Carparts.com, Inc. · NASDAQ:PRTS
Carparts.com — U.S. Auto Parts Network — Investor Presentation (May 2012)
18 slides from Carparts.com's investor presentation, May 15, 2012
Slide 1: U.S. Auto Parts Network, Inc. Investor Presentation
Exhibit 99.1 U.S. Auto Parts Network, Inc. Leading online source for automotive aftermarket parts and repair information Investor Presentation May 2012 1
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: US Auto Parts Competitive Advantages
US Auto Parts Competitive Advantages US Auto Parts is a dominant e-commerce specialty retailer of aftermarket auto parts to the Do It Yourself market and is uniquely positioned to win. Low Cost Acquisition Efficient Supply Chain Significant Capacity Reach nearly 15mm monthly Over 40% of product dire
Slide 4: US Auto Parts History
US Auto Parts History 1995 Founded and serviced local body shops in Los Angeles 2000 Launched first internet site selling automotive Body Parts 2000-2005 Launched a network of sites catered to consumer segments 2006 Acquired PartsBin - Engine IPO (NASDAQ: PRTS), hired new CEO 2007 Launched a network
Slide 5: Sales & Adjusted EBITDA
Sales & Adjusted EBITDA Consolidated Sales Consolidated Adjusted EBITDA ($ In Millions) ($ In Millions) (4) (2) $327.1 $19.5 Year Impacted by: • JCW Acquisition (3) $262.2 $16.3 • $7.4m of restructuring (1) charges for JCW $13.5 • Adjusted EBITDA for USAP of $19.1m and $176.3 JCW with a loss of ($2.
Slide 6: Financial Sensitivity
Financial Sensitivity Our business model has significant cost leverage as revenues grow Base 10% 20% 30% 40% 50% Revenue $327 $360 $392 $425 $458 $491 Gross Margin % 30.0% - 33.0% 30.0% - 33.0% 30.0% - 33.0% 30.0% - 33.0% 30.0% - 33.0% 30.0% - 33.0% Variable: Fulfillment 2.4% 2.4% 2.4% 2.4% 2.4% 2.4
Slide 7: 2012 Growth and Profitability
2012 Growth and Profitability Revenue Growth Incremental EBITDA Flow Thru 1) Improve Customer Experience Revenue 100% Continue to improve all customer touch points 2) Lower Prices Gross Margins 30% - 33% Launch disruptive price points through supply chain efficiencies 3) Increase Selection Variable
Slide 8: Broad Product Offering Unavailable from Traditional Off-Line Retailers
Broad Product Offering Unavailable from Traditional Off-Line Retailers Engine Parts Performance & Accessories Body Parts Brake Discs Catalytic Radiators Seat Covers Car Covers Floor Mats / Lamps Mirrors Bumpers Converters Carpeting Headers Oxygen Alternators Cold Air Vent Visors Tonneau Hoods Tailga
Slide 9: Low Online Penetration - Mobile Growth Opportunity
Low Online Penetration- Mobile Growth Opportunity Retail Category e-Commerce Penetration Rates Source : Forrester; Wall Street research; Autopartswarehouse.com 9
Slide 10: Online vs. Brick and Mortar Customer – Mobile Growth Should Accelerate Penetration
Online vs. Brick and Mortar Customer – Mobile Growth Should Accelerate Penetration Los Angeles DMA * Compared to AutoZone and the general population, USAP customers over-index in affluent segments, typical of e-commerce shoppers Affluent Suburbia The wealthiest households in the U.S. living in exclu
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) 15,000 Legacy Monthly Visitors* Conversion Rate * 11,000 1.70% 1.60% 12,000 10,000 1.50% 9,000 1.40% 8,000 1.30% 9,000 7,000 1.20% 6,000 1.10% 5,000 1.00% 2008 2009 2010 2011 2012 200
Slide 12: Pricing Competitive Advantage Through Supply Chain Efficiencies
Pricing Competitive Advantage Through Supply Chain Efficiencies Product margin/price competitiveness determined more by sourcing strategy than product categories. Current margins range from 30% - 33%. Margin % In-Stock Drop Ship Current Goal Private Label 40% - 70% 40% 50% (Asia Sourced) Branded 25%
Slide 13: Low Cost Operating Structure Reduces Overhead and Enables Scale
Low Cost Operating Structure Reduces Overhead and Enables Scale Corporate Functions Job functions are shared between the US and Philippines with a majority of the work being performed in the Philippines. Acquisition/Retention Marketing Website Product Development Call Center Operations Product Sourc
Slide 14: AutoMD - Largest DIY Site Repositioned to Target $140B DIFM Market
AutoMD- Largest DIY Site Repositioned to Target $140B DIFM Market 14
Slide 15: Adjusted EBITDA
Adjusted EBITDA Thirteen Weeks Thirteen Weeks Ended Ended (Amounts shown in thousands) March 31 April 2 2012 2011 (Unaudited) (Unaudited) Net loss $ (788) $ (245) Interest expense, net 199 264 Income tax provision 124 18 Amortization of intangibles 340 1,627 Depreciation and amortization 3,747 3,003
Slide 16: Income Statement
Income Statement Thirteen Weeks Thirteen Weeks Ended Ended (Amounts shown in thousands) March 31 April 2 2012 2011 (Unaudited) (Unaudited) Net sales $ 87,436 $ 86,978 Cost of sales 60,808 56,562 Gross profit 26,628 30,416 Operating expenses: Marketing 13,450 13,585 General and administrative 5,870 8
Slide 17: Balance Sheet
Balance Sheet (Amounts shown in thousands) March 31, 2012 December 31, 2011 ASSETS (unaudited) Current assets: Cash and cash equivalents $ 8,834 $ 10,335 Short-term investments 1,893 1,125 Accounts receivable, net of allowance of $236 and $183, respectively 9,189 7,922 Inventory 46,109 52,245 Deferr
Slide 18: Thank You
AUTOPARTS' Thank You
U.S. Auto Parts Network — Investor Presentation (May 2012) on 6ix