- Record Sales and Gross Profit with Strong Cash Flow Generation -
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 www.motorcarparts.com 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 www.motorcarparts.com. 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 www.motorcarparts.com.
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 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. | ||||||||||||||||
Items Impacting Net Income for the Twelve Months Ended March 31, 2025 and 2024 |
Exhibit 2 |
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. | ||||||||||||||||
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 businesswire.com: https://www.businesswire.com/news/home/20250609118643/en/
Gary S. Maier
Vice President, Corporate Communications & IR
(310) 972-5124