Motorcar Parts of America Reports Year-End Results

Rhea-AI Summary

Motorcar Parts of America (Nasdaq: MPAA) reported its fiscal 2024 fourth quarter and year-end results, highlighting a 5.1% increase in net sales to $717.7 million and a 16.3% rise in gross profit to $132.6 million. Operating income grew by 26.5% to $46.1 million, and the company generated $39.2 million in cash from operations. Despite a slight decline in quarterly net sales and gross profit due to industry softness, the company anticipates robust growth in fiscal 2025, projecting sales between $746 million and $766 million. Higher market interest rates increased fiscal 2024 interest expenses to $60 million, contributing to a net loss of $49.2 million. The company reduced net bank debt by $32.5 million.

Positive

• Net sales for fiscal 2024 increased by 5.1% to $717.7 million.
• Gross profit rose by 16.3% to $132.6 million.
• Operating income grew by 26.5% to $46.1 million.
• Cash from operations totaled $39.2 million.
• Net bank debt reduced by $32.5 million.
• Fiscal 2025 sales expected to grow between 3.9% and 6.7%.

Negative

• Fourth-quarter net sales decreased to $189.5 million from $194.7 million year-over-year.
• Fourth-quarter gross profit fell to $34.8 million from $36.2 million.
• Fourth-quarter operating income declined to $12.2 million from $23.7 million.
• Interest expense for fiscal 2024 increased by $20.5 million to $60 million.
• Net loss for fiscal 2024 was $49.2 million compared to a $4.2 million loss in fiscal 2023.

Insights

Financial Analyst

Motorcar Parts of America's fiscal 2024 results present a nuanced picture of their financial health and market position. The company achieved record net sales of $717.7 million, reflecting a 5.1% increase year-over-year. This is commendable, considering the industry softness experienced in the fourth quarter. Notably, gross profit rose by 16.3% to $132.6 million, with the gross margin improving by 1.8 percentage points to 18.5%. This margin expansion indicates successful cost management and pricing strategies, despite non-cash and non-recurring cash items impacting the figures.

However, some areas warrant caution. Operating income for the fourth quarter saw a significant decline from $23.7 million to $12.2 million, due to unfavorable foreign exchange rate-related gains and the previous year's employee retention credit benefit. Additionally, the interest expense has increased markedly, up by $2.8 million for the quarter and $20.5 million for the year, primarily driven by higher market interest rates. This could pose a challenge if interest rates remain elevated or increase further.

Despite these challenges, the company's ability to generate approximately $39.2 million in cash from operations and reduce net bank debt by $32.5 million is a positive sign of liquidity management. The fiscal 2025 guidance also portrays optimism, with expected net sales growth and a significant increase in operating income.

For investors, the key takeaways are the company's strong sales and gross profit growth, alongside effective cash flow management. However, the increase in interest expenses and operating income fluctuations highlight areas to monitor closely.

Market Research Analyst

Motorcar Parts of America's performance indicates resilience and strategic agility. The company's net sales growth of 5.1% to $717.7 million is noteworthy, especially in a soft market. The improved gross margin from 16.7% to 18.5% reflects successful pricing enhancements and operational efficiencies.

Significantly, the outlook for fiscal 2025 remains strong, with projected net sales between $746 million and $766 million, implying continued demand stability and growth. The company's focus on brake-related product categories, which are gaining momentum, should further bolster margins and sales volumes.

However, the sector's inherent cyclicality and external factors like foreign exchange fluctuations and interest rates must be considered. The increase in interest expense due to higher rates and accounts receivable discount programs heightens the importance of monitoring macroeconomic trends and their potential impacts.

Retail investors should appreciate the company's strategic focus on profitable segments and cash flow positivity while remaining vigilant about the macroeconomic environment's influence on operational costs.

- Record Sales for the Fiscal Year; Operating Income Up Sharply; Solid Outlook with Strong Cash Flow

LOS ANGELES--(BUSINESS WIRE)-- Motorcar Parts of America, Inc. (Nasdaq: MPAA) today reported results for its fiscal 2024 fourth quarter and year ended March 31, 2024 – reflecting year-over-year increases in sales, operating income and cash flow from operating activities, despite industry softness in the fourth quarter.

Key highlights for the fiscal year.

