Motorcar Parts of America Reports Year-End Results

11 Jun by Vitaliy Dadalyan

Motorcar Parts of America Reports Year-End Results

– Record Sales for the Fiscal Year; Operating Income Up Sharply; Solid Outlook with Strong Cash Flow

LOS ANGELES–(BUSINESS WIRE)–Motorcar Parts of America, Inc. (Nasdaq: MPAA) today reported results for its fiscal 2024 fourth quarter and year ended March 31, 2024 – reflecting year-over-year increases in sales, operating income and cash flow from operating activities, despite industry softness in the fourth quarter.

Key highlights for the fiscal year.

  • Net sales increased 5.1 percent to $717.7 million.
  • Gross profit increased 16.3 percent to $132.6 million.
  • Gross margin increased 1.8 percentage points to 18.5 percent.
  • Operating income increased 26.5 percent to $46.1 million.
  • The company generated cash from operations of approximately $39.2 million.

Fiscal 2024 Fourth Quarter Results

Net sales for the fiscal 2024 fourth quarter were $189.5 million compared with $194.7 million in the prior year, impacted by industry softness. Sales in April and May 2024 indicate a strong start to the new fiscal year.

Gross profit for the fiscal 2024 fourth quarter was $34.8 million compared with $36.2 million a year earlier. Gross margin for the fiscal 2024 fourth quarter was 18.4 percent compared with 18.6 percent a year earlier. Gross margin for the fiscal 2024 fourth quarter was impacted by $3.7 million, or 2.0 percent, of non-cash items, and approximately $700,000, or 0.4 percent, of non-recurring cash items, as detailed in Exhibit 3.

Operating income for the fiscal 2024 fourth quarter was $12.2 million compared with $23.7 million in the prior year, impacted by $5.6 million of less favorable foreign exchange rate related gains associated with lease liabilities and forward contracts compared with the prior year and a $5.1 million employee retention credit benefit in the prior year.

Interest expense for the fiscal fourth quarter increased by $2.8 million, or $0.09 per diluted share, to $14.6 million from $11.9 million a year ago, primarily due to higher market interest rates and increased collection of receivables utilizing accounts receivable discount programs on higher sales, partially offset by lower average outstanding balances under the company’s credit facility.

Net income for the fiscal 2024 fourth quarter was $1.3 million compared with $1.5 million for the prior year. Net income for the fiscal 2024 fourth quarter was impacted by approximately $800,000, or $0.04 per diluted share, of non-cash items, and $1.2 million, or $0.05 per diluted share, of cash items, as detailed in Exhibit 1.

“Our fiscal 2024 results indicate continued progress in growing sales, increasing gross margins and gross profit and generating positive cash flow, which we expect to continue in the new fiscal year. Our brake-related product categories continue to gain momentum, which will result in gross margin accretion. We remain focused on executing our strategic plans, supported by positive cash flow and neutralizing working capital,” said Selwyn Joffe, chairman, president, and chief executive officer.

Twelve-Month Results

Net sales for fiscal 2024 increased 5.1 percent to a record $717.7 million from $683.1 million, despite the industry softness in the fourth quarter as noted above.

Gross profit for fiscal 2024 increased 16.3 percent to $132.6 million from $114.0 million a year earlier. Gross margin for fiscal 2024 increased to 18.5 percent from 16.7 percent a year earlier. Gross margin for fiscal 2024 was impacted by $16.3 million, or 2.3 percent, of non-cash items, and $7.5 million, or 1.0 percent, of non-recurring cash items, as detailed in Exhibit 4.

Operating income for fiscal 2024 increased 26.5 percent to $46.1 million from $36.4 million in the prior year.

Interest expense for fiscal 2024 increased by $20.5 million, or $0.78 per share, to $60.0 million from $39.6 million a year ago, primarily due to higher market interest rates and increased collection of receivables utilizing accounts receivable discount programs on higher sales, partially offset by lower average outstanding balances under the company’s credit facility.

Due primarily to $50.3 million, or $2.56 per share, of non-cash items, including a $38.0 million U.S. federal and state deferred tax asset valuation allowance under U.S. GAAP, or $1.94 per share, net loss for fiscal 2024 was $49.2 million, or $2.51 per share, compared with a net loss of $4.2 million, or $0.22 per share, a year ago. The valuation allowance does not impact any operating metrics. The non-cash items discussed above, and cash items of $7.0 million, or $0.36 per share, are detailed in Exhibit 2.

