Motorcar Parts of America Reports Fiscal 2020 Fourth Quarter and Year-End Results

-- Sales up 13.3 Percent for Record Year; Positive Annual Cash Flow Reflecting Strong Second Half --

LOS ANGELES--()--Motorcar Parts of America, Inc. (Nasdaq: MPAA) today reported results for its fiscal 2020 fourth quarter and year ended March 31, 2020 -- reflecting generation of cash flow from operations of $18.8 million for the fiscal year and gross margin improvement.

Net sales for the fiscal 2020 fourth quarter increased 16.8 percent to a record $150.7 million from $129.1 million for the same period a year earlier.

Net loss for the fiscal 2020 fourth quarter was $8.2 million, or $0.43 per share, compared with a net loss of $2.8 million, or $0.15 per share, a year ago. Results for the fiscal 2020 fourth quarter were impacted by items totaling approximately $25.8 million on a pre-tax basis, or $1.02 per share on a tax-effected basis, as detailed in Exhibit 1. The $25.8 million includes non-cash items of $23.0 million, primarily consisting of the re-measurement of the company’s Mexico lease liabilities and its forward foreign exchange contracts due to the significant devaluation in the Mexican Peso, and transition expenses of $2.8 million related to the expansion of the company’s footprint in Mexico.

The net loss for the prior-year period was impacted by items totaling approximately $17.2 million on a pre-tax basis, or $0.70 per share on a tax-effected basis, as detailed in Exhibit 1. The company has decided to eliminate its reporting of certain non-GAAP financial measures. For information about items that impacted the results, see Exhibits 1 through 5.

“Notwithstanding the global pandemic, which began to impact the automotive aftermarket in mid-March, we achieved record sales and generated strong cash flow from operations. While the sharp decline in the value of the Mexican peso US dollar exchange rate resulted in large non-cash expenses, the underlying operating results for the company are strong,” said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America.

Joffe noted the facilities expansion in Mexico and the company’s brake caliper launch are rapidly nearing completion, and as such the transition costs will be substantially eliminated by the end of this fiscal year.

Gross profit for the fiscal 2020 fourth quarter was $36.6 million compared with $26.0 million a year earlier. Gross profit as a percentage of net sales for the fiscal 2020 fourth quarter was 24.3 percent compared with 20.1 percent a year earlier.

Adjusted gross profit for the fiscal 2020 fourth quarter was $40.2 million compared with $36.6 million a year ago. Adjusted gross profit as a percentage of net sales for the three months was 26.7 percent compared with 28.3 percent a year earlier, as detailed in Exhibit 3.

Gross profit and adjusted gross profit for the fiscal 2020 fourth quarter were negatively impacted by 0.6 percent due to core buyback premium amortization. Gross profit and adjusted gross profit for the prior-year period were also impacted by several items as detailed in Exhibit 3, totaling 2.4 percent.

Twelve-Month Results

Net sales for fiscal 2020 increased 13.3 percent to a record $535.8 million from $472.8 million a year earlier.

Net loss for fiscal 2020 was $7.3 million, or $0.39 per share, compared with a net loss of $7.8 million, or $0.42 per share, a year ago. Results for fiscal 2020 were impacted by approximately $50.0 million on a pre-tax basis, or $1.99 per share on a tax-effected basis, as detailed in Exhibit 2. The $50.0 million includes non-cash items of $37.7 million -- consisting of non-cash, mark-to-market expenses related to the significant devaluation in the Mexican Peso and revaluation of cores on customers’ shelves. In addition, the items totaling $50.0 million include $12.3 million primarily due to transition expenses related to the expansion of the company’s footprint in Mexico.

The net loss for the prior-year period was impacted by items totaling approximately $51.9 million on a pre-tax basis, or $2.08 per share on a tax-effected basis, detailed in Exhibit 2.

