Latest news with #Joffe
IOL News
6 days ago
- Health
- IOL News
How the ‘sandwich generation' is stretching to care for loved ones, tech might be their lifeline
Many elderly parents rely on their children for essentials, not just food and rent, but now, more urgently than ever, for healthcare. Image: File photo. The so-called sandwich generation, people aged between 30-50 years old, are juggling school runs and zoom meetings, managing grocery lists for two households, and now, trying to make sure mum gets her blood pressure checked while helping their adult children find stable footing in an unforgiving economy. It's a full-time job. And no one's really talking about it. 'It's this silent pressure that people in their late 30s to 50s are shouldering. You're not just raising kids anymore, you're also parenting upwards. You're emotionally and often financially responsible for your parents, especially if they couldn't save enough for retirement. It's a lot,' Tania Joffe, founder of Unu Health said. South Africa's sandwich generation is feeling the squeeze. Many elderly parents rely on their children for essentials, not just food and rent, but now, more urgently than ever, for healthcare. At the same time, adult children may be boomeranging back home, still trying to find their feet in a high-unemployment economy. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ 'It's not uncommon for someone to pay for their child's university fees and their mother's blood pressure medication in the same month. And then their geyser bursts. It's relentless,' Joffe added. According to Stats SA, the average South African retiree's savings fall drastically short of what's needed for a comfortable retirement. Meanwhile, nearly half of South Africans aged 18–34 are unemployed. The 'in between' generation is holding it all together. In this environment, technology has become more than a convenience, it's a coping mechanism. 'Services like Checkers 60/60, Uber Eats, and online grocery deliveries have become essential tools for this generation. You can send mum groceries while you're in a meeting. You can get meds delivered to your dad without leaving your desk. And now, with the rise of telehealth, you can make sure they see a doctor too, even if they don't have medical aid,' Joffe said. This is where Joffe and her team at Unu Health saw an opportunity to ease the burden, not by selling medical services, but by creating a tool that gives people a simple, practical way to help. The new Unu Health CareCard voucher allows users to gift medical care to anyone with access to a smart phone, a parent, a domestic worker, a struggling sibling, to use for doctor consultations, prescriptions, or blood tests. 'It's dignity without dependence. You're not handing someone money and saying 'go figure it out'. You're giving them access to quality healthcare, quickly and privately. It's a subtle but powerful shift,' Joffe further said. For Joffe, this shift isn't just about convenience. It's about changing the way we see caregiving altogether. 'There's still a stigma around struggling to cope. But the reality is, the sandwich generation needs help. Not handouts, just tools to lighten the load,' she said. Joffe pointed out this isn't about selling healthcare apps or replacing real human interaction. 'It's about creating meaningful ways for people to care for each other. Technology is just the enabler. What matters is the intention,' she said.
Yahoo
09-06-2025
- Automotive
- Yahoo
Motorcar Parts of America Reports Fiscal Year Results
- Record Sales and Gross Profit with Strong Cash Flow Generation - LOS ANGELES, June 09, 2025--(BUSINESS WIRE)--Motorcar Parts of America, Inc. (Nasdaq: MPAA) today reported strong results for its fiscal 2025 fourth quarter, with record net sales and gross profit, and strong cash flow generation for the year ended March 31, 2025. Key highlights for the fiscal year Net sales increased 5.5 percent to a record $757.4 million. Gross profit increased 16.1 percent to a record $153.8 million. Generated cash from operating activities of $45.5 million and reduced net bank debt by $32.6 million to $81.4 million. Repurchased 542,134 shares for $4.8 million. Fiscal 2025 Fourth Quarter Results Net sales for the fiscal 2025 fourth quarter increased 1.9 percent to $193.1 million from $189.5 million in the prior year. Gross profit for the fiscal 2025 fourth quarter increased 10.6 percent to a fourth quarter record $38.5 million from $34.8 million a year earlier. Gross margin for the fiscal 2025 fourth quarter was 19.9 percent compared with 18.4 percent a year earlier. Gross margin for the fiscal 2025 fourth quarter was impacted by $3.2 million, or 1.7 percent, of non-cash expenses, and $4.6 million, or 2.4 percent, for certain tariffs costs paid for products sold before price increases were effective, as detailed in Exhibit 3. Interest expense for the fiscal fourth quarter decreased by $2.1 million to $12.5 million from $14.6 million a year ago, impacted by lower average outstanding balances under the company's credit facility and lower interest rates. Net loss for the fiscal 2025 fourth quarter was $722,000, or $0.04 per share, reflecting the impact of $4.6 million, or $0.24 per share pre-tax, for certain tariffs costs paid for products sold before price increases were effective, as mentioned above. Net loss was also impacted by certain non-cash items of $2.6 million, or $0.14 per share, as detailed in Exhibit 1. Net income for the prior year was $1.3 million, including the impact of non-cash expenses and cash expenses as detailed in Exhibit 1. "We remain focused on continuing to execute and capitalize on our leadership position within the non-discretionary automotive aftermarket business, following a solid fiscal year," said Selwyn Joffe, chairman, president, and chief executive officer. He noted that the company is working with its suppliers and customers to address the current geopolitical environment and related challenges -- specifically tariffs and pricing. The company's solid financial position and cash flow generation support its competitive position and