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Motorcar Parts of America(MPAA) - 2025 Q2 - Quarterly Results
MPAAMotorcar Parts of America(MPAA)2024-11-12 12:58

Financial Performance - Net sales for the fiscal 2025 second quarter increased 5.9% to a record 208.2millionfrom208.2 million from 196.6 million in the prior year[4]. - Gross profit for the fiscal 2025 second quarter reached a record 41.3million,withagrossmarginof19.841.3 million, with a gross margin of 19.8%, down from 20.9% a year earlier[5]. - Net loss for the fiscal 2025 second quarter was 3.0 million, or 0.15pershare,comparedtoanetlossof0.15 per share, compared to a net loss of 2.0 million, or 0.10pershare,ayearago[7].−Forthesix−monthperiod,netsalesincreased6.10.10 per share, a year ago[7]. - For the six-month period, net sales increased 6.1% to a record 378.1 million from 356.3millionayearago[11].−GAAPnetlossforthethreemonthsendedSeptember30,2024,was356.3 million a year ago[11]. - GAAP net loss for the three months ended September 30, 2024, was (2,954,000), compared to a net loss of (1,958,000)inthesameperiodof2023[28].−ThecompanyreportedaGAAPnetlossof(1,958,000) in the same period of 2023[28]. - The company reported a GAAP net loss of (21,039,000) for the six months ended September 30, 2024, compared to a net loss of (3,368,000)inthesameperiodof2023[29].CashFlowandDebtManagement−Thecompanygenerated(3,368,000) in the same period of 2023[29]. Cash Flow and Debt Management - The company generated 22.9 million in cash from operating activities and reduced net bank debt by 22.0millionto22.0 million to 114.3 million[10]. - Interest expense for the fiscal second quarter decreased by 1.2millionto1.2 million to 14.2 million from 15.4millionayearago[6].−InterestexpenseforQ32024was15.4 million a year ago[6]. - Interest expense for Q3 2024 was 14,182,000, slightly down from 15,383,000inQ32023[32].GuidanceandFutureExpectations−Fiscal2025guidanceestimatesnetsalesbetween15,383,000 in Q3 2023[32]. Guidance and Future Expectations - Fiscal 2025 guidance estimates net sales between 746 million and 766million,representing3.9766 million, representing 3.9% to 6.7% year-over-year growth[17]. - The company expects operating income for fiscal 2025 to be between 79 million and 84million,beforecertainnon−cashitemsandone−timeexpenses[17].−Thecompanyanticipatescontinuedimprovementsingrossmargins,grossprofit,andcashflowintheupcomingquarters[8].AssetandLiabilityManagement−Totalcurrentassetsdecreasedto84 million, before certain non-cash items and one-time expenses[17]. - The company anticipates continued improvements in gross margins, gross profit, and cash flow in the upcoming quarters[8]. Asset and Liability Management - Total current assets decreased to 548,202,000 as of September 30, 2024, from 560,459,000asofMarch31,2024,representingadeclineofapproximately2.3560,459,000 as of March 31, 2024, representing a decline of approximately 2.3%[24]. - Total liabilities decreased slightly to 722,279,000 as of September 30, 2024, from 726,892,000asofMarch31,2024[24].−Totalshareholders′equitydecreasedto726,892,000 as of March 31, 2024[24]. - Total shareholders' equity decreased to 263,963,000 as of September 30, 2024, from 285,110,000asofMarch31,2024,adeclineofapproximately7.4285,110,000 as of March 31, 2024, a decline of approximately 7.4%[24]. Inventory and Receivables - Accounts receivable increased to 112,699,000 as of September 30, 2024, up from 96,296,000,reflectingagrowthofabout1796,296,000, reflecting a growth of about 17%[24]. - Inventory decreased to 378,776,000 as of September 30, 2024, down from 397,328,000,indicatingareductionofapproximately4.7397,328,000, indicating a reduction of approximately 4.7%[24]. Non-Cash and Cash Items Impact - Non-cash items impacting net income for the three months ended September 30, 2024, totaled 7,957,000, compared to 8,665,000in2023[28].−EBITDAforthesixmonthsendedSeptember30,2024,wassignificantlyimpactedbyforeignexchangeeffects,totaling8,665,000 in 2023[28]. - EBITDA for the six months ended September 30, 2024, was significantly impacted by foreign exchange effects, totaling 16,506,000[29]. - New product line start-up costs for the six months ended September 30, 2024, amounted to 4,438,000,comparedto4,438,000, compared to 684,000 in the same period of 2023[29]. - Total non-cash items impacting gross profit for Q3 2024 amounted to 3,785,000,representing1.83,785,000, representing 1.8% of gross profit, down from 4,702,000 or 2.4% in Q3 2023[30]. - Cash items impacting gross profit in Q3 2024 included new product line start-up costs of 1,298,000,whilesupplychaindisruptionsinQ32023incurredcostsof1,298,000, while supply chain disruptions in Q3 2023 incurred costs of 3,199,000[30]. - Total non-cash items impacting EBITDA for Q3 2024 were 10,609,000,downfrom10,609,000, down from 11,553,000 in Q3 2023[32]. - Cash items impacting EBITDA for Q3 2024 included new product line start-up costs of 1,498,000,whileQ32023hadcashitemsof1,498,000, while Q3 2023 had cash items of 3,548,000[32]. Gross Profit and Margins - Gross margin for the fiscal 2025 six-month period was 18.6%, compared to 19.0% a year earlier, impacted by non-cash and one-time cash expenses[12]. - GAAP gross profit for Q3 2024 was 41,277,000,withagrossmarginof19.841,277,000, with a gross margin of 19.8%, compared to 41,148,000 and a gross margin of 20.9% in Q3 2023[30]. - For the first six months of 2024, GAAP gross profit was 70,451,000,reflectingagrossmarginof18.670,451,000, reflecting a gross margin of 18.6%, versus 67,715,000 and a gross margin of 19.0% in the same period of 2023[31]. - The company experienced a decrease in supply chain disruption costs from $5,183,000 in the first half of 2023 to no costs reported in the first half of 2024[31].