Business
Motorcar Parts of America Reports Fiscal 2020 Third Quarter Results
--Strong Positive Cash Flow Highlights the Quarter; Sales up 12 Percent for Nine Months-- LOS ANGELES--(BUSINESS WIRE)-- Motorcar Parts of America, Inc.
About this update from Motorcar Parts Of America, Inc.
[{"type":"text","content":"\n--Strong Positive Cash Flow Highlights the Quarter; Sales up 12 Percent for Nine Months--\n\n LOS ANGELES--(BUSINESS WIRE)--\nMotorcar Parts of America, Inc. (Nasdaq: MPAA) today reported results for its fiscal 2020 third quarter ended December 31, 2019 -- reflecting profitability, generation of cash flow from operations of $22 million during the fiscal third quarter and margin improvement.\n\n\nNet sales for the fiscal 2020 third quarter increased to $125.6 million for a record third quarter from $124.1 million for the same period a year earlier.\n\n\nAdjusted net sales for the fiscal 2020 third quarter increased to $127.7 million for a record third quarter from $119.6 million a year earlier.\n\n\n“Notwithstanding industry sales softness and the deferral of certain product orders late in the quarter, we achieved record sales and generated record cash flow from operations and improved margins. Our strategic investments are creating a transformative platform for growth, as we expand our position within the $125 billion aftermarket hard parts industry,” said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America.\n\n\nNet income for the fiscal 2020 third quarter was $865,000, or $0.04 per diluted share, compared with net loss of $3.1 million, or $0.16 per share, a year ago.\n\n\nAdjusted net income for the fiscal 2020 third quarter was $5.5 million, or $0.28 per diluted share, compared with $6.7 million, or $0.35 per diluted share, a year earlier.\n\n\nGross profit for the fiscal 2020 third quarter was $27.7 million compared with $21.2 million a year earlier. Gross profit as a percentage of net sales for the fiscal 2020 third quarter was 22.0 percent compared with 17.0 percent a year earlier.\n\n\nAdjusted gross profit for the fiscal 2020 third quarter was $34.3 million compared with $30.9 million a year ago. Adjusted gross profit as a percentage of adjusted net sales for the three months was 26.9 percent compared with 25.8 percent a year earlier.\n\n\nThe results for the fiscal 2020 third quarter gross margin were primarily impacted by two items totaling $5.8 million.\n\n\n\nNon-cash expenses of $3.7 million, including a write-down of $2.4 million associated with the quarterly revaluation for cores on customers' shelves, and $1.3 million of amortization related to the premium for core buy bac...