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Mar 31, 2022
MPA Q4 2022 Earnings Report
Reported record annual sales with strong demand for non-discretionary aftermarket parts and the completion of a multi-year build-out program for the company’s brake-related manufacturing operations.
Key Takeaways
Motorcar Parts of America reported a decrease in net sales for the fiscal fourth quarter, with $163.9 million compared to $168.1 million in the prior-year period. The company experienced a net loss of $332,000, or $0.02 per share, compared to a net income of $835,000, or $0.04 per diluted share, in the same period last year. Despite these challenges, the company achieved record sales for fiscal year 2022.
Net sales for the fiscal 2022 fourth quarter were $163.9 million compared with $168.1 million in the prior-year period, impacted by softness in January and February offset by strength in the last month of the quarter.
Net loss for the same period was $332,000, or $0.02 per share, compared with net income of $835,000, or $0.04 per diluted share, a year ago.
Gross profit for the fiscal 2022 fourth quarter was $25.8 million compared with $32.1 million a year earlier.
Motorcar Parts of America expects net sales for its fiscal year ending March 31, 2023 to be between $680 million and $700 million, representing between 4.6 and 7.6 percent year-over-year growth.
MPA
MPA
Forward Guidance
Motorcar Parts of America expects net sales for its fiscal year ending March 31, 2023 to be between $680 million and $700 million, representing between 4.6 and 7.6 percent year-over-year growth.
Positive Outlook
- Net sales are expected to increase between 6.8 and 9.9 percent in fiscal year 2023, excluding $13.3 million of core revenue realized in fiscal year 2022
- Future margin expansion expected from additional price increases
- Future margin expansion expected from operating efficiencies as the new fiscal year progresses
- Upside opportunities are expected to be realized by increasing sales through product-line growth in each category
- The company expects to benefit from leveraging the company’s cost discipline
Challenges Ahead
- Operating income is expected to be between $57 million and $61 million, before the non-cash foreign exchange impact of lease liabilities and forward contracts, the non-cash impact of revaluation of cores on customers’ shelves, and supply chain disruptions and costs related to COVID-19.
- Global supply chain challenges and inflationary costs impacted margins.
- Strategic inventory investments to support growth and mitigate supply chain logistics impacted cash flow for fiscal year.
- The company estimates other non-cash items will be approximately $21 million, including core and finished goods premium amortization and share-based compensation, impacting operating income.
- The company estimates cash expenses will be approximately $2 million for special EV-related research and development expenses, impacting operating income.