CarParts.com(PRTS) - 2024 Q1 - Quarterly Results

Financial Performance - Net sales for Q1 2024 were $166.3 million, a decrease of 5% compared to $175.5 million in Q1 2023[6] - Gross profit was $53.9 million, down from $62.6 million, resulting in a gross margin of 32.4%, a decline of 320 basis points year-over-year[7] - The company reported a net loss of $6.5 million, or $0.11 per share, compared to a net income of $1.1 million, or $0.02 per share in the prior year[7] - Adjusted EBITDA for Q1 2024 was $1.1 million, significantly lower than $9.4 million in Q1 2023[7] - Net loss for the thirteen weeks ended March 30, 2024, was $6,478 million, compared to a net income of $1,051 million for the same period in 2023[28] Guidance and Projections - The company aims for net sales in the range of $600 million to $625 million for the full year 2024, down from previous guidance of $662 million to $688 million[13] - Gross margin is expected to be around 33%, plus or minus 100 basis points, which is an improvement from the previous guidance of 31%[13] - The company is targeting a 6-8% Adjusted EBITDA margin in the medium term while increasing free cash flow generation[6] Cash and Liquidity - Cash balance as of March 30, 2024, was $46.0 million, with no revolver debt, down from $51.0 million at the end of the previous fiscal year[9] - Cash and cash equivalents decreased to $46,046 million from $50,951 million, a decline of about 11.5%[28] - Net cash provided by operating activities was $3,652 million, a significant decrease from $32,781 million in the prior year[28] - Cash received during the period for interest was $437 million, compared to $11 million in the prior year, indicating improved interest income[28] Assets and Liabilities - Total assets increased to $263,224 million as of March 30, 2024, up from $257,855 million on December 30, 2023, representing a growth of approximately 2.7%[26] - Total current liabilities remained relatively stable at $112,188 million, slightly down from $112,986 million[26] - Total stockholders' equity decreased to $109,152 million from $112,831 million, reflecting a decline of approximately 3.0%[26] Inventory and Capital Expenditure - Inventory levels decreased to $120,015 million from $128,901 million, a reduction of about 6.9%[26] - Additions to property and equipment amounted to $7,431 million, compared to $2,745 million in the same period last year, indicating increased capital expenditure[28] Operational Focus - The mobile app now contributes over 8% of total eCommerce revenue, with 38% of revenue coming from repeat customers[3] - The company is focusing on margin expansion through pricing optimization, marketing, supply chain, and technology improvements[5] - The company reported a depreciation and amortization expense of $4,025 million, up from $3,919 million in the previous year[28]