Carparts.com, Inc. · NASDAQ:PRTS
Carparts.com — U.S. Auto Parts Network — Investor Presentation (October 2017)
24 slides from Carparts.com's investor presentation, Oct 30, 2017
Slide 1: Safe Harbor
Safe Harbor NASDAQ:PRTS 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 concerni
Slide 2: Aftermarket Auto Parts Sales From Macro Trends Benefits
Aftermarket Auto Parts Sales From Macro Trends Benefits NASDAQ:PRTS Online aftermarket sales expected to be Average age of light vehicles on the $13.2B in 2018 and more than double by 2023 road continues to remain strong 12 11.5 11.5 11.5 11.5 11.5 11 10.0 10 9 8 Source: US Auto Care Association Sou
Slide 3: How We Go To Market: Channels & Percent of Revenue
How We Go To Market: Channels & Percent of Revenue NASDAQ:PRTS eCommerce Websites: Network of flagship websites supported by our call center agents. Sites also generate advertising & sponsorship revenue. 91% Online Marketplaces: 3rd party auction sites and shopping portals, enabling access to additi
Slide 4: Online Adoption of Aftermarket Auto Parts has Favorable Trends
Online Adoption of Aftermarket Auto Parts has Favorable Trends NASDAQ:PRTS Growth for auto parts online has continued to increase in 2017 with parts & accessories searches up 10% year over year 5
Slide 5: Key Avenues for Growth – Increase Customer Lifetime Value
Key Avenues for Growth – Increase Customer Lifetime Value NASDAQ:PRTS Increased Traffic = • We anticipate increasing traffic will be directly related to our ability to improve our strategic objectives allowing for more available dollars to spend on marketing. Quality of data Increased customer LTV w
Slide 6: The Customer Journey Experience
The Customer Journey Experience NASDAQ:PRTS By focusing on the consumer experience, we will increase conversion which will allow us to drive more traffic 7 Speed “Provide appropriate solutions to ensure a stable and fast website.” Transaction Experience “Create a secure, frictionless, Omni channel c
Slide 7: Customer Value Proposition
Customer Value Proposition NASDAQ:PRTS Value 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 in conjunction with US Auto Parts mapping similar products, found that our privat
Slide 8: We Address the Market with an Expansive Product Offering
We Address the Market Product Offering with an Expansive NASDAQ:PRTS 55% 28% Q3-17 TTM Revenue Mix 17% Performance & Accessories Collision Parts Engine Parts Private Label 97% 62% 4% Branded 3% 38% 96% Note: All percentages of sales revenue is estimated using Q3-17 TTM Over 1 Million SKUs Across Sev
Slide 9: USAP Supply Chain Creates Pricing Advantage
USAP Supply Chain Creates Pricing Advantage NASDAQ:PRTS USAP has built a vertically integrated e-commerce business = Product Flow for Private Label = Product Flow for Drop Ship Vendors Drop Ship (No Inventory) ~75% of Units Stock-Ship 16%-21% Flow Thru ~25% of Units Drop-Ship 3%-10% Flow Thru DIY DI
Slide 10: Projected Margin Profile
Projected Margin Profile NASDAQ:PRTS Incremental flow through from private label business is driving higher margins Minimal fixed costs creates significant leverage in our business model We believe revenue mix will continue to shift to private label 1)Excludes non-operating channel segments 2)Projec
Slide 11: Company Profile
Company Profile NASDAQ:PRTS Revenues over $300M FY-2016 Net Income of $3M FY-2016 Adjusted EBITDA of $14M High Margin private label business was 66% of sales for FY-16 Positive Free Cash Flow with no revolver debt over last 5 consecutive quarters Public Company since 2007 – NASDAQ (PRTS) 1)Non-GAAP
