CarParts.com(PRTS) - 2025 Q1 - Quarterly Results

Financial Performance - Net sales for Q1 2025 decreased by 11% to $147.4 million compared to $166.3 million in Q1 2024[6] - Gross profit was $47.3 million, down from $53.9 million, with a gross margin of 32.1%, a decrease of 30 basis points[7] - Net loss for the quarter was ($15.3) million, or ($0.27) per share, compared to a net loss of ($6.5) million, or ($0.11) per share in the prior year[5] - Adjusted EBITDA for Q1 2025 was ($6.2) million, a decline from $1.1 million in Q1 2024, primarily due to soft consumer demand[9] - Operating expenses increased to $62.5 million, representing 42.4% of net sales, up from 36.3% in the year-ago quarter[8] Cash and Assets - The company reported a cash balance of $38.5 million with no revolver debt as of March 29, 2025[9] - Cash and cash equivalents at the end of the period were $38,532 thousand, an increase of $2,135 thousand from $36,397 thousand at the beginning of the period[28] - Total current assets increased to $149,239 thousand as of March 29, 2025, up from $138,868 thousand on December 28, 2024, representing an increase of 8.8%[26] - Accounts receivable increased to $10,211 thousand as of March 29, 2025, from $6,098 thousand on December 28, 2024, marking a growth of 67.7%[26] - Inventory levels increased to $94,207 thousand as of March 29, 2025, compared to $90,353 thousand on December 28, 2024, which is an increase of 4.8%[26] Liabilities and Equity - Total liabilities rose to $143,685 thousand as of March 29, 2025, compared to $125,399 thousand on December 28, 2024, reflecting an increase of 14.6%[26] - Total stockholders' equity decreased to $72,770 thousand as of March 29, 2025, down from $85,175 thousand on December 28, 2024, a decline of 14.5%[26] Operational Highlights - Cumulative net downloads of the mobile app reached approximately 900,000, with over 5,000 CarParts+ and Roadside Assistance Memberships sold year to date[5] - For the first 6 weeks of Q2 2025, revenues increased by double digits year-over-year despite lower marketing spend[4] - Management emphasized the importance of targeting higher-margin sales and diversifying customer acquisition strategies to improve profitability[3] - The company is currently evaluating various strategic alternatives and is not providing guidance for 2025[10] Other Financial Metrics - Net loss for the thirteen weeks ended March 29, 2025, was $15,283 thousand, compared to a net loss of $6,478 thousand for the same period in 2024, indicating a deterioration of 135.5%[28] - Net cash provided by operating activities for the thirteen weeks ended March 29, 2025, was $5,505 thousand, up from $3,652 thousand in the same period of 2024, representing a growth of 50.7%[28] - The company reported depreciation and amortization expense of $5,482 thousand for the thirteen weeks ended March 29, 2025, compared to $4,025 thousand in the same period of 2024, an increase of 36.3%[28] - Cash paid during the period for interest was $256 thousand, a decrease from $300 thousand in the same period of 2024, indicating a reduction of 14.7%[28]