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CarParts.com Reports Record Fourth Quarter and Full Year 2020 Results


Source: CarParts.com

Record Q4 Sales of $119.7 million, up 90%. Record Fiscal Year Sales of $443.9 million, up 58%.

TORRANCE, CA — 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 2, 2021.

Fourth Quarter 2020 Summary vs. Year-Ago Quarter

  • Net sales increased 90% year over year to $119.7 million (includes one extra week).
  • Gross profit increased 97% to $41.6 million, with gross margin up 110 basis points to 34.8%.
  • Net loss was ($3.5) million or ($0.07) per share, compared to a net loss of ($25.1) million or ($0.70) per share. Q4 2019 net loss included a ($23.0) million non-cash deferred tax valuation allowance.
  • Adjusted EBITDA decreased to $1.0 million vs. $1.7 million in the year ago quarter. The decline was partially due to approximately $1 million in additional expenses associated with the opening of our Texas Distribution Center (“DC”) as well as increased receiving across the network.

Fiscal Year 2020 Summary vs. 2019

  • Net sales increased 58% year over year to $443.9 million (includes one extra week).
  • Gross profit increased 84% to $155.4 million, with gross margin up 500 basis points to 35.0%.
  • Net loss was ($1.5) million or ($0.04) per share, compared to a net loss of ($31.5) million or ($0.89) per share. 2019 net loss included a ($23.0) million non-cash deferred tax valuation allowance.
  • Adjusted EBITDA was $16.0 million vs. $4.5 million.

Management Commentary

“The significant investments we made in 2019 laid the foundation for the success we experienced in 2020.” said Lev Peker, CEO of CarParts.com. “Our strategy of Right Part, Right Place, Right Time is helping us transform and disrupt an industry with a superior value proposition that keeps our customers at the center of everything we do.”

“While we are very proud of our work over the last 2 years and the improvements we have made, we still believe that there is significant market opportunity ahead of us. Our plan is to continue to get closer to the customer, provide an expanding selection of both mechanical and EV/Hybrid replacement parts, and help customers get parts installed with increased convenience and transparency.”

“We’re laser focused on providing a fast and convenient shopping experience that builds trust, brand awareness and drives repeat purchasing. CarParts.com continues to demonstrate strong forward momentum and our team is executing well on multiple strategic objectives.”

Fourth Quarter 2020 Financial Results

Net sales in the fourth quarter of 2020 were $119.7 million compared to $63.0 million in the year-ago quarter. The growth in sales was primarily driven by increased revenue growth from our flagship website, CarParts.com.

Gross profit in the fourth quarter increased 97% to $41.6 million compared to $21.2 million last year, with gross margin up 110 bps to 34.8% compared to 33.7%. These improvements were driven by strong growth in house brands sales, favorable channel and product mix, partially offset by higher inbound and outbound freight costs and seasonal surcharges from our carriers.

Total operating expenses in the fourth quarter were $44.9 million compared to $23.3 million in the fourth quarter last year. The increase was driven by personnel costs related to the new Texas DC, technology spend, & marketing spend.

Net loss in the fourth quarter decreased to ($3.5) million compared to ($25.1) million in the fourth quarter last year. The loss for 2020 was primarily driven by startup expenses incurred to open the Texas DC without the benefit of offsetting revenues while the prior year loss was primarily driven by a non-cash valuation allowance charge of ($23.0) million related to our deferred tax assets.

Adjusted EBITDA in the fourth quarter decreased to $1.0 million compared to $1.7 million in the year-ago quarter, with the decrease driven primarily by the aforementioned increase in expenses related to opening a new DC as well as increased receiving across the network.

At fiscal year-end January 2, 2021, the company had no revolver debt, no outstanding trade letters of credit (“LCs”) and a cash balance of $35.8 million, compared to no debt, $17.3 million of outstanding trade LCs and a $2.3 million cash balance at December 28, 2019.

About CarParts.com, Inc.

For over 20 years, CarParts.com has been a leader in the e-commerce automotive aftermarket, providing collision, engine, and performance parts and accessories. With over 50 million parts delivered, we’ve helped everyday drivers across the continental United States find the right parts to keep their vehicles on the road.

With a focus on the end-to-end customer experience, we’ve designed our website and sourcing network to simplify the way drivers get the parts they need. Our vehicle selector and easy-to-navigate, mobile-friendly website offers customers guaranteed fitment and a convenient online shopping experience. And with our own wide distribution network, we bring the very best brands and manufacturers directly to consumer hands, cutting out all the brick-and-mortar supply chain costs to provide quality parts at a discount for our loyal customers. Combined with our 90-day return policy and satisfaction guarantee, CarParts.com makes it simple for customers to get parts delivered straight to their door.

CarParts.com is headquartered in Torrance, California.

For more details, see the full press release on the CarParts.com Investors website.

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