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Jun 30, 2022

MPA Q1 2023 Earnings Report

Reported record sales for the first fiscal quarter, but experienced a net loss due to non-cash and other items.

Key Takeaways

Motorcar Parts of America reported record first-quarter sales of $164.0 million, a 10% increase year-over-year and a gross profit increase of 28.6%. However, the company experienced a net loss of $175,000, or $0.01 per share, due to non-cash items and costs related to supply chain disruptions.

Net sales reached a record $164.0 million, up 10.0 percent year over year.

Gross profit increased to $30.3 million, a 28.6 percent increase year over year.

Net loss for the quarter was $175,000, or $0.01 per share.

EBITDA was $10.5 million, impacted by non-cash and other items.

Total Revenue
$164M
Previous year: $149M
+10.0%
EPS
$0.36
Previous year: $0.43
-16.3%
Gross Margin
18.5%
Gross Profit
$30.3M
Previous year: $23.6M
+28.6%
Cash and Equivalents
$9.22M
Previous year: $24.9M
-63.0%
Free Cash Flow
-$2.36M
Previous year: -$6.66M
-64.6%
Total Assets
$1B
Previous year: $904M
+10.7%

MPA

MPA

Forward Guidance

The company anticipates future margin expansion from additional price increases and improved operating efficiencies. They also expect cash flow improvement as the fiscal year progresses.

Positive Outlook

  • Future margin expansion expected from additional price increases in the fiscal second quarter.
  • Improved operating efficiencies are anticipated as brake-related product volume increases.
  • Fixed cost leveraging opportunities are expected to be enhanced.
  • Cash flow improvement is expected as the new fiscal year gains momentum.
  • Strategic inventory build in fiscal 2022 is expected to benefit from previously announced top-line sales targets across all product lines.