Q4 2021 Motorcar Parts of America Inc Earnings Call
Good day. Thank you for standby welcome to the Mira car parts of the Americas fiscal 'twenty 'twenty, 1 and fourth quarter of year end conference call. At this time all participants are in listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time, if anyone should require assistance during the call.
And please press Star then zero on your Touchtone telephone and as a reminder of this conference call is being recorded I would now like to turn the call, but you got rid of Maggie Meyer Investor Relations. Please go ahead.
Thank you. Thank you Charlie Thanks, Thanks, everyone for joining us for our call today.
Before we begin I turn the call over to sell and Johnson, Chairman, President and Chief Executive Officer, and David Lee The company's Chief Financial Officer.
Like to remind everyone of the Safe Harbor statement included in today's press release the <unk>.
Securities Litigation Reform Act of 1995 provides the safe harbor for certain forward looking statements, including statements made during today's conference call.
Such forward looking statements are based on the company's current expectations and beliefs concerning future developments and.
And their potential effects on the company there can be no assurance of the future developments affecting the company will be those anticipated by motorcar parts of America.
Actual results may differ from those projected and the forward looking statements. These forward looking statements involve significant risks and uncertainties some of which are beyond our control the company and are subject to change based upon various factors. The company undertakes no obligation to publicly update or revise any forward looking statements whether we.
As a result of new information future events or otherwise for a more detailed discussion of some of the ongoing risks and uncertainties of the business I refer you to the company's various filings with the Securities and Exchange Commission.
With that I would like to begin the call and turn the call over to sell and.
And for some remarks, thank you Gary I appreciate everyone joining us today for a year and coal and hope everyone is safe and healthy and starting to Ventura and his vaccinations of more readily available.
Added to be able to resume the personal interaction with our customers and the team members.
As noted in this morning's press release, we achieved record sales for our fiscal fourth quarter and full year, notwithstanding the sharp drop and the first quarter of fiscal 2021.
Equally significant net income was up sharply for both periods and the new fiscal year is off to a strong start with strong demand for our products.
I will now address our company's current position on the outlook for our business and then David will then address our financial results in detail.
The outlook for the hard parts replacement continues to be positive and we're excited about the company's position and the market and.
In addition, the electric vehicle market places fast evolving and on electric vehicle subsidiary shipped substantially benefit from the momentum.
Let me provide some color to these dynamics.
Demand for automotive hard parts is strong as drive has returned to the roads the availability of vaccines across the countries clearly helping.
Is that people are getting back to more normal routines and relying on the vehicles for everyday activities and vacation travel.
Overall, we are benefiting from our investments from multi growth platforms.
<unk> parts business, we expect each of our product lines to grow and we are focused on meeting the increased demand in all categories.
Our newest product on brake calipers and continues to gain traction and we are focused on meeting the increasing demand and the brake category.
The market for our current categories for internal combustion engines represents more than $6 billion at the retail level.
There are approximately 287 million vehicles on the road with an average age of 12, 1 years and the United States of alone.
Which fuels, our optimism about the growth opportunities and our aftermarket hard parts business.
This will fuel growth and the aftermarket parts replacement the industries well beyond 2030.
You've heard me say before that people are keeping the vehicles longer and recent months news reports of the indicated that used car sales at record levels, resulting in increased miles driven by <unk>, how kind of vehicle.
Obviously, this bodes well for the aftermarket parts replacement industry and are non discretionary product offerings and in fact, we are seeing.
Demand increased.
As these vehicles age the rate of replacement of parts increases substantially for example cars and those areas of 3 of our age group have a replacement rate for alternators of $2, 42% compared with $6.6 5% and the 12 year and above age group.
The new car sales should return at some point, we expect to benefit because used car scrap rates.
Lower than the new car sales, resulting in an increase of the average age and the number of cars on the road generating further increases in demand for parts replacement.
Of course, and the new car sales will drive aftermarket play true after market parts replacement in the future.
As I emphasized last quarter, our facility expansion and Malaysia is now complete and we are focused on utilizing this increased capacity and productivity across multiple product lines to reduce dependence on the outsourcing.
While COVID-19 and related supply chain challenges continue and Malaysia and throughout Asia, we see tremendous opportunities to leverage our presence in Malaysia and support our customers.
And Sean.
Our strategy before and since the pandemic has been to leverage our significant channel relationships for aftermarket parts and.
On the office superior parts and solutions to our customers and consumers.
We are equally excited about our opportunities and the EV space as strategic positioning of the EV space is gaining momentum.