Gross profit for fiscal 2020 was $118.4 million compared with $89.2 million a year earlier. Gross profit as a percentage of net sales for fiscal 2020 was 22.1 percent compared with 18.9 percent a year earlier.

Adjusted gross profit for fiscal 2020 was $135.9 million compared with $117.2 million a year ago. Adjusted gross profit as a percentage of net sales for fiscal 2020 was 25.4 percent compared with 24.8 percent a year earlier, as detailed in Exhibit 4.

Gross profit and adjusted gross profit for fiscal 2020 were negatively impacted by core buyback premium amortization, customer allowances and return accruals related to new business, and the impact of tariff costs before being passed through to customers. This negatively affected adjusted gross margins by a combined 1.2 percent.

Gross profit and adjusted gross profit for the prior fiscal year were negatively impacted by several items detailed in Exhibit 4, totaling 2.7 percent.

Joffe emphasized the company’s ongoing commitment to being socially responsible, particularly during this challenging period. He highlighted that one of the company’s many initiatives includes its food programs for employees and members of the community. “We should never lose sight of our individual and collective responsibilities, particularly in times of crisis, and we always strive to nurture this spirit in our day-to-day activities,” Joffe said.

FISCAL 2021 OUTLOOK

After record sales and a strong end to fiscal 2020, April brought a sharp decrease in demand, as home sheltering took effect across the country. The company implemented a variety of safety and cost-savings initiatives to proactively address the crisis, while at the same time remained prepared for an anticipated resumption of demand. Industry reports indicate that sales of hard parts have increased substantially over the past 45 days, indicating that we may have experienced the low point.

Joffe noted it is encouraging that the company’s sales improved significantly in May, and June is trending nicely.

“Our industry has proven to be resilient and we remain committed to our strategic plans for growth and profitability focusing on excellent returns to our shareholders. However, the company believes it is prudent at this time to not provide annual sales and gross margin guidance.

“Clearly the past few months have been a challenging period for our company, our employees and their families. We are tremendously appreciative of everyone’s contributions and the dedicated focus on providing essential automotive aftermarket products under extraordinary circumstances. Our employees have exhibited enormous bravery, commitment, and innovation to ensure the safety of our entire team. They have accomplished this without compromising our commitment to our customers that they receive their orders with the quality and promptness they expect from MPA. These people are true heroes and we will continue with our utmost commitment and social responsibility to this team, their families, and our customers.

“We are an essential supplier in the $125 billion hard parts industry and well-positioned for growth in the aftermarket industry, and especially proud to play an important role in keeping vehicles of all kinds on the road,” said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America.

Use of Non-GAAP Measures

This press release includes the following non-GAAP measures - adjusted gross profit, adjusted gross margin and EBITDA, which are not measures of financial performance under GAAP, and should not be considered as alternatives to gross profit, gross profit margin or net loss as a measure of financial performance. The company has decided to eliminate its reporting of other non-GAAP financial measures and instead provide additional information about items that impact its results. The company believes these non-GAAP measures, when considered together with the corresponding GAAP measures, provide useful information to investors and management regarding financial and business trends relating to the company’s results of operations. However, these non-GAAP measures have significant limitations in that they do 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 adjusted gross profit, adjusted gross margin and EBITDA to their 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.

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 (833)-968-1924 (domestic) or (825)-312-2355 (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 June 15, 2020 through 8:59 p.m. Pacific time on June 23, 2020 by calling (800)-585-8367 (domestic) or (416)-621-4642 (international) and using access code: 2892708.

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 bearing and hub assemblies, brake calipers, brake master cylinders, brake power boosters, rotors, brake pads and turbochargers utilized in imported and domestic passenger vehicles, light trucks and heavy-duty applications. In addition, the company designs and manufactures test solutions for performance, endurance and production testing of electric motors, inverters, alternators, starters, and belt starter generators for the OE, aerospace, and aftermarket. Motorcar Parts of America’s products are sold to automotive retail outlets and the professional repair market throughout the United States and Canada, with facilities located in New York, California, Mexico, Malaysia, China and India, and administrative offices located in California, Tennessee, Mexico, Singapore, Malaysia and Canada. 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 2020 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.

MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

 

 

 

Three Months Ended March 31,

 

Twelve Months Ended March 31,

 

 

2020

 

2019

2020

 

2019

 

 

(Unaudited)

 

 

 

 

 
Net sales

$

150,735,000

 

$

129,077,000

 

$

535,831,000

 

$

472,797,000

 

Cost of goods sold

 

114,152,000

 

 

103,127,000

 

 

417,431,000

 

 

383,623,000

 

Gross profit

 

36,583,000

 

 

25,950,000

 

 

118,400,000

 

 

89,174,000

 

Operating expenses:
General and administrative

 

34,522,000

 

 

12,553,000

 

 

71,425,000

 

 

45,972,000

 

Sales and marketing

 

5,047,000

 

 

5,464,000

 

 

21,037,000

 

 

19,542,000

 

Research and development

 

2,506,000

 

 

2,440,000

 

 

9,200,000

 

 

8,014,000

 

Total operating expenses

 

42,075,000

 

 

20,457,000

 

 

101,662,000

 

 

73,528,000

 

Operating (loss) income

 

(5,492,000

)

 

5,493,000

 

 

16,738,000

 

 

15,646,000

 

Interest expense, net

 

5,464,000

 

 

6,689,000

 

 

25,039,000

 

 

23,227,000

 

Loss before income tax (benefit) expense

 

(10,956,000

)

 

(1,196,000

)

 

(8,301,000

)

 

(7,581,000

)

Income tax (benefit) expense

 

(2,763,000

)

 

1,569,000

 

 

(1,011,000

)

 

268,000

 

 
Net loss

$

(8,193,000

)

$

(2,765,000

)

$

(7,290,000

)

$

(7,849,000

)

Basic net loss per share

$

(0.43

)

$

(0.15

)

$

(0.39

)

$

(0.42

)

Diluted net loss per share

$

(0.43

)

$

(0.15

)

$

(0.39

)

$

(0.42

)

Weighted average number of shares outstanding:
Basic

 

18,967,865

 

 

18,814,133

 

 

18,913,788

 

 

18,849,909

 

Diluted

 

18,967,865

 

 

18,814,133

 

 

18,913,788

 

 

18,849,909

 

MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

 
March 31, 2020 March 31, 2019
ASSETS
Current assets:
Cash and cash equivalents

$

49,616,000

 

$

9,911,000

 

Short-term investments

 

850,000

 

 

3,273,000

 

Accounts receivable — net

 

91,748,000

 

 

56,015,000

 

Inventory — net

 

225,659,000

 

 

233,726,000

 

Inventory unreturned

 

9,021,000

 

 

8,469,000

 

Contract assets

 

20,332,000

 

 

22,183,000

 

Income tax receivable

 

3,282,000

 

 

10,009,000

 

Prepaid expenses and other current assets

 

8,608,000

 

 

9,296,000

 

Total current assets

 

409,116,000

 

 

352,882,000

 

Plant and equipment — net

 

44,957,000

 

 

35,151,000

 

Operating lease assets

 

53,029,000

 

 

-

 

Long-term deferred income taxes

 

18,950,000

 

 

9,746,000

 

Long-term contract assets

 

239,540,000

 

 

221,876,000

 

Goodwill

 

3,205,000

 

 

3,205,000

 

Intangible assets — net

 

6,393,000

 

 

8,431,000

 

Other assets

 

1,839,000

 

 

1,071,000

 

TOTAL ASSETS

$

777,029,000

 

$

632,362,000

 

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable

$

78,664,000

 

$

92,461,000

 

Accrued liabilities

 

16,419,000

 

 

14,604,000

 

Customer finished goods returns accrual

 

25,326,000

 

 

22,615,000

 

