US AUTO PARTS – (PRTS) @ $2.44 ==> “INDUSTRY REPORT” => On e-Commerce “Auto Aftermarket Parts” Trends…. E-Commerce Auto Parts Industry expected to Grow at +18.50% / “CAGR” -over- Next 5 YEARS… MOBILE to Grow +25.00% “CAGR”
PRTS management is betting the company’s “Entire Future” on the success -of- CarParts.com
PRTS management has recently consolidated => “18” Websites -&- Mobile Platforms
And are now migrating nearly “15 Million” monthly website visitors…
Directly to their “Brand New” => CarParts.com / Platform
CarParts.com is a “Web -&- App” based platform
And the Early results have been extremely good…
Conversion Rates are Up +33.00% since the new platform was launched less than 6 Months Ago
I have been following the Platform’s => Progress … Especially in “Mobile”
This platform is just getting => Better -&- Better -&- Better
And the platform is expected to get even “Better -&- Better -&- Better” in the future… For many years to come
If you are invested in (PRTS) today.. Or you are Considering an Investment -in- (PRTS)
Get intimately familiar with ==> CarParts.com
This is where => 100.00% of your Investment will be Riding .. At all Times
I highly recommend those interested….
You should “Click” -on- The “LINK” that I have posted Below
Welcome to the “NEW” and “GREATLY IMPROVED” => CarParts.com
REFERENCE LINK:
https://www.carparts.com/
PRTS management is betting the company’s “Entire Future” on the success -of- CarParts.com
PRTS management has recently consolidated => “18” Websites -&- Mobile Platforms
And are now migrating nearly “15 Million” monthly website visitors…
Directly to their “Brand New” => CarParts.com / Platform
CarParts.com is a “Web -&- App” based platform
And the Early results have been extremely good…
Conversion Rates are Up +33.00% since the new platform was launched less than 6 Months Ago
I have been following the Platform’s => Progress … Especially in “Mobile”
This platform is just getting => Better -&- Better -&- Better
And the platform is expected to get even “Better -&- Better -&- Better” in the future… For many years to come
If you are invested in (PRTS) today.. Or you are Considering an Investment -in- (PRTS)
Get intimately familiar with ==> CarParts.com
This is where => 100.00% of your Investment will be Riding .. At all Times
I highly recommend those interested….
You should “Click” -on- The “LINK” that I have posted Below
Welcome to the “NEW” and “GREATLY IMPROVED” => CarParts.com
REFERENCE LINK:
https://www.carparts.com/
Don't you think the evolution of the EV automobile engine will have less moving parts that do not wear out , and the evolution of printing will decrease the demand ?
Maybe, but how about this as an offsset ?
US Auto - Insurance RatesExpected to Rise 6.00%-to-12.00% in 2020http://bit.ly/32RfMSkBiggest Auto Accident Trends
istracted Driving from Texting -&- Technologieshttp://bit.ly/2Onh6qHLiberalization -of- US Marijuana Laws
Pot-Legal States Struggle to Stem Rise in Driving While Stoned - Bloomberg Government
Car crashes in the first three states to legalize recreational marijuana have soared as law enforcement and regulators struggle to define driving high, let alone determine how to fight it.
about.bgov.com
US AUTO PARTS – (PRTS) @ $1.98 ==> ( VIDEO ) ==> CarParts.com is “Rapidly Expanding” their Sales Force -&- Call Center Operations -for- 2020 and Future Out Years => Very Positive Signal for Future Revenue Growth -&- Cash Flows
- VIDEO #1 – REFERENCE LINK:
http://bit.ly/36QNBp9
VIDEO #2 – REFERENCE LINK:
http://bit.ly/2qX1F0N
Stock analysts at Craig Hallum started coverage on shares of U.S. Auto Parts Network (NASDAQ
RTS) in a research report issued on Wednesday, The Fly reports. The brokerage set a “buy” rating and a $4.00 price target on the specialty retailer’s stock. Craig Hallum’s price target indicates a potential upside of 71.67% from the company’s current price.
RTS) in a research report issued on Wednesday, The Fly reports. The brokerage set a “buy” rating and a $4.00 price target on the specialty retailer’s stock. Craig Hallum’s price target indicates a potential upside of 71.67% from the company’s current price."Hires" Carl Icahn's Top Auto Exec=> Dave Morris
Will Run Global Supply Chain -as- CMO
bwnews.pr/35DLBPT
HALLUM initiates w/ "BUY" Rating
Says shares could be worth:
$10.00-to-$25.00 per/share
Over Next few Years @ 20.00%+ CAGR
Will Run Global Supply Chain -as- CMO
bwnews.pr/35DLBPT
HALLUM initiates w/ "BUY" Rating
Says shares could be worth:
$10.00-to-$25.00 per/share
Over Next few Years @ 20.00%+ CAGR
[h=1]CarParts.com Unveils New Brand Identity that Drives Customer Experience[/h]
“The driving experience is evolving and so is CarParts.com,” said Lev Peker, CEO of US Auto Parts Network. “Drivers have made clear what they are looking for: a streamlined experience tailored to their individual needs. While our name remains the same, our logo, website and tagline have changed to reflect a modernized approach that’s representative of the company’s evolving products and services.”
