☑ | 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 | ||
4 | ||
4 | ||
5 | ||
6 | ||
7 | ||
8 | ||
9 | ||
PART II — OTHER INFORMATION | ||
Item 1. | Financial Statements |
June 30, 2021 | March 31, 2021 | June 30, 2022 | March 31, 2022 | |||||||||||||
ASSETS | (Unaudited) | (Unaudited) | ||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 24,883,000 | $ | 15,523,000 | $ | 9,217,000 | $ | 23,016,000 | ||||||||
Short-term investments | 1,823,000 | 1,652,000 | 1,995,000 | 2,202,000 | ||||||||||||
Accounts receivable — net | 54,019,000 | 63,122,000 | 73,030,000 | 85,075,000 | ||||||||||||
Inventory | 320,685,000 | 302,913,000 | 405,205,000 | 385,504,000 | ||||||||||||
Contract assets | 26,264,000 | 26,940,000 | 27,783,000 | 27,500,000 | ||||||||||||
Prepaid expenses and other current assets | 13,307,000 | 12,706,000 | 11,705,000 | 13,688,000 | ||||||||||||
Total current assets | 440,981,000 | 422,856,000 | 528,935,000 | 536,985,000 | ||||||||||||
Plant and equipment — net | 53,287,000 | 53,854,000 | 49,384,000 | 51,062,000 | ||||||||||||
Operating lease assets | 87,924,000 | 71,513,000 | 80,157,000 | 81,997,000 | ||||||||||||
Long-term deferred income taxes | 19,150,000 | 19,381,000 | 27,046,000 | 26,982,000 | ||||||||||||
Long-term contract assets | 293,158,000 | 270,213,000 | 306,953,000 | 310,255,000 | ||||||||||||
Goodwill and intangible assets — net | 8,194,000 | 8,534,000 | 6,548,000 | 7,004,000 | ||||||||||||
Other assets | 1,246,000 | 1,531,000 | 1,403,000 | 1,413,000 | ||||||||||||
TOTAL ASSETS | $ | 903,940,000 | $ | 847,882,000 | $ | 1,000,426,000 | $ | 1,015,698,000 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
LIABILITIES AND SHAREHOLDERS�� EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable and accrued liabilities | $ | 141,451,000 | $ | 152,735,000 | $ | 173,818,000 | $ | 168,435,000 | ||||||||
Customer finished goods returns accrual | 35,261,000 | 31,524,000 | 28,793,000 | 38,086,000 | ||||||||||||
Contract liabilities | 40,988,000 | 41,072,000 | 43,645,000 | 42,496,000 | ||||||||||||
Revolving loan | 103,000,000 | 84,000,000 | 146,000,000 | 155,000,000 | ||||||||||||
Other current liabilities | 5,774,000 | 6,683,000 | 11,279,000 | 11,930,000 | ||||||||||||
Operating lease liabilities | 5,434,000 | 6,439,000 | 6,653,000 | 6,788,000 | ||||||||||||
Current portion of term loan | 3,670,000 | 3,678,000 | 3,670,000 | 3,670,000 | ||||||||||||
Total current liabilities | 335,578,000 | 326,131,000 | 413,858,000 | 426,405,000 | ||||||||||||
Term loan, less current portion | 15,804,000 | 16,786,000 | 12,097,000 | 13,024,000 | ||||||||||||
Long-term contract liabilities | 153,504,000 | 125,223,000 | 173,045,000 | 172,764,000 | ||||||||||||
Long-term deferred income taxes | 76,000 | 73,000 | 121,000 | 126,000 | ||||||||||||
Long-term operating lease liabilities | 85,889,000 | 70,551,000 | 79,552,000 | 80,803,000 | ||||||||||||
Other liabilities | 7,862,000 | 7,973,000 | 6,987,000 | 7,313,000 | ||||||||||||
Total liabilities | 598,713,000 | 546,737,000 | 685,660,000 | 700,435,000 | ||||||||||||
Commitments and contingencies | 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; 19,214,978 and 19,104,751 shares issued and outstanding at June 30, 2022 and March 31, 2022, respectively | 192,000 | 191,000 | ||||||||||||||
Additional paid-in capital | 224,445,000 | 223,058,000 | 227,729,000 | 227,184,000 | ||||||||||||
Retained earnings | 86,454,000 | 85,593,000 | 92,779,000 | 92,954,000 | ||||||||||||
Accumulated other comprehensive loss | (5,863,000 | ) | (7,696,000 | ) | (5,934,000 | ) | (5,066,000 | ) | ||||||||
Total shareholders' equity | 305,227,000 | 301,145,000 | ||||||||||||||
Total shareholders’ equity | 314,766,000 | 315,263,000 | ||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 903,940,000 | $ | 847,882,000 | $ | 1,000,426,000 | $ | 1,015,698,000 |
Three Months Ended June 30, | ||||||||||||||||
2021 | 2020 | Three Months Ended June 30, | ||||||||||||||
2022 | 2021 | |||||||||||||||
Net sales | $ | 149,034,000 | $ | 95,356,000 | $ | 163,985,000 | $ | 149,034,000 | ||||||||
