Motorcar Parts of America Reports Fiscal 2027 Second Quarter Results
New customer awards have begun shipping, but delayed orders prompted a lower full-year sales outlook.
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Approximately
Shipments Beginning with Further Launches Expected This Fiscal Year
Positive Drivers
-
Approximately
$60 Million -
Expects to Secure Approximately
$25 Million - North American Expansion, Centric Parts Brand Relaunch and Rotating Electrical Diagnostics Support Incremental Longer-Term Growth Opportunities
Three-Month Results
Net sales for the fiscal second quarter were
Gross profit for the fiscal second quarter was
Operating income was
Interest expense decreased to
Net income for the fiscal second quarter was
At September 30, 2026, revolver borrowings were
Under its authorized share repurchase program, the company had approximately
Strategic and Operating Highlights
-
Initial shipments of newly awarded business have begun, with the majority of the approximately
$60 million $25 million - Centric Parts brand potential sales contributions are not yet included in the current growth estimates.
-
Growth opportunities in
Mexico include expansion by major existing customers. -
Potential opportunities in
Canada as major customers expand geographically. - Margin improvement opportunities from increased utilization of existing brake-related manufacturing capacity.
-
Rotating electrical diagnostic testing equipment program continues to expand with major automotive aftermarket customers across
North America and internationally. -
Heavy-duty program relocation to
Mexico completed with expected reduction in manufacturing costs.
Six-Month Results
Net sales for the six-month period were
Gross profit for the six-month period was
Operating income was
Interest expense decreased to
Net loss for the six-month period was
Management Commentary
“Although our second-quarter results reflect delayed customer orders and some industry softness, we remain confident in the underlying aftermarket and in the substantial opportunities we are creating through new customer awards, geographic expansion and improved operating competitiveness,” said Selwyn Joffe, chairman, president and chief executive officer.
“We have secured approximately
The company has benefited from the recent bankruptcy of First Brands, notwithstanding customers liquidating inventory previously purchased from First Brands. “This changing competitive landscape has created meaningful opportunities for Motorcar Parts of America to expand its presence in the braking business. While the liquidation of existing First Brands inventories has temporarily impacted the timing of certain new orders, we are now starting to see the benefits and we are well positioned for additional business, including the relaunch of Centric Parts,” Joffe said.
He noted opportunities also extend beyond
The company also completed the relocation of its heavy-duty program into the company’s existing manufacturing operations in
He added that the company’s rotating electrical diagnostic testing equipment business continues to expand with existing and new customers, including new international markets.
“Our new business awards, the Centric Parts relaunch, expanding North American opportunities, diagnostic equipment growth and the benefits of manufacturing efficiency reinforce our confidence in Motorcar Parts of America’s long-term prospects. We believe these initiatives position us to generate sales growth and improved profitability as the new programs mature,” said Joffe.
“I should emphasize that the relaunch of Centric represents a significant opportunity to expand our presence in the brake aftermarket,” Joffe said. He emphasized that the Centric relaunch is not included in the company’s current growth estimates.
Revised Fiscal 2027 Guidance
Reflecting delayed customer orders for existing and new business awards, the company is revising its guidance for the fiscal year ending March 31, 2027. Net sales are estimated to be between
Operating income for fiscal 2027 is estimated to be between
Based on the revised annual fiscal 2027 guidance and actual results through September 30, 2026, net sales for the six months ending March 31, 2027 are estimated to be between
Operating income for the six months ending March 31, 2027 is estimated to be between
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 definition and reconciliation of EBITDA to net income, its corresponding GAAP measure, 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 this measure.
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 Web broadcast via the company’s investor relations site at www.motorcarparts.com and the tab Events and Presentations or by calling (833) 461-5787 (
A complete listing of dial-in numbers for international participants is available via: https://help.events.q4inc.com/eahc/international-dial-in-numbers.
For those who are not available to listen to the live broadcast, a replay of the call will be archived on Motorcar Parts of America’s investor relations site www.motorcarparts.com for a seven-day period.
