- Record Gross Profits with Continued Strong Cash Flow, Debt Reduction and Liquidity -
Motorcar Parts of America, Inc. (Nasdaq: MPAA) today reported results for its fiscal 2026 second quarter -- reflecting record sales and record gross profit for a fiscal second quarter with strong cash flow generation.
Key highlights for the quarter:
- Net sales increased 6.4 percent to $221.5 million.
- Gross profit increased 3.5 percent to a second quarter record of $42.7 million.
- Generated $21.9 million of cash from operating activities and reduced net bank debt by $17.7 million to $56.7 million.
- Repurchased 90,114 shares for $1.4 million at an average price of $15.41.
Fiscal 2026 Second Quarter Results
Net sales for the fiscal 2026 second quarter increased $13.3 million, or 6.4 percent, to $221.5 million from $208.2 million in the prior year. Net sales for the quarter reflect $14.8 million of core revenue in connection with the realignment of inventory at certain customer distribution centers offset by the timing of purchases by one of our largest customers.
Gross profit was a second quarter record of $42.7 million compared with $41.3 million a year earlier. Gross margin for the same period was 19.3 percent compared with 19.8 percent a year earlier -- impacted by non-cash expenses of $3.6 million, or 3.0 percent, and one-time cash expenses of $698,000, or 0.3 percent, as detailed in Exhibit 2.
Operating income for the fiscal 2026 second quarter increased 30.8 percent to $16.4 million from $12.5 million in the prior year.
Interest expense for the fiscal 2026 second quarter decreased by $1.5 million to $12.7 million from $14.2 million a year ago, reflecting lower average outstanding balances under the company’s credit facility and lower interest rates compared with a year ago.
Net loss for the fiscal 2026 second quarter was $2.1 million, or $0.11 per share, compared with a net loss of $3.0 million, or $0.15 per share, for the prior year. Net loss was impacted by non-cash expenses of $4.8 million, or $0.25 per share, and one-time cash expenses of $523,000, or $0.03 per share, as detailed in Exhibit 1.
“Results for the fiscal second quarter reflect continued success at leveraging the company’s prominent position within the non-discretionary automotive aftermarket and North American footprint,” said Selwyn Joffe, chairman, president, and chief executive officer.
He noted favorable industry dynamics remain catalysts for automotive aftermarket growth -- which include an increasing number of vehicles on the road and an aging car parc climbing to a current 12.8 years in the United States.
“The company’s solid financial position, cash flow generation and continued net debt reduction should continue to enhance our competitive position and support opportunities in a rapidly changing industry environment,” Joffe said.
Joffe highlighted that the company generated cash of approximately $21.9 million from operating activities during the fiscal 2026 second quarter and reduced net bank debt by $17.7 million to $56.7 million from $74.4 million. He also highlighted that the company generated cash of approximately $31.9 million during the six-month period compared with $2.0 million for the prior year and reduced net bank debt by $24.6 million to $56.7 million from $81.4 million.
Six-Month Results
Net sales for the fiscal 2026 six-month period increased 31.8 million, or 8.4 percent, to a record $409.8 million from $378.1 million. Net sales for the six-month period reflect $14.8 million of core revenue in connection with the realignment of inventory at certain customer distribution centers offset by the timing of purchases by one of our largest customers.
Gross profit for the fiscal 2026 six-month period increased to a record $76.6 million from $70.5 million a year earlier. Gross margin for the fiscal 2026 six-month period was 18.7 percent compared with 18.6 percent a year earlier. Gross margin for the fiscal 2026 six-month period was impacted by non-cash expenses of $7.4 million, or 2.5 percent, and one-time cash expenses of $2.1 million, or 0.5 percent, as detailed in Exhibit 4.
Interest expense decreased by $3.1 million for the six months to $25.5 million from $28.6 million a year ago, reflecting lower average outstanding balances under the company’s credit facility and lower interest rates compared with a year ago.