Cost of goods sold | 125,463,000 | 81,969,000 | 133,683,000 | 125,463,000 | ||||||||||||
Gross profit | 23,571,000 | 13,387,000 | 30,302,000 | 23,571,000 | ||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative | 12,486,000 | 11,687,000 | 13,634,000 | 12,486,000 | ||||||||||||
Sales and marketing | 5,368,000 | 4,200,000 | 5,542,000 | 5,368,000 | ||||||||||||
Research and development | 2,501,000 | 1,942,000 | 3,113,000 | 2,501,000 | ||||||||||||
Foreign exchange impact of lease liabilities and forward contracts | (2,533,000 | ) | (4,817,000 | ) | 678,000 | (2,533,000 | ) | |||||||||
Total operating expenses | 17,822,000 | 13,012,000 | 22,967,000 | 17,822,000 | ||||||||||||
Operating income | 5,749,000 | 375,000 | 7,335,000 | 5,749,000 | ||||||||||||
Interest expense, net | 3,941,000 | 4,409,000 | 6,921,000 | 3,941,000 | ||||||||||||
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 | 414,000 | 1,808,000 | ||||||||||||||
Income tax expense | 589,000 | 947,000 | ||||||||||||||
Net (loss) income | $ | (175,000 | ) | $ | 861,000 | |||||||||||
Basic net (loss) income per share | $ | (0.01 | ) | $ | 0.05 | |||||||||||
Diluted net (loss) income per share | $ | (0.01 | ) | $ | 0.04 | |||||||||||
Weighted average number of shares outstanding: | ||||||||||||||||
Basic | 19,054,481 | 18,976,178 | 19,123,354 | 19,054,481 | ||||||||||||
Diluted | 19,659,057 | 18,976,178 | 19,123,354 | 19,659,057 |
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 June 30, | ||||||||
2022 | 2021 | |||||||
Net (loss) income | $ | (175,000 | ) | $ | 861,000 | |||
Other comprehensive (loss) income, net of tax: | ||||||||
Foreign currency translation (loss) gain | (868,000 | ) | 1,833,000 | |||||
Total other comprehensive (loss) income, net of tax | (868,000 | ) | 1,833,000 | |||||
Comprehensive (loss) income | $ | (1,043,000 | ) | $ | 2,694,000 |
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 (Loss) Income | Total | |||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 19,045,386 | $ | 190,000 | $ | 223,058,000 | $ | 85,593,000 | $ | (7,696,000 | ) | $ | 301,145,000 | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | 19,104,751 | $ | 191,000 | $ | 227,184,000 | $ | 92,954,000 | $ | (5,066,000 | ) | $ | 315,263,000 | ||||||||||||||||||||||||||||||||||||
Compensation recognized under employee stock plans | - | 0 | 1,576,000 | 0 | 0 | 1,576,000 | - | 0 | 1,249,000 | 0 | 0 | 1,249,000 | ||||||||||||||||||||||||||||||||||||
Exercise of stock options, net of shares withheld for employee taxes | 19,837 | 0 | 354,000 | 0 | 0 | 354,000 | 25,543 | 0 | 191,000 | 0 | 0 | 191,000 | ||||||||||||||||||||||||||||||||||||
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 | ) | 84,684 | 1,000 | (895,000 | ) | 0 | 0 | (894,000 | ) | ||||||||||||||||||||||||||||||||
Foreign currency translation | - | 0 | 0 | 0 | 1,833,000 | 1,833,000 | - | 0 | 0 | 0 | (868,000 | ) | (868,000 | ) | ||||||||||||||||||||||||||||||||||
Net income | - | 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 | ||||||||||||||||||||||||||||||||||||
Net loss | - | 0 | 0 | (175,000 | ) | 0 | (175,000 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | 19,214,978 | $ | 192,000 | $ | 227,729,000 | $ | 92,779,000 | $ | (5,934,000 | ) | $ | 314,766,000 |
Common Stock | ||||||||||||||||||||||||
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 | ||||||||||||
Compensation recognized under employee stock plans | - | 0 | 1,043,000 | 0 | 0 | 1,043,000 | ||||||||||||||||||
Exercise of stock options | 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 | ) | ||||||||||||||||
Foreign currency translation | - | 0 | 0 | 0 | (1,263,000 | ) | (1,263,000 | ) | ||||||||||||||||
Net loss | - | 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 |
Common Stock | ||||||||||||||||||||||||
Shares | Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total | |||||||||||||||||||
Balance at March 31,2021 | 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 | ||||||||||||||||||
Exercise of stock options, net of shares withheld for employee taxes | 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 | ) | ||||||||||||||||
