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8 hours ago
- Automotive
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Motorcar Parts of America Reports Fiscal Year Results
- Record Sales and Gross Profit with Strong Cash Flow Generation - LOS ANGELES, June 09, 2025--(BUSINESS WIRE)--Motorcar Parts of America, Inc. (Nasdaq: MPAA) today reported strong results for its fiscal 2025 fourth quarter, with record net sales and gross profit, and strong cash flow generation for the year ended March 31, 2025. Key highlights for the fiscal year Net sales increased 5.5 percent to a record $757.4 million. Gross profit increased 16.1 percent to a record $153.8 million. Generated cash from operating activities of $45.5 million and reduced net bank debt by $32.6 million to $81.4 million. Repurchased 542,134 shares for $4.8 million. Fiscal 2025 Fourth Quarter Results Net sales for the fiscal 2025 fourth quarter increased 1.9 percent to $193.1 million from $189.5 million in the prior year. Gross profit for the fiscal 2025 fourth quarter increased 10.6 percent to a fourth quarter record $38.5 million from $34.8 million a year earlier. Gross margin for the fiscal 2025 fourth quarter was 19.9 percent compared with 18.4 percent a year earlier. Gross margin for the fiscal 2025 fourth quarter was impacted by $3.2 million, or 1.7 percent, of non-cash expenses, and $4.6 million, or 2.4 percent, for certain tariffs costs paid for products sold before price increases were effective, as detailed in Exhibit 3. Interest expense for the fiscal fourth quarter decreased by $2.1 million to $12.5 million from $14.6 million a year ago, impacted by lower average outstanding balances under the company's credit facility and lower interest rates. Net loss for the fiscal 2025 fourth quarter was $722,000, or $0.04 per share, reflecting the impact of $4.6 million, or $0.24 per share pre-tax, for certain tariffs costs paid for products sold before price increases were effective, as mentioned above. Net loss was also impacted by certain non-cash items of $2.6 million, or $0.14 per share, as detailed in Exhibit 1. Net income for the prior year was $1.3 million, including the impact of non-cash expenses and cash expenses as detailed in Exhibit 1. "We remain focused on continuing to execute and capitalize on our leadership position within the non-discretionary automotive aftermarket business, following a solid fiscal year," said Selwyn Joffe, chairman, president, and chief executive officer. He noted that the company is working with its suppliers and customers to address the current geopolitical environment and related challenges -- specifically tariffs and pricing. The company's solid financial position and cash flow generation support its competitive position and anticipated future growth. Joffe noted that over the last several years, the company proactively has focused on significantly reducing its reliance on Chinese suppliers, which today represents less than 25 percent, and has an established footprint in North America that could be utilized to further reduce this reliance going forward. Joffe highlighted that the company generated cash of approximately $45.5 million from operating activities during fiscal 2025, reduced net bank debt by $32.6 million for the fiscal year to $81.4 million from $114.0 million and also utilized $4.8 million for share repurchases. Twelve-Month Results Net sales for fiscal 2025 increased 5.5 percent to a record $757.4 million from $717.7 million a year ago. Gross profit for fiscal 2025 increased 16.1 percent to a record $153.8 million from $132.6 million a year earlier. Gross margin for fiscal 2025 was 20.3 percent compared with 18.5 percent a year earlier. Gross margin for fiscal 2025 was impacted by $13.5 million, or 1.8 percent, of non-cash expenses, and $5.9 million, or 0.8 percent, of one-time cash expenses, as detailed in Exhibit 4. Interest expense decreased by $4.5 million for fiscal 2025 to $55.6 million from $60.0 million a year ago, impacted by lower average outstanding balances under the company's credit facility and lower interest rates. Net loss for fiscal 2025 was $19.5 million, or $0.99 per share, including the impact of non-cash expenses of $25.0 million, or $1.27 per share, and one-time cash expenses of $6.9 million, or $0.35 per share, as detailed in Exhibit 2. Net loss for the prior fiscal year was $49.2 million, or $2.51 per share, including the impact of non-cash expenses of $50.3 million, or $2.56 per share, and cash expenses of $7.0 million, or $0.36 per share, as detailed in Exhibit 2. Share Repurchase During fiscal 2025 fourth quarter, the company repurchased 274,004 shares for $2.7 million at an average share price of $9.98, and for the full fiscal year, the company repurchased 542,134 shares for $4.8 million at an average share price of $8.91 under its current authorization program, supported by solid cash generation from operating activities. The company anticipates further opportunities to build shareholder value through enhanced profitability and strong cash generation. Fiscal 2026 Guidance Motorcar Parts of America expects net sales for the fiscal year ending March 31, 2026 to be between $780 million to $800 million, representing between 3.0 percent and 5.6 percent year-over-year growth. Operating income is expected to be between $86 million and $91 million, representing between 4.3 percent and 10.4 percent year-over-year growth. The company estimates depreciation and amortization will be approximately $11 million. These estimates do not include certain non-cash items and one-time expenses and exclude the