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 pads, brake rotors, brake master cylinders, brake power boosters, 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.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, sales growth, margin improvement, operating efficiencies, customer demand, new business opportunities, capacity utilization, working capital, liquidity, debt levels, cash flow, strategic initiatives, and market conditions. These statements are based on current expectations, estimates, forecasts, and assumptions and are not guarantees of future performance. Actual results may differ materially from those expressed or implied by these forward-looking statements due to risks and uncertainties, including changes in customer ordering patterns, customer concentration, competitive conditions, supply-chain constraints, inflation, tariffs, interest rates, credit availability, labor and production costs, inventory levels, operational execution, macroeconomic conditions, and the other risks described in the company’s most recent Form 10-K, Forms 10-Q, and other filings with the Securities and Exchange Commission. The company undertakes no obligation to update or revise any forward-looking statements, except as required by law.
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited) |
||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|||||
| Net sales | $ |
169,217,000 |
|
$ |
221,470,000 |
|
$ |
337,238,000 |
|
$ |
409,834,000 |
|
||||
| Cost of goods sold |
|
128,270,000 |
|
|
178,743,000 |
|
|
269,117,000 |
|
|
333,190,000 |
|
||||
| Gross profit |
|
40,947,000 |
|
|
42,727,000 |
|
|
68,121,000 |
|
|
76,644,000 |
|
||||
| Operating expenses: | ||||||||||||||||
| General and administrative |
|
18,234,000 |
|
|
17,086,000 |
|
|
33,751,000 |
|
|
29,766,000 |
|
||||
| Sales and marketing |
|
6,642,000 |
|
|
6,811,000 |
|
|
13,188,000 |
|
|
13,021,000 |
|
||||
| Research and development |
|
3,091,000 |
|
|
3,928,000 |
|
|
6,267,000 |
|
|
7,234,000 |
|
||||
| Foreign exchange impact of lease liabilities and forward contracts |
|
3,011,000 |
|
|
(1,469,000 |
) |
|
1,414,000 |
|
|
(9,817,000 |
) |
||||
| Total operating expenses |
|
30,978,000 |
|
|
26,356,000 |
|
|
54,620,000 |
|
|
40,204,000 |
|
||||
| Operating income |
|
9,969,000 |
|
|
16,371,000 |
|
|
13,501,000 |
|
|
36,440,000 |
|
||||
| Other expenses: | ||||||||||||||||
| Interest expense, net |
|
11,289,000 |
|
|
12,699,000 |
|
|
23,333,000 |
|
|
25,511,000 |
|
||||
| Change in fair value of compound net derivative liability |
|
(3,240,000 |
) |
|
2,260,000 |
|
|
(1,700,000 |
) |
|
4,050,000 |
|
||||
| Total other expenses |
|
8,049,000 |
|
|
14,959,000 |
|
|
21,633,000 |
|
|
29,561,000 |
|
||||
| Income (loss) before income tax expense |
|
1,920,000 |
|
|
1,412,000 |
|
|
(8,132,000 |
) |
|
6,879,000 |
|
||||
| Income tax expense |
|
562,000 |
|
|
3,561,000 |
|
|
3,931,000 |
|
|
5,986,000 |
|
||||
| Net income (loss) | $ |
1,358,000 |
|
$ |
(2,149,000 |
) |
$ |
(12,063,000 |
) |
$ |
893,000 |
|
||||
| Basic net income (loss) per share | $ |
0.07 |
|
$ |
(0.11 |
) |
$ |
(0.64 |
) |
$ |
0.05 |
|
||||
| Diluted net (loss) income per share | $ |
(0.03 |
) |
$ |
(0.11 |
) |
$ |
(0.64 |
) |
$ |
0.04 |
|
||||
| Weighted average number of shares outstanding: | ||||||||||||||||
| Basic |
|
18,942,932 |
|
|
19,366,633 |
|
|
18,932,989 |