• Net sales increased 5.1 percent to $717.7 million.
• Gross profit increased 16.3 percent to $132.6 million.
• Gross margin increased 1.8 percentage points to 18.5 percent.
• Operating income increased 26.5 percent to $46.1 million.
• The company generated cash from operations of approximately $39.2 million.

Fiscal 2024 Fourth Quarter Results

Net sales for the fiscal 2024 fourth quarter were $189.5 million compared with $194.7 million in the prior year, impacted by industry softness. Sales in April and May 2024 indicate a strong start to the new fiscal year.

Gross profit for the fiscal 2024 fourth quarter was $34.8 million compared with $36.2 million a year earlier. Gross margin for the fiscal 2024 fourth quarter was 18.4 percent compared with 18.6 percent a year earlier. Gross margin for the fiscal 2024 fourth quarter was impacted by $3.7 million, or 2.0 percent, of non-cash items, and approximately $700,000, or 0.4 percent, of non-recurring cash items, as detailed in Exhibit 3.

Operating income for the fiscal 2024 fourth quarter was $12.2 million compared with $23.7 million in the prior year, impacted by $5.6 million of less favorable foreign exchange rate related gains associated with lease liabilities and forward contracts compared with the prior year and a $5.1 million employee retention credit benefit in the prior year.

Interest expense for the fiscal fourth quarter increased by $2.8 million, or $0.09 per diluted share, to $14.6 million from $11.9 million a year ago, primarily due to higher market interest rates and increased collection of receivables utilizing accounts receivable discount programs on higher sales, partially offset by lower average outstanding balances under the company’s credit facility.

Net income for the fiscal 2024 fourth quarter was $1.3 million compared with $1.5 million for the prior year. Net income for the fiscal 2024 fourth quarter was impacted by approximately $800,000, or $0.04 per diluted share, of non-cash items, and $1.2 million, or $0.05 per diluted share, of cash items, as detailed in Exhibit 1.

“Our fiscal 2024 results indicate continued progress in growing sales, increasing gross margins and gross profit and generating positive cash flow, which we expect to continue in the new fiscal year. Our brake-related product categories continue to gain momentum, which will result in gross margin accretion. We remain focused on executing our strategic plans, supported by positive cash flow and neutralizing working capital,” said Selwyn Joffe, chairman, president, and chief executive officer.

Twelve-Month Results

Net sales for fiscal 2024 increased 5.1 percent to a record $717.7 million from $683.1 million, despite the industry softness in the fourth quarter as noted above.

Gross profit for fiscal 2024 increased 16.3 percent to $132.6 million from $114.0 million a year earlier. Gross margin for fiscal 2024 increased to 18.5 percent from 16.7 percent a year earlier. Gross margin for fiscal 2024 was impacted by $16.3 million, or 2.3 percent, of non-cash items, and $7.5 million, or 1.0 percent, of non-recurring cash items, as detailed in Exhibit 4.

Operating income for fiscal 2024 increased 26.5 percent to $46.1 million from $36.4 million in the prior year.

Interest expense for fiscal 2024 increased by $20.5 million, or $0.78 per share, to $60.0 million from $39.6 million a year ago, primarily due to higher market interest rates and increased collection of receivables utilizing accounts receivable discount programs on higher sales, partially offset by lower average outstanding balances under the company’s credit facility.

Due primarily to $50.3 million, or $2.56 per share, of non-cash items, including a $38.0 million U.S. federal and state deferred tax asset valuation allowance under U.S. GAAP, or $1.94 per share, net loss for fiscal 2024 was $49.2 million, or $2.51 per share, compared with a net loss of $4.2 million, or $0.22 per share, a year ago. The valuation allowance does not impact any operating metrics. The non-cash items discussed above, and cash items of $7.0 million, or $0.36 per share, are detailed in Exhibit 2.

The company generated approximately $39.2 million of cash from operating activities during fiscal 2024 and reduced net bank debt by $32.5 million to $114.0 million from $146.5 million, notwithstanding $9.3 million cash used in operating activities during the fourth quarter due to seasonality of the company’s business.

Further Considerations

• Sales volume improving:
  • Ordering activity has gained momentum.
  • Industry fundamentals are improving and will drive product demand.
• Margin improvement:
  • Enhanced by multiple rounds of price increases.
  • Improving overhead absorption as brake-related business gains further momentum.
  • Improving operational efficiencies through volume increases.
• Strong cash flow outlook.

