CarParts.com, Inc 10-Q for FY2021 Q3

CarParts.com, Inc. (PRTS)

10-Q 2021-11-03 For: 2021-10-02

Added on April 07, 2026

About this 10-Q

CarParts.com, Inc filed this 10-Q on November 3, 2021, covering the quarter ended October 2, 2021 (FY2021 Q3).

Headline figures

Quarter ended October 2, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $141.85M; up 20.8% from $117.41M a year earlier
Net loss: $4.66M; compared with net income of $1.39M a year earlier
Diluted EPS: -$0.09; compared with $0.03 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →



Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value per share	PRTS	The NASDAQ Stock Market LLC (NASDAQ Global Market)


Large Accelerated Filer	☐	Accelerated Filer	☒
Non-Accelerated Filer	☐	Smaller reporting company	☐
Emerging growth company	☐


		Page
	PART I. FINANCIAL INFORMATION

ITEM 1.	Financial Statements	4
	Consolidated Balance Sheets (Unaudited) at October 2, 2021 and January 2, 2021	4
	Consolidated Statements of Operations and Comprehensive Operations (Unaudited) for the Thirteen and Thirty-nine Weeks Ended October 2, 2021 and September 26, 2020	5
	Consolidated Statements of Stockholders’ Equity (Unaudited) for the Thirteen and Thirty-nine Weeks Ended October 2, 2021 and September 26, 2020	6
	Consolidated Statements of Cash Flows (Unaudited) for the Thirty-nine Weeks Ended October 2, 2021 and September 26, 2020	7
	Notes to Consolidated Financial Statements (Unaudited)	8
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	21
ITEM 4.	Controls and Procedures	21

	PART II. OTHER INFORMATION

ITEM 1.	Legal Proceedings	22
ITEM 1A.	Risk Factors	22
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	44
ITEM 3.	Defaults Upon Senior Securities	44
ITEM 4.	Mine Safety Disclosures	44
ITEM 5.	Other Information	44
ITEM 6.	Exhibits	45


	October 2,		January 2,
	2021		2021
ASSETS
Current assets:
Cash and cash equivalents	$	20,680	$	35,802
Accounts receivable, net		8,055		6,318
Inventory, net		131,768		89,316
Other current assets		6,351		7,939
Total current assets		166,854		139,375
Property and equipment, net		19,069		14,742
Right-of-use - assets - operating leases, net		18,856		17,507
Right-of-use - assets - finance leases, net		14,813		12,457
Other non-current assets		2,217		2,892
Total assets	$	221,809	$	186,973
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	59,430	$	45,302
Accrued expenses		23,446		18,190
Customer deposits		708		630
Right-of-use - obligation - operating, current		3,467		2,527
Right-of-use - obligation - finance, current		2,484		1,583
Other current liabilities		3,935		3,747
Total current liabilities		93,470		71,979
Right-of-use - obligation - operating, non-current		17,077		16,046
Right-of-use - obligation - finance, non-current		12,836		11,428
Other non-current liabilities		3,956		4,031
Total liabilities		127,339		103,484
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value; 100,000 shares authorized; 52,415 and 48,091 shares issued and outstanding as of October 2, 2021 and January 2, 2021 (of which 2,525 are treasury stock)		55		51
Treasury stock		(7,146)		(7,146)
Additional paid-in capital		276,388		260,260
Accumulated other comprehensive loss		(57)		(215)
Accumulated deficit		(174,770)		(169,461)
Total stockholders’ equity		94,470		83,489
Total liabilities and stockholders' equity	$	221,809	$	186,973