Net income for the fiscal 2026 six-month period was $893,000, or $0.04 per diluted share, impacted by non-cash expenses of $3.5 million, or $0.17 per diluted share, and one-time cash expenses of $1.6 million, or $0.08 per diluted share, compared with a net loss of $21.0 million, or $1.07 per share, a year ago, impacted by various items detailed in Exhibit 2.
Share Repurchase
During the fiscal 2026 second quarter, the company repurchased 90,114 shares for $1.4 million at an average share price of $15.41 under its current authorization program, supported by solid cash generation from operating activities. For the six-month period, the company repurchased 287,910 shares for $3.4 million at an average share price of $11.65.
The company anticipates further opportunities to build shareholder value through enhanced profitability and strong cash generation.
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 November 10, 2025 through 8:59 p.m. Pacific time on November 17, 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 |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
||||||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||||||
|
September 30, |
September 30, |
||||||||||||||
|
2025 |
2024 |
2025 |
2024 |
||||||||||||
| Net sales | $ |
221,470,000 |
|
$ |
208,186,000 |
|
$ |
409,834,000 |
|
$ |
378,073,000 |
|
||||
| Cost of goods sold |
|
178,743,000 |
|
|
166,909,000 |
|
|
333,190,000 |
|
|
307,622,000 |
|
||||
| Gross profit |
|
42,727,000 |
|
|
41,277,000 |
|
|
76,644,000 |
|
|
70,451,000 |
|
||||
| Operating expenses: | ||||||||||||||||
| General and administrative |
|
17,086,000 |
|
|
15,052,000 |
|
|
29,766,000 |
|
|
31,722,000 |
|
||||
| Sales and marketing |
|
6,811,000 |
|
|
5,834,000 |
|
|
13,021,000 |
|
|
11,283,000 |
|
||||
| Research and development |
|
3,928,000 |
|
|
2,443,000 |
|
|
7,234,000 |
|
|
4,876,000 |
|
||||
| Foreign exchange impact of lease liabilities and forward contracts |
|
(1,469,000 |
) |
|
5,428,000 |
|
|
(9,817,000 |
) |
|
16,506,000 |
|
||||
| Total operating expenses |
|
26,356,000 |
|
|
28,757,000 |
|
|
40,204,000 |
|
|
64,387,000 |
|
||||
| Operating income |
|
16,371,000 |
|
|
12,520,000 |
|
|
36,440,000 |
|
|
6,064,000 |
|
||||
| Other expenses: | ||||||||||||||||
| Interest expense, net |
|
12,699,000 |
|
|
14,182,000 |
|
|
25,511,000 |
|
|
28,569,000 |
|
||||
| Change in fair value of compound net derivative liability |
|
2,260,000 |
|
|
380,000 |
|
|
4,050,000 |
|
|
(2,200,000 |
) |
||||
| Total other expenses |
|
14,959,000 |
|
|
14,562,000 |
|
|
29,561,000 |
|
|
26,369,000 |
|
||||
| Income (loss) before income tax expense |
|
1,412,000 |
|
|
(2,042,000 |
) |
|
6,879,000 |
|
|
(20,305,000 |
) |
||||
| Income tax expense |
|
3,561,000 |
|
|
912,000 |
|
|
5,986,000 |
|
|
734,000 |
|
||||
| Net (loss) income | $ |
(2,149,000 |
) |
$ |
(2,954,000 |
) |
$ |
893,000 |
|
$ |
(21,039,000 |
) |
||||
| Basic net (loss) income per share | $ |
(0.11 |
) |
$ |
(0.15 |
) |
$ |
0.05 |
|
$ |
(1.07 |
) |
||||
| Diluted net (loss) income per share | $ |
(0.11 |