The redesign focused on user experience, optimizing the vehicle selector and overall interface to help customers find the right parts for their vehicle more quickly, regardless of customers’ automotive expertise. In response to customer feedback, the new website also features streamlined checkout and returns processes, expedited delivery options, and competitive pricing.
The new visual identity conveys the company’s commitment to car owners while maintaining its 22-year history as a trusted and knowledgeable resource for drivers when automotive issues arise. The brand includes a new tagline, “Right Parts, Guaranteed,” referencing how any part purchased from CarParts.com is guaranteed to fit your car or your money back. The refreshed logo and tagline will appear on the company’s website, social channels, advertising, and packaging.
CarParts.com also released its first official ad on YouTube, Facebook, and Instagram, an example of its new branding initiative, with a spirit of approachability and more personal feel that highlights the company’s driver-first mindset.
“A brand is so much more than just a redesign,” said Houman Akhavan, Chief Marketing Officer of US Auto Parts Network. “It reflects who we are as a company, our mission, values, and all we offer our customers. Our customers should always know that we are here for them. The new brand makes our commitment clear.”
The new branding is part of CarParts.com's multifaceted approach to growth — which also includes a great focus on high-margin products, operational efficiency, and careful investments-- that is transforming the company into the go-to aftermarket parts brand.
CarParts.com executives are available to discuss the new brand. To arrange an interview or learn more, please contact Sasha Trosman at press@usautoparts.com.
About CarParts.com
Established in 1999, CarParts.com, a division of US Auto Parts Network, is an e-commerce auto parts retailer. With over 10 million orders shipped, we’ve helped millions of customers across the United States find the right part for their vehicle and get back on the road, hassle-free.
Our vast catalog provides a one-stop shop for quality, discount auto parts and car accessories across a large selection of vehicle makes, including but not limited to Ford, Dodge, Toyota, Honda, Chevy, Volkswagen and more. All of our parts are sourced by industry veterans with a combined 100+ years’ experience in automotive mechanics with rigorous quality control.
nice pullback and a good place to add
Customer-Informed Redesign Takes Stress Out of Automotive Issues
February 24, 2020 10:00 AM Eastern Standard Time
CARSON, Calif.--(BUSINESS WIRE)--(NASDAQ: PRTS). As it seeks to simplify and improve the car parts buying and vehicle ownership experience, CarParts.com—a division of US Auto Parts Network and one of the largest online providers of automotive aftermarket parts and accessories—debuted a new website, logo and tagline. The rebrand is the culmination of detailed user testing and research as well as an extensive review of customer feedback, and will reflect the company’s comprehensive offerings, value and mission to make online parts shopping even easier.“The driving experience is evolving and so is CarParts.com,” said Lev Peker, CEO of US Auto Parts Network. “Drivers have made clear what they are looking for: a streamlined experience tailored to their individual needs. While our name remains the same, our logo, website and tagline have changed to reflect a modernized approach that’s representative of the company’s evolving products and services.”
The redesign focused on user experience, optimizing the vehicle selector and overall interface to help customers find the right parts for their vehicle more quickly, regardless of customers’ automotive expertise. In response to customer feedback, the new website also features streamlined checkout and returns processes, expedited delivery options, and competitive pricing.
The new visual identity conveys the company’s commitment to car owners while maintaining its 22-year history as a trusted and knowledgeable resource for drivers when automotive issues arise. The brand includes a new tagline, “Right Parts, Guaranteed,” referencing how any part purchased from CarParts.com is guaranteed to fit your car or your money back. The refreshed logo and tagline will appear on the company’s website, social channels, advertising, and packaging.
CarParts.com also released its first official ad on YouTube, Facebook, and Instagram, an example of its new branding initiative, with a spirit of approachability and more personal feel that highlights the company’s driver-first mindset.
“A brand is so much more than just a redesign,” said Houman Akhavan, Chief Marketing Officer of US Auto Parts Network. “It reflects who we are as a company, our mission, values, and all we offer our customers. Our customers should always know that we are here for them. The new brand makes our commitment clear.”
The new branding is part of CarParts.com's multifaceted approach to growth — which also includes a great focus on high-margin products, operational efficiency, and careful investments-- that is transforming the company into the go-to aftermarket parts brand.
CarParts.com executives are available to discuss the new brand. To arrange an interview or learn more, please contact Sasha Trosman at press@usautoparts.com.
About CarParts.com
Established in 1999, CarParts.com, a division of US Auto Parts Network, is an e-commerce auto parts retailer. With over 10 million orders shipped, we’ve helped millions of customers across the United States find the right part for their vehicle and get back on the road, hassle-free.
Our vast catalog provides a one-stop shop for quality, discount auto parts and car accessories across a large selection of vehicle makes, including but not limited to Ford, Dodge, Toyota, Honda, Chevy, Volkswagen and more. All of our parts are sourced by industry veterans with a combined 100+ years’ experience in automotive mechanics with rigorous quality control.
nice pullback and a good place to add
[FONT="] Q4 Private Label Sales up 15%; Drives Strongest Level of Gross Margin Since 2011 -
CARSON, Calif., March 9, 2020 /PRNewswire/ -- U.S. Auto Parts Network, Inc. (NASDAQ: PRTS), one of the largest online providers of aftermarket automotive parts and accessories, is reporting results for the fourth quarter and full year ended December 31, 2019.
