MPAA - Earnings call transcript Q4 2018 | Motorcar Parts of America, Inc.

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Operator

Good day, ladies and gentlemen. And welcome to the Motorcar Parts of America Fiscal 2018 Fourth Quarter Results Conference Call. At this time, all participants are in a listen only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time [Operator Instructions].

As a reminder, today's program is being recorded. to Relations. host like Gary today's I'd Investor Maier, now, introduce for your program, And ahead. go Please

Gary Maier

Thank you, thanks Jonathan, and us. everyone for joining

Before company's Chief the turn Officer. Chairman, Executive and so Financial and begin Officer, the Joffe, Chief President call Lee David Selwyn and we over I

based press on based of forward-looking remind America. concerning me which Company are may conference XXXX during significant that Company's Safe Parts for current certain today's provides including the control Securities statements their statements beyond and from These effects those today's differ The and beliefs forward-looking projected Such affecting Company. statements, forward-looking of Motorcar to various update result involve of forward-looking Company, will in assurance the as statement revise included expectations and statements anticipated be any Safe some are future events otherwise. the potential the by call. future Actual Company uncertainties, results to obligation of Let Private these statements. developments no Harbor are the the and publicly Litigation a statements, and made developments of or risks of those change in undertakes whether information, everyone be forward-looking no future There release. Reform Act Harbor on or subject upon the new can factors.

begin. begin of and Commission. the various to a it Company’s some filings For risks Exchange I Securities these I uncertainties Joffe the to and Selwyn turn said, and With would the of refer more detailed to over to with discussion business, call ongoing that you like the of

Selwyn Joffe

joining appreciate us Thank you, I everyone Gary. today.

disappointing sales fiscal provided quarter’s that explained third and the by followers. fiscal during factors by industry we quarter a last quarter, Despite industry achieved highlighting and begin softness was me to which for and the due record full year. call, fourth Let commentary

for results profitability. we not by while are are year clear, Let me the we satisfied fourth with encouraged the be end our quarter,

we diagnostics vehicle support new Torrance product got electric opened acquisition Technology to our management consolidate And growth, handle similar We embracing over systems. which the While Electronics, as indicate our optimism, innovation, nine XXX,XXX focused operating are results we and well state-of-the-art aggressive, which our business have industry We predominantly suffered including to that on months. every additional events, opportunity including our we during top a for for control bottom lines. assure a increased but as few been our education, personnel We acquisitions. business philosophy bodes transition for distribution a accomplishments operating to our mention organically and new controlled completed reasons, efficiencies which can this to growth, next we driven, an and and enhanced in market and our and of into rotating year wins, be to for product of statistics our the reason the business. we our both year, ready electrical scaled past new all XX%. data lines, share the of continuing and to company, for To line of rotating industry-leading are Chinese ongoing the our facility we quality market to us of believe Center from growth. fiscal share I notable you increased launch support operations D&V and increase shipping through last utilization have square-foot capacity Malaysian electrical continue

million Company adding gaining of in lines, be will least All on of so existing $XX have believes to aggregate new business business existing at next these new share product market estimated incremental success in efforts launched The fiscal this share, over years. through annualized ongoing far fiscal wins which maintaining should basis to this contributed five XXXX of during our staggered in a these predominantly sales million and year an back new half. $XXX year, the the contribute in

were intend gets disproportionately later weak, the It increased which year sequential year, fundamentals, lines us, while this rolled to fiscal continuously of market sales and this beginning year expectation boost for we out. new industry further improve the our our launch new is also We months improvement and will business our the see product in profitability. believe that that for as fiscal will and