Contract liabilities

 

27,911,000

 

 

30,599,000

 

Revolving loan

 

152,000,000

 

 

110,400,000

 

Other current liabilities

 

9,390,000

 

 

4,990,000

 

Operating lease liabilities

 

5,104,000

 

 

-

 

Current portion of term loan

 

3,678,000

 

 

3,685,000

 

Total current liabilities

 

318,492,000

 

 

279,354,000

 

Term loan, less current portion

 

20,462,000

 

 

24,187,000

 

Long-term contract liabilities

 

92,101,000

 

 

40,889,000

 

Long-term deferred income taxes

 

79,000

 

 

257,000

 

Long-term operating lease liabilities

 

61,425,000

 

 

-

 

Other liabilities

 

8,950,000

 

 

7,920,000

 

Total liabilities

 

501,509,000

 

 

352,607,000

 

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;
18,969,380 and 18,817,400 shares issued and outstanding at March 31, 2020 and

 

-

 

 

-

 

2019, respectively

 

190,000

 

 

188,000

 

Additional paid-in capital

 

218,581,000

 

 

215,047,000

 

Retained earnings

 

64,117,000

 

 

71,407,000

 

Accumulated other comprehensive loss

 

(7,368,000

)

 

(6,887,000

)

Total shareholders' equity

 

275,520,000

 

 

279,755,000

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

777,029,000

 

$

632,362,000

 

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 twelve months ended March 31, 2020 and 2019. 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. The Company is no longer disclosing an Adjusted EBITDA financial measure and is instead providing information about items that could affect EBITDA. A reconciliation of EBITDA to net loss is provided below along with information regarding such items.

Items Impacting Net Loss for the Three Months Ended March 31, 2020

Exhibit 1

Three Months Ended March 31,

2020

 

2019

$

 

Per Share

 

$

 

Per Share

GAAP net loss

$

(8,193,000

)

$

(0.43

)

$

(2,765,000

)

$

(0.15

)

 
Items impacting net loss
Customer allowances, return accruals and changeover costs (a) related to new business and product line expansion, net of costs

 

(54,000

)

 

(0.00

)

 

2,260,000

 

 

0.12

 

Core buy-back premium amortization

 

958,000

 

 

0.05

 

 

1,093,000

 

 

0.06

 

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

 

2,816,000

 

 

0.15

 

 

3,384,000

 

 

0.18

 

Revaluation - cores on customers' shelves

 

932,000

 

 

0.05

 

 

7,377,000

 

 

0.39

 

Inventory step-up amortization

 

-

 

 

-

 

 

104,000

 

 

0.01

 

Acquisition costs and earn-out accruals, financing, severance, and restatement-related fees

 

(553,000

)

 

(0.03

)

 

1,253,000

 

 

0.07

 

Share-based compensation expenses

 

1,029,000

 

 

0.05

 

 

2,413,000

 

 

0.13

 

Mark-to-market losses (gains)

 

20,708,000

 

 

1.09

 

 

(656,000

)

 

(0.03

)

Tax effect (c)

 

(6,459,000

)

 

(0.34

)

 

(4,307,000

)

 

(0.23

)

(a)

Includes changeover costs related to new business of $301,000 recorded in operating expenses for the three months ended March 31, 2019.

(b)

Consists of $2,508,000 included in cost of goods sold and $308,000 included in operating expenses for the three months ended March 31, 2020 and $2,512,000 included in cost of goods sold and $872,000 included in operating expenses for the three months ended March 31, 2019.

(c)

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.

Historically, the company calculated the tax impact by applying an income tax rate of 25.0% to adjusted pre-tax income; if calculated on that basis, the tax effect would have been ($6,483,000) or ($0.34) per share and ($2,439,000) or ($0.13) per share for three months ended March 31, 2020 and 2019, respectively.

