CarParts.com, one of the leading e-commerce providers of automotive parts and accessories, is reporting results for the first quarter ended April 3, 2021.
First Quarter 2021 Summary vs. Year-Ago Quarter
• Net sales increased 65% year over year to $144.8 million.
• Gross profit increased 65% to $49.2 million, with gross margin up 10 basis points to 34.0%.
• Net loss was ($2.7) million or ($0.06) per share, compared to a net loss of ($1.0) million or ($0.03) per share.
• Adjusted EBITDA decreased to $3.6 million vs. $4.3 million in the year ago quarter. The decrease was driven primarily by the continued ramp up of our Texas Distribution Center (“DC”), adverse weather, and target investments in brand awareness campaigns that did not exist in the prior year quarter.
• In active discussions to expand the Texas DC by 156,220 square feet, which would bring the total DC network square footage to over 1 million square feet.
Management Commentary
“During the quarter we saw robust sales that reinforced our confidence in achieving our long-term goal of 20 to 25% compounded top line growth” said Lev Peker, CEO of CarParts.com. “The expansion of our DC network into Grand Prairie Texas increased our revenue capacity as well as our ability to meet the exponential growth in demand that we are seeing from customers.”
“The success we achieved is a testament to our data science, inventory forecasting, and global sourcing teams. By optimizing the assortment in Texas, we were able to maximize our sales capabilities despite the facility still being in the ramp up stages. Additionally, our warehouse operations teams worked tirelessly to fulfill an unprecedented amount of customer orders.”
“We also recently began discussions to expand our Texas facility by 156k square feet which will bring our total warehouse footprint to more than 1 million total square feet across the country. This is an exciting milestone for us, and the increased space will allow us to carry a full line of products to serve one of our biggest markets.”
“In the quarter, we also welcomed Henry Maier to our board of directors. Henry is a 35-year veteran of FedEx Corporation, where he currently serves as president and CEO of the FedEx Ground operating unit.”
First Quarter 2021 Financial Results
Net sales in the first quarter of 2021 were $144.8 million compared to $87.8 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 first quarter increased 65% to $49.2 million compared to $29.8 million in the first quarter last year, with gross margin up 10 bps to 34.0% compared to 33.9%. These improvements were driven by 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 first quarter were $51.7 million compared to $30.1 million in the first quarter last year. The increase was driven by personnel costs related to the new Texas DC, technology spend, marketing spend and non-cash charges.
Net loss in the first quarter increased to ($2.7) million compared to ($1.0) million in the first quarter last year. The net loss for the first quarter of 2021 was primarily driven by an increase in non-cash charges.
Adjusted EBITDA in the first quarter decreased to $3.6 million compared to $4.3 million in the year-ago quarter, with the decrease driven primarily by the continued ramp up of our Texas DC, adverse weather, and targeted investments in brand awareness campaigns that did not exist in the prior year quarter.
On April 3, 2021, the company had no revolver debt, no outstanding trade letters of credit (“LCs”) and a cash balance of $45.9 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.