Foreign currency translation | - | 0 | 0 | 0 | 1,833,000 | 1,833,000 | ||||||||||||||||||
Net income | - | 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 |
Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
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 (loss) income | $ | (175,000 | ) | $ | 861,000 | |||||||||||
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||||||||||||||
Depreciation and amortization | 3,145,000 | 2,551,000 | 3,124,000 | 3,145,000 | ||||||||||||
Amortization of interest | 414,000 | 312,000 | 306,000 | 414,000 | ||||||||||||
Amortization of core premiums paid to customers | 2,531,000 | 1,223,000 | 2,863,000 | 2,531,000 | ||||||||||||
Amortization of finished goods premiums paid to customers | 146,000 | 0 | 181,000 | 146,000 | ||||||||||||
Noncash lease expense | 1,791,000 | 1,686,000 | 1,939,000 | 1,791,000 | ||||||||||||
Gain due to the change in the fair value of the contingent consideration | (60,000 | ) | (47,000 | ) | 0 | (60,000 | ) | |||||||||
Foreign exchange impact of lease liabilities and forward contracts | (2,533,000 | ) | (4,817,000 | ) | 678,000 | (2,533,000 | ) | |||||||||
Gain on short-term investments | (5,000 | ) | (155,000 | ) | ||||||||||||
Loss (gain) on short-term investments | 294,000 | (5,000 | ) | |||||||||||||
Net provision for inventory reserves | 3,141,000 | 2,074,000 | 3,942,000 | 3,141,000 | ||||||||||||
Net provision for customer payment discrepancies and credit losses | 229,000 | 30,000 | 300,000 | 229,000 | ||||||||||||
Deferred income taxes | 358,000 | 465,000 | (62,000 | ) | 358,000 | |||||||||||
Share-based compensation expense | 1,576,000 | 1,043,000 | 1,249,000 | 1,576,000 | ||||||||||||
Loss on disposal of plant and equipment | 33,000 | 0 | 9,000 | 33,000 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | 9,020,000 | 25,847,000 | 11,427,000 | 9,020,000 | ||||||||||||
Inventory | (20,625,000 | ) | (8,034,000 | ) | (24,252,000 | ) | (20,625,000 | ) | ||||||||
Prepaid expenses and other current assets | 281,000 | (2,898,000 | ) | 1,122,000 | 281,000 | |||||||||||
Other assets | 297,000 | 219,000 | 6,000 | 297,000 | ||||||||||||
Accounts payable and accrued liabilities | (10,183,000 | ) | 6,478,000 | 5,898,000 | (10,183,000 | ) | ||||||||||
Customer finished goods returns accrual | 3,698,000 | 1,621,000 | (9,289,000 | ) | 3,698,000 | |||||||||||
Contract assets, net | (24,857,000 | ) | (6,076,000 | ) | (37,000 | ) | (24,857,000 | ) | ||||||||
Contract liabilities, net | 27,880,000 | 4,620,000 | 1,384,000 | 27,880,000 | ||||||||||||
Operating lease liabilities | (1,259,000 | ) | (1,416,000 | ) | (1,446,000 | ) | (1,259,000 | ) | ||||||||
Other liabilities | (618,000 | ) | 674,000 | (443,000 | ) | (618,000 | ) | |||||||||
Net cash (used in) provided by operating activities | (4,739,000 | ) | 22,388,000 | |||||||||||||
Net cash used in operating activities | (982,000 | ) | (4,739,000 | ) | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of plant and equipment | (1,922,000 | ) | (2,983,000 | ) | (1,375,000 | ) | (1,922,000 | ) | ||||||||
Change in short-term investments | (167,000 | ) | (55,000 | ) | ||||||||||||
Purchase of short-term investments | (86,000 | ) | (167,000 | ) | ||||||||||||
Net cash used in investing activities | (2,089,000 | ) | (3,038,000 | ) | (1,461,000 | ) | (2,089,000 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Borrowings under revolving loan | 32,000,000 | 0 | 13,000,000 | 32,000,000 | ||||||||||||
Repayments of revolving loan | (13,000,000 | ) | (40,000,000 | ) | (22,000,000 | ) | (13,000,000 | ) | ||||||||
Repayments of term loan | (938,000 | ) | (938,000 | ) | (938,000 | ) | (938,000 | ) | ||||||||
Payments for debt issuance costs | (1,102,000 | ) | 0 | (21,000 | ) | (1,102,000 | ) | |||||||||
Payments on finance lease obligations | (678,000 | ) | (549,000 | ) | (604,000 | ) | (678,000 | ) | ||||||||
Exercise of stock options | 354,000 | 20,000 | 191,000 | 354,000 | ||||||||||||
Cash used to net share settle equity awards | (542,000 | ) | (207,000 | ) | (894,000 | ) | (542,000 | ) | ||||||||
