Carparts.com, Inc. · NASDAQ:PRTS
Carparts.com — U.S. Auto Parts Network — Investor Presentation (March 2014)
18 slides from Carparts.com's investor presentation, Mar 11, 2014
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 March 11, 2014 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: Broad Auto Parts Product Offering
Broad Auto Parts Product Offering 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 Tailgates Doors Sensors Intakes Covers Exha
Slide 4: Online Market is Vibrant and Growing
Online Market is Vibrant and Growing Aftermarket e-Commerce Overview Online sales of automotive parts and accessories continue to grow Google has experienced a 6 year compound annual growth rate (“CAGR”) of 16% in queries for automotive parts Mobile year over year queries increased 50% and 80% for c
Slide 5: Size and Penetration of Online Automotive Parts
Size and Penetration of Online Automotive Parts Aftermarket e-Commerce Overview Online penetration for auto parts has trailed penetration rates of other consumer product categories for two reasons: 1) Auto parts are traditionally bought by demographics that have lower internet access rates We believ
Slide 6: Changes to Our Business
Changes to Our Business 2012 - 2013 Go Forward • Traffic and revenue declined resulting from • Traffic is stabilizing and revenue from go search engine changes forcing us to forward sales channels has turned slightly consolidate websites positive • Gross margin compression from increased • Larger fo
Slide 7: Competitive Advantages
Competitive Advantages USAP has two main competitive advantages Product Assortment Marketing • Over 50% of product sales directly sourced from • Over 10 million unique monthly visitors to our Asia websites • Transition away from lower margin stock ship • Unique visitors more than two times higher th
Slide 8: USAP's Supply Chain Creates Pricing Advantage
USAP’s Supply Chain Creates Pricing Advantage USAP’s ability to competitively price products while maintaining healthy margins is a function of the Company’s ability to leverage its robust private label supply chain. The Company is working to increase margins by shifting its product mix toward incre
Slide 9: 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) 10,000 USAP’s traffic is 2x larger than any other pure play online auto parts seller 8,000 6,000 4,000 2,000 0 USAP traffic includes traffic from USAP continued sales channels and WAG
Slide 10: Growth and Profitability Incremental Flow Thru
Growth and Profitability Incremental Flow Thru Revenue 100% Gross Margins 29% - 31% Variable OPEX Costs 15% Fixed Costs 0% Incremental Flow Thru 14% - 16% 10
Slide 11: Financial Sensitivity
Financial Sensitivity Our business model has significant cost leverage as revenues grow Base 10% 20% 30% 40% Revenue $250 $275 $300 $325 $350 Gross Margin % 29.0% – 31.0% 29.0% – 31.0% 29.0% – 31.0% 29.0% – 31.0% 29.0% – 31.0% Variable: Fulfillment 3.2% 3.2% 3.2% 3.2% 3.2% Marketing 9.3% 9.3% 9.3% 9
Slide 12: AutoMD – Addressing the DIFM Market
AutoMD – Addressing the DIFM Market 12
Slide 13: Sales & Adjusted EBITDA
Sales & Adjusted EBITDA 1 2 Consolidated Sales Consolidated Adjusted EBITDA ($ In Millions) ($ In Millions) $327.1 $19.5 $304.0 $262.3 $16.3 $254.8 $13.5 $176.3 $153.4 $9.4 $6.0 $5.2 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 3% 8% 7% 5% 3% 2% Adj. EBITDA Margin 1. JC Whitney was ac
Slide 14: Recent Revenue Trends
Recent Revenue Trends Completed the retirement of a number of websites by the end of 2Q ‘13 14
Slide 15: Adjusted EBITDA
Adjusted EBITDA (Non-GAAP Financial Measure – in thousands ) Thirteen Weeks Ended Fifty-Two Weeks Ended December 28 December 29 December 28 December 29 2013 2012 2013 2012 Net loss $ (1,325) $ (30,783) $ (15,634) $ (35,978) Interest expense, net 276 274 972 774 Income tax provision (48) (1,230) 43 (
Slide 16: Consolidated Statements of Comprehensive Operations
Consolidated Statements of Comprehensive Operations (Unaudited, in Thousands, Except Per Share Data) Thirteen Weeks Ended Fifty-two Weeks Ended December 28 December 29 December 28 December 29 2013 2012 2013 2012 Net sales $ 59,735 $ 62,848 $ 254,753 $ 304,017 Cost of sales (1) 42,260 45,072 180,620
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets (In Thousands, Except Par and Per Share Liquidation Value) December 28 December 29 ASSETS 2013 2012 Current assets: Cash and cash equivalents $ 818 $ 1,030 Short-term investments 47 110 Accounts receivable, net of allowances of $213 and $221 at December 28, 2013 and Decem
Slide 18: Thank You
AUTOPARTS' Thank You
U.S. Auto Parts Network — Investor Presentation (March 2014) on 6ix