Carparts.com, Inc. · NASDAQ:PRTS
Carparts.com — U.S. Auto Parts Network — Investor Presentation (May 2014)
22 slides from Carparts.com's investor presentation, May 27, 2014
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation
Slide 2: Safe Harbor
Safe Harbor This presentation may contain certain forward-looking statements and management may make additional forward-looking statements in response to your questions. These statements do not guarantee future performance and speak only as of the date hereof, and qualify for the safe harbor provide
Slide 3: Case for Investment
Case for Investment Large and Growing Online Market Significant Customer Reach Significant Private Label Offering Reduced Cost Structure No Debt Experienced Leadership Team 3
Slide 4: Highlights from Q1-14 Earnings Call
Highlights from Q1-14 Earnings Call Go forward sales channels up 11% with total comps up 4% As of 5/6 go forward trend for Q2 trending up 20% and overall comps up 13% Adjusted EBITDA was $3.3M up from $1.5M in Q1-13 Adjusted EBITDA less CAPEX was $1.8M up from ($1.1M) in Q1-13 As of 5/6 - $3M of cas
Slide 5: Recent Revenue Trends
Recent Revenue Trends Completed the retirement of a number of websites by the end of 2Q ‘13 5
Slide 6: Sales & Adjusted EBITDA
Sales & Adjusted EBITDA Consolidated Sales 1 Consolidated Adjusted EBITDA2 ($ In Millions) ($ In Millions) 1. JC Whitney was acquired in Aug 2010 adding revenue of $39.1M in 2010 and $83.4M in 2011. Amounts not separately disclosed after 2011. 2. Non-GAAP financial measure EBITDAconsists of net inco
Slide 7: Do It Yourself (DIY) Market Size
Do It Yourself (DIY) Market Size At 9.7% online market penetration, auto parts still lags industry average in the teens. US Auto Parts is the largest pure-play online retailer of auto parts Total DIY Market Size for 2013 of 47.2B 1 Company 2013 Est. Rev 2 % of total Marketplaces (in million) eBay Mo
Slide 8: Online Market is Vibrant and Growing
Online Market is Vibrant and Growing Aftermarket e-Commerce Overview Online sales of automotive parts and accessories have grown in the high teens and are expected to grow at 20% going forward eBay Parts Sales Continue to Increase Google Queries for Parts Growing Source: eBay filings, press releases
Slide 9: Online Market is Vibrant and Growing
Online Market is Vibrant and Growing Aftermarket e-Commerce Overview Booz & Co. estimates by 2018 that Online DIY could reach 17% of the total DIY market DIY Online Penetration 9
Slide 10: Do It Yourself (DIY) Projections
Do It Yourself (DIY) Projections 1 DIY PROJECTED REVENUES (in millions) 2012 2013 2014 2015 2016 2017 2018 Offline $42,544 $43,331 $44,388 $45,306 $46,120 $46,778 $47,236 Online 3,202 3,827 4,611 5,549 6,680 8,041 9,680 $45,746 $47,158 $48,999 $50,855 $52,800 $54,819 $56,916 DIY PROJECTED MARKET SHA
Slide 11: US Auto Parts Dominant Reach - Largest Pure Play Internet Retailer
US Auto Parts Dominant Reach- Largest Pure Play Internet Retailer (some overlap of monthly visitors across websites) Customer Reach is a Competitive Moat • Over 500 man years of hand written unique content • Long domain history to help indexing in search • Multiple website management USAPtraffic inc
Slide 12: Broad Auto Parts Product Offering
Broad Auto Parts Product Offering US Auto Parts has one of the largest product offerings with over 1.5 million products across body parts, engine parts, and performance & accessories Body Parts Engine Parts Performance & Accessories Lamps Mirrors Bumpers Brake Discs Catalytic Radiators Seat Covers C
Slide 13: USAP's Supply Chain Creates Pricing Advantage
USAP’s Supply Chain Creates Pricing Advantage USAP’s ability to competitively price products while maintaining healthy margins is a function of the Company’s ability to leverage its robust private label supply chain. – Currently over 40,000 Private Label Products. – Adding 4,000 – 5,000 Private Labe
Slide 14: Growth and Profitability
Growth and Profitability Recent new trends for our go forward sales channel are growing at 20% as of the 5/6 earnings call Incremental Flow Thru Revenue 100% Gross Margins 27% - 29% Variable OPEX Costs 15% Fixed Cost 0% Incremental Flow 12% - 14% 14
Slide 15: USAP has significantly reduced operating cost
USAP has significantly reduced operating cost OPEX (in thousands) Q1-14 % of rev Q1-13 % of rev $ Change % of rev change Fulfillment* 3,935 5.8% 3,994 6.1% (59) (30 bps) Marketing* 8,691 12.8% 8,967 13.7% (276) (90 bps) Technology* 1,129 1.7% 1,395 2.1% (266) (40 bps) General & Administrative* 3,620
Slide 16: Financial Sensitivity
Financial Sensitivity Our business model has significant cost leverage as revenues grow Base 8% 18% 27% 37% Revenue $255 $275 $300 $325 $350 Gross Margin % 27.0% – 29.0% 27.0% – 29.0% 27.0% – 29.0% 27.0% – 29.0% 27.0% – 29.0% Variable: Fulfillment 3.4% 3.4% 3.4% 3.4% 3.4% Marketing 9.2% 9.2% 9.2% 9.
Slide 17: AutoMD – Addressing the DIFM Market
AutoMD – Addressing the DIFM Market 17
Slide 18: Case for Investment
Case for Investment Large and Growing Online Market Significant Customer Reach Significant Private Label Offering Reduced Cost Structure over No Debt Experienced Leadership Team 18
Slide 19: Leadership Team
Leadership Team Shane Evangelist - Chief Executive Officer Charles Fischer - Senior Vice President of Global Procurement Chief Executive Officer since October 2007 with over 10 years of Senior Vice President of Global Sourcing and Procurement since May 2008 leading internet businesses with over 30 y
Slide 20: Adjusted EBITDA
Adjusted EBITDA (Non-GAAP Financial Measure – in thousands) Thirteen Weeks Ended March 29 March 30 2014 2013 Net income (loss) $ 201 $ (3,343) Interest expense, net 259 185 Income tax provision 32 21 Amortization of intangible assets 84 106 Depreciation and amortization expense 2,368 3,638 EBITDA 2,
Slide 21: Consolidated Statements of Comprehensive Operations
Consolidated Statements of Comprehensive Operations (Unaudited, in Thousands, Except Per Share Data) Thirteen Weeks Ended March 29, 2014 March 30, 2013 Net sales $ 68,028 $ 65,405 Cost of sales (1) 47,327 45,667 Gross profit 20,701 19,738 Operating expenses: Marketing 10,115 11,191 General and admin
Slide 22: Consolidated Balance Sheet
Consolidated Balance Sheet (Unaudited, in Thousands, Except Par and Per Share Liquidation value) March 29 December 28 ASSETS 2014 2013 Current assets: Cash and cash equivalents $ 1,392 $ 818 Short-term investments 39 47 Accounts receivable, net of allowances of $152 and $213 at March 29, 2014 and De
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