Financial Performance - Sales increased by 5.1 percent to a record $717.7 million in fiscal 2024[149] - Gross profit rose 16.3 percent to $132.6 million, with gross margin increasing by 1.8 percentage points to 18.5 percent[149] - Operating income increased 26.5 percent to $46.1 million[149] - Consolidated net sales for fiscal 2024 were $717,684,000, an increase of $34,610,000, or 5.1%, from fiscal 2023's $683,074,000 due to strong demand for rotating electric and brake-related product lines[200] - Consolidated gross margin improved to 18.5% in fiscal 2024 from 16.7% in fiscal 2023, attributed to better facility utilization and price increases[201] - Operating income for fiscal 2024 was $46,120,000, an increase of $9,674,000, or 26.5%, from $36,446,000 in fiscal 2023[209] Cash Flow and Debt Management - Cash generated from operating activities was approximately $39.2 million[149] - Cash flows provided by operations for fiscal 2024 were $39,172,000, a significant improvement from $(21,754,000) in fiscal 2023[199] - Net bank debt was reduced by $32.5 million to $114.0 million[149] - The outstanding balance under the Revolving Facility was $128,000,000 as of March 31, 2024, compared to $145,200,000 in 2023[227] - The company issued $32,000,000 in convertible notes due in 2029, bearing an interest rate of 10.0% per annum, with the first interest payment due on April 1, 2024[229] - The effective interest rate on the convertible notes was 18.3% as of March 31, 2024, reflecting the amortization of debt issuance costs[238] Inventory and Returns - Reserves for excess and obsolete inventory increased to $17,372,000 at March 31, 2024, from $16,436,000 at March 31, 2023, primarily due to excess finished goods inventory[173] - Customer finished goods returns accrual was $38,312,000 at March 31, 2024, compared to $37,984,000 at March 31, 2023, reflecting changes in returned goods authorizations[193] - Finished goods turnover for fiscal 2024 was 3.7, slightly down from 3.6 in fiscal 2023, indicating a stable ability to convert inventory into revenue[199] Expenses and Cost Management - General and administrative expenses increased by $3,013,000, or 5.5%, to $57,769,000 in fiscal 2024 from $54,756,000 in fiscal 2023[204] - Research and development expenses decreased by $327,000, or 3.2%, to $9,995,000 in fiscal 2024 from $10,322,000 in fiscal 2023[207] - Interest expense rose to $60,040,000 in fiscal 2024, an increase of $20,485,000, or 51.8%, from $39,555,000 in fiscal 2023, primarily due to higher interest rates[210] Market and Operational Developments - A new facility was opened in Malaysia to support manufacturing of wheel hub products[149] - Market share for brake-related product lines increased, particularly in the professional installer market[149] - Sales growth in the Mexican market continued to accelerate, driven by market share gains[149] Financial Position and Risks - The company had working capital of $156,034,000 with a current ratio of 1.4:1.0 as of March 31, 2024[216] - The company recorded a discrete non-cash valuation allowance of $38,009,000 on deferred tax assets during fiscal 2024, leading to an effective tax rate of (276.8)%[213] - The company maintains an allowance for credit losses deemed adequate to cover potential losses from accounts receivable[255] - The company is exposed to foreign currency exchange risks primarily from the Mexican peso and Chinese yuan, and uses forward contracts to mitigate these risks[253] - The company’s financial position could be adversely affected if customers experience significant cash flow problems, impacting the outstanding receivable balance and the value of Remanufactured Cores[255] Future Outlook and Investments - Total capital expenditures for fiscal 2024 were $1,755,000, with an expected increase to approximately $7,000,000 for fiscal 2025 to support global growth initiatives[246] - The company has contractual obligations totaling $369,712,000, with significant payments due in the next 1 to 3 years amounting to $56,504,000[247] - The company has not repurchased any shares during fiscal 2024 and 2023, with $18,255,000 remaining available under the share repurchase program as of March 31, 2024[245]