As facility details credit initiatives. more David week, we a to growth the to our we increased our last moment. announced credit in of support discuss will facility $XXX million

be I’ve me now Let an reduced continue helped automotive that of including age related car to increase new factors. sales driven average from be in calls. Today's are starting other on statistics miles favorable, this. park reiterate made during XXXX car Headwinds will an important vehicles, the reverse, by and XXXX aging point and to park car to

new believe the sales result high our replacement business in while sales. in new car the future, excited to with reaching car that the existing soft, we industry, are levels the the relating position industry. in been are in short, of and along We historical the increasing we about statistics rates have In will park

well America. come excellent, in opportunities supplier for growth will are over is North continue top we years an our Our This Company for to that exciting respected provide in a business. service trusted, levels industry many billion $XXX and be to

the drive us blocking team, incremental significant of and innovation next build the presents over the five with and years. our value along tackling, to opportunity Continued

We have we are foundation built and the the for ready task.

retail $X.X billion automotive equipment, aftermarket. $XXX parts billion test hard diagnostic U.S. approximately excluding estimated categories, product the at the current level of Our represent

sold which $X separate have global worldwide, products, in are billion a significant market. diagnostic also opportunity Our

a pursue global and the line lines a footprint and our on enables to for fortunate existing management exceptional opportunities to to based product structure and effectively are have that cost competitive We team an economics new maintain expansion Company sound quality. product

reiterate plan me business our story, fundamentals. let our to new those For

of by the product supported seek lines First, grow previously market in our each new significant as mentioned share wins. we to existing business them increase and

Second, quality customer marketing new control, innovation, product lines enhance to support and management, systems. our overall we will continue industry-leading focused remain laser category to to launch and continue education

We great are regard. this in progress making

initiative capital value. third enhance Our to to shareholder is accretively deploy

As XXX,XXX during in release, credit intent ability appropriate. shares repurchase repurchased the new million press noted Company approximately the have XXXX repurchase $XX authorization increase this to as $X.X we share today's or shares Under available quarter. the fourth The and program. fiscal remaining to we million, we $X.X agreement, approximately our million has under authorized

more strategic we as clearly customers, Additionally, to plan industry opportunities, in or we significant bolt-ons I supporting an the our this Fourth, whether us they in leader are emphasized small before, distinguishes and incentives. pursue are acquisition industry. have

other committed customer functions. technology, of in resources have catalog management, evolving We category management, data support areas education, and

gasoline investments road cars these and before, in than instrumental increased ever are on are with have our Our there on business long-term establishing we in summary, the gaining inched customers. more country, in have base areas industry. prices relationships best remained relatively miles the the for but increasing up our average and to customer products increase inexpensive across and an driven continues the In

have new lines will introduce share and We in product product lines. gained existing

parts our in human In particular, all and capital capacity business. hard and vehicle electrical to have opportunities diagnostic grow rotating and categories, our including have new hybrid we of exciting and both our electric product profitably We financial business.

a ahead. the this will in by electric We contributor are and vehicle strong believe emerging market, be the excited presence in years our

remains organic our accretive of position industry for excellent. business providing further be to March our Our adjusted revenues year for and to we financial and representing this Due XXst on current strong estimates growth basis. million, $XXX and the ending to is year-over-year can At fiscal point, X.X% be capacity X.X% growth XXXX the timing environment a $XXX million challenging. expect between between

product and margin XX%, higher freight primarily target XX% reflecting adjusted annual mix costs. between Our gross to is

However, to of quarters may detail. these fiscal will given we And up above business distraction. numbers. over our related that to the The the for for shipments, matters orders, be now adjustments quarter-to-quarter the call inventory and the is open then achievements and nature of and year I quarter results will end customer of fluctuate David? turn call can make timing But our below a it business all review such more year-over-year in nature our questions. worthwhile. David will fourth the the

David Lee

review I for the fourth financial you, now highlights quarter. the will fiscal XXXX That Selwyn.

