Business
Motorcar Parts of America Reports Fiscal 2020 Fourth Quarter and Year-End Results
-- Sales up 13.3 Percent for Record Year; Positive Annual Cash Flow Reflecting Strong Second Half -- LOS ANGELES--(BUSINESS WIRE)-- Motorcar Parts of
About this update from Motorcar Parts Of America, Inc.
[{"type":"text","content":"\n-- Sales up 13.3 Percent for Record Year; Positive Annual Cash Flow Reflecting Strong Second Half -- \n\n LOS ANGELES--(BUSINESS WIRE)--\nMotorcar Parts of America, Inc. (Nasdaq: MPAA) today reported results for its fiscal 2020 fourth quarter and year ended March 31, 2020 -- reflecting generation of cash flow from operations of $18.8 million for the fiscal year and gross margin improvement.\n\n\nNet sales for the fiscal 2020 fourth quarter increased 16.8 percent to a record $150.7 million from $129.1 million for the same period a year earlier.\n\n\nNet loss for the fiscal 2020 fourth quarter was $8.2 million, or $0.43 per share, compared with a net loss of $2.8 million, or $0.15 per share, a year ago. Results for the fiscal 2020 fourth quarter were impacted by items totaling approximately $25.8 million on a pre-tax basis, or $1.02 per share on a tax-effected basis, as detailed in Exhibit 1. The $25.8 million includes non-cash items of $23.0 million, primarily consisting of the re-measurement of the company’s Mexico lease liabilities and its forward foreign exchange contracts due to the significant devaluation in the Mexican Peso, and transition expenses of $2.8 million related to the expansion of the company’s footprint in Mexico.\n\n\nThe net loss for the prior-year period was impacted by items totaling approximately $17.2 million on a pre-tax basis, or $0.70 per share on a tax-effected basis, as detailed in Exhibit 1. The company has decided to eliminate its reporting of certain non-GAAP financial measures. For information about items that impacted the results, see Exhibits 1 through 5.\n\n\n“Notwithstanding the global pandemic, which began to impact the automotive aftermarket in mid-March, we achieved record sales and generated strong cash flow from operations. While the sharp decline in the value of the Mexican peso US dollar exchange rate resulted in large non-cash expenses, the underlying operating results for the company are strong,” said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America.\n\n\nJoffe noted the facilities expansion in Mexico and the company’s brake caliper launch are rapidly nearing completion, and as such the transition costs will be substantially eliminated by the end of this fiscal year.\n\n\nGross profit for the fiscal 2020 fourth quarter was $36.6 million comp...