Motorcar Parts of America, has announced its financial results
Motorcar Parts of America, has announced its financial results for the fiscal third quarter and nine-month period ending December 31, 2024. The company reported record-breaking sales and gross profits, alongside a positive outlook for the full fiscal year, underpinned by strategic initiatives aimed at enhancing profitability.
Fiscal 2025 Third Quarter Highlights:
Motorcar Parts of America achieved notable growth during the fiscal third quarter of 2025. Net sales surged by 8.3%, reaching a record $186.2 million, compared to $171.9 million in the same quarter of the previous year. This increase is attributed to strong market demand and successful execution of strategic business plans.
Gross profit witnessed a significant rise of 49.4%, climbing to a record $44.9 million from $30.0 million a year earlier. The gross margin improved to 24.1%, up from 17.5% in the previous year, despite being impacted by $3.4 million in non-cash expenses. This margin expansion reflects efficient cost management and operational improvements.
The company reported a net income of $2.3 million, or $0.11 per diluted share, for the quarter. This includes the impact of $5.0 million in non-cash expenses, equating to $0.24 per diluted share. In contrast, the same quarter last year saw a net loss of $47.2 million, or $2.40 per share, heavily influenced by $40.4 million in non-cash expenses and $1.4 million in cash expenses.
Operating activities generated $34.4 million in cash, enabling the company to reduce net bank debt by $30.3 million, lowering it to $84.0 million from $114.3 million. Additionally, Motorcar Parts of America repurchased 268,130 shares for $2.1 million, demonstrating a commitment to enhancing shareholder value.
Interest expenses decreased by $3.9 million to $14.4 million, driven by lower average outstanding balances under the credit facility and reduced interest rates, further bolstering financial performance.
Management Commentary:
Selwyn Joffe, Chairman, President, and CEO, expressed satisfaction with the company’s performance, highlighting the positive impact of strategic initiatives. “We achieved solid results for the quarter and continue to benefit from efforts designed to enhance our performance. Our leadership position in the non-discretionary aftermarket parts market, supported by quality products and customer-centric service, positions us well for continued growth,” said Joffe.
Nine-Month Financial Performance:
For the nine-month period ending December 31, 2024, Motorcar Parts of America reported net sales of $564.2 million, marking a 6.8% increase from $528.2 million in the prior year. This growth underscores the company’s resilience and strong market presence.
Gross profit for the nine-month period rose by 18.0% to $115.3 million, compared to $97.8 million the previous year. The gross margin improved to 20.4% from 18.5%, despite being affected by $10.3 million in non-cash expenses and $1.3 million in one-time cash expenses. Additionally, onboarding new business resulted in $4.0 million in one-time expenses.
Interest expenses for the nine-month period decreased by $2.4 million to $43.0 million, reflecting improved debt management and favorable interest rate conditions.
The company reported a net loss of $18.7 million, or $0.95 per share, for the nine-month period, including the impact of $22.4 million in non-cash expenses and $3.3 million in one-time cash expenses. This represents a significant improvement from the prior year’s net loss of $50.6 million, or $2.58 per share, which included $49.5 million in non-cash expenses and $5.8 million in cash expenses.
Share Repurchase Program:
During the fiscal third quarter, Motorcar Parts of America repurchased 268,130 shares for $2.1 million, at an average price of $7.82 per share. This buyback, supported by strong cash generation, underscores the company’s focus on returning value to shareholders.
Motorcar Parts of America remains optimistic about its growth prospects, driven by strong business fundamentals and strategic initiatives. The company anticipates continued profitability enhancements and robust cash generation, further supporting shareholder value.
Non-GAAP Financial Measures:
The company’s financial disclosures include EBITDA, a non-GAAP measure. While EBITDA provides valuable insights into operational performance, it should not be viewed as an alternative to net income under GAAP. Investors are encouraged to consider both GAAP and non-GAAP measures for a comprehensive understanding of financial results.
