Financial Data and Key Metrics Changes - Revenues for Q1 2021 reached $144.8 million, a 65% increase from $87.8 million in Q1 2020 [14] - Gross profit also grew significantly to $49.2 million, up 65% year-over-year, with a gross margin of 34%, an increase of 10 basis points [15] - The total net loss for the quarter was $2.7 million, compared to a net loss of $1 million in Q1 2020, primarily due to increased non-cash charges [16] - Adjusted EBITDA was $3.6 million, down from $4.3 million in the previous year [16] - Cash position improved to $45.9 million from $35.8 million, driven by working capital improvements [18] Business Line Data and Key Metrics Changes - More than 30% of revenue comes from repeat purchases, indicating strong customer loyalty [6] - Mechanical parts accounted for approximately 23% of sales in Q1, with a goal to increase this mix closer to 50% over time [53] Market Data and Key Metrics Changes - The average new car price has crossed the $40,000 mark, leading consumers to keep their cars longer, which is expected to increase maintenance and repair demand [25] - The company is well-positioned to serve the growing electric vehicle (EV) market, as 90% of its products are compatible with various powertrains [25] Company Strategy and Development Direction - The company aims for 20% to 25% compounded top-line growth and plans to evolve from a parts supplier to a provider of turnkey solutions in the auto repair industry [2][11] - Expansion of the Texas warehouse by adding 156,000 square feet to increase inventory availability and support growth [20] - Focus on building brand awareness through partnerships and marketing campaigns [21] Management's Comments on Operating Environment and Future Outlook - Management believes that the current economic environment, including the chip shortage affecting new car manufacturing, will serve as a long-term tailwind for the business [32] - The company is optimistic about Q2 2021, citing improved inventory and capacity [62] Other Important Information - The company is in discussions to expand its Texas warehouse, which will enhance its distribution capabilities [19] - A new board member, Henry Maier, was welcomed, bringing extensive experience from FedEx [26] Q&A Session Summary Question: Are you 100% fully ramped now at the Texas facility? - Management confirmed that the Texas facility is operating at full outbound capacity but is currently 60% full [30] Question: How might the chip shortages impact your business over the next 12 months? - Management indicated that the aging fleet and longer vehicle retention will positively impact the business for an extended period [32] Question: Can you provide an update on the mobile mechanic initiative? - The mobile mechanic initiative remains in beta, with plans to analyze interactions before expanding [34] Question: How much of the revenue came from Texas in the quarter? - It was estimated that about $25 million of sales came from the Texas facility [36] Question: What is driving the rapid expansion of your distribution centers? - Management noted that the demand and operational success of existing distribution centers are key factors [38] Question: How quickly can you adjust your inventory orders? - Inventory orders can be adjusted in semi-real time, with weekly buys based on demand [49] Question: How much did mechanical parts contribute to sales in Q1? - Mechanical parts accounted for about 23% of sales in Q1, with plans to increase this mix [53] Question: How do you view the balance between driving website traffic and improving inventory selection? - Management believes both aspects are important for optimizing customer experience and sales [56]

Financial Performance - For fiscal year 2020, the company generated net sales of $443,884, an increase of 58.2% compared to $280,657 in fiscal year 2019[197]. - Gross profit increased by 84.5% to $155,366, with gross margin rising 500 basis points to 35.0% compared to 30.0% in fiscal year 2019[198]. - The company incurred a net loss of $1,513 for fiscal year 2020, a reduction from a net loss of $31,548 in fiscal year 2019[197]. - Adjusted EBITDA for fiscal year 2020 was $16,025, compared to $4,532 in fiscal year 2019, reflecting improved operational performance[206]. - Operating expenses increased by $62,598, or 67.7%, to $155,071, representing 34.9% of net sales, compared to 32.9% in the previous year[218]. - Total other expense, net decreased by $360, or 19.3%, to $(1,501), primarily due to reduced interest expenses[219]. - The income tax provision decreased significantly by $21,130, or 98.6%, to $307, representing 0.1% of net sales[220]. Sales and Market Trends - Online sales contributed 95.5% of total net sales, increasing by $168,034, or 65.6%, to $424,085, driven by growth from the flagship website[198]. - The U.S. Auto Care Association projected that online sales of auto parts and accessories would exceed $17 billion by 2023, highlighting a significant market opportunity[190]. - Net sales increased by $163,227, or 58.2%, to $443,884 for the fiscal year ended January 2, 2021, compared to $280,657 for the fiscal year ended December 28, 2019[218]. - Online sales represented 95.5% of total net sales in fiscal year 2020, up from 91.2% in fiscal year 2019, with an increase of $168,034, or 65.6%[217]. - The company experienced higher sales of collision parts during winter months and expects this seasonal trend to continue[249]. Cash and Debt Management - Cash and cash equivalents increased by $33,529 to $35,802 as of January 2, 2021, compared to $2,273 as of December 28, 2019[225]. - Working capital rose to $67,396 as of January 2, 2021, up from $2,427 as of December 28, 2019, mainly due to increased cash and inventory purchases[227]. - Net cash provided by financing activities was $62,361 for the fiscal year ended January 2, 2021, primarily due to common stock issuances from a public equity offering[233]. - Total debt increased to $13,010 as of January 2, 2021, compared to $11,056 as of December 28, 2019[234]. - As of January 2, 2021, the company's excess availability under the credit facility was $26,627, significantly above the required threshold of $3,000[238]. - The company's LIBOR-based interest rate was 1.44% on $0 principal, while the prime-based rate was 3.0% on $0 principal as of January 2, 2021[238]. - The credit facility matures on December 16, 2022, and includes a commitment fee of 0.25% per annum on undrawn amounts[238]. - The company has no significant off-balance sheet arrangements, indicating a straightforward financial structure[248]. - The company believes its existing cash, cash equivalents, and available financing will be sufficient to meet operational cash needs for at least the next twelve months[247]. Operational Challenges and Responses - The company experienced minimal disruptions from COVID-19, with sales primarily impacted during mid to late March 2020[192]. - A ransomware attack in June 2020 was contained without significant impact on business operations, and enhanced security measures have been implemented[193]. - The company has added new distribution centers to optimize supply chain and shipping, aiming to reduce delivery times and manage rising import costs[196]. - Inflation has not materially impacted the company's operating results and is not expected to do so in the near future[250]. - The company is required to make mandatory prepayments of loans upon certain "prepayment events," which include sales of collateral and certain debt issuances[239]. - The company was in compliance with all covenants under the Credit Agreement as of January 2, 2021[243]. - The financing arrangement for the development of the company's third warehouse has an effective interest rate of approximately 7.70% per annum and was paid off during fiscal year 2020[245]. Vehicle Market Insights - The average age of U.S. light vehicles reached 11.9 years, indicating a growing demand for aftermarket parts as older vehicles typically require more repairs[187].

