Sign In  |  Register  |  About Mill Valley  |  Contact Us

Mill Valley, CA
September 01, 2020 1:29pm
7-Day Forecast | Traffic
  • Search Hotels in Mill Valley

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Motorcar Parts of America Reports Fiscal 2022 Third Quarter Results

Record net sales up 32 percent for the quarter and 31 percent for nine months

Motorcar Parts of America, Inc. (Nasdaq: MPAA) today reported results for its fiscal 2022 third quarter ended December 31, 2021.

Fiscal Third Quarter Highlights

  • Record net sales of $161.8 million versus $122.6 million a year earlier, reflecting strong organic growth and favorable industry dynamics.
  • Net income of $3.1 million, or $0.16 per diluted share, compared with $8.5 million, or $0.44 per diluted share a year ago. Net income for the fiscal third quarter of 2022 was impacted by $4.8 million of non-cash items, or $0.25 per diluted share, and $3.7 million, or $0.19 per diluted share, due to transitory cost pressures related to supply chain disruptions.
  • EBITDA of $11.9 million, which was impacted by $6.4 million of non-cash items and $4.9 million of transitory cost pressures related to the aforementioned supply chain disruptions. EBITDA in the prior-year period was $18.8 million.

“We delivered record net sales for the quarter and nine months despite continued global supply chain constraints. This is indicative of the strategic success of our organic growth initiatives and sustainable industry tailwinds from an aging car fleet, driving continuously greater demand for parts replacement. We achieved growth across all product categories and increased momentum in our emerging brake caliper business,” said Selwyn Joffe, chairman, president, and chief executive officer.

“While industry dynamics remain positive, we continue to operate in a challenging supply chain environment. We have taken concrete measures to mitigate increases in freight rates, inflationary costs, and wage increases by implementing freight surcharges and price increases. We expect these initiatives to be in effect in the fiscal first quarter ending June 30, 2022. In addition to these measures, we have resumed production in Malaysia -- allowing for elimination of the temporary higher tariff expenses incurred during recent months due to necessary outsourcing of production to countries subject to higher import tariffs. Lastly, we are focused on the safety and well-being of our employees. It is a testament of our employees’ commitment that more than 93 percent globally have been vaccinated, helping mitigate operational risk,” Joffe said.

“Our business is strong. We have numerous multi-year strategic growth initiatives underway, including our growth strategy in the electric vehicle market. As the EV market continues to gain momentum, we will benefit from increased demand for battery power emulation, testing and development of inverters, electric motors, and high-speed battery-charging station applications offered by our wholly owned D&V subsidiary,” Joffe added.

Fiscal Third Quarter 2022 Financial Results

  • Net sales for the fiscal 2022 third quarter increased 32 percent to a record $161.8 million from $122.6 million in the prior-year period – reflecting the success of our strategic growth initiatives, growth across all product lines, and continued tailwinds in the automotive aftermarket parts industry.
  • Net income for the fiscal 2022 third quarter was $3.1 million, or $0.16 per diluted share, compared with $8.5 million, or $0.44 per diluted share, a year ago. Net income was impacted by approximately $4.8 million, or $0.25 per diluted share, of non-cash items – including core and finished goods premium amortization, revaluation of cores on customer shelves, and share-based compensation, as detailed in Exhibit 1. The company also incurred an impact of approximately $3.7 million, or $0.19 per diluted share, due to increased shipping rates, higher relative tariffs, and other transitory cost pressures related to supply chain disruptions due to COVID-19. Freight surcharges and price increases to offset these expenses are expected to take effect in the fourth quarter of fiscal 2022 to mitigate these headwinds.



