Motorcar Parts of America, Inc. (NASDAQ:MPAA) Q3 2024 Earnings Conference Call February 9, 2024 1:00 PM ET

Company Participants

Gary Maier - Vice President-Corporate Communications & Investor Relations

Selwyn Joffe - Chairman, President and Chief Executive Officer

David Lee - Chief Financial Officer

Conference Call Participants

Mike Zabran - Roth MKM

Matt Dane - Titan Capital Management

Operator

Good afternoon. My name is Rob and I will be your conference operator today. At this time, I would like to welcome everyone to the Motorcar Parts of America Third Quarter 2024 webcast and Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

Thank you. Gary Maier, vice President of Communications and Investor Relations. You may begin your conference.

Gary Maier

Thanks. Thanks, Rob. Thanks, everyone for joining us for our call. Before we begin and I turn the call over to Selwyn Joffe, Chairman, President and Chief Executive Officer and David Lee, the company's 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 of future developments affecting the company will be those anticipated by Motorcar Parts of America.

Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve significant risks and uncertainty, some of which are beyond the control of the company and are subject to change based upon various factors. In particular, expectations that 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 the various filings with the Securities and Exchange Commission.

With that, I'd like to begin the call and turn it over to Selwyn.

Selwyn Joffe

Thank you, Gary. I appreciate everyone joining us today. We are encouraged by our operating results for the quarter, including strong sales performance, increased gross margins, increased EBITDA and significant positive cash flow and a revolver pay down of $50 million to $102.8 million of net debt. While some of this cash flow resulted from deferred collection catch up in the quarter; for the nine months, we generated $48.4 million in positive cash. I might add that these results were particularly impressive considering the industry's softness in November and December.