MPA Reports Record First Quarter Sales

MPA Reports Record 1st Quarter Sales

Net sales reached a fiscal first quarter record of $164 million, an increase of $15 million, or 10 percent year-over-year. 

Motorcar Parts of America (MPA) has reported results for its fiscal 2023 first quarter ended June 30, 2022. The company says the Q1 results reflect strong demand after a modest start, with momentum building in May and June. 

Fiscal 2023 First Quarter Highlights

Net sales reached a fiscal first quarter record of $164 million, an increase of $15 million, or 10 percent year-over-year. 

Gross profit was $30.3 million, an increase of $6.7 million, or 28.6 percent year over year. 

Operating expenses were impacted by non-cash foreign currency exchange fluctuations of approximately $820,000 compared with the prior year. 

MPA says results were impacted by $3 million of increased interest expenses, primarily due to higher interest rates related to participation in the accounts receivable discount programs offered by customers. 

Results also were impacted by $0.22 per share of non-cash items, and $0.15 per share of other items, primarily due to continuing, though diminishing, transitory costs related to supply chain disruptions. 

EBITDA was $10.5 million, which was impacted by $5.5 million of non-cash items and $3.7 million of other items, primarily due to transitory costs. 

“We reported record sales for a fiscal first quarter, which supports our optimism as we start a new fiscal year – supported by strong demand for replacement parts and tailwinds from an aging car fleet. Our emerging brake-related products – including brake calipers and in particular pads and rotors, which we formally launched this quarter, are experiencing strong demand. Our investments are bearing fruit and we are well-positioned to capitalize on the company’s leadership position within the retail and traditional markets,” said Selwyn Joffe, chairman, president and CEO. 

Net sales for the fiscal 2023 first quarter increased $15 million, or 10 percent, to $164 million from $149 million in the prior-year period. 

Net loss for the fiscal 2023 first quarter was $175,000, or $0.01 per share, compared with net income of $861,000, or $0.04 per diluted share, a year ago – impacted by approximately $4.2 million, or $0.22 per share, of non-cash items, including a non-cash loss of $678,000, or $0.04 per share on a pre-tax basis, for the foreign exchange impact of lease liabilities and forward contracts. The company also was impacted by approximately $2.8 million, or $0.15 per share, of other costs, primarily transitory costs related to supply chain disruptions. Results for the fiscal first quarter were also impacted by $3 million of higher interest expenses compared with the prior year. 

Prior-year net income of $861,000, or $0.04 per diluted share, was impacted by approximately $2.0 million, or $0.10 per diluted share, of non-cash items, including a non-cash gain of $2.5 million, or $0.13 per diluted share on a pre-tax basis, for the foreign exchange impact of lease liabilities and forward contracts. The company also was impacted by approximately $5.6 million, or $0.29 per share, of other costs, primarily transitory costs related to supply chain disruptions for the prior year. 

Gross profit for the fiscal 2023 first quarter increased $6.7 million, or 28.6 percent, to $30.3 million from $23.6 million a year earlier. Gross profit as a percentage of net sales for the fiscal 2023 first quarter was 18.5 percent compared with 15.8 percent a year earlier. Gross margin for the fiscal 2023 first quarter was impacted by 2.2 percent by the aforementioned non-cash items and 1.6 percent by the transitory supply chain disruptions. In addition to the items mentioned above, gross margin for the fiscal first quarter was further impacted by inflationary costs and new product line growth initiatives. 

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