MPAA — what changed in the latest 10-K

Text added vs the prior filing · source: 10-K · 2026-06-08

• Leverage our manufacturing capacity and supply chain sourcing. We continue to focus on improving our manufacturing efficiencies and supply chain costs. This includes (i) leveraging manufacturing capacity to meet demand across all non-discretionary product lines, (ii) capitalizing on our existing ope…

Text added vs the prior filing · source: 10-K · 2026-06-08

• Geopolitical tensions in the Middle East, including direct or indirect conflict involving Iran, have had and could continue to have significant global economic and operational impacts. Such conflicts may disrupt global trade routes, energy supplies, and financial markets, and may lead to increased v…

• A variety of economic, political, and social conditions have led to adverse impacts on the U.S. and global economies and created uncertainty regarding the potential effects of such conditions on our employees, supply chains, operations, and customer demand including international trade disputes, dis…

• significantly increased costs and uncertainty in future costs due to higher tariff rates charged on components and finished goods by the U.S. and by other countries, and uncertainty regarding future tariff rates due to rapidly evolving trade policy in the U.S. and the potential for retaliatory tarif…

• Increased competition from manufacturers in China and other low-cost regions, including those with advanced automated manufacturing capabilities, could adversely affect our business, results of operations, and financial condition.

• We face increasing competition from overseas manufacturers, particularly those located in China and other regions with lower labor and production costs. Certain of these competitors are investing heavily in advanced automated manufacturing technologies, including robotics, artificial intelligence-dr…

Text removed vs the prior filing · source: 10-K · 2025-06-09

• A variety of economic, political, and social conditions have led to adverse impacts on the U.S. and global economies and created uncertainty regarding the potential effects of such conditions on our employees, supply chains, operations, and customer demand including international trade disputes, dis…

• significantly increased costs and uncertainty in future costs due to higher tariff rates charged on components and finished goods by the United States and by other countries, and uncertainty regarding future tariff rates due to rapidly evolving trade policy in the U.S. and the potential for retaliat…

• Changes in effective tax rates could adversely affect our results.

• We are subject to income taxes in a variety of domestic and foreign jurisdictions. Our future income tax liability could be materially adversely affected by earnings that are lower than anticipated in jurisdictions where we have lower statutory rates, earnings that are higher than anticipated in jur…

• Tax laws and regulations continue to evolve. For example, ongoing tax reform discussions in the U.S. and other jurisdictions could further impact our tax liabilities. Proposals to modify corporate tax rates, implement new taxation mechanisms on foreign earnings, or change existing tax deductions and…

Text added vs the prior filing · source: 10-K · 2026-06-08

• Management’s Discussion and Analysis of Financial Condition and Results of Operations

• During fiscal 2026, we continued to focus on strategic growth, improving profitability and leveraging our industry position within a rapidly changing competitive environment for non-discretionary aftermarket parts and solutions. Our solid financial position, quality products and customer relationshi…

• Gross profit increased 3.9 percent to a record $159.9 million;

• Net income increased to $12.4 million from a net loss of $19.5 million in the prior year;

• Generated cash from operating activities of approximately $19.2 million;

Text removed vs the prior filing · source: 10-K · 2025-06-09

• During fiscal 2025, we ceased manufacturing at our Torrance, California facility, reduced our headcount, and incurred certain transition expenses in connection with our on-going strategy to utilize our global footprint to enhance operating efficiencies and expect to realize future benefit from these…

• During fiscal 2025, we continued to focus on strategic growth, improving profitability, and leveraging our industry position as a leading non-discretionary aftermarket parts supplier and customer relationships. The following significant accomplishments support our optimism:

• Sales increased by 5.5 percent to a record $757.4 million, despite industry softness in the fiscal year;

• Gross profit increased 16.1 percent to a record $153.8 million;

• Gross margin increased 1.8 percentage points to 20.3 percent;

Text added vs the prior filing · source: 10-K · 2026-06-08

• We are exposed to changes in interest rates primarily as a result of the use of our accounts receivable discount programs and borrowing under our Credit Facility, which have interest costs that vary with interest rate movements. During the years ended March 31, 2026 and 2025, collections under our a…

Text removed vs the prior filing · source: 10-K · 2025-06-09

• We are exposed to changes in interest rates primarily as a result of our borrowing and receivable discount programs, which have interest costs that vary with interest rate movements. Our revolving facility bears interest at variable base rates, plus an applicable margin, which was 7.46% and 8.43% at…