    Net income for the prior-year third quarter was impacted favorably by $6.1 million of non-cash items, or $0.31 per diluted share, including a non-cash gain from the foreign exchange impact of lease liabilities and forward contracts of $12.5 million, or $0.64 per diluted share on a pre-tax basis. Cash impacts to net income for the prior-year period totaled $4.3 million, or $0.22 per diluted share, due to brake caliper start-up costs, product relocation expenses related to the expansion in Mexico, and other costs associated with COVID-19.
  • Gross profit for the fiscal 2022 third quarter increased 34.4 percent to $32.6 million from $24.2 million a year earlier. Gross profit as a percentage of net sales for the fiscal 2022 third quarter was 20.1 percent compared with 19.8 percent a year earlier. Gross margin for the fiscal 2022 third quarter was impacted by 2.5 percent by the aforementioned non-cash items and 2.7 percent by the transitory supply chain disruptions that affected net income, as detailed in Exhibit 3.
  • EBITDA for the fiscal 2022 third quarter was $11.9 million. EBITDA was impacted by $6.4 million of non-cash items, as well as by $4.9 million in cash items from the transitory cost pressures related to supply chain disruptions. For the comparable prior-year period, EBITDA was $18.8 million, favorably impacted by $8.1 million of non-cash items, particularly related to foreign exchange items and unfavorably impacted by $5.7 million of cash expenses – primarily related to the company’s successful new brake caliper product line expansion, as detailed in Exhibit 5.
  • Net cash provided by operating activities was $2.2 million for the fiscal 2022 third quarter.
  • Net debt was $122.9 million at December 31, 2021 compared with $120.6 million at September 30, 2021 – reflecting share buy backs, working capital, including inventory increases to support business growth, and strategic investments designed to address potential supply chain disruptions.

Fiscal 2022 Nine-Month Results

  • Net sales increased 31 percent to a record $486.4 million from $372.7 million a year earlier. Net sales included $13.3 million in core revenue compared with $12.8 million in the prior-year period, due to a realignment of inventory at customer distribution centers with expected future sales benefits as product mix changes.
  • Net income for the fiscal 2022 nine-month period was $7.7 million, or $0.39 per diluted share, compared with net income of $20.6 million, or $1.07 per diluted share, a year ago. Net income was impacted by approximately $14.9 million, or $0.76 per diluted share, of non-cash items – including core and finished goods premium amortization, revaluation of cores on customer shelves, share-based compensation, and foreign exchange impacts, as detailed in Exhibit 2. The company also incurred an impact of approximately $10.8 million, or $0.55 per diluted share, from supply chain disruptions, brake caliper start-up costs, and other product relocation expenses related to the expansion in Mexico. The start-up costs related to the expansion in Mexico, primarily brake calipers, were realized during the six months ended September 30, 2021, and no costs were incurred during the fiscal 2022 third quarter. In addition, results for the nine-month period were impacted by other transitory cost pressures related to supply chain disruptions due to COVID-19.



    Net income for the prior-year nine months was impacted favorably by $7.0 million of non-cash items, or $0.36 per diluted share. Cash impacts to net income for the prior-year period totaled $8.2 million, or $0.42 per diluted share, due to brake caliper start-up costs, product relocation expenses related to the expansion in Mexico, and other costs associated with COVID-19.
  • Gross Profit for the fiscal 2022 nine-month period increased 19.1 percent to $92.1 million from $77.4 million a year earlier. Gross profit as a percentage of net sales for the fiscal 2022 nine-month period was 18.9 percent compared with 20.8 percent a year earlier. Gross margin for the nine-month period ended December 31, 2021 was impacted by 2.6 percent of non-cash items and 3.1 percent, primarily by the transitory supply chain disruptions that affected net income, as detailed in Exhibit 4.
  • EBITDA for the fiscal 2022 nine-month period was $33.6 million. EBITDA was impacted by $19.9 million of non-cash items, as well as the impact of $14.2 million primarily from transitory cost pressures related to supply chain disruptions. For the comparable prior-year period, EBITDA was $49.3 million, favorably impacted by $9.3 million of non-cash items, particularly due to foreign exchange items, and unfavorably impacted by $10.6 million of cash items, primarily related to the company’s successful new brake caliper product line expansion, and other costs associated with COVID-19, as detailed in Exhibit 5.
  • Net cash used in operating activities was $22.2 million during the nine months ended December 31, 2021, reflecting working capital, including inventory increases to support business growth and strategic investments designed to address potential supply chain disruptions.