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	October 2,		September 26,		October 2,		September 26,
	2021		2020		2021		2020
Net sales	$	141,846	$	117,406	$	444,184	$	324,154
Cost of sales ⁽¹⁾		94,513		74,285		294,328		210,425
Gross profit		47,333		43,121		149,856		113,729
Operating expense		51,668		41,389		154,353		110,174
(Loss) income from operations		(4,335)		1,732		(4,497)		3,555
Other income (expense):
Other, net		24		6		221		80
Interest expense		(309)		(308)		(826)		(1,461)
Total other expense, net		(285)		(302)		(605)		(1,381)
(Loss) income before income taxes		(4,620)		1,430		(5,102)		2,174
Income tax provision		39		45		207		199
Net (loss) income		(4,659)		1,385		(5,309)		1,975
Other comprehensive gain (loss):
Foreign currency translation adjustments		60		(38)		90		(73)
Unrealized (loss) gain on deferred compensation trust assets		(5)		35		68		(2)
Total other comprehensive gain (loss)		55		(3)		158		(75)
Comprehensive (loss) income	$	(4,604)	$	1,382	$	(5,151)	$	1,900
Net (loss) income per share:
Basic net (loss) income per share	$	(0.09)	$	0.03	$	(0.10)	$	0.05
Diluted net (loss) income per share	$	(0.09)	$	0.03	$	(0.10)	$	0.04
Weighted-average common shares outstanding:
Shares used in computation of basic net (loss) income per share		52,264		44,686		50,903		40,314
Shares used in computation of diluted net (loss) income per share		52,264		53,573		50,903		50,386


											Accumulated
							Additional				Other				Total
	Preferred Stock			Common Stock			Paid-in-		Treasury		Comprehensive		Accumulated		Stockholders’
	Shares	Amount		Shares	Amount		Capital		Stock		Income (Loss)		Deficit		Equity
Balance, December 28, 2019	2,771	$	3	36,167	$	38	$	187,147	$	(7,146)	$	214	$	(167,876)	$	12,380
Net loss	—		—	—		—		—		—		—		(978)		(978)
Issuance of shares in connection with stock option exercise	—		—	523		1		1,119		—		—		—		1,120
Issuance of shares in connection with restricted stock units vesting	—		—	1,809		2		(86)		—		—		—		(84)
Issuance of shares in connection with BOD fees	—		—	3		—		6		—		—		—		6
Share-based compensation	—		—	—		—		2,819		—		—		—		2,819
Common stock dividend on preferred stock	—		—	20		—		38		—		—		(39)		(1)
Conversion of preferred stock	(150)		—	150		—		—		—		—		—		—
Unrealized loss on deferred compensation trust assets	—		—	—		—		—		—		(95)		—		(95)
Effect of changes in foreign currencies	—		—	—		—		—		—		(6)		—		(6)
Balance, March 28, 2020	2,621		3	38,672		41		191,043		(7,146)		113		(168,893)		15,161
Net income	—		—	—		—		—		—		—		1,568		1,568
Issuance of shares in connection with stock option exercise	—		—	907		1		1,772		—		—		—		1,773
Issuance of shares in connection with restricted stock units vesting	—		—	183		—		(2)		—		—		—		(2)
Issuance of shares in connection with BOD fees	—		—	3		—		6		—		—		—		6
Share-based compensation	—		—	—		—		1,874		—		—		—		1,874
Issuance of series A convertible preferred stock	—		—	—		—		—		—		—		—		—
Dividend on preferred stock	—		—	25		—		—		—		—		(33)		(33)
Conversion of preferred stock	(2,621)		(3)	2,621		3		—		—		—		—		—
Unrealized gain on deferred compensation trust assets	—		—	—		—		—		—		58		—		58
Effect of changes in foreign currencies	—		—	—		—		—		—		(29)		—		(29)
Balance, June 27, 2020	—		—	42,411		45		194,693		(7,146)		142		(167,358)		20,376
Net income	—		—	—		—		—		—		—		1,385		1,385
Issuance of common stock, net of underwriters' offering expenses and commissions	—		—	4,900		5		60,526		—		—		—		60,531
Issuance of shares in connection with stock option exercise	—		—	459		—		504		—		—		—		504
Issuance of shares in connection with restricted stock units vesting	—		—	1		—		(5)		—		—		—		(5)
Issuance of shares in connection with BOD fees	—		—	1		—		6		—		—		—		6
Share-based compensation	—		—	—		—		1,773		—		—		—		1,773
Unrealized gain on deferred compensation trust assets	—		—	—		—		—		—		35		—		35
Effect of changes in foreign currencies	—		—	—		—		—		—		(38)		—		(38)
Balance, September 26, 2020	—		—	47,772		50		257,497		(7,146)		139		(165,973)		84,567

