Ryan Sigdahl - Craig-Hallum Capital Group Ryan Meyers - Lake Street Capital Markets. Operator Good afternoon. At this time, all participants will be in a listen-only mode. After the presentation, there will be a question-and-answer session. Please note this call is being recorded. Tina Mirfarsi Hello, everyone and thank you for joining us for the CarParts.com first quarter conference call. Joining me today are David Meniane, Chief Executive Officer; Ryan Lockwood, Chief Financial Officer; and Michael Huffak ...

Financial Performance - Net sales for Q1 2024 were $166.3 million, a decrease of 5% compared to $175.5 million in Q1 2023[6] - Gross profit was $53.9 million, down from $62.6 million, resulting in a gross margin of 32.4%, a decline of 320 basis points year-over-year[7] - The company reported a net loss of $6.5 million, or $0.11 per share, compared to a net income of $1.1 million, or $0.02 per share in the prior year[7] - Adjusted EBITDA for Q1 2024 was $1.1 million, significantly lower than $9.4 million in Q1 2023[7] - Net loss for the thirteen weeks ended March 30, 2024, was $6,478 million, compared to a net income of $1,051 million for the same period in 2023[28] Guidance and Projections - The company aims for net sales in the range of $600 million to $625 million for the full year 2024, down from previous guidance of $662 million to $688 million[13] - Gross margin is expected to be around 33%, plus or minus 100 basis points, which is an improvement from the previous guidance of 31%[13] - The company is targeting a 6-8% Adjusted EBITDA margin in the medium term while increasing free cash flow generation[6] Cash and Liquidity - Cash balance as of March 30, 2024, was $46.0 million, with no revolver debt, down from $51.0 million at the end of the previous fiscal year[9] - Cash and cash equivalents decreased to $46,046 million from $50,951 million, a decline of about 11.5%[28] - Net cash provided by operating activities was $3,652 million, a significant decrease from $32,781 million in the prior year[28] - Cash received during the period for interest was $437 million, compared to $11 million in the prior year, indicating improved interest income[28] Assets and Liabilities - Total assets increased to $263,224 million as of March 30, 2024, up from $257,855 million on December 30, 2023, representing a growth of approximately 2.7%[26] - Total current liabilities remained relatively stable at $112,188 million, slightly down from $112,986 million[26] - Total stockholders' equity decreased to $109,152 million from $112,831 million, reflecting a decline of approximately 3.0%[26] Inventory and Capital Expenditure - Inventory levels decreased to $120,015 million from $128,901 million, a reduction of about 6.9%[26] - Additions to property and equipment amounted to $7,431 million, compared to $2,745 million in the same period last year, indicating increased capital expenditure[28] Operational Focus - The mobile app now contributes over 8% of total eCommerce revenue, with 38% of revenue coming from repeat customers[3] - The company is focusing on margin expansion through pricing optimization, marketing, supply chain, and technology improvements[5] - The company reported a depreciation and amortization expense of $4,025 million, up from $3,919 million in the previous year[28]

