Carparts.com, Inc. · NASDAQ:PRTS
Carparts.com — U.S. Auto Parts Network — Investor Presentation (June 2014)
22 slides from Carparts.com's investor presentation, Jun 3, 2014
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation
Slide 2: Safe Harbor
Safe This performance all 2factors ofHarbor presentation you thattocan the andcause risk speak mayfactors actual contain onlycontained results ascertain of the to date forward-looking differ in US hereof, materially Auto and Partsqualify statements from Annual those for Report the and projected safe
Slide 3: Investment highlights
CaseDebt Large Bringing 3No for andInvestment and Pricing Growing overTransparency $10M Online in Market Bank to Borrowing the Significant Do It For Availability Customer Me Customer Experienced Reach through Significant AutoMD Leadership PrivateTeam Label Offering Reduced Cost Structure
Slide 4: Q1 2014 Highlights
Highlights Go Adjusted 4As of forward 5/6 EBITDA -gofrom $3M sales forward Q1-14 ofchannels was less cash trend Earnings CAPEX $3.3M onup for the11% Q2 up balance was Call from trending with $1.8M sheet $1.5M total up upwith comps 20% in from Q1-13 noand up ($1.1M) debt 4% overall andinbank comps Q1
Slide 5: Recent Revenue Trends
Recent 25.0% Q1 Continued 11.4% 20.0% (5.0%) (6.4%) 2.7% 4.0% Completed Q2 13.5% 20.0% Q3 (15.5%) Revenue Q4 Sale the15.0% Q1 retirement Channels (16.0%) Trends As 10.0% of 2013 Total of 5.0% a2013 number 0.0% 2013 of-5.0% 2013 websites -10.0% 2014by5/6/14 the -15.0% end of -20.0% 2Q ‘13-25.0% (25.0
Slide 6: Consolidated Sales and Adjusted EBITDA
Sales $153.4 Consolidated ($ $5.2 2008 3% Adj. 1. 2. excludes 6$23.4M, JC Non-GAAP In8% $13.5 EBITDA Millions) 2009 Whitney &$176.3 7% Adjusted $0.4M, Stock $19.5 2010 5%Adjusted Sales1 Margin was financial $262.3 based 3% 2011 $5.8M, $16.3 EBITDA acquired 2%compensation 2012 $327.1 EBITDA2 5% $9.4
Slide 7: Do It Yourself Auto Parts Market Size
DoExcludes At Total $4.6B 90.3% $42.6B Company Other 732$90 Estimates 9.7% It$940 DIY Yourself Pure 9.7% online $110 Marketplaces Market Play AutoAnything by (DIY) US $80 market Sub Size Auto $30 Total Market penetration, for $20 eBay Parts which Brick 2013 $10 Size Motors where of & $250 is 47.2B1
Slide 8: Online Aftermarket e-Commerce Is Vibrant and Growing
Online Aftermarket Booz 2012 18.0% 8DIY Online 2013 &16.0% Market Co.2014 Penetration estimates e-Commerce 14.0% is2015 Vibrant 12.0% 2016 by and 2018 Overview 2017 10.0% Growing that 2018 8.0% Online 6.0% DIY4.0% could2.0% reach0.0% 17%20.2% of the CAGR total DIY market
Slide 9: DIY Online Revenue Projections
DoProjections 1% Revenue 2013 DIY Offline Online 9Total Online ItProjected 2014 $47.2 Yourself 4.6 Online $42.6 Increase 9.8% 5.5 2015 $49.0 obtained $43.5 (DIY) 6.6 Y/Y Revenue Total 11.3% 2016 $50.9 2.5 8.0 Revenue $44.2 Projections1 2.0 9.5 2017 13.0% from (in $52.8 1.5 11.5 $44.8 Billions) 2018
Slide 10: Largest Online Customer Reach
(some Customer Over Long Multiple Monthly 10,000 US AUTOZONE.COM OREILLYAUTO.COM CARID.COM USAP 10 Auto AUTO 500 domain overlap traffic 8,000 Visitors website Parts man Reach PARTS includes 6,000 history of years Dominant is management monthly (thousands) a4,000 PARTSGEEK.COM of Competitive totraffi
Slide 11: Broad Product Offering
Broad US Body Engine Performance Lamps Hoods Grills Brake Headers Exhaust Seat Cold Nerf Revenue* *Represents 11 Auto Covers Bars Air Parts Wheels Discs Auto Tailgates Mirrors Parts Driveshaft Oxygen Vent Parts Bug 48% Parts Car Catalytic USAP &Window Visors has Shields Bumpers Accessories 36% Doors