anticipated future growth. Joffe noted that over the last several years, the company proactively has focused on significantly reducing its reliance on Chinese suppliers, which today represents less than 25 percent, and has an established footprint in North America that could be utilized to further reduce this reliance going forward. Joffe highlighted that the company generated cash of approximately $45.5 million from operating activities during fiscal 2025, reduced net bank debt by $32.6 million for the fiscal year to $81.4 million from $114.0 million and also utilized $4.8 million for share repurchases. Twelve-Month Results Net sales for fiscal 2025 increased 5.5 percent to a record $757.4 million from $717.7 million a year ago. Gross profit for fiscal 2025 increased 16.1 percent to a record $153.8 million from $132.6 million a year earlier. Gross margin for fiscal 2025 was 20.3 percent compared with 18.5 percent a year earlier. Gross margin for fiscal 2025 was impacted by $13.5 million, or 1.8 percent, of non-cash expenses, and $5.9 million, or 0.8 percent, of one-time cash expenses, as detailed in Exhibit 4. Interest expense decreased by $4.5 million for fiscal 2025 to $55.6 million from $60.0 million a year ago, impacted by lower average outstanding balances under the company's credit facility and lower interest rates. Net loss for fiscal 2025 was $19.5 million, or $0.99 per share, including the impact of non-cash expenses of $25.0 million, or $1.27 per share, and one-time cash expenses of $6.9 million, or $0.35 per share, as detailed in Exhibit 2. Net loss for the prior fiscal year was $49.2 million, or $2.51 per share, including the impact of non-cash expenses of $50.3 million, or $2.56 per share, and cash expenses of $7.0 million, or $0.36 per share, as detailed in Exhibit 2. Share Repurchase During fiscal 2025 fourth quarter, the company repurchased 274,004 shares for $2.7 million at an average share price of $9.98, and for the full fiscal year, the company repurchased 542,134 shares for $4.8 million at an average share price of $8.91 under its current authorization program, supported by solid cash generation from operating activities. The company anticipates further opportunities to build shareholder value through enhanced profitability and strong cash generation. Fiscal 2026 Guidance Motorcar Parts of America expects net sales for the fiscal year ending March 31, 2026 to be between $780 million to $800 million, representing between 3.0 percent and 5.6 percent year-over-year growth. Operating income is expected to be between $86 million and $91 million, representing between 4.3 percent and 10.4 percent year-over-year growth. The company estimates depreciation and amortization will be approximately $11 million. These estimates do not include certain non-cash items and one-time expenses and exclude the impact of tariffs recently enacted due to the uncertainty and continuing changes. Use of Non-GAAP Measure This press release includes the following non-GAAP measure – EBITDA, which is not a measure of financial performance under GAAP and should not be considered as an alternative to net income as a measure of financial performance. The company believes this non-GAAP measure, when considered together with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to the company's results of operations. However, this non-GAAP measure has significant limitations in that it does not reflect all the costs and other items associated with the operation of the company's business as determined in accordance with GAAP. In addition, the company's non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, measures of financial performance in accordance with GAAP. For a definition and reconciliation of EBITDA to net income, its corresponding GAAP measure, see the financial tables included in this press release. Also, refer to our Form 8-K to which this release is attached, and other filings we make with the SEC, for further information regarding this measure. Earnings Conference Call and Webcast Selwyn Joffe, chairman, president and chief executive officer, and David Lee, chief financial officer, will host an investor conference call today at 10:00 a.m. Pacific time to discuss the company's financial results and operations. The call will be open to all interested investors either through a live audio webcast at or live by calling (888) 440-5584 (domestic) or (646) 960-0457 (international). For those who are not available to listen to the live broadcast, the call will be archived on Motorcar Parts of America's website A telephone playback of the conference call will also be available from approximately 1:00 p.m. Pacific time on June 9, 2025 through 8:59 p.m. Pacific time on June 16, 2025 by calling (800) 770-2030 (domestic) or (609) 800-9909 (toll) and using access code: 1545314. About Motorcar Parts of America, Inc. Motorcar Parts of America, Inc. is a remanufacturer, manufacturer, and distributor of automotive aftermarket parts -- including alternators, starters, wheel bearings and hub assemblies, brake calipers, brake pads, brake rotors, brake master cylinders, brake power boosters, turbochargers, and diagnostic testing equipment utilized in imported and domestic passenger vehicles, light trucks, and heavy-duty applications. Its products are sold to automotive retail outlets and the professional repair market throughout the United States, Canada, and Mexico, with facilities located in California, New York, Mexico, Malaysia, China and India, and administrative offices located in California, Tennessee, Mexico, Singapore, Malaysia, and Canada. In addition, the company's electrical vehicle subsidiary designs and manufactures testing solutions for performance, endurance, and production of multiple components in the electric power train – providing simulation, emulation, and production applications for the electrification of both automotive and aerospace industries, including electric vehicle charging systems. Additional information is available at The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the company's current expectations and beliefs concerning future developments and their potential effects on the company. 