UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File No. 001-33861 MOTORCAR PARTS OF AMERICA, INC. (Exact name of registrant as specified in its charter) New York 11-2153962 (State or other jurisdiction of i ...

Motorcar Parts of America, Inc. (NASDAQ:MPAA) Q4 2021 Earnings Conference Call June 14, 2021 1:00 PM ET Company Participants Gary Maier - Investor Relations Selwyn Joffe - Chairman, President & Chief Executive Officer David Lee - Chief Financial Officer Conference Call Participants Scott Stember - C.L. King Brian Nagel - Oppenheimer Sarkis Sherbetchyan - B. Riley Securities Michael Zabran - ROTH Capital Matt Dhane - Tieton Capital Management Operator Good day. Thank you for standby. Welcome to the Motorcar ...

Part I [Business](index=6&type=section&id=Item%201.%20Business) MPA is a leading supplier of automotive aftermarket parts and diagnostic equipment, operating in the **$130 billion** North American market with a focus on remanufacturing and EV/aerospace test solutions - MPA operates in the **$130 billion** non-discretionary automotive aftermarket in North America, with a core business in rotating electrical parts and a strategic expansion into brake products and heavy-duty applications[20](index=20&type=chunk)[21](index=21&type=chunk) - Strategically expanding into test solutions and diagnostic equipment for the **EV and aerospace industries**, targeting a multi-billion-dollar global market[22](index=22&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) Customer Concentration (Fiscal Years 2019-2021) | Customer Group | FY 2021 (%) | FY 2020 (%) | FY 2019 (%) | | :--- | :--- | :--- | :--- | | **Three Largest Customers (Aggregate)** | 87% | 84% | 83% | | **Largest Customer (AutoZone)** | 42% | 38% | 38% | - Remanufacturing process primarily in **Mexico, Canada, and Malaysia**, utilizing lean manufacturing and IATF 16949/ISO 9001 quality standards[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) - As of March 31, 2021, the company employed approximately **5,700 people globally**, with **4,800 in Mexico** and **4,700 production employees unionized**[57](index=57&type=chunk) [Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from the COVID-19 pandemic, high customer concentration, intense competition, and challenges associated with extensive offshore operations - COVID-19 pandemic poses significant risks including supply chain delays, increased freight costs, and reduced consumer demand[71](index=71&type=chunk)[73](index=73&type=chunk) - High customer concentration is a major risk, with the **three largest customers accounting for 87% of net sales in fiscal 2021**[74](index=74&type=chunk) - The business is highly competitive, facing pressure from large domestic and international suppliers and emerging Chinese manufacturers[75](index=75&type=chunk)[76](index=76&type=chunk) - Offshore operations, especially in Mexico, expose the company to political, economic, and currency risks, with **23% of fiscal 2021 expenses in non-USD currencies**[98](index=98&type=chunk)[100](index=100&type=chunk) - Potential new tariffs on goods imported from China and other countries could materially affect operations[102](index=102&type=chunk) [Unresolved Staff Comments](index=21&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) No unresolved staff comments have been reported by the company - None [Properties](index=22&type=section&id=Item%202.%20Properties) The company's material facilities are primarily leased, located in the US, Mexico, Canada, and Asia, including over **1 million sq ft** in Tijuana, Mexico Major Leased Facilities | Location | Type of Facility | Approx. Square Feet | | :--- | :--- | :--- | | Torrance, CA | Remanufacturing, Warehouse, Admin | 231,000 | | Tijuana, Mexico | Distribution Center and Office | 410,000 | | Tijuana, Mexico | Remanufacturing, Warehouse, Office | 312,000 | | Tijuana, Mexico | Remanufacturing, Warehouse, Office | 199,000 | | Tijuana, Mexico | Core Induction, Warehouse, Office | 173,000 | | Ontario, Canada | Remanufacturing, Warehouse, Office | 157,000 | [Legal Proceedings](index=22&type=section&id=Item%203.