U.S. Auto Parts logo (PRNewsfoto/U.S. Auto Parts Network, Inc.)
More
Fourth Quarter 2019 Summary vs. Year-Ago Quarter
"The fourth quarter marked a key inflection point in our business, as the strategies and initiatives we deployed over the course of 2019 began to materialize in our results," said Lev Peker, CEO of U.S. Auto Parts. "Our elimination of unprofitable revenue and strict focus on private label sales led to our strongest level of gross margin in eight years. Further, our implementation of various cost reduction initiatives has created a leaner and more efficient operating model, which enabled us to more than double adjusted EBITDA to $1.7 million during the quarter. We began our turn-around strategy roughly one year ago, and these exceptional improvements tell us that our strategy is working.
"While we are very proud of our work last year and the improvements we have made. We view these recent results as a guidepost. They are proof we are moving in the right direction, but we do not for a minute think our work is done. There is still plenty we want to accomplish and improve upon, and we have taken concrete steps in 2019 to position U.S. Auto Parts to make further improvements in 2020. In fact, through the first two months of this year, we are currently on pace to generate more than 30% growth in private label sales compared to Q1 2019, resulting in double digit growth in the overall business, while maintaining our strong level of gross margin. We are still in the early innings of taking U.S. Auto Parts to its full potential."
Fourth Quarter 2019 Financial Results
Net sales in the fourth quarter of 2019 were $63.0 million compared to $64.7 million in the year-ago quarter. As expected, the decline was driven by a proactive reduction of low-margin and unprofitable branded sales, partially offset by a 15% increase in higher-margin private label sales. Private label sales accounted for approximately 90% of sales in the fourth quarter of 2019 compared to 76% in the year ago period.
Gross profit in the fourth quarter increased 28% to $21.2 million compared to $16.6 million last year, with gross margin up 800 bps to 33.7% compared to 25.6%. These improvements were driven by strong growth in private label sales, as well as inventory mix and higher in-stock rates.
Total operating expenses in the fourth quarter were $23.3 million compared to $21.3 million in the fourth quarter last year. The increase was driven by personnel costs related to the new DC & marketing spend.
Net loss in the fourth quarter increased to $(25.1) million compared to $(4.5) million in the fourth quarter last year. This was driven by a valuation allowance of $(21.5) million related to our tax deferred assets.
Adjusted EBITDA in the fourth quarter increased to $1.7 million compared to $0.7M in the year-ago quarter, with the improvements driven by the aforementioned increase in higher-margin private label sales and prudent cost and inventory management.
At fiscal year-end December 28, 2019, the company had no revolver debt and a cash balance of $2.3 million compared to no debt and a $2.0 million cash balance at December 29, 2018.
Conference Call
U.S. Auto Parts CEO Lev Peker and CFO/COO David Meniane will host the conference call, followed by a question and answer period.
Date: Monday, March 9, 2020
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 877‑407‑9039
International dial-in number: 201‑689‑8470
Conference ID: 13698758
Please call the conference telephone number 5‑10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1‑949‑574‑3860.
The conference call will be broadcast live. A telephone replay of the conference call will also be available on the same day through March 23, 2020.
Toll-free replay number: 844‑512‑2921
International replay number: 412‑317‑6671
Replay ID: 13698758
About U.S. Auto Parts Network, Inc.
Established in 1995, U.S. Auto Parts is a leading online provider of automotive aftermarket parts, including collision, engine, and performance parts and accessories. Through the Company's network of websites, U.S. Auto Parts provides consumers with a broad selection of competitively priced products, all mapped by a proprietary database with applications based on vehicle makes, models and years. U.S. Auto Parts' flagship websites include www.carparts.com, www.jcwhitney.com, and www.autopartswarehouse.com as well as the Company's corporate website at www.usautoparts.com.
U.S. Auto Parts is headquartered in Carson, 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 income before (a) interest expense, net; (b) income tax provision; (c) depreciation and amortization expense; (d) amortization of intangible assets; (e) share-based compensation expense; (f) costs associated with our customs issue; and (g) costs associated with the executive transitions.
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, its future operating results and financial condition, the impact of changes in our key operating metrics, and our potential growth and our liquidity requirements. 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.usautoparts.net 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:
Sean Mansouri, CFA or Cody Slach
Gateway Investor Relations
949‑574‑3860
PRTS@gatewayir.com
Cision
More
View original content to download multimedia:http://www.prnewswire.com/news-rele...ter-and-full-year-2019-results-301020059.html
SOURCE U.S. Auto Parts Network, Inc.
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CARSON, Calif., March 9, 2020 /PRNewswire/ -- U.S. Auto Parts Network, Inc. (NASDAQ: PRTS), one of the largest online providers of aftermarket automotive parts and accessories, is reporting results for the fourth quarter and full year ended December 31, 2019.
U.S. Auto Parts logo (PRNewsfoto/U.S. Auto Parts Network, Inc.)
More
Fourth Quarter 2019 Summary vs. Year-Ago Quarter
- Private label sales increased 15% Y/Y.
- Gross profit increased 28% to $21.2 million, with gross margin up 800 basis points to 33.7%.
