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CarParts.com Reports Second Quarter 2024 Results

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CarParts.com (NASDAQ: PRTS) reported its Q2 2024 results, showing a decrease in net sales to $144.3 million, down 18% year-over-year. The company experienced a net loss of $8.7 million, or $0.15 per share, compared to a $0.7 million loss in Q2 2023. Gross profit declined to $48.4 million, with a gross margin of 33.5%. Despite the overall decrease, CarParts.com saw sequential margin improvement with product margins at 54.0%, up 210 bps from Q1. The company maintains a strong cash position of $34.1 million with no revolver debt. For the full year 2024, CarParts.com targets net sales between $600-$625 million and a gross margin of 33% ± 100 bps. The company is focusing on financial discipline, profitability, and sustainable growth in the $400 billion automotive aftermarket.

CarParts.com (NASDAQ: PRTS) ha riportato i risultati del secondo trimestre 2024, mostrando una riduzione delle vendite nette a 144,3 milioni di dollari, in calo del 18% rispetto all'anno precedente. L'azienda ha subito una perdita netta di 8,7 milioni di dollari, ovvero 0,15 dollari per azione, rispetto a una perdita di 0,7 milioni di dollari nel secondo trimestre 2023. Il profitto lordo è sceso a 48,4 milioni di dollari, con un margine lordo del 33,5%. Nonostante la diminuzione complessiva, CarParts.com ha registrato un miglioramento sequenziale dei margini con margini di prodotto al 54,0%, in aumento di 210 punti base rispetto al primo trimestre. L'azienda mantiene una solida posizione di liquidità di 34,1 milioni di dollari senza debito revolving. Per l'intero anno 2024, CarParts.com prevede vendite nette tra 600 e 625 milioni di dollari e un margine lordo del 33% ± 100 punti base. L'azienda si sta concentrando su una disciplina finanziaria, redditività e crescita sostenibile nel mercato aftermarket automobilistico da 400 miliardi di dollari.

CarParts.com (NASDAQ: PRTS) ha publicado sus resultados del segundo trimestre de 2024, mostrando una disminución en las ventas netas a 144,3 millones de dólares, un descenso del 18% en comparación con el año anterior. La compañía sufrió una pérdida neta de 8,7 millones de dólares, o 0,15 dólares por acción, frente a una pérdida de 0,7 millones de dólares en el segundo trimestre de 2023. La ganancia bruta cayó a 48,4 millones de dólares, con un margen bruto del 33,5%. A pesar de la disminución general, CarParts.com experimentó una mejora secuencial en los márgenes con márgenes de producto del 54,0%, un aumento de 210 puntos básicos respecto al primer trimestre. La empresa mantiene una sólida posición de efectivo de 34,1 millones de dólares sin deuda rotativa. Para todo el año 2024, CarParts.com apunta a ventas netas entre 600 y 625 millones de dólares y un margen bruto del 33% ± 100 puntos básicos. La empresa se centra en la disciplina financiera, rentabilidad y crecimiento sostenible en el mercado de posventa automotriz de 400 mil millones de dólares.

CarParts.com (NASDAQ: PRTS)는 2024년 2분기 실적을 발표하며 순매출이 1억 4,430만 달러로 감소했다고 밝혔습니다. 이는 전년 대비 18%의 감소입니다. 회사는 870만 달러의 순손실을 기록했으며, 주당 0.15달러의 손실을 보였습니다. 이는 2023년 2분기의 70만 달러 손실과 비교됩니다. 총 이익은 4840만 달러로 줄어들었으며, 총 마진은 33.5%였습니다. 전반적인 감소에도 불구하고 CarParts.com은 제품 마진이 54.0%로 1분기 대비 210bp 상승하면서 순수익 개선을 경험했습니다. 회사는 3,410만 달러의 강력한 현금 보유률을 유지하고 있으며 회전 대출이 없습니다. 2024년 전체 연간 목표로 CarParts.com은 순매출을 6억~6억 2500만 달러, 총 마진을 33% ± 100bp로 잡고 있습니다. 회사는 4000억 달러 규모의 자동차 애프터마켓에서 재무 규율, 수익성 및 지속 가능한 성장에 집중하고 있습니다.

