Motorcar Parts of America, Inc. (NASDAQ:MPAA) Q1 2024 Earnings Conference Call August 9, 2023 1:00 PM ET

Company Participants

Gary Maier - Vice President, Corporate Communications and Investor Relations

Selwyn Joffe - Chairman, President and Chief Executive Officer

David Lee - Chief Financial Officer

Conference Call Participants

Matthew Koranda - ROTH MKM

Operator

Thank you for standing by. My name is Brian, and I will be your conference operator today. At this time, I would like to welcome everyone to the Motorcar Parts of America – I would like to welcome everyone to the Motorcar Parts of America Fiscal 2024 First Quarter Conference Call and Webcast. [Operator Instructions] Thank you.

Gary Maier, Vice President, Corporate Communications and Investor Relations, you may begin your conference.

Gary Maier

Thank you, Brian. Thanks, everyone, for joining us. Before I turn the call over to Selwyn Joffe, Chairman, President and Chief Executive Officer; and David Lee, our Chief Financial Officer, I’d like to remind everyone of the Safe-Harbor statement included in today’s press release.

The Private Securities Litigation Reform Act of 1995 provides a Safe Harbor for certain forward-looking statements, including statements made during today’s conference call. Such forward-looking statements are based on the company’s current expectations and beliefs concerning future developments and their potential effects on the company. There can be no assurance that future developments affecting the company will be those anticipated by other car parts of America. Actual results may differ from those projected in the forward-looking statements. 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.

In particular, expectations about anticipated future growth and opportunities with customers may not be achieved. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For a more detailed discussion of some of the ongoing risks and uncertainties of the company’s business, I refer you to our various filings with the Securities and Exchange Commission.

With that, I’d like to begin our call and turn it over to Selwyn.

Selwyn Joffe

Thank you, Gary. I appreciate everyone joining us today. We are still on track to achieve our year-over-year targets, notwithstanding the timing of orders and softness in April due to a very rainy and cooler March, as reported by the retailers. We saw a strong recovery in the May, June months and sales continue to be robust. Also, I may note the fiscal second quarter is off to an excellent start based on record sales for a July month. Industry trends and extreme hard weather across the country support our optimism. Equally important, we are seeing improved operational efficiencies starting to materialize, enhanced by increasing sales volume, particularly from our emerging brick-related product lines. These operating efficiency improvements, along with increased overhead absorption from higher sales and production and price increases all bode well for margin expansion.