Net cash provided by (used in) financing activities | 16,094,000 | (41,674,000 | ) | |||||||||||||
Net cash (used in) provided by financing activities | (11,266,000 | ) | 16,094,000 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 94,000 | 172,000 | (90,000 | ) | 94,000 | |||||||||||
Net increase (decrease) in cash and cash equivalents | 9,360,000 | (22,152,000 | ) | |||||||||||||
Net (decrease) increase in cash and cash equivalents | (13,799,000 | ) | 9,360,000 | |||||||||||||
Cash and cash equivalents — Beginning of period | 15,523,000 | 49,616,000 | 23,016,000 | 15,523,000 | ||||||||||||
Cash and cash equivalents — End of period | $ | 24,883,000 | $ | 27,464,000 | $ | 9,217,000 | $ | 24,883,000 | ||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||
Cash paid for interest, net | $ | 3,521,000 | $ | 4,234,000 | $ | 6,548,000 | $ | 3,521,000 | ||||||||
Cash paid for income taxes, net of refunds | 1,550,000 | 447,000 | 712,000 | 1,550,000 | ||||||||||||
Cash paid for operating leases | 2,472,000 | 2,574,000 | 2,647,000 | 2,472,000 | ||||||||||||
Cash paid for finance leases | 775,000 | 632,000 | 672,000 | 775,000 | ||||||||||||
Plant and equipment acquired under finance leases | 230,000 | 1,427,000 | 75,000 | 230,000 | ||||||||||||
Assets acquired under operating leases | 15,718,000 | 15,564,000 | 144,000 | 15,718,000 | ||||||||||||
Non-cash capital expenditures | 206,000 | 678,000 | 401,000 | 206,000 |
June 30, 2021 | March 31, 2021 | June 30, 2022 | March 31, 2022 | |||||||||||||
Accounts receivable — trade | $ | 67,212,000 | $ | 81,549,000 | $ | 94,087,000 | $ | 98,734,000 | ||||||||
Allowance for credit losses | (273,000 | ) | (348,000 | ) | (231,000 | ) | (375,000 | ) | ||||||||
Customer payment discrepancies | (797,000 | ) | (752,000 | ) | (1,418,000 | ) | (1,375,000 | ) | ||||||||
Customer returns RGA issued | (12,123,000 | ) | (17,327,000 | ) | (19,408,000 | ) | (11,909,000 | ) | ||||||||
Total accounts receivable — net | $ | 54,019,000 | $ | 63,122,000 | $ | 73,030,000 | $ | 85,075,000 |
Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Balance at beginning of period | $ | 348,000 | $ | 4,252,000 | $ | 375,000 | $ | 348,000 | ||||||||
Provision for expected credit losses | (36,000 | ) | 170,000 | 12,000 | (36,000 | ) | ||||||||||
Recoveries | 0 | (100,000 | ) | 0 | 0 | |||||||||||
Amounts written off charged against the allowance | (39,000 | ) | (3,897,000 | ) | (156,000 | ) | (39,000 | ) | ||||||||
Balance at end of period | $ | 273,000 | $ | 425,000 | $ | 231,000 | $ | 273,000 |
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 |
June 30, 2022 | March 31, 2022 | |||||||
Inventory | ||||||||
Raw materials | $ | 146,775,000 | $ | 150,414,000 | ||||
Work-in-process | 6,357,000 | 6,880,000 | ||||||
Finished goods | 248,332,000 | 226,729,000 | ||||||
401,464,000 | 384,023,000 | |||||||
Less allowance for excess and obsolete inventory | (12,704,000 | ) | (13,520,000 | ) | ||||
Inventory — net | 388,760,000 | 370,503,000 | ||||||
Inventory unreturned | 16,445,000 | 15,001,000 | ||||||
Total inventory | $ | 405,205,000 | $ | 385,504,000 |
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 |
June 30, 2022 | March 31, 2022 | |||||||
Short-term contract assets | ||||||||
Cores expected to be returned by customers | $ | 16,658,000 | $ | 15,778,000 | ||||
Upfront payments to customers | 460,000 | 517,000 | ||||||
Finished goods premiums paid to customers | 573,000 | 584,000 | ||||||
Core premiums paid to customers | 10,092,000 | 10,621,000 | ||||||
Total short-term contract assets | $ | 27,783,000 | $ | 27,500,000 | ||||
Remanufactured cores held at customers’ locations | $ | 257,379,000 | $ | 258,376,000 | ||||
Upfront payments to customers | 122,000 | 210,000 | ||||||
Finished goods premiums paid to customers | 2,685,000 | 2,806,000 | ||||||
Core premiums paid to customers | 41,198,000 | 43,294,000 | ||||||
Long-term core inventory deposits | 5,569,000 | 5,569,000 | ||||||
Total long-term contract assets | $ | 306,953,000 | $ | 310,255,000 |
Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Net sales | ||||||||||||||||