CarParts.com (NASDAQ: PRTS) a publié ses résultats du deuxième trimestre 2024, montrant une diminution des ventes nettes à 144,3 millions de dollars, soit une baisse de 18 % par rapport à l'année précédente. L'entreprise a enregistré une perte nette de 8,7 millions de dollars, soit 0,15 dollar par action, comparé à une perte de 0,7 million de dollars au deuxième trimestre 2023. Le bénéfice brut a chuté à 48,4 millions de dollars, avec une marge brute de 33,5%. Malgré la baisse générale, CarParts.com a connu une amélioration séquentielle des marges, avec des marges de produit de 54,0 %, en hausse de 210 points de base par rapport au premier trimestre. L'entreprise maintient une solide position de trésorerie de 34,1 millions de dollars sans dette révolving. Pour l'année entière 2024, CarParts.com vise des ventes nettes entre 600 et 625 millions de dollars et une marge brute de 33 % ± 100 points de base. L'entreprise se concentre sur la discipline financière, la rentabilité et la croissance durable dans le marché des pièces automobiles de 400 milliards de dollars.

CarParts.com (NASDAQ: PRTS) hat seine Ergebnisse für das zweite Quartal 2024 veröffentlicht und berichtet von einem Rückgang der Nettoumsätze auf 144,3 Millionen Dollar, was einem Rückgang von 18 % im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete einen Nettoverlust von 8,7 Millionen Dollar, oder 0,15 Dollar pro Aktie, verglichen mit einem Verlust von 0,7 Millionen Dollar im zweiten Quartal 2023. Der Bruttogewinn sank auf 48,4 Millionen Dollar, bei einem Bruttomargen von 33,5%. Trotz des allgemeinen Rückgangs konnte CarParts.com eine sequentielle Margenverbesserung verzeichnen, mit Produktmargen von 54,0 %, was einem Anstieg um 210 Basispunkte gegenüber dem ersten Quartal entspricht. Das Unternehmen hält eine starke Liquiditätsposition von 34,1 Millionen Dollar ohne revolvierende Schulden. Für das gesamte Jahr 2024 strebt CarParts.com Nettoumsätze zwischen 600 und 625 Millionen Dollar sowie eine Bruttomarge von 33 % ± 100 Basispunkte an. Das Unternehmen konzentriert sich auf finanzielle Disziplin, Rentabilität und nachhaltiges Wachstum im Markt für Automobilersatzteile im Wert von 400 Milliarden Dollar.

Positive
  • Sequential improvement in product margins to 54.0%, up 210 bps from Q1
  • Strong cash position of $34.1 million with no revolver debt
  • Total cumulative mobile app downloads reached 450,000, more than doubling since the beginning of the year
  • Company expects Q3 margins to be sequentially higher
  • Targeting sustainable and significantly positive Adjusted EBITDA next year
Negative
  • Net sales decreased by 18% year-over-year to $144.3 million
  • Net loss widened to $8.7 million compared to $0.7 million in Q2 2023
  • Gross profit declined from $60.4 million to $48.4 million year-over-year
  • Adjusted EBITDA fell to ($0.1) million from $6.3 million in the year-ago quarter
  • Cash balance decreased from $51.0 million at fiscal year-end 2023 to $34.1 million

Insights

CarParts.com's Q2 2024 results paint a challenging picture, with notable declines in key financial metrics. The 18% year-over-year decrease in net sales to $144.3 million is concerning, particularly in a growing automotive aftermarket. This decline, coupled with a widening net loss of $8.7 million ($0.15 per share), signals significant headwinds.

However, there are some positive indicators. The company's focus on financial discipline is evident in the sequential gross margin improvement, with product margins reaching 54.0%, up 210 basis points from Q1. This strategy of targeting more profitable customers appears to be gaining traction, albeit at the cost of overall sales volume.

The company's cash position of $34.1 million with no revolver debt provides some financial flexibility, but the decline from $51.0 million at the end of fiscal 2023 warrants attention. This cash burn rate could become problematic if not addressed promptly.

Looking ahead, management's guidance for full-year 2024 net sales of $600 million to $625 million and a gross margin of 33% (±100 bps) suggests they anticipate a recovery in the latter half of the year. However, achieving this will require a significant turnaround from the current trajectory.

The doubling of mobile app downloads to 450,000 is a bright spot, indicating potential for future growth in customer engagement and sales. However, this needs to translate into tangible financial results to be truly impactful.

Overall, while the company's strategic shift towards profitability shows promise, the execution and market conditions present significant challenges that investors should monitor closely.

CarParts.com's Q2 results reflect broader trends in the automotive aftermarket sector. The company's performance should be viewed in the context of a highly fragmented $400 billion market, where online retailers are still carving out their niche.