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. Reference is also made to the Risk Factors set forth in the company's Form 10-K Annual Report filed with the Securities and Exchange Commission (SEC) in June 2025 and in its Forms 10-Q filed with the SEC for additional risks and uncertainties facing the company. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES Consolidated Statements of Operations Three Months Ended March 31, Year Ended March 31, 2025 2024 2025 2024 (Unaudited) Net sales $ 193,105,000 $ 189,478,000 $ 757,354,000 $ 717,684,000 Cost of goods sold 154,610,000 154,685,000 603,526,000 585,133,000 Gross profit 38,495,000 34,793,000 153,828,000 132,551,000 Operating expenses: General and administrative 16,113,000 15,644,000 64,047,000 57,769,000 Sales and marketing 5,657,000 5,443,000 22,561,000 22,481,000 Research and development 3,521,000 2,643,000 11,405,000 9,995,000 Foreign exchange impact of lease liabilities and forward contracts (3,074,000 ) (1,155,000 ) 15,892,000 (3,814,000 ) Total operating expenses 22,217,000 22,575,000 113,905,000 86,431,000 Operating income 16,278,000 12,218,000 39,923,000 46,120,000 Other expenses: Interest expense, net 12,546,000 14,640,000 55,550,000 60,040,000 Change in fair value of compound net derivative liability 2,520,000 (2,710,000 ) 60,000 (1,020,000 ) Loss on extinguishment of debt - - - 168,000 Total other expenses 15,066,000 11,930,000 55,610,000 59,188,000 Income (loss) before income tax expense (benefit) 1,212,000 288,000 (15,687,000 ) (13,068,000 ) Income tax expense (benefit) 1,934,000 (1,050,000 ) 3,783,000 36,176,000 Net (loss) income $ (722,000 ) $ 1,338,000 $ (19,470,000 ) $ (49,244,000 ) Basic net (loss) income per share $ (0.04 ) $ 0.07 $ (0.99 ) $ (2.51 ) Diluted net loss per share $ (0.04 ) $ (0.03 ) $ (0.99 ) $ (2.51 ) Weighted average number of shares outstanding: Basic 19,519,836 19,662,380 19,685,322 19,601,204 Diluted 19,519,836 22,085,292 19,685,322 19,601,204 MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES Consolidated Balance Sheets March 31, 2025 March 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 9,429,000 $ 13,974,000 Short-term investments 1,881,000 1,837,000 Accounts receivable — net 91,064,000 96,296,000 Inventory — net 341,209,000 377,040,000 Inventory unreturned 18,460,000 20,288,000 Contract assets 29,606,000 27,139,000 Income tax receivable 4,208,000 5,683,000 Prepaid expenses and other current assets 15,614,000 18,202,000 Total current assets 511,471,000 560,459,000 Plant and equipment — net 31,990,000 38,338,000 Operating lease assets 66,603,000 83,973,000 Deferred income taxes 4,569,000 2,976,000 Long-term contract assets 336,268,000 320,282,000 Goodwill 3,205,000 3,205,000 Intangible assets — net 552,000 1,069,000 Other assets 2,978,000 1,700,000 TOTAL ASSETS $ 957,636,000 $ 1,012,002,000 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 141,906,000 $ 154,977,000 Accrued liabilities 30,211,000 30,205,000 Customer finished goods returns accrual 34,411,000 38,312,000 Contract liabilities 38,158,000 37,591,000 Revolving loan 90,787,000 128,000,000 Other current liabilities 5,570,000 7,021,000 Operating lease liabilities 9,982,000 8,319,000 Total current liabilities 351,025,000 404,425,000 Convertible notes, related party 35,207,000 30,776,000 Contract liabilities, less current portion 241,404,000 212,068,000 Deferred income taxes 362,000 511,000 Operating lease liabilities, less current portion 65,308,000 72,240,000 Other liabilities 6,631,000 6,872,000 Total liabilities 699,937,000 726,892,000 Commitments and contingencies Shareholders' equity: Preferred stock; par value $.01 per share, 5,000,000 shares authorized; none issued - - Series A junior participating preferred stock; par value $.01 per share, 20,000 shares authorized; none issued - - Common stock; par value $.01 per share, 50,000,000 shares authorized; 19,435,706 and 19,662,380 shares issued and outstanding at March 31, 2025 and 2024, respectively 194,000 197,000 Additional paid-in capital 234,413,000 236,255,000 Retained earnings 20,033,000 39,503,000 Accumulated other comprehensive income 3,059,000 9,155,000 Total shareholders' equity 257,699,000 285,110,000 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 957,636,000 $ 1,012,002,000 Additional Information and Non-GAAP Financial Measures To supplement the consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the company has included the following additional information and non-GAAP financial measures for the three and twelve months ended March 31, 2025 and 2024. Among other things, the company uses such additional information and non-GAAP adjusted financial measures in addition to and together with corresponding GAAP measures to help analyze the performance of its business. The company believes this information helps provide a more complete understanding of the company's results of operations and the factors and trends affecting the company's business. However, this information should be considered as a supplement to, and not as a substitute for, or superior to, information contained in the company's financial statements prepared in accordance with GAAP. In addition, the company's non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. The company defines EBITDA as earnings before interest, taxes, depreciation, and amortization. A reconciliation of EBITDA to net income is provided below along with information regarding such items. Items Impacting Net Income for the Three Months Ended March 31, 2025 and 2024 Exhibit 1 Three Months Ended March 31, 2025 2024 $ Per DilutedShare $ Per DilutedShare GAAP net (loss) income $ (722,000 ) $ (0.04 ) $ 1,338,000 $ (0.03 ) Non-cash items impacting net income Core and finished goods premium amortization $ 2,725,000 $ 0.14 $ 2,761,000 $ 0.13 Revaluation - cores on customers' shelves 489,000 0.03 973,000 0.04 Share-based compensation expenses 868,000 0.04 432,000 0.02 Foreign exchange impact of lease liabilities and forward contracts (3,074,000 ) (0.16 ) (1,155,000 ) (0.05 ) Change in fair