Motorcar Parts of America Inc (MPAA) Reports Record Sales and Gross Profit in Fiscal Q2
Record sales of $196.6 million in fiscal Q2 2024, a 14.0% increase year-over-year.
Record gross profit of $41.1 million in fiscal Q2 2024, up 55.2% from the previous year.
Net loss improved to $2.0 million in fiscal Q2 2024, compared to a net loss of $6.5 million in the same quarter last year.
Strong cash flow generation with approximately $15 million from operating activities during the quarter.
On November 9, 2023, Motorcar Parts of America Inc (NASDAQ:MPAA) released its earnings report for the fiscal second quarter and six-month period ended September 30, 2023, showcasing record sales and gross profit alongside a significant improvement in net loss. The company's strategic financial management and operational efficiencies have contributed to these robust results, which are particularly notable in the context of the current economic environment.
Fiscal Q2 2024 Performance
Motorcar Parts of America Inc (NASDAQ:MPAA) reported a 14.0% increase in net sales for the fiscal second quarter of 2024, reaching a record $196.6 million compared to $172.5 million in the prior year. The company achieved a record gross profit of $41.1 million, a substantial 55.2% increase from the previous year's $26.5 million. Gross margin also saw a significant improvement, standing at 20.9% compared to 15.4% a year earlier.
Despite these gains, MPAA experienced a net loss of $2.0 million, or $0.10 per share, which is an improvement from the net loss of $6.5 million, or $0.34 per share, reported in the same quarter of the previous fiscal year. The net loss for the fiscal 2024 second quarter included $8.7 million, or $0.44 per share, of non-cash items.
Interest expense for the quarter increased to $15.4 million, up by $6.1 million due to higher market rates. However, the company's strategic financial moves, including deferring the collection of approximately $15 million of receivables and paying down the balance of its term loan, have positioned it to better manage these expenses.
Demand for critical non-discretionary automotive parts is strong and we remain focused on leveraging our leadership position. As sales volume increases, particularly within certain of our emerging brake-related product categories, we expect to realize even further improvement in operational efficiencies. We remain optimistic about achieving our year-over-year financial targets and look forward to a strong second half," said Selwyn Joffe, chairman, president, and chief executive officer.
First Half Fiscal 2024 Results
For the six-month period, MPAA's net sales increased by 5.9% to a record $356.3 million from $336.5 million in the previous year. The net loss for the six-month period improved to $3.4 million, or $0.17 per share, from a net loss of $6.7 million, or $0.35 per share, a year ago. The net loss for the six months included $9.1 million, or $0.47 per share, of non-cash items.
Gross profit for the six-month period increased by 19.2% to a record $67.7 million from $56.8 million a year earlier, with gross margin improving to 19.0% from 16.9% in the prior year. The gross margin for the six-month period was affected by non-cash items totaling $8.1 million, or 2.3%, and cash items of $5.2 million, or 1.5%.
Motorcar Parts of America Inc (NASDAQ:MPAA) continues to demonstrate its ability to navigate the challenges of the automotive aftermarket parts industry, delivering strong financial results and maintaining a focus on operational excellence. The company's record sales and gross profit, coupled with improved net loss figures, reflect its resilience and strategic planning, positioning MPAA for continued success in the second half of the fiscal year.
Investors and interested parties are encouraged to review the full financial details and listen to the earnings conference call for a deeper understanding of MPAA's performance and outlook.
Explore the complete 8-K earnings release (here) from Motorcar Parts of America Inc for further details.
This article first appeared on GuruFocus.
