CarParts.com Reports Third Quarter 2024 Results
CarParts.com (NASDAQ: PRTS) reported Q3 2024 results with net sales decreasing 13% to $144.8 million. The company posted a net loss of ($10.0 million) or ($0.17) per share, compared to ($2.5 million) or ($0.04) per share in the year-ago quarter. Gross margin improved to 35.2% from 32.9%. The company maintains $38.1 million in cash with no revolver debt. Notable developments include a new semi-automated Las Vegas distribution center handling 20% of company volume, mobile app downloads exceeding 550,000, and partnerships with SimpleTire and Amazon. The company narrowed its 2024 revenue guidance to $595-600 million with gross margin expected at 33-34%.
CarParts.com (NASDAQ: PRTS) ha riportato i risultati del terzo trimestre 2024, con le vendite nette che sono diminuite del 13% a 144,8 milioni di dollari. L'azienda ha registrato una perdita netta di ($10,0 milioni) ossia ($0,17) per azione, rispetto a ($2,5 milioni) o ($0,04) per azione nello stesso periodo dell'anno precedente. Il margine lordo è migliorato al 35,2% rispetto al 32,9%. L'azienda mantiene 38,1 milioni di dollari in contanti senza debito revolving. Sviluppi notevoli includono un nuovo centro di distribuzione semi-automated a Las Vegas che gestisce il 20% del volume aziendale, oltre 550.000 download dell'app mobile e partnership con SimpleTire e Amazon. L'azienda ha ristretto la sua guida alle entrate del 2024 a 595-600 milioni di dollari, con un margine lordo previsto del 33-34%.
CarParts.com (NASDAQ: PRTS) informó los resultados del tercer trimestre de 2024, con una disminución del 13% en las ventas netas a 144,8 millones de dólares. La empresa reportó una pérdida neta de ($10,0 millones) o ($0,17) por acción, en comparación con ($2,5 millones) o ($0,04) por acción en el mismo período del año anterior. El margen bruto mejoró al 35,2% desde el 32,9%. La compañía mantiene 38,1 millones de dólares en efectivo sin deuda de crédito. Desarrollos notables incluyen un nuevo centro de distribución semi-automático en Las Vegas que maneja el 20% del volumen de la empresa, descargas de la aplicación móvil que superan los 550,000 y asociaciones con SimpleTire y Amazon. La empresa ha reducido su guía de ingresos para 2024 a 595-600 millones de dólares, con un margen bruto esperado del 33-34%.
CarParts.com (NASDAQ: PRTS)는 2024년 3분기 실적을 발표하며 순매출이 13% 감소한 1억 4480만 달러를 기록했습니다. 회사는 순손실이 ($1000만) 또는 주당 ($0.17)로, 작년 같은 분기의 ($250만) 또는 주당 ($0.04)와 비교되었습니다. 총 마진은 32.9%에서 35.2%로 개선되었습니다. 이 회사는 리볼빙 대출 없이 3810만 달러의 현금을 보유하고 있습니다. 주요 개발 사항으로는 회사 물량의 20%를 처리하는 새로운 반자동 라스베이거스 유통 센터, 55만 건이 넘는 모바일 앱 다운로드, SimpleTire 및 Amazon과의 파트너십이 포함됩니다. 회사는 2024년 매출 안내를 5억 9500만 - 6억 달러로 좁혔으며, 총 마진은 33-34%로 예상됩니다.
CarParts.com (NASDAQ: PRTS) a publié les résultats du troisième trimestre 2024, avec des ventes nettes en baisse de 13 % à 144,8 millions de dollars. L'entreprise a affiché une perte nette de ($10,0 millions) ou ($0,17) par action, contre ($2,5 millions) ou ($0,04) par action au trimestre de l'année précédente. La marge brute s'est améliorée à 35,2% contre 32,9%. L'entreprise dispose de 38,1 millions de dollars en liquidités sans dettes à revolving. Les développements notables incluent un nouveau centre de distribution semi-automatisé à Las Vegas traitant 20 % du volume de l'entreprise, plus de 550 000 téléchargements d'applications mobiles et des partenariats avec SimpleTire et Amazon. L'entreprise a affiné ses prévisions de revenus pour 2024 à 595-600 millions de dollars, avec une marge brute attendue de 33-34%.