Fiscal 2025 Guidance

Motorcar Parts of America expects net sales for its fiscal year ending March 31, 2025 to be between $746 million to $766 million, representing between 3.9 percent and 6.7 percent year-over-year growth. Operating income is expected to be between $62 million and $67 million, before the non-cash foreign exchange impact of lease liabilities and forward contracts and the non-cash impact of revaluation of cores on customers’ shelves. The company estimates other non-cash items will be approximately $17 million, including core and finished goods premium amortization and share-based compensation. The company estimates depreciation and amortization will be approximately $11 million.

Use of Non-GAAP Measure

This press release includes the following non-GAAP measure – EBITDA, which is not a measure of financial performance under GAAP and should not be considered as an alternative to net income as a measure of financial performance. The company believes this non-GAAP measure, when considered together with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to the company’s results of operations. However, this non-GAAP measure has significant limitations in that it does not reflect all the costs and other items associated with the operation of the company’s business as determined in accordance with GAAP. In addition, the company’s non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, measures of financial performance in accordance with GAAP. For a definition and reconciliation of EBITDA to net income, its corresponding GAAP measure, see the financial tables included in this press release. Also, refer to our Form 8-K to which this release is attached, and other filings we make with the SEC, for further information regarding this measure.

Earnings Conference Call and Webcast

Selwyn Joffe, chairman, president and chief executive officer, and David Lee, chief financial officer, will host an investor conference call today at 10:00 a.m. Pacific time to discuss the company’s financial results and operations. The call will be open to all interested investors either through a live audio webcast at www.motorcarparts.com or live by calling (888) 440-5584 (domestic) or (646) 960-0457 (international). For those who are not available to listen to the live broadcast, the call will be archived on Motorcar Parts of America’s website www.motorcarparts.com. A telephone playback of the conference call will also be available from approximately 1:00 p.m. Pacific time on June 11, 2024 through 8:59 p.m. Pacific time on June 18, 2024 by calling (800) 770-2030 (domestic) or (609) 800-9909 (toll) and using access code: 1545314.

About Motorcar Parts of America, Inc.

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, turbochargers, 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 2023 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.

(Financial tables follow)

MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
		Three Months Ended March 31,								Year Ended March 31,
		2024				2023				2024				2023
		(Unaudited)
Net sales		$	189,478,000			$	194,727,000			$	717,684,000			$	683,074,000
Cost of goods sold			154,685,000				158,576,000				585,133,000				569,112,000
Gross profit			34,793,000				36,151,000				132,551,000				113,962,000
Operating expenses:
General and administrative			15,644,000				12,677,000				57,769,000				54,756,000
Sales and marketing			5,443,000				4,487,000				22,481,000				21,729,000
Research and development			2,643,000				1,992,000				9,995,000				10,322,000
Foreign exchange impact of lease liabilities and forward contracts			(1,155,000	)			(6,738,000	)			(3,814,000	)			(9,291,000	)
Total operating expenses			22,575,000				12,418,000				86,431,000				77,516,000
Operating income			12,218,000				23,733,000				46,120,000				36,446,000
Other expenses:
Interest expense, net			14,640,000				11,880,000				60,040,000				39,555,000
Change in fair value of compound net derivative liability			(2,710,000	)			-				(1,020,000	)			-
Loss on extinguishment of debt			-				-				168,000				-
Total other expenses			11,930,000				11,880,000				59,188,000				39,555,000
Income (loss) before income tax (benefit) expense			288,000				11,853,000				(13,068,000	)			(3,109,000	)
Income tax (benefit) expense			(1,050,000	)			10,394,000				36,176,000				1,098,000
Net income (loss)		$	1,338,000			$	1,459,000			$	(49,244,000	)		$	(4,207,000	)
Basic net income (loss) per share		$	0.07			$	0.07			$	(2.51	)		$	(0.22	)
Diluted net income (loss) per share		$	(0.03	)		$	0.07			$	(2.51	)		$	(0.22	)
Weighted average number of shares outstanding:
Basic			19,662,380				19,492,962				19,601,204				19,340,246
Diluted			22,085,292				19,603,394				19,601,204				19,340,246

MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
		March 31, 2024				March 31, 2023
ASSETS
Current assets:
Cash and cash equivalents		$	13,974,000			$	11,596,000
Short-term investments			1,837,000				2,011,000
Accounts receivable — net			96,296,000				119,868,000
Inventory — net			377,040,000				339,675,000
Inventory unreturned			20,288,000				16,579,000
Contract assets			27,139,000				25,443,000
Income tax receivable			5,683,000				2,156,000
Prepaid expenses and other current assets			18,202,000				20,150,000
Total current assets			560,459,000				537,478,000
Plant and equipment — net			38,338,000				46,052,000
Operating lease assets			83,973,000				87,619,000
Deferred income taxes			2,976,000				32,625,000
Long-term contract assets			320,282,000				318,381,000
Goodwill			3,205,000				3,205,000
Intangible assets — net			1,069,000				2,143,000
Other assets			1,700,000				1,062,000
TOTAL ASSETS		$	1,012,002,000			$	1,028,565,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	154,977,000			$	119,437,000
Accrued liabilities			30,205,000				22,329,000
Customer finished goods returns accrual			38,312,000				37,984,000
Contract liabilities			37,591,000				40,340,000
Revolving loan			128,000,000				145,200,000
Other current liabilities			7,021,000				4,871,000
Operating lease liabilities			8,319,000				8,767,000
Current portion of term loan			-				3,664,000
Total current liabilities			404,425,000				382,592,000
Term loan, less current portion			-				9,279,000
Convertible notes, related party			30,776,000				30,994,000
Contract liabilities, less current portion			212,068,000				193,606,000
Deferred income taxes			511,000				718,000
Operating lease liabilities, less current portion			72,240,000				79,318,000
Other liabilities			6,872,000				11,583,000
Total liabilities			726,892,000				708,090,000
Commitments and contingencies
Shareholders' equity:
Preferred stock; par value $.01 per share, 5,000,000 shares authorized; none issued			-				-
Series A junior participating preferred stock; par value $.01 per share, 20,000 shares authorized; none issued			-				-
Common stock; par value $.01 per share, 50,000,000 shares authorized; 19,662,380 and 19,494,615 shares issued and outstanding at March 31, 2024 and 2023, respectively			197,000				195,000
Additional paid-in capital			236,255,000				231,836,000
Retained earnings			39,503,000				88,747,000
Accumulated other comprehensive income (loss)			9,155,000				(303,000	)
Total shareholders' equity			285,110,000				320,475,000
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,012,002,000			$	1,028,565,000

Additional Information and Non-GAAP Financial Measures

To supplement the consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the company has included the following additional information and non-GAAP financial measures for the three and twelve months ended March 31, 2024 and 2023. Among other things, the company uses such additional information and non-GAAP adjusted financial measures in addition to and together with corresponding GAAP measures to help analyze the performance of its business.

The company believes this information helps provide a more complete understanding of the company's results of operations and the factors and trends affecting the company's business. However, this information should be considered as a supplement to, and not as a substitute for, or superior to, information contained in the company’s financial statements prepared in accordance with GAAP. In addition, the company’s non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies.

The company defines EBITDA as earnings before interest, taxes, depreciation, and amortization. A reconciliation of EBITDA to net income is provided below along with information regarding such items.

Items Impacting Net Income for the Three Months Ended March 31, 2024 and 2023										Exhibit 1
		Three Months Ended March 31,
		2024								2023
		$				Per Share				$				Per Share
GAAP net income		$	1,338,000			$	(0.03	)		$	1,459,000			$	0.07
Non-cash items impacting net income
Core and finished goods premium amortization		$	2,761,000			$	0.13			$	2,608,000			$	0.13
Revaluation - cores on customers' shelves			973,000				0.04				1,032,000				0.05
Share-based compensation expenses			432,000				0.02				1,164,000				0.06
Foreign exchange impact of lease liabilities and forward contracts			(1,155,000	)			(0.05	)			(6,738,000	)			(0.34	)
Change in fair value of compound net derivative liability			(2,710,000	)			(0.12	)			-				-
Tax effect (a)			(75,000	)			(0.00	)			484,000				0.02
Tax valuation allowance			548,000				0.02				-				-
Total non-cash items impacting net income		$	774,000			$	0.04			$	(1,450,000	)		$	(0.07	)
Cash items impacting net income
Supply chain disruptions and related costs (b)		$	734,000			$	0.03			$	2,951,000			$	0.15
New product line start-up costs and transition expenses, and severance (c)			840,000				0.04				923,000				0.05
Employee retention credit (d)			-				-				(5,104,000	)			(0.26	)
Tax effect (a)			(394,000	)			(0.02	)			308,000				0.02
Total cash items impacting net income		$	1,180,000			$	0.05			$	(922,000	)		$	(0.05	)

