CORRECTING and REPLACING Motorcar Parts of America Reports Fiscal 2021 Second

LOS ANGELES–(BUSINESS WIRE)–In the last table of the release (Exhibit 5), please note that the row headers for the last three lines have been updated.

The updated release reads:

MOTORCAR PARTS OF AMERICA REPORTS FISCAL 2021 SECOND QUARTER

— Record Sales and Profitability with Continuing Positive Cash Flow From Operations —

Motorcar Parts of America, Inc. (Nasdaq: MPAA) today reported results for its fiscal 2021 second quarter ended September 30, 2020 — reflecting continued favorable sales momentum with increased profitability and positive cash flow from operations.

Net sales for the fiscal 2021 second quarter were $154.7 million compared with $150.4 million for the same period a year earlier. Net sales for the quarter include $12.8 million in core revenue due to a realignment of inventory at two customer distribution centers with expected future sales benefits as product mix changes.

Net income for the fiscal 2021 second quarter was $15.2 million, or $0.78 per diluted share, compared with net income of $6.2 million, or $0.32 per diluted share, a year ago. Additional details of items impacting net income are shown in Exhibit 1.

“Notwithstanding the continued impact of global pandemic challenges, we reported solid results for the quarter and six-month period. The company’s strategic growth initiatives are proceeding as planned – including the launch of our brake caliper production facility, as detailed in a recent announcement – and we are well-positioned in the industry,” said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America.

“In today’s COVID environment, the automobile, more than ever, is the preferable mode of transportation for activities such as work, shopping, appointments, and family vacations. As a consequence, maintenance and repair activities are even more essential. The products we provide are critical to the automobile and the demand for our offerings continue to expand,” Joffe added.

Results for the fiscal second quarter were impacted by approximately $2.0 million on a pre-tax basis, or $0.08 per share on a tax-effected basis, for cost of goods sold and operating expenses related to safety and health initiatives associated with COVID-19. Approximately $1.3 million of the $2.0 million relates to incremental bonuses and wages paid to the company’s dedicated operating employees on the front line. The balance relates to personal protection equipment (PPE) and social distancing initiatives.

Cash generated from operating activities was $16.9 million for the fiscal 2021 second quarter and bank debt less cash for the same period was reduced by $12.3 million to $95.4 million at September 30, 2020.

Gross profit for the fiscal 2021 second quarter was $39.7 million compared with $36.6 million a year earlier. Gross profit as a percentage of net sales for the fiscal 2021 second quarter was 25.7 percent compared with 24.3 percent a year earlier. Additional details of items impacting gross profit are shown in Exhibit 3.

Six-Month Results

Net sales for the fiscal 2021 six-month period were $250.1 million compared with $259.5 million a year earlier. Net sales for the six months ended September 30, 2020 benefited by $12.8 million due to a realignment of inventory at two customer distribution centers with expected future sales benefits as product mix changes, as noted in the quarterly sales discussion.

Net income for the fiscal 2021 six-month period was $12.2 million, or $0.63 per diluted share, compared with net income of $38,000, or $0.00 per diluted share, a year ago. Additional details of items impacting net income are shown in Exhibit 2.

Cash generated from operating activities was $39.3 million during the six months ended September 30, 2020, and bank debt less cash was reduced by $31.1 million.

Gross profit for the fiscal 2021 six-month period was $53.1 million compared with $54.2 million a year earlier. Gross profit as a…