Carparts.com, Inc. · NASDAQ:PRTS
Carparts.com — U.S. Auto Parts Network — Investor Presentation (September 2014)
21 slides from Carparts.com's investor presentation, Sep 9, 2014
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation
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: Case for Investment
Case for Investment Large and Growing Online Market Significant Customer Reach Significant Private Label Offering Reduced Cost Structure Experienced Leadership Team 3
Slide 4: Highlights from Q2-14 Earnings Call
Highlights from Q2-14 Earnings Call Sales up 13% for quarter As of 8/5/14, we anticipate to have double digit comps in the back half of the year Adjusted EBITDA was $2.2M up from $1.1M in Q2-13 Adjusted EBITDA less CAPEX was $0.7M up from ($1.1M) in Q2-13 4
Slide 5: Do It Yourself (DIY) Market Size
Do It Yourself (DIY) Market Size At 9.7% online market penetration, auto parts still lags industry average in the teens. US Auto Parts is the largest pure-play online retailer of auto parts 1 2 Total DIY Market Size for 2013 of 47.2B Company 2013 Est. Rev % of total Marketplaces (in million) eBay Mo
Slide 6: Online Market is Vibrant and Growing
Online Market is Vibrant and Growing Aftermarket e-Commerce Overview Booz & Co. estimates by 2018 that Online DIY The average age of a light vehicle on the road could reach 17% of the total DIY market continues to increase each year since 1997 DIY Online Penetration Mean Light Vehicle age 18.0% 12 1
Slide 7: Do It Yourself (DIY) Projections
1 Do It Yourself (DIY) Projections DIY Projected Y/Y Revenue Growth Offline Online Total 2.5 2.0 1.5 1.0 0.5 0.0 2013 2014 2015 2016 2017 2018 DIY Projected Revenue (in Billions) 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 $50.9 $52.8 $54.8 $56.9 % O
Slide 8: 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 Customer Reach is a Competitive Moat 8,000 • Over 500 man years of hand written unique content • Long domain history to help indexing in search • Multiple website management 6,
Slide 9: Broad Auto Parts Product Offering
Broad Broad Auto Auto Parts Parts Product Product Offering Offering US Auto Parts has one of the largest product offerings with over 1.5 million products across body parts, engine parts, and performance & accessories Body Parts Engine Parts Performance & Accessories Lamps Mirrors Bumpers Brake Discs
Slide 10: 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. – Currently over 40,000 Private Label Products. – Adding 4,000 – 5,000 Private Labe
Slide 11: Growth and Profitability
Growth and Profitability We anticipate to have double digit comps in the back half of the year Incremental Flow Thru Revenue 100% Gross Margins 27% - 29% Variable OPEX Costs 15% Fixed Cost 0% Incremental Flow 12% - 14% 11
Slide 12: USAP has significantly reduced operating cost
USAP has significantly reduced operating cost OPEX (in thousands) Q1-14 % of rev Q1-13 % of rev $ Change % of rev change Fulfillment* 3,935 5.8% 3,994 6.1% (59) (30 bps) Marketing* 8,691 12.8% 8,967 13.7% (276) (90 bps) Technology* 1,129 1.7% 1,395 2.1% (266) (40 bps) General & Administrative* 3,620
Slide 13: Financial Sensitivity
Financial Sensitivity Our business model has significant cost leverage as revenues grow Base 8% 18% 27% 37% Revenue $255 $275 $300 $325 $350 Gross Margin % 27.0% – 29.0% 27.0% – 29.0% 27.0% – 29.0% 27.0% – 29.0% 27.0% – 29.0% Variable: Fulfillment 3.4% 3.4% 3.4% 3.4% 3.4% Marketing 9.2% 9.2% 9.2% 9.
Slide 14: AutoMD – Addressing the DIFM Market
AutoMD – Addressing the DIFM Market 14
Slide 15: Case for Investment
Case for Investment Large and Growing Online Market Significant Customer Reach Significant Private Label Offering Reduced Cost Structure Experienced Leadership Team 15
Slide 16: Leadership Team
Leadership Team Shane Evangelist - Chief Executive Officer Charles Fischer - Senior Vice President of Global Procurement Chief Executive Officer since October 2007 with over 10 years of Senior Vice President of Global Sourcing and Procurement since May 2008 with leading internet businesses over 30 y
Slide 17: Adjusted EBITDA
Adjusted EBITDA (Non-GAAP Financial Measure – in thousands) Thirteen Weeks Ended Twenty-Six Weeks Ended June 28 June 29 June 28 June 29 2014 2013 2014 2013 Net loss $ (2,180) $ (9,567) $ (1,979) $ (12,910) Interest expense, net 238 228 497 415 Income tax provision 21 69 53 90 Amortization of intangi
Slide 18: Consolidated Statements of Comprehensive Operations
Consolidated Statements of Comprehensive Operations (Unaudited, in Thousands, Except Per Share Data) Thirteen Weeks Ended Twenty-Six Weeks Ended June 28 June 29 June 28 June 29 2014 2013 2014 2013 Net sales $ 76,947 $ 67,889 $ 144,975 $ 133,294 (1) Cost of sales 56,527 48,876 103,854 94,543 Gross pr
Slide 19: Consolidated Balance Sheet
Consolidated Balance Sheet (Unaudited, in Thousands, Except Par and Per Share Liquidation value) June 28 December 28 ASSETS 2014 2013 Current assets: Cash and cash equivalents $ 1,675 $ 818 Short-term investments 786 47 Accounts receivable, net of allowances of $295 and $213 at June 28, 2014 and Dec
Slide 20: Sales & Adjusted EBITDA
Sales & Adjusted EBITDA 2 Consolidated Sales 1 Consolidated Adjusted EBITDA ($ In Millions) ($ In Millions) $327.1 $304.0 $19.5 $262.3 $254.8 $16.3 $13.5 $176.3 $153.4 $9.4 $6.0 $76.9 $5.2 $68.0 $3.3 $2.2 2008 2009 2011 2011 2012 2013 Q1-14 Q2-14 2008 2009 2011 2011 2012 2013 Q1-14 Q2-14 3% 8% 7% 5%
Slide 21: Online Market is Vibrant and Growing
Online Market is Vibrant and Growing Aftermarket e-Commerce Overview Online sales of automotive parts and accessories have grown in the high teens and are expected to grow at 20% going forward eBay Parts Sales Continue to Increase Google Queries for Parts Growing $2.3 $2.2 $2.2 $2.1 $2.1 $2.1 $2.0 $
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