Financial Data and Key Metrics - Q4 2023 sales were $156 million, bringing full-year 2023 sales to a record-breaking $676 million, up 2% YoY and 16% on a 2-year stack [13] - Adjusted EBITDA for Q4 was $1 million, and $19.7 million for the full year 2023, down from $26.1 million in 2022 [13][30] - Gross profit for Q4 was $51.6 million, flat YoY, while full-year gross profit was $229.4 million, down slightly from $230.9 million in 2022 [16] - GAAP net loss for Q4 was $6.1 million, compared to $6.2 million in the prior year, and full-year GAAP net loss was $8.2 million versus $1 million in 2022 [27] - The company repurchased 726,000 shares in Q4, bringing total repurchases in 2023 to 1.2 million shares [13][31] Business Line Data and Key Metrics - The mobile app now generates over 7% of total e-commerce revenue, with over 250,000 downloads [20][29] - Revenue from the friction category (brakes and rotors) increased by over 40% YoY, accounting for approximately 5% of total volume [20] - The third-party premium brands business grew over 25% YoY, now a profitable $100 million revenue business [21] - Website traffic reached over 100 million visits in 2023, with 38% of e-commerce revenue coming from repeat customers [20] Market Data and Key Metrics - The company saw sustained price deflation due to macroeconomic challenges, with unit growth of approximately 8% in Q4 2023 [13] - The automotive aftermarket is valued at $389 billion, and the company is well-positioned to capture market share as consumer confidence rebounds [13] - The company expects revenue growth in 2024 to range from -2% to +2%, driven by deflation and mid- to high single-digit unit growth [8] Company Strategy and Industry Competition - The company is focusing on expanding its tech and product offerings, including growing third-party premium brands and enhancing the e-commerce experience [21][64] - A new semi-automated facility in Las Vegas is expected to open in Q2 2024, driving operating leverage and reducing last-mile transportation costs [14][22] - The company is prioritizing marketing and branding efforts, including YouTube content, which saw a 10x increase in views YoY in early 2024 [7][64] - The company aims to reduce marketing spend from 12.3% to 10% of revenue, with a focus on app engagement and organic growth [45][49] Management Commentary on Operating Environment and Future Outlook - The company faced a challenging macroeconomic environment in 2023, with price compression and deflation impacting margins [8][9] - Management expects deflation to continue through the first three quarters of 2024, with gross profit margins projected to be around 31% ±100 basis points [8] - The company is focused on cost reduction initiatives, including the elimination of 150 global roles, expected to save $10 million annually [62] - Management remains confident in the company's long-term growth potential, citing a large TAM, an aging car fleet, and low online penetration in the automotive aftermarket [52][58] Other Important Information - The company ended 2023 with $51 million in cash and an untapped revolver of up to $75 million [13][24] - Inventory at the end of Q4 was $129 million, down from $136 million in the prior year [31] - The company renewed its share repurchase program through July 2026, with $25 million remaining [31] Q&A Session Summary Question: Focus areas for 2024 and cost reduction efforts [35] - Management highlighted three key priorities for 2024: e-commerce experience and app engagement, product offering expansion, and marketing/branding [41] - The company is deferring some initiatives, such as the do-it-for-me offering, to focus on immediate growth opportunities [53] Question: Impact of cost reductions and gross margin guidance [47][59] - The company reduced 15% of corporate roles and 10% of frontline roles, with annualized savings of $10 million [47] - Gross margin guidance for 2024 is 31% ±100 basis points, impacted by deflation and outbound freight costs [59] Question: Mobile app growth and marketing spend flexibility [49] - The mobile app has seen strong organic growth, with higher average selling prices and repeat purchase rates [49] - The company aims to reduce marketing spend by 100-200 basis points over the next few years [49] Question: Revenue guidance range and factors influencing it [51] - Revenue guidance for 2024 is -2% to +2%, with the range influenced by price compression, deflation, and macro factors [51] Question: Do-it-for-me offering and its contribution in 2024 [53] - The do-it-for-me initiative is a long-term bet, but the company is deferring it to focus on immediate growth opportunities in 2024 [53]

Financial Performance - For fiscal year 2023, the company generated net sales of $675,729, an increase of 2.1% compared to $661,604 in fiscal year 2022[199]. - The company incurred a net loss of $8,223 in fiscal year 2023, compared to a net loss of $951 in fiscal year 2022[199]. - Gross profit decreased by 0.6% to $229,406, with a gross margin decline of 100 basis points to 33.9% in fiscal year 2023[200]. - Operating expenses increased by $9,048, or 3.9%, for fiscal year 2023, totaling $239,287, representing 35.4% of net sales[218]. - Adjusted EBITDA for fiscal year 2023 was $19,687, down from $26,113 in fiscal year 2022[206]. - The company’s net loss before interest, taxes, depreciation, and amortization was $19,687 in fiscal year 2023[199]. - The increase in net sales was primarily driven by continued demand despite a decrease in gross margin due to unfavorable freight costs[217]. - Total other income increased by $2,773, or 285.9%, for fiscal year 2023 compared to fiscal year 2022, primarily due to higher interest income from increased interest rates and cash balance[219]. - Income tax provision decreased by $487, or 77.1%, from $632 in fiscal year 2022 to $145 in fiscal year 2023[220]. Cash Flow and Debt Management - Cash and cash equivalents rose to $50,951 as of December 30, 2023, representing a $32,184 increase from $18,767 as of December 31, 2022[222]. - Net cash provided by operating activities increased to $50,001 for the fiscal year ended December 30, 2023, compared to $15,368 for the prior year[225]. - Total debt decreased to $16,635 as of December 30, 2023, down from $20,669 as of December 31, 2022[228]. - The Company maintains a revolving Credit Facility with a principal amount of up to $75,000, which can be increased to $150,000 under certain conditions[229]. - The Company had no outstanding revolving loan balance as of December 30, 2023[230]. Tax and Deferred Assets - The Company maintained a valuation allowance of $38,458 against deferred tax assets due to cumulative losses in recent years[220]. - Federal and state NOL carryforwards were $105,224 and $84,780, respectively, with federal NOL carryforwards beginning to expire in 2029[221]. Market Trends and Product Offering - The average age of U.S. light vehicles reached a record-high of 12.5 years in 2023, indicating increased demand for aftermarket parts[197]. - The U.S. Auto Care Association projects that online sales of auto parts and accessories will reach approximately $21 billion by 2025, supporting the company's growth strategy[198]. - The company offers approximately 1,047,000 SKUs on its flagship website and app, providing a comprehensive selection for consumers[196]. Investment Activities - Net cash used in investing activities was $11,901 for the fiscal year ended December 30, 2023, primarily due to additions to property and equipment[226].

