Carparts.com, Inc. · NASDAQ:PRTS
Carparts.com — U.S. Auto Parts Network — Investor Presentation (August 2018)
23 slides from Carparts.com's investor presentation, Aug 9, 2018
Slide 1: Safe Harbor
Safe Harbor 1 This presentation contains “forward-looking” statements, within the meaning of the federal securities laws, that are based on our management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include information concerning our pos
Slide 2: Company Overview
Company Overview US Auto Parts is a leading pure-play internet retailer of aftermarket auto parts We operate online sites, marketplace storefronts and wholesale channels focused on the do-it-yourself (DIY) customer Offer over 1 million SKUs of high quality private label and branded aftermarket produ
Slide 3: Online Aftermarket Auto Parts Sales Benefits From Macro Trends
Online Aftermarket Auto Parts Sales Benefits From Macro Trends 3 Source: US Auto Care Association Average age of light vehicles on the road remains high Online aftermarket sales to more than double by 2023 as market share continues to increase Source: IHS 17% CAGR (in years) 10.0 10.1 10.3 10.6 10.9
Slide 4: How We Go To Market: Channels & Percent of Revenue
How We Go To Market: Channels & Percent of Revenue 4 90% Offline/Wholesale: Products distributed directly to commercial customers and our Kool-Vue® branded products sold to wholesale distributors. 10% Based on estimates using Trailing Twelve Months (TTM) Q2-18 eCommerce Websites: Network of flagship
Slide 5: By focusing on the consumer experience, we will increase conversion
By focusing on the consumer experience, we will increase conversion which we believe will allow us to drive more traffic Product Discovery The Customer Journey Experience Landing Experience “To captivate and engage customers with our website in order to win their attention.” Post-Purchase Experience
Slide 6: Price & Product Availability: The Two Most Important Factors for DIY Customers
Price & Product Availability: The Two Most Important Factors for DIY Customers Customer Value Proposition 7 Value Cost-conscious customers are able to purchase our private label products at a significant cost savings. Private label product pricings when compared against the same branded product aver
Slide 7: We Address the Market with an Expansive Product Offering
We Address the Market with an Expansive Product Offering Over 1 Million SKUs Across Several Categories 8 Brake Discs Catalytic Converters Radiators Headers Oxygen Sensors Alternators Exhaust Driveshaft Fuel Injection / Delivery Lamps Mirrors Bumpers Hoods Tailgates Doors Grills Wheels Window Regulat
Slide 8: Efficient Supply Chain Creates a Pricing Advantage
Efficient Supply Chain Creates a Pricing Advantage 9 USAP has built a vertically integrated online business Importer Center Brand Warehouse Distributor Service Center Consumer Retail Store Consumer Off-Shore Manufacturing ~20% of Units Drop-Ship Jobber ~80% of Units Stock-Ship DIY DIFM = Product Flo
Slide 9: Overview of Custom Issues
Overview of Custom Issues On April 2, 2018, U.S. Auto Parts filed a lawsuit against the United States Department of Homeland Security (“DHS”) which has oversight over the Customs and Border Protection (“Customs”) in the United States Court of International Trade (the “Court”) (Case No. 1:18-cv-00068
Slide 10: Overview of Custom Issues
Overview of Custom Issues _ AUTOPARTS: NASDAQ:PRTS > On April 2, 2018, U.S. Auto Parts filed a lawsuit against the United States Department of Homeland Security (“DHS”) which has oversight ‘over the Customs and Border Protection (“Customs”) in the United States Court of International Trade (the “Cou
Slide 11: Strong Net Income & Adjusted EBITDA Growth Trends for U.S. Auto Parts
Strong Net Income & Adjusted EBITDA¹ Growth Trends for U.S. Auto Parts Non-GAAP financial measure Adjusted EBITDA consists of net income before interest expense, net; income tax provision; depreciation and amortization expense; amortization of intangible assets; restructuring costs; share-based comp
Slide 12: Financial Performance