- Net sales declined as expected to $63.0 million compared to $64.7 million due to reduction of unprofitable business lines.
- Net loss was $(25.1) million or $(0.70) per share, compared to a net loss of $(4.5) million or $(0.13) per share. Q4 2019 includes a $(21.5) million deferred tax valuation allowance.
- Adjusted EBITDA increased 137% to $1.7 million.
- Ended the quarter with no revolver debt.
- Private label sales increased 6% Y/Y.
- Gross profit increased 7% to $84.2 million, with gross margin up 280 basis points to 30.0%.
- Net sales declined as expected to $280.7 million compared to $289.5 million due to reduction of unprofitable business lines.
- Net loss was $(31.5) million or $(0.89) per share, compared to a net loss of $(4.9) million or $(0.14) per share. The change was driven by the deferred tax valuation allowance and transition cost and detention related costs.
- Adjusted EBITDA was $4.5 million vs. $10.4 million.
"The fourth quarter marked a key inflection point in our business, as the strategies and initiatives we deployed over the course of 2019 began to materialize in our results," said Lev Peker, CEO of U.S. Auto Parts. "Our elimination of unprofitable revenue and strict focus on private label sales led to our strongest level of gross margin in eight years. Further, our implementation of various cost reduction initiatives has created a leaner and more efficient operating model, which enabled us to more than double adjusted EBITDA to $1.7 million during the quarter. We began our turn-around strategy roughly one year ago, and these exceptional improvements tell us that our strategy is working.
"While we are very proud of our work last year and the improvements we have made. We view these recent results as a guidepost. They are proof we are moving in the right direction, but we do not for a minute think our work is done. There is still plenty we want to accomplish and improve upon, and we have taken concrete steps in 2019 to position U.S. Auto Parts to make further improvements in 2020. In fact, through the first two months of this year, we are currently on pace to generate more than 30% growth in private label sales compared to Q1 2019, resulting in double digit growth in the overall business, while maintaining our strong level of gross margin. We are still in the early innings of taking U.S. Auto Parts to its full potential."
Fourth Quarter 2019 Financial Results
Net sales in the fourth quarter of 2019 were $63.0 million compared to $64.7 million in the year-ago quarter. As expected, the decline was driven by a proactive reduction of low-margin and unprofitable branded sales, partially offset by a 15% increase in higher-margin private label sales. Private label sales accounted for approximately 90% of sales in the fourth quarter of 2019 compared to 76% in the year ago period.
Gross profit in the fourth quarter increased 28% to $21.2 million compared to $16.6 million last year, with gross margin up 800 bps to 33.7% compared to 25.6%. These improvements were driven by strong growth in private label sales, as well as inventory mix and higher in-stock rates.
Total operating expenses in the fourth quarter were $23.3 million compared to $21.3 million in the fourth quarter last year. The increase was driven by personnel costs related to the new DC & marketing spend.
Net loss in the fourth quarter increased to $(25.1) million compared to $(4.5) million in the fourth quarter last year. This was driven by a valuation allowance of $(21.5) million related to our tax deferred assets.
Adjusted EBITDA in the fourth quarter increased to $1.7 million compared to $0.7M in the year-ago quarter, with the improvements driven by the aforementioned increase in higher-margin private label sales and prudent cost and inventory management.
At fiscal year-end December 28, 2019, the company had no revolver debt and a cash balance of $2.3 million compared to no debt and a $2.0 million cash balance at December 29, 2018.
| Key Operating Metrics | ||||||||||
| Q4 2019 | Q4 2018 | Q3 2019 | ||||||||
| Conversion Rate 1 | 2.8 | % | 2.5 | % | 3.2 | % | ||||
| Unique Visitors (millions) 1 | 13.3 | 16.5 | 13.8 | |||||||
| Number of Orders - E-commerce only (thousands) | 375 | 415 | 441 | |||||||
| Number of Orders - Online Marketplace (thousands) | 432 | 346 | 412 | |||||||
| Total Number of Internet Orders (thousands) | 807 | 761 | 853 | |||||||
| Revenue Capture (% Sales) 2 | 90.7 | % | 86.7 | % | 89.3 | % | ||||
| Average Order Value - Total Internet Orders | $ | 77 | $ | 85 | $ | 78 |
| _________________________ | |
| 1. | Excludes online marketplaces. |
| 2. | Revenue capture is the amount of actual dollars retained after taking into consideration returns, credit card declines and product fulfillment and excludes online marketplaces. |
Conference Call
U.S. Auto Parts CEO Lev Peker and CFO/COO David Meniane will host the conference call, followed by a question and answer period.
Date: Monday, March 9, 2020
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 877‑407‑9039
International dial-in number: 201‑689‑8470
Conference ID: 13698758
Please call the conference telephone number 5‑10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1‑949‑574‑3860.
The conference call will be broadcast live. A telephone replay of the conference call will also be available on the same day through March 23, 2020.
Toll-free replay number: 844‑512‑2921
International replay number: 412‑317‑6671
Replay ID: 13698758
About U.S. Auto Parts Network, Inc.
