Tue, Jun 11, 8:06 PM (132 days ago)
Motorcar Parts of America, Inc. (MPAA) reported a 5.1% increase in net sales to $717.7 million for the fiscal year ended March 31, 2024, driven by strong demand for rotating electric and brake-related products. Gross profit improved by 16.3% to $132.6 million, with a gross margin increase of 1.8 percentage points to 18.5%, attributed to better facility utilization and price increases. Operating income rose by 26.5% to $46.1 million. The company generated $39.2 million in cash from operating activities, reducing net bank debt by $32.5 million to $114.0 million. Notably, MPAA restructured its credit agreement, eliminating the senior leverage ratio financial covenant and retiring term loans. The company anticipates continued growth in aftermarket business and leadership in test solutions and diagnostic equipment. However, risks include economic conditions, interest rate fluctuations, and customer concentration, with 83% of sales from the three largest customers.