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CarParts.com(PRTS) - 2023 Q4 - Annual Report
PRTSCarParts.com(PRTS)2024-03-07 23:29
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Financial Performance - For fiscal year 2023, the company generated net sales of 675,729,anincreaseof2.1675,729, an increase of 2.1% compared to 661,604 in fiscal year 2022[199]. - The company incurred a net loss of 8,223infiscalyear2023,comparedtoanetlossof8,223 in fiscal year 2023, compared to a net loss of 951 in fiscal year 2022[199]. - Gross profit decreased by 0.6% to 229,406,withagrossmargindeclineof100basispointsto33.9229,406, with a gross margin decline of 100 basis points to 33.9% in fiscal year 2023[200]. - Operating expenses increased by 9,048, or 3.9%, for fiscal year 2023, totaling 239,287,representing35.4239,287, representing 35.4% of net sales[218]. - Adjusted EBITDA for fiscal year 2023 was 19,687, down from 26,113infiscalyear2022[206].−Thecompany’snetlossbeforeinterest,taxes,depreciation,andamortizationwas26,113 in fiscal year 2022[206]. - The company’s net loss before interest, taxes, depreciation, and amortization was 19,687 in fiscal year 2023[199]. - The increase in net sales was primarily driven by continued demand despite a decrease in gross margin due to unfavorable freight costs[217]. - Total other income increased by 2,773,or285.92,773, or 285.9%, for fiscal year 2023 compared to fiscal year 2022, primarily due to higher interest income from increased interest rates and cash balance[219]. - Income tax provision decreased by 487, or 77.1%, from 632infiscalyear2022to632 in fiscal year 2022 to 145 in fiscal year 2023[220]. Cash Flow and Debt Management - Cash and cash equivalents rose to 50,951asofDecember30,2023,representinga50,951 as of December 30, 2023, representing a 32,184 increase from 18,767asofDecember31,2022[222].−Netcashprovidedbyoperatingactivitiesincreasedto18,767 as of December 31, 2022[222]. - Net cash provided by operating activities increased to 50,001 for the fiscal year ended December 30, 2023, compared to 15,368fortheprioryear[225].−Totaldebtdecreasedto15,368 for the prior year[225]. - Total debt decreased to 16,635 as of December 30, 2023, down from 20,669asofDecember31,2022[228].−TheCompanymaintainsarevolvingCreditFacilitywithaprincipalamountofupto20,669 as of December 31, 2022[228]. - The Company maintains a revolving Credit Facility with a principal amount of up to 75,000, which can be increased to 150,000undercertainconditions[229].−TheCompanyhadnooutstandingrevolvingloanbalanceasofDecember30,2023[230].TaxandDeferredAssets−TheCompanymaintainedavaluationallowanceof150,000 under certain conditions[229]. - The Company had no outstanding revolving loan balance as of December 30, 2023[230]. Tax and Deferred Assets - The Company maintained a valuation allowance of 38,458 against deferred tax assets due to cumulative losses in recent years[220]. - Federal and state NOL carryforwards were 105,224and105,224 and 84,780, respectively, with federal NOL carryforwards beginning to expire in 2029[221]. Market Trends and Product Offering - The average age of U.S. light vehicles reached a record-high of 12.5 years in 2023, indicating increased demand for aftermarket parts[197]. - The U.S. Auto Care Association projects that online sales of auto parts and accessories will reach approximately 21billionby2025,supportingthecompany′sgrowthstrategy[198].−Thecompanyoffersapproximately1,047,000SKUsonitsflagshipwebsiteandapp,providingacomprehensiveselectionforconsumers[196].InvestmentActivities−Netcashusedininvestingactivitieswas21 billion by 2025, supporting the company's growth strategy[198]. - The company offers approximately 1,047,000 SKUs on its flagship website and app, providing a comprehensive selection for consumers[196]. Investment Activities - Net cash used in investing activities was 11,901 for the fiscal year ended December 30, 2023, primarily due to additions to property and equipment[226].