) |
$ |
(0.15 |
) |
$ |
0.04 |
|
$ |
(1.07 |
) |
||||
| Weighted average number of shares outstanding: | ||||||||||||||||
| Basic |
|
19,366,633 |
|
|
19,760,028 |
|
|
19,367,840 |
|
|
19,717,517 |
|
||||
| Diluted |
|
19,366,633 |
|
|
19,760,028 |
|
|
20,194,954 |
|
|
19,717,517 |
|
||||
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES |
||||||||
Consolidated Balance Sheets |
||||||||
|
|
|
|
|
||||
|
|
September 30, 2025 |
|
March 31, 2025 |
||||
ASSETS |
|
(Unaudited) |
|
|
||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
15,710,000 |
$ |
9,429,000 |
||||
| Short-term investments |
|
2,025,000 |
|
|
1,881,000 |
|
||
| Accounts receivable — net |
|
104,010,000 |
|
|
91,064,000 |
|
||
| Inventory — net |
|
372,590,000 |
|
|
359,669,000 |
|
||
| Contract assets |
|
30,306,000 |
|
|
29,606,000 |
|
||
| Prepaid expenses and other current assets |
|
22,091,000 |
|
|
19,822,000 |
|
||
| Total current assets |
|
546,732,000 |
|
|
511,471,000 |
|
||
| Plant and equipment — net |
|
32,292,000 |
|
|
31,990,000 |
|
||
| Operating lease assets |
|
67,208,000 |
|
|
66,603,000 |
|
||
| Long-term deferred income taxes |
|
5,897,000 |
|
|
4,569,000 |
|
||
| Long-term contract assets |
|
331,344,000 |
|
|
336,268,000 |
|
||
| Goodwill and intangible assets — net |
|
3,603,000 |
|
|
3,757,000 |
|
||
| Other assets |
|
2,892,000 |
|
|
2,978,000 |
|
||
| TOTAL ASSETS | $ |
989,968,000 |
|
$ |
957,636,000 |
|
||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ |
196,245,000 |
|
$ |
172,117,000 |
|
||
| Customer finished goods returns accrual |
|
38,058,000 |
|
|
34,411,000 |
|
||
| Contract liabilities |
|
52,588,000 |
|
|
38,158,000 |
|
||
| Revolving loan |
|
72,419,000 |
|
|
90,787,000 |
|
||
| Other current liabilities |
|
5,709,000 |
|
|
5,570,000 |
|
||
| Operating lease liabilities |
|
9,763,000 |
|
|
9,982,000 |
|
||
| Total current liabilities |
|
374,782,000 |
|
|
351,025,000 |
|
||
| Convertible notes, related party |
|
43,444,000 |
|
|
35,207,000 |
|
||
| Long-term contract liabilities |
|
243,582,000 |
|
|
241,404,000 |
|
||
| Long-term deferred income taxes |
|
640,000 |
|
|
362,000 |
|
||
| Long-term operating lease liabilities |
|
61,031,000 |
|
|
65,308,000 |
|
||
| Other liabilities |
|
7,953,000 |
|
|
6,631,000 |
|
||
| Total liabilities |
|
731,432,000 |
|
|
699,937,000 |
|
||
| 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; 19,547,144 and 19,435,706 shares issued and outstanding at September 30, 2025 and March 31, 2025, respectively |
|
195,000 |
|
|
194,000 |
|
||
| Additional paid-in capital |
|
232,182,000 |
|
|
234,413,000 |
|
||
| Retained earnings |
|
20,926,000 |
|
|
20,033,000 |
|
||
| Accumulated other comprehensive income |
|
5,233,000 |
|
|
3,059,000 |
|
||
| Total shareholders' equity |
|
258,536,000 |
|
|
257,699,000 |
|
||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ |
989,968,000 |
|
$ |
957,636,000 |
|
||
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 six months ended September 30, 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.
