Motorcar Parts of America Adopts 10b5-1 Share Repurchase Plan

Rhea-AI Summary

Motorcar Parts of America (MPAA) has implemented a Rule 10b5-1 trading plan to facilitate share repurchases under its $37 million authorized program, with $16.2 million remaining available as of December 31, 2024. The company has already repurchased 268,130 shares for $2.1 million at an average price of $7.82 per share during the open trading window.

The 10b5-1 plan enables MPAA to conduct share repurchases during blackout periods or when possessing material non-public information, subject to specific price, market, volume, and timing constraints. The company maintains discretion to terminate the plan at any time, and there is no obligation to purchase shares.

Positive

• Authorization of $37 million share repurchase program with $16.2 million still available
• Already completed $2.1 million in share repurchases at $7.82 average price
• Enhanced flexibility to repurchase shares during blackout periods

Negative

• No guarantee of future share repurchases despite the plan's implementation

LOS ANGELES--(BUSINESS WIRE)-- Motorcar Parts of America, Inc. (Nasdaq: MPAA) today announced the company has adopted a written trading plan under Rule 10b5-1 of the Securities and Exchange Commission rule to facilitate share repurchases under its current $37 million authorized program, with $16.2 million available as of December 31, 2024.

As disclosed in the company’s 10-Q filing for its fiscal third quarter ended December 31, 2024, the company repurchased 268,130 shares for $2.1 million at an average share price of $7.82 during the open trading window.

The adoption of a 10b5-1 plan allows Motorcar Parts of America the ability to repurchase shares when it would be ordinarily restricted from purchases due to blackout periods or being in possession of material non-public information.

Under the rules of the 10b5-1 plan, the company may commence share repurchases as permitted and continue until it reaches the limits of its authorized 10b5-1 plan. The 10b5-1 share repurchases are subject to certain price, market, volume and timing constraints specified in the plan. The company may terminate the plan at any time. It is not required to purchase shares and there can be no assurance that any shares will be repurchased.

About Motorcar Parts of America

Motorcar Parts of America, Inc. is a remanufacturer, manufacturer, and distributor of automotive aftermarket parts -- including alternators, starters, wheel bearings and hub assemblies, brake calipers, brake pads, brake rotors, brake master cylinders, brake power boosters and diagnostic testing equipment utilized in imported and domestic passenger vehicles, light trucks, and heavy-duty applications. Its products are sold to automotive retail outlets and the professional repair market throughout the United States, Canada, and Mexico, with facilities located in California, New York, Mexico, Malaysia, China and India, and administrative offices located in California, Tennessee, Mexico, Singapore, Malaysia, and Canada. In addition, the company’s electrical vehicle subsidiary designs and manufactures testing solutions for performance, endurance, and production of multiple components in the electric power train – providing simulation, emulation, and production applications for the electrification of both automotive and aerospace industries, including electric vehicle charging systems. 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 2024 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250327636776/en/

Gary S. Maier

Vice President, Corporate Communications & IR

(310) 972-5124

Source: Motorcar Parts of America, Inc.

FAQ

How much money is left in MPAA's share repurchase program as of December 2024?

$16.2 million remains available in the authorized share repurchase program as of December 31, 2024.

How many shares did MPAA repurchase in Q3 2024 and at what price?

MPAA repurchased 268,130 shares at an average price of $7.82 per share, totaling $2.1 million.

What advantages does the 10b5-1 trading plan provide to MPAA?

The plan allows MPAA to repurchase shares during blackout periods or when possessing material non-public information.

Is MPAA required to complete the full share repurchase program?

No, MPAA is not required to purchase shares and can terminate the plan at any time.