The company generated approximately $39.2 million of cash from operating activities during fiscal 2024 and reduced net bank debt by $32.5 million to $114.0 million from $146.5 million, notwithstanding $9.3 million cash used in operating activities during the fourth quarter due to seasonality of the company’s business.

Further Considerations

  • Sales volume improving:

    • Ordering activity has gained momentum.
    • Industry fundamentals are improving and will drive product demand.
  • Margin improvement:

    • Enhanced by multiple rounds of price increases.
    • Improving overhead absorption as brake-related business gains further momentum.
    • Improving operational efficiencies through volume increases.
  • Strong cash flow outlook.

Fiscal 2025 Guidance

Motorcar Parts of America expects net sales for its fiscal year ending March 31, 2025 to be between $746 million to $766 million, representing between 3.9 percent and 6.7 percent year-over-year growth. Operating income is expected to be between $62 million and $67 million, before the non-cash foreign exchange impact of lease liabilities and forward contracts and the non-cash impact of revaluation of cores on customers’ shelves. The company estimates other non-cash items will be approximately $17 million, including core and finished goods premium amortization and share-based compensation. The company estimates depreciation and amortization will be approximately $11 million.

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 June 11, 2024 through 8:59 p.m. Pacific time on June 18, 2024 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 2023 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

 

 

 

 

 

 

 

Three Months Ended

March 31,

 

Year Ended

March 31,

 

 

2024

 

2023

 

2024

 

2023

 

 

(Unaudited)

 

 

 

 

 
Net sales

$

189,478,000

 

$

194,727,000

 

$

717,684,000

 

$

683,074,000

 

Cost of goods sold

 

154,685,000

 

 

158,576,000

 

 

585,133,000

 

 

569,112,000

 

Gross profit

 

34,793,000

 

 

36,151,000

 

 

132,551,000

 

 

113,962,000

 

Operating expenses:
General and administrative

 

15,644,000

 

 

12,677,000

 

 

57,769,000

 

 

54,756,000

 

Sales and marketing

 

5,443,000

 

 

4,487,000

 

 

22,481,000

 

 

21,729,000

 

Research and development

 

2,643,000

 

 

1,992,000

 

 

9,995,000

 

 

10,322,000

 

Foreign exchange impact of lease liabilities and forward contracts

 

(1,155,000

)

 

(6,738,000

)

 

(3,814,000

)

 

(9,291,000

)

Total operating expenses

 

22,575,000

 

 

12,418,000

 

 

86,431,000

 

 

77,516,000

 

Operating income

 

12,218,000

 

 

23,733,000

 

 

46,120,000

 

 

36,446,000

 

Other expenses:
Interest expense, net

 

14,640,000

 

 

11,880,000

 

 

60,040,000

 

 

39,555,000

 

Change in fair value of compound net derivative liability

 

(2,710,000

)

 

 

 

(1,020,000

)

 

 

Loss on extinguishment of debt

 

 

 

 

 

168,000

 

 

 

Total other expenses

 

11,930,000

 

 

11,880,000

 

 

59,188,000

 

 

39,555,000

 

Income (loss) before income tax (benefit) expense

 

288,000

 

 

11,853,000

 

 

(13,068,000

)

 

(3,109,000

)

Income tax (benefit) expense

 

(1,050,000

)

 

10,394,000

 

 

36,176,000

 

 

1,098,000

 

 
Net income (loss)

$

1,338,000

 

$

1,459,000

 

$

(49,244,000

)

$

(4,207,000

)

Basic net income (loss) per share

$

0.07

 

$

0.07

 

$

(2.51

)

$

(0.22

)

Diluted net income (loss) per share

$

(0.03

)

$

0.07

 

$

(2.51

)

$

(0.22

)

 
Weighted average number of shares outstanding:
Basic

 

19,662,380

 

 

19,492,962

 

 

19,601,204

 

 

19,340,246

 

Diluted

 

22,085,292

 

 

19,603,394

 

 

