Motorcar Parts of America reported record sales for its fourth-quarter fiscal 2023 and full-year fiscal 2023.
Net sales for the fourth quarter were up 18.8% to a record $194.7 million.Net sales for full-year fiscal 2023 increased 5% to a record $683.1 million.
In the fiscal fourth quarter, MPA got a boost “from increasing product demand for the spring and summer seasons and recently implemented price increases,” the company said in a news release. The fourth-quarter results reflected “solid demand across multiple categories – including the company’s rotating electrical and emerging brake-related products.”
MPA reported fourth-quarter net income of $1.5 million, or 7 cents per diluted share, compared with a net loss of $322,000, or $2 cents per share, a year ago.
Fiscal fourth-quarter results were impacted by an income-tax expense of $10.4 million, or an effective rate of 87.7%, according to the company.
MPA attributed a $7.8 million increase in fourth-quarter interest expense to higher market rates, “primarily related to customer vendor financing programs,” which represented $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,” MPA said.
Fiscal fourth-quarter results included a $5.1 million employee-retention credit related to expenses incurred during the COVID-19 pandemic. After the pandemic, MPA implemented cost-reduction initiatives related to employee expenses, along with other cost-cutting measures, that resulted in approximately $5 million annual run-rate expense reductions, going forward, according to the company.
Full-year net sales for fiscal 2023 were $683.1 million, up from $650.3 million in the prior year. MPA’s fiscal year ended on March 31.
For the full year, MPA incurred a net loss of $4.2 million, or 22 cents per share, compared with net income of $7.4 million, or $38 cents per diluted share, a year ago.
“Fiscal 2023 record sales benefited from the strength of our products and excellent customer relationships, enhanced by being a critical supplier of non-discretionary automotive parts,” said Selwyn Joffe, chairman, president and CEO. “We expect our position will gain further momentum with favorable industry data indicating that consumers are continuing to defer new-car purchases, with the average vehicle age at a new record high of 12.5 years. In addition, as fiscal 2024 evolves, we expect to realize incremental operational efficiencies and increasing sales volume, particularly from our emerging brake-related product lines, as well as benefits from rational pricing increases across the board to help offset inflation and higher interest rates.
“Despite headwinds during the year, we remain optimistic about our business. We have built a solid foundation for growth and profitability, as evidenced by our guidance for fiscal 2024 discussed below and expect improving margins and cash flow supported by multiple product line offerings.”