The 18% decline in net sales is particularly noteworthy. While partly attributed to deliberate price increases, it also signals softness in consumer demand. This could be indicative of broader economic pressures affecting discretionary spending on vehicle maintenance and upgrades.

The company's pivot towards profitability over growth is a strategic response to market conditions. By focusing on higher-margin customers and products, CarParts.com is attempting to build a more sustainable business model. However, this approach carries risks, particularly if competitors continue to prioritize market share gains.

The significant increase in mobile app downloads (now at 450,000) aligns with the broader trend of consumers increasingly using mobile devices for online shopping. This could be a key differentiator for CarParts.com in the long run, potentially leading to increased customer loyalty and repeat purchases.

Looking ahead, the company's full-year guidance suggests management expects market conditions to improve. However, given the current economic uncertainties and inflationary pressures, this outlook may be optimistic. The automotive aftermarket typically shows resilience during economic downturns as consumers opt to repair rather than replace vehicles, but the current scenario appears more complex.

In conclusion, CarParts.com's performance reflects both company-specific strategies and broader market dynamics. The success of their profitability-focused approach will largely depend on their ability to retain customers while improving margins in a highly competitive landscape.

TORRANCE, Calif., July 30, 2024 /PRNewswire/ -- CarParts.com, Inc. (NASDAQ: PRTS), a leading eCommerce provider of automotive parts and accessories, and a premier destination for vehicle repair and maintenance needs, is reporting results for the second quarter ended June 29, 2024. 

Second Quarter 2024 Summary vs. Year-Ago Quarter

  • Net sales decreased to $144.3 million, down 18% from the year-ago quarter.
  • Gross profit of $48.4 million vs. $60.4 million, with gross margin of 33.5%.
  • Net loss was ($8.7) million, or ($0.15) per share, compared to a net loss of ($0.7) million, or ($0.01) per share.
  • Adjusted EBITDA of ($0.1) million vs. $6.3 million.
  • Cash of $34.1 million and no revolver debt.
  • Total cumulative mobile app downloads of 450,000, more than double the number from the beginning of the year.

Management Commentary

"Last quarter we discussed our emphasis on financial discipline and profitability by focusing on driving gross and net margins, accelerating efficiency and effectiveness to quickly deliver improved profitability; and achieving sustainable growth with strong long-term free cash flow.

In the second quarter, we made significant progress on gross margin and efficiencies, which reinforces our confidence that we're on the right track. We are confident in our roadmap and our opportunity as a leading online retailer in a highly fragmented $400 billion automotive aftermarket market. 

In the first half of the year, we updated our pricing and marketing acquisition strategies to target more profitable customers and generate higher gross margins. As a result, in the second quarter, we saw sequential margin improvement with product margins at 54.0%, up 210 bps from Q1. We expect Q3 to be sequentially higher.

We are  forging on a path that we expect will result in achieving sustainable and significantly positive Adjusted EBITDA next year while working towards achieving a 6-8% Adjusted EBITDA margin and enhanced free cash flow generation in the medium term" said David Meniane, CEO. 

Second Quarter 2024 Financial Results

Net sales in the second quarter of 2024 were $144.3 million, down 18% from the year-ago quarter. The decrease was primarily driven by deliberate price increases to drive gross margin expansion combined with softness in consumer demand.

Gross profit in the second quarter was $48.4 million compared to $60.4 million, with gross margin decreasing 70 basis points to 33.5%, but up sequentially from 32.4% in the first quarter of 2024. For fiscal year 2024, the Company is focused on driving gross margin expansion. This improvement was primarily driven by price increases and expanded branded gross margins, offset by higher year-over-year freight costs.

Total operating expenses in the second quarter were $57.1 million compared to $61.3 million in the year-ago quarter.

Net loss in the second quarter was ($8.7) million compared to a net loss of ($0.7) million in the year-ago quarter.

Adjusted EBITDA in the second quarter was ($0.1) million compared to $6.3 million in the year-ago quarter.

On June 29, 2024, the Company had a cash balance of $34.1 million and no revolver debt, compared to no revolver debt and a $51.0 million cash balance at prior fiscal year-end December 30, 2023. 

2024 Outlook

For the full year 2024, we are targeting net sales and gross profit to remain within the range we had previously forecasted. The Company expects net sales at the low end in the range of $600 million to $625 million and gross margin to be 33%, plus or minus 100 basis points.

Conference Call

CarParts.com CEO David Meniane, CFO Ryan Lockwood and COO Michael Huffaker will host a conference call today to discuss the results, followed by a question-and-answer period.