19,601,204

 

 

19,340,246

 

 

MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

 

 

 

 

 

 

 

March 31, 2024

 

March 31, 2023

ASSETS
Current assets:
Cash and cash equivalents

$

13,974,000

 

$

11,596,000

 

Short-term investments

 

1,837,000

 

 

2,011,000

 

Accounts receivable — net

 

96,296,000

 

 

119,868,000

 

Inventory — net

 

377,040,000

 

 

339,675,000

 

Inventory unreturned

 

20,288,000

 

 

16,579,000

 

Contract assets

 

27,139,000

 

 

25,443,000

 

Income tax receivable

 

5,683,000

 

 

2,156,000

 

Prepaid expenses and other current assets

 

18,202,000

 

 

20,150,000

 

Total current assets

 

560,459,000

 

 

537,478,000

 

Plant and equipment — net

 

38,338,000

 

 

46,052,000

 

Operating lease assets

 

83,973,000

 

 

87,619,000

 

Deferred income taxes

 

2,976,000

 

 

32,625,000

 

Long-term contract assets

 

320,282,000

 

 

318,381,000

 

Goodwill

 

3,205,000

 

 

3,205,000

 

Intangible assets — net

 

1,069,000

 

 

2,143,000

 

Other assets

 

1,700,000

 

 

1,062,000

 

TOTAL ASSETS

$

1,012,002,000

 

$

1,028,565,000

 

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable

$

154,977,000

 

$

119,437,000

 

Accrued liabilities

 

30,205,000

 

 

22,329,000

 

Customer finished goods returns accrual

 

38,312,000

 

 

37,984,000

 

Contract liabilities

 

37,591,000

 

 

40,340,000

 

Revolving loan

 

128,000,000

 

 

145,200,000

 

Other current liabilities

 

7,021,000

 

 

4,871,000

 

Operating lease liabilities

 

8,319,000

 

 

8,767,000

 

Current portion of term loan

 

 

 

3,664,000

 

Total current liabilities

 

404,425,000

 

 

382,592,000

 

Term loan, less current portion

 

 

 

9,279,000

 

Convertible notes, related party

 

30,776,000

 

 

30,994,000

 

Contract liabilities, less current portion

 

212,068,000

 

 

193,606,000

 

Deferred income taxes

 

511,000

 

 

718,000

 

Operating lease liabilities, less current portion

 

72,240,000

 

 

79,318,000

 

Other liabilities

 

6,872,000

 

 

11,583,000

 

Total liabilities

 

726,892,000

 

 

708,090,000

 

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; 19,662,380 and 19,494,615 shares issued and outstanding at March 31, 2024 and 2023, respectively

 

197,000

 

 

195,000

 

Additional paid-in capital

 

236,255,000

 

 

231,836,000

 

Retained earnings

 

39,503,000

 

 

88,747,000

 

Accumulated other comprehensive income (loss)

 

9,155,000

 

 

(303,000

)

Total shareholders’ equity

 

285,110,000

 

 

320,475,000

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

1,012,002,000

 

$

1,028,565,000

 

 

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 twelve months ended March 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 March 31, 2024 and 2023

Exhibit 1

 

Three Months Ended March 31,

2024

2023

$

Per Share

$

Per Share

GAAP net income

$

1,338,000

 

$

(0.03

)

$

1,459,000

 

$

0.07

 

 
Non-cash items impacting net income
Core and finished goods premium amortization

$

2,761,000

 

$

0.13

 

$

2,608,000

 

$

0.13

 

Revaluation – cores on customers’ shelves

 

973,000

 

 

0.04

 

 

1,032,000

 

 

0.05

 

Share-based compensation expenses

 

432,000

 

 

0.02

 

 

1,164,000

 

 

0.06

 

Foreign exchange impact of lease liabilities and forward contracts

 

(1,155,000

)

 

(0.05

)

 

(6,738,000

)

 

(0.34

)

Change in fair value of compound net derivative liability

 

(2,710,000

)

 

(0.12

)

 

 

 

 

Tax effect (a)

 

(75,000

)

 

(0.00

)

 

484,000

 

 

0.02

 

Tax valuation allowance

 

548,000

 

 

0.02

 

 

 

 

 

