LOS ANGELES, Dec. 12, 2011 (GLOBE NEWSWIRE) -- Motorcar Parts of America, Inc. (Nasdaq:MPAA) today said it has determined that changes in certain historical accounting policies utilized by Fenwick Automotive Products Limited (Fenco) prior to the company's acquisition in May 2011 of this previously privately held Canadian company are necessary in order to file its Form 10-Q filing with the U.S. Securities and Exchange Commission for its fiscal 2012 second quarter ended September 30, 2011.
Fenco's accounting policies did not previously reflect net-of-core accounting in recording sales and cost of goods sold, as utilized by Motorcar Parts of America and in accordance with U.S. generally accepted accounting principles (GAAP). In addition, the systems required to segregate and net the core transactions accurately were inadequate. As a consequence, the necessary systems and policies are being established at Fenco. The company is working diligently to inventory Fenco's cores and ensure that the core entries are reported in accordance with GAAP.
"Our rotating electrical business remains strong and we look forward to resolving these accounting matters related to our Fenco subsidiary as quickly as possible," said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America.
About Motorcar Parts of America
Motorcar Parts of America, Inc. is a remanufacturer of alternators and starters utilized in imported and domestic passenger vehicles, light trucks and heavy duty applications. Through its wholly owned subsidiary Fenco Automotive Products, the company also offers a broad line of under-the-car products – including brakes, steering and driveline. Motorcar Parts of America's products are sold to automotive retail outlets and the professional repair market throughout the United States and Canada, with remanufacturing facilities located in California, Mexico, Malaysia, and administrative offices located in California, Tennessee, Mexico, Canada, Singapore and Malaysia. 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 2011 and in its Form 10-Q filed with the SEC thereafter 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.