Exhibit 99.1
CONTACT:
Gary S. Maier
Vice President, Corporate Communications & IR
(310) 972-5124
MOTORCAR PARTS OF AMERICA REPORTS RECORD FISCAL THIRD QUARTER RESULTS
- Record Sales and Gross Profit with Strong Cash Flow Generation -
LOS ANGELES, CA – February 10, 2025 – Motorcar Parts of America, Inc. (Nasdaq: MPAA) today reported results for its fiscal 2025 third quarter and nine-month period
ended December 31, 2024, with a continued favorable full-year outlook supported by record third quarter sales and gross profit, and the ongoing benefits of strategic initiatives to further enhance profitability.
Key highlights for the fiscal third quarter.
|
• |
Net sales increased 8.3 percent to a fiscal third quarter record $186.2 million.
|
|
• |
Gross profit increased 49.4 percent to a record $44.9 million.
|
|
• |
Net income for the quarter was $2.3 million.
|
|
• |
Generated cash from operating activities of $34.4 million and reduced net bank debt by $30.3 million.
|
|
• |
Repurchased 268,130 shares for $2.1 million.
|
|
• |
Non-cash items reduced net income by $5.0 million and gross profit by $3.4 million for the quarter, as detailed in the exhibits.
|
Fiscal 2025 Third Quarter Results
Net sales for the fiscal 2025 third quarter increased 8.3 percent to a third
quarter record $186.2 million from $171.9 million in the prior year.
Gross profit for the fiscal 2025 third quarter increased 49.4 percent to a record
$44.9 million from $30.0 million a year earlier
.
Gross margin for the fiscal 2025 third quarter was 24.1 percent compared with 17.5 percent a year
earlier
. Gross margin for the fiscal 2025 third
quarter was impacted by $3.4 million, or 1.8 percent, of
non-cash expenses, as detailed in Exhibit 3
.
Interest expense for the fiscal third quarter decreased by $3.9 million to $14.4 million from $18.3 million a year ago, impacted by lower average outstanding balances under the company’s credit facility and lower interest rates.
Net income for the fiscal 2025 third quarter was $2.3 million, or $0.11 per diluted share, including the impact of non-cash expenses of $5.0 million, or
$0.24 per diluted share, as detailed in Exhibit 1. Net loss for the prior year was $47.2 million, or $2.40 per share, including the impact of non-cash expenses of $40.4 million, or $2.06 per share, and cash expenses of $1.4 million, or $0.07 per share, as detailed in Exhibit 1.
“We achieved solid results for the quarter and continue to benefit from strategic initiatives designed to enhance our performance. While customer
specific internal dynamics can have a short-term impact on suppliers, we are optimistic about our ability to further leverage our leadership position within the non-discretionary aftermarket parts market – supported by quality products,
customer-centric service and an industry recognized commitment to excellence,” said Selwyn Joffe, chairman, president, and chief executive officer.
“The underlying fundamentals of our business continue to be strong and we remain focused on enhancing shareholder value and achieving continued success,”
Joffe added.
He highlighted that the company generated approximately $34.4 million of cash from operating activities during fiscal 2025 third quarter and
reduced net bank debt by $30.3 million to $84.0 million from $114.3 million.
Nine-Month Results
Net sales for the fiscal 2025 nine-month period increased 6.8 percent to a record $564.2 million from $528.2 million a year ago.
Gross profit for the fiscal 2025 nine-month period increased 18.0 percent to a record $115.3 million from
$97.8 million a year earlier. Gross margin for the fiscal 2025 nine-month period was 20.4 percent compared with 18.5 percent a year earlier. Gross margin for the fiscal 2025 nine-month period was impacted by $10.3 million, or 1.8 percent, of non-cash expenses, and $1.3 million, or 0.2 percent, of one-time cash expenses, as detailed in Exhibit 4. In addition to the items detailed in Exhibit 4, gross profit for the current nine-month period was also impacted by $4.0 million, or 0.7 percent, of certain one-time expenses for onboarding new business.
