PARTS iD, Inc. Reports Fourth Quarter and 2021 Results
PARTS iD reported a 11.9% increase in full year 2021 revenue to $448.7 million, while fourth quarter revenue rose 14.5% to $106.6 million. Despite the revenue growth, the company faced challenges with a net loss of $(8.0 million) compared to net income of $2.1 million in 2020. Gross margin declined from 21.4% to 20.1% due to rising product and shipping costs. Operating expenses increased, leading to an operating loss of $(9.1 million), down from operating income in 2020. PARTS iD aims to counteract external pressures and enhance shareholder value going forward.
- Full year net revenue increased 11.9% to $448.7 million.
- Fourth quarter revenue grew 14.5% to $106.6 million.
- Improved average order value by 12.9%.
- Expanded diverse sales mix in EV and adjacent markets.
- Net loss of $(8.0 million) compared to net income of $2.1 million in 2020.
- Gross margin decreased from 21.4% to 20.1%.
- Operating loss of $(9.1 million) versus operating income of $1.3 million in 2020.
- Adjusted EBITDA declined from $15.4 million to $4.3 million.
Full Year Revenue Increased
Full Year 2021 Financial Summary (Comparisons versus Full Year 2020)
-
Net revenue increased
11.9% to as compared to$448.7 million .$400.8 million -
Gross margin was
20.1% as compared to21.4% . -
Operating expenses as a percent of net revenue were
22.1% as compared to21.1% . -
Operating loss was
as compared to operating income of$(9.1) million .$1.3 million -
Net loss was
as compared to net income of$(8.0) million .$2.1 million -
Adjusted EBITDA was
compared to$4.3 million .$15.4 million
Fourth Quarter 2021 Financial Summary (Comparisons versus Fourth Quarter 2020)
-
Net revenue increased
14.5% to as compared to$106.6 million .$93.1 million -
Gross margin was
19.7% as compared to20.4% . -
Operating expenses as a percent of net revenue were
24.3% as compared to27.5% . -
Operating loss was
as compared to operating loss of$(4.9) million .$(6.6) million -
Net loss was
as compared to net loss of$(4.6) million .$(4.1) million -
Adjusted EBITDA was
compared to$(0.9) million .$1.1 million
Management Commentary
“We concluded the year with fourth quarter revenue increasing
Full Year 2021 Financial Results
Net revenue for 2021 increased
Gross profit for 2021 increased
Operating expenses were
Operating loss in 2021 was
Net loss for 2021 was
Adjusted EBITDA in 2021 was
Fourth Quarter 2021 Financial Results
Fourth quarter 2021 net revenue increased
Gross profit for the fourth quarter of 2021 increased to
Operating expenses were
Operating loss for the fourth quarter of 2021 was
Net loss for the fourth quarter of 2021 was
Adjusted EBITDA was
Balance Sheet
As of
Conference Call
PARTS iD’s Chief Executive Officer,
The conference call will also be available to interested parties through a live webcast at https://www.partsidinc.com/. In addition, the investor presentation to be reviewed during the call will be posted on the Company’s website at https://www.partsidinc.com.
About
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures that differ from financial measures calculated in accordance with
To this end, we provide EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. EBITDA consists of net income (loss) plus (a) interest expense; (b) income tax provision (or less benefit); and (c) depreciation expense. Adjusted EBITDA consists of EBITDA plus stock compensation expense and other costs, fees, expenses, write offs and other items that do not impact the fundamentals of our operations, as described further below following the reconciliation of these metrics. Management believes these non-GAAP measures provide useful information to investors in their assessment of the performance of our business. The exclusion of certain expenses in calculating EBITDA and Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis as these costs may vary independent of business performance. Accordingly, we believe that EBITDA and Adjusted EBITDA provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.
EBITDA and Adjusted EBITDA have limitations as an analytical tool, and you should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:
- Although depreciation is a non-cash charge, the assets being depreciated may have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
- EBITDA and Adjusted EBITDA do not reflect changes in our working capital;
- EBITDA and Adjusted EBITDA do not reflect income tax payments that may represent a reduction in cash available to us;
- EBITDA and Adjusted EBITDA do not reflect depreciation and interest expenses associated with the lease financing obligations; and
- Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
Because of these limitations, you should consider EBITDA and Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net income (loss) and our other GAAP results.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this press release.
