Business
Motorcar Parts of America Reports Fiscal 2021 Third Quarter
-- Strong Profitability Despite Order Delays; Solid Cash Flow of $33.2 Million from Operations and Continued Net Debt Reduction of $27.8 Million -- LOS
About this update from Motorcar Parts Of America, Inc.
[{"type":"text","content":"\n-- Strong Profitability Despite Order Delays; Solid Cash Flow of $33.2 Million from Operations and Continued Net Debt Reduction of $27.8 Million -- \n\n LOS ANGELES--(BUSINESS WIRE)--\nMotorcar Parts of America, Inc. (Nasdaq: MPAA) today reported results for its fiscal 2021 third quarter ended December 31, 2020 -- reflecting increased profitability, positive cash flow from operations and continued debt reduction.\n\nNet sales for the fiscal 2021 third quarter were $122.6 million compared with $125.6 million for the same period a year earlier, impacted by continued COVID-19 related challenges.\n\nNet income for the fiscal 2021 third quarter was $8.5 million, or $0.44 per diluted share, compared with net income of $865,000, or $0.04 per diluted share, a year ago. Additional details of items impacting net income are shown in Exhibit 1.\n\n“We continued to experience solid product demand for the third quarter, which was impacted by supply chain challenges due to the global pandemic -- resulting in order delays of approximately $17 million, which are expected to be realized between the current fiscal fourth quarter and the first quarter of the new fiscal year. Notwithstanding, we reported significant increases in profitability for the quarter and nine-month period on a year-over-year basis, with strong positive cash flow while building inventory for increasing demand,” said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America.\n\n“As vaccination programs gain momentum across the country, and life returns to more normal patterns, we expect further increased demand for our products,” Joffe added.\n\nResults for the fiscal third quarter were impacted by approximately $1.6 million on a pre-tax basis, or $0.06 per share on a tax-effected basis, for cost of goods sold and operating expenses related to safety and health initiatives associated with COVID-19. Approximately $723,000 of the $1.6 million relates to incremental bonuses and wages paid to the company’s dedicated operating employees on the front line. The balance relates to the costs of personal protection equipment (PPE) and social distancing initiatives.\n\nCash generated from operating activities was $33.2 million for the fiscal 2021 third quarter and net debt for the same period was reduced by 29.1 percent, or $27.8 million, to $67.6 milli...