For example, let me highlight several exciting developments, we recently announced.
Orders from 2 global electrical global electric vehicle manufacturers in China, and Europe for advanced power of hardware and the loop test beds and the inverted test systems.
And the establishment of the collaboration agreement with National instruments also known as the Ni, which has a strong offering for development and production of electric vehicles.
It will seamlessly integrate <unk> technology supported by global sales force to market, our products and technology.
We also recently announced the opening of the first state of the art technical centers and the Detroit area.
Providing automobile manufacturers with the convenient location for the electric powertrain testing solutions and the onsite engineering support.
We also announced the development program and other and extremely fast EV charger spearheaded by Delta of electronics automotive divisions and sponsored by the U S Department of energy that utilizes our emulated technologies.
In short we believe the EV subsidiary provides us with meaningful opportunities for growth for <unk>.
Complementing our leadership presence within the automotive and hard parts market.
We believe both of these businesses provide our shareholders with exciting opportunities as transportation needs and driving options evolve.
And showed all of our initiatives continue to enhance our position as a valued premier supplier of automotive aftermarket parts of North America, and the rapidly emerging electric vehicle and aerospace markets.
Certainly there are challenges facing the after market the industry today, including supply chain trades and the other pandemic related headwinds and.
We continue to experience supply chain challenges for the steel semiconductors and packaging dimension of few items.
We think piece of our short term issues and we're working hard with our global team to manage production of working with our suppliers and logistics providers to address the challenges.
Market dynamics, and a rational economics, including price increases supported by our customers will contribute to overcoming these challenges as we continue to focus on taking full advantage of.
The strength.
In summary, our entire company is well positioned for sustainable top and bottom line growth for parts and solutions that move our world today and tomorrow.
Our footprint for the future has become a reality, where we are now focused on benefiting from this move and the falling ways.
Increased sales due to higher capacity.
Better gross margin is due to economies of scale from consolidation of operations, including the brake caliper launch pricing initiatives.
And the other product line transition activities and.
In short we're excited about the continuing growth opportunities and utilizing our highly efficient new footprint.
Yeah.
As noted in today's earnings release, given the ongoing global pandemic and near term related considerations. The company believes is still not prudent at this time to provide specific annual sales and gross margin guidance. We will reevaluate this policy as fiscal 'twenty 2022 evolves.
However, we are currently experiencing strong customer demand for our aftermarket parts and our EV solutions.
I will now turn the call over to David to review the results for the fourth quarter and fiscal 2021 year and think.
So and to begin I encourage everyone to read the 8-K filed this morning with respect to on March 31, 2021 earnings press release for more detailed explanations of the results for.
Information about the items that impacted the result, the exhibits 1 through 5 of the press release.
Let me take a moment to review the financial highlights including record sales for both our fiscal 'twenty, 1 and fourth quarter and fiscal year.
Net sales for the fiscal of 'twenty, 1 and fourth quarter increased 11, 5%.
$168.1 million from $150.7 million for the same period a year earlier.
Gross profit for the fiscal 'twenty, 1 and fourth quarter was $32.1 million compared with $36.6 million a year earlier.
Gross profit as a percentage of net sales for the fiscal 'twenty, 1 and fourth quarter.
Was $19.1 per cent compared with 24, 3% of your earlier.
Gross margin for the fiscal 'twenty, 1 of the fourth quarter was negatively impacted by an aggregate of 6.4% by the following.
2.8% for brake caliper of startup costs and relocation and transition expenses.
1, 4% due to higher freight costs and expenses related to Covid.
1, 4% non cash core premium amortization and packing sales.
6% non cash revaluation of cores on the question Michelle.
And 2% customer allowances related to new business and the impact of tariffs.
Let me provide a little more color.
To the factors impacting gross margin.
Great caliber of startup costs and relocation transition expenses are part of our footprint expansion in Mexico. As you may recall, we completed the construction of our buildings and Mexico This past fiscal year.
And of focus on increasing production of brake Calipers, Inc.
<unk> for sorting and related activities can the current and future demand, we anticipate that these costs and spin expenses will diminish significantly and the first half of the current fiscal year.
We also incurred higher freight costs due to a free shortage of shortage of freight caused by Covid and Selwyn noted earlier.
With regard to additional corporate related expenses, we have address health and safety initiatives and also impacted gross margins. Fortunately these opioid related expenses had been slightly decreasing.
Core premium amortization and revaluation of cores on question Michelle that impacted gross margin are non cash non economic.