%20Legal%20Proceedings) The company is disputing a **$17 million** claim from U.S. Customs and Border Protection for additional duties on products imported from Mexico - U.S. Customs and Border Protection asserts the company owes approximately **$17 million in additional duties** for products imported from Mexico from 2011 to mid-2018, which the company disputes[117](index=117&type=chunk) [Mine Safety Disclosures](index=22&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=23&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NASDAQ under MPAA, with **$1.14 million** in share repurchases in Q4 FY2021 and **$20.17 million** remaining in the repurchase program - The company's common stock trades on the **NASDAQ Global Select Market** under the symbol **MPAA**[120](index=120&type=chunk) Share Repurchase Activity (Q4 FY2021) | Period | Total Shares Purchased | Average Price Paid Per Share ($) | Dollar Value Remaining Under Program ($) | | :--- | :--- | :--- | :--- | | Feb 1 - Feb 28, 2021 | 54,960 | $20.72 | $20,169,000 | | **Total Q4** | **54,960** | **-** | **$20,169,000** | [Selected Financial Data](index=26&type=section&id=Item%206.%20Selected%20Financial%20Data) This section is intentionally left blank by the company - None [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses fiscal 2021 performance, noting **$540.8 million** in net sales, a gross margin decline to **20.2%**, strong operating cash flow of **$56.1 million**, and a **$71.8 million** debt reduction [Impact of COVID-19](index=27&type=section&id=Impact%20of%20COVID-19) The COVID-19 pandemic caused demand fluctuations and supply chain disruptions, leading to **$7.3 million** in related expenses in fiscal 2021, partially offset by **$1.3 million** in government assistance - In fiscal 2021, the company incurred **$7.316 million** in total COVID-19 related expenses[137](index=137&type=chunk) - The company received **$1.301 million** in government assistance payments from Canada and Asia to offset COVID-related costs[137](index=137&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Fiscal 2021 net sales increased to **$540.8 million**, gross margin declined to **20.2%** due to higher costs, and net income was **$21.5 million**, a turnaround from a **$7.3 million** loss in fiscal 2020 Fiscal Year 2021 vs. 2020 Performance | Metric | FY 2021 ($) | FY 2020 ($) | | :--- | :--- | :--- | | Net Sales | $540,782,000 | $535,831,000 | | Gross Profit | $109,461,000 | $118,400,000 | | Gross Profit % | 20.2% | 22.1% | | Net Income (Loss) | $21,476,000 | $(7,290,000) | - Gross profit in FY2021 was negatively impacted by **$5.268 million** in COVID-related costs and **$16.353 million** in Mexico operations transition expenses[191](index=191&type=chunk)[192](index=192&type=chunk) - The company recorded a non-cash gain of **$17.606 million** from foreign exchange impacts in FY2021, compared to an **$18.201 million** loss in FY2020[195](index=195&type=chunk)[199](index=199&type=chunk) Fiscal Year 2020 vs. 2019 Performance | Metric | FY 2020 ($) | FY 2019 ($) | | :--- | :--- | :--- | | Net Sales | $535,831,000 | $472,797,000 | | Gross Profit | $118,400,000 | $89,174,000 | | Gross Profit % | 22.1% | 18.9% | | Net (Loss) | $(7,290,000) | $(7,849,000) | [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity improved in fiscal 2021 with operating cash flow increasing to **$56.1 million**, enabling a **$71.8 million** debt reduction, with **$125.3 million** available under the credit facility Cash Flow Summary (Fiscal Years 2019-2021) | Cash Flow Activity | FY 2021 ($) | FY 2020 ($) | FY 2019 ($) | | :--- | :--- | :--- | :--- | | **Operating Activities** | $56,089,000 | $18,795,000 | $(40,328,000) | | **Investing Activities** | $(14,214,000) | $(11,594,000) | $(22,610,000) | | **Financing Activities** | $(76,567,000) | $32,153,000 | $59,936,000 | - The company has a **$268.6 million** senior secured credit facility, with **$84.0 million** outstanding on the revolving facility and **$20.5 million** on the term loan as of March 31, 2021[226](index=226&type=chunk)[230](index=230&type=chunk)[419](index=419&type=chunk) - The company was in compliance with all financial covenants as of March 31, 2021, with a senior leverage ratio of **1.46** and a fixed charge coverage ratio of **1.26**[228](index=228&type=chunk)[229](index=229&type=chunk) Receivable Discount Program Summary (FY2021 vs FY2020) | Metric | FY 2021 ($) | FY 2020 ($) | | :--- | :--- | :--- | | Receivables Discounted | $491,285,000 | $461,484,000 | | Amount of Discount as Interest Expense | $9,513,000 | $14,780,000 | [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include interest rate fluctuations, foreign currency exposure, and customer credit concentration, with mitigation strategies in place - A hypothetical **1% increase in interest rates** would increase annual net interest expense by approximately **$1.045 million** on its **$104.5 million** net debt[244](index=244&type=chunk) - The company uses forward contracts to mitigate foreign currency risks, where a **10% adverse change** in exchange rates would have increased operating expenses by approximately **$3.932 