Customer A | 34 | % | 45 | % | 37 | % | 34 | % | ||||||||
Customer B | 20 | % | 26 | % | 25 | % | 20 | % | ||||||||
Customer C | 31 | % | 17 | % | 20 | % | 31 | % |
June 30, 2021 | March 31,2021 | June 30, 2022 | March 31,2022 | |||||||||||||
Accounts receivable - trade | ||||||||||||||||
Customer A | 43 | % | 50 | % | 43 | % | 42 | % | ||||||||
Customer B | 24 | % | 23 | % | 22 | % | 21 | % | ||||||||
Customer C | 1 | % | 0 | 0 | % | 9 | % |
Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Product line | ||||||||||||||||
Rotating electrical products | 67 | % | 72 | % | 67 | % | 67 | % | ||||||||
Wheel hub products | 14 | % | 18 | % | 12 | % | 14 | % | ||||||||
Brake related products | 16 | % | 9 | % | ||||||||||||
Brake-related products | 17 | % | 16 | % | ||||||||||||
Other products | 3 | % | 1 | % | 4 | % | 3 | % | ||||||||
100 | % | 100 | % | 100 | % | 100 | % |
June 30, 2021 | March 31, 2021 | June 30, 2022 | March 31, 2022 | |||||||||||||
Principal amount of Term Loans | $ | 19,687,000 | $ | 20,625,000 | $ | 15,937,000 | $ | 16,875,000 | ||||||||
Unamortized financing fees | (213,000 | ) | (161,000 | ) | (170,000 | ) | (181,000 | ) | ||||||||
Net carrying amount of Term Loans | 19,474,000 | 20,464,000 | 15,767,000 | 16,694,000 | ||||||||||||
Less current portion of Term Loans | (3,670,000 | ) | (3,678,000 | ) | (3,670,000 | ) | (3,670,000 | ) | ||||||||
Long-term portion of Term Loans | $ | 15,804,000 | $ | 16,786,000 | $ | 12,097,000 | $ | 13,024,000 |
Year Ending March 31, | ||||||||
2022 - remaining nine months | $ | 2,812,000 | ||||||
2023 | 3,750,000 | |||||||
2023 - remaining nine months | $ | 2,812,000 | ||||||
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 | |||||||
2027 | 1,875,000 | |||||||
Total payments | $ | 19,687,000 | $ | 15,937,000 |
June 30, 2021 | March 31, 2021 | |||||||
Short-term contract liabilities | ||||||||
Customer core returns accruals | $ | 12,350,000 | $ | 12,710,000 | ||||
Customer allowances earned | 17,298,000 | 16,513,000 | ||||||
Customer deposits | 2,735,000 | 2,234,000 | ||||||
Finished goods liabilities | 2,424,000 | 1,883,000 | ||||||
Core bank liability | 1,597,000 | 1,585,000 | ||||||
Accrued core payment, net | 4,584,000 | 6,147,000 | ||||||
Total short-term contract liabilities | $ | 40,988,000 | $ | 41,072,000 | ||||
Long-term contract liabilities | ||||||||
Customer core returns accruals | $ | 132,469,000 | $ | 103,719,000 | ||||
Customer allowances earned | 245,000 | 313,000 | ||||||
Finished goods liabilities | 2,668,000 | 2,678,000 | ||||||
Core bank liability | 16,499,000 | 16,903,000 | ||||||
Accrued core payment, net | 1,623,000 | 1,610,000 | ||||||
Total long-term contract liabilities | $ | 153,504,000 | $ | 125,223,000 |
June 30, 2022 | March 31, 2022 | |||||||
Short-term contract liabilities | ||||||||
Customer core returns accruals | $ | 17,533,000 | $ | 12,322,000 | ||||
Customer allowances earned | 18,698,000 | 22,018,000 | ||||||
Customer deposits | 2,507,000 | 3,306,000 | ||||||
Finished goods liabilities | 1,582,000 | 1,537,000 | ||||||
Core bank liability | 1,647,000 | 1,634,000 | ||||||
Accrued core payment | 1,678,000 | 1,679,000 | ||||||
Total short-term contract liabilities | $ | 43,645,000 | $ | 42,496,000 | ||||
Long-term contract liabilities | ||||||||
Customer core returns accruals | $ | 156,153,000 | $ | 154,940,000 | ||||
Customer allowances earned | 0 | 41,000 | ||||||
Finished goods liabilities | 1,202,000 | 1,588,000 | ||||||
Core bank liability | 14,851,000 | 15,267,000 | ||||||
Accrued core payment | 839,000 | 928,000 | ||||||
Total long-term contract liabilities | $ | 173,045,000 | $ | 172,764,000 |
Leases | Classification | June 30, 2021 | March 31, 2021 | Classification | June 30, 2022 | March 31, 2022 | |||||||||||||
Assets: | |||||||||||||||||||
Operating | Operating lease assets | $ | 87,924,000 | $ | 71,513,000 | Operating lease assets | $ | 80,157,000 | $ | 81,997,000 | |||||||||
Finance | Plant and equipment | 8,592,000 | 8,852,000 | Plant and equipment | 7,027,000 | 7,470,000 | |||||||||||||
