Carparts.com, Inc. · NASDAQ:PRTS
Carparts.com — U.S. Auto Parts Network — Investor Presentation (March 2018)
24 slides from Carparts.com's investor presentation, Mar 12, 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 FY-17 eCommerce Websites: Network of flagship websites supported by our ca
Slide 5: 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 6: Focusing on the consumer experience to increase conversion and traffic
By focusing on the consumer experience, we will increase conversion which 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 “Provide c
Slide 7: Price & Product Availability: Customer Value Proposition
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. A study conducted by Jefferies Automotive Aftermarket Equity Research in conjuncti
Slide 8: Expansive Product Offering Over 1 Million SKUs
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 9: 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 3%-9% Flow Thru Jobber ~80% of Units Stock-Ship 16%- 2
Slide 10: Projected Margin Profile
Private Label Branded Total FY-17 Growth Rate1 9% (17%) 0% FY-17 Revenue Mix 72% 28% 100% Projected Gross Margins 33% - 36% 14% - 18% 29% - 30% Projected Variable OPEX Costs 15% - 17% 9% - 11% 14% - 16% Incremental Fixed Cost 0% 0% 0% Incremental Flow Thru 16% - 21% 3% - 9% 13% - 16% Projected Margi
Slide 11: Projected Margin Profile
Projected Margin Profile > 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 AUTOPARTS NASDAQ:PRTS pivots Branded Total Label FY-17 G
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 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 & $2.8
Slide 14: 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 15: 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 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 20231 >» Extensive reach across our websites and marketplace partnerships > Transitioning to a higher mix of private
Slide 17: 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 18: 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 19: Financial Highlights – Q4-17
Financial Highlights – Q4-17 Total revenue $68.5M Net loss from continuing operations was ($4.1M) vs. the prior year ($0.2M) Adjusted EBITDA $2.8M vs. prior year of $2.5M $2.9M in cash with zero revolver debt vs. last year of $2.7M in cash with zero revolver debt Added approximately 1,500 Private La
Slide 20: Key Business Metrics Over Last Eight Quarters
Key Business Metrics Over Last Eight Quarters 21 Y/Y BPS Change Y/Y BPS Change Q4-17 30.3% 0.2% Q4-17 72% 4% Q3-17 29.6% -0.9% Q3-17 72% 6% Q2-17 29.0% -1.4% Q2-17 72% 7% Q1-17 29.4% -1.0% Q1-17 71% 4% Q4-16 30.1% 0.5% Q4-16 68% 5% Q3-16 30.5% 0.8% Q3-16 66% 6% Q2-16 30.4% 3.2% Q2-16 65% 5% Q1-16 30
Slide 21: 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 22: 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 23: Key Stats: PRTS (NASDAQ) – Consolidated
Key Stats: PRTS (NASDAQ) – Consolidated 24 Data sources: Yahoo! Finance, S&P Capital IQ, company filings. Includes 2.8M preferred shares) As of December 31, 2017 Trading Data (@ March 7, 2018) Stock Price $1.95 52 Wk. High/Low $4.13/1.84 Avg. Daily Vol. (3 mo.) 92,215 Shares Outstanding1 37.6M Insti
Slide 24: Key Stats: PRTS (NASDAQ) – Consolidated
Key Stats: PRTS (NASDAQ) — Consolidated AUTOPARTS NASDAG:PRTS Trading Data (e morch7, 2018) Financial Highlights (@ pec 31,2017) Stock Price $1.95 Revenues (TT) $303.4M 52 Wk. High/Low $4.13/1.84 Gross Margin (77m) 29.6% ‘Avg. Daily Vol. (3 mo.) aya | SOE Et $2.9M Total Assets $100.7M Shares Outstan
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