Financial Data and Key Metrics Changes - Net sales for Q2 2026 increased by 6.4% to $221.5 million from $208.2 million in the prior year [13][14] - Gross profit for Q2 2026 increased by 3.5% to a record $42.7 million from $41.3 million a year earlier [15] - Operating income for Q2 2026 increased by 30.8% to $16.4 million from $12.5 million in the prior year [17] - Net bank debt decreased by $17.7 million to $56.7 million during Q2 2026 [23] - EBITDA for Q2 2026 was $16.5 million, reflecting $6.3 million of non-cash expenses [19] Business Line Data and Key Metrics Changes - The brake offerings category, particularly brake calipers, is experiencing strong market share growth [6][10] - Heavy-duty business is gaining momentum, with increased demand for aftermarket products in Mexico [8] - The diagnostic business is also growing, with the JBT1 benchtop tester leading the industry [8] Market Data and Key Metrics Changes - The average age of U.S. light vehicles has risen to 12.8 years, increasing replacement opportunities for aftermarket parts [5] - The number of vehicles on the road increased to 293.5 million from 289 million a year ago [5] Company Strategy and Development Direction - The company aims to be the leading supplier of non-discretionary automotive aftermarket parts, focusing on continuous improvement and shareholder value [4][5] - There is a strong emphasis on leveraging financial strength and operational footprint to gain competitive advantage [5] - The company is committed to enhancing margins through cost reduction initiatives and strategic supply chain sourcing [9] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about future growth opportunities despite recent consumer demand deferrals [10][27] - The company expects to maintain momentum and meet annual guidance expectations [27] - Management believes that non-discretionary products will continue to see demand despite some short-term deferrals [29] Other Important Information - The company repurchased 90,114 shares for $1.4 million at an average price of $15.41 during Q2 2026 [24] - Non-cash expenses impacted net loss for Q2 2026, which was $2.1 million, or $0.11 per share [18] Q&A Session Summary Question: Impact of deferral on the quarter - Management acknowledged a temporary deferral of purchases from a customer due to operational changes, expecting to recover this in the second half of the year [26][27] Question: Consumer behavior and demand deferral - Management noted that while there is some deferral in discretionary spending, their products are non-discretionary, meaning essential replacements cannot be delayed for long [29][30] Question: Market share trends and First Brands situation - Management indicated no major changes in market share but noted that brake-related products are gaining momentum [31] Question: Future cash flow utilization and debt levels - Management expressed intent to continue share repurchases if undervaluation persists and confirmed that debt levels are low and will continue to decrease [32][33]