Financial Data and Key Metrics Changes - Net sales increased by 5.1% to $717.7 million for fiscal year 2024, compared to $683.1 million in the previous year [4][5] - Gross profit rose by 16.3% to $132.6 million from $114 million a year earlier, with gross margin increasing by 1.8 percentage points to 18.5% [4][6] - Operating income for the full fiscal year increased by 26.5% to $46.1 million from $36.4 million in the prior year [8] - Interest expense for the full year was $60 million, up from $39.6 million, primarily due to higher market interest rates [9] Business Line Data and Key Metrics Changes - The fourth quarter net sales were $189.5 million, down from $194.7 million in the prior year, primarily impacted by softer wheel hub sales [5] - Gross profit for the fourth quarter was $34.8 million compared to $36.2 million a year earlier [6] - Operating income for the fourth quarter was $12.2 million, down from $23.7 million in the prior year [8] Market Data and Key Metrics Changes - The company is experiencing growth in all product categories except for wheel hubs, which are expected to regain momentum [25] - The hard part sales in Mexico are gaining momentum, with a focus on additional opportunities across multiple product lines [33] Company Strategy and Development Direction - The company is focused on generating cash from increased profitability and working capital, with expectations of benefiting from volume increases in the brake program [12] - Strategic initiatives include extending days outstanding on payables to reduce working capital by $20 million [13] - The company aims to introduce at least 800 new part numbers per year to maintain its leadership position [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a vibrant market and expects growth across all product lines, attributing some of the positive trends to weather and tax refunds [47] - The company anticipates achieving sales in the range of $746 million to $766 million for fiscal 2025, representing a year-over-year growth of 3.9% to 6.7% [96] - Management acknowledged the challenges posed by higher interest expenses but remains confident in the company's liquidity and cash generation capabilities [11][74] Other Important Information - The company has received input from major shareholders regarding board qualifications and is in the process of refreshing the board [2][37] - A new facility in Malaysia has been opened to support manufacturing of wheel hub products, enhancing competitive positioning [32] Q&A Session Summary Question: What trends are benefiting the April and May numbers? - Management noted a vibrant market with increases across all product lines, not just wheel hubs, and attributed some of this to weather and tax refunds [47] Question: When will the brake business margins meet company averages? - Management indicated that brake margins are currently below legacy product margins and expects significant improvement over the next two years [51][91] Question: Why has the wheel hub business been soft? - Management acknowledged a short-term setback in wheel hub sales but expects to regain momentum soon, with no current weakness in other product lines [58] Question: Will the board consider a buyback given the decline in shareholder equity? - Management confirmed that a buyback is authorized and would be considered, emphasizing strong liquidity and cash generation [74] Question: What can be communicated to prospective investors regarding recent earnings disappointment? - Management highlighted expectations for margin accretion and growth in products, along with incremental cash flow and flexibility in capital allocation [77]

Motorcar Parts (MPAA) came out with quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.16 per share. This compares to loss of $0.05 per share a year ago. These figures are adjusted for non-recurring items. Motorcar Parts, which belongs to the Zacks Automotive - Replacement Parts industry, posted revenues of $189.48 million for the quarter ended March 2024, missing the Zacks Consensus Estimate by 4.59%. This compares to year-ago revenues of $194.73 million. The company has topp ...

Exhibit 99.1 NEWS RELEASE CONTACT: Gary S. Maier Vice President, Corporate Communications & IR (310) 972-5124 MOTORCAR PARTS OF AMERICA REPORTS YEAR-END RESULTS Interest expense for the fiscal fourth quarter increased by $2.8 million, or $0.09 per diluted share, to $14.6 million from $11.9 million a year ago, primarily due to higher market interest rates and increased collection of receivables utilizing accounts receivable discount programs on higher sales, partially offset by lower average outstanding bala ...