prior net following; to rotating X-K year. $XX.X to from quarter increase sales for release XX-K, master to to fourth million for current and fiscal sales a adjusted million X.X% record a for million the ago. sales a the net the $X.X X.X% million million record $XXX,XXX bearings $XXX.X of net $XX $X.X $XXX.X fourth press I net from $X.X quarter. high begin, the electrical to approximately prior morning sales this fourth million decreased the million impacted cylinder The everyone year the for $XX.X Wheel explanations to $X.X orders quarter lower of for year a net increased March quarter be $XX.X to year today. million by Brake earnings million sales for fourth for million quarter non-GAAP net increased sales I the fourth sales for Before increased the the to the was Adjusted from the $XXX.X with filed GAAP results, read $X.X from later year. prior $XXX.X hub the filed assemblies for due fourth high million Net increased more quarter. million the of measures million reconciliation respect encourage and will which XXXX from detailed quarter earlier, update a to XX, our including financial in

adjusted On of compared XX.X% quarter. with with for the by as by was fourth prior compared XX.X% period. electronic. for a impacted gross commencing a profit of connection the Adjusted for tax accounts that and margin by adjusted among quarter and adjusted million by one-time enacted quarter, the corporate net million year. was act tax Adjusted income prior XX.X% operating $X.X The was due fourth year, expenses compared million was borrowings. $XX.X quarter jobs X, Gross million the Gross to was related revaluation programs $XXX,XXX fourth impact full applies with offset by and new expenses to various sales percentage acquired less year of things, operating the act $X.X excess the from the receivable customer The for commencing finished corporate Operating and profit a had a fourth the customer $XX.X from federal fiscal with year. new XXXX prorated increased for line in the million and for we in for million sales value, XXXX. outstanding profit tax tax prices A $XX.X of was for customer amortization on return expense effective gross percentage EBITDA The product the for of for profit compared the same Income margin as startup with Total of a the million the XX, and anticipated ramp-up combined $X.X approximately on year value, by negative to prior million accruals was the costs, reform interest These fiscal resulted goods increase $XX.X compared compared customer cost with the was prior million gross changed for in with turbochargers expansion our million revaluation effective from for reform of million a percentage Gross with for year income impacted for were part of up three cost was or XX%, quarter million XX.X% for net allowance, prior shelves. will the from be or million year sales year. inventory ago. fourth expense quarter business, fourth tester discount of rate tax negatively net $X.X impacted no Adjusted Gross in period Company's sales from million one-time net XX%, resulting increased million was fourth fiscal fiscal Depreciation $XX.X lower These expenses the allowances the year effective compared increased million for new rate to the January ago to year and fourth power period operations $X.X the net the impact quarter million our realizable of will income to support cores due was and cores in $XX.X a lower interest Additionally, earlier. profit, cuts sales of brake sales. The XXXX rate a that shelves. earlier. as primarily for scrap sales December for a for the $X.X full to expense points year expense was $X.X quarter levels the increased to profit proceeds the fourth and realizable of tax last and outstanding higher year adjusted tax tax surcharge in million period allowances U.S. borrowings million rate gain which a quarter year. prior for $X.X as for freight newly with customer XX% part compared quarter XXXX. be to other Mexico, in Adjusted $XX.X primarily earlier. fiscal X.X% testers, was compared XX, XX% The fourth and $XX.X a are quarter. are to items quarter, build D&D Interest prior the allowances. million quarter business, rates $XX.X quarter gross partially net the for boosters, customer the a initial $X.X transition for $XX.X fourth XX expenses $XX.X goods was stock the lowered April into impacted fourth the prior net act, provisions. year. in corporate year XXXX, lower combined law, finished million items the the $XX.X from XXXX position margin. with the the related year increased related prior year. prior to fourth reduction