CarParts.com (NASDAQ: PRTS) hat die Ergebnisse des dritten Quartals 2024 veröffentlicht, wobei der Nettoumsatz um 13% auf 144,8 Millionen Dollar gesunken ist. Das Unternehmen meldete einen Nettoverlust von ($10,0 Millionen) oder ($0,17) pro Aktie, verglichen mit ($2,5 Millionen) oder ($0,04) pro Aktie im Vorjahresquartal. Die Bruttomarge verbesserte sich auf 35,2% von 32,9%. Das Unternehmen hält 38,1 Millionen Dollar in bar ohne revolvierende Schulden. Bemerkenswerte Entwicklungen umfassen ein neues halbautomatisiertes Verteilungszentrum in Las Vegas, das 20% des Unternehmensvolumens bearbeitet, über 550.000 Downloads der mobilen App und Partnerschaften mit SimpleTire und Amazon. Das Unternehmen hat seine Umsatzprognose für 2024 auf 595-600 Millionen Dollar eingegrenzt, mit einer erwarteten Bruttomarge von 33-34%.
- Gross margin improved to 35.2% from 32.9% year-over-year
- OE premium brands up 24% YOY and European brands up 23% YOY
- Strong cash position of $38.1 million with no revolver debt
- New Las Vegas distribution center now handling 20% of company volume
- Mobile app downloads more than doubled to over 550,000
- Net sales decreased 13% to $144.8 million
- Net loss widened to $10.0 million from $2.5 million year-over-year
- Adjusted EBITDA declined to ($1.2) million from $3.0 million
- Operating expenses increased to $60.9 million from $57.7 million
- Lowered full-year revenue guidance by $5 million
Insights
The Q3 results reveal significant challenges for CarParts.com, with
The company's strategic initiatives, including SimpleTire partnership and Amazon fulfillment network integration, show promise but haven't offset core business challenges. The lowered revenue guidance to
The platform re-architecture and new digital initiatives demonstrate strategic foresight in modernizing operations. The mobile app's growth to 550,000 downloads shows strong digital adoption, while the new VIN lookup feature's 30,000 uses in two weeks indicates product-market fit. The expansion into Canadian markets through eBay and the Amazon fulfillment network integration are promising diversification moves.
However, the core e-commerce performance is concerning. Despite premium brands showing
Third Quarter 2024 Summary vs. Year-Ago Quarter
- Net sales decreased to
$144.8 million 13% from the year-ago quarter. - Gross profit of
$51.0 million $54.8 million - Gross margin of
35.2% , up from32.9% from the year-ago quarter. - Net loss was
( , or ($10.0) million $0.17 ( , or ($2.5) million $0.04 - Adjusted EBITDA of
( vs.$1.2) million $3.0 million - Cash of
$38.1 million - Our mobile app has cumulative downloads of over 550,000, more than double the number from the beginning of the year.
- New semi-automated
Las Vegas distribution center fully operational and handling20% of company volume.
Management Commentary
"Over the last 12 months, we have been working on re-platforming carparts.com to increase performance and shorten our development cycles. I'm proud to announce that carparts.com is now on a best-in-class cloud-based infrastructure which allows us to roll out new features faster than ever.
We have recently rolled out several strategic initiatives, such as our partnership with SimpleTire, offering a full assortment of tires with installation, our new shipping and product protection offering, and VIN lookup that has 30,000 uses in just two weeks. Although we are early in the journey, all these initiatives are seeing take rates and usage higher than anticipated.
Additionally, we are happy to announce the launch of our eBay store in
On the Amazon front, we have recently completed a pilot, leveraging the Amazon fulfillment network to offer a selection of our private label parts. This program offers amazon shoppers our private label products with fast delivery and Prime badging.
