CarParts.com has reported its financial results for the first quarter ended April 1, 2023.
First Quarter 2023 Summary vs. Year-Ago Quarter
- Net sales increased 6% year-over-year to $175.5 million and increased 20% on a two-year stack.
- Gross profit increased 2% to $62.6 million, with gross margin of 35.6%.
- Net income was $1.1 million or $0.02 per diluted share, compared to $2.1 million or $0.04 per diluted share.
- Adjusted EBITDA was flat at $9.4 million.
- Cash of $49.3 million and no revolver debt.
“Q1 marked our 13th consecutive quarter of growth all while building up a robust balance sheet. Our team grew revenues and maintained profitability despite a challenging macro environment,” said David Meniane, CEO of CarParts.com. “For the remainder of the year, we will continue to drive operating improvements, expand our assortment and enhance our website with new functionality.
“These results are the latest chapter in our success story, which is the product of a complete transformation that included a refreshed management team, restructured departments, new tech stacks and improved operating efficiencies. No matter how you look at it, what the team has accomplished is remarkable. Our commitment to our customers, shareholders and employees remains unwavering. And as we look ahead, we believe we can continue to drive growth, profitability and shareholder returns,” Meniane added.
First Quarter 2023 Financial Results
Net sales in the first quarter of 2023 were $175.5 million, up 6% from the year-ago quarter.
Gross profit in the first quarter increased 2% to $62.6 million compared to $61.2 million in the year-ago quarter, with gross margin decreasing 120 basis points to 35.6%, primarily driven by unfavorable freight charges.
Total operating expenses in the first quarter were $61.9 million and 35.3% of sales compared to $58.8 million and 35.4% of sales in the year-ago quarter. The improvement in operating leverage was primarily driven by increased operating efficiencies combined with lower marketing expense as a percent of sales.
Net income in the first quarter was $1.1 million compared to net income of $2.1 million in the year-ago quarter.
Adjusted EBITDA in the first quarter was $9.4 million compared to $9.4 million in the year-ago quarter.
On April 1, 2023, the company had a cash balance of $49.3 million, no revolver debt and no outstanding trade letters of credit (LCs), compared to no revolver debt, no outstanding trade LCs and a $18.8 million cash balance at prior fiscal year-end Dec. 31, 2022.