Slide 12: Adding Private Label Products
USAP’s Currently Adding Private Branded Current In-Stock 30% Margin 15% 68% 60% 40% The 12 moatCompany breadth - 30% 32% Current 60% Label % 4,000 Mix Supply ability (U.S. Drop over 5% ofMix (Asia –sources Shipped Sourced) 40,000 our to -5,000 Chain 20% competitively Private Sourced) Private Private
Slide 13: Recent Incremental Revenue and Profitability Trends
Growthnew Recent Incremental Revenue 13 and 100%trends Profitability FlowGross Thru for Margins our go forward 27% - 29% salesVariable channel OPEX are growing Costs at 15%20% Fixed as ofCost the 5/6 0%earnings Incremental call Flow 12% - 14%
Slide 14: USAP Operating Expense Structure
USAP$19M OPEX Fulfillment* Marketing* Technology* General Subtotal Fixed Variable D&A Restructuring CAPEX Total Annualized *Excludes Over 14 20,205 OPEX and & Cost has (in & Stock 1,558 10,170 17,376 Stock thousands) significantly Administrative* non-cash 7,206 87,053 of 8,691 20,205 & 3,935 29.7% 1
Slide 15: Financial Base Case and Adjusted EBITDA Sensitivity
Financial Our Base Revenue Gross $255 Variable: Fulfillment Fixed: Marketing Technology G&A Total Adjusted 1. 2. 3. 15 2013 Excludes For business 8% $300 Variable Fixed 1.7% 3.8% Margin every Revenue $275 18% EBITDA Sensitivity 9.2% 3.5% $350 3.4% 2.3% 1.7% 3.5% 11.2% stock 0.6% 1.1% incremental mod
Slide 16: AutoMD – Addressing the DIFM Market
AutoMD – Addressing the DIFM Market 16
Slide 17: Investment highlights
CaseDebt Large Bringing No for andInvestment and Pricing Growing overTransparency $10M Online in Market Bank to Borrowing the Significant Do It For Availability Customer Me Customer Experienced Reach through Significant AutoMD Leadership PrivateTeam Label17Offering Reduced Cost Structure
Slide 18: Leadership Team
Leadership Shane B.A. Inc. David Over of Aaron Chief Online Multiple Charles Senior Business Finance degree 20 Executive Financial Operating Evangelist Robson E. Vice Systems Fischer years positions Development Coleman and Team President inof -Business Principal Officer -at Chief Officer finance, Se
Slide 19: Adjusted EBITDA Reconciliation
(Non-GAAP Thirteen March 2014 Net Interest Income Amortization Depreciation EBITDA Share-based Restructuring Adjusted 19 income 2013 29 expense, tax Weeks 2,944 EBITDA March provision (loss) compensation Financial and of costs 607 Ended intangible net 30 amortization $$-201 259 3,320 498 32Measure $
Slide 20: Consolidated Statements of Operations
Consolidated (Unaudited, Thirteen March Cost Gross Operating Marketing General Fulfillment Technology Amortization Interest Income Other Foreign Total Comprehensive Net Weighted Basic Diluted (1)Excludes 20 sales income of operating other $comprehensive 33,384 income profit 29, sales 0.00 expense (l
Slide 21: Consolidated Balance Sheet
Consolidated (Unaudited, ASSETS Cash Short-term March Inventory Property Intangible LIABILITIES Accounts Accrued Revolving Current Capital Deferred Other Stockholders’ Series per shares 33,413 at Additional Common Accumulated Total 21 March share and assets current stockholders’ liabilities current
Slide 22: Online Aftermarket e-Commerce Is Vibrant and Growing
Aftermarket Online eBay Google $2.3 $2.1 $2.2 $1.9 $2.0 $1.8 $1.5 $1.6 $1.3 Q1-10 $1.2 16% Source: 22 $2.2 $2.1 $1.9 $1.8 $1.5 $1.3 CAGR Parts Q2-10 Market sales Queries eBay Google $2.1 $1.5 $1.3 Sales e-Commerce offilings, Q3-10 $2.0 is automotive for Continue Vibrant Parts $1.9 Q4-10 press$1.8 Gr
U.S. Auto Parts Network — Investor Presentation (June 2014) on 6ix