For a summary of items impacting gross profit. Please see exhibit 3 in this morning's earnings press release.
We also incurred higher costs for raw materials and supplies.
I should also mention that we experienced offshore wage inflation, which further impacted results.
We have the mitigated these expenses along with higher freight costs with price increases that have been implemented and will be realized and shortly.
Total operating expenses decreased approximately $15.4 million for the fiscal fourth quarter on a year over year basis.
This decrease includes $17.1 million of foreign currency related net gains, which are non economic and related lease liability of your measurement and Mexican peso of forward contracts.
This was partially offset by higher expenses, such as Covid related expenses of 520000.
Interest expense was $3.7 million for the fourth quarter compared with $5.5 million last year. The decrease in interest expense was primarily due to lower interest rates and lower net debt.
Income tax expense for the fourth quarter with 939000, compared with income tax benefit of $2.8 million for the prior year period.
Net income for the fiscal 'twenty, 1 and fourth quarter was 835000 or <unk> <unk> per diluted share.
And with a net loss of $8.2 million or <unk> 43 per share of a year ago. Prior.
Prior year fourth quarter results include the unfavorable foreign exchange impact of lease liabilities and forward contract totaling $27 million.
Additional details of items impacting net income our and exhibit 1 and this morning's earnings press release.
Net sales for fiscal of 'twenty, 1 were $540.8 million compared with $535.8 million a year earlier impacted by a sharp drop in demand in April due to the global pandemic in.
In addition, net sales were impacted by current pandemic and supply chain challenges. This.
This was partially offset by the benefit of $12.8 million due of Tory due to a realignment of inventory and 2 customer distribution centers with expected future sales benefits as product mix changes.
Gross profit for fiscal 'twenty, 1 was $109.5 million compared with $118.4 million of you earlier.
As part of it as a percentage of net sales for fiscal 'twenty, 1 was 22% compared with 22, 1% of your earlier.
Gross margin was negatively impacted by 5.5%, including brake caliper startup costs relocation transition expenses and higher costs related to COVID-19, as I previously discussed.
Assembly of factors impacting gross profit alright, and exhibit spore and this morning's earnings press release.
Net income for fiscal 'twenty, 1 was $21.5 million or $11.11 per diluted share compared with the net loss of $7.3 million or <unk> 39 per share on a year ago.
Additional detail of items impacting net income earnings of the queue and this morning's earnings press release.
Net cash used in operating activities during the fiscal year 'twenty, 1 and fourth quarter was $16.4 million, reflecting working capital requirement to support the company the record sales and inventory increases for anticipated business growth and fiscal 'twenty 2.
And this compared with the cash provided by operating activities of $23.2 million for the prior year prior fiscal year fourth quarter net.
Net debt was $88.9 million at March 31, 2021, compared with $67.6 million at December 31.2020.
Net cash provided by operating activities during the fiscal 'twenty, 1 was $56.1 million.
Compared with net cash provided by operating activities of $18.8 million for the prior fiscal year.
Net debt during fiscal 'twenty, 1 was reduced to $88.9 million at March 31, 2021 for.
$126.5 million at March 31, 2020.
And you know there are various methods to calculate return on invested capital for our purposes, we calculate ROIC.
By taking operating income and adding back non cash expenses and certain 1 time expenses. We believe this metric considered together with GAAP measures provide useful information to investors and to management regarding the company's return on invested capital and short we take this metric which was approximately $77.1 million.
For the 12 months ended March 31, 2021, which included an extraordinarily weak fiscal first quarter as a result of the COVID-19 shutdown of cost of country and divided by the average equity and net debt balance of $403 million, resulting and a 19, 1% pretax return on invested capital.
We are just starting to realize the benefits of of spending our Mexico operations and the launch of our new brake categories with the expectation of increased returns from both new and existing product lines.
And this should result in higher ROIC.
And the benefits of our strategic expansion on more fully realized.
During the fourth quarter ended March 31, 2021, the company repurchased $1.1 million of shares and average price of approximately $20.70.
Under the authorized share repurchase program as of March 31, 2021, $16.8 million of the 37 million common stock authorization has been repurchase and $20.2 million remain available to repurchase shares.
As I mentioned at March 31, 2021 on net debt was approximately $88.9 million total cash and availability on the revolver credit facility was approximately $140.8 million at March 31, 2021 based on the total of $238.6 million revolver credit facility and status of certain.
<unk> at.
At March 31, 2021, the company had approximately 848 million total assets.