impact of tariffs recently enacted due to the uncertainty and continuing changes. Use of Non-GAAP Measure This press release includes the following non-GAAP measure – EBITDA, which is not a measure of financial performance under GAAP and should not be considered as an alternative to net income as a measure of financial performance. The company believes this non-GAAP measure, when considered together with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to the company's results of operations. However, this non-GAAP measure has significant limitations in that it does not reflect all the costs and other items associated with the operation of the company's business as determined in accordance with GAAP. In addition, the company's non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, measures of financial performance in accordance with GAAP. For a definition and reconciliation of EBITDA to net income, its corresponding GAAP measure, see the financial tables included in this press release. Also, refer to our Form 8-K to which this release is attached, and other filings we make with the SEC, for further information regarding this measure. Earnings Conference Call and Webcast Selwyn Joffe, chairman, president and chief executive officer, and David Lee, chief financial officer, will host an investor conference call today at 10:00 a.m. Pacific time to discuss the company's financial results and operations. The call will be open to all interested investors either through a live audio webcast at or live by calling (888) 440-5584 (domestic) or (646) 960-0457 (international). For those who are not available to listen to the live broadcast, the call will be archived on Motorcar Parts of America's website A telephone playback of the conference call will also be available from approximately 1:00 p.m. Pacific time on June 9, 2025 through 8:59 p.m. Pacific time on June 16, 2025 by calling (800) 770-2030 (domestic) or (609) 800-9909 (toll) and using access code: 1545314. About Motorcar Parts of America, Inc. Motorcar Parts of America, Inc. is a remanufacturer, manufacturer, and distributor of automotive aftermarket parts -- including alternators, starters, wheel bearings and hub assemblies, brake calipers, brake pads, brake rotors, brake master cylinders, brake power boosters, turbochargers, and diagnostic testing equipment utilized in imported and domestic passenger vehicles, light trucks, and heavy-duty applications. Its products are sold to automotive retail outlets and the professional repair market throughout the United States, Canada, and Mexico, with facilities located in California, New York, Mexico, Malaysia, China and India, and administrative offices located in California, Tennessee, Mexico, Singapore, Malaysia, and Canada. In addition, the company's electrical vehicle subsidiary designs and manufactures testing solutions for performance, endurance, and production of multiple components in the electric power train – providing simulation, emulation, and production applications for the electrification of both automotive and aerospace industries, including electric vehicle charging systems. Additional information is available at The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the company's current expectations and beliefs concerning future developments and their potential effects on the company. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the company) and are subject to change based upon various factors. Reference is also made to the Risk Factors set forth in the company's Form 10-K Annual Report filed with the Securities and Exchange Commission (SEC) in June 2025 and in its Forms 10-Q filed with the SEC for additional risks and uncertainties facing the company. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES Consolidated Statements of Operations Three Months Ended March 31, Year Ended March 31, 2025 2024 2025 2024 (Unaudited) Net sales $ 193,105,000 $ 189,478,000 $ 757,354,000 $ 717,684,000 Cost of goods sold 154,610,000 154,685,000 603,526,000 585,133,000 Gross profit 38,495,000 34,793,000 153,828,000 132,551,000 Operating expenses: General and administrative 16,113,000 15,644,000 64,047,000 57,769,000 Sales and marketing 5,657,000 5,443,000 22,561,000 22,481,000 Research and development 3,521,000 2,643,000 11,405,000 9,995,000 Foreign exchange impact of lease liabilities and forward contracts (3,074,000 ) (1,155,000 ) 15,892,000 (3,814,000 ) Total operating expenses 22,217,000 22,575,000 113,905,000 86,431,000 Operating income 16,278,000 12,218,000 39,923,000 46,120,000 Other expenses: Interest expense, net 12,546,000 14,640,000 55,550,000 60,040,000 Change in fair value of compound net derivative liability 2,520,000 (2,710,000 ) 60,000 (1,020,000 ) Loss on extinguishment of debt - - - 168,000 Total other expenses 15,066,000 11,930,000 55,610,000 59,188,000 Income (loss) before income tax expense (benefit) 1,212,000 288,000 (15,687,000 ) (13,068,000 ) Income tax expense (benefit) 1,934,000 (1,050,000 ) 3,783,000 36,176,000 Net (loss) income $ (722,000 ) $ 1,338,000 $ (19,470,000 ) $ (49,244,000 ) Basic net (loss) income per share $ (0.04 ) $ 0.07 $ (0.99 ) $ (2.51 ) Diluted net loss per share $ (0.04 ) $ (0.03 ) $ (0.99 ) $ (2.51 ) Weighted average number of shares outstanding: Basic 19,519,836 19,662,380 19,685,322 19,601,204 Diluted 19,519,836 22,085,292 19,685,322 19,601,204 MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES Consolidated Balance Sheets March 31, 2025 March 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 9,429,000 $ 13,974,000 Short-term investments 1,881,000 1,837,000 Accounts receivable — net 91,064,000 96,296,000 Inventory — net 341,209,000 377,040,000 Inventory unreturned 18,460,000 20,288,000 Contract assets 29,606,000 27,139,000 Income tax receivable 4,208,000 5,683,000 Prepaid expenses and other current assets 15,614,000 18,202,000 Total current assets 511,471,000 560,459,000 Plant and equipment — net 31,990,000 38,338,000 Operating lease assets 66,603,000 83,973,000 Deferred income taxes 4,569,000 2,976,000 Long-term contract assets 336,268,000 320,282,000 Goodwill 3,205,000 3,205,000 Intangible assets — net 552,000 1,069,000 Other assets 2,978,000 1,700,000 TOTAL ASSETS $ 957,636,000 $ 1,012,002,000 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 141,906,000 $ 154,977,000 Accrued liabilities 30,211,000 30,205,000 Customer finished goods returns accrual 34,411,000 38,312,000 Contract liabilities 38,158,000 37,591,000 Revolving loan 90,787,000 128,000,000 Other current liabilities 5,570,000 7,021,000 Operating lease liabilities 9,982,000 8,319,000 Total current liabilities 351,025,000 404,425,000 Convertible notes, related party 35,207,000 30,776,000 Contract liabilities, less current portion 241,404,000 212,068,000 Deferred income taxes 362,000 511,000 Operating lease liabilities, less current portion 65,308,000 72,240,000 Other liabilities 6,631,000 6,872,000 Total liabilities 699,937,000 726,892,000 Commitments and contingencies Shareholders' equity: Preferred stock; par value $.01 per share, 5,000,000 shares authorized; none issued - - Series A junior participating preferred stock; par value $.01 per share, 20,000 shares authorized; none issued - - Common stock; par value $.01 per share, 50,000,000 shares authorized; 19,435,706 and 19,662,380 shares issued and outstanding at March 31, 2025 and 2024, respectively 194,000 197,000 Additional paid-in capital 234,413,000 236,255,000 Retained earnings 20,033,000 39,503,000 Accumulated other comprehensive income 3,059,000 9,155,000 Total shareholders' equity 257,699,000 285,110,000 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 957,636,000 $ 1,012,002,000 Additional Information and Non-GAAP Financial Measures To supplement the consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the company has included the following additional information and non-GAAP financial measures for the three and twelve months ended March 31, 2025 and 2024. Among other things, the company uses such additional information and non-GAAP adjusted financial measures in addition to and together with corresponding GAAP measures to help analyze the performance of its business. The company believes this information helps provide a more complete understanding of the company's results of operations and the factors and trends affecting the company's business. However, this information should be considered as a supplement to, and not as a substitute for, or superior to, information contained in the company's financial statements prepared in accordance with GAAP. In addition, the company's non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. The company defines EBITDA as earnings before interest, taxes, depreciation, and amortization. A reconciliation of EBITDA to net income is provided below along with information regarding such items. Items Impacting Net Income for the Three Months Ended March 31, 2025 and 2024 Exhibit 1 Three Months Ended March 31, 2025 2024 $ Per DilutedShare $ Per DilutedShare GAAP net (loss) income $ (722,000 ) $ (0.04 ) $ 1,338,000 $ (0.03 ) Non-cash items impacting net income Core and finished goods premium amortization $ 2,725,000 $ 0.14 $ 2,761,000 $ 0.13 Revaluation - cores on customers' shelves 489,000 0.03 973,000 0.04 Share-based compensation expenses 868,000 0.04 432,000 0.02 Foreign exchange impact of lease liabilities and forward contracts (3,074,000 ) (0.16 ) (1,155,000 ) (0.05 ) Change in fair value of compound net derivative liability 2,520,000 0.13 (2,710,000 ) (0.12 ) Tax effect (a) (882,000 ) (0.05 ) (75,000 ) (0.00 ) Tax valuation allowance - - 548,000 0.02 Total non-cash items impacting net income $ 2,646,000 $ 0.14 $ 774,000 $ 0.04 Cash items impacting net income Supply chain disruptions and related costs (b) $ - $ - $ 734,000 $ 0.03 New product line start-up costs and transition expenses, and severance and other (c) 160,000 0.01 840,000 0.04 Tariff costs paid for products sold before price increases were effective 4,607,000 0.24 - - Tax effect (a) (1,192,000 ) (0.06 ) (394,000 ) (0.02 ) Total cash items impacting net income $ 3,575,000 $ 0.18 $ 1,180,000 $ 0.05 (a) Tax effect is calculated by applying an income tax rate of 25.0% to items listed above; this rate may differ from the period's actual income tax rate. (b) For the three months ended March 31, 2024, consists of $734,000 impacting gross profit. (c) For the three months ended March 31, 2025, consists of $160,000 included in operating expenses. For the three months ended March 31, 2024, consists of $840,000 included in operating expenses. Items Impacting Net Income for the Twelve Months Ended March 31, 2025 and 2024 Exhibit 2 Twelve Months Ended March 31, 2025 2024 $ Per DilutedShare $ Per DilutedShare GAAP net loss $ (19,470,000 ) $ (0.99 ) $ (49,244,000 ) $ (2.51 ) Non-cash items impacting net income Core and finished goods premium amortization $ 10,738,000 $ 0.55 $ 10,963,000 $ 0.56 Revaluation - cores on customers' shelves 2,805,000 0.14 5,353,000 0.27 Share-based compensation expenses 3,877,000 0.20 4,700,000 0.24 Foreign exchange impact of lease liabilities and forward contracts 15,892,000 0.81 (3,814,000 ) (0.19 ) Change in fair value of compound net derivative liability