Our OE premium brands are up
Third Quarter 2024 Financial Results
Net sales in the third quarter of 2024 were
Gross profit in the third quarter was
Total operating expenses in the third quarter were
Net loss in the third quarter was (
Adjusted EBITDA in the third quarter was
On September 28, 2024, the Company had a cash balance of
2024 Outlook
Due to the unexpected and continued impact from hurricanes Helene and Milton, the Company is narrowing and lowering our full year net revenue guidance by
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, October 29, 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
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 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 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 | Thirteen Weeks | Thirty-Nine Weeks | Thirty-Nine Weeks | ||||||||||
September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||||
Net sales | $ | 144.75 | $ | 166.86 | $ | 455.31 | $ | 519.33 | |||||
Gross profit | $ | 50.98 | $ | 54.82 | $ | 153.29 | $ | 177.81 | |||||
35.2 | % | 32.9 | % | 33.7 | % | 34.2 | % | ||||||
Operating expense | $ | 60.90 | $ | 57.73 | $ | 178.46 | $ | 180.94 | |||||
42.1 | % | 34.6 | % | 39.2 | % | 34.8 | % | ||||||
Net loss | $ | (10.02) | $ | (2.52) | $ | (25.18) | $ | (2.14) | |||||
(6.9) | % | (1.5) | % | (5.5) | % | (0.4) | % | ||||||
Adjusted EBITDA | $ | (1.16) | $ | 3.05 | $ | (0.23) | $ | 18.72 | |||||
(0.8) | % | 1.8 | % | (0.1) | % | 3.6 | % | ||||||
The table below reconciles net loss to Adjusted EBITDA for the periods presented (in thousands): | ||||||||||||
Thirteen Weeks | Thirteen Weeks | Thirty-Nine Weeks | Thirty-Nine Weeks | |||||||||
September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | |||||||||
Net loss | $ | (10,018) | $ | (2,517) | $ | (25,183) | $ | (2,137) | ||||
Depreciation & amortization | 4,956 | 4,430 | 13,436 | 12,596 | ||||||||
Amortization of intangible assets | 12 | 8 | 33 | 28 | ||||||||
Interest (income) expense, net | (35) | (449) | (240) | (323) | ||||||||
Income tax provision | 135 | 114 | 260 | 396 | ||||||||
EBITDA | $ | (4,950) | $ | 1,586 | $ | (11,694) | $ | 10,560 | ||||
Stock compensation expense | $ | 3,057 | $ | 1,462 | $ | 8,967 | $ | 8,158 | ||||
Workforce transition costs(1) | 26 | — | 617 | — | ||||||||
Distribution center costs(2) | 705 | — | 1,882 | — | ||||||||
Adjusted EBITDA | $ | (1,162) | $ | 3,048 | $ | (228) | $ | 18,718 | ||||
___________________________ | |
(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 |
CARPARTS.COM, INC. AND SUBSIDIARIES | ||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||
September 28, | September 30, | September 28, | September 30, | |||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Net sales | $ | 144,751 | $ | 166,864 | $ | 455,310 | $ | 519,334 | ||||
Cost of sales (1) | 93,769 | 112,047 | 302,016 | 341,524 | ||||||||
Gross profit | 50,982 | 54,817 | 153,294 | 177,810 | ||||||||
Operating expense | 60,900 | 57,734 | 178,457 | 180,935 | ||||||||
Loss from operations | (9,918) | (2,917) | (25,163) | (3,125) | ||||||||
Other income (expense): | ||||||||||||
Other income, net | 345 | 874 | 1,136 | 2,427 | ||||||||
Interest expense | (310) | (360) | (896) | (1,043) | ||||||||
Total other income, net | 35 | 514 | 240 | 1,384 | ||||||||
Loss before income taxes | (9,883) | (2,403) | (24,923) | (1,741) | ||||||||
Income tax provision | 135 | 114 | 260 | 396 | ||||||||
Net loss | (10,018) | (2,517) | (25,183) | (2,137) | ||||||||
Other comprehensive (loss) gain: | ||||||||||||
Foreign currency adjustments | — | — | 87 | — | ||||||||
Unrealized (loss) gain on deferred compensation trust assets | — | (21) | — | 27 | ||||||||
Total other comprehensive (loss) gain | — | (21) | 87 | 27 | ||||||||
Comprehensive loss | $ | (10,018) | $ | (2,538) | $ | (25,096) | $ | (2,110) | ||||
Net loss per share: | ||||||||||||
Basic and diluted net loss per share | $ | (0.17) | $ | (0.04) | $ | (0.44) | $ | (0.04) | ||||
Weighted-average common shares outstanding: | ||||||||||||
Shares used in computation of basic and diluted net loss per share | 57,334 | 57,179 | 56,897 | 56,252 | ||||||||
_______________________ |
(1) Excludes depreciation and amortization expense which is included in operating expense. |
CARPARTS.COM, INC. AND SUBSIDIARIES | ||||||
September 28, | December 30, | |||||
2024 | 2023 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 38,105 | $ | 50,951 | ||
Accounts receivable, net | 8,427 | 7,365 | ||||
Inventory, net | 97,235 | 128,901 | ||||
