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Motorcar Parts of America expands sales team ahead of AAPEX

Published 31/10/2024, 14:48
MPAA
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LOS ANGELES - Motorcar Parts of America, Inc. (NASDAQ:MPAA), a leading provider of automotive aftermarket parts, has announced strategic changes to its sales team, including the promotion of Craig Meadows to assistant vice president of traditional sales and the hiring of Jake Boggs as a director of traditional sales. These appointments come as the company prepares for its participation in the upcoming Automotive Aftermarket Products Expo (AAPEX) in Las Vegas.

Craig Meadows, 47, brings over 28 years of experience in the automotive aftermarket to his new role. He joined Motorcar Parts of America in 2022 as a director and has now advanced within the company. Jake Boggs, 44, also joins the team with a strong background, having more than 20 years of experience in traditional sales, digital marketing, and supply chain management, including involvement with the Alliance Product Committee, CAWA, and Pronto-Network Product Committee.

The company has expressed confidence in the growth of its brake-related product line sold under the Quality-Built brand, which continues to gain market traction. Ron Aparicio, vice president of traditional sales at Motorcar Parts of America, stated that the team's expansion reflects the company's optimism regarding the traditional market and its intention to capitalize on industry position and customer relationships to increase market share.

Motorcar Parts of America specializes in the remanufacture, manufacturing, and distribution of a wide range of automotive aftermarket parts. These include alternators, starters, wheel bearings, brake components, and diagnostic testing equipment for various vehicles across North America. The company also has an electrical vehicle subsidiary that designs and manufactures testing solutions for electric power train components, catering to both the automotive and aerospace industries.

The company, which operates facilities in several countries, including the United States, Canada, Mexico, Malaysia, China, and India, aims to further strengthen its market presence through these strategic team enhancements.

This announcement is based on a press release statement from Motorcar Parts of America, Inc. and comes ahead of the company's participation in AAPEX, an important industry event that showcases the latest in the automotive aftermarket industry.

In other recent news, Motorcar Parts of America Inc. saw a 6.4% increase in net sales, reaching a record $169.9 million in the first quarter of fiscal 2025. Despite facing a non-cash mark-to-market foreign exchange loss and severance expenses, the company remains optimistic about its growth potential. This optimism is reflected in projected sales growth between 3.9% and 6.6% year-over-year, with an operating income target set between $62 million and $67 million for the fiscal year.

At the company's Annual Meeting of Shareholders, all nominees were re-elected to the Board of Directors, including Selwyn Joffe, David Bryan, Joseph Ferguson, Philip Gay, F. Jack Liebau, Jr., Jeffrey Mirvis, Anil Shrivastava, Douglas Trussler, Patricia Warfield, and Barbara Whittaker. Ernst & Young LLP was ratified as the company's independent registered public accountants for the fiscal year ending March 31, 2025, reflecting the shareholders' confidence in the firm's auditing services.

The shareholders also approved the compensation of the company's named executive officers on a non-binding advisory basis, as part of the "say on pay" provisions. Furthermore, the First Amendment to the Motorcar Parts of America, Inc. 2022 Incentive Award Plan was approved, which is expected to govern the company's future incentive awards. These recent developments underscore the company's commitment to transparency and shareholder engagement.

InvestingPro Insights

As Motorcar Parts of America (NASDAQ:MPAA) strengthens its sales team and prepares for the AAPEX event, investors may find value in examining the company's financial metrics and market position. According to InvestingPro data, MPAA's market capitalization stands at $103.71 million, reflecting its position in the automotive aftermarket sector.

The company's revenue growth of 7.23% over the last twelve months indicates a positive trajectory, aligning with management's optimism about market opportunities. This growth is particularly noteworthy given the company's focus on expanding its brake-related product line and traditional sales channels.

InvestingPro Tips highlight that MPAA is trading at a low Price / Book multiple of 0.4, suggesting potential undervaluation. This could be of interest to value investors, especially considering the company's strategic moves to enhance its sales capabilities and market presence.

However, it's important to note that MPAA has not been profitable over the last twelve months, with a negative P/E ratio. Despite this, analysts predict the company will return to profitability this year, which could be a positive sign for investors looking at the company's future prospects.

For those interested in a deeper analysis, InvestingPro offers additional tips and insights that could provide a more comprehensive view of MPAA's financial health and market position. There are 6 additional InvestingPro Tips available for MPAA, which could offer valuable perspectives for investors considering the stock in light of its recent strategic announcements.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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