Carparts.com, Inc. · NASDAQ:PRTS
Carparts.com — U.S. Auto Parts Network — Investor Presentation (September 2015)
23 slides from Carparts.com's investor presentation, Sep 8, 2015
Slide 1: Investor Presentation
Investor Presentation NASDAQ: PRTS September 2015
Slide 2: Safe Harbor
Safe Harbor 2 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 3: A Value Leader in Aftermarket Auto Parts
3 A Value Leader in Aftermarket Auto Parts US Auto Parts is the largest 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
Slide 4: Online DIY to reach 17% of total DIY market by 2018
Online DIY to reach 17% of total DIY market by 2018 4 Online Market is Vibrant & Growing DIY Online Penetration Mean Light Vehicle age Source: R.L. Polk and BB&TCM Source: Booz & Co. Average Age of Light Vehicles on the Road Continues to Increase 1 2014 is estimated by IHS 0.0% 2.0% 4.0% 6.0% 8.0% 1
Slide 5: At Only 11% of Total DIY Auto Parts Sales, Online DIY Represents a Strong Growth Opportunity
5 At Only 11% of Total DIY Auto Parts Sales, Online DIY Sales Represents a Strong Growth Opportunity 1 Digital Auto Care fact book estimates 2 Estimates by US Auto Parts where amounts are not publicly reported 3 Only includes estimated mail delivered business – does not include store pick ups 4 Excl
Slide 6: Industry Growth to be Driven by Online Sales
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 $50.8 $52.8 $54.8 $57.0 % Online 9.8% 11.3% 13.0% 15.1% 17.4% 20.1% 6 Do it Yourself (DIY) Projections Industry Growth to be Driven by Online Sales * Projections for online industry based upon estimates
Slide 7: Our Value Position
Our Value Position 7 Improving Financial Performance Large and Growing Online Market Expansive Customer Reach Significant Private Label Offering Experienced Leadership Team
Slide 8: Broad Auto Parts Product Offering
9 Broad Auto Parts Product Offering Brake Discs Catalytic Converters Radiators Headers Oxygen Sensors Alternators Exhaust Driveshaft Fuel Injection / Delivery Lamps Mirrors Bumpers Hoods Tailgates Doors Grills Wheels Window Regulators Seat Covers Car Covers Floor Mats / Carpeting Cold Air Intakes Ve
Slide 9: Supply Chain Creates Pricing Advantage
USAP’s ability to competitively price products while maintaining healthy margins is a function of leveraging its robust private label supply chain: Currently over 45,000 Private Label Products. Expected to add 5,000 – 7,000 Private Label SKUs this year The Company sources product directly from over
Slide 10: Product Sales Mix
11 Product Sales Mix US Auto Parts has transitioned to a higher mix of Private Label products to be a low cost value leader with high quality products in the marketplace
Slide 11: Consecutive Quarters of Double Digit Comps on a Two Year Stack Basis
12 Two year stacked comp3 3 Consecutive Quarters of Double Digit Comps on a two year stack basis 1 Includes an extra week – would have been 12% on a normalized basis 2 Comp based on our new same “store” comp policy and excludes channel segments that are no longer operating 3“Two-year stacked basis”
Slide 12: Traffic & Conversion Growth
13 Traffic & Conversion Growth Consolidated websites and turned off about $80mm of revenue Increased competition created pricing pressure in the market 2010 2013 2012 2011 2010 2009 2008 2014 2015 2015 2012 2013 2014 2009 2011 2008 2007 2007
Slide 13: Q2 YTD Financial Performance
14 Q2 YTD Financial Performance (excluding AutoMD beginning in Q4-14) 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 c
Slide 14: Incremental Flow Thru Growth & Profitability
15 Incremental Flow Thru Growth & Profitability
Slide 15: Strategies for Increasing Customer Life Time Value
16 Strategies for Increasing Customer Life Time Value The 2015 Strategy is to Increase Customer Life Time Value Gross Profit per Transaction Average Order Size Repeat Purchase Conversion Increased Traffic Efficient sourcing strategy Private label sourcing Price optimization Efficient operations Sell
Slide 16: AutoMD – Repair Lead-Generation Site
17 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 controls 64% of business
Slide 17: Key Takeaways
18 Key Takeaways US Auto Parts A leading e-Commerce company Growing with positive FCF $5B industry expected to double in next 5-7 years Two significant competitive advantages Our customer reach is approximately 10 million visitors monthly Our supply chain sources over 45,000 Private Label products E
Slide 18: Appendix
19 APPENDIX
Slide 19: 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 20: Management Team
21 Shane Evangelist - Chief Executive Officer since October 2007 Over 10 years experience 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 from the University o
Slide 21: Financial Sensitivity
22 Our business model has significant cost leverage as revenues grow Excludes stock based compensation, depreciation and amortization For every incremental year required to achieve growth levels, fixed expenses increase $1.0M or 3% Financial Sensitivity
Slide 22: Sales & Adjusted EBITDA
Sales & Adjusted EBITDA1 23 Consolidated Sales2 ($ In Millions) Consolidated Adjusted EBITDA3 ($ In Millions) Excludes AMD starting in Q4-14 which is funded through capital raised JC Whitney was acquired in Aug 2010 adding revenue of $39.1M in 2010 and $83.4M in 2011. Amounts not separately disclose
Slide 23: Financial Highlights Q2-15 YTD
24 Total revenue $152.7M Q2-15 YTD Comp sales up 7.7% for Q2-15 YTD Sales up 5.4% for Q2-15 YTD Adjusted EBITDA excluding AutoMD was $4.6M Q2-15 YTD1 Inventory at $45.2M as of Q2-15 vs. $35.2 the prior year Debt declining in Q2 over Q1 $1.5M Financial Highlights Q2-15 YTD 1Non-GAAP financial measure
U.S. Auto Parts Network — Investor Presentation (September 2015) on 6ix