TORRANCE, Calif., March 1, 2022 /PRNewswire/
-- CarParts.com, Inc. (NASDAQ: PRTS), one of the
leading e-commerce providers of automotive parts and accessories,
is reporting results for the fourth quarter and fiscal year
ended January 1, 2022. The fourth quarter ending
January 1, 2022 included 13 weeks
versus 14 weeks in the fourth quarter ended January 2, 2021. The fiscal year ended
January 1, 2022 included 52 weeks
versus 53 weeks in the fiscal year ended January 2, 2021.
Fourth Quarter 2021 Summary vs. Year-Ago
Quarter
- Net sales increased 15% year over year to $138.3
million, up 23% excluding an extra week in 2020 and increased 89%
on a 2-year stack.
- Gross profit increased 14% to $47.4 million, with gross margin of
34.3%.
- Net loss was ($5.0) million or
($0.10) per diluted share, compared
to net loss of ($3.5) million or
($0.07) per diluted share.
- Adjusted EBITDA increased to $2.6
million vs. $1.0 million.
- Grew inventory to record $138.9
million.
- Management reiterates long term targets of 20-25% compounded
revenue growth and 8-10% EBITDA margin.
Fiscal Year 2021 Summary vs. 2020
- Net sales increased 31% year over year to a
record $582.4 million, up 34%
excluding an extra week in 2020 and increased 89% on a 2-year
stack.
- Gross profit increased 27% to $197.3 million, with gross margin of
33.9%.
- Net loss was ($10.3) million or
($0.20) per share, compared to a net
loss of ($1.5) million or
($0.04) per share. The increase was
primarily driven by non-cash charges.
- Adjusted EBITDA increased to $16.8
million vs. $16.0
million.
Management Commentary
"The last 3 years have been transformational for the company,"
said Lev Peker, CEO of CarParts.com.
"We executed on margin expansion, revenue growth, site
consolidation, technology improvements, and supply chain
expansion. CarParts.com now has a strong foundation for
continued rapid growth."
"With over 300k square feet of
warehouse coming online, a record amount of inventory, and an
amazing team, I have never been more confident in our ability to
aggressively capture share from the $300
billion auto parts industry. Between an aging car fleet and
robust used car sales, we believe there are significant and
enduring tail winds to our business, and we look forward to
continued year over year growth in 2022 and beyond."
Fourth Quarter 2021 Financial Results
Net sales in the fourth quarter of 2021 were $138.3 million compared to $119.7 million in the year-ago
quarter. The increase was primarily driven by continued
strong demand and the expanded capacity from
our Grand Prairie distribution center.
Gross profit in the fourth quarter increased 14% to
$47.4 million compared to
$41.6 million in the fourth
quarter last year, with gross margin of 34.3%.
Total operating expenses in the fourth quarter were $52.0 million compared to $44.9 million in the fourth quarter last year due
to an increase in sales and investments in the business.
Net loss in the fourth quarter was ($5.0) million
compared to a net loss of ($3.5)
million in the fourth quarter last year. The net loss was
driven primarily by an increase in non-cash charges.
Adjusted EBITDA in the fourth quarter increased to $2.6 million compared to $1.0 million in the year-ago quarter.
On January 1, 2022, the Company had no revolver debt, no
outstanding trade letters of credit ("LCs") and a cash balance of
$18.1 million, compared to no
revolver debt, no outstanding trade LCs and a $35.8 million cash
balance at prior fiscal year-end January 2, 2021. The cash was primarily used to
increase our inventory position in support of our Grand Prairie, Texas expansion and planned
second quarter opening of our new Jacksonville, Florida distribution center.
During the fourth quarter and fiscal year ended January 1, 2022, the Company repurchased
$0.5 million, or 40,000 shares, of
its common stock through the 2021 stock repurchase program at an
average price of $11.99 per
share.
Conference Call
CarParts.com CEO Lev Peker and
CFO/COO David Meniane will host a
conference call today via an audio webcast on the Company's website
per the link below, followed by a question and answer period.