and loss on extinguishment of debt 60,000 0.00 (852,000 ) (0.04 ) Tax effect (a) (8,343,000 ) (0.42 ) (4,088,000 ) (0.21 ) Tax valuation allowance - - 38,009,000 1.94 Total non-cash items impacting net income $ 25,029,000 $ 1.27 $ 50,271,000 $ 2.56 Cash items impacting net income Supply chain disruptions and related costs (b) $ - $ - $ 7,472,000 $ 0.38 New product line start-up costs and transition expenses, and severance and other (c) 4,598,000 0.23 1,820,000 0.09 Tariff costs paid for products sold before price increases were effective 4,607,000 0.23 - - Tax effect (a) (2,301,000 ) (0.12 ) (2,323,000 ) (0.12 ) Total cash items impacting net income $ 6,904,000 $ 0.35 $ 6,969,000 $ 0.36 (a) Tax effect is calculated by applying an income tax rate of 25.0% to items listed above; this rate may differ from the period's actual income tax rate. (b) For the twelve months ended March 31, 2024, consists of $7,472,000 impacting gross profit. (c) For the twelve months ended March 31, 2025, consists of $1,298,000 impacting gross profit and $3,300,000 included in operating expenses. For the twelve months ended March 31, 2024, consists of $1,820,000 included in operating expenses. Items Impacting Gross Profit for the Three Months Ended March 31, 2025 and 2024 Exhibit 3 Three Months Ended March 31, 2025 2024 $ Gross Margin $ Gross Margin GAAP gross profit $ 38,495,000 19.9% $ 34,793,000 18.4% Non-cash items impacting gross profit Core and finished goods premium amortization $ 2,725,000 1.4% $ 2,761,000 1.5% Revaluation - cores on customers' shelves 489,000 0.3% 973,000 0.5% Total non-cash items impacting gross profit $ 3,214,000 1.7% $ 3,734,000 2.0% Cash items impacting gross profit Supply chain disruptions and related costs $ - - $ 734,000 0.4% Tariff costs paid for products sold before price increases were effective 4,607,000 2.4% - - Total cash items impacting gross profit $ 4,607,000 2.4% $ 734,000 0.4% Items Impacting Gross Profit for the Twelve Months Ended March 31, 2025 and 2024 Exhibit 4 Twelve Months Ended March 31, 2025 2024 $ Gross Margin $ Gross Margin GAAP gross profit $ 153,828,000 20.3% $ 132,551,000 18.5% Non-cash items impacting gross profit Core and finished goods premium amortization $ 10,738,000 1.4% $ 10,963,000 1.5% Revaluation - cores on customers' shelves 2,805,000 0.4% 5,353,000 0.7% Total non-cash items impacting gross profit $ 13,543,000 1.8% $ 16,316,000 2.3% Cash items impacting gross profit Supply chain disruptions and related costs $ - - $ 7,472,000 1.0% New product line start-up costs and transition expenses 1,298,000 0.2% - - Tariff costs paid for products sold before price increases were effective 4,607,000 0.6% - - Total cash items impacting gross profit $ 5,905,000 0.8% $ 7,472,000 1.0% Items Impacting EBITDA for the Three and Twelve Months Ended March 31, 2025 and 2024 Exhibit 5 Three Months Ended March 31, Twelve Months Ended March 31, 2025 2024 2025 2024 GAAP net (loss) income $ (722,000 ) $ 1,338,000 $ (19,470,000 ) $ (49,244,000 ) Interest expense, net 12,546,000 14,640,000 55,550,000 60,040,000 Income tax expense (benefit) 1,934,000 (1,050,000 ) 3,783,000 36,176,000 Depreciation and amortization 2,538,000 2,775,000 10,400,000 11,619,000 EBITDA $ 16,296,000 $ 17,703,000 $ 50,263,000 $ 58,591,000 Non-cash items impacting EBITDA Core and finished goods premium amortization $ 2,725,000 $ 2,761,000 $ 10,738,000 $ 10,963,000 Revaluation - cores on customers' shelves 489,000 973,000 2,805,000 5,353,000 Share-based compensation expenses 868,000 432,000 3,877,000 4,700,000 Foreign exchange impact of lease liabilities and forward contracts (3,074,000 ) (1,155,000 ) 15,892,000 (3,814,000 ) Change in fair value of compound net derivative liability and loss on extinguishment of debt 2,520,000 (2,710,000 ) 60,000 (852,000 ) Total non-cash items impacting EBITDA $ 3,528,000 $ 301,000 $ 33,372,000 $ 16,350,000 Cash items impacting EBITDA Supply chain disruptions and related costs $ - $ 734,000 $ - $ 7,472,000 New product line start-up costs and transition expenses, and severance and other 160,000 840,000 4,598,000 1,820,000 Tariff costs paid for products sold before price increases were effective 4,607,000 - 4,607,000 - Total cash items impacting EBITDA $ 4,767,000 $ 1,574,000 $ 9,205,000 $ 9,292,000 View source version on Contacts Gary S. MaierVice President, Corporate Communications & IR(310) 972-5124
Business Wire
8 hours ago
- Automotive
- Business Wire
Motorcar Parts of America Reports Fiscal Year Results
LOS ANGELES--(BUSINESS WIRE)--Motorcar Parts of America, Inc. (Nasdaq: MPAA) today reported strong results for its fiscal 2025 fourth quarter, with record net sales and gross profit, and strong cash flow generation for the year ended March 31, 2025. Key highlights for the fiscal year Net sales increased 5.5 percent to a record $757.4 million. Gross profit increased 16.1 percent to a record $153.8 million. Generated cash from operating activities of $45.5 million and reduced net bank debt by $32.6 million to $81.4 million. Repurchased 542,134 shares for $4.8 million. Fiscal 2025 Fourth Quarter Results Net sales for the fiscal 2025 fourth quarter increased 1.9 percent to $193.1 million from $189.5 million in the prior year. Gross profit for the fiscal 2025 fourth quarter increased 10.6 percent to a fourth quarter record $38.5 million from $34.8 million a year earlier. Gross margin for the fiscal 2025 fourth quarter was 19.9 percent compared with 18.4 percent a year earlier. Gross margin for the fiscal 2025 fourth quarter was impacted by $3.2 million, or 1.7 percent, of non-cash expenses, and $4.6 million, or 2.4 