Exhibit 1 |
||||||||||||||||
Items Impacting Net Income for the Three Months Ended September 30, 2025 and 2024 |
||||||||||||||||
Three Months Ended September 30, |
||||||||||||||||
2025 |
|
2024 |
||||||||||||||
$ |
|
Per Diluted
|
|
$ |
|
Per Diluted
|
||||||||||
| GAAP net loss | $ |
(2,149,000 |
) |
$ |
(0.11 |
) |
$ |
(2,954,000 |
) |
$ |
(0.15 |
) |
||||
| Non-cash items impacting net income | ||||||||||||||||
| Core and finished goods premium amortization | $ |
2,988,000 |
|
$ |
0.15 |
|
$ |
2,621,000 |
|
$ |
0.13 |
|
||||
| Revaluation - cores on customers' shelves |
|
1,225,000 |
|
|
0.06 |
|
|
1,164,000 |
|
|
0.06 |
|
||||
| Share-based compensation expenses |
|
1,984,000 |
|
|
0.10 |
|
|
1,016,000 |
|
|
0.05 |
|
||||
| Foreign exchange impact of lease liabilities and forward contracts |
|
(1,469,000 |
) |
|
(0.08 |
) |
|
5,428,000 |
|
|
0.27 |
|
||||
| Gain due to realignment of inventory at customer distribution centers |
|
(643,000 |
) |
|
(0.03 |
) |
|
- |
|
|
- |
|
||||
| Change in fair value of compound net derivative liability |
|
2,260,000 |
|
|
0.12 |
|
|
380,000 |
|
|
0.02 |
|
||||
| Tax effect (a) |
|
(1,586,000 |
) |
|
(0.08 |
) |
|
(2,652,000 |
) |
|
(0.13 |
) |
||||
| Total non-cash items impacting net income | $ |
4,759,000 |
|
$ |
0.25 |
|
$ |
7,957,000 |
|
$ |
0.40 |
|
||||
| Cash items impacting net income | ||||||||||||||||
| New product line start-up costs and transition expenses, and severance and other (b) |
|
- |
|
|
- |
|
|
1,498,000 |
|
|
0.08 |
|
||||
| Net tariff costs paid for products sold before price increases were effective |
|
698,000 |
|
|
0.04 |
|
|
- |
|
|
- |
|
||||
| Tax effect (a) |
|
(175,000 |
) |
|
(0.01 |
) |
|
(375,000 |
) |
|
(0.02 |
) |
||||
| Total cash items impacting net income | $ |
523,000 |
|
$ |
0.03 |
|
$ |
1,123,000 |
|
$ |
0.06 |
|
||||
(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 September 30, 2024, consists of $1,298,000 impacting gross profit and $200,000 included in operating expenses. |
|||||||||
Exhibit 2 |
||||||||||||||||
Items Impacting Net Income for the Six Months Ended September 30, 2025 and 2024 |
||||||||||||||||
Six Months Ended September 30, |
||||||||||||||||
2025 |
|
2024 |
||||||||||||||
$ |
|
Per Diluted
|
|
$ |
|
Per Diluted
|
||||||||||
| GAAP net income (loss) | $ |
893,000 |
|
$ |
0.04 |
|
$ |
(21,039,000 |
) |
$ |
(1.07 |
) |
||||
| Non-cash items impacting net income | ||||||||||||||||
| Core and finished goods premium amortization | $ |
5,835,000 |
|
$ |
0.29 |
|
$ |
5,349,000 |
|
$ |
0.27 |
|
||||
| Revaluation - cores on customers' shelves |
|
2,251,000 |
|
|
0.11 |
|
|
1,558,000 |
|
|
0.08 |
|
||||
| Share-based compensation expenses |
|
2,930,000 |
|
|
0.15 |
|
|
2,016,000 |
|
|
0.10 |
|
||||
| Foreign exchange impact of lease liabilities and forward contracts |
|
(9,817,000 |
) |
|
(0.49 |
) |
|
16,506,000 |
|
|
0.84 |
|
||||
| Gain due to realignment of inventory at customer distribution centers |
