Motorcar Parts of America Provides Clarification of the Delay in Filing its Fiscal Second Quarter 10-Q
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.
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
Gary S. Maier(310) 471-1288
Source: Motorcar Parts of America, Inc.