Date: Tuesday, July 30, 2024
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Webcast: www.carparts.com/investor/news-events 

To listen to the live call, please click the link above to access the webcast. A replay of the audio webcast will be archived on the Company's website at www.carparts.com/investor.  

About CarParts.com, Inc.

CarParts.com, Inc. is a technology-driven eCommerce company offering over 1 million high-quality automotive parts and accessories. Operating for over 25 years, CarParts.com has established itself as a premier destination for drivers seeking repair and maintenance solutions. Our commitment lies in placing the customer at the forefront of our operations, evident in our easy-to-use, mobile-friendly website and app. With a commitment to affordability and customer satisfaction, CarParts.com simplifies the automotive repair process, aiming to eliminate the uncertainty and stress often associated with vehicle maintenance. Backed by a robust company-operated fulfillment network, we ensure swift delivery of top-quality parts from leading brands to customers across the nation.

At CarParts.com, our global team is united by a shared vision: Empowering Drivers Along Their Journey.

CarParts.com is headquartered in Torrance, California.

Non-GAAP Financial Measures

Regulation G, and other provisions of the Securities Exchange Act of 1934, as amended, define and prescribe the conditions for use of certain non-GAAP financial information. We provide "Adjusted EBITDA" in this earnings release and on today's scheduled conference call, which are non-GAAP financial measures. Adjusted EBITDA consist of net (loss) income before (a) interest (income) expense, net; (b) income tax provision; (c) depreciation and amortization expense; (d) amortization of intangible assets; (e) share-based compensation expense; (f) workforce transition costs; and (g) distribution center costs. A reconciliation of Adjusted EBITDA to net (loss) income is provided below.

The Company believes that these non-GAAP financial measures provide important supplemental information to management and investors. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with the GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provides a more complete understanding of factors and trends affecting the Company's business and results of operations.

Management uses Adjusted EBITDA as measures of the Company's operating performance because it assists in comparing the Company's operating performance on a consistent basis by removing the impact of stock compensation expense as well as other items that we do not believe are representative of our ongoing operating performance. Internally, these non-GAAP measures are also used by management for planning purposes, including the preparation of internal budgets; for allocating resources to enhance financial performance; and for evaluating the effectiveness of operational strategies. The Company also believes that analysts and investors use these non-GAAP measures as supplemental measures to evaluate the ongoing operations of companies in our industry.

These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management strongly encourages investors to review the Company's consolidated financial statements in their entirety and to not rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. In addition, the Company expects to continue to incur expenses similar to the non-GAAP adjustments described above, and exclusion of these items from the Company's non-GAAP measures should not be construed as an inference that these costs are all unusual, infrequent or non-recurring.

Safe Harbor Statement

This press release contains statements which are based on management's current expectations, estimates and projections about the Company's business and its industry, as well as certain assumptions made by the Company. These statements are forward looking statements for the purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended and Section 27A of the Securities Act of 1933, as amended. Words such as "anticipates," "could," "expects," "intends," "plans," "potential," "believes," "predicts," "projects," "seeks," "estimates," "may," "will," "would," "will likely continue" and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding our future operating results and financial condition, our potential growth, our ability to innovate, our ability to gain market share, and our ability to expand and improve our product offerings. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors.

Important factors that may cause such a difference include, but are not limited to, competitive pressures, our dependence on search engines to attract customers, demand for the Company's products, the online market and channel mix for aftermarket auto parts, the economy in general, increases in commodity and component pricing that would increase the Company's product costs, the operating restrictions in its credit agreement, the weather and any other factors discussed in the Company's filings with the Securities and Exchange Commission (the "SEC"), including the Risk Factors contained in the Company's Annual Report on Form 10–K and Quarterly Reports on Form 10–Q, which are available at www.carparts.com/investor and the SEC's website at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements in this release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. Unless otherwise required by law, the Company expressly disclaims any obligation to update publicly any forward-looking statements, whether as result of new information, future events or otherwise.