|
|
19,367,840 |
|
||||
| Diluted |
|
22,486,639 |
|
|
19,366,633 |
|
|
18,932,989 |
|
|
20,194,954 |
|
||||
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES Consolidated Balance Sheets |
||||||
| September 30, 2026 | March 31, 2026 | |||||
| ASSETS | (Unaudited) | |||||
| Current assets: | ||||||
| Cash and cash equivalents | $ |
20,770,000 |
$ |
14,650,000 |
||
| Short-term investments |
|
2,277,000 |
|
2,028,000 |
||
| Accounts receivable — net |
|
79,981,000 |
|
112,614,000 |
||
| Inventory — net |
|
415,049,000 |
|
397,041,000 |
||
| Contract assets |
|
40,033,000 |
|
34,552,000 |
||
| Prepaid expenses and other current assets |
|
25,162,000 |
|
23,097,000 |
||
| Total current assets |
|
583,272,000 |
|
583,982,000 |
||
| Plant and equipment — net |
|
27,427,000 |
|
30,739,000 |
||
| Operating lease assets |
|
60,672,000 |
|
63,103,000 |
||
| Long-term deferred income taxes |
|
4,413,000 |
|
4,039,000 |
||
| Long-term contract assets |
|
347,874,000 |
|
331,221,000 |
||
| Goodwill and intangible assets — net |
|
7,205,000 |
|
3,440,000 |
||
| Other assets |
|
3,009,000 |
|
2,913,000 |
||
| TOTAL ASSETS | $ |
1,033,872,000 |
$ |
1,019,437,000 |
||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable and accrued liabilities | $ |
174,321,000 |
$ |
200,499,000 |
||
| Customer finished goods returns accrual |
|
33,810,000 |
|
29,923,000 |
||
| Contract liabilities |
|
52,982,000 |
|
61,201,000 |
||
| Revolving loan |
|
126,595,000 |
|
94,668,000 |
||
| Other current liabilities |
|
6,299,000 |
|
4,348,000 |
||
| Operating lease liabilities |
|
9,535,000 |
|
8,957,000 |
||
| Total current liabilities |
|
403,542,000 |
|
399,596,000 |
||
| Convertible notes, related party |
|
41,963,000 |
|
38,993,000 |
||
| Long-term contract liabilities |
|
269,228,000 |
|
249,108,000 |
||
| Long-term deferred income taxes |
|
83,000 |
|
425,000 |
||
| Long-term operating lease liabilities |
|
53,513,000 |
|
56,969,000 |
||
| Other liabilities |
|
7,628,000 |
|
8,336,000 |
||
| Total liabilities |
|
775,957,000 |
|
753,427,000 |
||
| Commitments and contingencies | ||||||
| Shareholders' equity: | ||||||
| Preferred stock; par value |
|
- |
|
- |
||
| Series A junior participating preferred stock; par value |
|
- |
|
- |
||
| Common stock; par value |
|
190,000 |
|
189,000 |
||
| Additional paid-in capital |
|
229,277,000 |
|
226,709,000 |
||
| Retained earnings |
|
20,364,000 |
|
32,427,000 |
||
| Accumulated other comprehensive income |
|
8,084,000 |
|
6,685,000 |
||
| Total shareholders' equity |
|
257,915,000 |
|
266,010,000 |
||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ |
1,033,872,000 |
$ |
1,019,437,000 |
||
Additional Information and Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in accordance with
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 September 30, 2026 and 2025 |
Exhibit 1 |
|||||||||||||||
| Three Months Ended September 30, | ||||||||||||||||
2026 |
2025 |
|
||||||||||||||
| $ | Per Diluted Share | $ | Per Diluted Share | |||||||||||||
| GAAP net income (loss) | $ |
1,358,000 |
|
$ |
(0.03 |
) |
$ |
(2,149,000 |
) |
$ |
(0.11 |
) |
||||
| Non-cash items impacting net income | ||||||||||||||||
| Core and finished goods premium amortization | $ |
3,544,000 |
|
$ |
0.16 |
|
$ |
2,988,000 |
|
$ |
0.15 |
|
||||
| Revaluation - cores on customers' shelves |
|
1,238,000 |