Total non-cash items impacting net income

$

774,000

 

$

0.04

 

$

(1,450,000

)

$

(0.07

)

 
Cash items impacting net income
Supply chain disruptions and related costs (b)

$

734,000

 

$

0.03

 

$

2,951,000

 

$

0.15

 

New product line start-up costs and transition expenses, and severance (c)

 

840,000

 

 

0.04

 

 

923,000

 

 

0.05

 

Employee retention credit (d)

 

 

 

 

 

(5,104,000

)

 

(0.26

)

Tax effect (a)

 

(394,000

)

 

(0.02

)

 

308,000

 

 

0.02

 

Total cash items impacting net income

$

1,180,000

 

$

0.05

 

$

(922,000

)

$

(0.05

)

(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 March 31, 2024, consists of $734,000 impacting gross profit.

 

For the three-months ended March 31, 2023, consists of $2,913,000 impacting gross profit and $38,000 included in operating expenses.

(c)

For the three-months ended March 31, 2024, consists of $840,000 included in operating expenses.

 

For the three-months ended March 31, 2023, consists of $923,000 included in operating expenses.

(d)

For the three-months ended March 31, 2023, consists of ($2,034,000) impacting gross profit and ($3,070,000) included in operating expenses.

 

Items Impacting Net Income for the Twelve Months Ended March 31, 2024 and 2023

Exhibit 2

 

Twelve Months Ended March 31,

2024

 

2023

$

 

Per Share

 

$

 

Per Share

GAAP net loss

$

(49,244,000

)

$

(2.51

)

$

(4,207,000

)

$

(0.22

)

 
Non-cash items impacting net loss
Core and finished goods premium amortization

$

10,963,000

 

$

0.56

 

$

11,791,000

 

$

0.61

 

Revaluation – cores on customers’ shelves

 

5,353,000

 

 

0.27

 

 

3,736,000

 

 

0.19

 

Share-based compensation expenses

 

4,700,000

 

 

0.24

 

 

4,685,000

 

 

0.24

 

Foreign exchange impact of lease liabilities and forward contracts

 

(3,814,000

)

 

(0.19

)

 

(9,291,000

)

 

(0.48

)

Change in fair value of compound net derivative liability and loss on extinguishment of debt

 

(852,000

)

 

(0.04

)

 

 

 

 

Tax effect (a)

 

(4,088,000

)

 

(0.21

)

 

(2,730,000

)

 

(0.14

)

Tax valuation allowance

 

38,009,000

 

 

1.94

 

 

 

 

 

Total non-cash items impacting net loss

$

50,271,000

 

$

2.56

 

$

8,191,000

 

$

0.42

 

 
Cash items impacting net loss
Supply chain disruptions and related costs (b)

$

7,472,000

 

$

0.38

 

$

12,914,000

 

$

0.67

 

New product line start-up costs and transition expenses, and severance (c)

 

1,820,000

 

 

0.09

 

 

3,565,000

 

 

0.18

 

Employee retention credit (d)

 

 

 

 

 

(5,104,000

)

 

(0.26

)

Tax effect (a)

 

(2,323,000

)

 

(0.12

)

 

(2,844,000

)

 

(0.15

)

Total cash items impacting net loss

$

6,969,000

 

$

0.36

 

$

8,531,000

 

$

0.44

 

(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 twelve-months ended March 31, 2024, consists of $7,472,000 impacting gross profit.

 

For the twelve-months ended March 31, 2023, consists of $11,485,000 impacting gross profit and $1,429,000 included in operating expenses.

(c)

For the twelve-months ended March 31, 2024, consists of $1,820,000 included in operating expenses.

 

For the twelve-months ended March 31, 2023, consists of $3,565,000 included in operating expenses.

(d)

For the twelve-months ended March 31, 2023, consists of ($2,034,000) impacting gross profit and ($3,070,000) included in operating expenses.