Current assets were 423 million and kind of liabilities were $326 million.
We recently announced that the company extended its credit facility with PNC Bank for 5 years through May of 2026, including amendments, which further increase the company's strong liquidity base for.
The reconciliation of items that impact of adults and non-GAAP financial measures.
Please refer to exhibits 1 through 5 and this morning's earnings press release.
I will now open the call for question and someone will then provide some closing remarks.
Ladies and gentlemen, if you have the question at this time. Please press Star then the number 1 key on your Touchtone telephone and for your question has been answered or you wish to be maybe your thoughts from the Q price the turnkey.
Your first question is from the line of Scott <unk> with C. L. King Your line channel Obi.
Okay.
Hi, good afternoon, guys and thanks for taking my questions.
And I thought.
On.
Yes, coming out of the third quarter of those a fair amount I think it was like $17 million worth of sales and kind of got caught up because of some of the supply chain issue.
Scott you faded out I'm not sure if you're on.
Yeah.
Q4 into Q1.
Yes.
And you said it but I guess your question and I will restate a day.
And about the the.
And the deferral of the revenue that we talked about.
We will continue zone.
Okay. That's the flow of continues on I mean, theres supply chain challenges and.
And the industry and there are significant deferrals. So the strong revenue is.
And this despite the fact there is still continued deferral.
Got it could you tell us how much is being deferred or at this point, it's just kind of be an ongoing.
And it's an ongoing thing it's going to be and ongoing thing right now Scott. It's unpredictable, it's hard to measure because of some gets caught up and then additional deferrals come in.
So I think it's just the fundamental right now and the industry I think the whole industry is experiencing this.
But the industry needs of these parts from 1 of the supply chain catches up we should catch that up.
Yeah.
Got it and just in general I know that we kind of look at for your customers and look at the retail so for their spare.
Comparable sales numbers, they just continue to improve.
Can you talk about and what Youre seeing and do it for me versus do it yourself I know the miles driven.
All of them haven't definitely improving and continually just what are you seeing the strength of the pack.
And that's our strength of you're seeing right now.
Yes, so it started out the big recovery and the DIY on the boom and the DIY, but we're now seeing it and the <unk> as well.
You bet.
And just a lot more people relying on the vehicles.
Used cause of parking lots of it are now being driven on the professional install is a busy just come off of a couple of professional install of conferences.
And the.
Theyre doing very well and professional stores the happy so it's both right now.
Got it and just the last 1 before I jump back in the true I appreciate that.
A lot of volatility right now, hence the no guidance, but is there anything you can give us just as far as <unk>.
High level expectations.
The expectations of growth and 2022.
And just from a sales perspective margins earnings just some high level data that we can kind of run with for the trajectory of the business.
We expect our margins to be accretive as the year progresses based on the things we mentioned in the call.
The price increases and hopefully we will have more stability of the supply chain.
The supply chain is very unpredictable as you know the ship stuck and forwards.
The product is not being manufactured as re outbreaks of Covid and southeast Asia.
So very significant unpredicted the demand is.
And as predictably very strong. The question is is the supply of going to be strong enough to keep up with the demand.
We are on a great position, if we can get enough inventory to meet to meet on demand, where and a great position, but we'll have to see how it unfolds over the next few months.
Got it thanks a lot.
Your next question comes from the line.
Your next question concerns the lineup and Brian Nagel from Oppenheimer. Your line is now open.
Hi, good afternoon, good morning, I guess.
Quarter to quarter from Washington, Thank you. Thank you.
My first question I think it's a bit of a follow up for the prior question, but what I'm asking is and I guess more for Bob.
All of our standpoint, but that's.
And that's the economy market by market has been opening now.
And we're heading towards the hopefully post Covid world.
<unk> seen as far as the demand trends and again it wasn't a lot of getting that is for.
Some of your business, obviously, we do see the very strong results at your at your retail partners, but what are you seeing that could basically help us think about the sustainability of this demand, particularly relative to pre pandemic levels.
Yes, what.
And what's interesting is.
And again for that announcing specific customers ahead of us.
The cross section of the conversations with various suppliers for the professional installed market.
Some of them of quoting 70% gains over the prior.
The pre COVID-19 revenue levels.
Some of it's hard to explain to be honest with you, but I think we've been talking about for euros of statistics.
Where the average cost of our aging.
This morning's newspapers will cover the everywhere.
<unk> went from 11.9 to $12.1 of the last year on the half.
The number of causes up on the road.
And on new car sales, a little slower than they have been.
