Motorcar Parts of America (MPA) released results for its fiscal 2023 first quarter ended June 30, 2022. The company says first quarter results reflect strong demand after a modest start, with momentum in May and June.
Highlights of the first quarter of fiscal 2023
Net sales reached a record fiscal first quarter of $164 million, up $15 million, or 10% year-over-year.
Gross profit was $30.3 million, an increase of $6.7 million, or 28.6% year over year.
Operating expenses were impacted by non-cash exchange rate fluctuations of approximately $820,000 compared to the prior year.
According to MPA, results were impacted by a $3 million increase in interest expense, primarily due to higher interest rates related to participation in accounts receivable discount programs offered by customers.
Results were also impacted by $0.22 per share of non-cash items and $0.15 per share of other items, primarily due to continued, albeit declining, transition costs related to supply chain disruptions. supply.
EBITDA was $10.5 million, impacted by $5.5 million of non-cash items and $3.7 million of other items, primarily due to transition costs.
“We posted record sales for a fiscal first quarter, which bolsters our optimism as we enter a new fiscal year – buoyed by strong demand for spare parts and tailwinds from an aging vehicle fleet. Our Emerging Products related to brakes, including brake calipers and in particular pads and rotors, which we officially launched this quarter, are seeing strong demand.Our investments are paying off and we are well positioned to capitalize on the industry’s leading position. business in both retail and traditional markets,” said Selwyn Joffe, Chairman, President and CEO.
Net sales for the first quarter of Fiscal 2023 increased $15 million, or 10%, to $164 million from $149 million in the prior year period.
Net loss for the first quarter of fiscal 2023 was $175,000, or $0.01 per share, compared to net income of $861,000, or $0.04 per diluted share, there is one year – impacted by approximately $4.2 million, or $0.22 per share, of non-cash items, including a non-cash loss of $678,000, or $0.04 per share on a pre-tax basis , for the foreign exchange impact of lease obligations and forward contracts. The company was also impacted by approximately $2.8 million, or $0.15 per share, of other costs, primarily transitional costs related to supply chain disruptions. Fiscal first quarter results were also impacted by higher interest expense of $3 million compared to the prior year.
Prior year net earnings of $861,000, or $0.04 per diluted share, were impacted by approximately $2.0 million, or $0.10 per diluted share, of non-cash items, including a non-cash gain of $2.5 million, or $0.13 per diluted share on a pre-tax basis, for the foreign exchange impact of lease liabilities and forward contracts. The company was also impacted by approximately $5.6 million, or $0.29 per share, of other costs, primarily transitional costs related to supply chain disruptions from the prior year.
Gross profit for the first quarter of fiscal 2023 increased $6.7 million, or 28.6%, to $30.3 million from $23.6 million a year earlier. Gross margin as a percentage of net sales for the first quarter of fiscal 2023 was 18.5% versus 15.8% a year earlier. Fiscal 2023 first-quarter gross margin was impacted 2.2% by the aforementioned non-cash items and 1.6% by transitional supply chain disruptions. In addition to the items mentioned above, gross margin in the first quarter of the fiscal year was also impacted by inflationary costs and new product line growth initiatives.