Total leased assets | $ | 96,516,000 | $ | 80,365,000 | $ | 87,184,000 | $ | 89,467,000 | |||||||||||
Liabilities: | |||||||||||||||||||
Current | |||||||||||||||||||
Operating | Operating lease liabilities | $ | 5,434,000 | $ | 6,439,000 | Operating lease liabilities | $ | 6,653,000 | $ | 6,788,000 | |||||||||
Finance | Other current liabilities | 2,584,000 | 2,640,000 | Other current liabilities | 2,185,000 | 2,330,000 | |||||||||||||
Long-term | |||||||||||||||||||
Operating | Long-term operating lease liabilities | 85,889,000 | 70,551,000 | Long-term operating lease liabilities | 79,552,000 | 80,803,000 | |||||||||||||
Finance | Other liabilities | 4,606,000 | 4,995,000 | Other liabilities | 3,035,000 | 3,425,000 | |||||||||||||
Total lease liabilities | $ | 98,513,000 | $ | 84,625,000 | $ | 91,425,000 | $ | 93,346,000 |
Three Months Ended | ||||||||||||||||
June 30, | Three Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Lease cost | ||||||||||||||||
Operating lease cost | $ | 3,042,000 | $ | 2,683,000 | $ | 3,165,000 | $ | 3,042,000 | ||||||||
Short-term lease cost | 376,000 | 317,000 | 454,000 | 376,000 | ||||||||||||
Variable lease cost | 281,000 | 143,000 | 185,000 | 281,000 | ||||||||||||
Finance lease cost: | ||||||||||||||||
Amortization of finance lease assets | 499,000 | 413,000 | 539,000 | 499,000 | ||||||||||||
Interest on finance lease liabilities | 97,000 | 83,000 | 68,000 | 97,000 | ||||||||||||
Total lease cost | $ | 4,295,000 | $ | 3,639,000 | $ | 4,411,000 | $ | 4,295,000 |
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 | ||||||||||||||||||
2023 | 11,351,000 | 2,404,000 | 13,755,000 | |||||||||||||||||||||
2023 - remaining nine months | $ | 8,804,000 | $ | 1,884,000 | $ | 10,688,000 | ||||||||||||||||||
2024 | 9,968,000 | 1,610,000 | 11,578,000 | 10,073,000 | 1,762,000 | 11,835,000 | ||||||||||||||||||
2025 | 10,041,000 | 1,118,000 | 11,159,000 | 10,143,000 | 1,263,000 | 11,406,000 | ||||||||||||||||||
2026 | 10,320,000 | 432,000 | 10,752,000 | 10,358,000 | 570,000 | 10,928,000 | ||||||||||||||||||
2027 | 10,496,000 | 106,000 | 10,602,000 | |||||||||||||||||||||
Thereafter | 75,101,000 | 0 | 75,101,000 | 64,621,000 | 5,000 | 64,626,000 | ||||||||||||||||||
Total lease payments | 124,588,000 | 7,810,000 | 132,398,000 | 114,495,000 | 5,590,000 | 120,085,000 | ||||||||||||||||||
Less amount representing interest | (33,265,000 | ) | (620,000 | ) | (33,885,000 | ) | (28,290,000 | ) | (370,000 | ) | (28,660,000 | ) | ||||||||||||
Present value of lease liabilities | $ | 91,323,000 | $ | 7,190,000 | $ | 98,513,000 | $ | 86,205,000 | $ | 5,220,000 | $ | 91,425,000 |
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 | % |
June 30, 2022 | March 31, 2022 | |||||||
Lease term and discount rate | ||||||||
Weighted-average remaining lease term (years): | ||||||||
Finance leases | 2.8 | 2.9 | ||||||
Operating leases | 10.2 | 10.4 | ||||||
Weighted-average discount rate: | ||||||||
Finance leases | 5.1 | % | 5.1 | % | ||||
Operating leases | 5.7 | % | 5.7 | % |
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 |
Three Months Ended June 30, | ||||||||
2022 | 2021 | |||||||
Receivables discounted | $ | 142,624,000 | $ | 146,669,000 | ||||
Weighted average days | 327 | 329 | ||||||
Annualized weighted average discount rate | 3.7 | % | 1.8 | % | ||||
Amount of discount recognized as interest expense | $ | 4,874,000 | $ | 2,473,000 |
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 June 30, | ||||||||
2022 | 2021 | |||||||
Net (loss) income | $ | (175,000 | ) | $ | 861,000 | |||
Basic shares | 19,123,354 | 19,054,481 | ||||||
Effect of potentially dilutive securities | 0 | 604,576 | ||||||
Diluted shares | 19,123,354 | 19,659,057 | ||||||
Net (loss) income per share: | ||||||||
Basic net (loss) income per share | $ | (0.01 | ) | $ | 0.05 | |||
Diluted net (loss) income per share | $ | (0.01 | ) | $ | 0.04 |
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 | Three Months Ended | |||||||||||||||
Derivatives Not Designated as | Three Months Ended June 30, | June 30, | ||||||||||||||
Hedging Instruments | 2021 | 2020 | 2022 | 2021 | ||||||||||||