Interest expense decreased by $2.4 million for the nine months to $43.0 million from $45.4 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 nine-month period was $18.7 million, or $0.95 per share, including the impact of non-cash expenses of $22.4 million, or
$1.13 per share, and one-time cash expenses of $3.3 million, or $0.17 per share, as detailed in Exhibit 2. Net loss for the prior year nine-month period was $50.6 million, or $2.58 per share, including the impact of non-cash expenses of $49.5
million, or $2.53 per share, and cash expenses of $5.8 million, or $0.30 per share, as detailed in Exhibit 2.
In addition to the items detailed in Exhibit 2, as previously noted, results for the current nine-month period were also impacted by $4.0 million, or $0.15 per share, of certain
one-time expenses for onboarding new business.
During the fiscal third quarter, the company repurchased 268,130 shares for $2.1 million at an average share price of $7.82 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.
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 February 10, 2025 through 8:59 p.m. Pacific time on February 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 2024 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.
# # #
(Financial tables follow)
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
186,176,000
|
|
|
$
|
171,862,000
|
|
|
$
|
564,249,000
|
|
|
$
|
528,206,000
|
|
|
Cost of goods sold
|
|
|
141,294,000
|
|
|
|
141,819,000
|
|
|
|
448,916,000
|
|
|
|
430,448,000
|
|
|
Gross profit
|
|
|
44,882,000
|
|
|
|
30,043,000
|
|
|
|
115,333,000
|
|
|
|
97,758,000
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
|
|
|
16,212,000
|
|
|
|
15,198,000
|
|
|
|
47,934,000
|
|
|
|
42,125,000
|
|
|
Sales and marketing
|
|
|
5,621,000
|
|
|
|
5,931,000
|
|
|
|
16,904,000
|
|
|
|
17,038,000
|
|
|
Research and development
|
|
|
3,008,000
|
|
|
|
2,539,000
|
|
|
|
7,884,000
|
|
|
|
7,352,000
|
|
|
Foreign exchange impact of lease liabilities and forward contracts
|
|
|
2,460,000
|
|
|
|
(3,149,000
|
)
|
|
|
18,966,000
|
|
|
|
(2,659,000
|
)
|
|
Total operating expenses
|
|
|
27,301,000
|
|
|
|
20,519,000
|
|
|
|
91,688,000
|
|
|
|
63,856,000
|
|
|
Operating income
|
|
|
17,581,000
|
|
|
|
9,524,000
|
|
|
|
23,645,000
|
|
|
|
33,902,000
|
|
|
Other expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
14,435,000
|
|
|
|
18,297,000
|
|
|
|
43,004,000
|
|
|
|
45,400,000
|
|
|
Change in fair value of compound net derivative liability
|
|
|
(260,000
|
)
|
|
|
1,160,000
|
|
|
|
(2,460,000
|
)
|
|
|
1,690,000
|
|
|
Loss on extinguishment of debt
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
168,000
|
|
|
Total other expenses
|
|
|
14,175,000
|
|
|
|
19,457,000
|
|
|
|
40,544,000
|
|
|
|
47,258,000
|
|
|
Income (loss) before income tax expense
|
|
|
3,406,000
|
|
|
|
(9,933,000
|
)
|
|
|
(16,899,000
|
)
|
|
|
(13,356,000
|
)
|
|
Income tax expense
|
|
|
1,115,000
|
|
|
|
37,281,000
|
|
|
|
1,849,000
|
|
|
|
37,226,000
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
2,291,000
