NASDAQ$MPAA

Motorcar Parts of America Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Motorcar Parts of America reported Q4 2020 earnings with record sales and positive cash flow, despite challenges from the global pandemic and currency devaluation.

Motorcar Parts of America reported a 16.8% increase in net sales for the fourth quarter of fiscal year 2020, reaching a record $150.7 million. However, the company experienced a net loss of $8.2 million, or $0.43 per share, impacted by significant items including the devaluation of the Mexican Peso and transition expenses. The company generated cash flow from operations of $18.8 million for the fiscal year and gross margin improved.

  • Net sales for the quarter increased by 16.8% to a record $150.7 million.
  • Net loss for the quarter was $8.2 million, or $0.43 per share, impacted by $25.8 million in pre-tax items.
  • Gross profit for the quarter was $36.6 million, compared to $26.0 million in the prior year.
  • The company's facilities expansion in Mexico and brake caliper launch are nearing completion, with transition costs expected to be substantially eliminated by the end of the fiscal year.

Headline financials

Total Revenue

$151M

Previous: $133M+13.6%
EPS (adj)

$0.59

Previous: $0.63-6.3%
Capital Expenditures

$3.31M

Previous: $2.6M+27.3%
Free Cash Flow

$19.9M

Previous: -$22.6M+188.0%
Net Income

-$8.19M

Previous: -$2.77M-196.3%
Operating Income

-$5.49M

Previous: $5.49M-200.0%
Gross Profit

$36.6M

Previous: $26M+41.0%
Cash & Equivalents

$49.6M

Previous: $9.91M+400.6%
Total Assets

$777M

Previous: $632M+22.9%
Stock-Based Comp

$1.03M

Previous: $2.41M-57.4%

Revenue & EPS history

MPA · Revenue · Quarterly

$151M

Q4 2020+13.6%vs Q4 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Forward guidance

After record sales and a strong end to fiscal 2020, April brought a sharp decrease in demand, as home sheltering took effect across the country. The company implemented a variety of safety and cost-savings initiatives to proactively address the crisis, while at the same time remained prepared for an anticipated resumption of demand. Industry reports indicate that sales of hard parts have increased substantially over the past 45 days, indicating that we may have experienced the low point.

Tailwinds

  • Company’s sales improved significantly in May
  • June is trending nicely
  • Industry has proven to be resilient
  • Company remains committed to its strategic plans for growth and profitability
  • Company is well-positioned for growth in the aftermarket industry

Headwinds

  • April brought a sharp decrease in demand
  • Home sheltering took effect across the country
  • Past few months have been a challenging period for the company
  • Company believes it is prudent at this time to not provide annual sales and gross margin guidance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+2.2%

Avg return

Earnings day

+2.9%

Avg return

5 days after

+2.3%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+34.8%

Q4 2026

Best reaction

-26.4%

Q2 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+34.8%+42.1%
Q3 2026-17.5%-23.6%-20.5%
Q2 2026-26.4%-24.7%-21.9%
Q1 2026+22.6%+21.8%+29.9%
Q4 2025-0.7%+4.3%-2.0%
Q3 2025+10.6%+61.7%+86.6%
Q2 2025+15.9%+18.8%+41.8%
Q1 2025+0.3%+2.5%-2.7%
Q4 2024-3.5%+7.3%+22.3%
Q3 2024+3.8%-1.5%-11.0%
Q2 2024+4.0%+7.1%+14.6%
Q1 2024-8.2%-6.2%-15.4%
Q4 2023+15.6%+26.8%+56.9%
Q3 2023-10.2%-10.4%-32.5%
Q2 2023-12.9%-23.6%-49.9%
Q1 2023+0.4%+9.6%-1.9%
Q4 2022-6.3%-16.0%-12.6%
Q3 2022+1.3%-0.7%+3.3%
Q2 2022-1.5%-0.8%-1.4%
Q1 2022-1.5%-2.0%-16.0%
Q4 2021+3.6%-4.4%-0.4%
Q3 2021-16.3%-19.8%-7.1%
Q2 2021+22.9%+13.9%+48.6%
Q1 2021-3.3%-1.0%-8.4%
Q4 2020-1.1%-0.3%+7.7%
Q3 2020-15.9%-12.5%-25.8%
Q2 2020+8.0%+2.2%+10.5%
Q1 2020-6.0%-5.5%-14.6%
Q4 2019+11.9%+5.3%-1.1%
Q3 2019-2.6%+7.5%+1.9%
Q2 2019+6.1%+4.0%+4.3%
Q1 2019+9.7%+12.4%+13.8%
Q4 2018-7.1%-4.1%-6.3%
Q3 2018-12.5%+0.3%-11.4%
Q2 2018-2.7%-2.6%-6.6%
Q1 2018+4.9%+5.6%+1.4%
Q4 2017-6.2%-4.4%-1.5%
Q3 2017-0.3%+1.4%+2.0%
Q2 2017+12.9%+11.6%+21.2%
Q1 2017+6.3%+4.9%+0.2%
Q4 2016+10.0%+13.9%-2.2%
Q3 2016+2.9%
Q2 2016+18.4%
Q1 2016+7.8%
Q4 2015+3.7%
Q3 2015-0.7%
Q2 2015+16.9%
Q1 2015+12.4%
Q4 2014+4.7%
Q3 2014+15.2%
Q2 2014+31.9%
Q1 2014+11.1%
Q4 2013+7.0%
Q3 2013-16.2%
Q2 2013+2.9%
Q1 2013+13.5%
Q4 2010-4.5%
Q4 2012-4.5%
Q3 2011-14.7%
Q3 2012-14.7%
Q2 2012+10.3%
Q4 2011-0.5%
Q2 2011-0.5%
Q1 2011-0.5%
Q1 2012-0.5%

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