value of compound net derivative liability 2,520,000 0.13 (2,710,000 ) (0.12 ) Tax effect (a) (882,000 ) (0.05 ) (75,000 ) (0.00 ) Tax valuation allowance - - 548,000 0.02 Total non-cash items impacting net income $ 2,646,000 $ 0.14 $ 774,000 $ 0.04 Cash items impacting net income Supply chain disruptions and related costs (b) $ - $ - $ 734,000 $ 0.03 New product line start-up costs and transition expenses, and severance and other (c) 160,000 0.01 840,000 0.04 Tariff costs paid for products sold before price increases were effective 4,607,000 0.24 - - Tax effect (a) (1,192,000 ) (0.06 ) (394,000 ) (0.02 ) Total cash items impacting net income $ 3,575,000 $ 0.18 $ 1,180,000 $ 0.05 (a) Tax effect is calculated by applying an income tax rate of 25.0% to items listed above; this rate may differ from the period's actual income tax rate. (b) For the three months ended March 31, 2024, consists of $734,000 impacting gross profit. (c) For the three months ended March 31, 2025, consists of $160,000 included in operating expenses. For the three months ended March 31, 2024, consists of $840,000 included in operating expenses. Items Impacting Net Income for the Twelve Months Ended March 31, 2025 and 2024 Exhibit 2 Twelve Months Ended March 31, 2025 2024 $ Per DilutedShare $ Per DilutedShare GAAP net loss $ (19,470,000 ) $ (0.99 ) $ (49,244,000 ) $ (2.51 ) Non-cash items impacting net income Core and finished goods premium amortization $ 10,738,000 $ 0.55 $ 10,963,000 $ 0.56 Revaluation - cores on customers' shelves 2,805,000 0.14 5,353,000 0.27 Share-based compensation expenses 3,877,000 0.20 4,700,000 0.24 Foreign exchange impact of lease liabilities and forward contracts 15,892,000 0.81 (3,814,000 ) (0.19 ) Change in fair value of compound net derivative liability and loss on extinguishment of debt 60,000 0.00 (852,000 ) (0.04 ) Tax effect (a) (8,343,000 ) (0.42 ) (4,088,000 ) (0.21 ) Tax valuation allowance - - 38,009,000 1.94 Total non-cash items impacting net income $ 25,029,000 $ 1.27 $ 50,271,000 $ 2.56 Cash items impacting net income Supply chain disruptions and related costs (b) $ - $ - $ 7,472,000 $ 0.38 New product line start-up costs and transition expenses, and severance and other (c) 4,598,000 0.23 1,820,000 0.09 Tariff costs paid for products sold before price increases were effective 4,607,000 0.23 - - Tax effect (a) (2,301,000 ) (0.12 ) (2,323,000 ) (0.12 ) Total cash items impacting net income $ 6,904,000 $ 0.35 $ 6,969,000 $ 0.36 (a) Tax effect is calculated by applying an income tax rate of 25.0% to items listed above; this rate may differ from the period's actual income tax rate. (b) For the twelve months ended March 31, 2024, consists of $7,472,000 impacting gross profit. (c) For the twelve months ended March 31, 2025, consists of $1,298,000 impacting gross profit and $3,300,000 included in operating expenses. For the twelve months ended March 31, 2024, consists of $1,820,000 included in operating expenses. Items Impacting Gross Profit for the Three Months Ended March 31, 2025 and 2024 Exhibit 3 Three Months Ended March 31, 2025 2024 $ Gross Margin $ Gross Margin GAAP gross profit $ 38,495,000 19.9% $ 34,793,000 18.4% Non-cash items impacting gross profit Core and finished goods premium amortization $ 2,725,000 1.4% $ 2,761,000 1.5% Revaluation - cores on customers' shelves 489,000 0.3% 973,000 0.5% Total non-cash items impacting gross profit $ 3,214,000 1.7% $ 3,734,000 2.0% Cash items impacting gross profit Supply chain disruptions and related costs $ - - $ 734,000 0.4% Tariff costs paid for products sold before price increases were effective 4,607,000 2.4% - - Total cash items impacting gross profit $ 4,607,000 2.4% $ 734,000 0.4% Items Impacting Gross Profit for the Twelve Months Ended March 31, 2025 and 2024 Exhibit 4 Twelve Months Ended March 31, 2025 2024 $ Gross Margin $ Gross Margin GAAP gross profit $ 153,828,000 20.3% $ 132,551,000 18.5% Non-cash items impacting gross profit Core and finished goods premium amortization $ 10,738,000 1.4% $ 10,963,000 1.5% Revaluation - cores on customers' shelves 2,805,000 0.4% 5,353,000 0.7% Total non-cash items impacting gross profit $ 13,543,000 1.8% $ 16,316,000 2.3% Cash items impacting gross profit Supply chain disruptions and related costs $ - - $ 7,472,000 1.0% New product line start-up costs and transition expenses 1,298,000 0.2% - - Tariff costs paid for products sold before price increases were effective 4,607,000 0.6% - - Total cash items impacting gross profit $ 5,905,000 0.8% $ 7,472,000 1.0% Items Impacting EBITDA for the Three and Twelve Months Ended March 31, 2025 and 2024 Exhibit 5 Three Months Ended March 31, Twelve Months Ended March 31, 2025 2024 2025 2024 GAAP net (loss) income $ (722,000 ) $ 1,338,000 $ (19,470,000 ) $ (49,244,000 ) Interest expense, net 12,546,000 14,640,000 55,550,000 60,040,000 Income tax expense (benefit) 1,934,000 (1,050,000 ) 3,783,000 36,176,000 Depreciation and amortization 2,538,000 2,775,000 10,400,000 11,619,000 EBITDA $ 16,296,000 $ 17,703,000 $ 50,263,000 $ 58,591,000 Non-cash items impacting EBITDA Core and finished goods premium amortization $ 2,725,000 $ 2,761,000 $ 10,738,000 $ 10,963,000 Revaluation - cores on customers' shelves 489,000 973,000 2,805,000 5,353,000 Share-based compensation expenses 868,000 432,000 3,877,000 4,700,000 Foreign exchange impact of lease liabilities and forward contracts (3,074,000 ) (1,155,000 ) 15,892,000 (3,814,000 ) Change in fair value of compound net derivative liability and loss on extinguishment of debt 2,520,000 (2,710,000 ) 60,000 (852,000 ) Total non-cash items impacting EBITDA $ 3,528,000 $ 301,000 $ 33,372,000 $ 16,350,000 Cash items impacting EBITDA Supply chain disruptions and related costs $ - $ 734,000 $ - $ 7,472,000 New product line start-up costs and transition expenses, and severance and other 160,000 840,000 4,598,000 1,820,000 Tariff costs paid for products sold before price increases were effective 4,607,000 - 4,607,000 - Total cash items impacting EBITDA $ 4,767,000 $ 1,574,000 $ 9,205,000 $ 9,292,000 View source version on Contacts Gary S. MaierVice President, Corporate Communications & IR(310) 972-5124
