CarParts.com, one of the leading e-commerce providers of automotive parts and accessories, is reporting results for the second quarter ended July 2, 2022.
Second Quarter 2022 Summary vs. Year-Ago Quarter
• Net sales increased 12% year over year to $176.2 million and increased 44% on a two-year stack.
• Gross profit increased 16% to $61.9 million, with gross margin increasing 120 basis points to 35.1%.
• Net income was $4.1 million or $0.07 per diluted share, compared to net income of $2.1 million or $0.04 per diluted share.
• Adjusted EBITDA of $8.3 million vs. $8.3 million.
• Entered into an amended and restated $75 million credit facility with the ability to increase to $150 million, subject to certain terms and conditions. The facility is undrawn as of July 2, 2022.
• For net revenues in the back half of 2022, the company projects double-digit year-over-year growth.
Management Commentary
“Q2 was another record for our company,” said David Meniane, CEO of CarParts.com. “We are excited to build a trusted and disruptive platform where we can help our customers solve their auto repair and maintenance needs. Our goal is to become the number one destination for customers that need help fixing their vehicles.”
“One of our core strategic pillars is innovation and I’m excited to announce our Do-It-For-Me experience is currently live on our website in certain test markets,” he added.
Second Quarter 2022 Financial Results
Net sales in the second quarter of 2022 were $176.2 million compared to $157.5 million in the year-ago quarter. The increase was primarily driven by continued strong demand and the expanded capacity from the company’s Grand Prairie distribution center.
Gross profit in the second quarter increased 16% to $61.9 million compared to $53.3 million in the second quarter last year, with gross margin increasing 120 basis points to 35.1%.
Total operating expenses in the second quarter were $57.6 million compared to $51.0 million in the second quarter last year due to an increase in sales and investments in the business.
Net income in the second quarter was $4.1 million compared to a net income of $2.1 million in the second quarter last year.
Adjusted EBITDA in the second quarter was $8.3 million compared to $8.3 million in the year-ago quarter.
On July 2, 2022, the company had a cash balance of $15.2 million, no 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 Jan. 1, 2022.
