CarParts.com, one of the leading e-commerce providers of automotive parts and accessories, is reporting results for the first quarter ended April 2, 2022.
First Quarter 2022 Summary vs. Year-Ago Quarter
- Net sales increased 15% year over year to $166.1 million and increased 80% on a two-year stack.
- Gross profit increased 24% to $61.2 million, with gross margin increasing 280 basis points to 36.8%.
- Net income was $2.1 million or $0.04 per diluted share, compared to net loss of ($2.7) millionor ($0.06) per diluted share.
- Adjusted EBITDA increased to $9.4 million vs. $3.6 million.
- Grew inventory to record $157.9 million.
Management Commentary
“Our company is on solid ground both operationally and financially,” said David Meniane, CEO of CarParts.com. “Once again, we achieved a record-breaking sales quarter as well as a record-breaking Adjusted EBITDA quarter.”
“When I look at the business going forward, there are four areas of focus for us to continue to strive for perfection: outstanding customer service, operational excellence, financial discipline, and innovation. Combining these focus areas with disciplined profitable growth, will be our core strategy going forward.”
First Quarter 2022 Financial Results
Net sales in the first quarter of 2022 were $166.1 million compared to $144.8 million in the year-ago quarter. The company said this increase was primarily driven by continued strong demand and the expanded capacity from its Grand Prairie, Texas, distribution center.
Gross profit in the first quarter increased 24% to $61.2 million compared to $49.2 million in the first quarter last year, with gross margin increasing 280 basis points to 36.8%.
Total operating expenses in the first quarter were $58.8 million compared to $51.7 million in the first quarter last year due to an increase in sales and investments in the business.
Net income in the first quarter was $2.1 million compared to a net loss of ($2.7) million in the first quarter last year.
Adjusted EBITDA in the first quarter increased to $9.4 million compared to $3.6 million in the year-ago quarter.
On April 2, 2022, the company had a cash balance of $25 million, $5 million of revolver debt and no outstanding trade letters of credit (“LCs”), compared to no revolver debt, no outstanding trade LCs and a $18.1 million cash balance at prior fiscal year-end January 1, 2022. The revolver debt was primarily used to increase our inventory position in support of the company’s Grand Prairie distribution center expansion and the upcoming second-quarter opening of its new Jacksonville, Florida, distribution center.