Date: Tuesday, March 1, 2022
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 at least 5-10 minutes prior to the start time to
register your name and organization. The audio webcast will be
archived on the Company's website at
www.carparts.com/investor.
If you are unable to join via the webcast, you may dial in to
the call at 833-649-1138 (domestic) or 918-922-3112 (international)
using access code 6890124. A telephone replay will also be
available on the same day through March 15,
2022 at 855-859-2056 (domestic) or 404-537-3406
(international) using access code 6890124.
About CarParts.com, Inc.
With over 25 years of experience, and more than 50 million parts
delivered, we've streamlined our website and sourcing network to
better serve the way drivers get the parts they need. Utilizing the
latest technologies and design principles, we've created an
easy-to-use, mobile-friendly shopping experience that, alongside
our own nationwide distribution network, cuts out the
brick-and-mortar supply chain costs and provides quality parts at a
budget-friendly price.
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," which is a non-GAAP financial measure. Adjusted EBITDA
consists of net loss before (a) interest expense, net;
(b) income tax provision; (c) depreciation and
amortization expense; (d) amortization of intangible
assets; and (e) share-based compensation expense. A
reconciliation of Adjusted EBITDA to net loss is provided
below.
The Company believes that this non-GAAP financial measure
provides important supplemental information to management and
investors. This non-GAAP financial measure reflects an additional
way of viewing aspects of the Company's operations that, when
viewed with the GAAP results and the accompanying reconciliation 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 one measure 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 and the costs associated with the
customs issue, as well as other items that we do not believe are
representative of our ongoing operating performance. Internally,
this non-GAAP measure is 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 Adjusted EBITDA as a
supplemental measure to evaluate the ongoing operations of
companies in our industry.
This non-GAAP financial measure is 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 and our ability to expand and improve our product
offerings, and repurchases by us of outstanding shares of our
common stock. 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, the
impact of the customs issues 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
|
|
Fourteen
Weeks Ended
|
|
Fifty-Two
Weeks Ended
|
|
Fifty-Three
Weeks Ended
|
|
|
|
January 1, 2022
|
|
January 2, 2021
|
|
January 1, 2022
|
|
January 2, 2021
|
|
Net sales
|
|
$
|
138.26
|
|
$
|
119.73
|
|
$
|
582.44
|
|
$
|
443.88
|
|
Gross
profit
|
|
$
|
47.43
|
|
$
|
41.64
|
|
$
|
197.28
|
|
$
|
155.37
|
|
|
|
|
34.3
|
%
|
|
34.8
|
%
|
|
33.9
|
%
|
|
35.0
|
%
|
Operating
expense
