Motorcar Parts of America Reports Second Quarter Results

About this update from Motorcar Parts Of America, Inc.

[{"type":"text","content":"\n- Reaffirms Fiscal 2023 Guidance -\n\n LOS ANGELES--(BUSINESS WIRE)--\nMotorcar Parts of America, Inc. (Nasdaq: MPAA) today reported results for its fiscal 2023 second quarter ended September 30, 2022 – reflecting solid demand for aftermarket hard parts, offset by customers delaying orders and supply chain disruptions for critical components.\n\nFiscal 2023 Second Quarter Results\n\nNet sales for the fiscal 2023 second quarter were $172.5 million -- representing a 6.6 percent increase compared with $161.8 million in the prior year, which excludes $13.7 million of core revenue due to a realignment of inventory at customer distribution centers with sales benefits evolving as product mix changes.\n\nFiscal second quarter results were sharply impacted by certain customers delaying orders. The bulk of these delayed orders are expected to be shipped by the fiscal 2023 fourth quarter.\n\nFiscal second quarter results were also impacted by the company’s heavy-duty products, which experienced lower than anticipated sales due in large part to critical component shortages. Sales are expected to increase in the second half of the fiscal year, starting in the current fiscal third quarter.\n\nThe company’s diagnostics products also experienced supply chain disruptions for semi-conductor chips, which delayed order shipments to certain EV customers. Sales are expected to increase in the second half of the fiscal year, starting in the current fiscal third quarter.\n\nOrder flow for the company’s JBT-1 diagnostic testing equipment for automotive retail stores continues to be robust, with expectations for strong sales contributions from this product in the fiscal second half.\n\nNet loss for the fiscal 2023 second quarter was $6.5 million, or $0.34 per share, compared with net income of $3.7 million, or $0.19 per diluted share, a year ago -- impacted by approximately $5.0 million, or $0.26 per share, of non-cash items, as detailed in Exhibit 1. The company also was impacted by approximately $3.9 million, or $0.20 per share, of other costs, primarily transitory costs related to supply chain disruptions. In addition to the above items, results for the quarter were primarily impacted by unusual supply chain shortages of critical components for the company’s diagnostic products and heavy-duty products, as referenced above.\n\nResults for the fiscal ...

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