maturity of lease liabilities | Operating Leases | Finance Leases | Total | Operating Leases | Finance Leases | Total | ||||||||||||||||||
2022 - remaining nine months | $ | 7,807,000 | $ | 2,246,000 | $ | 10,053,000 | ||||||||||||||||||
2022 - remaining three months | $ | 2,449,000 | $ | 714,000 | $ | 3,163,000 | ||||||||||||||||||
2023 | 11,351,000 | 2,404,000 | 13,755,000 | 11,460,000 | 2,490,000 | 13,950,000 | ||||||||||||||||||
2024 | 9,968,000 | 1,610,000 | 11,578,000 | 10,014,000 | 1,688,000 | 11,702,000 | ||||||||||||||||||
2025 | 10,041,000 | 1,118,000 | 11,159,000 | 10,078,000 | 1,194,000 | 11,272,000 | ||||||||||||||||||
2026 | 10,320,000 | 432,000 | 10,752,000 | 10,347,000 | 507,000 | 10,854,000 | ||||||||||||||||||
Thereafter | 75,101,000 | 0 | 75,101,000 | 75,113,000 | 51,000 | 75,164,000 | ||||||||||||||||||
Total lease payments | 124,588,000 | 7,810,000 | 132,398,000 | 119,461,000 | 6,644,000 | 126,105,000 | ||||||||||||||||||
Less amount representing interest | (33,265,000 | ) | (620,000 | ) | (33,885,000 | ) | (30,730,000 | ) | (483,000 | ) | (31,213,000 | ) | ||||||||||||
Present value of lease liabilities | $ | 91,323,000 | $ | 7,190,000 | $ | 98,513,000 | $ | 88,731,000 | $ | 6,161,000 | $ | 94,892,000 |
June 30, 2021 | March 31, 2021 | |||||||
Lease term and discount rate | ||||||||
Weighted-average remaining lease term (years): | ||||||||
Finance leases | 3.2 | 3.4 | ||||||
Operating leases | 11.0 | 11.1 | ||||||
Weighted-average discount rate: | ||||||||
Finance leases | 5.3 | % | 5.3 | % | ||||
Operating leases | 5.7 | % | 5.9 | % |
December 31, 2021 | March 31, 2021 | |||||||
Lease term and discount rate | ||||||||
Weighted-average remaining lease term (years): | ||||||||
Finance leases | 3.0 | 3.4 | ||||||
Operating leases | 10.6 | 11.1 | ||||||
Weighted-average discount rate: | ||||||||
Finance leases | 5.2 | % | 5.3 | % | ||||
Operating leases | 5.7 | % | 5.9 | % |
Three Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Receivables discounted | $ | 146,669,000 | $ | 111,360,000 | ||||
Weighted average days | 329 | 345 | ||||||
Annualized weighted average discount rate | 1.8 | % | 2.5 | % | ||||
Amount of discount recognized as interest expense | $ | 2,473,000 | $ | 2,686,000 |
Nine Months Ended December 31, | ||||||||
2021 | 2020 | |||||||
Receivables discounted | $ | 418,044,000 | $ | 367,102,000 | ||||
Weighted average days | 335 | 333 | ||||||
Annualized weighted average discount rate | 1.7 | % | 2.1 | % | ||||
Amount of discount recognized as interest expense | $ | 6,798,000 | $ | 7,277,000 |
Three Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Net income (loss) | $ | 861,000 | $ | (3,012,000 | ) | |||
Basic shares | 19,054,481 | 18,976,178 | ||||||
Effect of potentially dilutive securities | 604,576 | 0 | ||||||
Diluted shares | 19,659,057 | 18,976,178 | ||||||
Net income (loss) per share: | ||||||||
Basic net income (loss) per share | $ | 0.05 | $ | (0.16 | ) | |||
Diluted net income (loss) per share | $ | 0.04 | $ | (0.16 | ) |
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net income | $ | 3,139,000 | $ | 8,469,000 | $ | 7,683,000 | $ | 20,641,000 | ||||||||
Basic shares | 19,184,339 | 19,053,232 | 19,124,824 | 19,016,302 | ||||||||||||
Effect of potentially dilutive securities | 359,835 | 383,561 | 479,956 | 317,456 | ||||||||||||
Diluted shares | 19,544,174 | 19,436,793 | 19,604,780 | 19,333,758 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic net income per share | $ | 0.16 | $ | 0.44 | $ | 0.40 | $ | 1.09 | ||||||||
Diluted net income per share | $ | 0.16 | $ | 0.44 | $ | 0.39 | $ | 1.07 |
