Business
Motorcar Parts of America Reports Record Sales for Fiscal 2023 Fourth Quarter and Year
– Provides Fiscal 2024 Guidance; Margin Improvement and Free Cash Generation Expected to Gain Momentum as Fiscal Year Evolves – LOS ANGELES--(BUSINESS
About this update from Motorcar Parts Of America, Inc.
[{"type":"text","content":"\n– Provides Fiscal 2024 Guidance; Margin Improvement and Free Cash Generation Expected to Gain Momentum as Fiscal Year Evolves –\n\n\n LOS ANGELES--(BUSINESS WIRE)--\nMotorcar Parts of America, Inc. (Nasdaq: MPAA) today reported results for its fiscal 2023 fourth quarter and year ended March 31, 2023, reflecting record sales and solid demand across multiple categories -- including the company’s rotating electrical and emerging brake-related products.\n\n\nFiscal 2023 Fourth Quarter Results\n\n\nNet sales for the fiscal 2023 fourth quarter increased 18.8 percent to a record $194.7 million from $163.9 million in the prior year.\n\n\nFiscal fourth quarter results benefited from increasing product demand for the spring and summer seasons and recently implemented price increases.\n\n\nNet income for the fiscal 2023 fourth quarter was $1.5 million, or $0.07 per diluted share, compared with a net loss of $322,000, or $0.02 per share, a year ago.\n\n\nFiscal fourth quarter results were impacted by an income tax expense of $10.4 million, or an effective rate of 87.7 percent.\n\n\nInterest expense increased by $7.8 million, or $0.30 per diluted share, to $11.9 million from $4.0 million a year ago. The increase in interest expense was mainly due to higher market rates -- primarily related to customer vendor financing programs, representing $4.9 million of the increase. The company expects to realize meaningful annualized price increases throughout the new fiscal year, which will contribute to net income enhancement.\n\n\nNon-cash items, as detailed in Exhibit 1, benefited results by approximately $1.5 million, or $0.07 per diluted share. Net cash items, including an employee retention credit, partially offset by transitory costs related to supply chain disruptions, benefited results by $922,000, or $0.05 per diluted share, also detailed in Exhibit 1. Results for the quarter were also impacted by inflationary costs not fully absorbed by price increases.\n\n\nFiscal 2023 fourth quarter results included a $5.1 million employee retention credit (ERC) related to expenses incurred during the COVID-19 pandemic. Subsequent to the pandemic, cost-reduction initiatives related to employee-related expenses were implemented, along with other ongoing strategic opportunities to reduce costs -- resulting in approximately $5 million annual run-rate expens...