|
|
$
|
52.01
|
|
$
|
44.90
|
|
$
|
206.39
|
|
$
|
155.07
|
|
|
|
|
37.6
|
%
|
|
37.5
|
%
|
|
35.4
|
%
|
|
34.9
|
%
|
Net loss
|
|
$
|
(5.00)
|
|
$
|
(3.49)
|
|
$
|
(10.34)
|
|
$
|
(1.51)
|
|
|
|
|
(3.6)
|
%
|
|
(2.9)
|
%
|
|
(1.8)
|
%
|
|
(0.3)
|
%
|
Adjusted
EBITDA
|
|
$
|
2.59
|
|
$
|
1.03
|
|
$
|
16.79
|
|
$
|
16.03
|
|
|
|
|
1.9
|
%
|
|
0.9
|
%
|
|
2.9
|
%
|
|
3.6
|
%
|
The table below
reconciles net loss to Adjusted EBITDA for the periods presented
(in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
Fourteen Weeks
Ended
|
|
Fifty-Two
Weeks Ended
|
|
Fifty-Three
Weeks Ended
|
|
|
January 1, 2022
|
|
January 2, 2021
|
|
January 1, 2022
|
|
January 2, 2021
|
Net loss
|
|
$
|
(5,030)
|
|
$
|
(3,488)
|
|
$
|
(10,339)
|
|
$
|
(1,513)
|
Depreciation & amortization
|
|
|
2,772
|
|
|
2,359
|
|
|
9,895
|
|
|
7,657
|
Amortization of
intangible assets
|
|
|
28
|
|
|
27
|
|
|
110
|
|
|
102
|
Interest expense,
net
|
|
|
268
|
|
|
241
|
|
|
1,089
|
|
|
1,694
|
Taxes
|
|
|
144
|
|
|
108
|
|
|
351
|
|
|
307
|
EBITDA
|
|
$
|
(1,818)
|
|
$
|
(753)
|
|
$
|
1,106
|
|
$
|
8,247
|
Stock compensation
expense
|
|
$
|
4,408
|
|
$
|
1,787
|
|
|
15,685
|
|
|
7,778
|
Adjusted
EBITDA
|
|
$
|
2,590
|
|
$
|
1,034
|
|
$
|
16,791
|
|
$
|
16,025
|
CARPARTS.COM, INC. AND
SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE
OPERATIONS
|
(Unaudited, in
Thousands, Except Per Share Data)
|
|
|
|
Fiscal Year
Ended
|
|
|
January 1,
|
|
January 2,
|
|
December 28,
|
|
|
2022
|
|
2021
|
|
2019
|
Net sales
|
|
$
|
582,440
|
|
$
|
443,884
|
|
$
|
280,657
|
Cost of sales
(1)
|
|
|
385,157
|
|
|
288,518
|
|
|
196,434
|
Gross
profit
|
|
|
197,283
|
|
|
155,366
|
|
|
84,223
|
Operating
expense
|
|
|
206,394
|
|
|
155,071
|
|
|
92,473
|
(Loss) income from
operations
|
|
|
(9,111)
|
|
|
295
|
|
|
(8,250)
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Other, net
|
|
|
238
|
|
|
213
|
|
|
36
|
Interest
expense
|
|
|
(1,115)
|
|
|
(1,714)
|
|
|
(1,897)
|
Total other expense,
net
|
|
|
(877)
|
|
|
(1,501)
|
|
|
(1,861)
|
Loss before income
taxes
|
|
|
(9,988)
|
|
|
(1,206)
|
|
|
(10,111)
|
Income tax
provision
|
|
|
351
|
|
|
307
|
|
|
21,437
|
Net loss
|
|
|
(10,339)
|
|
|
(1,513)
|
|
|
(31,548)
|
Other comprehensive
gain (loss):
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
93
|
|
|
(86)
|
|
|
(52)
|
Actuarial gain (loss)
on defined benefit plan
|
|
|
307
|
|
|
(400)
|
|
|
(313)
|
Unrealized gain on
deferred compensation trust assets
|
|
|
89
|
|
|
57
|
|
|
—
|
Total other
comprehensive gain (loss)
|
|
|
489
|
|
|
(429)
|
|
|
(365)
|
Comprehensive
loss
|
|
$
|
(9,850)
|
|
$
|
(1,942)
|
|
$
|
(31,913)
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
|
$
|
(0.20)
|
|
$
|
(0.04)
|
|
$
|
(0.89)
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Shares used in
computation of basic and diluted net loss per share
|
|
|
51,381
|
|
|
42,333
|
|
|
35,720
|
|
|
|
|
|
(1)
|
Excludes depreciation
and amortization expense which is included in operating
expense.