million** at March 31, 2021[245](index=245&type=chunk) - In fiscal 2021, the company recorded a **$7.713 million gain** on forward currency contracts and a **$9.893 million gain** on remeasurement of foreign currency-denominated lease liabilities[245](index=245&type=chunk) [Financial Statements and Supplementary Data](index=45&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section refers to the consolidated financial statements and related notes, commencing on page F-1 - The required information is set forth in the consolidated financial statements, commencing on page F-1[247](index=247&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=45&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None [Controls and Procedures](index=45&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of March 31, 2021, with an unqualified audit opinion from Ernst & Young LLP - Management concluded that disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2021[250](index=250&type=chunk) - Management concluded that internal control over financial reporting was effective as of March 31, 2021, based on the COSO framework (2013)[253](index=253&type=chunk) - No material changes in internal control over financial reporting occurred during the period[255](index=255&type=chunk) [Other Information](index=46&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None Part III [Directors, Executive Officers and Corporate Governance](index=47&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the company's Definitive Proxy Statement - Information is incorporated by reference to the company's Proxy Statement[260](index=260&type=chunk) [Executive Compensation](index=47&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item is incorporated by reference from the company's Definitive Proxy Statement - Information is incorporated by reference to the Proxy Statement[261](index=261&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=47&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information for this item is incorporated by reference from the company's Definitive Proxy Statement - Information is incorporated by reference to the Proxy Statement[262](index=262&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=47&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item is incorporated by reference from the company's Definitive Proxy Statement - Information is incorporated by reference to the Proxy Statement[263](index=263&type=chunk) [Principal Accountant Fees and Services](index=47&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information for this item is incorporated by reference from the company's Definitive Proxy Statement - Information is incorporated by reference to the Proxy Statement[264](index=264&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=48&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all documents filed as part of the Form 10-K report, including financial statements, schedules, and various exhibits - This item provides an index to the Consolidated Financial Statements and lists all exhibits filed with the report[266](index=266&type=chunk)[267](index=267&type=chunk) [Form 10-K Summary](index=52&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for this item - None Financial Statements [Consolidated Financial Statements](index=59&type=section&id=Consolidated%20Financial%20Statements) The audited consolidated financial statements for fiscal years 2019-2021 are presented, showing fiscal 2021 total assets of **$847.9 million**, net sales of **$540.8 million**, and net income of **$21.5 million** Consolidated Balance Sheet Highlights (As of March 31, 2021) | Account | Amount ($) | | :--- | :--- | | Total Current Assets | $422,856,000 | | Total Assets | $847,882,000 | | Total Current Liabilities | $326,131,000 | | Total Liabilities | $546,737,000 | | Total Shareholders' Equity | $301,145,000 | Consolidated Statement of Operations Highlights (Year Ended March 31, 2021) | Account | Amount ($) | | :--- | :--- | | Net Sales | $540,782,000 | | Gross Profit | $109,461,000 | | Operating Income | $46,633,000 | | Net Income | $21,476,000 | | Diluted EPS | $1.11 | - Ernst & Young LLP issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting as of March 31, 2021[286](index=286&type=chunk)[294](index=294&type=chunk) - Critical Audit Matters include the complexity of accounting for **'Contractual Agreements with Core Exchange Programs'** and the completeness of **'Marketing Allowances'**[298](index=298&type=chunk)[299](index=299&type=chunk)[302](index=302&type=chunk)