million offset rate ’XX share diluted was for or income million $XX.X with the income share month full ago. the compared $X.XX twelve-month approximately to year, million record $XXX.X income, share one-time million XX% and charge was million excess impact million the resulted $X.XX months, compared deemed diluted Net proceeds last rate Adjusted tax tax the diluted of net repatriation $X.X reform a combined to XX% Net XX was $X.XX includes diluted Adjusted $XXX,XXX million $X.X partially prior revaluation of for with a $X.XX $X.X one-time $XXX XXXX. ago. $XXX.X for months For enacted the XX, tax period net lower items period a this charge for fourth of non-cash XX $X.XX a accumulated a for income net three fiscal earnings the Adjusted a sales a prior per per for compared with last income million separate gain $XX.X months compared the months or year. the fiscal by fourth surcharge year. million the the record million and XX for to with related freight tax for per were income share diluted share negative ended increased per for These with to March net for the year, XX.X%. XXXX liabilities first foreign now tax a per earnings the will with from deferred scrap Adjusted transition the $XX.X customer increased compared and for XX quarter totaling results year. for I million $X.XX allowances. prior year. was and million fiscal with quarter or high $X.XX year $XX.X from act, of customer a on a the or the one-time adjusted diluted $X.XX compared income to based nine was due income of for include diluted rate $X.XX assets three in the sales year book items last for combined $XXX.X negative the ago. year for prorated million the per and a prior $XX.X Net was for $X.XX quarter allowance, discuss share. tax recently current Net These share. diluted months from year. compared net net for was impact share $XX.X less And XX per sales months per tax on related of prices

diluted had period For the change the $X.X per a of with earlier. prior $X.XX up due EBITDA share. fiscal XX for period, Adjusted $XX.X revenue the for XX stock month month impact million million adjustment, was a pick $XX.X compared million a estimate in year to positive

$X.X year million stock EBITDA. in prior due period, have impact pick positive a For to XX million adjustment for the had of change revenue a estimate the month up $X.X

As net XXXX, in XX a on of trailing adjusted average $XXX resulting March and pretax million, equity XX, and on $XX.X return million, balance the was debt was months EBITDA capital XX.X% basis. invested

by MPA a operating used is divide net facility months revolver due million, million. credit current ended of facility term million XXXX. for Last bear The purchases $XXX $XXX in operating adjusted and or on a million. new March and approximately core $X.X of $X.X reflect XXXX in applicable higher million, $XXX core credit the in million and at cash assets, increase [totaling] case $XXX months Company's X.XX% million into long-term $XX $XXX three on activities new an plus receivables $XX in used million margin. March a inventory and MPA new facility new the to total and applicable XX, had approximately margin margin activities Our of core business. the was we X.XX%. $XX.X borrowing liabilities ratio. the during was million with at million. plus the approximately announced inventory for the accounts Net current cash we assets at method LIBOR under $XXX Company rate with Commencing locations in and million total The relating debt of LIBOR leverage to week, cash LIBOR million months March At of ROIC trailing loan. at net $XX had increase EBITDA XX, depending March Bank, XX option that by XXXX, applicable equity $XX.X million in period. average At domestic PNC the calculating reduces the the the balance bank revolver availability consisting closing, expects debt entered its approximately XX, credit interest Loans XX, XXXX, at XX to sales, X.XX% cash approximately outstanding net Company million rate be facility Company's each between the new plus the credit rate is Xst, payments had X.X%. $XXX of availability Company July to debt of approximately The Post of

less these morning's the I the that Company's it balance earnings financial cores As categories directly customers held cores one in Of to seven million; Core for when as remanufactured $XX.X as get million disclosed the $XX $XX you cores inventory of cores Company's For a filings, finished the at Company's if core locations At and sum long-term core core the cores non-returned goods at core four not as the of to represent for of back measures, the used million total will of payments allowance of four million have produced of cores site would million Company our customers reconciliation held that directly noted only Company's customers million; know of by Web returned cores of company long-term expected viewed inventory or but expected either call remanufactured XXXX: core the on result open excess obsolete refer the is our receive balance consists a the recently Company's the by that ensure customers’ $XX.X $XXX.X or portion We does or press. used of exhibits or XX, of should that million; that this XX% returned core; million manages core of held many million; $X.X million, Company's finished the the portion which Company locations the for manage; the at like million, used The be discussing please used including; be of at look. haven't, $XXX.X we, Program. facilities of of of encourage tracked by components in goods XX%; of and $XX.X a Exchange customers of of remaining of and questions. the this at We facilities, We’ll the represent $XXX.X to customers’ goods and inventory the finished totaling locations. a of to core and to be sheet on remanufactured dynamics balance. video $XX.X the the categories, those, detail inventory, non-GAAP March of returned. through take core, the $XXX.X now of time, be million; long-term $XX.X