Established in 1995, U.S. Auto Parts is a leading online provider of automotive aftermarket parts, including collision, engine, and performance parts and accessories. Through the Company's network of websites, U.S. Auto Parts provides consumers with a broad selection of competitively priced products, all mapped by a proprietary database with applications based on vehicle makes, models and years. U.S. Auto Parts' flagship websites include www.carparts.com, www.jcwhitney.com, and www.autopartswarehouse.com as well as the Company's corporate website at www.usautoparts.com.
U.S. Auto Parts is headquartered in Carson, 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 income before (a) interest expense, net; (b) income tax provision; (c) depreciation and amortization expense; (d) amortization of intangible assets; (e) share-based compensation expense; (f) costs associated with our customs issue; and (g) costs associated with the executive transitions.
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, its future operating results and financial condition, the impact of changes in our key operating metrics, and our potential growth and our liquidity requirements. 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.usautoparts.net 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:
Sean Mansouri, CFA or Cody Slach
Gateway Investor Relations
949‑574‑3860
PRTS@gatewayir.com
| Summarized information for our continuing operations for the periods presented is as follows (in millions): | |||||||||||||
| Thirteen Weeks Ended | Fifty-two Weeks Ended | ||||||||||||
| December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | ||||||||||
| Net sales | $ | 62.96 | $ | 64.65 | $ | 280.66 | $ | 289.47 | |||||
| Gross profit | $ | 21.19 | $ | 16.57 | $ | 84.22 | $ | 78.72 | |||||
| 33.7 | % | 25.6 | % | 30.0 | % | 27.2 | % | ||||||
| Operating expenses | $ | 23.33 | $ | 21.26 | $ | 92.47 | $ | 83.73 | |||||
| 37.1 | % | 32.9 | % | 32.9 | % | 28.9 | % | ||||||
| (Loss) income from operations | $ | (2.14) | $ | (4.69) | $ | (8.25) | $ | (5.01) | |||||
| (3.4) | % | (7.3) | % | (2.9) | % | (1.7) | % | ||||||
| Net loss | $ | (25.09) | $ | (4.48) | $ | (31.55) | $ | (4.89) | |||||
| (39.8) | % | (6.9) | % | (11.2) | % | (1.7) | % | ||||||
| Adjusted EBITDA | $ | 1.69 | $ | 0.71 | $ | 4.53 | $ | 10.38 | |||||
| 2.7 | % | 1.1 | % | 1.6 | % | 3.6 | % |
| The table below reconciles net loss to Adjusted EBITDA for the periods presented (in thousands): | ||||||||||||
| Thirteen Weeks Ended | Fifty-two Weeks Ended | |||||||||||
| December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | |||||||||
| Net loss | (25,087) | (4,480) | (31,548) | (4,889) | ||||||||
| Depreciation & amortization | 1,680 | 1,390 | 6,247 | 5,802 | ||||||||
| Amortization of intangible assets | 25 | 45 | 100 | 185 | ||||||||
| Interest expense, net | 486 | 380 | 1,897 | 1,595 | ||||||||
| Taxes | 22,455 | (600) | 21,437 | (329) | ||||||||
| EBITDA | $ | (441) | $ | (3,265) | $ | (1,867) | $ | 2,364 | ||||
| Stock comp expense | 1,701 | 1,891 | 3,656 | 3,595 | ||||||||
| Employee transition costs(1) | 387 | 1,315 | 2,274 | 774 | ||||||||
| Customs costs(2) | 46 | 774 | 464 | 5,046 | ||||||||
| Proceeds from AutoMD sale | — | — | — | (1,400) | ||||||||
| Adjusted EBITDA | $ | 1,693 | $ | 715 | $ | 4,527 | $ | 10,379 |
| ___________________________ | |
| (1) | We incurred costs related to the transition of executive management related to severance, recruiting, hiring bonuses, and relocation costs. |
| (2) | We incurred port and carrier fees and legal costs associated with our customs related issues. |
| U.S. AUTO PARTS NETWORK, INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS (Unaudited, in Thousands, Except Per Share Data) | |||||||
| Fiscal Year Ended | |||||||
| December 28, | December 29, | ||||||
| 2019 | 2018 | ||||||
| Net sales | $ | 280,657 | $ | 289,467 | |||
| Cost of sales (1) | 196,434 | 210,746 | |||||
| Gross profit | 84,223 | 78,721 | |||||
| Operating expenses: | |||||||
| Marketing | 44,341 | 38,081 | |||||
| General and administrative | 17,744 | 19,964 | |||||
| Fulfillment | 24,946 | 21,310 | |||||
| Technology | 5,342 | 4,188 | |||||
| Amortization of intangible assets | 100 | 185 | |||||
| Total operating expenses | 92,473 | 83,728 | |||||
| Loss from operations | (8,250) | (5,007) | |||||
| Other income (expense): | |||||||
| Other, net | 36 | 1,387 | |||||
| Interest expense | (1,897) | (1,598) | |||||
| Total other expense, net | (1,861) | (211) | |||||
| Loss before income taxes | (10,111) | (5,218) | |||||
| Income tax (benefit) provision | 21,437 | (329) | |||||
| Net loss | (31,548) | (4,889) | |||||
| Other comprehensive income: | |||||||
| Foreign currency translation adjustments | (52) | 22 | |||||
| Actuarial loss on defined benefit plan | (313) | — | |||||
| Total other comprehensive income | (365) | 22 | |||||
| Comprehensive loss | $ | (31,913) | $ | (4,867) | |||
| Loss per share: | |||||||
| Basic and diluted net loss per share | $ | (0.89) | $ | (0.14) | |||
| Weighted average common shares outstanding: | |||||||
| Shares used in computation of basic and diluted net loss per share | 35,720 | 34,941 |
| ___________________________ | |
| (1) | Excludes depreciation and amortization expense which is included in marketing, general and administrative and fulfillment expense. |
| U.S. AUTO PARTS NETWORK, INC. AND SUBSIDIARIES | ||||||
| CONSOLIDATED BALANCE SHEETS (Unaudited, In Thousands, Except Par and Liquidation Value) | ||||||
