Motorcar Parts of America, Inc. (NASDAQ:MPAA) Q4 2023 Earnings Call Transcript

Selwyn Joffe: I don’t know if they’re different to what I thought. I can’t really — my thoughts evolve quickly on this. I think, look, anytime you’re looking for price increases with large retailers, and I mean, there’s always pushback, I think the opportunity to get fairer prices is better today than it was a year ago or two years ago. I think that in part depends on really the rationality of our competitors, which I think will have similar challenges with financing the inventory and the payables of our main customers. A lot of it will depend on alternatives. I mean they’re driven, obviously, to drive the working — negative working capital. And a lot of it will depend on their ability to get fair pricing in the marketplace for their products.

And rational competitors, including Chinese, including the Chinese, which have always been a wild caught. But look, I think the industry realizes that the amount of financing being supplied by the supply chain is significant, and that at some point, the consumer has to pay for that. I mean, our customers are not going to pay for it, but they should pass it on. And so hopefully, we get back to a rational equilibrium, which I think we’re getting close to.

Jeff Bronchick: Thank you very much.

Operator: We have no further questions in queue. I’d like to turn the call back over to Selwyn Joffe for closing remarks.

Selwyn Joffe: Great. And thanks for the great questions. And in summary, notwithstanding the headwinds I discussed this morning, we’re excited about our future as I just had mentioned. We’ve built a solid foundation both to — both top and bottom line growth from our existing product lines, supported by strong demand for replacement parts and clearly an aging car park in the sort of recessionary environment we’re in. We are committed to enhancing cash flow and profitability as our strategic initiatives evolve. In closing, one more time. We have a great — we have great team members, and I appreciate their dedication to the company and our customers. We appreciate all your continued support, and thank you again for joining us for the call, and we look forward to speaking with you when we host our fiscal 2024 first quarter call in August and at upcoming investor conferences. Thank you.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.