Press release
U.S. Auto Parts Reports Fourth Quarter and Full Year 2019 Results
- Q4 Private Label Sales up 15%; Drives Strongest Level of Gross Margin Since 2011 - CARSON, Calif., March 9, 2020 /PRNewswire/ -- U.S. Auto Parts Network,
About this update from Carparts.com, Inc.
[{"type":"text","content":"- Q4 Private Label Sales up 15%; Drives Strongest Level of Gross Margin Since 2011 -\n\n\nCARSON, Calif., March 9, 2020 /PRNewswire/ -- U.S. Auto Parts Network, Inc. (NASDAQ: PRTS), one of the largest online providers of aftermarket automotive parts and accessories, is reporting results for the fourth quarter and full year ended December 31, 2019. \n\n \n \n \n \n \n \n\n \nFourth Quarter 2019 Summary vs. Year-Ago Quarter\nPrivate label sales increased 15% Y/Y. Gross profit increased 28% to $21.2 million, with gross margin up 800 basis points to 33.7%. Net sales declined as expected to $63.0 million compared to $64.7 million due to reduction of unprofitable business lines. Net loss was $(25.1) million or $(0.70) per share, compared to a net loss of $(4.5) million or $(0.13) per share. Q4 2019 includes a $(21.5) million deferred tax valuation allowance. Adjusted EBITDA increased 137% to $1.7 million. Ended the quarter with no revolver debt.Full Year 2019 Summary vs. 2018\nPrivate label sales increased 6% Y/Y. Gross profit increased 7% to $84.2 million, with gross margin up 280 basis points to 30.0%. Net sales declined as expected to $280.7 million compared to $289.5 million due to reduction of unprofitable business lines. Net loss was $(31.5) million or $(0.89) per share, compared to a net loss of $(4.9) million or $(0.14) per share. The change was driven by the deferred tax valuation allowance and transition cost and detention related costs. Adjusted EBITDA was $4.5 million vs. $10.4 million.Management Commentary\n\"The fourth quarter marked a key inflection point in our business, as the strategies and initiatives we deployed over the course of 2019 began to materialize in our results,\" said Lev Peker, CEO of U.S. Auto Parts. \"Our elimination of unprofitable revenue and strict focus on private label sales led to our strongest level of gross margin in eight years. Further, our implementation of various cost reduction initiatives has created a leaner and more efficient operating model, which enabled us to more than double adjusted EBITDA to $1.7 million during the quarter. We began our turn-around strategy roughly one year ago, and these exceptional improvements tell us that our strategy is working.\n\"While we are very proud of our work last year and the improvements we have made. We view these recent results as a guidepost. Th...