Business Wire
09-06-2025
- Automotive
- Business Wire
Motorcar Parts of America Reports Fiscal Year Results
LOS ANGELES--(BUSINESS WIRE)--Motorcar Parts of America, Inc. (Nasdaq: MPAA) today reported strong results for its fiscal 2025 fourth quarter, with record net sales and gross profit, and strong cash flow generation for the year ended March 31, 2025. Key highlights for the fiscal year Net sales increased 5.5 percent to a record $757.4 million. Gross profit increased 16.1 percent to a record $153.8 million. Generated cash from operating activities of $45.5 million and reduced net bank debt by $32.6 million to $81.4 million. Repurchased 542,134 shares for $4.8 million. Fiscal 2025 Fourth Quarter Results Net sales for the fiscal 2025 fourth quarter increased 1.9 percent to $193.1 million from $189.5 million in the prior year. Gross profit for the fiscal 2025 fourth quarter increased 10.6 percent to a fourth quarter record $38.5 million from $34.8 million a year earlier. Gross margin for the fiscal 2025 fourth quarter was 19.9 percent compared with 18.4 percent a year earlier. Gross margin for the fiscal 2025 fourth quarter was impacted by $3.2 million, or 1.7 percent, of non-cash expenses, and $4.6 million, or 2.4 percent, for certain tariffs costs paid for products sold before price increases were effective, as detailed in Exhibit 3. Interest expense for the fiscal fourth quarter decreased by $2.1 million to $12.5 million from $14.6 million a year ago, impacted by lower average outstanding balances under the company's credit facility and lower interest rates. Net loss for the fiscal 2025 fourth quarter was $722,000, or $0.04 per share, reflecting the impact of $4.6 million, or $0.24 per share pre-tax, for certain tariffs costs paid for products sold before price increases were effective, as mentioned above. Net loss was also impacted by certain non-cash items of $2.6 million, or $0.14 per share, as detailed in Exhibit 1. Net income for the prior year was $1.3 million, including the impact of non-cash expenses and cash expenses as detailed in Exhibit 1. 'We remain focused on continuing to execute and capitalize on our leadership position within the non-discretionary automotive aftermarket business, following a solid fiscal year,' said Selwyn Joffe, chairman, president, and chief executive officer. He noted that the company is working with its suppliers and customers to address the current geopolitical environment and related challenges -- specifically tariffs and pricing. The company's solid financial position and cash flow generation support its competitive position and anticipated future growth. Joffe noted that over the last several years, the company proactively has focused on significantly reducing its reliance on Chinese suppliers, which today represents less than 25 percent, and has an established footprint in North America that could be utilized to further reduce this reliance going forward. Joffe highlighted that the company generated cash of approximately $45.5 million from operating activities during fiscal 2025, reduced net bank debt by $32.6 million for the fiscal year to $81.4 million from $114.0 million and also utilized $4.8 million for share repurchases. Twelve-Month Results Net sales for fiscal 2025 increased 5.5 percent to a record $757.4 million from $717.7 million a year ago. Gross profit for fiscal 2025 increased 16.1 percent to a record $153.8 million from $132.6 million a year earlier. Gross margin for fiscal 2025 was 20.3 percent compared with 18.5 percent a year earlier. Gross margin for fiscal 2025 was impacted by $13.5 million, or 1.8 percent, of non-cash expenses, and $5.9 million, or 0.8 percent, of one-time cash expenses, as detailed in Exhibit 4. Interest expense decreased by $4.5 million for fiscal 2025 to $55.6 million from $60.0 million a year ago, impacted by lower average outstanding balances under the company's credit facility and lower interest rates. Net loss for fiscal 2025 was $19.5 million, or $0.99 per share, including the impact of non-cash expenses of $25.0 million, or $1.27 per share, and one-time cash expenses of $6.9 million, or $0.35 per share, as detailed in Exhibit 2. Net loss for the prior fiscal year was $49.2 million, or $2.51 per share, including the impact of non-cash expenses of $50.3 million, or $2.56 per share, and cash expenses of $7.0 million, or $0.36 per share, as detailed in Exhibit 2. Share Repurchase During fiscal 2025 fourth quarter, the company repurchased 274,004 shares for $2.7 million at an average share price of $9.98, and for the full fiscal year, the company repurchased 542,134 shares for $4.8 million at an average share price of $8.91 under its current authorization program, supported by solid cash generation from operating activities. The company anticipates further opportunities to build shareholder value through enhanced profitability and strong cash generation. Fiscal 2026 Guidance Motorcar Parts of America expects net sales for the fiscal year ending March 31, 2026 to be between $780 million to $800 million, representing between 3.0 percent and 5.6 percent year-over-year growth. Operating income is expected to be between $86 million and $91 million, representing between 4.3 percent and 10.4 percent year-over-year growth. The company estimates depreciation and amortization will be approximately $11 million. These estimates do not include certain non-cash items and one-time expenses and exclude the impact of tariffs recently enacted due to the uncertainty and continuing changes. Use of Non-GAAP Measure This press release includes the following non-GAAP measure – EBITDA, which is not a measure of financial performance under GAAP and should not be considered as an alternative to net income as a measure of financial performance. The company believes this non-GAAP measure, when considered together with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to the company's results of operations. However, this non-GAAP measure has significant limitations in that it does not reflect all the costs and other items associated with the