Business
Motorcar Parts of America Reports Results for Fiscal Third Quarter and Nine Months
– Record Sales for Nine Months; Operating Income Up Sharply; Strong Cash Flow – LOS ANGELES--(BUSINESS WIRE)-- Motorcar Parts of America, Inc. (Nasdaq: MPAA)
About this update from Motorcar Parts Of America, Inc.
[{"type":"text","content":"\n– Record Sales for Nine Months; Operating Income Up Sharply; Strong Cash Flow –\n\n\n LOS ANGELES--(BUSINESS WIRE)--\nMotorcar Parts of America, Inc. (Nasdaq: MPAA) today reported results for its fiscal 2024 third quarter and nine-months ended December 31, 2023 -- reflecting a strong increase in net sales, operating income and cash flow from operating activities.\n\n\nKey highlights for the fiscal third quarter.\n\n\n\nNet sales increased 13.2 percent to $171.9 million.\n\n\n\nGross margin improved by 3.7 percentage points.\n\n\n\nGross profit increased 43.1 percent to $30.0 million.\n\n\n\nOperating income increased 170.1 percent to $9.5 million.\n\n\n\nThe company generated cash of approximately $53.6 million.\n\n\n\nNet sales for the fiscal 2024 third quarter increased 13.2 percent to $171.9 million from $151.8 million in the prior year.\n\n\nGross profit for the fiscal 2024 third quarter increased 43.1 percent to $30.0 million from $21.0 million a year earlier. Gross margin for the fiscal 2024 third quarter was 17.5 percent compared with 13.8 percent a year earlier. Gross margin for the fiscal 2024 third quarter was impacted by $4.4 million, or 2.6 percent, of non-cash items, and $1.6 million, or 0.9 percent, of cash items, as detailed in Exhibit 3.\n\n\nOperating income for the fiscal 2024 third quarter increased 170.1 percent to $9.5 million from $3.5 million in the prior year.\n\n\nInterest expense for the fiscal third quarter increased by $6.8 million, or $0.26 per share, to $18.3 million from $11.5 million a year ago -- primarily due to higher market interest rates and higher utilization of the accounts receivable discount programs offered by customers due to higher net sales.\n\n\nDue primarily to $40.4 million, or $2.06 per share, of non-cash items, including a $37.5 million U.S. federal and state deferred tax asset valuation allowance under U.S. GAAP, or $1.91 per share, net loss for the fiscal 2024 third quarter was $47.2 million, or $2.40 per share, compared with net income of $1.0 million, or $0.05 per diluted share, a year ago. The valuation allowance does not impact any operating metrics. The non-cash items discussed above, and cash items of $1.4 million, or $0.07 per share, are detailed in Exhibit 1.\n\n\nThe company generated approximately $53.6 million of cash from operating activities during the quarter an...