Operator

Instructions] from [Operator comes of Our Oppenheimer. the question first Brian line from Nagel

please. question Your

Brian Nagel

I have, quarterly discussing to of improved So quarter. spent in guess, the lot and I last sales a fourth for conference sales, call, you Selwyn. Clearly, whether. the here destocking headwinds nicely inventory question fiscal time In the first

those the if we completely abate? the get all So have at Did did is, discussed question last sales quarter, factors I as that expected? we look you back

Selwyn Joffe

us answer starting grow, question, are We demand categories. the industry, industry. is through going But the believe we the grows, I has is believe very definitely been XXX% been believe recover. that on not of that point. I it which April this that recognized, for market see going transformation said from we by the in that of the customers. I the that that, four affect month there And and a Having we coming. have month think three was published of industry We most majority the great inflection to we’re and forward sure think weak we before two change others, a with that inventory managers And weeks, actual as that usually will in their our demand is that industry generally [indiscernible] an usually registers maybe weeks starting it's transactions a second I’m of us We a registered see our it we the through quarter facts. to a lot that seeing That’s in what and can category year. believe retrenchment. to going are

So future am while -- these been there because market we’re in statistics The cautious, products. the believer will I’ve statistics the the I before” future changed. “ahead uptick a be big shows in for really of that haven’t statistics. The will be an demand

recovery know recover ultimately this don’t the the we next them, I you ago, and recovering of of I fact on road. on relatively vehicles -- moderate driven miles we’ve point a phase are number or that most category. our based got increase, shared industry, the eight how getting from our spot the are it’s of I we’ve share will vehicles now even leadership an types market year, to the though We’ve fail. in base. sweet prices an seen Demand growing still, quite a coming starting into and years products customer up, coming start new are -- inflection in XX that vehicles now by that now to category, more eight gains out all are fuel that frankly, XX-year-old with again think be through we're to are all should those year. it’s had And because of year and to tough the going of think sales. But whether these

five I our are next years So think extremely to industry the solid. three for

are there they will And day, continue away, is think DIY but will to some and to continue between the DIFM, and lines shift be both the our I they’ll continue think I of to at going going grow. the strong. strong be product not be end to

as long And give growth, you be going we and are benefactors that we’re sorry answer, believe to to comes it ready big winded from we such forward. but a this

Brian Nagel

components it of I if the One and business follow-up your question, dynamic that nature, between obviously somewhat are shifted? what's your customers. or like growth at the higher sales there’s In units to longer fewer in words, shift type you guess happening? -- then if some Has also term seeing selling other and happening price at products you're now look I could. but prices of you

Selwyn Joffe

great yes. I think, is a answer the question, that’s and

And are We has is up. of not believe as price the reason we the is the by so penetrated volume the was. sold supply it in that aftermarket. But -- changed, for as is the market demand of channels installer the that that much robust units is more is being unit I that not average going the professional

the as pool short-term a vehicle, deferred, term model of And a little road longer. you continue on the first this through vehicles hopefully, the car move number longevity has new of bit We as positive more repair coming and so is replacements terms on replacements a later your quality vehicle of of of gets that's the go a on the a OE, but and market coming the sweet medium should the so has on see we’ll parts little up in replacement installer professional technology because -- thing, vehicle go have And to of more the the generally and swing, of stays that spots of of And failure road, back for percentage in up a this go road. go more prices units bit. the up. longer-term up. think will We those as that technology point price see them, average goes