Gain (Loss) Recognized as Foreign Exchange Impact of Lease Liabilities and Forward Contracts | Gain (Loss) Recognized as Foreign Exchange Impact of Lease Liabilities and Forward Contracts | |||||||||||||||||||||||
Derivatives Not Designated as | Three Months Ended June 30, | Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||
Hedging Instruments | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||
Forward foreign currency exchange contracts | $ | (262,000 | ) | $ | 2,832,000 | $ | 600,000 | $ | 3,817,000 | $ | (1,833,000 | ) | $ | 9,016,000 |
June 30, 2021 | March 31, 2021 | December 31, 2021 | March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using Inputs Considered as | Fair Value Measurements Using Inputs Considered as | Fair Value Measurements Using Inputs Considered as | Fair Value Measurements Using Inputs Considered as | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | Fair Value | Level 1 | Level 2 | Level 3 | Fair Value | Level 1 | Level 2 | Level 3 | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mutual funds | $ | 1,823,000 | $ | 1,823,000 | $ | 0 | $ | 0 | $ | 1,652,000 | $ | 1,652,000 | $ | 0 | $ | 0 | $ | 2,212,000 | $ | 2,212,000 | $ | 0 | $ | 0 | $ | 1,652,000 | $ | 1,652,000 | $ | 0 | $ | 0 | ||||||||||||||||||||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forward foreign currency exchange contracts | 1,167,000 | 0 | 1,167,000 | 0 | 1,429,000 | 0 | 1,429,000 | 0 | 0 | 0 | 0 | 0 | 1,429,000 | 0 | 1,429,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term contingent consideration | 850,000 | 0 | 0 | 850,000 | 910,000 | 0 | 0 | 910,000 | 970,000 | 0 | 0 | 970,000 | 910,000 | 0 | 0 | 910,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other current liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation | 1,823,000 | 1,823,000 | 0 | 0 | 1,652,000 | 1,652,000 | 0 | 0 | 2,212,000 | 2,212,000 | 0 | 0 | 1,652,000 | 1,652,000 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Forward foreign currency exchange contracts | 404,000 | 0 | 404,000 | 0 | 0 | 0 | 0 | 0 |
Three Months Ended June 30, | Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
Contingent Consideration | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||
Beginning balance | $ | 910,000 | $ | 2,653,000 | $ | 980,000 | $ | 2,588,000 | $ | 910,000 | $ | 2,653,000 | ||||||||||||
Changes in revaluations of contingent consideration included in earnings | (60,000 | ) | (47,000 | ) | (10,000 | ) | 20,000 | 60,000 | (45,000 | ) | ||||||||||||||
Ending balance | $ | 850,000 | $ | 2,606,000 | $ | 970,000 | $ | 2,608,000 | $ | 970,000 | $ | 2,608,000 |
Number of Shares | Weighted Average Exercise Price | Number of Shares | Weighted Average Exercise Price | |||||||||||||
Outstanding at March 31, 2021 | 1,744,885 | $ | 17.51 | 1,744,885 | $ | 17.51 | ||||||||||
Granted | 0 | $ | 0 | 0 | $ | 0 | ||||||||||
Exercised | (21,270 | ) | $ | 18.24 | (30,976 | ) | $ | 16.10 | ||||||||
Forfeited | (900 | ) | $ | 17.90 | (5,984 | ) | $ | 19.81 | ||||||||
Outstanding at June 30, 2021 | 1,722,715 | $ | 17.50 | |||||||||||||
Outstanding at December 31, 2021 | 1,707,925 | $ | 17.52 |
Number of Shares | Weighted Average Grant Date Fair Value | Number of Shares | Weighted Average Grant Date Fair Value | |||||||||||||
Outstanding at March 31, 2021 | 354,484 | $ | 17.22 | 354,484 | $ | 17.22 | ||||||||||
Granted | 218,673 | $ | 22.27 | 263,703 | $ | 21.90 | ||||||||||
Vested | (59,483 | ) | $ | 16.62 | (216,617 | ) | $ | 17.78 | ||||||||
Forfeited | 0 | $ | 0 | (1,832 | ) | $ | 20.15 | |||||||||
Outstanding at June 30, 2021 | 513,674 | $ | 19.44 | |||||||||||||
Outstanding at December 31, 2021 | 399,738 | $ | 19.98 |
Three Months Ended June 30, | ||||
2021 | ||||
Risk free interest rate | 0.47 | % | ||
