Record Third Quarter Sales of $141.8 million, up 21%
7th Consecutive Quarter of Year over Year Sales Growth
Grew Inventory to a Record $131.8 million
TORRANCE, CA — CarParts.com, Inc. (NASDAQ: PRTS), one of the leading e-commerce providers of automotive parts and accessories, is reporting results for the third quarter ended October 2, 2021.
Third Quarter 2021 Summary vs. Year-Ago Quarter
- Net sales increased 21% year over year to $141.8 million and increased 90% on a 2-year stack.
- Gross profit increased 10% to $47.3 million, with gross margin of 33.4%.
- Net loss was ($4.7) million or ($0.09) per diluted share, compared to net income of $1.4 million or $0.03 per diluted share.
- Adjusted EBITDA of $2.3 million vs. $5.1 million.
- Grew inventory to record $131.8 million.
- Management reiterates long term targets of 20-25% compounded revenue growth and 8-10% EBITDA margin.
Management Commentary
“We saw another quarter of strong year over year growth,” said Lev Peker, CEO of CarParts.com. “We also maintained EBITDA profitability while investing heavily into the business. We believe these investments are foundational and that they will be resilient for several years which will spring load our growth and operating leverage over the long run.”
“We are very proud of the work of our international sourcing and supply chain team. In a challenging environment, we were able to grow inventory to record levels. Given our proven track record of sourcing, strong inventory position, and distribution center expansions, we believe we are both able and ready to serve our customers through 2021 and 2022.”
Third Quarter 2021 Financial Results
Net sales in the third quarter of 2021 were $141.8 million compared to $117.4 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 (“DC”).
Gross profit in the third quarter increased 10% to $47.3 million compared to $43.1 million in the third quarter last year, with gross margin of 33.4%.
Total operating expenses in the third quarter were $51.7 million compared to $41.4 million in the third quarter last year due to an increase in sales and investments in the business.
Net loss in the third quarter was ($4.7) million compared to net income of $1.4 million in the third quarter last year. The net loss was driven primarily by an increase in non-cash charges.
Adjusted EBITDA in the third quarter decreased to $2.3 million compared to $5.1 million in the year-ago quarter. The decrease was driven primarily from foundational investments in technology, supply chain, and category management.
On October 2, 2021, the Company had no revolver debt, no outstanding trade letters of credit (“LCs”) and a cash balance of $20.7 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.
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For additional details, view the full press release on the CarParts.com website.
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.
