Carparts.com, Inc. · NASDAQ:PRTS

Carparts.com — U.S. Auto Parts Network — Investor Presentation (December 2014)

18 slides from Carparts.com's investor presentation, Dec 1, 2014

  1. Slide 1: Investor Presentation

    Investor Presentation Exhibit 99.1

  2. Slide 2: 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 provided by Section

  3. Slide 3: Case for Investment

    Large and Growing Online Market Significant Customer Reach Significant Private Label Offering Experienced Leadership Team Case for Investment

  4. Slide 4: Online market penetration and 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 Company 2013 Est. Rev % of total Marketplaces (in million) Wholesale Online Pure Play Brick & Mortar Retailers Total 4,620 100.0% Total DIY Mar

  5. Slide 5: Online Market is Vibrant and Growing

    Booz & Co. estimates by 2018 that Online DIY could reach 17% of the total DIY market 8.3 8.4 8.8 8.9 8.9 9.6 9.7 9.8 9.8 9.9 10.0 10.1 10.3 10.6 10.9 11.1 11.3 The average age of a light vehicle on the road continues to increase each year since 1997 Online Market is Vibrant and Growing Aftermarket e

  6. Slide 6: Do It Yourself (DIY) Projections

    Offline $42.6 $43.5 $44.2 $44.8 $45.3 $45.5 Online 4.6 5.5 6.6 8.0 9.5 11.5 Total $47.2 $49.0 $50.9 $52.8 $54.8 $56.9 % Online 9.8% 11.3% 13.0% 15.1% 17.4% 20.1% Do It Yourself (DIY) Projections Projections obtained from AAIA 2014 Digital Automotive Aftermarket Fact Book and March 2014 AASA Digital

  7. Slide 7: US Auto Parts Dominant Reach - Largest Pure Play Internet Retailer

    (some overlap of monthly visitors across websites) USAP traffic includes traffic from continued sales channels Competitive sites’ traffic based on Compete September 2014 reports US Auto Parts Dominant Reach- Largest Pure Play Internet Retailer Customer Reach is a Competitive Moat • Over 500 man year

  8. Slide 8: 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 *Represents USAP online mix 36% 48% 16% Revenue* Broad Auto Parts P

  9. Slide 9: USAP's Supply Chain Creates Pricing Advantage

    In-Stock Private Label (Asia Sourced) Branded (U.S. Sourced) Drop Shipped Current Mix Current Mix The breadth of our Private Label products provides a significant competitive moat USAP’s ability to competitively price products while maintaining healthy margins is a function of the Company’s ability

  10. Slide 10: Growth and Profitability

    10% - 13% We anticipate to have double digit comps in the back half of the year Revenue 100% Gross Margins 25% - 28% Variable OPEX Costs 15% Fixed Cost 0% Incremental Flow Incremental Flow Thru Growth and Profitability

  11. Slide 11: Slide 11

  12. Slide 12: AutoMD - Repair Lead Generation Site

    AutoMD – Repair Lead Generation Site Overview • Repair lead generation site addresses the DIFM market Recent Strategic Investment • $12.5M pre-money valuation • Raised $7.0M in capital • Fed Mogul: $3.0M • Cox Automotive: $2.0M • Insiders: $2.0M • Post-funding valuation of $19.5M • USAP in control w

  13. Slide 13: Case for Investment

    Large and Growing Online Market Significant Customer Reach Significant Private Label Offering Experienced Leadership Team Case for Investment

  14. Slide 14: Management team

    Shane Evangelist - Chief Executive Officer Chief Executive Officer since October 2007 with over 10 years of leading internet businesses Senior Vice President and General Manager of Blockbuster Online Vice President of Strategic Planning for Blockbuster Inc. B.A. degree in Business Administration fro

  15. Slide 15: Over $19M of costs have been reduced over a two year period

    Over $19M of costs have been reduced over a two year period Adjusted EBITDA (Non-GAAP Financial Measure – in thousands) Thirteen Weeks Ended Twenty-Six Weeks Ended September 27 September 28 September 27 September 28 Net loss (2,494) $ (1,399) $ (4,473) $ (14,309) $ Interest expense, net Income tax p

  16. Slide 16: Consolidated Statements of Comprehensive Operations

    Consolidated Statements of Comprehensive Operations (Unaudited, in Thousands, Except Per Share Data) (1) Excludes depreciation and amortization expense which is included in marketing, general and administrative and fulfillment expense. Thirteen Weeks Ended Twenty-Six Weeks Ended September 27 Septemb

  17. Slide 17: Consolidated Balance Sheet

    Consolidated Balance Sheet (Unaudited, in Thousands, Except Par and Per Share Liquidation value) September 27 December 28 ASSETS Current assets: Cash and cash equivalents 1,255 $ $ Short-term investments Accounts receivable, net of allowances of $295 and $213 at June 28, 2014 and December 28, 2013,

  18. Slide 18: Sales & Adjusted EBITDA

    Consolidated Sales 1 ($ In Millions) Consolidated Adjusted EBITDA 2 ($ In Millions) Sales & Adjusted EBITDA Adj. EBITDA Margin 3% 5% 8% 7% 3% 2% 3% $5.2 $13.5 $19.5 $16.3 $9.4 $6.0 $6.7 Q1.14 - Q3.14 $153.4 $176.3 $262.3 $327.1 $304.0 $254.8 $212.9 Q1.14 - Q3.14 1. JC Whitney was acquired in Aug 201

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