|
|
0.06 |
|
|
1,225,000 |
|
|
0.06 |
|
||||
| Share-based compensation expenses |
|
3,451,000 |
|
|
0.15 |
|
|
1,984,000 |
|
|
0.10 |
|
||||
| Foreign exchange impact of lease liabilities and forward contracts |
|
3,011,000 |
|
|
0.13 |
|
|
(1,469,000 |
) |
|
(0.08 |
) |
||||
| Gain due to realignment of inventory at customer distribution centers |
|
- |
|
|
- |
|
|
(643,000 |
) |
|
(0.03 |
) |
||||
| Change in fair value of compound net derivative liability |
|
(3,240,000 |
) |
|
(0.14 |
) |
|
2,260,000 |
|
|
0.12 |
|
||||
| Tax effect (a) |
|
(2,001,000 |
) |
|
(0.09 |
) |
|
(1,586,000 |
) |
|
(0.08 |
) |
||||
| Total non-cash items impacting net income | $ |
6,003,000 |
|
$ |
0.27 |
|
$ |
4,759,000 |
|
$ |
0.25 |
|
||||
| Cash items impacting net income | ||||||||||||||||
| IEEPA tariff refunds | $ |
(11,052,000 |
) |
$ |
(0.49 |
) |
$ |
- |
|
$ |
- |
|
||||
| Transition expenses and severance (b) |
|
1,909,000 |
|
|
0.08 |
|
|
- |
|
|
- |
|
||||
| Net tariff costs paid for products sold before price increases were effective |
|
- |
|
|
- |
|
|
698,000 |
|
|
0.04 |
|
||||
| Tax effect (a) |
|
2,286,000 |
|
|
0.10 |
|
|
(175,000 |
) |
|
(0.01 |
) |
||||
| Total cash items impacting net income | $ |
(6,857,000 |
) |
$ |
(0.30 |
) |
$ |
523,000 |
|
$ |
0.03 |
|
||||
| (a) Tax effect is calculated by applying an income tax rate of |
||||||||||||||||
| (b) For the three months ended September 30, 2026, consists of |
||||||||||||||||
Items Impacting Net Income for the Six Months Ended September 30, 2026 and 2025 |
Exhibit 2 |
|||||||||||||||
| Six Months Ended September 30, | ||||||||||||||||
2026 |
2025 |
|||||||||||||||
| $ | Per Diluted Share | $ | Per Diluted Share | |||||||||||||
| GAAP net (loss) income | $ |
(12,063,000 |
) |
$ |
(0.64 |
) |
$ |
893,000 |
|
$ |
0.04 |
|
||||
| Non-cash items impacting net income | ||||||||||||||||
| Core and finished goods premium amortization | $ |
6,950,000 |
|
$ |
0.37 |
|
$ |
5,835,000 |
|
$ |
0.29 |
|
||||
| Revaluation - cores on customers' shelves |
|
1,943,000 |
|
|
0.10 |
|
|
2,251,000 |
|
|
0.11 |
|
||||
| Share-based compensation expenses |
|
5,589,000 |
|
|
0.30 |
|
|
2,930,000 |
|
|
0.15 |
|
||||
| Foreign exchange impact of lease liabilities and forward contracts |
|
1,414,000 |
|
|
0.07 |
|
|
(9,817,000 |
) |
|
(0.49 |
) |
||||
| Gain due to realignment of inventory at customer distribution centers |
|
- |
|
|
- |
|
|
(643,000 |
) |
|
(0.03 |
) |
||||
| Change in fair value of compound net derivative liability |
|
(1,700,000 |
) |
|
(0.09 |
) |
|
4,050,000 |
|
|
0.20 |
|
||||
| Tax effect (a) |
|
(3,549,000 |
) |
|
(0.19 |
) |
|
(1,152,000 |
) |
|
(0.06 |
) |
||||
| Total non-cash items impacting net income | $ |
10,647,000 |
|
$ |
0.56 |
|
$ |
3,454,000 |
|
$ |
0.17 |
|
||||
| Cash items impacting net income | ||||||||||||||||
| IEEPA tariff refunds | $ |
(11,052,000 |
) |
$ |
(0.58 |
) |
$ |
- |
|
$ |
- |
|
||||
| Transition expenses and severance (b) |
|
4,923,000 |
|
|
0.26 |
|
|
- |
|
|
- |
|
||||
| Net tariff costs paid for products sold before price increases were effective |
|
- |
|
|
- |
|
|
2,124,000 |
|
|
0.11 |
|
||||
| Tax effect (a) |
|
1,532,000 |
|
|
0.08 |
|
|
(531,000 |
) |
|
(0.03 |
) |
||||
| Total cash items impacting net income | $ |
(4,597,000 |
) |
$ |
(0.24 |
) |
$ |
1,593,000 |
|
$ |
0.08 |
|
||||