|
|
|
$
|
(47,214,000
|
)
|
|
$
|
(18,748,000
|
)
|
|
$
|
(50,582,000
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per share
|
|
$
|
0.12
|
|
|
$
|
(2.40
|
)
|
|
$
|
(0.95
|
)
|
|
$
|
(2.58
|
)
|
|
Diluted net income (loss) per share
|
|
$
|
0.11
|
|
|
$
|
(2.40
|
)
|
|
$
|
(0.95
|
)
|
|
$
|
(2.58
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
19,783,170
|
|
|
|
19,634,306
|
|
|
|
19,739,481
|
|
|
|
19,580,960
|
|
|
Diluted
|
|
|
20,416,958
|
|
|
|
19,634,306
|
|
|
|
19,739,481
|
|
|
|
19,580,960
|
|
MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
| |
|
December 31, 2024
|
|
|
March 31, 2024
|
|
|
ASSETS
|
|
(Unaudited)
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
10,810,000
|
|
|
$
|
13,974,000
|
|
|
Short-term investments
|
|
|
1,909,000
|
|
|
|
1,837,000
|
|
|
Accounts receivable — net
|
|
|
82,040,000
|
|
|
|
96,296,000
|
|
|
Inventory — net
|
|
|
367,028,000
|
|
|
|
397,328,000
|
|
|
Contract assets
|
|
|
22,213,000
|
|
|
|
27,139,000
|
|
|
Prepaid expenses and other current assets
|
|
|
20,304,000
|
|
|
|
23,885,000
|
|
|
Total current assets
|
|
|
504,304,000
|
|
|
|
560,459,000
|
|
|
Plant and equipment — net
|
|
|
30,954,000
|
|
|
|
38,338,000
|
|
|
Operating lease assets
|
|
|
67,552,000
|
|
|
|
83,973,000
|
|
|
Long-term deferred income taxes
|
|
|
5,664,000
|
|
|
|
2,976,000
|
|
|
Long-term contract assets
|
|
|
334,424,000
|
|
|
|
320,282,000
|
|
|
Goodwill and intangible assets — net
|
|
|
3,846,000
|
|
|
|
4,274,000
|
|
|
Other assets
|
|
|
2,764,000
|
|
|
|
1,700,000
|
|
|
TOTAL ASSETS
|
|
$
|
949,508,000
|
|
|
$
|
1,012,002,000
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
158,113,000
|
|
|
$
|
185,182,000
|
|
|
Customer finished goods returns accrual
|
|
|
40,732,000
|
|
|
|
38,312,000
|
|
|
Contract liabilities
|
|
|
36,239,000
|
|
|
|
37,591,000
|
|
|
Revolving loan
|
|
|
94,802,000
|
|
|
|
128,000,000
|
|
|
Other current liabilities
|
|
|
9,417,000
|
|
|
|
7,021,000
|
|
|
Operating lease liabilities
|
|
|
9,308,000
|
|
|
|
8,319,000
|
|
|
Total current liabilities
|
|
|
348,611,000
|
|
|
|
404,425,000
|
|
|
Convertible notes, related party
|
|
|
32,377,000
|
|
|
|
30,776,000
|
|
|
Long-term contract liabilities
|
|
|
231,962,000
|
|
|
|
212,068,000
|
|
|
Long-term deferred income taxes
|
|
|
524,000
|
|
|
|
511,000
|
|
|
Long-term operating lease liabilities
|
|
|
66,833,000
|
|
|
|
72,240,000
|
|
|
Other liabilities
|
|
|
6,530,000
|
|
|
|
6,872,000
|
|
|
Total liabilities
|
|
|
686,837,000
|
|
|
|
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;
19,583,711 and 19,662,380 shares issued and outstanding at December 31, 2024 and
March 31, 2024, respectively
|
|
|
196,000
|
|
|
|
197,000
|
|
|
Additional paid-in capital
|
|
|
236,988,000
|
|
|
|
236,255,000
|
|
|
Retained earnings
|
|
|
20,755,000
|
|
|
|
39,503,000
|
|
|
Accumulated other comprehensive income
|
|
|
4,732,000
|
|
|
|
9,155,000
|
|
|
Total shareholders' equity
|
|
|
262,671,000
|
|
|
|
285,110,000
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
$
|
949,508,000