2021 Investor Presentation Disclaimer 2 This presentation contains "forward-looking" statements, within the meaning of the federal securities laws, that are based on our management's belief's and assumptions and on information currently available to management. Forward-looking statements include information concerning our possible or assumed future results of operations, expected growth and business strategies, key operating metrics, financing plans, competitive position, industry environment, potential pro ...

CarParts.com, Inc. (NASDAQ:PRTS) Q4 2020 Earnings Conference Call March 8, 2021 5:00 PM ET Company Participants Lev Peker - Director, Chief Executive Officer David Meniane - Chief Operating Officer, Chief Financial Officer Conference Call Participants Thomas Forte - D. A. Davidson Darren Aftahi - ROTH Capital Partners Ryan Sigdahl - Craig-Hallum Group Scott Ciccarelli - RBC Capital Markets Josh Goldberg - G2 Steven Connell - Diamond Head Financial Operator Ladies and gentlemen, thank you for standing by, an ...

CarParts.com, Inc. (NASDAQ:PRTS) Q3 2020 Earnings Conference Call November 9, 2020 11:00 AM ET Company Participants Lev Peker - Chief Executive Officer David Meniane - Chief Operating Officer and Chief Financial Officer Conference Call Participants Ryan Sigdahl - Craig-Hallum Capital Darren Aftahi - ROTH Capital Partners Elliot Alper - D.A. Davidson Eric Beder - SCC Research Operator Welcome to the CarParts.com Third Quarter 2020 Conference Call. On the call from the company are Lev Peker, Chief Executive O ...

US Auto Parts Network, Inc. (NASDAQ:PRTS) Q1 2020 Earnings Conference Call May 6, 2020 5:00 PM ET Company Participants Lev Peker - CEO & Director David Meniane - Chief Operating & Financial Officer Conference Call Participants Eric Beder - SCC Research Sarkis Sherbetchyan - B. Riley FBR, Inc. Ryan Sigdahl - Craig-Hallum Capital Group Gary Prestopino - Barrington Research Associates Operator Welcome to the U.S. Auto Parts First Quarter 2020 Conference Call. On the call from the company are Lev Peker, Chief E ...

U.S. Auto Parts Network, Inc. (NASDAQ:PRTS) Q4 2019 Earnings Conference Call March 9, 2020 5:00 PM ET Company Participants Lev Peker - CEO & Director David Meniane - COO & CFO Conference Call Participants Gary Prestopino - Barrington Research Associates Eric Beder - Wunderlich Securities Sarkis Sherbetchyan - B. Riley Financial Operator Welcome to the U.S. Auto Parts Fourth Quarter 2019 Conference Call. On the call from the company are Lev Peker, Chief Executive Officer; and David Meniane, Chief Operating O ...

US Auto Parts Network, Inc. (NASDAQ:PRTS) Q3 2019 Earnings Conference Call November 1, 2019 5:00 PM ET Company Participants Lev Peker - CEO & Director David Meniane - COO & CFO Conference Call Participants Gary Prestopino - Barrington Research Associates Eric Beder - Small Cap Consumer Research Operator Welcome to the U.S. Auto Parts Third Quarter 2019 Conference Call. On the call from the company are Lev Peker, Chief Executive Officer; and David Meniane, Chief Operating Officer and Chief Financial Officer. ...

U.S. Auto Parts Network, Inc. (NASDAQ:PRTS) Q2 2019 Earnings Conference Call August 8, 2019 5:00 PM ET Company Participants Lev Peker – Chief Executive Officer David Meniane – Chief Operating Officer and Chief Financial Officer Conference Call Participants Gary Prestopino – Barrington Research Operator Welcome to the U.S. Auto Parts Second Quarter 2019 Conference Call. On the call from the Company are Lev Peker, Chief Executive Officer; and David Meniane, Chief Operating Officer and Chief Financial Officer. ...

U.S. Auto Parts Network, Inc. (NASDAQ:PRTS) Q1 2019 Earnings Conference Call May 9, 2019 5:00 PM ET Company Participants David Meniane - COO & CFO Lev Peker - CEO Conference Call Participants Eric Beder - SCC Research Operator Welcome to the U.S. Auto Parts First Quarter 2019 Conference Call. On the call from the company are Lev Peker, Chief Executive Officer; and David Meniane, Chief Operating Officer and Chief Financial Officer. By now, everyone should have access to the first quarter 2019 earnings releas ...