Motorcar Parts of America Inc

Motorcar Parts of America reaffirmed its fiscal 2027 guidance during its first-quarter earnings call, projecting net sales between $780 million and $800 million, representing 7.5% to 10.2% year-over-year growth. The company reported fiscal first-quarter net sales of $168 million, impacted by order timing, and a gross margin of 16.2%, which included noncash and one-time items; excluding those, gross margin was 20.2%. Management highlighted the recent Centric Parts brake brands acquisition, which it expects to relaunch by the current fiscal year end, and noted that Centric generated $400 million in gross annualized sales at its peak. The company also said it expects to add more than $100 million of additional annualized net sales by the end of fiscal 2027, not included in guidance, bringing annualized net sales to more than $900 million. Operating income is expected to be between $86 million and $91 million, and EBITDA between $95 million and $100 million.

Motorcar Parts of America has extended the maturity date of its $238.62 million revolving credit facility led by PNC Bank to August 2031. The amended facility includes enhancements that provide working capital flexibility, liquidity and other favorable terms. Chairman, President and CEO Selwyn Joffe said the extension recognizes the company's milestones and solid position within the automotive aftermarket, and reinforces its strong relationship with PNC Bank and its lending syndicate. He highlighted the company's expansion of its brand portfolio, including the recent purchase of intellectual and digital property associated with the Centric Parts brake brands and its Quality-Built brand, as important catalysts to support continued strategic growth. Peter Mardaga, head of PNC Business Credit, stated the extension reflects PNC's confidence in Motorcar Parts of America, its leadership team and its strategic direction.

Motorcar Parts of America has acquired the intellectual and digital property associated with the Centric Parts brake brands from First Brands Group through its Chapter 11 bankruptcy process. The transaction was managed through a court-supervised sales process under Section 363 of the U.S. Bankruptcy Code, structured without assuming operational liabilities, and certain assets were transferred free-and-clear from all liens, claims and encumbrances. Additional terms were not disclosed. Industry reports estimate Centric Parts brake business had gross sales as high as $400 million at the supplier level.