Forward foreign currency exchange contracts | $ | (262,000 | ) | $ | 2,832,000 | $ | (698,000 | ) | $ | (262,000 | ) |
June 30, 2021 | March 31, 2021 | June 30, 2022 | March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 1,995,000 | $ | 1,995,000 | $ | 0 | $ | 0 | $ | 2,202,000 | $ | 2,202,000 | $ | 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 | 415,000 | 0 | 415,000 | 0 | 1,113,000 | 0 | 1,113,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term contingent consideration | 850,000 | 0 | 0 | 850,000 | 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 | 1,995,000 | 1,995,000 | 0 | 0 | 2,202,000 | 2,202,000 | 0 | 0 |
Three Months Ended June 30, | ||||||||
Contingent Consideration | 2021 | 2020 | ||||||
Beginning balance | $ | 910,000 | $ | 2,653,000 | ||||
Changes in revaluations of contingent consideration included in earnings | (60,000 | ) | (47,000 | ) | ||||
Ending balance | $ | 850,000 | $ | 2,606,000 |
Number of Shares | Weighted Average Exercise Price | |||||||
Outstanding at March 31, 2021 | 1,744,885 | $ | 17.51 | |||||
Granted | 0 | $ | 0 | |||||
Exercised | (21,270 | ) | $ | 18.24 | ||||
Forfeited | (900 | ) | $ | 17.90 | ||||
Outstanding at June 30, 2021 | 1,722,715 | $ | 17.50 |
Number of Shares | Weighted Average Exercise Price | |||||||
Outstanding at March 31, 2022 | 1,695,499 | $ | 17.53 | |||||
Granted | 0 | $ | 0 | |||||
Exercised | (25,543 | ) | $ | 7.46 | ||||
Forfeited/Cancelled | (60,723 | ) | $ | 15.73 | ||||
Expired | (3,000 | ) | $ | 9.85 | ||||
Outstanding at June 30, 2022 | 1,606,233 | $ | 17.76 |
Number of Shares | Weighted Average Grant Date Fair Value | |||||||
Outstanding at March 31, 2021 | 354,484 | $ | 17.22 | |||||
Granted | 218,673 | $ | 22.27 | |||||
Vested | (59,483 | ) | $ | 16.62 | ||||
Forfeited | 0 | $ | 0 | |||||
Outstanding at June 30, 2021 | 513,674 | $ | 19.44 |
Number of Shares | Weighted Average Grant Date Fair Value | |||||||
Outstanding at March 31, 2022 | 399,063 | $ | 19.98 | |||||
Granted | 276,590 | $ | 13.14 | |||||
Vested | (149,313 | ) | $ | 20.63 | ||||
Forfeited/Cancelled | (41,293 | ) | $ | 20.72 | ||||
Outstanding at June 30, 2022 | 485,047 | $ | 15.82 |
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 |
Three Months Ended June 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 | 0 | 0 | ||||||
Grant date fair value | $ | 16.02 | $ | 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 | |||||||||||||
Outstanding at March 31, 2022 | 84,593 | $ | 23.19 | |||||||||||||
Granted | 84,593 | $ | 23.19 | 126,028 | $ | 14.00 | ||||||||||
Vested | 0 | $ | 0 | 0 | $ | 0 | ||||||||||
Forfeited | 0 | $ | 0 | 0 | $ | 0 | ||||||||||
Outstanding at June 30, 2021 | 84,593 | $ | 23.19 | |||||||||||||
Outstanding at June 30, 2022 | 210,621 | $ | 17.70 |
Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Balance at beginning of period | $ | 21,093,000 | $ | 18,300,000 | $ | 20,125,000 | $ | 21,093,000 | ||||||||
Charged to expense | 27,261,000 | 23,089,000 | 30,920,000 | 27,261,000 | ||||||||||||
Amounts processed | (28,344,000 | ) | (19,197,000 | ) | (33,177,000 | ) | (28,344,000 | ) | ||||||||
Balance at end of period | $ | 20,010,000 | $ | 22,192,000 | $ | 17,868,000 | $ | 20,010,000 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Cash flow (used in) provided by operations | $ | (4,739,000 | ) | $ | 22,388,000 | |||||||||||
Cash flow used in operations | $ | (982,000 | ) | $ | (4,739,000 | ) | ||||||||||
Finished goods turnover (annualized) (1) | 4.5 | 3.4 | 3.1 | 4.5 |
(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. |
Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Net sales | $ | 149,034,000 | $ | 95,356,000 | $ | 163,985,000 | $ | 149,034,000 | ||||||||
Cost of goods sold | 125,463,000 | 81,969,000 | 133,683,000 | 125,463,000 | ||||||||||||
Gross profit | 23,571,000 | 13,387,000 | 30,302,000 | 23,571,000 | ||||||||||||
Gross profit percentage | 15.8 | % | 14.0 | % | 18.5 | % | 15.8 | % |
Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
General and administrative | $ | 12,486,000 | $ | 11,687,000 | $ | 13,634,000 | $ | 12,486,000 | ||||||||
