U.S. Auto Parts Network has reported results for the first quarter ended April 2, 2016.
Net sales in the first quarter of 2016 increased 6 percent to $80.7 million compared to $76.3 million in the year-ago quarter. The company said this increase was largely driven by an 11 percent increase in online marketplace sales to $21.3 million, as well as a 5 percent increase in e-commerce sales to $50.9 million.
Gross profit in the first quarter of 2016 increased 15 percent to $24.5 million compared to $21.4 million in the year-ago quarter. As a percentage of net sales, gross profit increased 230 basis points to 30.4 percent compared to 28.1 percent. The increase in gross margin was primarily driven by a higher mix of private label sales, which were 67 percent of net sales compared to 64 percent in the year-ago quarter. The company said the increase also was driven by strategic pricing initiatives and freight efficiencies.
“Our first quarter was highlighted by the continued strength of our private label business, which realized double-digit, year-over-year growth for the ninth consecutive quarter,” said Shane Evangelist, CEO of U.S. Auto Parts. “The higher-margin nature of this business, coupled with our continued execution of strategic pricing initiatives and freight efficiencies, enabled us to generate our strongest quarter of net income since 2010.”
Adjusted EBITDA in the first quarter of 2016 increased 52 percent to $4.3 million compared to $2.9 million in the year-ago quarter. As a percentage of net sales, adjusted EBITDA increased 170 basis points to 5.4 percent compared to 3.7 percent. The significant increase was driven by the aforementioned improvements in gross margin, partially offset by the aforementioned increases in operating expenses.
Net income in the first quarter increased 8 times to $1.5 million, or 3 cents per diluted share, compared to net income of $0.2 million, or 0 cents per diluted share in the year-ago quarter.
As of April 2, 2016, cash and cash equivalents totaled $1.3 million compared to $1.5 million on Jan. 2, 2016. Total debt decreased to $3 million from $11.8 million as of Jan. 2, 2016.
All information and data excludes AutoMD unless specifically noted.