But I think of lot of these used cars of getting back on the roads cause of that were.
Perhaps in the car population that werent being driven so we see a resurrection of miles.
It looks like the fundamentals of really strong whether the sustainability of the.
And current demand levels are.
Record.
Is that sustainable I don't know that but I don't anticipate it being softer.
And then price.
And then on pre Covid levels.
Do see more depend on some of the vehicle and even.
And just people spending more money on the cross across the board.
And that's very helpful. I think hopefully that just gives you color, Brian and I don't know I cant give you any stats because I don't I havent seen any out there but.
But the color wherever I turn and whatever conversation I have in the marketplace and I'm talking much more granular with the with the consumer sort of statistics.
Just people.
The demand is up.
It's a very helpful. My second question I have and there's all sorts of the bigger picture of nature of it.
And we've talked a lot about the.
A portion of the part of your company to EDI and talk about Walmart and today about it and.
And what point does that become a real needle mover for NPA.
And this EV push.
I'll tell you I expect the 100% growth and their business this year.
And again Thats not on.
And move the needle but.
We've got some exciting things that the.
And the works.
On.
And we haven't announced and publicly so I'll stay away from any specifics, but we think that there is an opportunity.
To keep that growth rate going.
It's a little more unpredictable because of too.
2 reasons number 1 on the global basis, its a brand new market, that's evolving and <unk>.
For 2 of its brand new for us so.
So we're a little bit and.
The learning mode.
And look and listen mode.
But the indications for what we have a very positive.
Got it and then just 1 final question for me just on them.
Catch of you've talked about this in your prepared comments, but I was looking at the consumer broadband and placed the mass of topic right now.
What are you seeing in terms of your business as far as inflation.
No other from your cost perspective.
Or would you potentially pricing changes you've made your customers and any reaction to that.
Yes.
I will tell you on margins are lower than the.
For a little bit this quarter, even when you look at the various considerations at effect of it and so we've implemented price increases.
And we're 1 of everyone. That's implemented price increases costs are up.
And.
It's my expectation and there'll be some of the consumer is going to have to pay a little most of their parts and that's real cost.
And it's real it's real inflation to be honest and.
The is no choice for many of the industry is taking price has taken the price increases.
And.
I think we could sort of keep keep our eye on the producer price index and see how that evolves, but.
For now and the outlook is fairly inflationary and certainly as and as the company.
And we intend to keep to keep our eye on on pricing.
Well. Thank you congrats again.
Thanks, So much I appreciate the questions and thank you.
Your next question comes from the lineup of <unk> with B Riley Your line is kind of lumpy.
Hey, good afternoon, and thank you for taking my question here.
Seldon and it looks like you are.
And it looks like Youre building working capital and clearly that's the kind of it looks like a drag on the operating cash flow, so and you're highlighting you have inventory increases for the anticipated business growth and in this fiscal year and I. Appreciate you know kind of not providing guidance here.
And in the near term and you'll reevaluate that but help us understand the magnitude of inventory growth expected and also linked to that if you expect the business to generate free cash flow this fiscal year.
Yes, well I'll start with the.
Free cash flow, we definitely expect free cash flow. This year it will come a little later and the yield as you can see we invested.
Fairly significantly and.
And and inventory and the quarter, our receivables of growing.
Because of the increased sales.
We expect pick of demand for the year, I mean, Sarkis I'd love to give guidance I'm just concerned of the.
And predictability of when this is all going to happen and how this is kind of unfold I mean, we've got.
I would say over 1 million units tied up between stuck and ports with a b and the United States of ports of whether it be in Asia and courts.
And.
Accidents that have happened on imports.
We have the closures and Malaysia right now the mandatory 2 week closure. So it's very unpredictable, but what what is predictable was that the demand is there.
And what's unpredictable is how fast we can meet that demand.
Having said that.
We are meeting most of it and we do.
Doing well, but we could be we have strong numbers, but these numbers could be even much stronger and based on demand. If we could meet all of the demand.
So I think inventory should plateau.
The borrowing.
Barring.
And some additional big ones, which we always look for.
And I'm and I'm confident we will generate positive cash flow for the year.
Scope.
And that gives you color I'm on I'm not sure of is very specific.
Yes.
That's helpful I think and.
Another interesting point is you you said inventory should plateau of barring some big wins I guess can you maybe talk about which categories you're may be gunning to win some more business. You know I think your traditional kind of core business that we're aware of right probably more of a market share story, but from the break.
