Motorcar Parts of America Reports Record Fiscal Third Quarter Results

Motorcar Parts of America, Inc., a remanufacturer, manufacturer, and distributor of automotive aftermarket parts, has released its fiscal 2025 third quarter results, showcasing record sales and gross profit. The company continues to benefit from strategic initiatives aimed at enhancing profitability and maintaining a favorable full-year outlook.

Financial Highlights

For the fiscal third quarter ended December 31, 2024, Motorcar Parts of America reported:

• Net sales increased by 8.3% to a record $186.2 million, compared to $171.9 million in the prior year.
• Gross profit surged by 49.4% to a record $44.9 million, up from $30.0 million a year earlier.
• Net income for the quarter was $2.3 million, or $0.11 per diluted share, compared to a net loss of $47.2 million, or $2.40 per share, in the prior year.
• Generated $34.4 million in cash from operating activities and reduced net bank debt by $30.3 million.
• Repurchased 268,130 shares for $2.1 million.

Business and Operational Highlights

The company achieved significant milestones in its business operations:

• Gross margin for the fiscal third quarter improved to 24.1% from 17.5% a year earlier, despite being impacted by $3.4 million in non-cash expenses.
• Interest expense decreased by $3.9 million to $14.4 million, driven by lower average outstanding balances and reduced interest rates.
• For the nine-month period, net sales increased by 6.8% to a record $564.2 million, and gross profit rose by 18.0% to $115.3 million.

Strategic Initiatives and Corporate Developments

Motorcar Parts of America has undertaken several strategic initiatives to enhance shareholder value:

• Reduced net bank debt by $30.3 million to $84.0 million from $114.3 million.
• Repurchased 268,130 shares for $2.1 million, supported by strong cash generation from operating activities.

Management's Perspective

Selwyn Joffe, chairman, president, and chief executive officer, commented on the results, stating, "We achieved solid results for the quarter and continue to benefit from strategic initiatives designed to enhance our performance. While customer-specific internal dynamics can have a short-term impact on suppliers, we are optimistic about our ability to further leverage our leadership position within the non-discretionary aftermarket parts market."

Joffe also highlighted the company's strong cash generation and debt reduction efforts, emphasizing the focus on enhancing shareholder value and achieving continued success.

Future Outlook

The company remains optimistic about its future prospects, supported by quality products, customer-centric service, and a commitment to excellence. The ongoing strategic initiatives are expected to further enhance profitability and shareholder value.

SEC Filing: MOTORCAR PARTS OF AMERICA INC [ MPAA ] - 8-K - Feb. 10, 2025