Items Impacting Net Loss for the Twelve Months Ended March 31, 2020

Exhibit 2

Twelve Months Ended March 31,

2020

 

2019

$

 

Per Share

 

$

 

Per Share

GAAP net loss

$

(7,290,000

)

$

(0.39

)

$

(7,849,000

)

$

(0.42

)

 
Items impacting net loss
Customer allowances, return accruals and changeover costs (a) related to new business and product line expansion, net of costs

 

1,177,000

 

 

0.06

 

 

6,907,000

 

 

0.37

 

Core buy-back premium amortization

 

4,501,000

 

 

0.24

 

 

4,126,000

 

 

0.22

 

Impact of tariff costs before being passed through to customers

 

1,067,000

 

 

0.06

 

 

1,526,000

 

 

0.08

 

Loss in connection with a cancelled contract

 

133,000

 

 

0.01

 

 

764,000

 

 

0.04

 

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

 

10,281,000

 

 

0.54

 

 

10,528,000

 

 

0.56

 

Revaluation - cores on customers' shelves

 

10,799,000

 

 

0.57

 

 

18,843,000

 

 

1.00

 

Inventory step-up amortization

 

-

 

 

-

 

 

104,000

 

 

0.01

 

Acquisition costs and earn-out accruals, financing, severance, and restatement-related fees

 

(261,000

)

 

(0.01

)

 

2,296,000

 

 

0.12

 

Share-based compensation expenses

 

4,141,000

 

 

0.22

 

 

5,564,000

 

 

0.30

 

Mark-to-market losses (gains)

 

18,201,000

 

 

0.96

 

 

972,000

 

 

0.05

 

Write-off of debt issuance costs

 

-

 

 

-

 

 

303,000

 

 

0.02

 

Tax effect (c)

 

(12,510,000

)

 

(0.66

)

 

(12,983,000

)

 

(0.69

)

(a)

Includes changeover costs related to new business of $112,000 and $865,000 recorded in operating expenses for the twelve months ended March 31, 2020 and 2019, respectively.

(b)

Consists of $8,337,000 included in cost of goods sold and $1,944,000 included in operating expenses for the twelve months ended March 31, 2020 and $8,178,000 included in cost of goods sold and $2,350,000 included in operating expenses for the twelve months ended March 31, 2019.

(c)

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.

Historically, the company calculated the tax impact by applying an income tax rate of 25.0% to adjusted pre-tax income; if calculated on that basis, the tax effect would have been ($11,446,000) or ($0.59) per share and ($10,821,000) or ($0.56) per share for twelve months ended March 31, 2020 and 2019, respectively.

Items Impacting Gross Profit for the Three Months Ended March 31, 2020

Exhibit 3

Three Months Ended March 31,

2020

 

2019

$

 

Gross
Margin

 

$

 

Gross
Margin

GAAP gross profit

$

36,583,000

 

24.3

%

$

25,950,000

20.1

%

Adjustments:
New product line start-up costs and transition expenses

 

2,508,000

 

1.7

%

 

2,512,000

1.9

%

Revaluation - cores on customers' shelves

 

932,000

 

0.6

%

 

7,377,000

5.7

%

Loss related to under return of cores

 

215,000

 

0.1

%

 

716,000

0.6

%

Total adjustments

 

3,655,000

 

2.4

%

 

10,605,000

8.2

%

Adjusted gross profit (a)

$

40,238,000

 

26.7

%

$

36,555,000

28.3

%

 
Other items not adjusted
Customer allowances and return accruals related to new business and product line expansion, net of costs

 

(54,000

)

0.0

%

 

1,959,000

1.5

%

Core buy-back premium amortization

 

958,000

 

0.6

%

 

1,093,000

0.8

%

Inventory step-up amortization

 

-

 

-

 

 

104,000

0.1

%

(a)

Adjusted gross margin is based on GAAP net sales; historically, the company calculated the adjusted gross margin percentage based on adjusted net sales, which it no longer utilize.