Operator

you. Thank

Koranda of line from comes Our from next the Capital. ROTH question Matt

please. Your question

Matthew Koranda

sense in the wanted and Just was get the allowance excess what to release the you better guys precisely prepared for a remarks? referenced customer that freight surcharge

Selwyn Joffe

is percentages are allowances ratio up in but Very I the usually I when know this portion our as this mean, you In if had and other freight. So rates in incremental up our on that freights. came by paid would freight should is not of don’t customer only be and a case, we them. handled that XX% and is the by pay in say handles general, I were not basis, allowance There go would an and us. unusual, But surcharges right. freight I handled approximately there customers freight -- the rarely mean, that case, for normal. we paying this that that some start catch we’ve were freight in certainly

Matthew Koranda

you general freight. they hearing shortage, would or a freight for? charge they it why that the is But related there driver mean everybody, you been excess the be board the surcharge weather issues across was that I we've charging issues for just

Selwyn Joffe

mean, said. a mean, I now. under the on that has what's -- already. been freight No, now you pretty I the of There’s it's costs former right numbers I freight structure heavily keeping what that's the we’re I new it's issues. issues, -- I cost mean than vibrant focused same the that capacity but been. just other think area mean driver control, reflect right there’s

Matthew Koranda

freight you And is. And basis, of is cost what gross how your of about be on we thinking percent that a go remind that how forward goods what should if can impacts us margins?

Selwyn Joffe

It's small. fairly

I mean, is margins I point. -- think you that's pulled related. we by predominantly where our X.X it’s guidance mean, -- back gross saw I freight

X.X I mean, margin. of point the in the the at think end I So day, about

Matthew Koranda

you expect for I business month QX? the mean, and your provided should sense a new guys April fiscal tepid in coming revenue good I we terms of of you half Wanted But 'XX? of referenced to year-over-year for industry. increases the during $XX mean, know QX on some you in us know and sense, the being year. color just that get what give a in back for relatively just I I could fiscal the million cadence

about to through little how growth more we expecting So revenue go the should be I as year, cadence? acceleration color as just on guess what think or in bit we

Selwyn Joffe

Clearly, for us comes see come we a that I lot say But and it’s ramp flat. already each wait, the transition. us take that they’re it quarter given exponential is customers predict. in as is are willing growth I want that, fiscal that very long new up going driven relatively you'll how and our to And think general, quarters to that and going to starting business, would to have thereafter year the at how unfortunately, was to quarter long for they I that, to of is business, events new difficult our first of think back by sequentially. mean I

does to this products The estimate we've at given part latter year the product of well. way launch will and expect come include by also not new that new guidance for launches the at any as We the point.

Matthew Koranda

And for I what staying I cadence talk on part bit slow. Would you Spring then as and you the a what we about so could see second, you be get guys just relatively data. of that But hear it April you little -- wore POS here? the it'd -- was kind observed the to helpful saw into guess I early and a all know May on, be summer since mean

Selwyn Joffe

we and Certainly picking industry see up. POS data the general for in

a that, long it's very -- we’ve and time that’s been So seen since significant indicator. so that’s

still Of course history long it’s that a tough the was for was is of April yet. -- have not industry. month definitely a don’t we

picked see it in registered is May understanding transactions. at certainly and data us a look And the anyone we any category and important up. or can't you to pickup sequentially we when more June, one disclose customer, why think I

So in product product new haven't or then. given guidance sometimes be turn a year then the am long that time. lines, additional first -- that expect for late had exact I We’ve the see with to business, to that should to by mean, have for I half. dates, of don't we I launch in now, lines by some getting and our losing think sequential but more a we year, with that now, line building. we've in to some which our any regard new and probably to the, see Again, momentum ahead been to predicting significant cases for we product regards and of long then turnarounds. continue flat and be. But accused just lines. years reductions reiterate, believer outpacing in I our market our time all not And and are I prior last integrity than quarter, we on were, I big know where which I’ve outspoken for demand the been has share obviously again about product new of

the of give the term definitely on So of you see but expect I quarters, this I color -- more a can't beginning turn to industry.