| December 28, | December 29, | |||||
| 2019 | 2018 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 2,273 | $ | 2,031 | ||
| Accounts receivable, net | 2,669 | 3,727 | ||||
| Inventory | 52,500 | 49,626 | ||||
| Other current assets | 4,931 | 3,401 | ||||
| Total current assets | 62,373 | 58,785 | ||||
| Deferred income taxes | — | 21,833 | ||||
| Property and equipment, net | 9,650 | 15,184 | ||||
| Right-of-use - assets - operating leases, net | 4,544 | — | ||||
| Right-of-use - assets - financing leases, net | 9,011 | — | ||||
| Other non-current assets | 2,368 | 2,163 | ||||
| Total assets | $ | 87,946 | $ | 97,965 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 44,433 | $ | 34,039 | ||
| Accrued expenses | 9,519 | 10,247 | ||||
| Current portion of capital leases payable | — | 594 | ||||
| Customer deposits | 652 | 521 | ||||
| Notes payable, current | 729 | — | ||||
| Right-of-use - obligation - operating, current | 1,368 | — | ||||
| Right-of-use - obligation - finance, current | 640 | — | ||||
| Other current liabilities | 2,605 | 2,918 | ||||
| Total current liabilities | 59,946 | 48,319 | ||||
| Capital leases payable, net of current | 8,559 | |||||
| Notes payable, non-current | 1,060 | — | ||||
| Right-of-use - obligation - operating, non-current | 3,419 | — | ||||
| Right-of-use - obligation - finance, non-current | 8,627 | — | ||||
| Other non-current liabilities | 2,514 | 2,265 | ||||
| Total liabilities | 75,566 | 59,143 | ||||
| Commitments and contingencies | ||||||
| Stockholders' equity: | ||||||
| Series A convertible preferred stock, $0.001 par value; $1.45 per share liquidation value or aggregate of $6,017; 4,150 shares authorized; 2,771 shares issued and outstanding at both December 28, 2019 and December 29, 2018 | 3 | 3 | ||||
| Common stock, $0.001 par value; 100,000 shares authorized; 36,167 and 34,992 shares issued and outstanding at December 28, 2019 and December 29, 2018 (of which 2,525 are treasury stock) | 38 | 38 | ||||
| Treasury stock | (7,146) | (7,146) | ||||
| Additional paid-in capital | 187,147 | 183,139 | ||||
| Accumulated other comprehensive income | 214 | 579 | ||||
| Accumulated deficit | (167,876) | (137,791) | ||||
| Total stockholders' equity | 12,380 | 38,822 | ||||
| Total liabilities and stockholders' equity | $ | 87,946 | $ | 97,965 |
| U.S. AUTO PARTS NETWORK, INC. AND SUBSIDIARIES | ||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, In Thousands) | ||||||
| Fiscal Year Ended | ||||||
| December 28, | December 29, | |||||
| 2019 | 2018 | |||||
| Operating activities | ||||||
| Net loss | $ | (31,548) | $ | (4,889) | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
| Depreciation and amortization expense | 6,252 | 5,802 | ||||
| Amortization of intangible assets | 100 | 185 | ||||
| Deferred income taxes | 21,287 | (446) | ||||
| Share-based compensation expense | 3,656 | 3,595 | ||||
| Stock awards issued for non-employee director service | 19 | 14 | ||||
| Amortization of deferred financing costs | 1 | 4 | ||||
| Loss from disposition of assets | — | 1 | ||||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable | 1,058 | (1,257) | ||||
| Inventory | (2,874) | 4,605 | ||||
| Other current assets | (1,527) | (1,326) | ||||
| Other non-current assets | 166 | 150 | ||||
| Accounts payable and accrued expenses | 9,953 | 742 | ||||
| Other current liabilities | (99) | (1,135) | ||||
| Right-of-Use Obligation - Operating Leases - Current | 1,364 | — | ||||
| Right-of-Use Obligation - Operating Leases - Long-term | (1,121) | — | ||||
| Other non-current liabilities | 190 | 136 | ||||
| Net cash provided by operating activities | 6,877 | 6,181 | ||||
| Investing activities | ||||||
| Additions to property and equipment | (6,160) | (5,689) | ||||
| Proceeds from sale of property and equipment | — | 1 | ||||
| Net cash used in investing activities | (6,160) | (5,688) | ||||
| Financing activities | ||||||
| Borrowings from revolving loan payable | 14,626 | 3,316 | ||||
| Payments made on revolving loan payable | (14,626) | (3,316) | ||||
| Proceeds from notes payable | 257 | — | ||||
| Payment of notes payable | (130) | — | ||||
| Payments on capital leases | (670) | (598) | ||||
| Statutory tax withholding payment for share-based compensation | (302) | (430) | ||||
| Proceeds from exercise of stock options | 460 | 6 | ||||
| Payment of liabilities related to financing activities | — | (100) | ||||
| Preferred stock dividends paid | (80) | (161) | ||||
| Net cash used in financing activities | (465) | (1,283) | ||||
| Effect of exchange rate changes on cash | (10) | (29) | ||||
| Net change in cash and cash equivalents | 242 | (819) | ||||
| Cash and cash equivalents, beginning of period | 2,031 | 2,850 | ||||
| Cash and cash equivalents, end of period | $ | 2,273 | $ | 2,031 | ||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||
| Right-of-use operating asset acquired | $ | 1,098 | $ | — | ||
| Right-of-use financed asset acquired | $ | 947 | $ | — | ||
| Accrued asset purchases | $ | 720 | $ | 1,008 | ||
| Fixed asset purchased through note payable | $ | 1,919 | $ | — | ||
| Supplemental disclosure of cash flow information: | ||||||
| Cash paid during the period for income taxes | $ | 95 | $ | 81 | ||
| Cash paid during the period for interest | $ | 1,896 | $ | 1,606 |
Cision
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View original content to download multimedia:http://www.prnewswire.com/news-rele...ter-and-full-year-2019-results-301020059.html
SOURCE U.S. Auto Parts Network, Inc.
