Motorcar Parts of America (MPAA) Q4 2022 Earnings Call Transcript – The Motley Fool

June 15, 2022 by No Comments

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Motorcar Parts of America (MPAA -7.22%)
Q4 2022 Earnings Call
Jun 14, 2022, 1:00 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the Motorcar Parts of America’s fiscal 2022 fourth quarter and year-end conference call. [Operator instructions] It is now my pleasure to turn today’s call over to Mr.

Gary Maier, investor relations. Sir, please go ahead.

Gary Maier — Investor Relations

Thank you, Brent. Thanks, everyone, for joining us. Before I begin the call and I turn it over to Selwyn Joffe, chairman, president, and chief executive officer; and David Lee, the company’s chief financial officer, I’d like to remind everyone of the safe harbor statement included in today’s press release. Private Securities Litigation Reform Act of 1995 provides a safe harbor for certain forward-looking statements, including statements made during today’s call.

Such forward-looking statements are based on the company’s current expectations and beliefs concerning future developments and their potential effects on the company. There can be no assurance that future developments affecting the company will be those anticipated by us. Actual results may differ from these projected forward-looking statements. These forward-looking statements involve significant risks and uncertainties, some of which are beyond the control of the company and are subject to change based upon various factors.

The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For a more detailed discussion of some of the ongoing risks and uncertainties of the company’s business, I refer you to the various filings with the Securities and Exchange Commission. With that said, I’d like to begin the call and turn it over to Selwyn for our prepared remarks.

Selwyn Joffe — Chairman, President, and Chief Executive Officer

Thank you, Gary. I appreciate everyone joining us today. I hope you’re all safe and healthy. As announced this morning, we delivered record net sales of $650.3 million for fiscal 2022, representing a year-over-year increase of 20.3%.

We achieved this exceptional growth despite continued global supply chain challenges and the continued COVID environment. I should also highlight several additional successes during the year. We developed a comprehensive line of brake pads utilizing an industry-leading formulation, and brake rotors serving the professional installer market under the company’s Quality-Built brand. We secured multi-year new business commitments and opportunities of more than $100 million, primarily across multiple brake-related products.

We have successfully expanded sales through additional product line offerings in Mexico. We completed a multi-year expansion program of our facilities in Mexico, including completion of the new brake caliper remanufacturing facility. We have added capacity to support anticipated future growth with limited additional capex investment. We extended the maturity date of our credit facility from June 2023 to May 2026, to enhance our liquidity and capital resources.

We secured inventory, which enabled us to support our customers, meet demand, and obtain new business, despite worldwide supply chain and logistics challenges. We secured purchase orders from all major automotive retailers for rotating electrical benchtop testing equipment. We opened an …….

Source: https://www.fool.com/earnings/call-transcripts/2022/06/14/motorcar-parts-of-america-mpaa-q4-2022-earnings-ca/

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