CarParts.com, Inc. (PRTS) Bundle
A Brief History of CarParts.com, Inc.
Company Overview
CarParts.com, Inc. (PRTS) is a leading online retailer of automotive parts and accessories. The company has established itself as a go-to source for consumers seeking a diverse range of products for vehicle maintenance and repair.
Financial Performance in 2024
As of 2024, CarParts.com reported significant financial metrics that reflect its operational performance:
| Metric | Q3 2024 | Q3 2023 | YTD Q3 2024 | YTD Q3 2023 |
|---|---|---|---|---|
| Net Sales (in thousands) | $144,751 | $166,864 | $455,310 | $519,334 |
| Gross Profit (in thousands) | $50,982 | $54,817 | $153,294 | $177,810 |
| Net Loss (in thousands) | $(10,018) | $(2,517) | $(25,183) | $(2,137) |
| Operating Expense (in thousands) | $60,900 | $57,734 | $178,457 | $180,935 |
| Basic and Diluted Net Loss per Share | $(0.17) | $(0.04) | $(0.44) | $(0.04) |
Market Trends and Challenges
The automotive parts industry has been influenced by several trends impacting CarParts.com:
- The average age of U.S. light vehicles reached a record high of 12.6 years in 2024, driving demand for aftermarket parts.
- Online sales of auto parts and accessories are projected to exceed $23 billion by 2026, reflecting a shift in consumer purchasing behavior.
- CarParts.com has adapted its marketing strategy to enhance mobile app experiences and direct customer engagement.
Operational Highlights
During the third quarter of 2024, the company faced challenges including a deliberate price increase to target higher-value customers, resulting in a 13.3% decrease in net sales year-over-year. Despite the decrease in sales, the gross margin improved to 35.2%, up from 32.9% in Q3 2023, primarily due to lower product costs and strategic pricing adjustments.
Liquidity and Capital Resources
As of September 28, 2024, CarParts.com had cash and cash equivalents of $38,105, representing a decrease from $50,951 as of December 30, 2023. The company did not have any outstanding revolving loan balances under its Credit Facility, which has an aggregate principal amount of up to $75,000.
Stockholder Equity
As of September 28, 2024, CarParts.com reported total stockholders’ equity of $97,199, down from $112,831 at the end of 2023. The company had 57,386 shares issued and outstanding, with 3,786 shares classified as treasury stock.
Debt Levels
The total debt for CarParts.com as of September 28, 2024, was $13,335, a reduction from $16,635 at the end of the previous year. This debt primarily consists of right-of-use obligations related to finance leases.
A Who Owns CarParts.com, Inc. (PRTS)
Ownership Structure
As of October 22, 2024, CarParts.com, Inc. (PRTS) had approximately 57,399,643 shares of common stock outstanding. The company has adopted a Tax Benefits Preservation Agreement to prevent ownership changes that could limit its ability to utilize net operating loss (NOL) carryforwards.
Major Shareholders
The following table outlines the major shareholders of CarParts.com, Inc. as of 2024:
| Shareholder Name | Percentage Ownership | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 9.6% | 5,514,000 |
| The Vanguard Group, Inc. | 7.8% | 4,487,000 |
| Wellington Management Group LLP | 5.1% | 2,917,000 |
| Dimensional Fund Advisors LP | 4.2% | 2,400,000 |
| Other Institutional Investors | 22.3% | 12,700,000 |
| Insider Ownership | 5.0% | 2,857,000 |
| Public Float | 46.0% | 26,000,000 |
Insider Ownership
Insider ownership includes shares held by executives and board members. As of September 28, 2024, insiders held approximately 5.0% of the total shares outstanding.
Stock Performance and Trends
The stock has seen fluctuations in performance, with a notable decrease in net sales of $144,751,000 for Q3 2024 compared to $166,864,000 in Q3 2023, reflecting a decrease of 13.3%. The company reported a net loss of $10,018,000 in Q3 2024.