Items Impacting Gross Profit for the Twelve Months Ended March 31, 2020

Exhibit 4

Twelve Months Ended March 31,

2020

 

2019

$

 

Gross
Margin

 

$

 

Gross
Margin

GAAP gross profit

$

118,400,000

 

22.1

%

$

89,174,000

18.9

%

Adjustments:
New product line start-up costs and transition expenses

 

8,337,000

 

1.6

%

 

8,178,000

1.7

%

Revaluation - cores on customers' shelves

 

10,799,000

 

2.0

%

 

18,843,000

4.0

%

(Income) loss related to under return of cores

 

(1,609,000

)

-0.3

%

 

962,000

0.2

%

Total adjustments

 

17,527,000

 

3.3

%

 

27,983,000

5.9

%

Adjusted gross profit (a)

$

135,927,000

 

25.4

%

$

117,157,000

24.8

%

 
Other items not adjusted
Customer allowances and return accruals related to new business and product line expansion, net of costs

 

1,065,000

 

0.2

%

 

6,042,000

1.3

%

Core buy-back premium amortization

 

4,501,000

 

0.8

%

 

4,126,000

0.9

%

Impact of tariff costs before being passed through to customers

 

1,067,000

 

0.2

%

 

1,526,000

0.3

%

Loss in connection with a cancelled contract

 

133,000

 

0.0

%

 

764,000

0.2

%

Inventory step-up amortization

 

-

 

 

104,000

0.0

%

(a)

Adjusted gross margin is based on GAAP net sales; historically, the company calculated the adjusted gross margin percentage based on adjusted net sales, which it no longer utilize.

Items Impacting EBITDA for the Three and Twelve Months Ended March 31, 2020

Exhibit 5

Three Months Ended March 31,

 

Twelve Months Ended March 31,

2020

 

2019

 

2020

 

2019

GAAP net loss

$

(8,193,000

)

$

(2,765,000

)

$

(7,290,000

)

$

(7,849,000

)

Interest expense, net

 

5,464,000

 

 

6,689,000

 

 

25,039,000

 

 

23,227,000

 

Income tax (benefit) expense

 

(2,763,000

)

 

1,569,000

 

 

(1,011,000

)

 

268,000

 

Depreciation and amortization

 

2,542,000

 

 

2,396,000

 

 

9,561,000

 

 

7,329,000

 

EBITDA

$

(2,950,000

)

$

7,889,000

 

$

26,299,000

 

$

22,975,000

 

 
Items impacting EBITDA
Customer allowances, return accruals and changeover costs related to new business and product line expansion, net of costs

 

(54,000

)

 

2,260,000

 

 

1,177,000

 

 

6,907,000

 

Core buy-back premium amortization

 

958,000

 

 

1,093,000

 

 

4,501,000

 

 

4,126,000

 

Impact of tariff costs before being passed through to customers

 

-

 

 

-

 

 

1,067,000

 

 

1,526,000

 

Loss in connection with a cancelled contract

 

-

 

 

-

 

 

133,000

 

 

764,000

 

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

 

2,752,000

 

 

3,095,000

 

 

9,998,000

 

 

9,712,000

 

Revaluation - cores on customers' shelves

 

932,000

 

 

7,377,000

 

 

10,799,000

 

 

18,843,000

 

Inventory step-up amortization

 

-

 

 

104,000

 

 

-

 

 

104,000

 

Acquisition costs and earn-out accruals, financing, severance, and restatement-related fees

 

(553,000

)

 

1,253,000

 

 

(261,000

)

 

2,296,000

 

Share-based compensation expenses

 

1,029,000

 

 

2,413,000

 

 

4,141,000

 

 

5,564,000

 

Mark-to-market losses (gains)

 

20,708,000

 

 

(656,000

)

 

18,201,000

 

 

972,000

 

(a)

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

 

Contacts

Gary S. Maier
(310) 972-5124

Contacts

Gary S. Maier
(310) 972-5124