Perhaps even better evidence of a long-term bottom can be found in the eash EBITDA and sales ratios vs. enterprise value. EV to trailing EBITDA stats over the past 30 YCharts - Motorcar Parts of America, EV to EBITDA, Since 1994, Recessions Shaded Then, when we compare/contrast Motorcar Parts of America's EBITDA valuation to pears and competitors in the auto parts industry, the stock really stands out as a bargain. The 2.1x estimate is far below the industry median average of 5.5x (60% discount actually), a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File No. 001-33861 MOTORCAR PARTS OF AMERICA, INC. (Exact name of registrant as specified in its charter) New York 11-2153962 (State or other jurisdiction ...

Financial Performance - Consolidated net sales for the three months ended September 30, 2023, were $196,639,000, an increase of $24,096,000, or 14.0%, compared to $172,543,000 for the same period in 2022[103] - Gross profit for the three months ended September 30, 2023, was $41,148,000, representing 20.9% of net sales, up from $26,516,000, or 15.4%, for the same period in 2022[104] - Operating income for the three months ended September 30, 2023, was $13,937,000, an increase of $12,085,000, or 652.5%, from $1,852,000 for the same period in 2022[110] - Consolidated net sales for the six months ended September 30, 2023, were $356,344,000, an increase of $19,816,000, or 5.9%, compared to $336,528,000 for the same period in 2022[117] - Gross profit for the six months ended September 30, 2023, was $67,715,000, or 19.0% of net sales, compared to $56,818,000, or 16.9%, for the same period in 2022[118] - Consolidated operating income increased by $15,191,000, or 165.4%, to $24,378,000 for the six months ended September 30, 2023, compared to $9,187,000 for the same period in 2022[124] Expenses - Interest expense for the three months ended September 30, 2023, was $15,383,000, an increase of $6,100,000, or 65.7%, from $9,283,000 for the same period in 2022[111] - General and administrative expenses for the three months ended September 30, 2023, were $14,325,000, a decrease of $521,000, or 3.5%, from $14,846,000 for the same period in 2022[106] - Research and development expenses for the three months ended September 30, 2023, were $2,438,000, a decrease of $232,000, or 8.7%, from $2,670,000 for the same period in 2022[108] - General and administrative expenses decreased by $1,553,000, or 5.5%, to $26,927,000 for the six months ended September 30, 2023, compared to $28,480,000 for the same period in 2022[120] - Sales and marketing expenses decreased by $501,000, or 4.3%, to $11,107,000 for the six months ended September 30, 2023, compared to $11,608,000 for the same period in 2022[121] - Research and development expenses decreased by $970,000, or 16.8%, to $4,813,000 for the six months ended September 30, 2023, compared to $5,783,000 for the same period in 2022[122] - Interest expense increased by $10,899,000, or 67.3%, to $27,103,000 for the six months ended September 30, 2023, compared to $16,204,000 for the same period in 2022[125] Cash Flow and Working Capital - Cash flow provided by operations for the three months ended September 30, 2023, was $15,300,000, a significant improvement from cash used in operations of $(15,972,000) for the same period in 2022[102] - Net cash used in operating activities was $5,170,000 for the six months ended September 30, 2023, an improvement from $16,954,000 for the same period in 2022[133] - Working capital increased to $163,243,000 at September 30, 2023, compared to $154,886,000 at March 31, 2023, with a current ratio of 1.4:1.0[129] Debt and Liabilities - The company had $32,000,000 of convertible notes outstanding, bearing interest at 10% per year, maturing on March 30, 2029[130] - The company repaid the remaining outstanding balance of its term loans and recorded a loss on extinguishment of debt of $168,000 during the six months ended September 30, 2023[127] - The fair value of the compound net derivative liability was recorded as a liability of $11,300,000 at September 30, 2023[143] Receivables and Discounts - Receivables discounted for the six months ended September 30, 2023, were $255,303,000, down from $283,359,000 in 2022, indicating a decrease of approximately 9.9%[146] - The annualized weighted average discount rate increased to 6.6% in 2023 from 4.4% in 2022, reflecting a rise of 50%[146] - The amount of discount recognized as interest expense rose to $15,940,000 for the six months ended September 30, 2023, compared to $11,293,000 in 2022, an increase of approximately 41.5%[146] Capital Expenditures - Total capital expenditures for the six months ended September 30, 2023, were $315,000, significantly lower than $2,792,000 in 2022, representing a decrease of approximately 88.7%[148] - The company expects to incur approximately $4,000,000 in capital expenditures during fiscal 2024 to support operations[148] Other Information - Rent expense for a related party lease was $81,000 for the three months ended September 30, 2023, and $162,000 for the six months, indicating a consistent expense structure[149] - There have been no material changes to critical accounting policies since the last annual report filed on June 14, 2023[151] - No material changes in market risk have been reported since the last annual report filed on June 14, 2023[152]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2023 New York 11-2153962 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 2929 California Street, Torrance, California 90503 (Address of principal executive offices) (Zip Code) ☐ TRANSITION REPO ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ______________ Commission File No. 001-33861 MOTORCAR PARTS OF AMERICA, INC. (Exact name of registrant as specified in its charter) New York 11-2153962 (State o ...