|
|
|
$
|
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 nine months ended December 31, 2024 and 2023. 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 December 31, 2024 and 2023 |
Exhibit 1
|
|
|
Three Months Ended December 31,
|
|
|
|
2024
|
|
|
2023
|
|
| |
|
|
$
|
|
|
Per Share
|
|
|
|
$
|
|
|
Per Share
|
|
|
GAAP net income (loss)
|
|
$
|
2,291,000
|
|
|
$
|
0.11
|
|
|
$
|
(47,214,000
|
)
|
|
$
|
(2.40
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash items impacting net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core and finished goods premium amortization
|
|
$
|
2,664,000
|
|
|
$
|
0.13
|
|
|
$
|
2,838,000
|
|
|
$
|
0.14
|
|
|
Revaluation - cores on customers' shelves
|
|
|
758,000
|
|
|
|
0.04
|
|
|
|
1,607,000
|
|
|
|
0.08
|
|
|
Share-based compensation expenses
|
|
|
993,000
|
|
|
|
0.05
|
|
|
|
1,425,000
|
|
|
|
0.07
|
|
|
Foreign exchange impact of lease liabilities and forward contracts
|
|
|
2,460,000
|
|
|
|
0.12
|
|
|
|
(3,149,000
|
)
|
|
|
(0.16
|
)
|
|
Change in fair value of compound net derivative liability
|
|
|
(260,000
|
)
|
|
|
(0.01
|
)
|
|
|
1,160,000
|
|
|
|
0.06
|
|
|
Tax effect (a)
|
|
|
(1,654,000
|
)
|
|
|
(0.08
|
)
|
|
|
(970,000
|
)
|
|
|
(0.05
|
)
|
|
Tax valuation allowance
|
|
|
|
|
|
|
|
|
|
|
37,461,000
|
|
|
|
1.91
|
|
|
Total non-cash items impacting net income
|
|
$
|
4,961,000
|
|
|
$
|
0.24
|
|
|
$
|
40,372,000
|
|
|
$
|
2.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash items impacting net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply chain disruptions and related costs (b)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1,555,000
|
|
|
$
|
0.08
|
|
|
New product line start-up costs and transition expenses, and severance and other (c)
|
|
|
-
|
|
|
|
-
|
|
|
|
296,000
|
|
|
|
0.02
|
|
|
Tax effect (a)
|
|
|
-
|
|
|
|
-
|
|
|
|
(463,000
|
)
|
|
|
(0.02
|
)
|
|
Total cash items impacting net income
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1,388,000
|
|
|
$
|
0.07
|
|
|
(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 December 31, 2023, consists of $1,555,000 impacting gross profit.
|
|
(c)
|
For the three months ended December 31, 2023, consists of $296,000 included in operating expenses.
|
| Items Impacting Net Income for the Nine Months Ended December 31, 2024 and 2023 |
Exhibit 2 |
| |
|
Nine Months Ended December 30,
|
|
| |
|
2024
|
|
|
2023
|
|
| |
|
|
$
|
|
|
Per Share
|
|
|
|
$
|
|
|
Per Share
|
|
|
GAAP net loss
|
|
$
|
(18,748,000
|
)
|
|
$
|
(0.95
|
)
|
|
$
|
(50,582,000
|
)
|
|
$
|
(2.58
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash items impacting net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core and finished goods premium amortization
|
|
$
|
8,013,000
|
|
|
$
|
0.41
|
|
|
$
|
8,202,000
|
|
|
$
|
0.42
|
|
|
Revaluation - cores on customers' shelves
|
|
|
2,316,000
|
|
|
|
0.12
|
|
|
|
4,380,000
|
|
|
|
0.22
|
|
|
Share-based compensation expenses
|
|
|
3,009,000
|
|
|
|
0.15
|
|
|
|
4,268,000
|
|
|
|
0.22
|
|
|
Foreign exchange impact of lease liabilities and forward contracts
