Motorcar Parts of America, Inc. reported unaudited consolidated earnings results for the first quarter ended June 30, 2018. For the quarter, the company reported net sales of $92,565,000 compared to $95,519,000 a year ago. Operating loss was $1,217,000 compared to income of $16,093,000 a year ago. Loss before income tax expense was $6,292,000 compared to income of $12,779,000 a year ago. Net loss was $5,014,000 compared to income of $8,151,000 a year ago. Loss of $0.27 per basic and diluted share compared to income of $0.42 per diluted share a year ago. Non-GAAP adjusted net sales were $93,772,000 compared to $95,519,000 a year ago. Non-GAAP adjusted net income was $2,801,000 or $0.15 per share diluted compared to $8,310,000 or $0.43 per diluted share a year ago. Non-GAAP adjusted EBITDA was $10,093,000 compared to $17,236,000 a year ago. EBITDA was $369,000 compared to $17,132,000 a year ago. The adjusted net sales decrease of approximately $1.7 million was due to: Rotating electrical net sales decreased $2.5 million to $72 million for the first quarter from $74.5 million for the prior year. Wheel hub assemblies and bearings net sales decreased $206,000 to $17 million for the first quarter from $17.2 million a year earlier. Brake master cylinders net sales remained flat at $2.5 million for the first quarter. Additionally, the combined net sales for the first quarter for brake power boosters, turbochargers and testers increased $1 million to $2.2 million from $1.2 million in the prior year. There were no tester sales in the prior year. Adjusted operating income was $8.5 million for the first quarter compared with $16.2 million for the prior year. Net cash used in operating activities during the three months ended June 30, 2018, was $924,000. Excluding the $4.6 million refundable payments for core purchases relating to new business, cash flow provided by operating activities was $3.6 million for the first quarter.

The company expects replenishment, update orders and new business to gain momentum throughout the fiscal year 2018 with the company on track to report annual adjusted net sales at the upper end of its previously issued guidance of 6.5% to 8.5% revenue growth. The company expects adjusted gross margins for the year to be approximately at the mid-range of its guidance.

The company expects sales growth rate for the balance of fiscal 2019 and fiscal year 2020 to be in the double digits.