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

Financial Performance - Consolidated net sales for the three months ended December 31, 2024, were $186,176,000, an increase of$14,314,000, or 8.3%, from $171,862,000 in the same period of 2023[112] - Gross profit for the three months ended December 31, 2024, was$44,882,000, representing a gross margin of 24.1%, compared to $30,043,000 and 17.5$17,581,000, an increase from $9,524,000 in the same period of 2023[120] - Consolidated net sales for the nine months ended December 31, 2024, were$564,249,000, an increase of $36,043,000, or 6.8$528,206,000 in the same period of 2023[126] - Gross profit for the nine months ended December 31, 2024, was $115,333,000, with a gross margin of 20.4$97,758,000 and 18.5% in the same period of 2023[128] Expenses and Costs - Interest expense for the three months ended December 31, 2024, decreased by $3,862,000, or 21.1$14,435,000 from $18,297,000 in the same period of 2023[121] - Cash flow provided by operations for the three months ended December 31, 2024, was$34,357,000, down from $53,615,000 in the same period of 2023[111] - Cash flow provided by operations for the nine months ended December 31, 2024, was$36,368,000, compared to $48,445,000 in the same period of 2023[125] - Research and development expenses for the three months ended December 31, 2024, increased by$469,000, or 18.5%, to $3,008,000 from$2,539,000 in the same period of 2023[118] - General and administrative expenses increased by $5,809,000, or 13.8$47,934,000 for the nine months ended December 31, 2024, primarily due to foreign currency losses and increased severance costs[130] - Research and development expenses rose by $532,000, or 7.2$7,884,000 for the nine months ended December 31, 2024, driven by increased headcount[132] Financial Position and Cash Flow - Consolidated operating income decreased to $23,645,000 for the nine months ended December 31, 2024, down from$33,902,000 in the prior year, largely due to a non-cash loss of $18,966,000 from foreign exchange impacts[134] - Interest expense decreased by$2,396,000, or 5.3%, to $43,004,000 for the nine months ended December 31, 2024, attributed to lower average outstanding balances and interest rates[135] - Net cash provided by operating activities was$36,368,000 for the nine months ended December 31, 2024, down from $48,445,000 in the previous year, influenced by changes in accounts payable and receivable[144] Financing and Capital Expenditures - The company had$268,620,000 in senior secured financing, including a $238,620,000 revolving loan facility and a$30,000,000 term loan facility, with the credit facility maturing on December 12, 2028[147] - As of December 31, 2024, $94,802,000 was outstanding under the revolving facility, with an interest rate of 7.66$2,531,000 for the nine months ended December 31, 2024, compared to $559,000 in 2023, marking an increase of approximately 352$5,000,000 in capital expenditures during fiscal 2025 to support global growth initiatives and current operations[158] Supplier Finance and Obligations - Commitments from participating financial institutions in the supplier finance program increased to $27,000,000 from$15,000,000 during the three months ended December 31, 2024[157] - Outstanding supplier obligations confirmed as valid under the supplier finance program amounted to $31,809,000 as of December 31, 2024[157] Other Financial Information - The change in fair value of the compound net derivative liability associated with convertible notes resulted in a non-cash gain of$2,460,000 for the nine months ended December 31, 2024[136] - The company repurchased 268,130 shares of common stock for $2,096,000 during the nine months ended December 31, 2024, with$20,841,000 utilized and $16,159,000 remaining under the share repurchase program[143] - Accounts receivable discounted increased to$488,505,000 for the nine months ended December 31, 2024, compared to $465,073,000 in 2023, reflecting a growth of approximately 5.5$81,000 and $243,000 for the three and nine months ended December 31, 2024, respectively[159] - The company has no material changes in market risk from the previous disclosures as of March 31, 2024[170] - The company is currently evaluating the impact of new accounting standards issued by the FASB on its financial statement disclosures[164][167][169] - There is an immaterial amount accrued related to various lawsuits and claims against the company[162]