percent, for certain tariffs costs paid for products sold before price increases were effective, as detailed in Exhibit 3. Interest expense for the fiscal fourth quarter decreased by $2.1 million to $12.5 million from $14.6 million a year ago, impacted by lower average outstanding balances under the company's credit facility and lower interest rates. Net loss for the fiscal 2025 fourth quarter was $722,000, or $0.04 per share, reflecting the impact of $4.6 million, or $0.24 per share pre-tax, for certain tariffs costs paid for products sold before price increases were effective, as mentioned above. Net loss was also impacted by certain non-cash items of $2.6 million, or $0.14 per share, as detailed in Exhibit 1. Net income for the prior year was $1.3 million, including the impact of non-cash expenses and cash expenses as detailed in Exhibit 1. 'We remain focused on continuing to execute and capitalize on our leadership position within the non-discretionary automotive aftermarket business, following a solid fiscal year,' said Selwyn Joffe, chairman, president, and chief executive officer. He noted that the company is working with its suppliers and customers to address the current geopolitical environment and related challenges -- specifically tariffs and pricing. The company's solid financial position and cash flow generation support its competitive position and anticipated future growth. Joffe noted that over the last several years, the company proactively has focused on significantly reducing its reliance on Chinese suppliers, which today represents less than 25 percent, and has an established footprint in North America that could be utilized to further reduce this reliance going forward. Joffe highlighted that the company generated cash of approximately $45.5 million from operating activities during fiscal 2025, reduced net bank debt by $32.6 million for the fiscal year to $81.4 million from $114.0 million and also utilized $4.8 million for share repurchases. Twelve-Month Results Net sales for fiscal 2025 increased 5.5 percent to a record $757.4 million from $717.7 million a year ago. Gross profit for fiscal 2025 increased 16.1 percent to a record $153.8 million from $132.6 million a year earlier. Gross margin for fiscal 2025 was 20.3 percent compared with 18.5 percent a year earlier. Gross margin for fiscal 2025 was impacted by $13.5 million, or 1.8 percent, of non-cash expenses, and $5.9 million, or 0.8 percent, of one-time cash expenses, as detailed in Exhibit 4. Interest expense decreased by $4.5 million for fiscal 2025 to $55.6 million from $60.0 million a year ago, impacted by lower average outstanding balances under the company's credit facility and lower interest rates. Net loss for fiscal 2025 was $19.5 million, or $0.99 per share, including the impact of non-cash expenses of $25.0 million, or $1.27 per share, and one-time cash expenses of $6.9 million, or $0.35 per share, as detailed in Exhibit 2. Net loss for the prior fiscal year was $49.2 million, or $2.51 per share, including the impact of non-cash expenses of $50.3 million, or $2.56 per share, and cash expenses of $7.0 million, or $0.36 per share, as detailed in Exhibit 2. Share Repurchase During fiscal 2025 fourth quarter, the company repurchased 274,004 shares for $2.7 million at an average share price of $9.98, and for the full fiscal year, the company repurchased 542,134 shares for $4.8 million at an average share price of $8.91 under its current authorization program, supported by solid cash generation from operating activities. The company anticipates further opportunities to build shareholder value through enhanced profitability and strong cash generation. Fiscal 2026 Guidance Motorcar Parts of America expects net sales for the fiscal year ending March 31, 2026 to be between $780 million to $800 million, representing between 3.0 percent and 5.6 percent year-over-year growth. Operating income is expected to be between $86 million and $91 million, representing between 4.3 percent and 10.4 percent year-over-year growth. The company estimates depreciation and amortization will be approximately $11 million. These estimates do not include certain non-cash items and one-time expenses and exclude the impact of tariffs recently enacted due to the uncertainty and continuing changes. Use of Non-GAAP Measure This press release includes the following non-GAAP measure – EBITDA, which is not a measure of financial performance under GAAP and should not be considered as an alternative to net income as a measure of financial performance. The company believes this non-GAAP measure, when considered together with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to the company's results of operations. However, this non-GAAP measure has significant limitations in that it does not reflect all the costs and other items associated with the operation of the company's business as determined in accordance with GAAP. In addition, the company's non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, measures of financial performance in accordance with GAAP. For a definition and reconciliation of EBITDA to net income, its corresponding GAAP measure, see the financial tables included in this press release. Also, refer to our Form 8-K to which this release is attached, and other filings we make with the SEC, for further information regarding this measure. Earnings Conference Call and Webcast Selwyn Joffe, chairman, president and chief executive officer, and David Lee, chief financial officer, will host an investor conference call today at 10:00 a.m. Pacific time to discuss the company's financial