Cautionary Note Regarding Forward-Looking Statements
All statements made in this press release relating to future financial or business performance, conditions, plans, prospects, trends, or strategies and other such matters, including without limitation, expected future performance, consumer adoption, anticipated success of our business model or the potential for long term profitable growth, are forward-looking statements within the meaning of the
Important factors that may cause actual results to differ materially from the results discussed in the forward-looking statements include risks and uncertainties, including without limitation: the ongoing conflict between
Further information on the factors and risks that could cause actual results to differ from any forward-looking statements are contained in our filings with the
Consolidated Statements of Operations |
||||||||||||||||
|
Three months ended |
|
Year ended |
|||||||||||||
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||
Net revenue |
$ |
106,590,175 |
|
$ |
93,080,908 |
|
$ |
448,668,928 |
|
$ |
400,832,371 |
|
||||
Cost of goods sold |
|
85,612,536 |
|
|
74,098,159 |
|
|
358,439,239 |
|
|
315,027,012 |
|
||||
Gross profit |
|
20,977,639 |
|
|
18,982,749 |
|
|
90,229,689 |
|
|
85,805,359 |
|
||||
Operating expenses: |
||||||||||||||||
Advertising |
|
11,210,155 |
|
|
8,344,505 |
|
|
42,346,886 |
|
|
33,359,299 |
|
||||
Selling, general and administrative |
|
12,685,605 |
|
|
15,383,018 |
|
|
49,554,126 |
|
|
44,266,151 |
|
||||
Depreciation |
|
1,984,100 |
|
|
1,824,564 |
|
|
7,465,095 |
|
|
6,859,237 |
|
||||
Total operating expenses |
|
25,879,860 |
|
|
25,552,087 |
|
|
99,366,107 |
|
|
84,484,687 |
|
||||
(Loss) income from operations |
|
(4,902,221 |
) |
|
(6,569,338 |
) |
|
(9,136,418 |
) |
|
1,320,672 |
|
||||
Interest expense |
|
58 |
|
|
711 |
|
|
7,172 |
|
|
8,395 |
|
||||
(Loss) income before income taxes |
|
(4,902,279 |
) |
|
(6,570,049 |
) |
|
(9,143,590 |
) |
|
1,312,277 |
|
||||
Income tax (benefit) |
|
(295,702 |
) |
|
(2,460,779 |
) |
|
(1,180,790 |
) |
|
(801,552 |
) |
||||
Net (loss) income |
$ |
(4,606,577 |
) |
$ |
(4,109,270 |
) |
$ |
(7,962,800 |
) |
$ |
2,113,829 |
|
||||
Net (loss) income |
$ |
(4,606,577 |
) |
$ |
(4,109,270 |
) |
$ |
(7,962,800 |
) |
$ |
2,113,829 |
|
||||
Less: Preferred stocks dividends |
|
- |
|
|
15,067,697 |
|
|
- |
|
|
15,442,697 |
|
||||
Loss available to common shareholders |
$ |
(4,606,577 |
) |
$ |
(19,176,967 |
) |
$ |
(7,962,800 |
) |
$ |
(13,328,868 |
) |
||||
Loss per common share |
||||||||||||||||
Loss per share (basic and diluted) |
$ |
(0.14 |
) |
$ |
(0.67 |
) |
$ |
(0.24 |
) |
$ |
(0.52 |
) |
||||
Weighted average number of shares (basic and diluted) |
33,535,180 |
|
28,567,751 |
|
33,179,973 |
|
25,860,097 |
|
Consolidated Balance Sheets |
|||||||
As of |
|||||||
(Audited) |
|||||||
2021 |
2020 |
||||||
ASSETS |
|||||||
Current assets |
|||||||
Cash |
$ |
23,203,230 |
|
$ |
22,202,706 |
|
|
Accounts receivable |
|
2,157,108 |
|
|
2,236,127 |
|
|
Inventory |
|
5,754,748 |
|
|
4,856,265 |
|
|
Prepaid expenses and other current assets |
|
4,874,704 |
|
|
5,811,332 |
|
|
Total current assets |
|
35,989,790 |
|
|
35,106,430 |
|
|
Property and equipment, net |
|
13,700,876 |
|
|
11,470,360 |
|
|
Intangible assets |
|
262,966 |
|
|
237,752 |
|
|
Deferred tax assets |
|
2,314,907 |
|
|
1,099,800 |
|
|
Other assets |
|
267,707 |
|
|
267,707 |
|
|
Total assets |
$ |