Financial Highlights
The following table summarizes key financial metrics for CarParts.com, Inc. for the third quarter of 2024:
| Metric | Value (in thousands) |
|---|---|
| Net Sales | $144,751 |
| Cost of Sales | $93,769 |
| Gross Profit | $50,982 |
| Operating Expense | $60,900 |
| Net Loss | $10,018 |
| Basic and Diluted Net Loss per Share | $(0.17) |
Market Capitalization
As of the latest reporting period, CarParts.com, Inc. had a market capitalization of approximately $160 million. The company's financial strategies, including its focus on eCommerce enhancements, aim to improve its market position amid competitive pressures.
CarParts.com, Inc. (PRTS) Mission Statement
CarParts.com, Inc. is a leading online provider of aftermarket auto parts and accessories. The mission of CarParts.com is to empower consumers to maintain and repair their vehicles with confidence by providing a comprehensive selection of high-quality auto parts at competitive prices, supported by exceptional customer service and an innovative shopping experience.
Core Values
- Customer Focus: Prioritizing customer satisfaction through quality service and product availability.
- Integrity: Committing to ethical practices in all business operations.
- Innovation: Continuously enhancing the eCommerce experience through technology and user-friendly interfaces.
- Teamwork: Fostering a collaborative work environment to achieve common goals.
Strategic Objectives
- Market Leadership: Positioning CarParts.com as the go-to destination for consumers seeking auto parts online.
- Product Expansion: Increasing the range of available products to meet diverse customer needs.
- Technological Advancement: Investing in technology to streamline operations and enhance customer interactions.
Financial Overview
As of the third quarter of 2024, CarParts.com reported the following financial figures:
| Financial Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | YTD Q3 2024 (in thousands) | YTD Q3 2023 (in thousands) |
|---|---|---|---|---|
| Net Sales | $144,751 | $166,864 | $455,310 | $519,334 |
| Cost of Sales | $93,769 | $112,047 | $302,016 | $341,524 |
| Gross Profit | $50,982 | $54,817 | $153,294 | $177,810 |
| Gross Margin | 35.2% | 32.9% | 33.7% | 34.2% |
| Operating Expense | $60,900 | $57,734 | $178,457 | $180,935 |
| Net Loss | $10,018 | $2,517 | $25,183 | $2,137 |
Market Position and Trends
CarParts.com operates in a growing market with a strong emphasis on online sales. The U.S. Auto Care Association estimates that revenue from online sales of auto parts and accessories will exceed $23 billion by 2026. The average age of U.S. light vehicles has reached a record high of 12.6 years in 2024, creating increased demand for aftermarket parts.
As of September 28, 2024, CarParts.com had approximately 1,429,000 SKUs available, enhancing its competitive edge in the marketplace. The company is focused on reducing reliance on performance marketing channels while improving customer acquisition efficiency through innovative strategies.
How CarParts.com, Inc. (PRTS) Works
Company Overview
CarParts.com, Inc. operates as a leading online provider of aftermarket auto parts and accessories. The company primarily sells products to individual consumers through its flagship website, mobile app, and various online marketplaces.
Financial Performance
As of the third quarter of 2024, CarParts.com reported the following financial metrics:
| Metric | Thirteen Weeks Ended September 28, 2024 | Thirteen Weeks Ended September 30, 2023 | Thirty-Nine Weeks Ended September 28, 2024 | Thirty-Nine Weeks Ended September 30, 2023 |
|---|---|---|---|---|
| Net Sales | $144,751,000 | $166,864,000 | $455,310,000 | $519,334,000 |
| Cost of Sales | $93,769,000 | $112,047,000 | $302,016,000 | $341,524,000 |
| Gross Profit | $50,982,000 | $54,817,000 | $153,294,000 | $177,810,000 |
| Gross Margin | 35.2% | 32.9% | 33.7% | 34.2% |
| Operating Expense | $60,900,000 | $57,734,000 | $178,457,000 | $180,935,000 |
| Net Loss | $10,018,000 | $2,517,000 | $25,183,000 | $2,137,000 |
Operational Overview
The company has focused on refining its eCommerce experience, improving mobile app functionality, and enhancing brand awareness through innovative content channels. It aims to reduce reliance on performance marketing and improve customer acquisition efficiency.