Expected life in years | 3 | |||
Expected volatility of MPA common stock | 53.70 | % | ||
Expected average volatility of peer companies | 59.30 | % | ||
Average correlation coefficient of peer companies | 26.70 | % | ||
Expected dividend yield | 0 | |||
Grant date fair value | $ | 26.89 |
Nine Months Ended December 31, | ||||
2021 | ||||
Risk free interest rate | 0.47 | % | ||
Expected life in years | 3 | |||
Expected volatility of MPA common stock | 53.70 | % | ||
Expected average volatility of peer companies | 59.30 | % | ||
Average correlation coefficient of peer companies | 26.70 | % | ||
Expected dividend yield | 0 | |||
Grant date fair value | $ | 26.89 |
Number of Shares | Weighted Average Grant Date Fair Value | Number of Shares | Weighted Average Grant Date Fair Value | |||||||||||||
Outstanding at March 31, 2021 | 0 | $ | 0 | 0 | $ | 0 | ||||||||||
Granted | 84,593 | $ | 23.19 | 84,593 | $ | 23.19 | ||||||||||
Vested | 0 | $ | 0 | 0 | $ | 0 | ||||||||||
Forfeited | 0 | $ | 0 | 0 | $ | 0 | ||||||||||
Outstanding at June 30, 2021 | 84,593 | $ | 23.19 | |||||||||||||
Outstanding at December 31, 2021 | 84,593 | $ | 23.19 |
Three Months Ended June 30, | Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Balance at beginning of period | $ | 21,093,000 | $ | 18,300,000 | $ | 20,875,000 | $ | 22,499,000 | $ | 21,093,000 | $ | 18,300,000 | ||||||||||||
Charged to expense | 27,261,000 | 23,089,000 | 30,282,000 | 26,194,000 | 88,380,000 | 80,155,000 | ||||||||||||||||||
Amounts processed | (28,344,000 | ) | (19,197,000 | ) | (32,425,000 | ) | (31,540,000 | ) | (90,741,000 | ) | (81,302,000 | ) | ||||||||||||
Balance at end of period | $ | 20,010,000 | $ | 22,192,000 | $ | 18,732,000 | $ | 17,153,000 | $ | 18,732,000 | $ | 17,153,000 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended June 30, | Three Months Ended December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Cash flow (used in) provided by operations | $ | (4,739,000 | ) | $ | 22,388,000 | |||||||||||
Cash flow provided by operations | $ | 2,165,000 | $ | 33,154,000 | ||||||||||||
Finished goods turnover (annualized) (1) | 4.5 | 3.4 | 4.0 | 4.0 |
(1) | Annualized finished goods turnover for the fiscal quarter is calculated by multiplying cost of goods sold for the quarter by 4 and dividing the result by the average between beginning and ending non-core finished goods inventory values for the fiscal quarter. Annualized finished goods turnover for the three months ended |
Three Months Ended June 30, | Three Months Ended December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net sales | $ | 149,034,000 | $ | 95,356,000 | $ | 161,810,000 | $ | 122,568,000 | ||||||||
Cost of goods sold | 125,463,000 | 81,969,000 | 129,235,000 | 98,327,000 | ||||||||||||
Gross profit | 23,571,000 | 13,387,000 | 32,575,000 | 24,241,000 | ||||||||||||
Gross profit percentage | 15.8 | % | 14.0 | % | 20.1 | % | 19.8 | % |
Three Months Ended June 30, | Three Months Ended December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
General and administrative | $ | 12,486,000 | $ | 11,687,000 | $ | 14,605,000 | $ | 14,005,000 | ||||||||
Sales and marketing | 5,368,000 | 4,200,000 | 6,274,000 | 4,698,000 | ||||||||||||
Research and development | 2,501,000 | 1,942,000 | 2,635,000 | 2,100,000 | ||||||||||||
Foreign exchange impact of lease liabilities and forward contracts | (2,533,000 | ) | (4,817,000 | ) | 385,000 | (12,455,000 | ) | |||||||||
Percent of net sales | ||||||||||||||||
General and administrative | 8.4 | % | 12.3 | % | 9.0 | % | 11.4 | % | ||||||||
Sales and marketing | 3.6 | % | 4.4 | % | 3.9 | % | 3.8 | % | ||||||||