operation of the company's business as determined in accordance with GAAP. In addition, the company's non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, measures of financial performance in accordance with GAAP. For a definition and reconciliation of EBITDA to net income, its corresponding GAAP measure, see the financial tables included in this press release. Also, refer to our Form 8-K to which this release is attached, and other filings we make with the SEC, for further information regarding this measure. Earnings Conference Call and Webcast Selwyn Joffe, chairman, president and chief executive officer, and David Lee, chief financial officer, will host an investor conference call today at 10:00 a.m. Pacific time to discuss the company's financial results and operations. The call will be open to all interested investors either through a live audio webcast at or live by calling (888) 440-5584 (domestic) or (646) 960-0457 (international). For those who are not available to listen to the live broadcast, the call will be archived on Motorcar Parts of America's website A telephone playback of the conference call will also be available from approximately 1:00 p.m. Pacific time on June 9, 2025 through 8:59 p.m. Pacific time on June 16, 2025 by calling (800) 770-2030 (domestic) or (609) 800-9909 (toll) and using access code: 1545314. About Motorcar Parts of America, Inc. Motorcar Parts of America, Inc. is a remanufacturer, manufacturer, and distributor of automotive aftermarket parts -- including alternators, starters, wheel bearings and hub assemblies, brake calipers, brake pads, brake rotors, brake master cylinders, brake power boosters, turbochargers, and diagnostic testing equipment utilized in imported and domestic passenger vehicles, light trucks, and heavy-duty applications. Its products are sold to automotive retail outlets and the professional repair market throughout the United States, Canada, and Mexico, with facilities located in California, New York, Mexico, Malaysia, China and India, and administrative offices located in California, Tennessee, Mexico, Singapore, Malaysia, and Canada. In addition, the company's electrical vehicle subsidiary designs and manufactures testing solutions for performance, endurance, and production of multiple components in the electric power train – providing simulation, emulation, and production applications for the electrification of both automotive and aerospace industries, including electric vehicle charging systems. Additional information is available at The Private Securities Litigation Reform Act of 1995 provides a 'safe harbor' for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the company's current expectations and beliefs concerning future developments and their potential effects on the company. 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. Reference is also made to the Risk Factors set forth in the company's Form 10-K Annual Report filed with the Securities and Exchange Commission (SEC) in June 2025 and in its Forms 10-Q filed with the SEC for additional risks and uncertainties facing the company. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES Consolidated Balance Sheets March 31, 2025 March 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 9,429,000 $ 13,974,000 Short-term investments 1,881,000 1,837,000 Accounts receivable — net 91,064,000 96,296,000 Inventory — net 341,209,000 377,040,000 Inventory unreturned 18,460,000 20,288,000 Contract assets 29,606,000 27,139,000 Income tax receivable 4,208,000 5,683,000 Prepaid expenses and other current assets 15,614,000 18,202,000 Total current assets 511,471,000 560,459,000 Plant and equipment — net 31,990,000 38,338,000 Operating lease assets 66,603,000 83,973,000 Deferred income taxes 4,569,000 2,976,000 Long-term contract assets 336,268,000 320,282,000 Goodwill 3,205,000 3,205,000 Intangible assets — net 552,000 1,069,000 Other assets 2,978,000 1,700,000 TOTAL ASSETS $ 957,636,000 $ 1,012,002,000 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 141,906,000 $ 154,977,000 Accrued liabilities 30,211,000 30,205,000 Customer finished goods returns accrual 34,411,000 38,312,000 Contract liabilities 38,158,000 37,591,000 Revolving loan 90,787,000 128,000,000 Other current liabilities 5,570,000 7,021,000 Operating lease liabilities 9,982,000 8,319,000 Total current liabilities 351,025,000 404,425,000 Convertible notes, related party 35,207,000 30,776,000 Contract liabilities, less current portion 241,404,000 212,068,000 Deferred income taxes 362,000 511,000 Operating lease liabilities, less current portion 65,308,000 72,240,000 Other liabilities 6,631,000 6,872,000 Total liabilities 699,937,000 726,892,000 Commitments and contingencies Shareholders' equity: Preferred stock; par value $.01 per share, 5,000,000 shares authorized; none issued - - Series A junior participating preferred stock; par value $.01 per share, 20,000 shares authorized; none issued - - Common stock; par value $.01 per share, 50,000,000 shares authorized; 19,435,706 and 19,662,380 shares issued and outstanding at March 31, 2025 and 2024, respectively 194,000 197,000 Additional paid-in capital 234,413,000 236,255,000 Retained earnings 20,033,000 39,503,000 Accumulated other comprehensive income 3,059,000 9,155,000 Total shareholders' equity 257,699,000 285,110,000 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 957,636,000 $ Expand Additional Information and Non-GAAP Financial Measures To supplement the consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the company has included the following additional information and non-GAAP financial measures for the three and twelve months ended March 31, 2025 and 2024. Among other things, the company uses such additional information and non-GAAP adjusted financial measures in addition to and together with corresponding GAAP measures to help analyze the performance of its business. The company believes this information helps provide a more complete understanding of the company's results of operations and the factors and trends affecting the company's business. However, this information should be