Other current assets | 6,477 | 6,121 | ||||
Total current assets | 150,244 | 193,338 | ||||
Property and equipment, net | 34,494 | 26,389 | ||||
Right-of-use - assets - operating leases, net | 28,029 | 19,542 | ||||
Right-of-use - assets - finance leases, net | 11,808 | 15,255 | ||||
Other non-current assets | 3,064 | 3,331 | ||||
Total assets | $ | 227,639 | $ | 257,855 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 59,715 | $ | 77,851 | ||
Accrued expenses | 19,020 | 20,770 | ||||
Right-of-use - obligation - operating, current | 5,668 | 4,749 | ||||
Right-of-use - obligation - finance, current | 3,655 | 4,308 | ||||
Other current liabilities | 4,843 | 5,308 | ||||
Total current liabilities | 92,901 | 112,986 | ||||
Right-of-use - obligation - operating, non-current | 24,797 | 16,742 | ||||
Right-of-use - obligation - finance, non-current | 9,680 | 12,327 | ||||
Other non-current liabilities | 3,062 | 2,969 | ||||
Total liabilities | 130,440 | 145,024 | ||||
Commitments and contingencies | ||||||
Stockholders' equity: | ||||||
Common stock, | 61 | 60 | ||||
Treasury stock | (11,912) | (11,912) | ||||
Additional paid-in capital | 322,337 | 312,874 | ||||
Accumulated other comprehensive income | 870 | 783 | ||||
Accumulated deficit | (214,157) | (188,974) | ||||
Total stockholders' equity | 97,199 | 112,831 | ||||
Total liabilities and stockholders' equity | $ | 227,639 | $ | 257,855 | ||
CARPARTS.COM, INC. AND SUBSIDIARIES | ||||||
Thirty-Nine Weeks Ended | ||||||
September 28, | September 30, | |||||
2024 | 2023 | |||||
Operating activities | ||||||
Net loss | $ | (25,183) | $ | (2,137) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
Depreciation and amortization expense | 13,436 | 12,596 | ||||
Amortization of intangible assets | 33 | 28 | ||||
Share-based compensation expense | 8,967 | 8,158 | ||||
Stock awards issued for non-employee director service | 31 | 17 | ||||
Stock awards related to officers and directors stock purchase plan from payroll deferral | 7 | — | ||||
Gain from disposition of assets | (70) | (75) | ||||
Amortization of deferred financing costs | 49 | 49 | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | (1,063) | (3,185) | ||||
Inventory | 31,666 | 11,616 | ||||
Other current assets | (355) | 1 | ||||
Other non-current assets | 261 | (199) | ||||
Accounts payable and accrued expenses | (19,352) | 31,208 | ||||
Other current liabilities | (465) | 386 | ||||
Right-of-use obligation - operating leases - current | 1,259 | 613 | ||||
Right-of-use obligation - operating leases - long-term | (772) | (723) | ||||
Other non-current liabilities | 93 | (488) | ||||
Net cash provided by operating activities | 8,542 | 57,865 | ||||
Investing activities | ||||||
Additions to property and equipment | (18,146) | (7,380) | ||||
Payments for intangible assets | (76) | — | ||||
Proceeds from sale of property and equipment | 92 | 83 | ||||
Net cash used in investing activities | (18,130) | (7,297) | ||||
Financing activities | ||||||
Borrowings from revolving loan payable | 168 | 159 | ||||
Payments made on revolving loan payable | (168) | (159) | ||||
Payments on finance leases | (3,243) | (3,592) | ||||
Repurchase of treasury stock | — | (2,151) | ||||
Net proceeds from issuance of common stock for ESPP | 359 | 483 | ||||
Statutory tax withholding payment for share-based compensation | (461) | — | ||||
Proceeds from exercise of stock options | — | 2,604 | ||||
Net cash used in financing activities | (3,345) | (2,656) | ||||
Effect of exchange rate changes on cash | 87 | — | ||||
Net change in cash and cash equivalents | (12,846) | 47,912 | ||||
Cash and cash equivalents, beginning of period | 50,951 | 18,767 | ||||
Cash and cash equivalents, end of period | $ | 38,105 | $ | 66,679 | ||
Supplemental disclosure of non-cash investing and financing activities: | ||||||
Right-of-use operating asset acquired | $ | 12,857 | $ | — | ||
Right-of-use finance asset acquired | $ | — | $ | 784 | ||
Accrued asset purchases | $ | 907 | $ | 658 | ||
Share-based compensation expense capitalized in property and equipment | $ | 561 | $ | 589 | ||
Supplemental disclosure of cash flow information: | ||||||
Cash paid during the period for income taxes | $ | 48 | $ | 180 | ||
Cash paid during the period for interest | $ | 896 | $ | 1,042 | ||
Cash received during the period for interest | $ | 1,136 | $ | 1,365 | ||
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SOURCE CarParts.com, Inc.
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