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 December 2011 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: US Auto Parts Competitive Advantages
US Auto Parts Competitive Advantages US Auto Parts is a dominant e-commerce specialty retailer of aftermarket auto parts to the Do It Yourself market and is uniquely positioned to win. Incremental revenue above current levels has incremental EBITDA flow thru of 15% - 20% 3
Slide 4: US Auto Parts History
US Auto Parts History AUTOPARTS 1995 Founded and serviced local body shops in Los Angeles 2000 Launched first internet site selling automotive Body Parts 2000-2005 Launched a network of sites catered to consumer segments 2006 Acauired PartsBin - Engine IPO (NASDAQ: PRTS), hired new CEO 2007 Leunched
Slide 5: Broad Product Offering Unavailable from Traditional Off-Line Retailers
Broad Product Offering Unavailable from Traditional Off-Line Retailers 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 Tailga
Slide 6: Low Online Penetration- Mobile Growth Opportunity
Low Online Penetration- Mobile Growth Opportunity Source : Forrester; Wall Street research; Autopartswarehouse.com 6
Slide 7: Online vs. Brick and Mortar Customer – Mobile Growth Should Accelerate Penetration
Online vs. Brick and Mortar Customer – Mobile Growth Should Accelerate Penetration Los Angeles DMA All Households Auto Zone* USAP Compared to AutoZone and the general population, USAP 27.8% Aspiring Contemporaries 19.8% customers over-index in affluent segments, typical of 22.7% e-commerce shoppers
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) 8
Slide 9: Pricing Competitive Advantage Through Supply Chain Efficiencies
Pricing Competitive Advantage Through Supply Chain Efficiencies Product margin/price competitiveness determined more by sourcing strategy than product categories. Current margins range from 32% - 34%. Margin % 75% 25% 9
Slide 10: Low Cost Operating Structure Reduces Overhead and Enables Scale
Low Cost Operating Structure Reduces Overhead and Enables Scale Corporate Functions Job functions are shared between the US and Philippines with a majority of the work being performed in the Philippines. Acquisition/Retention Marketing Website Product Development Call Center Operations Product Sourc
Slide 11: 2011 Growth and Profitability
2011 Growth and Profitability Revenue Growth EBITDA Margin % Expansion 1) Improve Customer Experience 1) Increase Gross Margins Continue to improve all customer touch points Expand Private Label direct import SKU’s Increase stock shipments of Branded product 1) Lower Prices Launch disruptive price p
Slide 12: Sales & Adjusted EBITDA
Sales & Adjusted EBITDA Consolidated Sales Consolidated Adjusted EBITDA ($ In Millions) ($ In Millions) (3,4) (2) $328.8 $19.5 (3) Year Impacted by: $17.8 (4) • Search engine $262.2 (1) changes impacting $13.5 high converting sites. • Resolution $176.3 anticipated in 2H $153.4 2012 • JCW Acquisition
Slide 13: Financial Sensitivity
Financial Sensitivity Our business model has significant cost leverage as revenues grow (millions$) Growth Base 10% 20% 30% 40% 50% Revenue $325 $358 $390 $423 $455 $488 Gross Margin 31% - 34% 31% - 34% 31% - 34% 31% - 34% 31% - 34% 31% - 34% Variable: Fufillment 2% 2% 2% 2% 2% 2% Marketing 9% 9% 9%
Slide 14: AutoMD- Largest DIY Site Repositioned to Target $140B DIFM Market
AutoMD- Largest DIY Site Repositioned to Target $140B DIFM Market 14
Slide 15: Adjusted EBITDA (Consolidated)
Adjusted EBITDA (Consolidated) Thirteen Weeks Thirteen Weeks Thirty-Nine Weeks Thirty-Nine Weeks Ended Ended Ended Ended (Amounts shown in thousands) October 1 October 2 October 1 October 2 2011 2010 2011 2010 Net (loss) income $ (5,308) $ (13,039) $ (8,118) $ (11,030) Interest expense (income) net
Slide 16: Adjusted EBITDA excluding JC Whitney
Adjusted EBITDA excluding JC Whitney Thirteen Weeks Thirteen Weeks Thirty-Nine Weeks Thirty-Nine Weeks Ended Ended Ended Ended (Amounts shown in thousands) October 1 October 2 October 1 October 2 2011 2010 2011 2010 Net income $ 214 $ (10,136) $ 4,617 $ (8,127) Interest expense (income) net 280 139
Slide 17: Income Statement (Consolidated)
Income Statement (Consolidated) Thirteen Weeks Thirteen Weeks Thirty-Nine Weeks Thirty-Nine Weeks Ended Ended Ended Ended October 1 October 2 October 1 October 2 2011 2010 2011 2010 Net sales $ 78,593 $ 72,349 $ 249,839 $ 181,828 Cost of sales 54,248 48,342 166,664 119,617 Gross profit 24,345 24,007
Slide 18: Balance Sheet
Balance Sheet October 1, 2011 January 1, 2011 ASSETS (unaudited) Current assets: Cash and cash equivalents $ 15,151 $ 17,595 Short-term investments 1,117 1,062 Accounts receivable, net of allowance of $194 and $372, respectively 8,805 5,339 Inventory 45,717 48,100 Deferred income taxes 360 359 Other
Slide 19: Thank You
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