Motorcar Parts of America Provides Clarification of the Delay in Filing its Fiscal Second Quarter 10-Q
November 12 2018 - 8:00AM
Motorcar Parts of America, Inc. (Nasdaq:
MPAA) today announced the company is continuing to evaluate its
accounting policies related to new business contracts.
As announced on Friday, the company has delayed the filing of
its fiscal second quarter Form 10-Q while it reviews its accounting
practices primarily related to the timing of recognizing certain
expenses incurred in connection with new business. These expenses
are primarily allowances for core inventory purchase obligations at
the start of a new business relationship.
Notwithstanding the delay in filing its Form 10-Q for the fiscal
2019 second quarter, the company expects to report record adjusted
net sales for the first half. In addition, orders for the current
fiscal third quarter are strong and the company anticipates record
adjusted net sales for the second half. Adjusted net sales include
adjustments for customer allowances and initial return accruals
related to new business. The company is currently unable to
reconcile adjusted net sales to GAAP net sales due to the issues
discussed above.
The company does not believe this review of the accounting for
new business contracts will affect its liquidity, operations or
strong growth momentum.
About Motorcar Parts of America
Motorcar Parts of America, Inc. is a
remanufacturer, manufacturer and distributor of automotive
aftermarket parts -- including alternators, starters, wheel bearing
and hub assemblies, 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 equipment for performance, endurance and
production testing of alternators, starters, electric motors,
inverters and belt starter generators for both the OE 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
California, Mexico, Malaysia and China, 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 2018 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.
CONTACT:
Gary S. Maier
(310) 471-1288
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