52,536,246 |
|
$ |
48,182,049 |
|
|
LIABILITIES AND SHAREHOLDERS' DEFICIT |
|||||||
Current liabilities |
|||||||
Accounts payable |
$ |
40,591,938 |
|
$ |
35,631,913 |
|
|
Customer deposits |
|
15,497,857 |
|
|
16,185,648 |
|
|
Accrued expenses |
|
6,221,330 |
|
|
5,468,570 |
|
|
Other current liabilities |
|
3,930,841 |
|
|
3,592,782 |
|
|
Notes payable, current portion |
|
- |
|
|
19,706 |
|
|
Total liabilities |
|
66,241,966 |
|
|
60,898,619 |
|
|
COMMITMENTS AND CONTINGENCIES (Note 5) |
|||||||
SHAREHOLDERS' DEFICIT |
|||||||
Preferred stock, |
|||||||
1,000,000 shares authorized and 0 issued and outstanding |
|
- |
|
|
- |
|
|
Common stock, |
|||||||
10,000,000 Class F shares authorized and 0 issued and outstanding |
|
- |
|
|
- |
|
|
100,000,000 Class A shares authorized and 33,965,804 and 32,873,457 issued and
outstanding, as of |
|
3,396 |
|
|
3,287 |
|
|
Additional paid in capital |
|
6,973,541 |
|
|
- |
|
|
Accumulated deficit |
|
(20,682,657 |
) |
|
(12,719,857 |
) |
|
Total shareholders' deficit |
|
(13,705,720 |
) |
|
(12,716,570 |
) |
|
Total liabilities and shareholders' deficit |
$ |
52,536,246 |
|
$ |
48,182,049 |
|
Consolidated Statements of Cash Flows |
||||||||
For the Years Ended |
||||||||
(Audited) |
||||||||
2021 |
2020 |
|||||||
Cash Flows from Operating Activities: |
||||||||
Net (loss) income |
$ |
(7,962,800 |
) |
$ |
2,113,829 |
|
||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
||||||||
Depreciation |
|
7,465,095 |
|
|
6,859,237 |
|
||
Deferred income (benefits) taxes |
|
(1,215,107 |
) |
|
(836,500 |
) |
||
Share based compensation expense |
|
4,852,985 |
|
|
- |
|
||
Gain sale of fixed assets |
|
- |
|
|
(3,228 |
) |
||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
|
79,019 |
|
|
(1,067,867 |
) |
||
Inventory |
|
(898,483 |
) |
|
(1,456,889 |
) |
||
Prepaid expenses and other current assets |
|
936,628 |
|
|
(2,777,595 |
) |
||
Accounts payable |
|
4,960,025 |
|
|
10,418,256 |
|
||
Customer deposits |
|
(687,791 |
) |
|
7,585,734 |
|
||
Accrued expenses |
|
752,760 |
|
|
458,002 |
|
||
Other current liabilities |
|
338,059 |
|
|
695,613 |
|
||
Net cash provided by operating activities |
|
8,620,390 |
|
|
21,988,592 |
|
||
Cash Flows from Investing Activities: |
||||||||
Proceeds from sale of fixed assets |
|
- |
|
|
36,000 |
|
||
Purchase of property and equipment |
|
(324,025 |
) |
|
(58,544 |
) |
||
Purchase of intangible assets |
|
(25,214 |
) |
|
(15,269 |
) |
||
Website and software development costs |
|
(7,250,921 |
) |
|
(7,283,044 |
) |
||
Net cash used in investing activities |
|
(7,600,160 |
) |
|
(7,320,857 |
) |
||
Cash Flows from Financing Activities: |
||||||||
Principal paid on notes payable |
|
(19,706 |
) |
|
(20,892 |
) |
||
Payments of preferred stock dividends |
|
- |
|
|
(442,697 |
) |
||
Cash payments for cancellation of Legacy warrants |
|
(5,620,275 |
) |
|||||
Net cash used in financing activities |
|
(19,706 |
) |
|
(6,083,864 |
) |
||
Net change in cash |
|
1,000,524 |
|
|
8,583,871 |
|
||
Cash, beginning of period |
|
22,202,706 |
|
|
13,618,835 |
|
||
Cash, end of period |
$ |
23,203,230 |
|
$ |
22,202,706 |
|
||
Supplemental disclosure of cash flows information: |
||||||||
Cash paid for interest |
$ |
7,172 |
|
$ |
7,684 |
|
||
Cash paid for income taxes |
$ |
4,209 |
|
$ |
- |
|
The following table reflects the reconciliation of net income (loss) to EBITDA and Adjusted EBITDA for each of the periods indicated.