Financial Data and Key Metrics Changes - Net sales for Q4 2023 increased by 18.8% to a record $194.7 million from $163.9 million in the prior year, driven by increased product demand and price increases [9][76] - Gross profit for Q4 2023 rose by 40.3% to $36.2 million compared to $25.8 million a year earlier, with gross margin as a percentage of net sales improving to 18.6% from 15.7% [9][10] - Net income for Q4 2023 was $1.5 million or $0.07 per diluted share, compared to a net loss of $322,000 or $0.02 per share in the year-ago period [31][56] - Fiscal 2023 total interest expense was approximately 5.8% of net sales, expected to rise to about 7% in fiscal 2024 [32][78] Business Line Data and Key Metrics Changes - The company experienced significant traction in fiscal 2023 with brake-related product lines, on track to exceed the goal of $300 million in annual sales over several years [7] - Operating expenses decreased by $8.6 million to $12.4 million in Q4 2023, reflecting cost-reduction initiatives and a non-cash gain [30] Market Data and Key Metrics Changes - The company is positioned to address both internal combustion engine and electric vehicle markets, with strong demand for aftermarket parts expected to persist [8] - The company is expanding sales in Mexico, capitalizing on increased demand for aftermarket parts [7] Company Strategy and Development Direction - The company expects sales for fiscal 2024 to be between $720 million and $740 million, representing a year-over-year growth of 5.4% to 8.3% [24] - Strategic initiatives include enhancing profitability and cash flow through cost-reduction measures and operational efficiencies [53][84] - The company is focused on maturing existing product lines and leveraging new facilities for greater operating efficiencies [47] Management's Comments on Operating Environment and Future Outlook - Management noted that high-interest rates continue to impact profitability, but progress has been made in addressing these challenges with customers [5] - The outlook for product demand is positive, supported by favorable industry dynamics and an aging vehicle fleet [71][76] - Management expressed confidence in achieving EBITDA improvement in fiscal 2024 as the full benefit of price increases and higher sales volumes are realized [14][85] Other Important Information - The company incurred $7.8 million in higher interest expenses in Q4 2023, primarily due to increased market interest rates [53][78] - The company reported a net loss for fiscal 2023 of $4.2 million, impacted by non-cash and cash items related to supply chain disruptions [56] Q&A Session Summary Question: What product lines are still impacted by supply chain issues? - Management acknowledged that while the supply chain is improving, there are still challenges related to tariffs and shipping delays affecting certain product lines [40][41] Question: Can you discuss the price increases implemented in Q4 and plans for fiscal 2024? - Management indicated that price increases were implemented across the board, with expectations of over $20 million in recognized price increases for fiscal 2024 [44] Question: What changes are anticipated in the company's operations over the next few years? - Management highlighted a focus on maturing existing product lines and leveraging new facilities for operational efficiencies, aiming for significant revenue growth [47][67]