Business Description
We are a leading manufacturer, remanufacturer, and distributor of aftermarket
automotive parts for import and domestic cars, light trucks, heavy duty, agricultural
and industrial applications. We sell our products predominantly in North America
to the largest auto parts retail and traditional warehouse chains and to major
automobile manufacturers for both their aftermarket programs and their warranty
replacement programs (“OES”).
The current population of vehicles in the U.S. is approximately 253 million
and the average age of these vehicles is approximately 11.5 years. While the
aged vehicle population is favorable today, miles driven continues to fluctuate
primarily based on fuel prices. We believe demand and replacement rates for
aftermarket automotive parts generally increase with the age of vehicles and
increases in miles driven.
The aftermarket for automobile parts is divided into two markets. The first
market is the do-it-yourself (“DIY”) market, which is generally
serviced by the large retail chain outlets. Consumers who purchase parts from
the DIY channel generally install parts into their vehicles themselves. In most
cases, this is a less expensive alternative than having the repair performed
by a professional installer. The second is the professional installer market,
commonly known as the do-it-for-me (“DIFM”) market. This market
is serviced by the traditional warehouse distributors, the dealer networks,
and the commercial divisions of retail chains. Generally, the consumer in this
channel is a professional parts installer. Our products are distributed to both
the DIY and DIFM markets.
We are focused on growing our share in all channels within the aftermarket,
including DIY, DIFM and OES. We are well positioned for growth in all channels,
in particular the DIFM market in three ways: (i) our auto parts retail customers
are expanding their efforts to target the DIFM market, (ii) we sell our products
under private label and our own brand names directly to suppliers that focus
on professional installers, and (iii) we sell our products to original equipment
manufacturers for distribution to the professional installer both for warranty
replacement and their general aftermarket channels. We have been successful
in growing sales to all channels of the aftermarket.
Our goal is to take advantage of multiple growth strategies. To accomplish
this, key elements of our strategy include:
Grow our product lines both with existing and potential new customers. We continue
to develop and offer current and new sales programs to ensure that we are doing
all we can to support our customers’ businesses. We remain dedicated to
manage growth and continue to focus on enhancements to our infrastructure and
making investments in resources to support our customers.
Introduction of new product lines. We continue to strive to expand our business
by exploring new product lines including working with our existing customers
to identify potential new product opportunities. We expect to launch a new product
line in the second quarter of fiscal 2017.
The strategic acquisition of other companies or businesses. We have in the past
and intend to continue to making strategic acquisitions to grow our business.
We maintain an in-house acquisition team that continuously works to identify
potential new targets.
Creating value for our customers. A core part of our strategy is ensuring that
we add meaningful value for our customers. We consistently support and pilot
our customers’ supply management initiatives in addition to providing
demand analytics, inventory planning, market share, and retail store layout
information to our customers.
1.51% 
93.68 %