Research and development | 1.7 | % | 2.0 | % | 1.6 | % | 1.7 | % | ||||||||
Foreign exchange impact of lease liabilities and forward contracts | (1.7 | )% | (5.1 | )% | 0.2 | % | (10.2 | )% |
Nine Months Ended December 31, | ||||||||
2021 | 2020 | |||||||
Cash flow (used in) provided by operations | $ | (22,174,000 | ) | $ | 72,484,000 | |||
Finished goods turnover (annualized) (1) | 4.2 | 3.8 |
(1) | Annualized finished goods turnover for the fiscal period is calculated by multiplying cost of goods sold for the period by 1.33 and dividing the result by the average between beginning and ending non-core finished goods inventory values for the fiscal period. Annualized finished goods turnover for the nine months ended December 31, 2020 has been updated to conform to the current year presentation for non-core finished goods turnover. We believe this provides a useful measure of our ability to turn our inventory into revenues. |
Nine Months Ended December 31, | ||||||||
2021 | 2020 | |||||||
Net sales | $ | 486,392,000 | $ | 372,654,000 | ||||
Cost of goods sold | 394,295,000 | 295,300,000 | ||||||
Gross profit | 92,097,000 | 77,354,000 | ||||||
Gross profit percentage | 18.9 | % | 20.8 | % |
Nine Months Ended December 31, | ||||||||
2021 | 2020 | |||||||
General and administrative | $ | 41,556,000 | $ | 38,210,000 | ||||
Sales and marketing | 17,162,000 | 13,224,000 | ||||||
Research and development | 7,631,000 | 6,014,000 | ||||||
Foreign exchange impact of lease liabilities and forward contracts | 1,769,000 | (21,257,000 | ) | |||||
Percent of net sales | ||||||||
General and administrative | 8.5 | % | 10.3 | % | ||||
Sales and marketing | 3.5 | % | 3.5 | % | ||||
Research and development | 1.6 | % | 1.6 | % | ||||
Foreign exchange impact of lease liabilities and forward contracts | 0.4 | % | (5.7 | )% |
Three Months Ended June 30, | Nine Months Ended December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Cash flows provided by (used in): | ||||||||||||||||
Cash flows (used in) provided by: | ||||||||||||||||
Operating activities | $ | (4,739,000 | ) | $ | 22,388,000 | $ | (22,174,000 | ) | $ | 72,484,000 | ||||||
Investing activities | (2,089,000 | ) | (3,038,000 | ) | (5,426,000 | ) | (12,295,000 | ) | ||||||||
Financing activities | 16,094,000 | (41,674,000 | ) | 19,770,000 | (97,734,000 | ) | ||||||||||
Effect of exchange rates on cash and cash equivalents | 94,000 | 172,000 | 76,000 | 729,000 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 9,360,000 | $ | (22,152,000 | ) | |||||||||||
Net decrease in cash and cash equivalents | $ | (7,754,000 | ) | $ | (36,816,000 | ) | ||||||||||
Additional selected cash flow data: | ||||||||||||||||
Depreciation and amortization | $ | 3,145,000 | $ | 2,551,000 | $ | 9,591,000 | $ | 8,090,000 | ||||||||
Capital expenditures | 1,922,000 | 2,983,000 | 5,111,000 | 12,043,000 |
Financial covenants required under the Credit Facility | Calculation as of June 30, 2021 | Financial covenants required under the Credit Facility | Calculation as of December 31, 2021 | |||||||||
Maximum senior leverage ratio | 3.00 | 1.57 | 3.00 | 1.72 | ||||||||
Minimum fixed charge coverage ratio | 1.10 | 1.34 | 1.10 | 1.52 |
Three Months Ended June 30, | Nine Months Ended December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Receivables discounted | $ | 146,669,000 | $ | 111,360,000 | $ | 418,044,000 | $ | 367,102,000 | ||||||||
Weighted average days | 329 | 345 | 335 | 333 | ||||||||||||
Annualized weighted average discount rate | 1.8 | % | 2.5 | % | 1.7 | % | 2.1 | % | ||||||||
