CarParts.com(PRTS) - 2023 Q4 - Annual Report

Financial Performance - For fiscal year 2023, the company generated net sales of $675,729, an increase of 2.1% compared to $661,604 in fiscal year 2022[199]. - The company incurred a net loss of $8,223 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, 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, representing 35.4% of net sales[218]. - Adjusted EBITDA for fiscal year 2023 was $19,687, down from $26,113 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, 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 $632 in fiscal year 2022 to $145 in fiscal year 2023[220]. Cash Flow and Debt Management - Cash and cash equivalents rose to $50,951 as of December 30, 2023, representing a $32,184 increase from $18,767 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 $15,368 for the prior year[225]. - Total debt decreased to $16,635 as of December 30, 2023, down from $20,669 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 $150,000 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 $105,224 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 $21 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].