Motorcar Parts of America(MPAA) - 2025 Q3 - Quarterly Results

Financial Performance - Net sales for fiscal 2025 third quarter increased 8.3% to a record $186.2 million from $171.9 million in the prior year[4] - Gross profit for fiscal 2025 third quarter increased 49.4% to a record $44.9 million from $30.0 million a year earlier, with a gross margin of 24.1% compared to 17.5%[5] - Net income for the fiscal 2025 third quarter was $2.3 million, or $0.11 per diluted share, a significant improvement from a net loss of $47.2 million in the prior year[8] - For the nine-month period, net sales increased 6.8% to a record $564.2 million from $528.2 million a year ago[11] - Gross profit for the nine-month period increased 18.0% to a record $115.3 million, with a gross margin of 20.4% compared to 18.5% a year earlier[12] - GAAP net income for the three months ended December 31, 2024, was $2,291,000, compared to a net loss of $47,214,000 for the same period in 2023[29] - GAAP gross profit for the three months ended December 31, 2024, was $44,882,000, with a gross margin of 24.1%, up from $30,043,000 and a margin of 17.5% in 2023[34] - For the nine months ended December 31, 2024, GAAP net loss was $18,748,000, an improvement from a loss of $50,582,000 in the same period of 2023[31] - The company reported a gross profit of $115,333,000 for the nine months ended December 31, 2024, with a gross margin of 20.4%, compared to $97,758,000 and 18.5% in 2023[36] Cash Flow and Debt Management - Cash generated from operating activities during fiscal 2025 third quarter was approximately $34.4 million, and net bank debt was reduced by $30.3 million to $84.0 million[10] - Total current liabilities decreased from $404,425,000 on March 31, 2024, to $348,611,000 on December 31, 2024, a reduction of approximately 13.8%[25] - Cash and cash equivalents decreased from $13,974,000 on March 31, 2024, to $10,810,000 on December 31, 2024, a decline of approximately 22.9%[25] Shareholder Value and Strategic Initiatives - The company remains focused on enhancing shareholder value and achieving continued success through strategic initiatives[9] - The company repurchased 268,130 shares for $2.1 million at an average share price of $7.82 during the fiscal third quarter[15] Expenses and Non-Cash Items - Interest expense for the fiscal third quarter decreased by $3.9 million to $14.4 million from $18.3 million a year ago[7] - Non-cash expenses impacted net income by $5.0 million and gross profit by $3.4 million for the fiscal 2025 third quarter[6] - Non-cash items impacting net income for the three months ended December 31, 2024, totaled $4,961,000, compared to $40,372,000 in 2023[29] - Total non-cash items impacting EBITDA rose to $6.615 million in Q3 2024, up from $3.881 million in Q3 2023, indicating increased non-cash expenses[37] Supply Chain and Operational Challenges - The company experienced supply chain disruptions impacting gross profit, with costs of $1,555,000 for the three months ended December 31, 2023[30] - Supply chain disruptions and related costs were eliminated in Q3 2024, compared to $1.555 million in Q3 2023[37] Tax and Depreciation - Income tax expense for Q3 2024 was $1.115 million, a decrease from $37.281 million in Q3 2023, reflecting a reduction of 97%[37] - Depreciation and amortization expenses decreased to $2.532 million in Q3 2024 from $2.878 million in Q3 2023, a decline of 12%[37] EBITDA Performance - EBITDA for Q3 2024 increased to $20.373 million, compared to $11.242 million in Q3 2023, reflecting a growth of 81.7%[37] - The company reported a total of $33.967 million in EBITDA for the nine months ended December 31, 2024, down from $40.888 million in the same period of 2023[37] - Foreign exchange impact of lease liabilities and forward contracts contributed $2.460 million to EBITDA in Q3 2024, compared to a negative impact of $3.149 million in Q3 2023[37] Asset Management - Total assets decreased from $1,012,002,000 on March 31, 2024, to $949,508,000 on December 31, 2024, representing a decline of approximately 6.2%[25] - Long-term contract assets increased from $320,282,000 on March 31, 2024, to $334,424,000 on December 31, 2024, an increase of approximately 4.3%[25]