Slide 12: 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 13: Financial Performance
Financial Performance NASDAQ:PRTS FY 2013 FY 2014 FY 2015 FY 2016 1)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 com
Slide 14: Private Label Quarterly Sales Trend
Trend1 2 Year Stacked Private Label Quarterly Sales NASDAQ:PRTS Two Year Stack Comps 45.0% % 22.4% 35.0% 21.3% 10.5% 12.5% % 25.0% 23.7% % % % 31.8% 15.0% 24.4% % % 19.1% 5.0% -5.0% -15.0% Prior Year Current Year 1Comparables net sales was calculated by excluding $2.0M in private label sales related
Slide 15: Key Takeaways
Key Takeaways NASDAQ:PRTS 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 8 million monthly website visitors Transitioning to a higher mix of private label products to drive increased
Slide 16: 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 8 million monthly website visitors > Transitioning to a higher mix of private label products
Slide 17: Company History
Company History NASDAQ:PRTS Initiated Company Stock Buy Back Plan 2017 Achieved double digit sales growth & positive FCF JC Whitney completely integrated 2016 2015 Aaron Coleman becomes new CEO Company begins significantly expanding its private label engine line 2014 2013 Acquires PartsBin Adds Engi
Slide 18: Experienced Leadership Team
Experienced Leadership Team NASDAQ:PRTS Neil Watanabe | Chief Financial Officer 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 exper
Slide 19: Key Business Metrics Over Last Seven Quarters
Key Business Metrics Over Last Seven Quarters NASDAQ:PRTS 2222 Conversion Y/Y BPS Change Q3-17 Q2-17 Q1-17 Q4-16 Q3-16 Q2-16 Q1-16 1.99% 2.00% 1.79% 1.87% 1.89% 1.80% 1.78% 0.10% 0.20% 0.01% 0.09% 0.14% 0.01% 0.09% Traffic (in millions) Y/Y % Change Q3-17 Q2-17 Q1-17 Q4-16 Q3-16 Q2-16 Q1-16 24.1 24.
Slide 20: Yearly Adjusted EBITDA Reconciliation
Yearly Adjusted EBITDA Reconciliation NASDAQ:PRTS FY-13 FY-14 FY-15 52 Weeks Ending January 2, 2016 FY-16 Q3-17 52 Weeks Ending 53 Weeks Ending 52 Weeks Ending 52 Weeks Ending (in thousands) Net income (loss) Depreciation Amortization of intangibles Interest expense, net Taxes EBITDA Stock comp expe
Slide 21: Quarterly Adjusted EBITDA Reconciliation
Quarterly Adjusted EBITDA Reconciliation NASDAQ:PRTS (in thousands) Net income (loss) Depreciation Amortization of intangibles Interest expense, net Taxes EBITDA Stock comp expense Adjusted EBITDA Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 $ 187 1,549 107 373 158 $ (611) 1,484
Slide 22: Projected FY-17 Adjusted EBITDA Reconciliation
Projected FY-17 Adjusted EBITDA reconciliation NASDAQ:PRTS Low End 52 Weeks Ending December 30, 2017 High End 52 Weeks Ending December 30, 2017 (in thousands) Net income Depreciation Amortization of intangibles Interest expense, net Taxes EBITDA Stock comp expense Adjusted EBITDA $ 27,000 6,500 400
Slide 23: Key Stats: PRTS (NASDAQ) – Consolidated
Key Stats: PRTS (NASDAQ) – Consolidated NASDAQ:PRTS Data sources: Yahoo! Finance, S&P Capital IQ, company filings. 1) As of October 30, 2017 (includes 2.8M preferred shares). 2) As of December 31, 2016. 26 Trading Data (@ Oct 26, 2017) Financial Highlights (@ Dec 31, 2016) Stock Price$2.38 Revenues
Slide 24: Key Stats: PRTS (NASDAQ) – Consolidated
Key Stats: PRTS (NASDAQ) — Consolidated AUTOPARTS’ NASDAQ:PRTS Trading Data (@ oct 26, 2017) Financial Highlights (@ vec 31, 2016) Stock Price $2.38 Revenues (rTM) $303.6M 52 Wk. High/Low $4.13/2.27 Gross Margin (T7™m) 30.4% Avg. Daily Vol. (3 mo.) 144,502 Cash & Equiv. $6.6M Total Assets $82.1M Ful
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