CarParts.com, one of the leading e-commerce providers of automotive parts and accessories, is reporting results for the fourth quarter and fiscal year ended Jan. 1, 2022. The fourth quarter ending Jan. 1, 2022, included 13 weeks versus 14 weeks in the fourth quarter ended January 2, 2021. The fiscal year ended Jan. 1, 2022, included 52 weeks versus 53 weeks in the fiscal year ended Jan. 2, 2021.
Fourth Quarter 2021 Summary vs. Year-Ago Quarter
- Net sales increased 15% year over year to $138.3 million, up 23% excluding an extra week in 2020 and increased 89% on a 2-year stack.
- Gross profit increased 14% to $47.4 million, with gross margin of 34.3%.
- Net loss was ($5) million or ($0.10) per diluted share, compared to net loss of ($3.5) million or ($0.07) per diluted share.
- Adjusted EBITDA increased to $2.6 million vs. $1 million.
- Grew inventory to record $138.9 million.
- Management reiterates long term targets of 20-25% compounded revenue growth and 8-10% EBITDA margin.
Fiscal Year 2021 Summary vs. 2020
- Net sales increased 31% year over year to a record $582.4 million, up 34% excluding an extra week in 2020 and increased 89% on a 2-year stack.
- Gross profit increased 27% to $197.3 million, with gross margin of 33.9%.
- Net loss was ($10.3) million or ($0.20) per share, compared to a net loss of ($1.5) million or ($0.04) per share. The increase was primarily driven by non-cash charges.
- Adjusted EBITDA increased to $16.8 million vs. $16.0 million.
Management Commentary
“The past three years have been transformational for the company,” said Lev Peker, CEO of CarParts.com. “We executed on margin expansion, revenue growth, site consolidation, technology improvements and supply chain expansion. CarParts.com now has a strong foundation for continued rapid growth.
“With over 300k square feet of warehouse coming online, a record amount of inventory and an amazing team, I have never been more confident in our ability to aggressively capture share from the $300 billion auto parts industry. Between an aging car fleet and robust used car sales, we believe there are significant and enduring tail winds to our business, and we look forward to continued year over year growth in 2022 and beyond,” Pekar added.
Fourth Quarter 2021 Financial Results
Net sales in the fourth quarter of 2021 were $138.3 million compared to $119.7 million in the year-ago quarter. The company said this increase was primarily driven by continued strong demand and the expanded capacity from the company’s Grand Prairie distribution center.
Gross profit in the fourth quarter increased 14% to $47.4 million compared to $41.6 million in the fourth quarter last year, with gross margin of 34.3%.
Total operating expenses in the fourth quarter were $52 million compared to $44.9 million in the fourth quarter last year due to an increase in sales and investments in the business.
Net loss in the fourth quarter was ($5) million compared to a net loss of ($3.5) million in the fourth quarter last year. The net loss was driven primarily by an increase in non-cash charges.
Adjusted EBITDA in the fourth quarter increased to $2.6 million compared to $1 million in the year-ago quarter.
On Jan. 1, 2022, the company had no revolver debt, no outstanding trade letters of credit (LCs) and a cash balance of $18.1 million, compared to no revolver debt, no outstanding trade LCs and a $35.8 million cash balance at prior fiscal year-end Jan. 2, 2021. The cash was primarily used to increase the company’s inventory position in support of its Grand Prairie, Texas, expansion and planned second-quarter opening of its new Jacksonville, Florida, distribution center.
During the fourth quarter and fiscal year ended Jan. 1, 2022, the company repurchased $0.5 million, or 40,000 shares, of its common stock through the 2021 stock repurchase program at an average price of $11.99 per share.