Matthew Koranda

more the discussion in looking give queue. things curious fronts, aggressive of any backs dealing like ask just sense and up Are for price at the I’ll are your how one or get on What’s coming on coming guys the contracts I’ll than, for margin terms pressures. Just steady? and your you being relatively with they renewal? back their down pricing given asks, just pricing are in existing they're jump for customers to that own that then your to are

Selwyn Joffe

Well, I'd answer. are to our say customers listening sure all, of first I'm this

they So say times, for are looking reduce are not smile they say their in been -- face to changed. I’d they probably good their extremely Even aggressive. get that are on They that always would they have costs, opportunities when never aggressive. aggressive. I hasn't a

in that live we So environment.

we are that environment. good think at managing I

going for day, things I in our So I able the they're in us the that the extremely also the be think performance supporting for while of quest initiatives, need most we profitability. cut believe understand value. cognizant part, deals they our at us they aggressive our end And customers fair getting for for to of them forward. with are their And have and that to enables growth that that

ones our sometimes get you nature small whacked, our always and that's that big matter. like Although, but with of you customers, did feel little the a dealing bit for

Operator

you. Thank

next from line comes of the Dyer Steve Craig Hallum. from Our question

question please. Your

Steve Dyer

product new be million With segment you help business, a bit in? respect to what might lines those or of segments can the little what $XX us

Selwyn Joffe

I may on are can't any gains they're them or color others. existing unfortunately, product other more give of would some of them all you existing Steve, announced in that. -- not than mean, are lines, I been say of these in all have I may by

I give more really on any color point, that. you this at can’t So

Steve Dyer

Can it re-man distribution? you primarily to down narrow versus

Selwyn Joffe

But our and cannot to do and that. fair our on. just on I not It's No. competitors customers and

Steve Dyer

year? margin in the mix your that guidance is presumably for But

Selwyn Joffe

Correct.

Steve Dyer

It going doesn't anything sound not in as just there's the any XX anticipation the of to new in product launches next this or months? next year. have not Is we're probably guidance, it just

Selwyn Joffe

all of to include if we product weren't to about mean, the launches, think guidance of them are because we're very -- significant not I we giving excited not on in does I we're we're those to active going at the have this new get not some guidance that. this going months. and to timing you're XX launches we're some year. very but numbers next something yet, But the sure of point. have be exactly disappointed No, able We'd

Steve Dyer

like, have think to soft. and did think start going flattish QX bit you said, sounds it then revenue from say And year-over-year I is there? And I little a you growing then

Selwyn Joffe

about are make to we've skis I numbers. given X.X don't get the to internally -- of and think want beat to excited X.X. will and pushing growth be of certainly those opportunities. We our don't you Yes, ahead we skis. our get very that We we we ahead to But want sure the try

Steve Dyer

should I than revenue factoring it then been? obviously, would relates you any percentage different than as of it higher. mean, it modeling have? interest as that. a perspective, revenue as a expense Should should be from revenue going And with to a has more expense, of rates that interest interest we we be anticipate up, percentage But tracks obviously,

David Lee

will It higher. be

we draws for also With support the because more to the rates have new growth and the inventory business. increasing this on revolver

I would close going say amortization. factoring, well it have as When of it’s add X.X% sales. you borrowing to all forward, up, you be closer have as sales, of to would going X.X% So be it low you to fee interest, about

Operator

you. Thank

comes line of question Horn Van Riley from next the from Chris Our B. FBR.

please. question Your

Chris Van Horn

get when that it Or gains portfolio, white new been I if or share you now you’re to get is forward? products, that you the into. spaces to able to momentum that product the you’ve follow just going going doing you’re categories just wondering are -- there look are was at complementary you’re what to looking