Financial Performance 14 Non-GAAP financial measure Adjusted EBITDA consists of net income before interest expense, net; income tax provision; depreciation and amortization expense; amortization of intangible assets; restructuring costs; share-based compensation expense; and costs associated with ou
Slide 13: Year Stacked Private Label Quarterly Sales Trend
2 Year Stacked Private Label Quarterly Sales Trend1 15 Private Label continues to be a major focus of our business Two Year Stack Comps 1Comparables net sales was calculated by excluding $2.0M in private label sales related to the extra week in Q4-14, as well as $1.7M, $1.4M, $0.8M and $0.5M in sale
Slide 14: Key Takeaways
Key Takeaways A leading pure-play internet retailer of aftermarket auto parts $13 billion on-line market expected by 2018 and anticipated to nearly double by 20231 Extensive reach across our websites and marketplace partnerships Transitioning to a higher mix of private label products to drive increa
Slide 15: Key Takeaways
AUTOPARTS NASDAQ:PRTS Key Takeaways > A leading pure-play internet retailer of aftermarket auto parts > $13 billion on-line market expected by 2018 and anticipated to nearly double by 20231 >» Extensive reach across our websites and marketplace partnerships > Transitioning to a higher mix of private
Slide 16: Company History
Launched first internet site selling automotive Collision Line Launches a network of sites catered to various consumer segments Company begins significantly expanding its private label engine line JC Whitney completely integrated 1995 2000 2010 2005 2006 2011 Acquires JC Whitney Adds Accessories Lin
Slide 17: Experienced Leadership Team
Experienced Leadership Team Aaron E. Coleman Chief Executive Officer Since April 2017 President since October 2016 and COO since September 2010 Vice President of Operations and CIO from April 2008 - September 2010 Over 18 years of e-commerce experience Senior Vice President – Online Systems at Block
Slide 18: Financial Highlights – Q2-18
Financial Highlights – Q2-18 Total revenue $77.0M Net income (loss) from continuing operations was ($0.5M) vs. the prior year $26.9M. Last year included a $25.9M benefit due to the release of valuation tax allowance Adjusted EBITDA1 $2.8M vs. prior year of $3.8M $6.8M in cash with zero revolver debt
Slide 19: Key Business Metrics Over Last Nine Quarters
Key Business Metrics Over Last Nine Quarters Margin % Y/Y BPS Change Private Label % Mix Y/Y BPS Change Conversion Q2-1827.9%-1.1%Q2-1875%3%Q1-1829.9%0.5%Q1-1876%5%Q4-1730.3%0.2%Q4-1772%4%Q3-1729.6%-0.9%Q3-1772%6%Q2-1729.0%-1.4%Q2-1772%7%Q1-1729.4%-1.0%Q1-1771%4%Q4-1630.1%0.5%Q4-1668%5%Q3-1630.5%0.8
Slide 20: Yearly Adjusted EBITDA Reconciliation
Yearly Adjusted EBITDA Reconciliation FY-1352 Weeks Ending December 28, 2013 FY-1453 Weeks Ending January 2, 2015 FY-1552 Weeks Ending January 2, 2016 FY-1652 Weeks Ending December 31, 2016 FY-17 52 Weeks Ending December 30, 2017 Q2-18 TTM52 Weeks Ending June 30, 2018 (in thousands) Net income (loss
Slide 21: Quarterly Adjusted EBITDA Reconciliation
Quarterly Adjusted EBITDA Reconciliation 23 (in thousands) Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Net income (loss) $ 187 $ (611) $ 353 $ (65) $ 1,537 $ 1,216 $ 358 $ (195) $ 816 $ 26,918 $ 919 $ (4,079) $ 735 $ (485) Depreciation 1,549 1,484 1,539 1,570
Slide 22: Key Stats: PRTS (NASDAQ) – Consolidated
Key Stats: PRTS (NASDAQ) – Consolidated Data sources: Yahoo! Finance, S&P Capital IQ, company filings. Includes 2.8M preferred shares As of June 30, 2018 Trading Data (@ August 6, 2018) Stock Price $1.36 52 Wk. High/Low $3.14/1.32 Avg. Daily Vol. (3 mo.) 193,400 Shares Outstanding1 35.0M Institution
Slide 23: Key Stats: PRTS (NASDAQ) – Consolidated
Key Stats: PRTS (NASDAQ) — Consolidated AUTOPARTS’ NASDAQ:PRTS Trading Data (@ August 6, 2018) Financial Highlights (@ sune 30, 2018) Stock Price $1.36 Revenues (rm) $297.7M 52 Wk. High/Low $3.14/1.32 Gross Margin (r™m) 29.4% Avg. Daily Vol. (3 mo.) 193,400 Cash & Equiv. $6.8m Total Assets $104.7M S
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