considered as a supplement to, and not as a substitute for, or superior to, information contained in the company's financial statements prepared in accordance with GAAP. In addition, the company's non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. The company defines EBITDA as earnings before interest, taxes, depreciation, and amortization. A reconciliation of EBITDA to net income is provided below along with information regarding such items. Items Impacting Net Income for the Three Months Ended March 31, 2025 and 2024 Exhibit 1 Expand Three Months Ended March 31, 2025 2024 $ Per Diluted Share $ Per Diluted Share GAAP net (loss) income $ (722,000 ) $ (0.04 ) $ 1,338,000 $ (0.03 ) Non-cash items impacting net income Core and finished goods premium amortization $ 2,725,000 $ 0.14 $ 2,761,000 $ 0.13 Revaluation - cores on customers' shelves 489,000 0.03 973,000 0.04 Share-based compensation expenses 868,000 0.04 432,000 0.02 Foreign exchange impact of lease liabilities and forward contracts (3,074,000 ) (0.16 ) (1,155,000 ) (0.05 ) Change in fair value of compound net derivative liability 2,520,000 0.13 (2,710,000 ) (0.12 ) Tax effect (a) (882,000 ) (0.05 ) (75,000 ) (0.00 ) Tax valuation allowance - - 548,000 0.02 Total non-cash items impacting net income $ 2,646,000 $ 0.14 $ 774,000 $ 0.04 Cash items impacting net income Supply chain disruptions and related costs (b) $ - $ - $ 734,000 $ 0.03 New product line start-up costs and transition expenses, and severance and other (c) 160,000 0.01 840,000 0.04 Tariff costs paid for products sold before price increases were effective 4,607,000 0.24 - - Tax effect (a) (1,192,000 ) (0.06 ) (394,000 ) (0.02 ) Total cash items impacting net income $ 3,575,000 $ 0.18 $ 1,180,000 $ 0.05 (a) Tax effect is calculated by applying an income tax rate of 25.0% to items listed above; this rate may differ from the period's actual income tax rate. (b) For the three months ended March 31, 2024, consists of $734,000 impacting gross profit. (c) For the three months ended March 31, 2025, consists of $160,000 included in operating expenses. For the three months ended March 31, 2024, consists of $840,000 included in operating expenses. Expand Items Impacting Net Income for the Twelve Months Ended March 31, 2025 and 2024 Exhibit 2 Expand Twelve Months Ended March 31, 2025 2024 $ Per Diluted Share $ Per Diluted Share GAAP net loss $ (19,470,000 ) $ (0.99 ) $ (49,244,000 ) $ (2.51 ) Non-cash items impacting net income Core and finished goods premium amortization $ 10,738,000 $ 0.55 $ 10,963,000 $ 0.56 Revaluation - cores on customers' shelves 2,805,000 0.14 5,353,000 0.27 Share-based compensation expenses 3,877,000 0.20 4,700,000 0.24 Foreign exchange impact of lease liabilities and forward contracts 15,892,000 0.81 (3,814,000 ) (0.19 ) Change in fair value of compound net derivative liability and loss on extinguishment of debt 60,000 0.00 (852,000 ) (0.04 ) Tax effect (a) (8,343,000 ) (0.42 ) (4,088,000 ) (0.21 ) Tax valuation allowance - - 38,009,000 1.94 Total non-cash items impacting net income $ 25,029,000 $ 1.27 $ 50,271,000 $ 2.56 Cash items impacting net income Supply chain disruptions and related costs (b) $ - $ - $ 7,472,000 $ 0.38 New product line start-up costs and transition expenses, and severance and other (c) 4,598,000 0.23 1,820,000 0.09 Tariff costs paid for products sold before price increases were effective 4,607,000 0.23 - - Tax effect (a) (2,301,000 ) (0.12 ) (2,323,000 ) (0.12 ) Total cash items impacting net income $ 6,904,000 $ 0.35 $ 6,969,000 $ 0.36 (a) Tax effect is calculated by applying an income tax rate of 25.0% to items listed above; this rate may differ from the period's actual income tax rate. (b) For the twelve months ended March 31, 2024, consists of $7,472,000 impacting gross profit. (c) For the twelve months ended March 31, 2025, consists of $1,298,000 impacting gross profit and $3,300,000 included in operating expenses. For the twelve months ended March 31, 2024, consists of $1,820,000 included in operating expenses. Expand Items Impacting Gross Profit for the Three Months Ended March 31, 2025 and 2024 Exhibit 3 Expand Items Impacting Gross Profit for the Twelve Months Ended March 31, 2025 and 2024 Exhibit 4 Expand Items Impacting EBITDA for the Three and Twelve Months Ended March 31, 2025 and 2024 Exhibit 5 Expand Three Months Ended March 31, Twelve Months Ended March 31, 2025 2024 2025 2024 GAAP net (loss) income $ (722,000 ) $ 1,338,000 $ (19,470,000 ) $ (49,244,000 ) Interest expense, net 12,546,000 14,640,000 55,550,000 60,040,000 Income tax expense (benefit) 1,934,000 (1,050,000 ) 3,783,000 36,176,000 Depreciation and amortization 2,538,000 2,775,000 10,400,000 11,619,000 EBITDA $ 16,296,000 $ 17,703,000 $ 50,263,000 $ 58,591,000 Non-cash items impacting EBITDA Core and finished goods premium amortization $ 2,725,000 $ 2,761,000 $ 10,738,000 $ 10,963,000 Revaluation - cores on customers' shelves 489,000 973,000 2,805,000 5,353,000 Share-based compensation expenses 868,000 432,000 3,877,000 4,700,000 Foreign exchange impact of lease liabilities and forward contracts (3,074,000 ) (1,155,000 ) 15,892,000 (3,814,000 ) Change in fair value of compound net derivative liability and loss on extinguishment of debt 2,520,000 (2,710,000 ) 60,000 (852,000 ) Total non-cash items impacting EBITDA $ 3,528,000 $ 301,000 $ 33,372,000 $ 16,350,000 Cash items impacting EBITDA Supply chain disruptions and related costs $ - $ 734,000 $ - $ 7,472,000 New product line start-up costs and transition expenses, and severance and other 160,000 840,000 4,598,000 1,820,000 Tariff costs paid for products sold before price increases were effective 4,607,000 - 4,607,000 - Total cash items impacting EBITDA $ 4,767,000 $ 1,574,000 $ 9,205,000 $ 9,292,000 Expand
Edmonton Journal
06-05-2025
- Health
- Edmonton Journal
Braid: Smith's government mutes vaccine skepticism in face of a measles epidemic