Financial Data and Key Metrics Changes - Net sales for Q3 2021 were $122.6 million, down from $125.6 million year-over-year, impacted by order delays of approximately $17 million due to COVID-19 challenges [22][27] - Gross profit for Q3 2021 was $24.2 million, compared to $27.7 million a year earlier, with gross profit as a percentage of net sales at 19.8% versus 22.0% [23] - Net income for Q3 2021 was $8.5 million or $0.44 per diluted share, compared to $865,000 or $0.04 per diluted share a year ago [26] - Cash flow from operations for Q3 2021 was $33.2 million, up from $22.3 million in Q3 2020 [30] - Net debt was reduced by 29.1% to $67.6 million from $94.4 million at September 30, 2020 [10][30] Business Line Data and Key Metrics Changes - The product mix for Q3 2021 consisted of 72% rotating electrical, 14% wheel hub, 12% brake products, and 2% others, with a decline in rotating electrical compared to the prior year [44] - The company built inventory to support anticipated strong demand for upcoming quarters [12] Market Data and Key Metrics Changes - The average age of the vehicle fleet reached approximately 12 years, leading to increased demand for parts replacement [14] - The company noted strong demand for used cars, as consumers prefer them over new cars during economic uncertainty [13] Company Strategy and Development Direction - The company is focused on enhancing its position as a premier supplier of automotive aftermarket parts in North America and emerging electric vehicle markets [15] - The company is optimistic about growth and profitability over the next several years, particularly in the electric vehicle and aerospace sectors [18] Management's Comments on Operating Environment and Future Outlook - Management indicated that while sales growth has been restrained by global supply chain challenges, bottom line performance is expected to benefit from enhanced operating efficiencies as the pandemic situation improves [17] - The company expects to see a recovery in demand and shipment volumes, particularly in January, with a double-digit increase anticipated [53] Other Important Information - The company has generated positive cash flow from operating activities for five consecutive quarters [31] - The company is optimistic about its electric vehicle subsidiary and its potential for growth [62] Q&A Session Summary Question: Details on the $17 million order delays - Management clarified that the delays were primarily due to supply chain challenges, not demand issues, with inventory reductions from customers pushing orders into January [40][41] Question: Gross margin fluctuations - Management indicated that the largest impact on gross margins was due to supply chain challenges and higher freight costs, with expectations for improved margins as revenues increase [48] Question: Cash generation sustainability - Management stated that cash flow generation will fluctuate based on sales levels and growth, but they believe they can continue to generate positive cash flow [59] Question: New product startup costs - Management expects startup costs to wind down by the first quarter of the next fiscal year, with some marginal expenses remaining [61] Question: Electric vehicle initiatives - Management expressed optimism about the electric vehicle space, indicating significant traction with top companies and potential for growth [102] Question: Accounts receivable drop - Management noted that the drop was primarily a timing phenomenon, with strong cash collections during the quarter [107]

[PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited financial statements detail the company's financial position, operations, and cash flows for the period ended December 31, 2020 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2020, total assets increased, driven by higher inventory and offset by lower cash, while debt was significantly reduced Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2020 | Mar 31, 2020 | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | $12,800 | $49,616 | ($36,816) | | Accounts receivable — net | $45,271 | $91,748 | ($46,477) | | Inventory | $296,281 | $234,680 | $61,601 | | Total current assets | $395,108 | $409,116 | ($14,008) | | Total Assets | $799,236 | $777,029 | $22,207 | | **Liabilities & Equity** | | | | | Revolving loan | $59,000 | $152,000 | ($93,000) | | Total current liabilities | $298,826 | $318,492 | ($19,666) | | Total liabilities | $499,552 | $501,509 | ($1,957) | | Total shareholders' equity | $299,684 | $275,520 | $24,164 | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net income surged for the three and nine-month periods despite slightly lower sales, primarily due to significant foreign exchange