Amount of discount recognized as interest expense | $ | 2,473,000 | $ | 2,686,000 | $ | 6,798,000 | $ | 7,277,000 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Periods | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1) | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||||||||||||||
April 1 - April 30, 2021: | ||||||||||||||||||||||||||||||||
October 1 - October 31, 2021: | ||||||||||||||||||||||||||||||||
Open market and privately negotiated purchases | - | $ | - | - | $ | 20,169,000 | - | $ | - | - | $ | 20,169,000 | ||||||||||||||||||||
May 1 - May 31, 2021: | ||||||||||||||||||||||||||||||||
November 1 - November 30, 2021: | ||||||||||||||||||||||||||||||||
Open market and privately negotiated purchases | - | $ | - | - | 20,169,000 | - | $ | - | - | 20,169,000 | ||||||||||||||||||||||
June 1 - June 30, 2021: | ||||||||||||||||||||||||||||||||
December 1 - December 31, 2021: | ||||||||||||||||||||||||||||||||
Open market and privately negotiated purchases | - | $ | - | - | 20,169,000 | 106,486 | $ | 17.97 | 1,914,000 | 18,255,000 | ||||||||||||||||||||||
Total | 0 | 0 | $ | 20,169,000 | 106,486 | 1,914,000 | $ | 18,255,000 |
(1) | As of |
Item 5. | Other Information |
Item 6. | Exhibits |
(a) | Exhibits: |
Number | Description of Exhibit | Method of Filing | |||
3.1 | Certificate of Incorporation of the Company | Incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form SB-2 declared effective on March 22, 1994 (the “1994 Registration Statement”). | |||
3.2 | Amendment to Certificate of Incorporation of the Company | Incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form S-1 (No. 33-97498) declared effective on November 14, 1995. | |||
3.3 | Amendment to Certificate of Incorporation of the Company | ||||
3.4 | Amendment to Certificate of Incorporation of the Company | ||||
3.5 | Amendment to Certificate of Incorporation of the Company | ||||
3.6 | Amended and Restated By-Laws of Motorcar Parts of America, Inc. | ||||
3.7 | Certificate of Amendment of the Certificate of Incorporation of the Company | ||||
3.8 | Amendment to the Amended and Restated By-Laws of Motorcar Parts of America, Inc., as adopted on June 9, 2016 | ||||
3.9 | Amendment to the Amended and Restated By-Laws of the Company | ||||
Third Amendment to the Amended and Restated By-Laws of Motorcar Parts of America, Inc., as adopted on January 26, 2022 | |||||
4.1 | 2004 Non-Employee Director Stock Option Plan | ||||
4.2 | 2010 Incentive Award Plan | ||||
4.3 | Amended and Restated 2010 Incentive Award Plan |
Number | Description of Exhibit | Method of Filing | ||||
4.4 | Second Amended and Restated 2010 Incentive Award Plan | |||||
4.5 | 2014 Non-Employee Director Incentive Award Plan | |||||
4.6 | Third Amended and Restated 2010 Incentive Award Plan | |||||
4.7 | Fourth Amended and Restated 2010 Incentive Award Plan | |||||
Amendment No. 5 to Employment Agreement, dated as of June 18, 2021, between Motorcar Parts of America, Inc., and Selwyn Joffe | ||||||
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 | Filed herewith. | |||||
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 | Filed herewith. | |||||
Certification of Chief Accounting Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 | Filed herewith. | |||||
Certifications of Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer pursuant to Section 906 of the Sarbanes Oxley Act of 2002 | Filed herewith. | |||||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the inline XBRL document). | |||||
101.SCM | Inline XBRL Taxonomy Extension Schema Document | |||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
MOTORCAR PARTS OF AMERICA, INC. | ||
Dated: | By: | /s/ David Lee |
David Lee | ||
Chief Financial Officer | ||
Dated: | By: | /s/ Kamlesh Shah |
Kamlesh Shah | ||
Chief Accounting Officer |