| (a) Tax effect is calculated by applying an income tax rate of |
||||||||||||||||
| (b) For the six months ended September 30, 2026, consists of |
||||||||||||||||
| Items Impacting Gross Profit for the Three Months Ended September 30, 2026 and 2025 | Exhibit 3 |
|||||||||||||
| Three Months Ended September 30, | ||||||||||||||
2026 |
2025 |
|||||||||||||
| $ | Gross Margin | $ | Gross Margin | |||||||||||
| GAAP gross profit | $ |
40,947,000 |
|
24.2 |
% |
$ |
42,727,000 |
|
19.3 |
% |
||||
| Non-cash items impacting gross profit | ||||||||||||||
| Core and finished goods premium amortization | $ |
3,544,000 |
|
2.1 |
% |
$ |
2,988,000 |
|
1.3 |
% |
||||
| Revaluation - cores on customers' shelves |
|
1,238,000 |
|
0.7 |
% |
|
1,225,000 |
|
0.6 |
% |
||||
| Gain due to realignment of inventory at customer distribution centers (a) |
|
- |
|
- |
|
|
(643,000 |
) |
1.1 |
% |
||||
| Total non-cash items impacting gross profit | $ |
4,782,000 |
|
2.8 |
% |
$ |
3,570,000 |
|
3.0 |
% |
||||
| Cash items impacting gross profit | ||||||||||||||
| IEEPA tariff refunds | $ |
(11,052,000 |
) |
-6.5 |
% |
$ |
- |
|
- |
|
||||
| Transition expenses and severance |
|
1,358,000 |
|
0.8 |
% |
|
- |
|
- |
|
||||
| Net tariff costs paid for products sold before price increases were effective |
|
- |
|
- |
|
|
698,000 |
|
0.3 |
% |
||||
| Total cash items impacting gross profit | $ |
(9,694,000 |
) |
-5.7 |
% |
$ |
698,000 |
|
0.3 |
% |
||||
(a) gross margin reflecting impact to net sales and cost of goods sold |
||||||||||||||
Items Impacting Gross Profit for the Six Months Ended September 30, 2026 and 2025 |
Exhibit 4 |
|||||||||||||
| Six Months Ended September 30, | ||||||||||||||
2026 |
2025 |
|||||||||||||
| $ | Gross Margin | $ | Gross Margin | |||||||||||
| GAAP gross profit | $ |
68,121,000 |
|
20.2 |
% |
$ |
76,644,000 |
|
18.7 |
% |
||||
| Non-cash items impacting gross profit | ||||||||||||||
| Core and finished goods premium amortization | $ |
6,950,000 |
|
2.1 |
% |
$ |
5,835,000 |
|
1.4 |
% |
||||
| Revaluation - cores on customers' shelves |
|
1,943,000 |
|
0.6 |
% |
|
2,251,000 |
|
0.5 |
% |
||||
| Gain due to realignment of inventory at customer distribution centers (a) |
|
- |
|
- |
|
|
(643,000 |
) |
0.5 |
% |
||||
| Total non-cash items impacting gross profit | $ |
8,893,000 |
|
2.6 |
% |
$ |
7,443,000 |
|
2.5 |
% |
||||
| Cash items impacting gross profit | ||||||||||||||
| IEEPA tariff refunds | $ |
(11,052,000 |
) |
-3.3 |
% |
$ |
- |
|
- |
|
||||
| Transition expenses and severance |
|
4,125,000 |
|
1.2 |
% |
|
- |
|
- |
|
||||
| Net tariff costs paid for products sold before price increases were effective |
|
- |
|
- |
|
|
2,124,000 |
|
0.5 |
% |
||||
| Total cash items impacting gross profit | $ |
(6,927,000 |
) |
-2.1 |
% |
$ |
2,124,000 |
|
0.5 |
% |
||||
(a) gross margin reflecting impact to net sales and cost of goods sold |
||||||||||||||
| Items Impacting EBITDA for the Three and Six Months Ended September 30, 2026 and 2025 | Exhibit 5 |
|||||||||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|||||
| GAAP net income (loss) | $ |
1,358,000 |
|
$ |
(2,149,000 |
) |
$ |
(12,063,000 |
) |
$ |
893,000 |
|
||||
| Interest expense, net |
|
11,289,000 |
|
|
12,699,000 |
|
|
23,333,000 |
|
|
25,511,000 |
|
||||
| Income tax expense |
|
562,000 |
|
|
3,561,000 |
|
|
3,931,000 |
|
|
5,986,000 |
|
||||
| Depreciation and amortization |