(a)		Tax effect is calculated by applying an income tax rate of 25.0% to items listed above; this rate may differ from the period's actual income tax rate.
(b)		For the three-months ended March 31, 2024, consists of $734,000 impacting gross profit.
		For the three-months ended March 31, 2023, consists of $2,913,000 impacting gross profit and $38,000 included in operating expenses.
(c)		For the three-months ended March 31, 2024, consists of $840,000 included in operating expenses.
		For the three-months ended March 31, 2023, consists of $923,000 included in operating expenses.
(d)		For the three-months ended March 31, 2023, consists of ($2,034,000) impacting gross profit and ($3,070,000) included in operating expenses.

Items Impacting Net Income for the Twelve Months Ended March 31, 2024 and 2023										Exhibit 2
		Twelve Months Ended March 31,
		2024								2023
		$				Per Share				$				Per Share
GAAP net loss		$	(49,244,000	)		$	(2.51	)		$	(4,207,000	)		$	(0.22	)
Non-cash items impacting net loss
Core and finished goods premium amortization		$	10,963,000			$	0.56			$	11,791,000			$	0.61
Revaluation - cores on customers' shelves			5,353,000				0.27				3,736,000				0.19
Share-based compensation expenses			4,700,000				0.24				4,685,000				0.24
Foreign exchange impact of lease liabilities and forward contracts			(3,814,000	)			(0.19	)			(9,291,000	)			(0.48	)
Change in fair value of compound net derivative liability and loss on extinguishment of debt			(852,000	)			(0.04	)			-				-
Tax effect (a)			(4,088,000	)			(0.21	)			(2,730,000	)			(0.14	)
Tax valuation allowance			38,009,000				1.94				-				-
Total non-cash items impacting net loss		$	50,271,000			$	2.56			$	8,191,000			$	0.42
Cash items impacting net loss
Supply chain disruptions and related costs (b)		$	7,472,000			$	0.38			$	12,914,000			$	0.67
New product line start-up costs and transition expenses, and severance (c)			1,820,000				0.09				3,565,000				0.18
Employee retention credit (d)			-				-				(5,104,000	)			(0.26	)
Tax effect (a)			(2,323,000	)			(0.12	)			(2,844,000	)			(0.15	)
Total cash items impacting net loss		$	6,969,000			$	0.36			$	8,531,000			$	0.44

(a)		Tax effect is calculated by applying an income tax rate of 25.0% to items listed above; this rate may differ from the period's actual income tax rate.
(b)		For the twelve-months ended March 31, 2024, consists of $7,472,000 impacting gross profit.
		For the twelve-months ended March 31, 2023, consists of $11,485,000 impacting gross profit and $1,429,000 included in operating expenses.
(c)		For the twelve-months ended March 31, 2024, consists of $1,820,000 included in operating expenses.
		For the twelve-months ended March 31, 2023, consists of $3,565,000 included in operating expenses.
(d)		For the twelve-months ended March 31, 2023, consists of ($2,034,000) impacting gross profit and ($3,070,000) included in operating expenses.

Items Impacting Gross Profit for the Three Months Ended March 31, 2024 and 2023									Exhibit 3
		Three Months Ended March 31,
		2024							2023
		$				Gross Margin			$				Gross Margin
GAAP gross profit		$	34,793,000			18.4	%		$	36,151,000			18.6	%
Non-cash items impacting gross profit
Core and finished goods premium amortization		$	2,761,000			1.5	%		$	2,608,000			1.3	%
Revaluation - cores on customers' shelves			973,000			0.5	%			1,032,000			0.5	%
Total non-cash items impacting gross profit		$	3,734,000			2.0	%		$	3,640,000			1.9	%
Cash items impacting gross profit
Supply chain disruptions and related costs		$	734,000			0.4	%		$	2,913,000			1.5	%
Employee retention credit			-			-				(2,034,000	)		-1.0	%
Total cash items impacting gross profit		$	734,000			0.4	%		$	879,000			0.5	%