|
|
|
18,966,000
|
|
|
|
0.96
|
|
|
|
(2,659,000
|
)
|
|
|
(0.14
|
)
|
|
Change in fair value of compound net derivative liability and loss on extinguishment of debt
|
|
|
(2,460,000
|
)
|
|
|
(0.12
|
)
|
|
|
1,858,000
|
|
|
|
0.09
|
|
|
Tax effect (a)
|
|
|
(7,461,000
|
)
|
|
|
(0.38
|
)
|
|
|
(4,012,000
|
)
|
|
|
(0.20
|
)
|
|
Tax valuation allowance
|
|
|
-
|
|
|
|
-
|
|
|
|
37,461,000
|
|
|
|
1.91
|
|
|
Total non-cash items impacting net income
|
|
$
|
22,383,000
|
|
|
$
|
1.13
|
|
|
$
|
49,498,000
|
|
|
$
|
2.53
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash items impacting net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply chain disruptions and related costs (b)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
6,738,000
|
|
|
$
|
0.34
|
|
|
New product line start-up costs and transition expenses, and severance and other (c)
|
|
|
4,438,000
|
|
|
|
0.22
|
|
|
|
980,000
|
|
|
|
0.05
|
|
|
Tax effect (a)
|
|
|
(1,110,000
|
)
|
|
|
(0.06
|
)
|
|
|
(1,930,000
|
)
|
|
|
(0.10
|
)
|
|
Total cash items impacting net income
|
|
$
|
3,328,000
|
|
|
$
|
0.17
|
|
|
$
|
5,788,000
|
|
|
$
|
0.30
|
|
|
(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 nine months ended December 31, 2023, consists of $6,738,000 impacting gross profit.
|
|
(c)
|
For the nine months ended December 31, 2024, consists of $1,298,000 impacting gross profit and $3,140,000 included in operating expenses.
|
For the nine months ended December 31, 2023, consists of $980,000 included in operating expenses.
|
Items Impacting Gross Profit for the Three Months Ended December 31, 2024 and 2023
|
Exhibit 3
|
|
|
Three Months Ended December 31,
|
|
| |
|
2024
|
|
|
2023
|
|
| |
|
|
$
|
|
|
Gross
Margin
|
|
|
|
$
|
|
|
Gross
Margin
|
|
|
GAAP gross profit
|
|
$
|
44,882,000
|
|
|
|
24.1
|
%
|
|
$
|
30,043,000
|
|
|
|
17.5
|
%
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash items impacting gross profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core and finished goods premium amortization
|
|
$
|
2,664,000
|
|
|
|
1.4
|
%
|
|
$
|
2,838,000
|
|
|
|
1.7
|
%
|
|
Revaluation - cores on customers' shelves
|
|
|
758,000
|
|
|
|
0.4
|
%
|
|
|
1,607,000
|
|
|
|
0.9
|
%
|
|
Total non-cash items impacting gross profit
|
|
$
|
3,422,000
|
|
|
|
1.8
|
%
|
|
$
|
4,445,000
|
|
|
|
2.6
|
%
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash items impacting gross profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply chain disruptions and related costs
|
|
$
|
-
|
|
|
|
-
|
|
|
$
|
1,555,000
|
|
|
|
0.9
|
%
|
|
Total cash items impacting gross profit
|
|
$
|
-
|
|
|
|
-
|
|
|
$
|
1,555,000
|
|
|
|
0.9
|
%
|
Items Impacting Gross Profit for the Nine Months Ended December 31, 2024 and 2023
|
Exhibit 4
|
| |
|
Nine Months Ended December 31,
|
|
| |
|
2024
|
|
|
2023
|
|
| |
|
|
$
|
|
|
Gross
Margin
|
|
|
|
$
|
|
|
Gross
Margin
|
|
|
GAAP gross profit
|
|
$
|
115,333,000
|
|
|
|
20.4
|
%
|
|
$
|
97,758,000
|
|
|
|
