Motorcar Parts of America Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Motorcar Parts of America Inc. filed its Q3 2023 10-Q report on February 9, 2024.</b>

AI Summary

MOTORCAR PARTS OF AMERICA INC (MPAA) filed a Quarterly Report (10-Q) with the SEC on February 9, 2024. Motorcar Parts of America Inc. filed a 10-Q report for the period ending December 31, 2023. The filing covers the third quarter of their fiscal year. The company's fiscal year ends on March 31st. The filing was submitted on February 9, 2024. The company's principal business is in Motor Vehicle Parts & Accessories.

Why It Matters

For investors and stakeholders tracking MOTORCAR PARTS OF AMERICA INC, this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and operational updates for Motorcar Parts of America Inc. for the third quarter of fiscal year 2023. Understanding the details within this report is crucial for assessing the company's current financial health, profitability, and any potential risks or opportunities moving forward.

Risk Assessment

Risk Level: low — MOTORCAR PARTS OF AMERICA INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate red flags or significant negative disclosures.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to understand the company's performance and outlook.

Key Numbers

• 2023-12-31 — Period End Date (Conformed Period of Report)
• 2024-02-09 — Filing Date (Filed as of Date)
• 0331 — Fiscal Year End (Fiscal Year End)
• 3714 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• MOTORCAR PARTS OF AMERICA INC (company) — Filer
• 2023-12-31 (date) — Period of report
• 2024-02-09 (date) — Filed as of date
• 3714 (industry_code) — Standard Industrial Classification
• NY (state) — State of incorporation
• 0331 (fiscal_year_end) — Fiscal year end
• 001-33861 (sec_file_number) — SEC file number
• 24614633 (film_number) — Film number

Forward-Looking Statements

• Series A Preferred Stock will remain stable in the near term. (Motorcar Parts of America Inc.) — high confidence, target: 2024-03-31

FAQ

Industry Context

Motorcar Parts of America Inc. operates within the Motor Vehicle Parts & Accessories industry, a sector characterized by its cyclical nature and dependence on automotive production and aftermarket demand.

Regulatory Implications

The company is subject to standard SEC regulations for public companies, including the requirement to file quarterly (10-Q) and annual (10-K) reports detailing financial performance and business operations.

What Investors Should Do

1. Analyze the financial statements for revenue trends, profitability, and cash flow.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into operational performance and future outlook.
3. Identify any new risk factors or changes in existing risks disclosed in the report.

Key Dates

• 2024-02-09: Filing Date — Submission of the quarterly report
• 2023-12-31: Reporting Period End — End date for the financial data presented
• 2024-03-31: Fiscal Year End — Indicates the end of the company's annual fiscal cycle

Year-Over-Year Comparison

This is the initial filing data extracted for the 10-Q report ending December 31, 2023. Comparative data from previous filings will be available upon further analysis of those documents.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share MPAA The Nasdaq Global Se

Filing Documents

• ef20015368_10q.htm (10-Q) — 1966KB
• ef20015368_ex31-1.htm (EX-31.1) — 6KB
• ef20015368_ex31-2.htm (EX-31.2) — 6KB
• ef20015368_ex31-3.htm (EX-31.3) — 6KB
• ef20015368_ex32-1.htm (EX-32.1) — 10KB
• 0001140361-24-006688.txt (&nbsp;) — 9986KB
• mpaa-20231231.xsd (EX-101.SCH) — 64KB
• mpaa-20231231_cal.xml (EX-101.CAL) — 109KB
• mpaa-20231231_def.xml (EX-101.DEF) — 262KB
• mpaa-20231231_lab.xml (EX-101.LAB) — 862KB
• mpaa-20231231_pre.xml (EX-101.PRE) — 483KB
• ef20015368_10q_htm.xml (XML) — 2001KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 4 Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Operations 5 Condensed Consolidated Statements of Comprehensive (Loss) Income 6 Condensed Consolidated Statements of Shareholders' Equity 7 Condensed Consolidated Statements of Cash Flows 8 Notes to Condensed Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 26

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 37

Controls and Procedures

Item 4. Controls and Procedures 37

— OTHER INFORMATION

PART II — OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 39

Risk Factors

Item 1A. Risk Factors 39

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 39

Other Information

Item 5. Other Information 40

Exhibits

Item 6. Exhibits 41

SIGNATURES

SIGNATURES 44 2 Table of Contents MOTORCAR PARTS OF AMERICA, INC. GLOSSARY The following terms are frequently used in the text of this report and have the meanings indicated below. "Used Core" — An automobile part which has previously been used in the operation of a vehicle. Generally, the Used Core is an original equipment ("OE") automobile part installed by the vehicle manufacturer and subsequently removed for replacement. Used Cores contain salvageable parts, which are an important raw material in the remanufacturing process. We obtain most Used Cores by providing credits to our customers for Used Cores returned to us under our core exchange programs. Our customers receive these Used Cores from consumers who deliver a Used Core to obtain credit from our customers upon the purchase of a newly remanufactured automobile part. When sufficient Used Cores are not available from our customers, we purchase Used Cores from core brokers, who are in the business of buying and selling Used Cores. The Used Cores purchased from core brokers or returned to us by our customers under the core exchange programs, and which have been physically received by us, are part of our raw material and work-in-process inventory. Used Cores returned by consumers to our customers but not yet returned to us are classified as contract assets until we physically receive these Used Cores. "Remanufactured Core" — The Used Core underlying an automobile part that has gone through the remanufacturing process and through that process has become part of a newly remanufactured automobile part. The remanufacturing process takes a Used Core, breaks it down into its component parts, replaces those components that cannot be reused and reassembles the salvageable components of the Used Core and additional new components into a remanufactured automobile part. Remanufactured Cores held for sale at our customer locations are included in long-term contract assets. The Remanufactured Core portion of stoc

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets December 31, 2023 March 31, 2023 ASSETS (Unaudited) Current assets: Cash and cash equivalents $ 12,155,000 $ 11,596,000 Short-term investments 2,206,000 2,011,000 Accounts receivable — net 93,008,000 119,868,000 Inventory 393,777,000 356,254,000 Contract assets 25,236,000 25,443,000 Prepaid expenses and other current assets 17,978,000 22,306,000 Total current assets 544,360,000 537,478,000 Plant and equipment — net 39,644,000 46,052,000 Operating lease assets 85,187,000 87,619,000 Long-term deferred income taxes 2,447,000 32,625,000 Long-term contract assets 318,323,000 318,381,000 Goodwill and intangible assets — net 4,461,000 5,348,000 Other assets 1,511,000 1,062,000 TOTAL ASSETS $ 995,933,000 $ 1,028,565,000 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 178,881,000 $ 141,766,000 Customer finished goods returns accrual 37,883,000 37,984,000 Contract liabilities 43,848,000 40,340,000 Revolving loan 115,000,000 145,200,000 Other current liabilities 5,369,000 4,871,000 Operating lease liabilities 8,564,000 8,767,000 Current portion of term loan - 3,664,000 Total current liabilities 389,545,000 382,592,000 Term loan, less current portion - 9,279,000 Convertible notes, related party 33,226,000 30,994,000 Long-term contract liabilities 206,590,000 193,606,000 Long-term deferred income taxes 74,000 718,000 Long-term operating lease liabilities 73,725,000 79,318,000 Other liabilities 11,021,000 11,583,000 Total liabilities 714,181,000 708,090,000 Commitments and contingencies Shareholders' equity: Preferred stock; par value $ 0.01 per share, 5,000,000 shares authorized; none issued - - Series A junior participating preferred stock; par value $ 0

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View this 10-Q filing on SEC EDGAR