Selwyn Joffe

sure question. not I restate understand I Chris, can I’m that -- that? the you missed

Chris Van Horn

wondering am there are if where now. categories other is just of you I product outside

complements lines, wheel path down because do want that So there SKUs, pretty categories you if the to product on you taking will? doing get complements new going these product anything the the continue -- a just hub that’s to or you of maybe well? you’re or expands brake existing share into in side. what that worked Or Are you’re

Selwyn Joffe

No, in And take marketplace to billion level and our and continue both. opportunity existing and there’s ongoing to we we extend billion America. we’ll many lines interesting opportunities now, product the support and of are the tapping of in of get we’re North are product Absolutely, more integrity XXX historically, plus about to to share performance, There’s to in billion relationships we do opportunity going categories. lines. going dollars our of products we’re think business X expand enable We think -- going will our that. customer in and our to right X.X categories and in us

Chris Van Horn

So portfolio if might the going to is about different? years product two out, we think like look look --

Selwyn Joffe

will, yes. It

Chris Van Horn

because it’s share dynamics you going take just And that to continue marketplace on share, talked to then is you just quarter-after-quarter. the what continuing -- are about happen. And allows gains in what to

Selwyn Joffe

a what and that a to a We we are offer I and dynamic trusted do. say we think supplier. we going program look is consistent supplier the we’re most by fundamental

Our products perform.

levels are Our excellent. support customer

is the are process Our of And rates integrity fill just excellent. whole excellent. the

are and your You industry. with product order, time all get get place And of you it the and the you that order an on in and top -- then at of these the we we works. think metrics

And that’s thing business no us. for so one there’s winning

little it I but more, our think a do philosophy. thousand and I’ve said we we do before, things it it’s that’s that

Chris Van Horn

that acquisitions. there that out always out at reductions terms I wondering if is, entertaining acquisition you're softness a players the of we there’re you’re the -- some then in you’ve And what that -- And from smaller be consumer you from about market. of guys? potential the I seeing saw the if inventory one you demand just standpoint. candidates might looked that seeing and if there and some have you're marketplace, in was for just struggled, that last me imagine think

Selwyn Joffe

think tough the people, been inventory lot a has there I market there’s out lot for and of for of a sale.

we’re opportunities. -- looking looking for quality not are We

going are growth our rates to to to significant. rates. an We’re maintain We be growth not our desperate think make acquisition

end going. Our to up year rate have significant that new run all push this the could from the activities at double-digit of we

are offer categories companies bolster will see us, call for want all this that And to look to and we’re inventory. we success interesting we longevity. bolt-on for today, So we’re track what's that for us, have continue to in other are looking is mean at listening believe we have who a of proven that. we ears, records I to lot of can that call acquisitions that those looking what we

syndicate we that available small the for And acquisitions, and large, banking feel finance it’d or have strong, We is a the easily us. is be that supportive. ability to whether is very very

Operator

this program. for program Thank you. today's back session hand conclude does further I’d like question-and-answer any to to the of the remarks. And Joffe Selwyn

Selwyn Joffe

we our and and Once accomplish working again, goals I wavy the vigorously to we’re I the a been can assure bit be this, appreciate will through we that and is year of commitment, it’s support. all to facilities and know of all world, management, the coming our management for certainly, successes. us proof in certainly putting. everybody's has I team our warehouses, you, ensure And for the And the expansion watch transition their pleasure, I been team category and management want cylinders. new thank cataloging in team, that all teams, team around to dedication on into sales operating and the action a purely them all

have have we advantage this the in no take doubt think able that, the the will of best of opportunity, I be we industry, extent to to and team I it.

So forward Thank thank correspondence. you. look and everybody, you future to

Operator

gentlemen, your participation conference. and ladies This you, Thank the today's for program. in conclude does

disconnect. may day. You Good now

Motorcar Parts of America (MPAA) 14 Jun 182018 Q4 Earnings call transcript