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Dec 31, 2019
MPA Q3 2020 Earnings Report
Reported record third quarter sales and generated record cash flow from operations and improved margins.
Key Takeaways
Motorcar Parts of America reported a profitable third quarter with increased net sales and gross profit compared to the same period last year. The company generated $22 million in cash flow from operations and saw margin improvement. Net sales increased to $125.6 million, and net income was $865,000, or $0.04 per diluted share.
Net sales for the fiscal 2020 third quarter increased to $125.6 million.
Adjusted net sales for the fiscal 2020 third quarter increased to $127.7 million.
Net income for the fiscal 2020 third quarter was $865,000, or $0.04 per diluted share.
Gross profit for the fiscal 2020 third quarter was $27.7 million.
MPA
MPA
Forward Guidance
Motorcar Parts of America anticipates net sales of approximately $534 million and adjusted net sales of approximately $539 million for fiscal year 2020.
Positive Outlook
- Sales momentum improving in the current fiscal fourth quarter.
- Strategic investments are creating a transformative platform for growth.
- Expanding position within the $125 billion aftermarket hard parts industry
- Footprint of the future is rapidly evolving
- Expect to realize incremental benefits from our investments as we reach our target completion by the end of the second quarter of our new fiscal year
Challenges Ahead
- Industry sales softness
- Deferral of certain product orders late in the quarter
- Gross margin was impacted by non-cash expenses of $3.7 million
- Gross margin was impacted by transition costs of $2.1 million
- Updated fiscal 2020 sales guidance due to factors impacting the fiscal third quarter