 

Items Impacting Gross Profit for the Three Months Ended March 31, 2024 and 2023

Exhibit 3

 

Three Months Ended March 31,

2024

 

2023

$

 

Gross Margin

 

$

 

Gross Margin

GAAP gross profit

$

34,793,000

 

18.4

%

$

36,151,000

 

18.6

%

 
Non-cash items impacting gross profit
Core and finished goods premium amortization

$

2,761,000

 

1.5

%

$

2,608,000

 

1.3

%

Revaluation – cores on customers’ shelves

 

973,000

 

0.5

%

 

1,032,000

 

0.5

%

Total non-cash items impacting gross profit

$

3,734,000

 

2.0

%

$

3,640,000

 

1.9

%

 
Cash items impacting gross profit
Supply chain disruptions and related costs

$

734,000

 

0.4

%

$

2,913,000

 

1.5

%

Employee retention credit

 

 

 

 

(2,034,000

)

-1.0

%

Total cash items impacting gross profit

$

734,000

 

0.4

%

$

879,000

 

0.5

%

 

Items Impacting Gross Profit for the Twelve Months Ended March 31, 2024 and 2023

Exhibit 4

 

Twelve Months Ended March 31,

2024

 

2023

$

 

Gross Margin

 

$

 

Gross Margin

GAAP gross profit

$

132,551,000

 

18.5

%

$

113,962,000

 

16.7

%

 
Non-cash items impacting gross profit
Core and finished goods premium amortization

$

10,963,000

 

1.5

%

$

11,791,000

 

1.7

%

Revaluation – cores on customers’ shelves

 

5,353,000

 

0.7

%

 

3,736,000

 

0.5

%

Total non-cash items impacting gross profit

$

16,316,000

 

2.3

%

$

15,527,000

 

2.3

%

 
Cash items impacting gross profit
Supply chain disruptions and related costs

$

7,472,000

 

1.0

%

$

11,485,000

 

1.7

%

Employee retention credit

 

 

 

 

(2,034,000

)

-0.3

%

Total cash items impacting gross profit

$

7,472,000

 

1.0

%

$

9,451,000

 

1.4

%

 

Items Impacting EBITDA for the Three and Twelve Months Ended March 31, 2024 and 2023

Exhibit 5

 

Three Months Ended

March 31,

 

Twelve Months Ended

March 31,

2024

 

2023

 

2024

 

2023

GAAP net income (loss)

$

1,338,000

 

$

1,459,000

 

$

(49,244,000

)

$

(4,207,000

)

Interest expense, net

 

14,640,000

 

 

11,880,000

 

 

60,040,000

 

 

39,555,000

 

Income tax expense (benefit)

 

(1,050,000

)

 

10,394,000

 

 

36,176,000

 

 

1,098,000

 

Depreciation and amortization

 

2,775,000

 

 

3,122,000

 

 

11,619,000

 

 

12,444,000

 

EBITDA

$

17,703,000

 

$

26,855,000

 

$

58,591,000

 

$

48,890,000

 

 
Non-cash items impacting EBITDA
Core and finished goods premium amortization

$

2,761,000

 

$

2,608,000

 

$

10,963,000

 

$

11,791,000

 

Revaluation – cores on customers’ shelves

 

973,000

 

 

1,032,000

 

 

5,353,000

 

 

3,736,000

 

Share-based compensation expenses

 

432,000

 

 

1,164,000

 

 

4,700,000

 

 

4,685,000

 

Foreign exchange impact of lease liabilities and forward contracts

 

(1,155,000

)

 

(6,738,000

)

 

(3,814,000

)

 

(9,291,000

)

Change in fair value of compound net derivative liability and loss on extinguishment of debt

 

(2,710,000

)

 

 

 

(852,000

)

 

 

Total non-cash items impacting EBITDA

$

301,000

 

$

(1,934,000

)

$

16,350,000

 

$

10,921,000

 

 
Cash items impacting EBITDA
Supply chain disruptions and related costs

$

734,000

 

$

2,951,000

 

$

7,472,000

 

$

12,914,000

 

New product line start-up costs and transition expenses, and severance

 

840,000

 

 

923,000

 

 

1,820,000

 

 

3,565,000

 

Employee retention credit

 

 

 

(5,104,000

)

 

 

 

(5,104,000

)

Total cash items impacting EBITDA

$

1,574,000

 

$

(1,230,000

)

$

9,292,000

 

$

11,375,000

 

 

Contacts

Gary S. Maier

Vice President, Corporate Communications & IR

(310) 972-5124