Use of Non-GAAP Measure

This press release includes the following non-GAAP measure - EBITDA, which is not a measure of financial performance under GAAP and should not be considered as an alternative to net income as a measure of financial performance. The company believes this non-GAAP measure, when considered together with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to the company’s results of operations. However, this non-GAAP measure has significant limitations in that it does not reflect all the costs and other items associated with the operation of the company’s business as determined in accordance with GAAP. In addition, the company’s non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, measures of financial performance in accordance with GAAP. For a reconciliation of EBITDA to its corresponding GAAP measures, see the financial tables included in this press release. Also, refer to our Form 8-K to which this release is attached, and other filings we make with the SEC, for further information regarding these measures.

Earnings Conference Call and Webcast

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 webcast at www.motorcarparts.com or live by calling (888)-440-5584 (domestic) or (646)-960-0457 (international). For those who are not available to listen to the live broadcast, the call will be archived 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 on February 9, 2022 through 8:59 p.m. Pacific time on February 16, 2022 by calling (800)-770-2030 (domestic) or (647)-362-9199 (international) and using access code: 1545314.

About Motorcar Parts of America, Inc.

Motorcar Parts of America, Inc. is a remanufacturer, manufacturer, and distributor of automotive aftermarket parts -- including alternators, starters, wheel bearings and hub assemblies, brake calipers, brake master cylinders, brake power boosters, turbochargers, and diagnostic testing equipment utilized in imported and domestic passenger vehicles, light trucks, and heavy-duty applications. Its products are sold to automotive retail outlets and the professional repair market throughout the United States, Canada, and Mexico, with facilities located in California, New York, Mexico, Malaysia, China and India, and administrative offices located in California, Tennessee, Mexico, Singapore, Malaysia, and Canada. In addition, the company’s electrical vehicle subsidiary designs and manufactures testing solutions for performance, endurance, and production of multiple components in the electric power train – providing simulation, emulation, and production applications for the electrification of both automotive and aerospace industries, including electric vehicle charging systems. 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 June 2021 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 Operations

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

December 31,

 

December 31,

 

 

2021

 

2020

 

2021

 

2020

 
 
Net sales

$

161,810,000

$

122,568,000

 

$

486,392,000

$

372,654,000

 

Cost of goods sold

 

129,235,000

 

98,327,000

 

 

394,295,000

 

295,300,000

 

Gross profit

 

32,575,000

 

24,241,000

 

 

92,097,000

 

77,354,000

 

Operating expenses:
General and administrative

 

14,605,000

 

14,005,000

 

 

41,556,000

 

38,210,000

 

Sales and marketing

 

6,274,000

 

4,698,000

 

 

17,162,000

 

13,224,000

 

Research and development

 

2,635,000

 

2,100,000

 

 

7,631,000

 

6,014,000

 

Foreign exchange impact of lease liabilities and forward contracts

 

385,000

 

(12,455,000

)

 

1,769,000

 

(21,257,000

)

Total operating expenses

 

23,899,000

 

8,348,000

 

 

68,118,000

 

36,191,000

 

Operating income

 

8,676,000

 

15,893,000

 

 

23,979,000

 

41,163,000

 

Interest expense, net

 

3,949,000

 

4,051,000

 

 

11,510,000

 

12,074,000

 

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

 

19,184,339

 

19,053,232

 

 

19,124,824

 

19,016,302

 

Diluted

 

19,544,174

 

19,436,793

 

 

19,604,780

 

19,333,758

 

 

MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

 

 

 

 

 

 

 

December 31, 2021

 

March 31, 2021

ASSETS

(Unaudited)

Current assets:
Cash and cash equivalents

$

7,769,000

 

$

15,523,000

 

Short-term investments

 

2,212,000

 

 

1,652,000

 

Accounts receivable — net

 

57,691,000

 

 

63,122,000

 

Inventory

 

358,738,000

 

 

302,913,000

 

Contract assets

 

26,609,000

 

 

26,940,000

 

Prepaid expenses and other current assets

 

11,743,000

 

 

12,706,000

 

Total current assets

 

464,762,000

 

 

422,856,000

 

Plant and equipment — net

 

50,636,000

 

 

53,854,000

 

Operating lease assets

 

82,029,000

 

 

71,513,000

 

Long-term deferred income taxes

 

20,255,000

 

 

