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Source: CarParts.com announcement
TORRANCE, Calif., CarParts.com, Inc. (NASDAQ: PRTS), one of the leading e-commerce providers of automotive parts and accessories, and a one-stop shop for vehicle repair and maintenance needs, is reporting results for the third quarter ended October 1, 2022.
Third Quarter 2022 Summary vs. Year-Ago Quarter
• Net sales increased 16% year over year to $164.8 million and increased 37 percent on a two-year stack.
• Gross profit increased 19% to $56.1 million, with gross margin increasing 70 basis points to 34.1 percent.
• Net loss was ($0.9) million or ($0.02) per diluted share, compared to a net loss of ($4.7) million or ($0.09) per diluted share.
• Adjusted EBITDA of $6.3 million vs. $2.3 million.
• Completed ERP migration from 15-year old legacy system to Microsoft Dynamics 365.
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Management Commentary
“Q3 was another record for our company,” said David Meniane, CEO of CarParts.com. “We are excited to continue building a trusted and disruptive platform where we can help our customers solve their auto repair and maintenance needs. Over one-third of our revenue comes from repeat customers and we are consistently growing our addressable market. We launched our Do-It-For-Me program on our website, called Get It Installed, and are one step closer to our goal of becoming the number one destination for our customers.
“One of our core strategic pillars is financial discipline. As evidenced by our record third quarter Adjusted EBITDA and ample liquidity, we feel confident that we do not need to raise capital at current valuations and can continue to self-fund growth for the foreseeable future.
“We see staying laser-focused on positive unit economics, free cash flow, operational efficiencies, and customer experience as key to building an exceptional and durable company for our long-term stakeholders.”
Third Quarter 2022 Financial Results
Net sales in the third quarter of 2022 were $164.8 million up 16% from the year-ago quarter. For the month of October, we saw double digit, year-over-year revenue growth and continue to balance growth with profitability and free cash flow generation.
Gross profit in the third quarter increased 19 percent to $56.1 million compared to $47.3 million in the year-ago quarter, with gross margin increasing 70 basis points to 34.1 percent.
Total operating expenses in the third quarter were $56.7 million compared to $51.7 million in the year-ago quarter, mainly due to an increase in sales and investments in the business.
Net loss in the third quarter was ($0.9) million compared to a net loss of ($4.7) million in the year-ago quarter.
Adjusted EBITDA in the third quarter was $6.3 million compared to $2.3 million in the year-ago quarter.
On Oct. 1, 2022, the Company had a cash balance of $16.7 million, revolver debt of $5.0 million 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.
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