|
CARPARTS.COM, INC. AND
SUBSIDIARIES
|
|
CONSOLIDATED
BALANCE SHEETS
|
(Unaudited, In
Thousands, Except Share and Per Share Data)
|
|
|
|
January 1,
|
|
January 2,
|
|
|
2022
|
|
2021
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
18,144
|
|
$
|
35,802
|
Accounts receivable,
net
|
|
|
5,015
|
|
|
6,318
|
Inventory,
net
|
|
|
138,851
|
|
|
89,316
|
Other current
assets
|
|
|
6,592
|
|
|
7,939
|
Total current
assets
|
|
|
168,602
|
|
|
139,375
|
Property and
equipment, net
|
|
|
20,736
|
|
|
14,742
|
Right-of-use - assets
- operating leases, net
|
|
|
28,680
|
|
|
17,507
|
Right-of-use - assets
- finance leases, net
|
|
|
15,130
|
|
|
12,457
|
Other non-current
assets
|
|
|
2,188
|
|
|
2,892
|
Total
assets
|
|
$
|
235,336
|
|
$
|
186,973
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
67,372
|
|
$
|
45,302
|
Accrued
expenses
|
|
|
17,517
|
|
|
18,190
|
Customer
deposits
|
|
|
826
|
|
|
630
|
Right-of-use -
obligation - operating, current
|
|
|
4,201
|
|
|
2,527
|
Right-of-use -
obligation - finance, current
|
|
|
2,953
|
|
|
1,583
|
Other current
liabilities
|
|
|
3,925
|
|
|
3,747
|
Total current
liabilities
|
|
|
96,794
|
|
|
71,979
|
Right-of-use -
obligation - operating, non-current
|
|
|
26,367
|
|
|
16,046
|
Right-of-use -
obligation - finance, non-current
|
|
|
12,868
|
|
|
11,428
|
Other non-current
liabilities
|
|
|
3,739
|
|
|
4,031
|
Total
liabilities
|
|
|
139,768
|
|
|
103,484
|
Commitments and
contingencies
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Common stock, $0.001
par value; 100,000 shares authorized; 52,960 and 48,091 shares
issued and outstanding as of January 1, 2022 and
January 2, 2021 (of which 2,565 and 2,525 are treasury stock,
respectively)
|
|
|
56
|
|
|
51
|
Treasury
stock
|
|
|
(7,625)
|
|
|
(7,146)
|
Additional paid-in
capital
|
|
|
282,663
|
|
|
260,260
|
Accumulated other
comprehensive gain (loss)
|
|
|
274
|
|
|
(215)
|
Accumulated
deficit
|
|
|
(179,800)
|
|
|
(169,461)
|
Total stockholders'
equity
|
|
|
95,568
|
|
|
83,489
|
Total liabilities and
stockholders' equity
|
|
$
|
235,336
|
|
$
|
186,973
|
CARPARTS.COM, INC. AND
SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited, In
Thousands)
|
|
|
|
Fiscal Year
Ended
|
|
|
January 1,
|
|
January 2,
|
|
December 28,
|
|
|
2022
|
|
2021
|
|
2019
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(10,339)
|
|
$
|
(1,513)
|
|
$
|
(31,548)
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
|
9,895
|
|
|
7,657
|
|
|
6,252
|
Amortization of
intangible assets
|
|
|
110
|
|
|
102
|
|
|
100
|
Deferred income
taxes
|
|
|
—
|
|
|
—
|
|
|
21,287
|
Share-based
compensation expense
|
|
|
15,685
|
|
|
7,778
|
|
|
3,656
|
Stock awards issued for
non-employee director service
|
|
|
23
|
|
|
24
|
|
|
19
|
Loss from disposition
of assets
|
|
|
52
|
|
|
—
|
|
|
—
|
Amortization of
deferred financing costs
|
|
|
18
|
|
|
18
|
|
|
1
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
1,303
|
|
|
(3,650)
|
|
|
1,058
|
Inventory
|
|
|
(49,535)
|
|
|
(36,815)
|
|
|
(2,874)
|
Other current
assets
|
|
|
1,340
|
|
|