19,381,000

 

Long-term contract assets

 

311,756,000

 

 

270,213,000

 

Goodwill and intangible assets — net

 

7,341,000

 

 

8,534,000

 

Other assets

 

1,501,000

 

 

1,531,000

 

TOTAL ASSETS

$

938,280,000

 

$

847,882,000

 

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities

$

149,314,000

 

$

152,735,000

 

Customer finished goods returns accrual

 

37,333,000

 

 

31,524,000

 

Contract liabilities

 

40,190,000

 

 

41,072,000

 

Revolving loan

 

113,000,000

 

 

84,000,000

 

Other current liabilities

 

6,708,000

 

 

6,683,000

 

Operating lease liabilities

 

6,444,000

 

 

6,439,000

 

Current portion of term loan

 

3,670,000

 

 

3,678,000

 

Total current liabilities

 

356,659,000

 

 

326,131,000

 

Term loan, less current portion

 

13,951,000

 

 

16,786,000

 

Long-term contract liabilities

 

165,599,000

 

 

125,223,000

 

Long-term deferred income taxes

 

75,000

 

 

73,000

 

Long-term operating lease liabilities

 

82,287,000

 

 

70,551,000

 

Other liabilities

 

6,589,000

 

 

7,973,000

 

Total liabilities

 

625,160,000

 

 

546,737,000

 

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, 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

 

225,319,000

 

 

223,058,000

 

Retained earnings

 

93,276,000

 

 

85,593,000

 

Accumulated other comprehensive loss

 

(5,666,000

)

 

(7,696,000

)

Total shareholders' equity

 

313,120,000

 

 

301,145,000

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

938,280,000

 

$

847,882,000

 

 

Additional Information and 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 additional information and non-GAAP financial measures for the three and nine months ended December 31, 2021 and 2020. Among other things, the company uses such additional information and non-GAAP adjusted financial measures in addition to and together with corresponding GAAP measures to help analyze the performance of its business.

The company believes this information helps provide a more complete understanding of the company's results of operations and the factors and trends affecting the company's business. However, this information should be considered as a supplement to, and not as a substitute for, or superior to, information contained in the company’s financial statements prepared in accordance with GAAP. In addition, the company’s non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies.

The company defines EBITDA as earnings before interest, taxes, depreciation, and amortization. A reconciliation of EBITDA to net income is provided below along with information regarding such items.

Items Impacting Net Income for the Three Months Ended December 31, 2021 and 2020

Exhibit 1

 

Three Months Ended December 31,

2021

 

2020

$

 

Per Share

 

$

 

Per Share

GAAP net income

$

3,139,000

 

$

0.16

 

$

8,469,000

 

$

0.44

 

 
Non-cash items impacting net income
Core and finished goods premium amortization and new business return accruals

$

3,146,000

 

$

0.16

 

$

1,528,000

 

$

0.08

 

Revaluation - cores on customers' shelves

 

846,000

 

 

0.04

 

 

1,304,000

 

 

0.07

 

Share-based compensation expenses and earn-out accruals

 

2,030,000

 

 

0.10

 

 

1,542,000

 

 

0.08

 

Foreign exchange impact of lease liabilities and forward contracts

 

385,000

 

 

0.02

 

 

(12,455,000

)

 

(0.64

)

Tax effect (a)

 

(1,602,000

)

 

(0.08

)

 

2,020,000

 

 

0.10

 

Total non-cash items impacting net income

$

4,805,000

 

$

0.25

 

$

(6,061,000

)

$

(0.31

)

 
Cash items impacting net income
Impact of tariffs

$

-

 

$

-

 

$

(688,000

)

$

(0.04

)

New product line start-up costs and transition expenses (b)

 

-

 

 

-

 

 

4,550,000

 

 

0.23

 

Supply chain disruptions and costs related to COVID-19 (c)

 

4,935,000

 

 

0.25

 

 

1,933,000

 

 

0.10

 

Tax effect (a)

 

(1,234,000

)

 

(0.06

)

 

(1,449,000

)

 

(0.07

)

Total cash items impacting net income

$

3,701,000

 

$

0.19

 

$

4,346,000

 

$

0.22

 

(a)

Tax effect is calculated by applying an income tax rate of 25.0% to items listed above; this rate may differ from the period's actual income tax rate.