TORRANCE, Calif. – March 7th, 2024 – CarParts.com, Inc. (NASDAQ: PRTS), one of the leading eCommerce providers of automotive parts and accessories, and a one-stop shop for vehicle repair and maintenance needs, is reporting results for the fourth quarter and fiscal year ended December 30,2023. Fiscal Year 2023Summary vs. Fiscal Year 2022 Fourth Quarter 2023Summary vs.Year-Ago Quarter Management Commentary CarParts.com Reports Highest Fiscal Year Sales in Company History Record Fiscal Year Sales of $676 milli ...

CarParts.com, Inc. (NASDAQ:PRTS) Q3 2023 Earnings Conference Call October 30, 2023 5:00 PM ET Company Participants Tina Mirfarsi - SVP, Communications and Culture David Meniane - CEO Michael Huffaker - COO Ryan Lockwood - CFO Conference Call Participants Ryan Sigdahl - Craig-Hallum Capital Group Darren Aftahi - ROTH MKM Ryan Meyers - Lake Street Operator Good afternoon. At this time, all participants will be in a listen-only mode. After the presentation, there will be a question-and-answer session. Please n ...

Table of Contents ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-33264 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) CARPARTS.COM, INC. (Exact name of registrant as specified in its charter) Delaware 68-0623433 (I.R. ...

Financial Data and Key Metrics Changes - The company reported $177 million in sales for Q2 2023, a slight increase from $176 million in the same period last year, marking the 14th consecutive quarter of year-over-year growth and the highest sales level in the company's history [12][41] - Adjusted EBITDA was $6.3 million, down from $8.3 million in the prior year, primarily due to higher freight costs and increased performance marketing spend [42][43] - Gross profit for the quarter was $60.4 million, down from $61.9 million in the prior year, with a gross margin of 34.2%, down from 35.1% [38][42] - The company ended the quarter with $79 million in cash and no revolver debt, up from $15 million in the prior year [44] Business Line Data and Key Metrics Changes - The company has seen a rise in the usage of its Buy Now Pay Later offerings, indicating a shift in customer purchase patterns [14] - The national brand assortment has expanded to a revenue run rate of $100 million, compared to under $50 million in 2021 [16] Market Data and Key Metrics Changes - The company noted that the consumer has been under increased pressure throughout the year, with lighter-than-expected tax refunds impacting spending patterns [97] - There is a pent-up demand for auto repairs as consumers generally do not prefer to keep their vehicles in disrepair [99][104] Company Strategy and Development Direction - The company is focusing on six strategic pillars: e-commerce fundamentals, digital transformation, assortment and catalog, marketing and customer experience, innovation, and supply chain and logistics [19][20] - The launch of a new mobile app aims to reduce customer acquisition costs and reliance on paid channels, enhancing the customer experience [21][22] - The company is committed to building strong relationships with branded partners and capturing a larger market share through improved customer experience and product offerings [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning despite short-term pressures from the macroeconomic environment, highlighting unit growth and positive unit economics [56][57] - The company anticipates that as consumer confidence rebounds, customers will return to the market for repairs [14] - Management emphasized the importance of balancing growth and profitability while maintaining a robust balance sheet [45] Other Important Information - The company repurchased 250,000 shares during the quarter for approximately $1.05 million, with $28.5 million remaining under the current share repurchase program [40] - The company is investing in supply chain technology to enhance efficiency and safety for associates [102] Q&A Session Summary Question: Can you talk about the health of consumers on CarParts since the beginning of the year? - Management noted that consumers have been under increased pressure, with lighter tax refunds impacting spending patterns, but there is a historical trend of pent-up demand for auto repairs [97][99] Question: How is the company leveraging artificial intelligence and automation? - Management indicated that they are embracing AI as a significant opportunity and are making intelligent investments in automation to improve efficiency and safety [91][92] Question: What are the expectations for the second half of the year? - Management expressed optimism about capturing demand as consumer confidence rebounds, despite current macroeconomic pressures [56][104]

Company Participants Thomas Forte - D.A. Davidson Ryan Sigdahl - Craig Hallum Capital Group Ryan Myers - Lake Street Capital Markets Tina Mirfarsi CarParts.com, Inc. (NASDAQ:PRTS) Q1 2023 Earnings Conference Call May 2, 2023 5:00 PM ET Conference Call Participants Good afternoon. At this time, all participants will be in a listen-only mode. After the presentation, there will be a question-and-answer session. Please note, this call is being recorded. Hello everyone and thank you for joining us for the CarPar ...

CarParts.com, Inc. (NASDAQ:PRTS) Q4 2022 Results Conference Call March 7, 2023 5:00 PM ET Company Participants Tina Mirfarsi - VP, Communications and Culture David Meniane - CEO, SVP & Director Michael Huffaker - Chief Operating Officer Ryan Lockwood - CFO Conference Call Participants Thomas Forte - D.A. Davidson Ryan Meyers - Lake Street Capital Markets Darren Aftahi - Roth MKM Operator Good afternoon. At this time, all participants will be in a listen-only mode. [Operator Instructions] Please note, this ...