|
(643,000 |
) |
|
(0.03 |
) |
|
- |
|
|
- |
|
||||
| Change in fair value of compound net derivative liability |
|
4,050,000 |
|
|
0.20 |
|
|
(2,200,000 |
) |
|
(0.11 |
) |
||||
| Tax effect (a) |
|
(1,152,000 |
) |
|
(0.06 |
) |
|
(5,807,000 |
) |
|
(0.29 |
) |
||||
| Total non-cash items impacting net income | $ |
3,454,000 |
|
$ |
0.17 |
|
$ |
17,422,000 |
|
$ |
0.88 |
|
||||
| Cash items impacting net income | ||||||||||||||||
| New product line start-up costs and transition expenses, and severance and other (b) |
|
- |
|
|
- |
|
|
4,438,000 |
|
|
0.23 |
|
||||
| Net tariff costs paid for products sold before price increases were effective |
|
2,124,000 |
|
|
0.11 |
|
|
- |
|
|
- |
|
||||
| Tax effect (a) |
|
(531,000 |
) |
|
(0.03 |
) |
|
(1,110,000 |
) |
|
(0.06 |
) |
||||
| Total cash items impacting net income | $ |
1,593,000 |
|
$ |
0.08 |
|
$ |
3,328,000 |
|
$ |
0.17 |
|
||||
(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 six months ended September 30, 2024, consists of $1,298,000 impacting gross profit and $3,140,000 included in operating expenses. |
|||||||||
Exhibit 3 |
||||||||||||||
Items Impacting Gross Profit for the Three Months Ended September 30, 2025 and 2024 |
||||||||||||||
Three Months Ended September 30, |
||||||||||||||
2025 |
|
2024 |
||||||||||||
$ |
|
Gross
|
|
$ |
|
Gross
|
||||||||
| GAAP gross profit | $ |
42,727,000 |
|
19.3 |
% |
$ |
41,277,000 |
|
19.8 |
% |
||||
| Non-cash items impacting gross profit | ||||||||||||||
| Core and finished goods premium amortization | $ |
2,988,000 |
|
1.3 |
% |
$ |
2,621,000 |
1.3 |
% |
|||||
| Revaluation - cores on customers' shelves |
|
1,225,000 |
|
0.6 |
% |
|
1,164,000 |
|
0.6 |
% |
||||
| Gain due to realignment of inventory at customer distribution centers (a) |
|
(643,000 |
) |
1.1 |
% |
|
- |
|
- |
|
||||
| Total non-cash items impacting gross profit | $ |
3,570,000 |
|
3.0 |
% |
$ |
3,785,000 |
|
1.8 |
% |
||||
| Cash items impacting gross profit | ||||||||||||||
| New product line start-up costs and transition expenses |
|
- |
|
- |
|
|
1,298,000 |
|
0.6 |
% |
||||
| Net tariff costs paid for products sold before price increases were effective |
|
698,000 |
|
0.3 |
% |
|
- |
|
- |
|
||||
| Total cash items impacting gross profit | $ |
698,000 |
|
0.3 |
% |
$ |
1,298,000 |
|
0.6 |
% |
||||
(a) |
gross margin reflecting impact to net sales and cost of goods sold |
Exhibit 4 |
||||||||||||||
Items Impacting Gross Profit for the Six Months Ended September 30, 2025 and 2024 |
||||||||||||||
Six Months Ended September 30, |
||||||||||||||
2025 |
|
2024 |
||||||||||||
$ |
|
Gross
|
|
$ |
|
Gross
|
||||||||
| GAAP gross profit | $ |
76,644,000 |
|
18.7 |
% |
$ |
70,451,000 |
|
18.6 |
% |
||||
|
||||||||||||||
| Non-cash items impacting gross profit | ||||||||||||||
| Core and finished goods premium amortization | $ |
5,835,000 |
|
1.4 |
% |
$ |
5,349,000 |
|
1.4 |
% |
||||
| Revaluation - cores on customers' shelves |