(b)

For the three-months ended December 31, 2020, consists of $4,217,000 included in cost of goods sold and $333,000 included in operating expenses.

(c)

For the three-months ended December 31, 2021, consists of $4,344,000 impacting gross profit and $591,000 included in operating expenses.

For the three-months ended December 31, 2020, consists of $1,375,000 impacting gross profit and $558,000 included in operating expenses.

 

Items Impacting Net Income for the Nine Months Ended December 31, 2021 and 2020

Exhibit 2

 

Nine Months Ended December 31,

2021

 

2020

$

 

Per Share

 

$

 

Per Share

GAAP net income

$

7,683,000

 

$

0.39

 

$

20,641,000

 

$

1.07

 

 
Non-cash items impacting net income
Core and finished goods premium amortization and new business return accruals

$

9,013,000

 

$

0.46

 

$

4,576,000

 

$

0.24

 

Revaluation - cores on customers' shelves

 

3,517,000

 

 

0.18

 

 

3,580,000

 

 

0.19

 

Share-based compensation expenses and earn-out accruals

 

5,554,000

 

 

0.28

 

 

3,778,000

 

 

0.20

 

Foreign exchange impact of lease liabilities and forward contracts

 

1,769,000

 

 

0.09

 

 

(21,257,000

)

 

(1.10

)

Tax effect (a)

 

(4,963,000

)

 

(0.25

)

 

2,331,000

 

 

0.12

 

Total non-cash items impacting net income

$

14,890,000

 

$

0.76

 

$

(6,992,000

)

$

(0.36

)

 
Cash items impacting net income
Impact of tariffs

$

-

 

$

-

 

$

(3,535,000

)

$

(0.18

)

New product line start-up costs and transition expenses (b)

 

3,067,000

 

 

0.16

 

 

12,564,000

 

 

0.65

 

Gain due to realignment of inventory at customer distribution centers

 

(4,862,000

)

 

(0.25

)

 

(4,391,000

)

 

(0.23

)

Supply chain disruptions and costs related to COVID-19 (c)

 

16,257,000

 

 

0.83

 

 

6,276,000

 

 

0.32

 

Tax effect (a)

 

(3,616,000

)

 

(0.18

)

 

(2,729,000

)

 

(0.14

)

Total cash items impacting net income

$

10,846,000

 

$

0.55

 

$

8,185,000

 

$

0.42

 

(a)

Tax effect is calculated by applying an income tax rate of 25.0% to items listed above; this rate may differ from the period's actual income tax rate.

(b)

For the nine-months ended December 31, 2021, consists of $2,744,000 included in cost of goods sold and $323,000 included in operating expenses.

 

For the nine-months ended December 31, 2020, consists of $11,572,000 included in cost of goods sold and $992,000 included in operating expenses.

(c)

For the nine-months ended December 31, 2021, consists of $14,557,000 impacting gross profit and $1,700,000 included in operating expenses.

For the nine-months ended December 31, 2020, consists of $4,748,000 impacting gross profit and $1,528,000 included in operating expenses.

 

Items Impacting Gross Profit for the Three Months Ended December 31, 2021 and 2020

Exhibit 3

 

Three Months Ended December 31,

2021

 

2020

$

 

Gross Margin

 

$

 

Gross Margin

GAAP gross profit

$

32,575,000

20.1

%

$

24,241,000

 

19.8

%

 
Non-cash items impacting gross profit
Core and finished goods premium amortization and new business return accruals

$

3,146,000

1.9

%

$

1,528,000

 

1.2

%

Revaluation - cores on customers' shelves

 

846,000

0.5

%

 

1,304,000

 

1.1

%

Total non-cash items impacting gross profit

$

3,992,000

2.5

%

$

2,832,000

 

2.3

%

 
Cash items impacting gross profit
Impact of tariffs

$

-

-

 

$

(688,000

)

-0.6

%

New product line start-up costs and transition expenses

 

-

-

 

 

4,217,000

 

3.4

%

Supply chain disruptions and costs related to COVID-19

 