Market Position
CarParts.com serves a growing market characterized by a significant increase in the average age of vehicles, which reached 12.6 years in 2024. This trend drives demand for aftermarket parts, particularly among DIY car owners.
Cash Flow Analysis
For the thirty-nine weeks ending September 28, 2024, key cash flow metrics included:
| Cash Flow Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $8,542 | $57,865 |
| Net Cash Used in Investing Activities | ($18,130) | ($7,297) |
| Net Cash Used in Financing Activities | ($3,345) | ($2,656) |
| Net Change in Cash and Cash Equivalents | ($12,846) | $47,912 |
Debt and Liquidity
As of September 28, 2024, CarParts.com reported total debt of $13,335,000, a decrease from $16,635,000 at the end of 2023. The company has a Credit Facility providing up to $75,000,000 in revolving commitments, maturing on June 17, 2027.
Working Capital
As of September 28, 2024, working capital stood at $57,343,000, down from $80,352,000 at the end of 2023, influenced by seasonal fluctuations in cash, inventory, and accounts payable.
Stockholder Equity
The company's stockholder equity as of September 28, 2024, was $97,199,000, with total liabilities reported at $130,440,000, resulting in total liabilities and stockholders' equity of $227,639,000.
Conclusion of Financial Metrics
CarParts.com continues to navigate a challenging consumer environment while focusing on strategic pricing and operational efficiencies to enhance profitability.
How CarParts.com, Inc. (PRTS) Makes Money
Revenue Streams
CarParts.com primarily generates revenue through the sale of automotive parts and accessories via its eCommerce platform. The company offers approximately 1,429,000 stock-keeping units (SKUs) catering to a wide range of automotive needs, which includes both OEM (original equipment manufacturer) and aftermarket parts.
Financial Performance Overview
For the third quarter of 2024, CarParts.com reported:
- Net sales of $144,751 (in thousands), a decrease of 13.3% from $166,864 in Q3 2023.
- Gross profit of $50,982, down 7.0% from $54,817 in Q3 2023.
- Gross margin increased to 35.2% from 32.9% year-over-year.
- Net loss of $10,018, compared to a net loss of $2,517 in Q3 2023.
Cost Structure
The breakdown of costs for the third quarter of 2024 is as follows:
| Item | Amount (in thousands) |
|---|---|
| Net Sales | $144,751 |
| Cost of Sales | $93,769 |
| Gross Profit | $50,982 |
| Operating Expenses | $60,900 |
| Loss from Operations | $(9,918) |
| Total Other Income, Net | $35 |
| Loss Before Income Taxes | $(9,883) |
| Net Loss | $(10,018) |
Operating Expenses
Operating expenses for the third quarter of 2024 totaled $60,900 (in thousands), reflecting an increase of 5.5% compared to $57,734 in Q3 2023. As a percentage of net sales, operating expenses constituted 42.1% for Q3 2024, up from 34.6% in Q3 2023.
Cash Flow and Capital Expenditures
For the thirty-nine weeks ended September 28, 2024:
- Net cash provided by operating activities was $8,542 (in thousands).
- Net cash used in investing activities was $(18,130), primarily for property and equipment additions.
- Net cash used in financing activities was $(3,345).
Debt and Equity
As of September 28, 2024, CarParts.com had total debt of $13,335 (in thousands), down from $16,635 at the end of 2023. The company's total liabilities stood at $130,440 (in thousands).
Market Position and Strategy
CarParts.com is positioned to capitalize on the growing trend of online automotive parts sales, which is projected to exceed $23 billion by 2026. The company is enhancing its eCommerce platform and mobile app to improve customer experience and drive sales.
Stock Performance
The weighted-average common shares outstanding as of September 28, 2024, were 57,334 thousand, resulting in a net loss per share of $(0.17).
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Article updated on 8 Nov 2024
Resources:
- CarParts.com, Inc. (PRTS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CarParts.com, Inc. (PRTS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CarParts.com, Inc. (PRTS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.