Items Impacting Gross Profit for the Twelve Months Ended March 31, 2024 and 2023									Exhibit 4
		Twelve Months Ended March 31,
		2024							2023
		$				Gross Margin			$				Gross Margin
GAAP gross profit		$	132,551,000			18.5	%		$	113,962,000			16.7	%
Non-cash items impacting gross profit
Core and finished goods premium amortization		$	10,963,000			1.5	%		$	11,791,000			1.7	%
Revaluation - cores on customers' shelves			5,353,000			0.7	%			3,736,000			0.5	%
Total non-cash items impacting gross profit		$	16,316,000			2.3	%		$	15,527,000			2.3	%
Cash items impacting gross profit
Supply chain disruptions and related costs		$	7,472,000			1.0	%		$	11,485,000			1.7	%
Employee retention credit			-			-				(2,034,000	)		-0.3	%
Total cash items impacting gross profit		$	7,472,000			1.0	%		$	9,451,000			1.4	%

Items Impacting EBITDA for the Three and Twelve Months Ended March 31, 2024 and 2023										Exhibit 5
		Three Months Ended March 31,								Twelve Months Ended March 31,
		2024				2023				2024				2023
GAAP net income (loss)		$	1,338,000			$	1,459,000			$	(49,244,000	)		$	(4,207,000	)
Interest expense, net			14,640,000				11,880,000				60,040,000				39,555,000
Income tax expense (benefit)			(1,050,000	)			10,394,000				36,176,000				1,098,000
Depreciation and amortization			2,775,000				3,122,000				11,619,000				12,444,000
EBITDA		$	17,703,000			$	26,855,000			$	58,591,000			$	48,890,000
Non-cash items impacting EBITDA
Core and finished goods premium amortization		$	2,761,000			$	2,608,000			$	10,963,000			$	11,791,000
Revaluation - cores on customers' shelves			973,000				1,032,000				5,353,000				3,736,000
Share-based compensation expenses			432,000				1,164,000				4,700,000				4,685,000
Foreign exchange impact of lease liabilities and forward contracts			(1,155,000	)			(6,738,000	)			(3,814,000	)			(9,291,000	)
Change in fair value of compound net derivative liability and loss on extinguishment of debt			(2,710,000	)			-				(852,000	)			-
Total non-cash items impacting EBITDA		$	301,000			$	(1,934,000	)		$	16,350,000			$	10,921,000
Cash items impacting EBITDA
Supply chain disruptions and related costs		$	734,000			$	2,951,000			$	7,472,000			$	12,914,000
New product line start-up costs and transition expenses, and severance			840,000				923,000				1,820,000				3,565,000
Employee retention credit			-				(5,104,000	)			-				(5,104,000	)
Total cash items impacting EBITDA		$	1,574,000			$	(1,230,000	)		$	9,292,000			$	11,375,000

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240611899769/en/

Gary S. Maier

Vice President, Corporate Communications & IR

(310) 972-5124

Source: Motorcar Parts of America, Inc.

FAQ

What were Motorcar Parts of America's net sales for fiscal 2024?

Net sales for fiscal 2024 were $717.7 million, a 5.1% increase from the previous year.

What was the gross profit of MPAA in fiscal 2024?

The gross profit for fiscal 2024 increased by 16.3% to $132.6 million.

How much operating income did MPAA report for fiscal 2024?

Operating income for fiscal 2024 was $46.1 million, up 26.5% from the prior year.

What is the expected sales growth for MPAA in fiscal 2025?

Motorcar Parts of America expects sales to grow between 3.9% and 6.7% for fiscal 2025.

What caused the increase in interest expenses for MPAA in fiscal 2024?

Higher market interest rates increased interest expenses to $60 million in fiscal 2024.

What was MPAA's net income for the fiscal 2024 fourth quarter?

Net income for the fiscal 2024 fourth quarter was $1.3 million.

What was the net loss for MPAA in fiscal 2024?

The net loss for fiscal 2024 was $49.2 million, compared to a $4.2 million loss in the previous year.