CarParts.com(US:PRTS)2025-03-25 23:00Financial Performance - For fiscal year 2024, the company reported net sales of $588,846, a decrease of 12.9% from $675,729 in fiscal year 2023[195]. - The company incurred a net loss of $40,601 in fiscal year 2024, compared to a net loss of $8,223 in fiscal year 2023[195]. - Adjusted EBITDA for fiscal year 2024 was $(7,055), a significant decline from $19,687 in fiscal year 2023[197]. - Gross profit decreased by 14.2% to $196,739 in fiscal year 2024, with gross margin dropping to 33.4% from 33.9% in fiscal year 2023[198][214]. - Operating expenses for fiscal year 2024 were $237,374, a slight decrease of 0.8% from $239,287 in fiscal year 2023, but as a percentage of net sales, it increased to 40.3%[215]. - Total other income, net decreased by $1,502, or 83.3%, for fiscal year 2024 compared to fiscal year 2023, primarily due to a decrease in interest income from a lower cash balance[216]. - Income tax provision increased by $122, or 84.1%, from $145 in fiscal year 2023 to $267 in fiscal year 2024[217]. Cash Flow and Debt Management - Cash and cash equivalents decreased by $14,554, from $50,951 as of December 30, 2023, to $36,397 as of December 28, 2024[219]. - Net cash provided by operating activities decreased from $50,001 in fiscal year 2023 to $10,338 in fiscal year 2024[222]. - Net cash used in investing activities increased from $11,901 in fiscal year 2023 to $20,557 in fiscal year 2024, primarily due to additions to property and equipment[224]. - Total debt decreased from $16,635 as of December 30, 2023, to $12,313 as of December 28, 2024[226]. - The Company maintains a revolving Credit Facility with a principal amount of up to $75,000, which can be increased to $150,000 under certain conditions[227]. - As of December 28, 2024, the Company had no outstanding balance under its revolving loan[228]. - The Company believes existing cash, cash equivalents, and available financing will be sufficient to meet operational cash needs for at least the next twelve months[235]. - The Company is subject to interest rate risk related to its Credit Facility, with a SOFR-based interest rate of 6.46% as of December 28, 2024[230]. Market Trends and Opportunities - The average age of U.S. light vehicles reached a record high of 12.6 years in 2024, indicating a growing demand for aftermarket parts[193]. - The U.S. Auto Care Association projects that online sales of auto parts and accessories will exceed $23 billion by 2026, highlighting a significant market opportunity[194]. - The company offers approximately 1,544,000 SKUs, providing a comprehensive selection for consumers compared to traditional brick-and-mortar stores[192]. Strategic Initiatives - The increase in operating expenses is attributed to investments in brand and marketing, as well as one-time costs related to the new Las Vegas distribution center[215]. - The company’s re-pricing strategy aims to focus on higher value customers, which has impacted net sales and gross profit[198].