PR Newswire
CARSON, Calif., March 6, 2017
CARSON, Calif., March 6, 2017 /PRNewswire/ -- U.S. Auto Parts Network, Inc. (NASDAQ: PRTS), one of the largest online providers of aftermarket automotive parts and accessories, reported results for the fourth quarter and fiscal year ended December 31, 2016. All information and data below excludes AutoMD unless specifically noted.
Fourth Quarter 2016 Highlights vs. Year-Ago Quarter
Full Year 2016 Highlights vs. 2015
Management Commentary
"2016 was highlighted by our renewed focus to drive profitability, which led to our first year of GAAP net income since 2010," said Shane Evangelist, CEO of U.S. Auto Parts. "We also ended the year with no revolver debt for the first time since 2011. These accomplishments were driven by our emphasis on higher-margin private label sales, which continue to grow at a double-digit rate. In fact, the fourth quarter revenue mix of private label sales hit an all-time high at 68%. During the quarter, we also enacted a stock repurchase program, which we believe was a wise utilization of our cash flow.
"In 2017, we plan to continue executing on our profitability initiatives to remain revolver debt free. We also plan to continue growing private label sales by double-digits and generating strong free cash flow."
Fourth Quarter 2016 Financial Results
Net sales in the fourth quarter of 2016 increased 5% to $71.1 million compared to $67.5 million in the year-ago quarter. The increase was largely driven by a 23% increase in online marketplace sales to $19.5 million.
Gross profit in the fourth quarter of 2016 increased 7% to $21.4 million compared to $20.0 million in the year-ago quarter. As a percentage of net sales, gross profit increased 50 basis points to 30.1% compared to 29.6%. The increase in gross profit margin was primarily driven by a higher mix of private label sales, which was 68% of net sales compared to 63% in the year-ago quarter. The increase was also driven by freight and warehouse supplies savings.
Total operating expenses in the fourth quarter increased 8% to $21.3 million compared to $19.7 million in the year-ago quarter. As a percentage of net sales, operating expenses increased to 29.9% compared to 29.2% in the year-ago quarter.
Net loss in the fourth quarter was $195 thousand, or ($0.01) per share, compared to a net loss of $65 thousand, or $0.00 per share in the year-ago quarter.
Adjusted EBITDA in the fourth quarter of 2016 was $2.5 million, compared to $2.6 million in the same period of 2015.
At December 31, 2016, cash and cash equivalents totaled $2.7 million compared to $1.5 million at January 2, 2016. The Company also had no revolver debt at December 31, 2016 compared to $11.8 million at January 2, 2016.
Key Operating Metrics
| Q4 2016 | | Q4 2015 | | Q3 2016 | ||||||
Conversion Rate 1 | 1.87 | % | | 1.78 | % | | 1.89 | % | |||
Customer Acquisition Cost 1 | $ | 7.64 | | | $ | 7.95 | | | $ | 7.61 | |
Unique Visitors (millions) 1 | 27.9 | | | 27.6 | | | 28.4 | | |||
Number of Orders - E-commerce only (thousands) | 521 | | | 492 | | | 537 | | |||
Number of Orders - Online Marketplace (thousands) | 319 | | | 246 | | | 309 | | |||
Total Number of Internet Orders (thousands) | 840 | | | 738 | | | 846 | | |||
Revenue Capture (% Sales) 2 | 85.2 | % | | 85.8 | % | | 84.7 | % | |||
Average Order Value - E-commerce only | $ | 99 | | | $ | 106 | | | $ | 103 | |
Average Order Value - Online Marketplace | $ | 66 | | | $ | 71 | | | $ | 68 | |
Average Order Value - Total Internet Orders | $ | 86 | | | $ | 94 | | | $ | 90 | |
| |
1. | Excludes online marketplaces and media properties (e.g. AutoMD). |
2. | Revenue capture is the amount of actual dollars retained after taking into consideration returns, credit card declines and product fulfillment and excludes online marketplaces and media properties (e.g. AutoMD). |
Full Year Financial Results
Net sales in 2016 increased 4% to $303.3 million compared to $290.8 million in 2015.
Gross profit in 2016 increased 11% to $92.0 million compared to $83.2 million in 2015. As a percentage of net sales, gross profit increased 170 basis points to 30.3% compared to 28.6%.
Total operating expenses in 2016 increased to $87.8 million compared to $82.0 million in 2015. As a percentage of net sales, operating expenses were 28.9% compared to 28.2%.
Net income in 2016 increased significantly to $3.0 million, or $0.08 per share, compared to a net loss of $0.1 million, or ($0.01) per share in 2015.
Adjusted EBITDA in 2016 increased 40% to $14.0 million compared to $10.0 million in 2015. As a percentage of net sales, adjusted EBITDA increased 120 basis points to 4.6% compared to 3.4%.
2017 Outlook
U.S. Auto Parts continues to expect net sales to be up low to mid-single digits on a percentage basis compared to 2016, and net income to range between $4.8 million and $7.8 million, reflecting an increase of 50% to 150% from 2016. The company also expects adjusted EBITDA to range between $15.0 and $18.0 million, reflecting a 5% to 25% increase from the prior year.
Conference Call
U.S. Auto Parts will conduct a conference call today at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss its financial results for the fourth quarter and full year ended December 31, 2016.
The company's CEO Shane Evangelist and CFO Neil Watanabe will host the conference call, followed by a question and answer period.
Date: Monday, March 6, 2017
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 877-407-9039
International dial-in number: 201-689-8470
Conference ID: 13652459
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios at 1-949-574-3860.
The conference call will be broadcast live and available for replay via the investor relations section of the company's website at www.usautoparts.net.
A telephone replay of the conference call will also be available on the same day through March 20, 2017.
Toll-free replay number: 844-512-2921
International replay number: 412-317-6671
Replay ID: 13652459
About U.S. Auto Parts Network, Inc.
Established in 1995, U.S. Auto Parts is a leading online provider of automotive aftermarket parts, including collision, engine, and performance parts and accessories. Through the Company's network of websites, U.S. Auto Parts provides individual consumers with a broad selection of competitively priced products, all mapped by a proprietary database with applications based on vehicle makes, models and years. U.S. Auto Parts' flagship websites include www.autopartswarehouse.com, www.carparts.com, www.jcwhitney.com, and www.AutoMD.com as well as the Company's corporate website at www.usautoparts.net. U.S. Auto Parts is headquartered in Carson, California.
Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.