Article content Then, a welcome surprise. Health Minister Adriana LaGrange endorsed Joffe's column and his views on the virus and vaccination. Now there's a campaign to ramp up vaccination as well as aggressively promote the shots across all media. But it took a looming crisis to force the UCP into action. The problem they face is one they helped cause, with their post-COVID anger and questioning of medical science. It's generally believed that 95 per cent of a population must be vaccinated to eliminate the spread of measles. By 2023, only about 69 per cent of Alberta children were vaccinated by age two. Calgary's average was 75 per cent, far below the ideal. And in some northern areas, the vaccination rate was as low as 10 per cent. No area in Alberta met the 95 per cent target. AHS, bless its troubled heart, has never stopped promoting or supplying vaccines. But the message from Premier Danielle Smith and her acolytes has been that the vaccine deniers have a point. Smith has never said people who want vaccinations should be refused a shot. Neither did she tell Albertans they should be vaccinated. But on Monday, the premier repeated the new slogan, 'Don't get measles. Get vaccinated.' A premier's words mean something to a great many Albertans. They heard her vaccination skepticism. Hopefully, they'll now catch her overdue enthusiasm.
CBC
03-05-2025
- Health
- CBC
Need for permanent chief medical officer of health 'dire,' says Alberta Medical Association
Alberta's health minister says the search for a permanent chief medical medical officer of health is in the early stages, prompting concerns about health leadership as the province continues to battle its worst measles outbreak in nearly three decades. The total number of confirmed cases since the outbreaks began in March surged to 210 on Friday. That's the highest case count since 1997, when 242 cases were reported. The escalating case numbers come at a time when the province is without a permanent top doctor. The provincial government appointed an interim chief medical officer of health after Dr. Mark Joffe opted not to renew his contract in mid-April. He had been in the role since November 2022. Joffe left as calls grew for him to take to the podium and speak directly to Albertans about the measles outbreaks. At the time, doctors raised concerns about whether he was allowed to speak publicly on the matter. The province has not yet found a permanent replacement. "I think the need to get someone who has expertise in the role is dire," said Dr. Shelley Duggan, president of the Alberta Medical Association. "It could be tricky. But I think it's important. There's lots of people trained in public health. We need to get somebody in Alberta. And we need to let them develop a campaign and work with their team to get the messaging out." When asked by CBC News about the search for a replacement, Health Minister Adriana LaGrange did not say how much interest there is in the job. Nor did she say how many candidates have been interviewed. "We're at the initial stages of the search," she said at a news conference on Thursday. "We were quite hopeful that Dr. Joffe would have extended his contract. Since that hasn't happened, we are just at the initial stages of the search. And I'll keep you posted as we go along this road." When it comes to concerns about how the province will handle its surging measles cases without a permanent CMOH in place, she said she's confident in the work of the public health teams. "It's the local [medical officers of health] that are in the communities, that are on the ground working with those communities, that are most affected. They report up to the CMOH. So there's obviously a lot of interaction that happens." LaGrange said measles immunizations have increased this year compared to last year due to the work of those teams. When asked if she ever refused to greenlight any requests Joffe made about how to handle the measles outbreak, LaGrange did not answer directly, noting instead that she had many conversations with him about how to reach impacted communities. "There are hot spots, but we do not have a provincial outbreak of measles," she said when pressed further. Recruitment in question "Recruitment and retention of qualified public health leaders and health leaders, in general in this province, has become increasingly difficult," said Lorian Hardcastle, associate professor in the faculty of law and the Cumming School of Medicine at the University of Calgary. She said concerns about politicization of public health could be a deterrent. "And given the revolving door of public health officials — of [Alberta Health Services] CEOs, of the AHS board — I think it's going to be difficult to recruit and retain qualified people to these kinds of roles in this province." It's problematic, she said, to be facing measles outbreaks with people moving in and out of the job. "You don't want to have those transitions in the context of a public health crisis. You want consistent, clear messaging from the same trusted authority. And I don't think they're positioned to do that." The Alberta NDP said it, too, is skeptical about Alberta's ability to recruit a new top doctor. "[Premier Danielle Smith] ran a leadership campaign showing disrespect to science, to public health, to experts, and it continues. And now she's got control over that office and it's caused a lot of chaos," said NDP health critic Sarah Hoffman, adding she's not surprised a permanent replacement is not in place. "It is concerning because there should be separation between those who are in charge of gathering evidence and those who are in controlling political messaging." Changes coming about through the UCP government's health system overall could be a further deterrent, according to Hoffman. Bill 55, the Health Statutes Amendment Act, was tabled on Thursday. If passed, zone medical officers of health who are now part of Alberta Health Services will move to Alberta Health. The plan has sparked concern about the consolidation of decision-making power — for matters relating to the health of Albertans — within the ministry. "It is really important that we have experts that are entrusted to give their very best advice and direction. And when you're within the department, you don't have that same independence," said Hoffman.
