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Jun 30, 2024
MPA Q1 2025 Earnings Report
Motorcar Parts of America reported fiscal first quarter results with record sales and a continued favorable full-year outlook.
Key Takeaways
Motorcar Parts of America reported a 6.4% increase in net sales, reaching $169.9 million, a first quarter record. Gross profit increased by 9.8% to $29.2 million and gross margin increased modestly to 17.2%. However, the company experienced a net loss of $18.1 million, impacted by an unfavorable non-cash foreign exchange loss and severance expenses.
Net sales increased 6.4 percent to $169.9 million.
Gross profit increased 9.8 percent to $29.2 million.
Gross margin increased modestly to 17.2 percent.
Implemented cost-reduction initiatives to provide annualized savings of approximately $7 million.
MPA
MPA
Forward Guidance
Motorcar Parts of America anticipates meaningful improvements to gross margins, gross profit and cash flow in the quarters ahead, supported by ongoing strategic actions throughout the entire organization.
Positive Outlook
- Sales volume improving.
- Ordering activity has gained momentum.
- Industry fundamentals are improving and will drive product demand.
- Margin improvement.
- Enhanced by multiple rounds of price increases.
Challenges Ahead
- Operating results impacted by an unfavorable non-cash $11.1 million foreign exchange loss from lease liabilities and forward contracts.
- There are a variety of factors related to financial performance beyond our control, such as non-cash items and interest rates.
- Net loss for the fiscal 2025 first quarter was $18.1 million compared with a net loss of $1.4 million a year ago.
- Operating expenses were $35.6 million compared with $16.1 million last year.
- Interest expense for the fiscal first quarter increased by $2.7 million to $14.4 million from $11.7 million a year ago.