(2,983)
|
|
|
(1,527)
|
Other non-current
assets
|
|
|
551
|
|
|
(1,056)
|
|
|
166
|
Accounts payable and
accrued expenses
|
|
|
22,436
|
|
|
8,398
|
|
|
9,953
|
Other current
liabilities
|
|
|
374
|
|
|
1,120
|
|
|
(99)
|
Right-of-use obligation
- operating leases - current
|
|
|
1,696
|
|
|
1,143
|
|
|
1,364
|
Right-of-use obligation
- operating leases - long-term
|
|
|
(836)
|
|
|
(321)
|
|
|
(1,121)
|
Other non-current
liabilities
|
|
|
239
|
|
|
1,030
|
|
|
190
|
Net cash (used in)
provided by operating activities
|
|
|
(6,988)
|
|
|
(19,068)
|
|
|
6,877
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
Additions to property
and equipment
|
|
|
(11,578)
|
|
|
(9,657)
|
|
|
(6,160)
|
Payment for
intangible assets
|
|
|
—
|
|
|
(101)
|
|
|
—
|
Proceeds from sale of
property and equipment
|
|
|
27
|
|
|
—
|
|
|
—
|
Net cash used in
investing activities
|
|
|
(11,551)
|
|
|
(9,758)
|
|
|
(6,160)
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
Borrowings from
revolving loan payable
|
|
|
131
|
|
|
1,415
|
|
|
14,626
|
Payments made on
revolving loan payable
|
|
|
(131)
|
|
|
(1,415)
|
|
|
(14,626)
|
Proceeds from notes
payable
|
|
|
—
|
|
|
4,107
|
|
|
257
|
Payments of notes
payable
|
|
|
—
|
|
|
(5,333)
|
|
|
(130)
|
Repurchase of
treasury stock
|
|
|
(524)
|
|
|
—
|
|
|
—
|
Payments on finance
leases
|
|
|
(2,164)
|
|
|
(1,005)
|
|
|
(670)
|
Net proceeds from
issuance of common stock
|
|
|
—
|
|
|
60,461
|
|
|
—
|
Statutory tax
withholding payment for share-based compensation
|
|
|
(3)
|
|
|
(93)
|
|
|
(302)
|
Proceeds from
exercise of stock options
|
|
|
3,661
|
|
|
4,257
|
|
|
460
|
Payment of
registration costs of common stock
|
|
|
(68)
|
|
|
—
|
|
|
—
|
Preferred stock
dividends paid
|
|
|
—
|
|
|
(33)
|
|
|
(80)
|
Net cash provided by
(used in) financing activities
|
|
|
902
|
|
|
62,361
|
|
|
(465)
|
Effect of exchange
rate changes on cash
|
|
|
(21)
|
|
|
(6)
|
|
|
(10)
|
Net change in cash
and cash equivalents
|
|
|
(17,658)
|
|
|
33,529
|
|
|
242
|
Cash and cash
equivalents, beginning of period
|
|
|
35,802
|
|
|
2,273
|
|
|
2,031
|
Cash and cash
equivalents, end of period
|
|
$
|
18,144
|
|
$
|
35,802
|
|
$
|
2,273
|
Supplemental
disclosure of non-cash investing and financing
activities:
|
|
|
|
|
|
|
|
|
|
Right-of-use operating
asset acquired
|
|
$
|
15,000
|
|
$
|
15,508
|
|
$
|
1,098
|
Right-of-use finance
asset acquired
|
|
$
|
4,975
|
|
$
|
4,766
|
|
$
|
947
|
Accrued asset
purchases
|
|
$
|
1,764
|
|
$
|
1,822
|
|
$
|
720
|
Share-based
compensation expense capitalized in property and
equipment
|
|
$
|
2,159
|
|
$
|
659
|
|
$
|
55
|
Stock issued for
services
|
|
$
|
778
|
|
$
|
—
|
|
$
|
—
|
Fixed asset purchased
through note payable
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,919
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
|
Cash paid during the
period for income taxes
|
|
$
|
88
|
|
$
|
135
|
|
$
|
95
|
Cash paid during the
period for interest
|
|
$
|
1,102
|
|
$
|
1,834
|
|
$
|
1,896
|
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SOURCE CarParts.com, Inc.