Sales and marketing | 5,368,000 | 4,200,000 | 5,542,000 | 5,368,000 | ||||||||||||
Research and development | 2,501,000 | 1,942,000 | 3,113,000 | 2,501,000 | ||||||||||||
Foreign exchange impact of lease liabilities and forward contracts | (2,533,000 | ) | (4,817,000 | ) | 678,000 | (2,533,000 | ) | |||||||||
Percent of net sales | ||||||||||||||||
General and administrative | 8.4 | % | 12.3 | % | 8.3 | % | 8.4 | % | ||||||||
Sales and marketing | 3.6 | % | 4.4 | % | 3.4 | % | 3.6 | % | ||||||||
Research and development | 1.7 | % | 2.0 | % | 1.9 | % | 1.7 | % | ||||||||
Foreign exchange impact of lease liabilities and forward contracts | (1.7 | )% | (5.1 | )% | 0.4 | % | (1.7 | )% |
Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Cash flows provided by (used in): | ||||||||||||||||
Cash flows (used in) provided by: | ||||||||||||||||
Operating activities | $ | (4,739,000 | ) | $ | 22,388,000 | $ | (982,000 | ) | $ | (4,739,000 | ) | |||||
Investing activities | (2,089,000 | ) | (3,038,000 | ) | (1,461,000 | ) | (2,089,000 | ) | ||||||||
Financing activities | 16,094,000 | (41,674,000 | ) | (11,266,000 | ) | 16,094,000 | ||||||||||
Effect of exchange rates on cash and cash equivalents | 94,000 | 172,000 | (90,000 | ) | 94,000 | |||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 9,360,000 | $ | (22,152,000 | ) | |||||||||||
Net (decrease) increase in cash and cash equivalents | $ | (13,799,000 | ) | $ | 9,360,000 | |||||||||||
Additional selected cash flow data: | ||||||||||||||||
Depreciation and amortization | $ | 3,145,000 | $ | 2,551,000 | $ | 3,124,000 | $ | 3,145,000 | ||||||||
Capital expenditures | 1,922,000 | 2,983,000 | 1,375,000 | 1,922,000 |
Financial covenants required under the Credit Facility | Calculation as of June 30, 2021 | Financial covenants required under the Credit Facility | Calculation as of June 30, 2022 | |||||||||
Maximum senior leverage ratio | 3.00 | 1.57 | 3.00 | 2.53 | ||||||||
Minimum fixed charge coverage ratio | 1.10 | 1.34 | 1.15 | 1.26 |
Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Receivables discounted | $ | 146,669,000 | $ | 111,360,000 | $ | 142,624,000 | $ | 146,669,000 | ||||||||
Weighted average days | 329 | 345 | 327 | 329 | ||||||||||||
Annualized weighted average discount rate | 1.8 | % | 2.5 | % | 3.7 | % | 1.8 | % | ||||||||
Amount of discount recognized as interest expense | $ | 2,473,000 | $ | 2,686,000 | $ | 4,874,000 | $ | 2,473,000 |
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: | ||||||||||||||||||||||||||||||||
April 1 - April 30, 2022: | ||||||||||||||||||||||||||||||||
Open market and privately negotiated purchases | - | $ | - | - | $ | 20,169,000 | - | $ | - | - | $ | 18,255,000 | ||||||||||||||||||||
May 1 - May 31, 2021: | ||||||||||||||||||||||||||||||||
May 1 - May 31, 2022: | ||||||||||||||||||||||||||||||||
Open market and privately negotiated purchases | - | $ | - | - | 20,169,000 | - | $ | - | - | 18,255,000 | ||||||||||||||||||||||
June 1 - June 30, 2021: | ||||||||||||||||||||||||||||||||
June 1 - June 30, 2022: | ||||||||||||||||||||||||||||||||
Open market and privately negotiated purchases | - | $ | - | - | 20,169,000 | - | $ | - | - | 18,255,000 | ||||||||||||||||||||||
Total | 0 | 0 | $ | 20,169,000 | 0 | 0 | $ | 18,255,000 |
(1) | As of June 30, |
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 | Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 | Filed herewith. | |||
4.2 | 2004 Non-Employee Director Stock Option Plan | ||||
2010 Incentive Award Plan | |||||
Amended and Restated 2010 Incentive Award Plan |
Number | Description of Exhibit | Method of Filing | |||
Second Amended and Restated 2010 Incentive Award Plan | |||||
2014 Non-Employee Director Incentive Award Plan | |||||
Third Amended and Restated 2010 Incentive Award Plan | |||||
Fourth Amended and Restated 2010 Incentive Award Plan | |||||
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: August 9, | By: | /s/ David Lee |
David Lee | ||
Chief Financial Officer | ||
Dated: August 9, | By: | /s/ Kamlesh Shah |
Kamlesh Shah | ||
Chief Accounting Officer |