results and operations. The call will be open to all interested investors either through a live audio webcast at or live by calling (888) 440-5584 (domestic) or (646) 960-0457 (international). For those who are not available to listen to the live broadcast, the call will be archived on Motorcar Parts of America's website A telephone playback of the conference call will also be available from approximately 1:00 p.m. Pacific time on June 9, 2025 through 8:59 p.m. Pacific time on June 16, 2025 by calling (800) 770-2030 (domestic) or (609) 800-9909 (toll) and using access code: 1545314. About Motorcar Parts of America, Inc. Motorcar Parts of America, Inc. is a remanufacturer, manufacturer, and distributor of automotive aftermarket parts -- including alternators, starters, wheel bearings and hub assemblies, brake calipers, brake pads, brake rotors, brake master cylinders, brake power boosters, turbochargers, and diagnostic testing equipment utilized in imported and domestic passenger vehicles, light trucks, and heavy-duty applications. Its products are sold to automotive retail outlets and the professional repair market throughout the United States, Canada, and Mexico, with facilities located in California, New York, Mexico, Malaysia, China and India, and administrative offices located in California, Tennessee, Mexico, Singapore, Malaysia, and Canada. In addition, the company's electrical vehicle subsidiary designs and manufactures testing solutions for performance, endurance, and production of multiple components in the electric power train – providing simulation, emulation, and production applications for the electrification of both automotive and aerospace industries, including electric vehicle charging systems. Additional information is available at The Private Securities Litigation Reform Act of 1995 provides a 'safe harbor' for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the company's current expectations and beliefs concerning future developments and their potential effects on the company. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the company) and are subject to change based upon various factors. Reference is also made to the Risk Factors set forth in the company's Form 10-K Annual Report filed with the Securities and Exchange Commission (SEC) in June 2025 and in its Forms 10-Q filed with the SEC for additional risks and uncertainties facing the company. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES Consolidated Balance Sheets March 31, 2025 March 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 9,429,000 $ 13,974,000 Short-term investments 1,881,000 1,837,000 Accounts receivable — net 91,064,000 96,296,000 Inventory — net 341,209,000 377,040,000 Inventory unreturned 18,460,000 20,288,000 Contract assets 29,606,000 27,139,000 Income tax receivable 4,208,000 5,683,000 Prepaid expenses and other current assets 15,614,000 18,202,000 Total current assets 511,471,000 560,459,000 Plant and equipment — net 31,990,000 38,338,000 Operating lease assets 66,603,000 83,973,000 Deferred income taxes 4,569,000 2,976,000 Long-term contract assets 336,268,000 320,282,000 Goodwill 3,205,000 3,205,000 Intangible assets — net 552,000 1,069,000 Other assets 2,978,000 1,700,000 TOTAL ASSETS $ 957,636,000 $ 1,012,002,000 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 141,906,000 $ 154,977,000 Accrued liabilities 30,211,000 30,205,000 Customer finished goods returns accrual 34,411,000 38,312,000 Contract liabilities 38,158,000 37,591,000 Revolving loan 90,787,000 128,000,000 Other current liabilities 5,570,000 7,021,000 Operating lease liabilities 9,982,000 8,319,000 Total current liabilities 351,025,000 404,425,000 Convertible notes, related party 35,207,000 30,776,000 Contract liabilities, less current portion 241,404,000 212,068,000 Deferred income taxes 362,000 511,000 Operating lease liabilities, less current portion 65,308,000 72,240,000 Other liabilities 6,631,000 6,872,000 Total liabilities 699,937,000 726,892,000 Commitments and contingencies Shareholders' equity: Preferred stock; par value $.01 per share, 5,000,000 shares authorized; none issued - - Series A junior participating preferred stock; par value $.01 per share, 20,000 shares authorized; none issued - - Common stock; par value $.01 per share, 50,000,000 shares authorized; 19,435,706 and 19,662,380 shares issued and outstanding at March 31, 2025 and 2024, respectively 194,000 197,000 Additional paid-in capital 234,413,000 236,255,000 Retained earnings 20,033,000 39,503,000 Accumulated other comprehensive income 3,059,000 9,155,000 Total shareholders' equity 257,699,000 285,110,000 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 957,636,000 $ Expand Additional Information and Non-GAAP Financial Measures To supplement the consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the company has included the following additional information and non-GAAP financial measures for the three and twelve months ended March 31, 2025 and 2024. Among other things, the company uses such additional information and non-GAAP adjusted financial measures in addition to and together with corresponding GAAP measures to help analyze the performance of its business. The company believes this information helps provide a more complete understanding of the company's results of operations and the factors and trends affecting the company's business. However, this information should be considered as a supplement to, and not as a substitute for, or superior to, information contained in the company's financial statements prepared in accordance with GAAP. In addition, the