4,344,000

2.7

%

 

1,375,000

 

1.1

%

Total cash items impacting gross profit

$

4,344,000

2.7

%

$

4,904,000

 

4.0

%

 

Items Impacting Gross Profit for the Nine Months Ended December 31, 2021 and 2020

Exhibit 4

 

Nine Months Ended December 31,

2021

 

2020

$

 

Gross Margin

 

$

 

Gross Margin

GAAP gross profit

$

92,097,000

 

18.9

%

$

77,354,000

 

20.8

%

 
Non-cash items impacting gross profit
Core and finished goods premium amortization and new business return accruals

$

9,013,000

 

1.9

%

$

4,576,000

 

1.2

%

Revaluation - cores on customers' shelves

 

3,517,000

 

0.7

%

 

3,580,000

 

1.0

%

Total non-cash items impacting gross profit

$

12,530,000

 

2.6

%

$

8,156,000

 

2.2

%

 
Cash items impacting gross profit
Impact of tariffs

$

-

 

-

 

$

(3,535,000

)

-0.9

%

New product line start-up costs and transition expenses

 

2,744,000

 

0.6

%

 

11,572,000

 

3.1

%

Gain due to realignment of inventory at customer distribution centers (a)

 

(4,862,000

)

-0.5

%

 

(4,391,000

)

-0.5

%

Supply chain disruptions and costs related to COVID-19

 

14,557,000

 

3.0

%

 

4,748,000

 

1.3

%

Total cash items impacting gross profit

$

12,439,000

 

3.1

%

$

8,394,000

 

2.9

%

 

(a) gross margin reflecting impact to net sales and cost of goods sold

Items Impacting EBITDA for the Three and Nine Months Ended December 31, 2021 and 2020

Exhibit 5

 

Three Months Ended

December 31,

Nine Months Ended

December 31,

2021

2020

2021

2020

GAAP net income

$

3,139,000

$

8,469,000

$

7,683,000

 

$

20,641,000

 

Interest expense, net

 

3,949,000

 

 

4,051,000

 

 

11,510,000

 

 

12,074,000

 

Income tax expense

 

1,588,000

 

 

3,373,000

 

 

4,786,000

 

 

8,448,000

 

Depreciation and amortization

 

3,227,000

 

 

2,857,000

 

 

9,591,000

 

 

8,090,000

 

EBITDA

$

11,903,000

 

$

18,750,000

 

$

33,570,000

 

$

49,253,000

 

 
Non-cash items impacting EBITDA
Core and finished goods premium amortization and new business return accruals

$

3,146,000

 

$

1,528,000

 

$

9,013,000

 

$

4,576,000

 

Revaluation - cores on customers' shelves

 

846,000

 

 

1,304,000

 

 

3,517,000

 

 

3,580,000

 

Share-based compensation expenses and earn-out accruals

 

2,030,000

 

 

1,542,000

 

 

5,554,000

 

 

3,778,000

 

Foreign exchange impact of lease liabilities and forward contracts

 

385,000

 

 

(12,455,000

)

 

1,769,000

 

 

(21,257,000

)

Total non-cash items impacting EBITDA

$

6,407,000

 

$

(8,081,000

)

$

19,853,000

 

$

(9,323,000

)

 
Cash items impacting EBITDA
Impact of tariffs

$

-

 

$

(688,000

)

$

-

 

$

(3,535,000

)

New product line start-up costs and transition expenses (a)

 

-

 

 

4,421,000

 

 

2,836,000

 

 

12,235,000

 

Gain due to realignment of inventory at customer distribution centers

 

-

 

 

-

 

 

(4,862,000

)

 

(4,391,000

)

Supply chain disruptions and costs related to COVID-19

 

4,935,000

 

 

1,933,000

 

 

16,257,000

 

 

6,276,000

 

Total cash items impacting EBITDA

$

4,935,000

 

$

5,666,000

 

$

14,231,000

 

$

10,585,000

 

 

(a) Excludes depreciation, which is included in the depreciation and amortization line item.

 

Contacts

Gary S. Maier

(310) 972-5124

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 MillValley.com & California Media Partners, LLC. All rights reserved.