|
2,215,000 |
|
|
2,373,000 |
|
|
4,485,000 |
|
|
4,822,000 |
|
||||
| EBITDA | $ |
15,424,000 |
|
$ |
16,484,000 |
|
$ |
19,686,000 |
|
$ |
37,212,000 |
|
||||
| Non-cash items impacting EBITDA | ||||||||||||||||
| Core and finished goods premium amortization | $ |
3,544,000 |
|
$ |
2,988,000 |
|
$ |
6,950,000 |
|
$ |
5,835,000 |
|
||||
| Revaluation - cores on customers' shelves |
|
1,238,000 |
|
|
1,225,000 |
|
|
1,943,000 |
|
|
2,251,000 |
|
||||
| Share-based compensation expenses |
|
3,451,000 |
|
|
1,984,000 |
|
|
5,589,000 |
|
|
2,930,000 |
|
||||
| Foreign exchange impact of lease liabilities and forward contracts |
|
3,011,000 |
|
|
(1,469,000 |
) |
|
1,414,000 |
|
|
(9,817,000 |
) |
||||
| Gain due to realignment of inventory at customer distribution centers |
|
- |
|
|
(643,000 |
) |
|
- |
|
|
(643,000 |
) |
||||
| Change in fair value of compound net derivative liability . |
|
(3,240,000 |
) |
|
2,260,000 |
|
|
(1,700,000 |
) |
|
4,050,000 |
|
||||
| Total non-cash items impacting EBITDA | $ |
8,004,000 |
|
$ |
6,345,000 |
|
$ |
14,196,000 |
|
$ |
4,606,000 |
|
||||
| Cash items impacting EBITDA | ||||||||||||||||
| IEEPA tariff refunds |
|
(11,052,000 |
) |
|
- |
|
|
(11,052,000 |
) |
|
- |
|
||||
| Transition expenses and severance |
|
1,909,000 |
|
|
- |
|
|
4,923,000 |
|
|
- |
|
||||
| Net tariff costs paid for products sold before price increases were effective |
|
- |
|
|
698,000 |
|
|
- |
|
|
2,124,000 |
|
||||
| Total cash items impacting EBITDA | $ |
(9,143,000 |
) |
$ |
698,000 |
|
$ |
(6,129,000 |
) |
$ |
2,124,000 |
|
||||
Items Impacting Operating Income for the Three and Six Months Ended September 30, 2026 and 2025 |
Exhibit 6 |
|||||||||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|||||
| GAAP operating income | $ |
9,969,000 |
|
$ |
16,371,000 |
|
$ |
13,501,000 |
|
$ |
36,440,000 |
|
||||
| Non-cash items impacting operating income | ||||||||||||||||
| Core and finished goods premium amortization | $ |
3,544,000 |
|
$ |
2,988,000 |
|
$ |
6,950,000 |
|
$ |
5,835,000 |
|
||||
| Revaluation - cores on customers' shelves |
|
1,238,000 |
|
|
1,225,000 |
|
|
1,943,000 |
|
|
2,251,000 |
|
||||
| Share-based compensation expenses |
|
3,451,000 |
|
|
1,984,000 |
|
|
5,589,000 |
|
|
2,930,000 |
|
||||
| Foreign exchange impact of lease liabilities and forward contracts |
|
3,011,000 |
|
|
(1,469,000 |
) |
|
1,414,000 |
|
|
(9,817,000 |
) |
||||
| Gain due to realignment of inventory at customer distribution centers |
|
- |
|
|
(643,000 |
) |
|
- |
|
|
(643,000 |
) |
||||
| Total non-cash items impacting operating income | $ |
11,244,000 |
|
$ |
4,085,000 |
|
$ |
15,896,000 |
|
$ |
556,000 |
|
||||
| Cash items impacting operating income | ||||||||||||||||
| IEEPA tariff refunds |
|
(11,052,000 |
) |
|
- |
|
|
(11,052,000 |
) |
|
- |
|
||||
| Transition expenses and severance |
|
1,909,000 |
|
|
- |
|
|
4,923,000 |
|
|
- |
|
||||
| Net tariff costs paid for products sold before price increases were effective |
|
- |
|
|
698,000 |
|
|
- |
|
|
2,124,000 |
|
||||
| Total cash items impacting operating income | $ |
(9,143,000 |
) |
$ |
698,000 |
|
$ |
(6,129,000 |
) |
$ |
2,124,000 |
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20261109449667/en/
Gary S. Maier
Vice President, Corporate Communications & IR
(310) 972-5124
Source: Motorcar Parts of America, Inc.