Carparts.com, Inc. · NASDAQ:PRTS
Carparts.com — U.S. Auto Parts Network — Investor Presentation (May 2017)
24 slides from Carparts.com's investor presentation, May 15, 2017
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, marketplaces and wholesale channels focused on the do-it-yourself (DIY) customer Offer over 1 million SKUs of high quality private label and branded aftermarket products Reach ~
Slide 3: Aftermarket Auto Parts Sales Benefits From Macro Trends
Aftermarket Auto Parts Sales Benefits From Macro Trends 3 Source: US Auto Care Association Average age of light vehicles on the road continues to remain strong Online aftermarket sales expected to be $13.2B in 2018 and more than double by 2023 Source: IHS 10.0 10.1 10.3 10.6 10.9 11.0 11.2 11.4 11.5
Slide 4: How We Go To Market: Channels & Percent of Revenue
How We Go To Market: Channels & Percent of Revenue 4 91% Offline/Wholesale: Products distributed directly to commercial customers, mostly collision repair shops. Also our Kool-Vue™ branded products sold to wholesale distributors. 9% Based on estimates using TTM Q1-17 eCommerce Websites: Network of f
Slide 5: 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 5 Low Cost Products Cost-conscious customers are able to purchase our private label products at a significant cost savings. A study conducted by Jefferies Automotive Aftermarket Equity Research
Slide 6: 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 6 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 7: USAP Supply Chain Creates Pricing Advantage
USAP Supply Chain Creates Pricing Advantage 7 USAP has built a vertically integrated e-commerce business Importer Center Brand Warehouse Distributor Service Center Consumer Retail Store Consumer Off-Shore Manufacturing ~30% of Units Drop-Ship 3%-10% Flow Thru Jobber ~70% of Units Stock-Ship 16%- 21%
Slide 8: Projected Margin Profile
Private Label Branded Total FY-16 Growth Rate1 12% (8%) 4% Projected Revenue Mix 68% - 70% 30% - 32% 100% Projected Gross Margins 33% - 36% 15% - 20% 29% - 30% Projected Variable OPEX Costs 15% - 17% 10% - 12% 14% - 16% Incremental Fixed Cost 0% 0% 0% Incremental Flow Thru 16% - 21% 3% - 10% 13% - 1
Slide 9: Projected Margin Profile
AUTOPARTS NASDAQ:PRTS Private Total Label Branded Projected Margin Profile > Incremental flow through FY-16 from private label . Growth Rate! 12% (8%) 4% business is driving higher margins Projected 68%-70% 30%-32% 100% a : Revenue Mix > Minimal fixed costs creates significant Proj ; , jected levera
Slide 10: Company Profile
Company Profile Revenues over $300M FY-2016 Net Income of $3M FY-2016 Adjusted EBITDA of $14M High Margin private label business is 66% of sales for FY-16 Positive Free Cash Flow with no revolver debt over last 4 quarters Public Company since 2007 – NASDAQ (PRTS) 10 Non-GAAP financial measure EBITDA
Slide 11: Strong Net Income & Adjusted EBITDA Growth Trends
Strong Net Income & Adjusted EBITDA¹ Growth Trends for U.S. Auto Parts Non-GAAP financial measure EBITDA consists of net income before (a) interest expense, net; (b) income tax provisions; (c) amortization of intangible assets; (d) depreciation and amortization. Adjusted EBITDA excludes Stock based
Slide 12: Financial Performance
Financial Performance Non-GAAP financial measure EBITDA consists of net income before (a) interest expense, net; (b) income tax provisions; (c) amortization of intangible assets; (d) depreciation and amortization. Adjusted EBITDA excludes Stock based compensation of $1.2M, $2.4M, $2.3M & $2.9M for F
Slide 13: Year Stacked Private Label Quarterly Sales Trend
2 Year Stacked Private Label Quarterly Sales Trend1 13 This year we have on improved profitability vs. high growth in sales 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 $0.5
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 Approximately 10 million monthly website visitors Transitioning to a higher mix of private label products to drive increased conversion
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 2023+ > Approximately 10 million monthly website visitors > Transitioning to a higher mix of private label products
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 Launches AutoMD / Acquires JC Whitney Ad
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 – Q1-17
Financial Highlights – Q1-17 Total revenue $80.8M Net Income was $0.8M vs. the prior year $1.5M Adjusted EBITDA $4.0M vs. prior year of $4.3M $7.2M in cash with no borrowings on our revolver debt vs. $1.3M in cash and borrowings on our revolver debt of $3.0M in Q1 last year Added over 1,500 Private
Slide 19: Key Business Metrics Over Last Five Quarters
Key Business Metrics Over Last Five Quarters 19 Private Label continues to be a major focus of our business 19
Slide 20: Yearly Adjusted EBITDA Reconciliation
Yearly Adjusted EBITDA Reconciliation Non-GAAP financial measure EBITDA consists of net income before (a) interest expense, net; (b) income tax provisions; (c) amortization of intangible assets; (d) depreciation and amortization. Adjusted EBITDA excludes stock based compensation, restructuring cost,
Slide 21: Quarterly Adjusted EBITDA Reconciliation
Quarterly Adjusted EBITDA Reconciliation Non-GAAP financial measure EBITDA consists of net income before (a) interest expense, net; (b) income tax provisions; (c) amortization of intangible assets; (d) depreciation and amortization. Adjusted EBITDA excludes stock based compensation, restructuring co
Slide 22: Projected FY-17 Adjusted EBITDA Reconciliation
Projected FY-17 Adjusted EBITDA reconciliation Non-GAAP financial measure EBITDA consists of net income before (a) interest expense, net; (b) income tax provisions; (c) amortization of intangible assets; (d) depreciation and amortization. Adjusted EBITDA excludes Stock based compensation 22 (in thou
Slide 23: Key Avenues for Growth – Increase Customer Lifetime Value
Increased customer LTV would result in greater mix of traffic from both direct-to-website and paid channels, and less dependence on organic search Key Avenues for Growth – Increase Customer Lifetime Value Gross Profit per Transaction Average Order Size Repeat Purchase Conversion Increased Traffic Ef
Slide 24: Key Stats: PRTS (NASDAQ) – Consolidated
Key Stats: PRTS (NASDAQ) – Consolidated 24 Data sources: Yahoo! Finance, S&P Capital IQ, company filings. As of May 10, 2017 (includes 4.1M preferred shares). As of December 31, 2016. Trading Data (@ May 10, 2017) Stock Price $4.09 52 Wk. High/Low $4.49/2.40 Avg. Daily Vol. (3 mo.) 78,901 Fully Dilu
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