The person and related products and certainly the diagnostics. It seems like there could be a little bit more of a and open and larger opportunity I guess and.
The comments on magnitude of of what you are pursuing there.
Yes, I mean, I would say the first of all the categories have big opportunities for growth.
I think brake calipers, and we'd probably looking at 70% to 80% growth for the for this year. So a lot going on there and we are busy ramping up.
The inefficiencies and the ramp up and the beginning but.
Lots of opportunity there and on lots of them and all the other product lines.
So it's a tough market out there as always.
Hard to predict but we feel again pretty good about <unk>.
Demand.
We just we just again and more time, we've just got to make sure we can get the supply and.
So whatever we can get our hands on on inventory, we're getting our hands on and we've made.
If we kind of make a mistake now are we going to make the mistake on having more inventory than less.
Just because of the supply and I don't know whats going to happen.
The.
The it has the seems to be a resurgence of the COVID-19 issues and Asian countries.
And certainly India and Malaysia.
Thailand and Taiwan.
The cities in China.
And we'll sort of.
Having some type of resurgence, but we've got our eye on of closely and.
And are expected to be of positive still but.
Giving guidance.
The difficult right now.
Okay, No worries I'll hop back in the queue. Thank you.
Thank you. Thank you.
Your next question comes from Matthew Koranda with Roth Capital. Your line is now open.
Hey, guys. This is Mike zebra and on for Matt Koranda. Thanks for taking my question.
First could you guys provide some color on the revenue build up for the quarter and maybe talk about the momentum of you're seeing and the rotating electrical category specifically.
So I can start out with the debt.
The allocation of the sales by product line and this will all be available and the 10-K filed later today for the fourth quarter of about 67% and was rotating electrical wheel hub for about 19% for a corrugated products was 11% and other products was 3%.
Okay great.
And in the fourth quarter, we saw new product and startup costs at $5.2 million assuming that the Mexico move is mostly complete should we expect this line item to move to zero and and if so how soon.
Good question, so as I prepared and the as I said in the prepared remarks, and this new fiscal year and.
And theyre going to be diminishing significantly so it will definitely go down to zero a little bit later in the fiscal year.
Great. That's all thanks guys.
And thank you.
Once again, if you would like the question you May press the star 1 on your telephone Keypad. Your next question comes from the lack of lineup net gained with data and capital management Your line Caleb.
Great. Thank you that the tightening capital imagine so wanted to ask I know you you just highlighted that you expect brake calipers to grow at the 60% to 70% rate this year.
And just wanted to take a step back and ask if we were to look at the the biggest dollar revenue growth drivers as you look at what you expect here this fiscal year, what product lines of our offerings do you expect it to be the the biggest dollar driver and revenue growth.
Again, it's going to be hard to predict for the year, but and we certainly again and I mentioned, the brake calipers, and I mentioned, the 100% growth and on EV business.
And we expect solid growth and the other categories.
Okay.
Is there any category that you're not expecting growth and at this point and time Selwyn.
No.
Okay. That's.
That's helpful. Thank you.
And the rehab for your question at this time presenters. Please continue.
Great.
Well I appreciate everybody's interest.
I want to the cycle of our team members firstly for their ongoing commitment and customer centric focus on incredible service during these challenging times.
The health and safety of our top priority and Im excited about the number of people that are being vaccinated and especially as we move into some of the third world countries that we are and.
We remain extremely vigilant to protect our global team from this horrible virus and we're working diligently to get even more of our employees and their family members vaccinated.
In fact, this Friday June 18th we will be hosting a pfizer on mobile and vaccine clinic, which is open to all our employees neighbors and we encourage everybody to attempt for.
For the most parts of our corporate team is continuing to work remotely, though we remain committed to gradually and safely returning our team back to the office as conditions permit.
As a result of everyones contributions operations of continued largely uninterrupted and I am extremely extremely proud of our company and summary of investments are bearing fruit. We have reached important inflection points with strong positive cash flow solid earnings performance debt reduction and meaningful op.
<unk> is to enhance shareholder value and the dynamic of 130 billion automotive aftermarket industry and the emerging electric vehicle industry.
We are proud of of more than 50 year history, and the aftermarket industry and are excited about our emerging presence in the electric vehicle space and all of US are committed to our vision of being the global leader for parts and solutions that move our world today and Tomorrow and we appreciate your continued support.
And thank you again for joining us on the call. We look forward to speaking with you when we host the fiscal 2022 first quarter conference call in August and at Investor conferences, and hopefully in person and sometime in the future.
Thank you.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.
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