Motorcar Parts of America, Inc. (MPAA) is a company dedicated to the production, reconditioning, and supply of essential aftermarket components for a ...
Motorcar Parts of America, Inc. (MPAA) is a prominent player in the automotive aftermarket industry, specializing in the remanufacturing, manufacturing, and distribution of essential components. The company's product portfolio encompasses rotating electrical parts such as alternators and starters, wheel hub assemblies and bearings, and a comprehensive range of braking system ...Motorcar Parts of America, Inc. (MPAA) is a prominent player in the automotive aftermarket industry, specializing in the remanufacturing, manufacturing, and distribution of essential components. The company's product portfolio encompasses rotating electrical parts such as alternators and starters, wheel hub assemblies and bearings, and a comprehensive range of braking system components including calipers, boosters, rotors, pads, and master cylinders. Additionally, MPAA has expanded into advanced technologies, providing testing and diagnostic solutions for electric vehicle (EV) powertrains, such as systems for testing electric motors, e-axles, and charging units. The company distributes its products across North America through major automotive retail chains, wholesale networks, and direct supply to automobile manufacturers for aftermarket and warranty programs. Financially, MPAA has a market capitalization of approximately $232 million, with a price-to-sales ratio of 0.30, indicating a potentially undervalued stock relative to revenue. Despite a recent loss, the company maintains a gross profit margin of about 19.9% and an EBITDA margin of 7%. The firm has a sizable employee base of over 5,600 people, reflecting its operational scale. Founded in 1968 by Mel Marks, the company was initially an importer of European and Japanese parts, and later renamed under the leadership of CEO Selwyn Joffe, who has been at the helm since 2003. MPAA is committed to sustainability through remanufacturing, reducing waste and energy consumption. With a strong focus on quality and technical support, the company continues to innovate and expand its product offerings to meet evolving market demands, particularly in the EV sector. Its headquarters in Torrance, California, serves as the hub for its operations, which extend throughout North America.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$789.8M
+4.3%
-20.8%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$12.4M
+163.7%
-238.0%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+20.2%
-0.3%
-31.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+7.2%
+36.7%
-80.2%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+1.6%
+161.0%
-274.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$22.9M
-44.1%
-108.5%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+2.9%
-46.4%
-163.4%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
75.0%
-3.9%
+20.5%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.46x
+0.3%
-1.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Hello, everyone. Thank you for joining us, and welcome to the Motorcar Parts of America Incorporated Fiscal 27 First Quarter Conference Call. After today's prepared remarks, we will host a question-and-answer. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Gary S. Maier. Vice president of corporate communications and investor relations. Please go ahead.
Gary S. Maier: Thank you. Thank you, Caleb, and thanks, everyone, for joining us. Before I turn the call over to Selwyn H. Joffe, Chairman, President and Chief Executive, and David Lee, the company's Chief Financial Officer. I would like to remind everyone of the Safe Harbor statement included in today's press release. The Private Securities Litigation Reform Act of 2 thousand provides a safe harbor for certain forward looking statements. Including statements made during today's conference 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. It can be no assurance that future developments affecting the company will be those anticipated. Motorcar Parts of America. Actual results may differ from those projected in the 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. In particular, expectations about anticipated future growth and opportunities customers may not be achieved. The company undertakes no obligation to publicly revise or update 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 company's various filings with the Securities and Exchange Commission. With that said, I would now like to begin the call and turn it over to Selwyn H. Joffe.
Selwyn H. Joffe: Okay. Thank you, Gary. I appreciate everyone joining us today. As stated in our earnings release issued this morning, we are still on target to meet our expectations for fiscal 27 notwithstanding anticipated headwinds we and the industry experienced during fiscal first quarter. Our confidence is bolstered by numerous new sales commitments. Business developments, and opportunities phasing in throughout fiscal 27. Some of which are being enhanced by the changing competitive landscape. Regarding the latter, let me start with a brief discussion of our recently announced Centric Parts brake Brands acquisition. Which we expect to relaunch by the current fiscal year end. We are excited about the strategic growth opportunities that we expect from the introduction of our new original Centric Brake brands product lines. Preliminary customer feedback indicates pent up demand and confidence …