gains Statement of Income Highlights (in thousands, except per share data) | Metric | Q3 FY2021 (3 mo ended 12/31/20) | Q3 FY2020 (3 mo ended 12/31/19) | YoY Change | 9 Months FY2021 (ended 12/31/20) | 9 Months FY2020 (ended 12/31/19) | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Sales | $122,568 | $125,574 | -2.4% | $372,654 | $385,096 | -3.2% | | Gross Profit | $24,241 | $27,661 | -12.4% | $77,354 | $81,817 | -5.5% | | Operating Income | $15,893 | $9,246 | +71.9% | $41,163 | $22,230 | +85.2% | | Net Income | $8,469 | $865 | +879.1% | $20,641 | $903 | +2185.8% | | Diluted EPS | $0.44 | $0.04 | +1000% | $1.07 | $0.05 | +2040% | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow improved significantly, shifting from a net use to a source of cash, which was primarily used for debt repayment Cash Flow Summary (Nine Months Ended Dec 31, in thousands) | Cash Flow Category | 2020 | 2019 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $72,484 | ($4,410) | | Net cash used in investing activities | ($12,295) | ($9,650) | | Net cash (used in) provided by financing activities | ($97,734) | $13,546 | | **Net decrease in cash and cash equivalents** | **($36,816)** | **($453)** | - The company significantly paid down its revolving loan, with repayments of **$93.0 million** in the first nine months of fiscal 2021, compared to net borrowings in the prior year[26](index=26&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's single reportable segment, high customer concentration, credit facility terms, and a customs duty dispute - The company's business comprises three operating segments, but they are aggregated into **one reportable segment** for financial reporting purposes[29](index=29&type=chunk) Significant Customer Concentration (as % of Net Sales) | Customer | Nine Months Ended 12/31/20 | Nine Months Ended 12/31/19 | | :--- | :--- | :--- | | Customer A | 42% | 39% | | Customer B | 24% | 21% | | Customer C | 21% | 23% | - The company is party to a **$268.6 million senior secured credit facility**, consisting of a $238.6 million revolving facility and a $30.0 million term loan, maturing in June 2023[53](index=53&type=chunk)[58](index=58&type=chunk) - The company uses forward foreign currency exchange contracts to mitigate risk from fluctuations in the Mexican peso and Chinese yuan, with a notional value of **$37.6 million** at quarter-end[76](index=76&type=chunk)[78](index=78&type=chunk) - The U.S. Customs and Border Protection has asserted that the company owes approximately **$17 million** in additional duties from 2011 to mid-2018, which the company disputes[101](index=101&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, highlighting COVID-19 impacts, decreased sales, lower gross margins, and improved liquidity used for debt repayment [Impact of the Novel Coronavirus (COVID-19)](index=25&type=section&id=Impact%20of%20the%20Novel%20Coronavirus%20(COVID-19)) The pandemic caused supply chain disruptions and increased costs, which were partially offset by government assistance payments - For the nine months ended Dec 31, 2020, the company incurred **$5,953,000 in COVID-19 related costs** for expanded benefits, supplies, and other expenses[112](index=112&type=chunk) - The company received government assistance payments totaling **$1,291,000** for the nine months ended Dec 31, 2020, which were recorded as a reduction of cost of goods sold and operating expenses[112](index=112&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Sales decreased due to supply chain disruptions, while gross margin fell from higher costs, but operating income was boosted by foreign exchange gains - Q3 FY2021 net sales were negatively impacted by order delays of approximately **$17,000,000** due to global supply chain and logistics disruptions related to COVID-19[117](index=117&type=chunk) Factors Impacting Q3 FY2021 Gross Profit (in thousands) | Item | Impact on Gross Profit | | :--- | :--- | | COVID-19 related costs | ($1,052) | | Mexico expansion transition expenses | ($4,217) | | Amortization of core premiums | ($1,528) | | Revised tariff costs benefit | $688 | - For the nine months ended Dec 31, 2020, net sales included **$12,779,000 in core revenue** from an inventory realignment at two customer distribution centers[131](index=131&type=chunk) - Interest expense for the nine months ended Dec 31, 2020, **decreased by 38.3% to $12.1 million** from $19.6 million in the prior year, due to lower interest rates and lower average debt balances[142](index=142&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity strengthened with robust operating cash flow, enabling significant debt