CarParts.com (PRTS) Misses Q1 EPS by 2c, Revenues Beat

CarParts.com (NASDAQ: PRTS) reported Q1 EPS of ($0.06), $0.02 worse than the analyst estimate of ($0.04). Revenue for the quarter came in at $144.8 million versus the consensus estimate of $117.5 million.

First Quarter 2021 Summary vs. Year-Ago Quarter

• Net sales increased 65% year over year to $144.8 million.
• Gross profit increased 65% to $49.2 million, with gross margin up 10 basis points to 34.0%.
• Net loss was ($2.7) million or ($0.06) per share, compared to a net loss of ($1.0) million or ($0.03) per share.
• Adjusted EBITDA decreased to $3.6 million vs. $4.3 million in the year ago quarter. The decrease was driven primarily by the continued ramp up of our Texas Distribution Center ("DC"), adverse weather, and target investments in brand awareness campaigns that did not exist in the prior year quarter.
• In active discussions to expand the Texas DC by 156,220 square feet, which would bring the total DC network square footage to over 1 million square feet.

Management Commentary

"During the quarter we saw robust sales that reinforced our confidence in achieving our long-term goal of 20 to 25% compounded top line growth" said Lev Peker, CEO of CarParts.com. "The expansion of our DC network into Grand Prairie Texas increased our revenue capacity as well as our ability to meet the exponential growth in demand that we are seeing from customers."

"The success we achieved is a testament to our data science, inventory forecasting, and global sourcing teams. By optimizing the assortment in Texas, we were able to maximize our sales capabilities despite the facility still being in the ramp up stages. Additionally, our warehouse operations teams worked tirelessly to fulfill an unprecedented amount of customer orders."

"We also recently began discussions to expand our Texas facility by 156k square feet which will bring our total warehouse footprint to more than 1 million total square feet across the country. This is an exciting milestone for us, and the increased space will allow us to carry a full line of products to serve one of our biggest markets."

"In the quarter, we also welcomed Henry Maier to our board of directors. Henry is a 35-year veteran of FedEx Corporation, where he currently serves as president and CEO of the FedEx Ground operating unit."

For earnings history and earnings-related data on CarParts.com (PRTS) click here.

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