|
2,251,000 |
|
0.5 |
% |
|
1,558,000 |
|
0.4 |
% |
||||
| Gain due to realignment of inventory at customer distribution centers (a) |
|
(643,000 |
) |
0.5 |
% |
|
- |
|
- |
|
||||
| Total non-cash items impacting gross profit | $ |
7,443,000 |
|
2.5 |
% |
$ |
6,907,000 |
|
1.8 |
% |
||||
| Cash items impacting gross profit | ||||||||||||||
| New product line start-up costs and transition expenses |
|
- |
|
- |
|
|
1,298,000 |
|
0.3 |
% |
||||
| Net tariff costs paid for products sold before price increases were effective |
|
2,124,000 |
|
0.5 |
% |
|
- |
|
- |
|
||||
| Total cash items impacting gross profit | $ |
2,124,000 |
|
0.5 |
% |
$ |
1,298,000 |
|
0.3 |
% |
||||
| (a) gross margin reflecting impact to net sales and cost of goods sold |
Exhibit 5 |
||||||||||||||||
Items Impacting EBITDA for the Three and Six Months Ended September 30, 2025 and 2024 |
||||||||||||||||
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||||
| GAAP net (loss) income | $ |
(2,149,000 |
) |
$ |
(2,954,000 |
) |
$ |
893,000 |
|
$ |
(21,039,000 |
) |
||||
| Interest expense, net |
|
12,699,000 |
|
|
14,182,000 |
|
|
25,511,000 |
|
|
28,569,000 |
|
||||
| Income tax expense |
|
3,561,000 |
|
|
912,000 |
|
|
5,986,000 |
|
|
734,000 |
|
||||
| Depreciation and amortization |
|
2,373,000 |
|
|
2,601,000 |
|
|
4,822,000 |
|
|
5,330,000 |
|
||||
| EBITDA | $ |
16,484,000 |
|
$ |
14,741,000 |
|
$ |
37,212,000 |
|
$ |
13,594,000 |
|
||||
| Non-cash items impacting EBITDA | ||||||||||||||||
| Core and finished goods premium amortization | $ |
2,988,000 |
|
$ |
2,621,000 |
|
$ |
5,835,000 |
|
$ |
5,349,000 |
|
||||
| Revaluation - cores on customers' shelves |
|
1,225,000 |
|
|
1,164,000 |
|
|
2,251,000 |
|
|
1,558,000 |
|
||||
| Share-based compensation expenses |
|
1,984,000 |
|
|
1,016,000 |
|
|
2,930,000 |
|
|
2,016,000 |
|
||||
| Foreign exchange impact of lease liabilities and forward contracts |
|
(1,469,000 |
) |
|
5,428,000 |
|
|
(9,817,000 |
) |
|
16,506,000 |
|
||||
| Gain due to realignment of inventory at customer distribution centers |
|
(643,000 |
) |
|
- |
|
|
(643,000 |
) |
|
- |
|
||||
| Change in fair value of compound net derivative liability |
|
2,260,000 |
|
|
380,000 |
|
|
4,050,000 |
|
|
(2,200,000 |
) |
||||
| Total non-cash items impacting EBITDA | $ |
6,345,000 |
|
$ |
10,609,000 |
|
$ |
4,606,000 |
|
$ |
23,229,000 |
|
||||
| Cash items impacting EBITDA | ||||||||||||||||
| New product line start-up costs and transition expenses, and severance and other |
|
- |
|
|
1,498,000 |
|
|
- |
|
|
4,438,000 |
|
||||
| Net tariff costs paid for products sold before price increases were effective |
|
698,000 |
|
|
- |
|
|
2,124,000 |
|
|
- |
|
||||
| Total cash items impacting EBITDA | $ |
698,000 |
|
$ |
1,498,000 |
|
$ |
2,124,000 |
|
$ |
4,438,000 |
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20251110497934/en/
Contacts
Gary S. Maier
Vice President, Corporate Communications & IR
(310) 972-5124