reduction while maintaining covenant compliance - Net cash provided by operating activities was **$72,484,000** for the nine months ended Dec 31, 2020, compared to net cash used of $4,410,000 in the prior-year period[148](index=148&type=chunk) - The company paid down its outstanding debt by **$95,813,000** during the nine months ended December 31, 2020[150](index=150&type=chunk)[155](index=155&type=chunk) Financial Covenant Compliance (as of Dec 31, 2020) | Covenant | Requirement | Actual Calculation | | :--- | :--- | :--- | | Maximum senior leverage ratio | ≤ 3.00 | 1.18 | | Minimum fixed charge coverage ratio | ≥ 1.10 | 1.24 | - As of December 31, 2020, **$21.3 million remained available** under the company's authorized share repurchase program[146](index=146&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its market risk exposures since its last Annual Report on Form 10-K - There have been **no material changes in market risk** since the company's Annual Report on Form 10-K as of March 31, 2020[171](index=171&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective, with no material changes to internal controls - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2020[173](index=173&type=chunk) - **No changes occurred** during the quarter ended December 31, 2020, that materially affected or are reasonably likely to materially affect the company's internal control over financial reporting[178](index=178&type=chunk) [PART II — OTHER INFORMATION](index=36&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) There have been no material changes to the company's litigation matters since its last Annual Report - **No material changes** to litigation matters were reported since the last Annual Report on Form 10-K[180](index=180&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors disclosed in the company's last Annual Report - **No material changes** to risk factors were reported since the last Annual Report on Form 10-K[181](index=181&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased during the quarter, with $21.3 million remaining available under the authorized program - The company **did not repurchase any of its equity securities** during the three months ended December 31, 2020[183](index=183&type=chunk) - As of December 31, 2020, **$21,308,000 remained available** under the company's $37,000,000 share repurchase program[183](index=183&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) There was no other information to report for the period - **No information was reported** under this item[184](index=184&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including Sarbanes-Oxley certifications and Interactive Data Files

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File No. 001-33861 MOTORCAR PARTS OF AMERICA, INC. (Exact name of registrant as specified in its charter) New York 11-2153962 (State or other jurisdiction ...

Motorcar Parts of America, Inc. (NASDAQ:MPAA) Q1 2021 Results Conference Call August 10, 2020 1:00 PM ET Company Participants Gary Maier - IR Selwyn Joffe - Chairman, President and CEO David Lee - CFO Conference Call Participants Matt Koranda - Roth Capital Ryan Sigdahl - Craig-Hallum Capital Brian Nagel - Oppenheimer Scott Stember - CL King Sarkis Sherbetchyan - B. Riley Bill Dezellem - Tieton Capital Operator Ladies and gentlemen, thank you for standing by and welcome to the Motorcar Parts of America, Inc ...

FOR THE TRANSITION PERIOD FROM TO UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 001-33861 MOTORCAR PARTS OF AMERICA, INC. (Exact name of registrant as specified in its charter) New York 11-2153962 (State or other jurisdiction of i ...

Investor Presentation – August 2020 ® motorcar parts of america, inc. "The Global Leader for Parts and Solutions That Move Our World Today and Tomorrow" Safe Harbor Statement 1 This presentation and any question and answer period or other communications afterwards may contain forward-looking statements with respect to the financial condition, results of operation and business of the company made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking st ...

Motorcar Parts of America, Inc. (NASDAQ:MPAA) Q4 2020 Earnings Conference Call June 15, 2020 1:00 PM ET Company Participants Gary Maier - Investor Relations Selwyn Joffe - Chairman, President and Chief Executive Officer David Lee - Chief Financial Officer Conference Call Participants Brian Nagel - Oppenheimer & Co. Ryan Sigdahl - Craig-Hallum Capital Scott Stember - CL King Associates Sarkis Sherbetchyan - B. Riley FBR William Dezellem - Tieton Capital Operator Ladies and gentlemen, thank you for standing ...