company's non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. The company defines EBITDA as earnings before interest, taxes, depreciation, and amortization. A reconciliation of EBITDA to net income is provided below along with information regarding such items. Items Impacting Net Income for the Three Months Ended March 31, 2025 and 2024 Exhibit 1 Expand Three Months Ended March 31, 2025 2024 $ Per Diluted Share $ Per Diluted Share GAAP net (loss) income $ (722,000 ) $ (0.04 ) $ 1,338,000 $ (0.03 ) Non-cash items impacting net income Core and finished goods premium amortization $ 2,725,000 $ 0.14 $ 2,761,000 $ 0.13 Revaluation - cores on customers' shelves 489,000 0.03 973,000 0.04 Share-based compensation expenses 868,000 0.04 432,000 0.02 Foreign exchange impact of lease liabilities and forward contracts (3,074,000 ) (0.16 ) (1,155,000 ) (0.05 ) Change in fair value of compound net derivative liability 2,520,000 0.13 (2,710,000 ) (0.12 ) Tax effect (a) (882,000 ) (0.05 ) (75,000 ) (0.00 ) Tax valuation allowance - - 548,000 0.02 Total non-cash items impacting net income $ 2,646,000 $ 0.14 $ 774,000 $ 0.04 Cash items impacting net income Supply chain disruptions and related costs (b) $ - $ - $ 734,000 $ 0.03 New product line start-up costs and transition expenses, and severance and other (c) 160,000 0.01 840,000 0.04 Tariff costs paid for products sold before price increases were effective 4,607,000 0.24 - - Tax effect (a) (1,192,000 ) (0.06 ) (394,000 ) (0.02 ) Total cash items impacting net income $ 3,575,000 $ 0.18 $ 1,180,000 $ 0.05 (a) Tax effect is calculated by applying an income tax rate of 25.0% to items listed above; this rate may differ from the period's actual income tax rate. (b) For the three months ended March 31, 2024, consists of $734,000 impacting gross profit. (c) For the three months ended March 31, 2025, consists of $160,000 included in operating expenses. For the three months ended March 31, 2024, consists of $840,000 included in operating expenses. Expand Items Impacting Net Income for the Twelve Months Ended March 31, 2025 and 2024 Exhibit 2 Expand Twelve Months Ended March 31, 2025 2024 $ Per Diluted Share $ Per Diluted Share GAAP net loss $ (19,470,000 ) $ (0.99 ) $ (49,244,000 ) $ (2.51 ) Non-cash items impacting net income Core and finished goods premium amortization $ 10,738,000 $ 0.55 $ 10,963,000 $ 0.56 Revaluation - cores on customers' shelves 2,805,000 0.14 5,353,000 0.27 Share-based compensation expenses 3,877,000 0.20 4,700,000 0.24 Foreign exchange impact of lease liabilities and forward contracts 15,892,000 0.81 (3,814,000 ) (0.19 ) Change in fair value of compound net derivative liability and loss on extinguishment of debt 60,000 0.00 (852,000 ) (0.04 ) Tax effect (a) (8,343,000 ) (0.42 ) (4,088,000 ) (0.21 ) Tax valuation allowance - - 38,009,000 1.94 Total non-cash items impacting net income $ 25,029,000 $ 1.27 $ 50,271,000 $ 2.56 Cash items impacting net income Supply chain disruptions and related costs (b) $ - $ - $ 7,472,000 $ 0.38 New product line start-up costs and transition expenses, and severance and other (c) 4,598,000 0.23 1,820,000 0.09 Tariff costs paid for products sold before price increases were effective 4,607,000 0.23 - - Tax effect (a) (2,301,000 ) (0.12 ) (2,323,000 ) (0.12 ) Total cash items impacting net income $ 6,904,000 $ 0.35 $ 6,969,000 $ 0.36 (a) Tax effect is calculated by applying an income tax rate of 25.0% to items listed above; this rate may differ from the period's actual income tax rate. (b) For the twelve months ended March 31, 2024, consists of $7,472,000 impacting gross profit. (c) For the twelve months ended March 31, 2025, consists of $1,298,000 impacting gross profit and $3,300,000 included in operating expenses. For the twelve months ended March 31, 2024, consists of $1,820,000 included in operating expenses. Expand Items Impacting Gross Profit for the Three Months Ended March 31, 2025 and 2024 Exhibit 3 Expand Items Impacting Gross Profit for the Twelve Months Ended March 31, 2025 and 2024 Exhibit 4 Expand Items Impacting EBITDA for the Three and Twelve Months Ended March 31, 2025 and 2024 Exhibit 5 Expand Three Months Ended March 31, Twelve Months Ended March 31, 2025 2024 2025 2024 GAAP net (loss) income $ (722,000 ) $ 1,338,000 $ (19,470,000 ) $ (49,244,000 ) Interest expense, net 12,546,000 14,640,000 55,550,000 60,040,000 Income tax expense (benefit) 1,934,000 (1,050,000 ) 3,783,000 36,176,000 Depreciation and amortization 2,538,000 2,775,000 10,400,000 11,619,000 EBITDA $ 16,296,000 $ 17,703,000 $ 50,263,000 $ 58,591,000 Non-cash items impacting EBITDA Core and finished goods premium amortization $ 2,725,000 $ 2,761,000 $ 10,738,000 $ 10,963,000 Revaluation - cores on customers' shelves 489,000 973,000 2,805,000 5,353,000 Share-based compensation expenses 868,000 432,000 3,877,000 4,700,000 Foreign exchange impact of lease liabilities and forward contracts (3,074,000 ) (1,155,000 ) 15,892,000 (3,814,000 ) Change in fair value of compound net derivative liability and loss on extinguishment of debt 2,520,000 (2,710,000 ) 60,000 (852,000 ) Total non-cash items impacting EBITDA $ 3,528,000 $ 301,000 $ 33,372,000 $ 16,350,000 Cash items impacting EBITDA Supply chain disruptions and related costs $ - $ 734,000 $ - $ 7,472,000 New product line start-up costs and transition expenses, and severance and other 160,000 840,000 4,598,000 1,820,000 Tariff costs paid for products sold before price increases were effective 4,607,000 - 4,607,000 - Total cash items impacting EBITDA $ 4,767,000 $ 1,574,000 $ 9,205,000 $ 9,292,000 Expand
Yahoo
14-05-2025
- Automotive
