Business
Motorcar Parts of America Reports Record First Quarter Sales
LOS ANGELES--(BUSINESS WIRE)-- Motorcar Parts of America, Inc. (Nasdaq: MPAA) today reported results for its fiscal 2023 first quarter ended June 30, 2022 –
About this update from Motorcar Parts Of America, Inc.
[{"type":"text","content":" LOS ANGELES--(BUSINESS WIRE)--\nMotorcar Parts of America, Inc. (Nasdaq: MPAA) today reported results for its fiscal 2023 first quarter ended June 30, 2022 – reflecting strong demand after a modest start, with momentum building in May and June.\n\nFiscal 2023 First Quarter Highlights\n\n\nNet sales reached a fiscal first quarter record of $164.0 million, an increase of $15.0 million, or 10.0 percent year over year.\n\n\nGross profit was $30.3 million, an increase of $6.7 million, or 28.6 percent year over year.\n\n\nOperating expenses were impacted by non-cash foreign currency exchange fluctuations of approximately $820,000 compared with the prior year.\n\n\nResults were impacted by $3.0 million of increased interest expenses, primarily due to higher interest rates related to participation in the accounts receivable discount programs offered by customers.\n\n\nResults were also impacted by $0.22 per share of non-cash items, and $0.15 per share of other items, primarily due to continuing, though diminishing, transitory costs related to supply chain disruptions.\n\n\nEBITDA (defined below) was $10.5 million, which was impacted by $5.5 million of non-cash items and $3.7 million of other items, primarily due to transitory costs.\n\n\nFiscal 2023 Considerations\n\n\nFuture margin expansion expected from additional price increases in the fiscal second quarter; anticipated improved operating efficiencies as brake-related product volume increases and fixed cost leveraging opportunities are enhanced.\n\n\nCash flow improvement expected as the new fiscal year gains momentum; strategic inventory build in fiscal 2022 is expected to benefit from previously announced top-line sales targets across all product lines.\n\n\n“We reported record sales for a fiscal first quarter, which supports our optimism as we start a new fiscal year – supported by strong demand for replacement parts and tailwinds from an aging car fleet. Our emerging brake-related products – including brake calipers and in particular pads and rotors, which we formally launched this quarter, are experiencing strong demand. Our investments are bearing fruit and we are well-positioned to capitalize on the company’s leadership position within the retail and traditional markets,” said Selwyn Joffe, chairman, president, and chief executive officer.\n\nNet sales for the fiscal 2023 fi...