Motorcar Parts of America Files Q2 2024 10-Q

TL;DR

MPAA files 10-Q for Q2 2025, showing assets and liabilities including convertible debt.

AI Summary

Motorcar Parts of America Inc. filed a 10-Q for the period ending September 30, 2024. The filing details their financial performance and position, including assets like Property, Plant, and Equipment Net, and liabilities such as Convertible Debt Noncurrent and Operating Lease Liability Current. The company is based in Torrance, California, and operates in the motor vehicle parts and accessories sector.

Why It Matters

This filing provides investors with a detailed look at Motorcar Parts of America's financial health and operational status for the second quarter of fiscal year 2025.

Risk Assessment

Risk Level: medium — The filing contains detailed financial information, including debt and lease liabilities, which are key factors in assessing a company's financial risk.

Key Numbers

• 03-31 — Fiscal Year End (Indicates the end of the company's annual accounting period.)
• 20240930 — Period End Date (The end date of the reporting period for this 10-Q filing.)

Key Players & Entities

• MOTORCAR PARTS OF AMERICA INC (company) — Filer
• 20240930 (date) — Reporting Period End Date
• 20241112 (date) — Filing Date
• 0000918251 (company) — Central Index Key
• 3714 (industry_code) — Standard Industrial Classification
• NY (state) — State of Incorporation
• 0331 (date) — Fiscal Year End
• 3109724015 (phone_number) — Business Phone
• 2929 CALIFORNIA STREET (address) — Business Address
• TORRANCE (city) — Business City

FAQ

Key Financial Figures

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

Filing Documents

• ef20034575_10q.htm (10-Q) — 1900KB
• ef20034575_ex31-1.htm (EX-31.1) — 6KB
• ef20034575_ex31-2.htm (EX-31.2) — 6KB
• ef20034575_ex31-3.htm (EX-31.3) — 6KB
• ef20034575_ex32-1.htm (EX-32.1) — 10KB
• 0001140361-24-046159.txt ( ) — 9964KB
• mpaa-20240930.xsd (EX-101.SCH) — 65KB
• mpaa-20240930_cal.xml (EX-101.CAL) — 109KB
• mpaa-20240930_def.xml (EX-101.DEF) — 258KB
• mpaa-20240930_lab.xml (EX-101.LAB) — 847KB
• mpaa-20240930_pre.xml (EX-101.PRE) — 482KB
• ef20034575_10q_htm.xml (XML) — 2005KB

— 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 24

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 34

Controls and Procedures

Item 4. Controls and Procedures 34

— OTHER INFORMATION

PART II — OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 35

Risk Factors

Item 1A. Risk Factors 35

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 35

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 35

Other Information

Item 5. Other Information 35

Exhibits

Item 6. Exhibits 36

SIGNATURES

SIGNATURES 39 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 sto

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets September 30, 2024 March 31, 2024 ASSETS (Unaudited) Current assets: Cash and cash equivalents $ 10,413,000 $ 13,974,000 Short-term investments 1,901,000 1,837,000 Accounts receivable — net 112,699,000 96,296,000 Inventory — net 378,776,000 397,328,000 Contract assets 24,956,000 27,139,000 Prepaid expenses and other current assets 19,457,000 23,885,000 Total current assets 548,202,000 560,459,000 Plant and equipment — net 32,561,000 38,338,000 Operating lease assets 71,792,000 83,973,000 Long-term deferred income taxes 5,637,000 2,976,000 Long-term contract assets 321,303,000 320,282,000 Goodwill and intangible assets — net 3,984,000 4,274,000 Other assets 2,763,000 1,700,000 TOTAL ASSETS $ 986,242,000 $ 1,012,002,000 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 168,548,000 $ 185,182,000 Customer finished goods returns accrual 37,495,000 38,312,000 Contract liabilities 45,517,000 37,591,000 Revolving loan 124,691,000 128,000,000 Other current liabilities 8,419,000 7,021,000 Operating lease liabilities 9,272,000 8,319,000 Total current liabilities 393,942,000 404,425,000 Convertible notes, related party 32,340,000 30,776,000 Long-term contract liabilities 219,891,000 212,068,000 Long-term deferred income taxes 573,000 511,000 Long-term operating lease liabilities 69,419,000 72,240,000 Other liabilities 6,114,000 6,872,000 Total liabilities 722,279,000 726,892,000 Commitments and contingencies Shareholders' equity: Preferred stock; par value $ 0.01 per share, 5,000,000 shares authorized; none issued - - Series A junior participating preferred stock; par value $ 0.01 per share, 20,000 shares authorized; none issued - - Common stock; par value $ 0

View Full Filing

View this 10-Q filing on SEC EDGAR