- Yahoo
Insiders Of Motorcar Parts of America Reap Rewards After Their Investment Jumps Another US$833k
Motorcar Parts of America, Inc. (NASDAQ:MPAA) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a US$21m rise in the company's market capitalisation, translating to a gain of 73% on their initial investment. Put another way, the original US$1.14m acquisition is now worth US$1.98m. Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Over the last year, we can see that the biggest insider purchase was by Director Douglas Trussler for US$874k worth of shares, at about US$5.86 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$10.16. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive. Motorcar Parts of America insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! See our latest analysis for Motorcar Parts of America Motorcar Parts of America is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket. Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Motorcar Parts of America insiders own about US$12m worth of shares. That equates to 6.3% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders. It doesn't really mean much that no insider has traded Motorcar Parts of America shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Motorcar Parts of America and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Motorcar Parts of America has 1 warning sign we think you should be aware of. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Automotive
- Yahoo
Why Motorcar Parts of America, Inc. (MPAA) Is Surging in 2025
We recently published an article titled Why These 15 Vehicles & Parts Stocks Are Surging In 2025. In this article, we are going to take a look at where Motorcar Parts of America, Inc. (NASDAQ:MPAA) stands against the other vehicles and parts stocks. Certain automotive companies have held up surprisingly well in the current environment, and that's especially true with companies that supply automotive parts. The high interest rate regime was supposed to crush automotive companies across the board, and early tariffs specifically targeted countries that produced the most automotive parts for the U.S. Even then. These stocks have done well since high interest rates have made it difficult for low-income consumers to buy new cars. Instead, they have opted for repairing their existing vehicles, which has been a tailwind for automotive parts companies for the past two years. The average age of vehicles was already at a record 12.6 years in 2024, so this tailwind isn't going away anytime soon. Customers who have higher incomes have kept on buying new vehicles. It is mostly because of them that consumer spending has held up across the board. Here are the biggest winners from this trend. Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified 15 Financial Services Stocks that are up the Most in 2025 in another article. Methodology For this article, I screened the best-performing vehicles & parts stocks year-to-date. I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Is Alcoa Corporation (AA) the Best Aluminum Stock to Buy According to Billionaires? A mechanic in a workshop replacing a starter alternator with a new one. Motorcar Parts of America, Inc. (NASDAQ:MPAA) Number of Hedge Fund Holders In Q4 2024: 16 Motorcar Parts of America, Inc. (NASDAQ:MPAA) is a remanufacturer, manufacturer, and distributor of automotive aftermarket parts including alternators, starters, wheel bearing assemblies, brake components, and test solutions for electric vehicle powertrain development. In its fiscal third-quarter 2025 earnings report, Motorcar Parts of America significantly exceeded Wall Street expectations with earnings per share of $0.11 (versus forecasted $0.02) and revenue of $186.2 million (exceeding expected $178.7 million).
Yahoo
30-03-2025
- Automotive
- Yahoo
We Like These Underlying Return On Capital Trends At Motorcar Parts of America (NASDAQ:MPAA)
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So on that note, Motorcar Parts of America (NASDAQ:MPAA) looks quite promising in regards to its trends of return on capital. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. To calculate this metric for Motorcar Parts of America, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.098 = US$59m ÷ (US$950m - US$349m) (Based on the trailing twelve months to December 2024). Thus, Motorcar Parts of America has an ROCE of 9.8%. On its own, that's a low figure but it's around the 11% average generated by the Auto Components industry. See our latest analysis for Motorcar Parts of America Above you can see how the current ROCE for Motorcar Parts of America compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for Motorcar Parts of America . We're glad to see that ROCE is heading in the right direction, even if it is still low at the moment. The data shows that returns on capital have increased substantially over the last five years to 9.8%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 40%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed. All in all, it's terrific to see that Motorcar Parts of America is reaping the rewards from prior investments and is growing its capital base. Astute investors may have an opportunity here because the stock has declined 11% in the last five years. That being the case, research into the company's current valuation metrics and future prospects seems fitting. If you want to know some of the risks facing Motorcar Parts of America we've found 2 warning signs (1 is significant!) that you should be aware of before investing here. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
