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Motorcar Parts Of America Reports Fiscal 2013 Second Quarter

"Customer service and product quality remain the cornerstone of our organization, and we are gratified by the extraordinary commitment and contributions of our employees," Joffe emphasized.

Use of EBITDA

EBITDA does not reflect the impact of a number of items that affect the company's net income, including financing and acquisition-related costs. EBITDA is not a measure of financial performance under GAAP, and should not be considered as an alternative to net income or income from operations as a measure of performance, nor as alternative to net cash from operating activities as a measure of liquidity. EBITDA has significant limitations as an analytical tool, and should not be considered in isolation, or as a substitute for analysis of the company's results as reported under GAAP.  For a reconciliation of net income (loss) attributable to common shareholders to EBITDA, see the financial tables included in this press release.

Teleconference and Web Cast

Selwyn Joffe, chairman, president and chief executive officer, and David Lee, chief financial officer, will host an investor conference call today at 10:00 a.m. Pacific time to discuss the company's financial results and operations.

The call will be open to all interested investors either through a live audio Web broadcast at www.motorcarparts.com or live by calling (877)-776-4016 (domestic) or (973)-638-3231 (international). For those who are not available to listen to the live broadcast, the call will be archived for seven days on Motorcar Parts of America's website www.motorcarparts.com . A telephone playback of the conference call will also be available from approximately 1:00 p.m. Pacific time today through 8:59 p.m. Pacific time on Tuesday, December 25, 2012 by calling (855)-859-2056 (domestic) or (404)-537-3406 (international) and using access code: 78053906.

About Motorcar Parts of America

Motorcar Parts of America, Inc. is a remanufacturer of alternators and starters utilized in imported and domestic passenger vehicles, light trucks and heavy duty applications. The company also offers a broad line of under-the-car products – including brake, steering and clutch components. Motorcar Parts of America's products are sold to automotive retail outlets and the professional repair market throughout the United States and Canada, with remanufacturing facilities located in California, Mexico and Malaysia, and administrative offices located in California, Tennessee, Mexico, Canada, Singapore and Malaysia. Additional information is available at www.motorcarparts.com .

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the company's current expectations and beliefs concerning future developments and their potential effects on the company. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the company) and are subject to change based upon various factors. Reference is also made to the Risk Factors set forth in the company's Form 10-K Annual Report filed with the Securities and Exchange Commission (SEC) in September 2012 and in its Forms 10-Q filed with the SEC for additional risks and uncertainties facing the company. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.

(Financial tables follow)

 
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
         
  Three Months Ended Six Months Ended
  September 30,  September 30, 
  2012 2011 2012 2011
Net sales  $ 111,632,000  $ 107,616,000  $ 200,655,000  $ 178,126,000
Cost of goods sold  94,911,000  92,637,000  171,820,000  156,114,000
Gross profit  16,721,000  14,979,000  28,835,000  22,012,000
Operating expenses:        
General and administrative  11,193,000  11,309,000  22,757,000  19,618,000
Sales and marketing  3,904,000  3,197,000  7,443,000  5,650,000
Research and development  461,000  401,000  897,000  817,000
Acquisition costs  --   309,000  --   713,000
Total operating expenses  15,558,000  15,216,000  31,097,000  26,798,000
Operating income (loss)  1,163,000  (237,000)  (2,262,000)  (4,786,000)
Interest expense, net  6,162,000  3,389,000  11,246,000  5,303,000
Loss before income tax expense  (4,999,000)  (3,626,000)  (13,508,000)  (10,089,000)
Income tax expense  3,934,000  1,813,000  5,287,000  3,655,000
Net loss  $ (8,933,000)  $ (5,439,000)  $ (18,795,000)  $ (13,744,000)
Basic net loss per share  $ (0.62)  $ (0.44)  $ (1.32)  $ (1.11)
Diluted net loss per share  $ (0.62)  $ (0.44)  $ (1.32)  $ (1.11)
Weighted average number of shares outstanding:        
Basic 14,456,921 12,451,600 14,192,235 12,367,030
Diluted 14,456,921 12,451,600 14,192,235 12,367,030
 
 
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
     
  September 30, 2012 March 31, 2012
ASSETS (Unaudited)  
Current assets:    
Cash  $ 32,328,000  $ 32,617,000
Short-term investments   368,000  342,000
Accounts receivable — net   21,829,000  20,036,000
Inventory— net  82,731,000  95,071,000
Inventory unreturned   9,318,000  9,819,000
Deferred income taxes  3,638,000  3,793,000
Prepaid expenses and other current assets   5,596,000  6,553,000
Total current assets   155,808,000  168,231,000
Plant and equipment — net   12,892,000  12,738,000
Long-term core inventory — net   192,902,000  194,406,000
Long-term core inventory deposit   27,226,000  26,939,000
Long-term deferred income taxes  2,147,000  1,857,000
Goodwill   68,356,000  68,356,000
Intangible assets — net   21,399,000  22,484,000
Other assets   8,217,000  6,887,000
TOTAL ASSETS   $ 488,947,000  $ 501,898,000
LIABILITIES AND SHAREHOLDERS' EQUITY    
Current liabilities:     
Accounts payable   $ 116,830,000  $ 126,100,000
Accrued liabilities   23,749,000  19,379,000
Customer finished goods returns accrual   22,647,000  21,695,000
Other current liabilities   4,831,000  2,331,000
Current portion of term loan   1,700,000  500,000
Current portion of capital lease obligations   306,000  414,000
Total current liabilities   170,063,000  170,419,000
Term loan, less current portion   92,746,000  84,500,000
Revolving loan   42,089,000  48,884,000
Deferred core revenue   10,226,000  9,775,000
Customer core returns accrual   102,445,000  113,702,000
Other liabilities   2,779,000  751,000
Capital lease obligations, less current portion   124,000  248,000
Total liabilities   420,472,000  428,279,000
Commitments and contingencies     
Shareholders' equity:     
Preferred stock; par value $.01 per share, 5,000,000 shares authorized; none issued   --  --
Series A junior participating preferred stock; par value $.01 per share,  20,000 shares authorized; none issued   --  --
Common stock; par value $.01 per share, 20,000,000 shares authorized; 14,471,321 and 12,533,821 shares issued; 14,456,921 and 12,519,421 outstanding at September 30, 2012 and March 31, 2012, respectively   145,000  125,000
Treasury stock, at cost, 14,400 shares of common stock at September 30, 2012 and March 31, 2012, respectively   (89,000)  (89,000)
Additional paid-in capital   114,489,000  98,627,000
Additional paid-in capital-warrant  --   1,879,000
Accumulated other comprehensive loss   (1,236,000)  (884,000)
Accumulated deficit   (44,834,000)  (26,039,000)
Total shareholders' equity  68,475,000  73,619,000
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 488,947,000  $ 501,898,000

Reconciliation of Non-GAAP Financial Measures

To supplement the consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company has included the following non-GAAP adjusted financial measures in this press release or in the webcast to discuss the Company's financial results for the second quarter of fiscal year 2013. Each of these non-GAAP adjusted financial measures is adjusted from results based on GAAP to exclude certain expenses and gains.  Among other things, the Company uses such non-GAAP adjusted financial measures in addition to and in conjunction with corresponding GAAP measures to help analyze the performance of its business. 

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