Investor Relations:

Ryan Lockwood, CFA
IR@carparts.com

Summarized information for the periods presented is as follows (in millions):

















Thirteen
Weeks
Ended


Thirteen
Weeks
Ended


Twenty-Six
Weeks
Ended


Twenty-Six
Weeks
Ended




June 29, 2024


July 1, 2023


June 29, 2024


July 1, 2023


Net sales


$

144.27


$

176.98


$

310.56


$

352.47


Gross profit


$

48.39


$

60.44


$

102.31


$

122.99





33.5

%


34.2

%


32.9

%


34.9

%

Operating expense


$

57.12


$

61.29


$

117.56


$

123.20





39.6

%


34.6

%


37.9

%


35.0

%

Net (loss) income


$

(8.69)


$

(0.67)


$

(15.17)


$

0.38





(6.0)

%


(0.4)

%


(4.9)

%


0.1

%

Adjusted EBITDA


$

(0.12)


$

6.30


$

0.93


$

15.67





(0.1)

%


3.6

%


0.3

%


4.4

%

The table below reconciles net (loss) income to Adjusted EBITDA for the periods presented (in thousands):
















Thirteen
Weeks
Ended


Thirteen
Weeks
Ended


Twenty-Six
Weeks
Ended


Twenty-Six
Weeks
Ended



June 29, 2024


July 1, 2023


June 29, 2024


July 1, 2023

Net (loss) income


$

(8,687)


$

(671)


$

(15,165)


$

380

Depreciation & amortization



4,455



4,247



8,480



8,166

Amortization of intangible assets



13



9



21



20

Interest (income) expense, net



(68)



(221)



(205)



126

Income tax provision



27



141



125



282

EBITDA


$

(4,260)


$

3,505


$

(6,744)


$

8,974

Stock compensation expense


$

3,328


$

2,797


$

5,910


$

6,696

Workforce transition costs(1)



108





591



Distribution center costs(2)



706





1,177



Adjusted EBITDA


$

(118)


$

6,302


$

934


$

15,670










(1)

We incurred workforce transition costs, primarily related to severance, as part of our recent workforce reductions.

(2)

We incurred certain non-recurring costs, primarily overlapping rent expense, attributable to moving to our new Las Vegas, Nevada distribution center.

 

CARPARTS.COM, INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS
(Unaudited, In Thousands, Except Per Share Data)




Thirteen Weeks Ended


Twenty-Six Weeks Ended



June 29,


July 1,


June 29,


July 1,



2024


2023


2024


2023

Net sales


$

144,270


$

176,978


$

310,559


$

352,470

Cost of sales (1)



95,877



116,536



208,247



229,477

Gross profit



48,393



60,442



102,312



122,993

Operating expense



57,121



61,286



117,557



123,201

Loss from operations



(8,728)



(844)



(15,245)



(208)

Other income (expense):













Other income, net



354



639



791



1,553

Interest expense



(286)



(325)



(586)



(683)

Total other income, net



68



314



205



870

(Loss) income before income taxes



(8,660)



(530)



(15,040)



662

Income tax provision



27



141



125



282

Net (loss) income



(8,687)



(671)



(15,165)



380

Other comprehensive gain:













Foreign currency adjustments







87



Unrealized gain on deferred compensation trust assets





24





48

Total other comprehensive gain





24



87



48

Comprehensive (loss) income


$

(8,687)


$

(647)


$

(15,078)


$

428

Net (loss) income per share:













Basic net (loss) income per share


$

(0.15)


$

(0.01)


$

(0.27)


$

0.01

Diluted net (loss) income per share


$

(0.15)


$

(0.01)


$

(0.27)


$

0.01

Weighted-average common shares outstanding:













Shares used in computation of basic net (loss) income per share



56,851



56,532



56,677



55,789

Shares used in computation of diluted net (loss) income per share



56,851



56,532



56,677



58,028










(1)

Excludes depreciation and amortization expense which is included in operating expense.

 

CARPARTS.COM, INC. AND SUBSIDIARIES


CONSOLIDATED BALANCE SHEETS
(Unaudited, In Thousands, Except Par Value Data)




June 29,


December 30,



2024


2023

ASSETS







Current assets:







Cash and cash equivalents


$

34,065


$

50,951

Accounts receivable, net



6,147



7,365

Inventory, net



109,289



128,901

Other current assets



8,154



6,121

Total current assets



157,655



193,338

Property and equipment, net



34,622



26,389

Right-of-use - assets - operating leases, net



29,530



19,542

Right-of-use - assets - finance leases, net



12,929



15,255

Other non-current assets



3,303



3,331

Total assets


$

238,039


$

257,855

LIABILITIES AND STOCKHOLDERS' EQUITY







Current liabilities:







Accounts payable


$

62,701


$

77,851

Accrued expenses



17,571



20,770

Right-of-use - obligation - operating, current



5,692



4,749

Right-of-use - obligation - finance, current



3,897



4,308

Other current liabilities



4,742



5,308

Total current liabilities



94,603



112,986

Right-of-use - obligation - operating, non-current



26,166



16,742

Right-of-use - obligation - finance, non-current



10,517



12,327

Other non-current liabilities



2,863



2,969

Total liabilities



134,149



145,024

Commitments and contingencies







Stockholders' equity:







Common stock, $0.001 par value; 100,000 shares authorized; 57,088 and 56,303 shares issued and outstanding as of June 29, 2024 and December 30, 2023 (of which 3,786 are treasury stock)



61



60

Treasury stock



(11,912)



(11,912)

Additional paid-in capital



319,010



312,874

Accumulated other comprehensive income



870



783

Accumulated deficit



(204,139)



(188,974)

Total stockholders' equity



103,890



112,831

Total liabilities and stockholders' equity


$

238,039


$

257,855

 

CARPARTS.COM, INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, In Thousands)




Twenty-Six Weeks Ended



June 29,


July 1,



2024


2023

Operating activities







Net (loss) income


$

(15,165)


$

380

Adjustments to reconcile net (loss) income to net cash provided by operating activities:







Depreciation and amortization expense



8,480



8,166

Amortization of intangible assets



21



20

Share-based compensation expense



5,910



6,696

Stock awards issued for non-employee director service



19



11

Stock awards related to officers and directors stock purchase plan from payroll deferral



4



Gain from disposition of assets





(75)

Amortization of deferred financing costs



32



32

Changes in operating assets and liabilities:







Accounts receivable



1,217



(1,090)

Inventory



19,613



22,286

Other current assets



(2,032)



(4)

Other non-current assets



15



60

Accounts payable and accrued expenses



(17,802)



28,630

Other current liabilities



(566)



925

Right-of-use obligation - operating leases - current



1,169



380

Right-of-use obligation - operating leases - long-term



(790)



(398)

Other non-current liabilities



(107)



342

Net cash provided by operating activities



18



66,361

Investing activities







Additions to property and equipment



(14,567)



(4,669)

Payments for intangible assets



(40)



Proceeds from sale of property and equipment





83

Net cash used in investing activities



(14,607)



(4,586)

Financing activities







Borrowings from revolving loan payable



127



117

Payments made on revolving loan payable



(127)



(117)

Payments on finance leases



(2,157)



(2,467)

Repurchase of treasury stock





(1,052)

Net proceeds from issuance of common stock for ESPP



202



221

Statutory tax withholding payment for share-based compensation



(429)



Proceeds from exercise of stock options





1,969

Net cash used in financing activities



(2,384)



(1,329)

Effect of exchange rate changes on cash



87



Net change in cash and cash equivalents



(16,886)



60,446

Cash and cash equivalents, beginning of period



50,951



18,767

Cash and cash equivalents, end of period


$

34,065


$

79,213

Supplemental disclosure of non-cash investing and financing activities:







Right-of-use operating asset acquired


$

12,857


$

Accrued asset purchases


$

888


$

408

Share-based compensation expense capitalized in property and equipment


$

431


$

411

Supplemental disclosure of cash flow information:







Cash paid during the period for income taxes


$

48


$

155

Cash paid during the period for interest


$

586


$

683

Cash received during the period for interest


$

791


$

557

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/carpartscom-reports-second-quarter-2024-results-302209437.html

SOURCE CarParts.com, Inc.

FAQ

What were CarParts.com's (PRTS) Q2 2024 earnings results?

CarParts.com reported a net loss of $8.7 million or $0.15 per share in Q2 2024, compared to a net loss of $0.7 million or $0.01 per share in Q2 2023. Net sales decreased by 18% to $144.3 million.

How did CarParts.com's (PRTS) gross margin perform in Q2 2024?

CarParts.com's gross margin was 33.5% in Q2 2024, down 70 basis points year-over-year but up sequentially from 32.4% in Q1 2024. Product margins improved to 54.0%, up 210 basis points from Q1.

What is CarParts.com's (PRTS) financial outlook for 2024?

For 2024, CarParts.com expects net sales between $600-$625 million and a gross margin of 33% ± 100 basis points. The company aims to achieve sustainable and significantly positive Adjusted EBITDA next year.

How much cash does CarParts.com (PRTS) have as of Q2 2024?

As of June 29, 2024, CarParts.com had a cash balance of $34.1 million and no revolver debt, compared to $51.0 million cash balance at the end of fiscal year 2023.

CarParts.com, Inc.

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