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US AUTO PARTS – (PRTS) @ $1.90 ==> Carparts.com Web Traffic…. Was Up a Massive => +34.00% -in- March … The Company’s Biggest Growth Rate -in- Decades
US AUTO PARTS – (PRTS)
Source: comScore
Web Traffic data and analytics researchers “ComScore” … Released their March web traffic data yesterday
“ComScore” reports that Carparts.com unique visitor traffic…. Was up a massive +34.00% -in- March
Further evidence that the PRTS business is gaining => Significant Momentum -&- Traction
Also… PRTS is very likely benefiting handsomely from this COVID nightmare
Triggering an accelerated “dynamics shift” …
A clear change in the manner that Americans are purchasing their aftermarket car parts these days
Appears that folks are shifting away, if not shunning the big box brick-and-mortar car parts retailers of late
Amid the Federal “Shelter-in-Place” restrictions and the general fears about going outdoors…
All brought about by the COVID pandemic
Based upon these robust web visitation growth patterns that are emerging -for- CarParts.com
I think there should be “plenty of upside” in the upcoming Q’1 PRTS earnings estimates… Which should be out in early May
And I would further expect very strong forward looking commentary -for- The Q’2 period and beyond
The PRTS shares remain extremely, extremely cheap
Trading at just 4.6x times EV/EBITDA… And just 0.20x EV/Sales
Ridiculously cheap multiples for an “Online Retailer” beginning to see explosive web traffic patterns and record gross profit margins
There aren’t a ton of American Companies that are actually benefiting from this COVID crisis right now
So PRTS really has an opportunity here … To execute … And then just let their business fundamentals really shine through
PRTS stock now looks poised to be heading => Much, Much Higher -in- Share Price
US AUTO PARTS – (PRTS)
Source: comScore
Web Traffic data and analytics researchers “ComScore” … Released their March web traffic data yesterday
“ComScore” reports that Carparts.com unique visitor traffic…. Was up a massive +34.00% -in- March
Further evidence that the PRTS business is gaining => Significant Momentum -&- Traction
Also… PRTS is very likely benefiting handsomely from this COVID nightmare
Triggering an accelerated “dynamics shift” …
A clear change in the manner that Americans are purchasing their aftermarket car parts these days
Appears that folks are shifting away, if not shunning the big box brick-and-mortar car parts retailers of late
Amid the Federal “Shelter-in-Place” restrictions and the general fears about going outdoors…
All brought about by the COVID pandemic
Based upon these robust web visitation growth patterns that are emerging -for- CarParts.com
I think there should be “plenty of upside” in the upcoming Q’1 PRTS earnings estimates… Which should be out in early May
And I would further expect very strong forward looking commentary -for- The Q’2 period and beyond
The PRTS shares remain extremely, extremely cheap
Trading at just 4.6x times EV/EBITDA… And just 0.20x EV/Sales
Ridiculously cheap multiples for an “Online Retailer” beginning to see explosive web traffic patterns and record gross profit margins
There aren’t a ton of American Companies that are actually benefiting from this COVID crisis right now
So PRTS really has an opportunity here … To execute … And then just let their business fundamentals really shine through
PRTS stock now looks poised to be heading => Much, Much Higher -in- Share Price
|
|
ORRANCE, Calif., May 6, 2020 /PRNewswire/ -- U.S. Auto Parts Network, Inc. (NASDAQ: PRTS), one of the largest online providers of aftermarket automotive parts and accessories, is reporting results for the first quarter ended March 28, 2020.
Q1 2020 and Current QTD Highlights vs. Year-Ago Period
https://www.prnewswire.com/news-releases/us-auto-parts-reports-record-sales-for-first-quarter-2020-301054229.html
Q1 2020 and Current QTD Highlights vs. Year-Ago Period
- Q1 net sales increased 18% to a company record $87.8 million, with a 42% increase in private label sales.
