Business
Motorcar Parts of America Reports Record Results for Fiscal Second Quarter and Six Months
– Record Gross Profit and Strong Cash Flow Generation – LOS ANGELES--(BUSINESS WIRE)-- Motorcar Parts of America, Inc. (Nasdaq: MPAA) today reported record
About this update from Motorcar Parts Of America, Inc.
[{"type":"text","content":"\n– Record Gross Profit and Strong Cash Flow Generation –\n\n\n LOS ANGELES--(BUSINESS WIRE)--\nMotorcar Parts of America, Inc. (Nasdaq: MPAA) today reported record sales for its fiscal 2024 second quarter and six-month period ended September 30, 2023, with record gross profit and strong cash flow from operating activities.\n\n\nNet sales for the fiscal 2024 second quarter increased 14.0 percent to a record $196.6 million from $172.5 million in the prior year.\n\n\nNet loss for the fiscal 2024 second quarter improved to $2.0 million, or $0.10 per share, from a net loss of $6.5 million, or $0.34 per share, a year ago. The company noted that the net loss for the fiscal 2024 second quarter was impacted by $8.7 million, or $0.44 per share, of non-cash items, as detailed in Exhibit 1.\n\n\nInterest expense for the fiscal second quarter increased by $6.1 million, or $0.23 per share, to $15.4 million from $9.3 million a year ago, primarily due to higher market rates.\n\n\nGross profit for the fiscal 2024 second quarter increased 55.2 percent to a record $41.1 million from $26.5 million a year earlier. Gross margin for the fiscal 2024 second quarter was 20.9 percent compared with 15.4 percent a year earlier. Gross margin for the fiscal 2024 second quarter was impacted by $4.7 million, or 2.4 percent, of non-cash items, and $3.2 million, or 1.6 percent, of cash items, as detailed in Exhibit 3.\n\n\nThe company generated approximately $15 million of cash from operating activities during the quarter. During this period, the company intentionally deferred collecting approximately $15 million of receivables offered through its customer supply chain vendor finance programs, which resulted in lowering cash flow by that amount, and interest expense savings of approximately $1 million. This enabled the company to defer interest expenses until price increases for interest rates are fully recognized.\n\n\nAdditionally, the company used its liquidity to pay down the $11.25 million balance of its term loan. Interest rates on the term loan were approximately two percentage points higher than rates offered by the company’s customers’ supply chain vendor finance programs.\n\n\n“Demand for critical non-discretionary automotive parts is strong and we remain focused on leveraging our leadership position. As sales volume increases, particularly within cert...