U.S. Auto Parts Network has reported results for the second quarter ended July 2, 2016.
Net sales in the second quarter of 2016 increased 2 percent to $78 million compared to $76.4 million in the year-ago quarter. The increase was largely driven by a 16 percent increase in online marketplace sales to $20.6 million.
Gross profit in the second quarter of 2016 increased 14 percent to $23.7 million compared to $20.8 million in the year-ago quarter. As a percentage of net sales, gross profit increased 320 basis points to 30.4 percent compared to 27.2 percent. The increase in gross margin was primarily driven by a higher mix of private label sales, which were 65 percent of net sales compared to 60 percent in the year-ago quarter. The increase also was driven by freight and warehouse supplies savings.
Net income in the second quarter increased to $1.2 million, or 3 cents per diluted share, compared to a net loss of $0.6 million, or $(2 cents) per diluted share in the year-ago quarter.
“The momentum from Q1 has carried into the second quarter,” said Shane Evangelist, CEO of U.S. Auto Parts. “The continued focus on our higher-margin private label business, coupled with operational efficiencies, led to our second consecutive quarter of GAAP profitability and a 129 percent year-over-year increase in adjusted EBITDA. We also ended the quarter with no revolver debt and a cash net of revolver debt swing of $9 million from last year.”
2016 Outlook
U.S. Auto Parts continues to expect net sales to be up low- to mid-single digits on a percentage basis compared to 2015, and adjusted EBITDA to range between $13 million and $15 million, an improvement from U.S. Auto Parts’ previously issued adjusted EBITDA outlook.