Adjusted EBITDA |
Three months ended |
|
|
Year ended |
|||||||||||||
2021 |
|
2020 |
|
|
2021 |
|
2020 |
||||||||||
Net income (loss) |
$ |
(4,606,577 |
) |
$ |
(4,109,269 |
) |
$ |
(7,962,800 |
) |
$ |
2,113,829 |
|
|||||
Interest expense |
|
58 |
|
|
711 |
|
|
7,172 |
|
|
8,395 |
|
|||||
Income tax (benefit) |
|
(295,702 |
) |
|
(2,460,779 |
) |
|
(1,180,790 |
) |
|
(801,552 |
) |
|||||
Depreciation |
|
1,984,100 |
|
|
1,824,564 |
|
|
7,465,095 |
|
|
6,859,237 |
|
|||||
EBITDA |
|
(2,918,121 |
) |
|
(4,744,773 |
) |
|
(1,671,323 |
) |
|
8,179,909 |
|
|||||
Stock compensation expense |
|
1,549,840 |
|
|
- |
|
|
4,852,985 |
|
|
- |
|
|||||
Business combination transaction expenses(1) |
|
- |
|
|
5,261,903 |
|
|
- |
|
|
5,544,520 |
|
|||||
Founder's compensation(2) |
|
- |
|
|
(110,000 |
) |
|
- |
|
|
687,692 |
|
|||||
Legal & settlement expenses (3) |
|
428,767 |
|
|
621,418 |
|
|
1,150,247 |
|
|
725,081 |
|
|||||
Other items(4) |
|
- |
|
|
38,022 |
|
|
- |
|
|
291,164 |
|
|||||
Adjusted EBITDA Total |
$ |
(939,514 |
) |
$ |
1,066,570 |
|
$ |
4,331,909 |
|
$ |
15,428,366 |
|
(1) |
Represents the expenses incurred solely related to the business combination transaction that closed in |
|
(2) |
Represents the excess compensation paid to one of the two founders of Onyx over the amount management believes would have been the compensation of an independent professional CEO for the applicable reporting periods. |
|
(3) |
Represents legal and settlement expenses and gains related to significant matters that do not impact the fundamentals of our operations, pertaining to: (i) causes of action between certain of the Company’s shareholders and which involves claims directly against the Company seeking the fulfillment of alleged indemnification obligations with respect to these matters, and (ii) trademark and IP protection cases. We are involved in routine IP litigation, commercial litigation and other various litigation matters. We review litigation matters from both a qualitative and quantitative perspective to determine if excluding the losses or gains will provide our investors with useful incremental information. Litigation matters can vary in their characteristics, frequency and significance to our operating results. |
|
(4) |
Includes write-offs of advances and certain fraud loss claims from earlier years that we determined were uncollectible. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220314005641/en/
Investors:
ICR
ir@partsidinc.com
Media:
FischTank PR
partsid@fischtankpr.com
Source:
FAQ
What were PARTS iD's revenue figures for 2021?
How did the fourth quarter results compare to the previous year for PARTS iD?
What was the net loss reported by PARTS iD for 2021?
What challenges did PARTS iD face in 2021 regarding its gross margin?