- Q1 gross profit increased 48% to $29.8 million, the highest quarterly gross profit in nearly a decade, with gross margin up 700 basis points to 33.9%.
- Q1 net loss improved to $(1.0) million or $(0.03) per share, compared to a net loss of $(3.6) million or $(0.10) per share.
- Q1 adjusted EBITDA increased significantly to $4.3 million compared to $(0.1) million.
- Net sales through the first five weeks of Q2 were up more than 40%.
https://www.prnewswire.com/news-releases/us-auto-parts-reports-record-sales-for-first-quarter-2020-301054229.html
U.S. Auto Parts price target raised to $10 from $5 at Barrington
Barrington analyst Gary Prestopino raised the firm's price target on U.S. Auto Parts to $10 from $5 and keeps an Outperform rating on the shares. The analyst raised estimates for the company to reflect its better than expected Q1 results and the positive impact of management's efforts at driving growth and efficiencies. U.S. Auto Parts continues to expect strong growth in adjusted EBITDA in 2020, Prestopino tells investors in a research note.
Barrington analyst Gary Prestopino raised the firm's price target on U.S. Auto Parts to $10 from $5 and keeps an Outperform rating on the shares. The analyst raised estimates for the company to reflect its better than expected Q1 results and the positive impact of management's efforts at driving growth and efficiencies. U.S. Auto Parts continues to expect strong growth in adjusted EBITDA in 2020, Prestopino tells investors in a research note.
Premarket
CarParts.com to Open Cutting-Edge Grand Prairie, Texas Distribution Center
June 01 2020 - 08:00AM
Business Wire
Center Will Create 150 Jobs and $10 Million in Economic Impact in First 18 Months, Enable Faster Delivery for Customers
U.S. Auto Parts Network, Inc. (NASDAQ: PRTS), one of the largest online providers of automotive aftermarket parts and accessories, today announced it would open a new 210,000 square foot distribution center in Grand Prairie, Texas. The distribution center, slated to begin operations in late 2020, will create a minimum of 150 new jobs and $10 million in economic impact in its first 18 months alone. When operational, the facility will deliver new parts to customers across the South and Southwest servicing all of the brands U.S. Auto Parts Network has to offer, including CarParts.com and JC Whitney.
“CarParts.com has been experiencing exponential growth, and we needed to build this distribution center to stay ahead of demand,” said U.S. Auto Parts Network CEO Lev Peker. “We expect this trend to accelerate as customers become ever more comfortable buying car parts online. For so many of our customers, getting a part quickly is not optional – it is essential to keeping their vehicle on the road and helping them get to work. Thanks to this distribution center, we will be able to reach 64% of the country in one day or less.”
“Everything is bigger in Texas, physical distances included,” he continued. “If we want to get our Texan customers their parts quickly, we had to build a distribution center here!”
The facility will include a “will call” window where local residents who have ordered online can pick up their parts on-site.
The mayor of Grand Prairie, Ron Jensen, was happy to welcome the new members of the community. “We are proud to be working closely with companies like U.S. Auto Parts Network to bring jobs to Texas,” he said. “Texas has seen far too many job losses recently, so we are humbled to see a growing company like U.S. Auto Parts Network put down roots and create jobs here in Grand Prairie.”
For David Meniane, U.S. Auto Parts Network’s COO, building the distribution center in Grand Prairie was an easy decision. “Grand Prairie had everything we needed – a skilled workforce, a friendly business climate, and proximity to many of our best customers. As ecommerce – and the online automotive aftermarket in particular – grow exponentially, we are counting on this distribution center to ensure we get parts to our customers as quickly as possible.”
People interested in employment at the Grand Prairie distribution center should visit https://www.carparts.com/careers/ for updates.
About CarParts.com
Established in 1999, CarParts.com is an e-commerce auto parts retailer that specializes in OE replacement collision, repair, and maintenance parts. With over 50 million parts delivered, we've helped millions of drivers across the United States find the right parts to fix their cars and keep their vehicles on the road. Our vehicle selector and easy-to-navigate, mobile-friendly website offers customers guaranteed fitment and a convenient online shopping experience. Paired with our 90-day return policy and satisfaction guarantee, CarParts.com makes it easier than ever to get the parts you need delivered straight to your door.
Legal Disclaimer
The information provided herein may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include statements regarding our plans, strategies, business prospects, growth opportunities, changes and trends in our business and expansion into new markets. These forward-looking statements are based on management's current expectations, estimates, forecasts and projections about the Company and are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated in the forward-looking statements, including without limitation, the following, our future operating and financial results, financial expectations, expected growth and strategies, key operating metrics and current business indicators, capital needs and deployment, liquidity, product offerings, customers and suppliers and competition, and other risks and uncertainties discussed under Item 1A - Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 28, 2019, as updated by our subsequent periodic reports. Forward-looking statements contained in this press release are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200601005156/en/
Media Inquiries:
Sasha Trosman
(424) 702-1455 ext. 258
press@usautoparts.com
Investor Relations:
Sean Mansouri, CFA
Gateway Investor Relations
(949) 574-3860
PRTS@gatewayir.com