18.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash items impacting gross profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core and finished goods premium amortization
|
|
$
|
8,013,000
|
|
|
|
1.4
|
%
|
|
$
|
8,202,000
|
|
|
|
1.6
|
%
|
|
Revaluation - cores on customers' shelves
|
|
|
2,316,000
|
|
|
|
0.4
|
%
|
|
|
4,380,000
|
|
|
|
0.8
|
%
|
|
Total non-cash items impacting gross profit
|
|
$
|
10,329,000
|
|
|
|
1.8
|
%
|
|
$
|
12,582,000
|
|
|
|
2.4
|
%
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash items impacting gross profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply chain disruptions and related costs
|
|
$
|
-
|
|
|
|
-
|
|
|
$
|
6,738,000
|
|
|
|
1.3
|
%
|
|
New product line start-up costs and transition expenses
|
|
|
1,298,000
|
|
|
|
0.2
|
%
|
|
|
-
|
|
|
|
-
|
|
|
Total cash items impacting gross profit
|
|
$
|
1,298,000
|
|
|
|
0.2
|
%
|
|
$
|
6,738,000
|
|
|
|
1.3
|
%
|
Items Impacting EBITDA for the Three and Nine Months Ended December 31, 2024 and 2023
|
Exhibit 5 |
| |
|
Three Months Ended |
|
|
December 31,
|
|
|
Nine Months Ended |
|
|
December 31,
|
|
| |
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
GAAP net income (loss)
|
|
$
|
2,291,000
|
|
|
$
|
(47,214,000
|
)
|
|
$
|
(18,748,000
|
)
|
|
$
|
(50,582,000
|
)
|
|
Interest expense, net
|
|
|
14,435,000
|
|
|
|
18,297,000
|
|
|
|
43,004,000
|
|
|
|
45,400,000
|
|
|
Income tax expense
|
|
|
1,115,000
|
|
|
|
37,281,000
|
|
|
|
1,849,000
|
|
|
|
37,226,000
|
|
|
Depreciation and amortization
|
|
|
2,532,000
|
|
|
|
2,878,000
|
|
|
|
7,862,000
|
|
|
|
8,844,000
|
|
|
EBITDA
|
|
$
|
20,373,000
|
|
|
$
|
11,242,000
|
|
|
$
|
33,967,000
|
|
|
$
|
40,888,000
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash items impacting EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core and finished goods premium amortization
|
|
$
|
2,664,000
|
|
|
$
|
2,838,000
|
|
|
$
|
8,013,000
|
|
|
$
|
8,202,000
|
|
|
Revaluation - cores on customers' shelves
|
|
|
758,000
|
|
|
|
1,607,000
|
|
|
|
2,316,000
|
|
|
|
4,380,000
|
|
|
Share-based compensation expenses
|
|
|
993,000
|
|
|
|
1,425,000
|
|
|
|
3,009,000
|
|
|
|
4,268,000
|
|
|
Foreign exchange impact of lease liabilities and forward contracts
|
|
|
2,460,000
|
|
|
|
(3,149,000
|
)
|
|
|
18,966,000
|
|
|
|
(2,659,000
|
)
|
|
Change in fair value of compound net derivative liability and loss on extinguishment of debt
|
|
|
(260,000
|
)
|
|
|
1,160,000
|
|
|
|
(2,460,000
|
)
|
|
|
1,858,000
|
|
|
Total non-cash items impacting EBITDA
|
|
$
|
6,615,000
|
|
|
$
|
3,881,000
|
|
|
$
|
29,844,000
|
|
|
$
|
16,049,000
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash items impacting EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply chain disruptions and related costs
|
|
$
|
-
|
|
|
$
|
1,555,000
|
|
|
$
|
-
|
|
|
$
|
6,738,000
|
|
|
New product line start-up costs and transition expenses, and severance and other
|
|
|
-
|
|
|
|
296,000
|
|
|
|
4,438,000
|
|
|
|
980,000
|
|
|
Total cash items impacting EBITDA
|
|
$
|
-
|
|
|
$
|
1,851,000
|
|
|
$
|
4,438,000
|
|
|
$
|
7,718,000
|
|