Balance, January 2, 2021	—		—	48,091		51		260,260		(7,146)		(215)		(169,461)		83,489
Net loss	—		—	—		—		—		—		—		(2,722)		(2,722)
Issuance of shares in connection with stock option exercise	—		—	130		—		163		—		—		—		163
Issuance of shares in connection with restricted stock units vesting	—		—	2,382		2		(6)		—		—		—		(4)
Issuance of shares in connection with BOD fees	—		—	—		—		6		—		—		—		6
Share-based compensation	—		—	—		—		4,080		—		—		—		4,080
Unrealized gain on deferred compensation trust assets	—		—	—		—		—		—		35		—		35
Effect of changes in foreign currencies	—		—	—		—		—		—		14		—		14
Balance, April 3, 2021	—		—	50,603		53		264,503		(7,146)		(166)		(172,183)		85,061
Net income	—		—	—		—		—		—		—		2,072		2,072
Issuance of shares in connection with stock option exercise	—		—	1,463		2		2,615		—		—		—		2,617
Issuance of stock awards	—		—	118		—		389		—		—		—		389
Issuance of shares in connection with BOD fees	—		—	—		—		6		—		—		—		6
Share-based compensation	—		—	—		—		3,821		—		—		—		3,821
Unrealized gain on deferred compensation trust assets	—		—	—		—		—		—		38		—		38
Effect of changes in foreign currencies	—		—	—		—		—		—		16		—		16
Balance, July 3, 2021	—	$	—	52,184	$	55	$	271,334	$	(7,146)	$	(112)	$	(170,111)	$	94,020
Net loss	—		—	—		—		—		—		—		(4,659)		(4,659)
Issuance of shares in connection with stock option exercise	—		—	108		—		451		—		—		—		451
Issuance of shares in connection with restricted stock units vesting	—		—	109		—		—		—		—		—		—
Issuance of stock awards	—		—	14		—		233		—		—		—		233
Issuance of shares in connection with BOD fees	—		—	—		—		6		—		—		—		6
Share-based compensation	—		—	—		—		4,364		—		—		—		4,364
Unrealized loss on deferred compensation trust assets	—		—	—		—		—		—		(5)		—		(5)
Effect of changes in foreign currencies	—		—	—		—		—		—		60		—		60
Balance, October 2, 2021	—	$	—	52,415	$	55	$	276,388	$	(7,146)	$	(57)	$	(174,770)	$	94,470


				Weighted Average
		Weighted		Remaining
		Average		Contractual	Aggregate
	Shares	Exercise Price		Term (in years)	Intrinsic Value
Vested and expected to vest as of January 2, 2021	3,143	$	—
Awarded	2,568	$	—
Vested	(2,588)	$	—
Forfeited	(22)	$	—
Awards outstanding, October 2, 2021	3,101	$	—	10.65	$	49,061
Vested and expected to vest as of October 2, 2021	3,101	$	—	10.65	$	49,061


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	October 2, 2021		September 26, 2020		October 2, 2021		September 26, 2020
Net (loss) income per share:
Numerator:
Net (loss) income	$	(4,659)	$	1,385		(5,309)		1,975
Dividends on Series A Convertible Preferred Stock		—		—		—		71
Net (loss) income allocable to common shares	$	(4,659)	$	1,385	$	(5,309)	$	1,904
Denominator:
Weighted-average common shares outstanding (basic)		52,264		44,686		50,903		40,314
Common equivalent shares from common stock options, restricted stock and preferred stock		—		8,887		—		10,072
Weighted-average common shares outstanding (diluted)		52,264		53,573		50,903		50,386
Basic net (loss) income per share	$	(0.09)	$	0.03	$	(0.10)	$	0.05
Diluted net (loss) income per share	$	(0.09)	$	0.03	$	(0.10)	$	0.04


Exhibit No.	Description
10.2		Fourteenth Amendment to Credit Agreement, dated October 15, 2021 by and among CarParts.com, Inc., certain of its domestic subsidiaries and JPMorgan Chase Bank, N.A.

10.3+		CarParts.com, Inc. Independent Director Compensation Policy (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on August 3, 2021).

31.1		Certification of the Principal Executive Officer required by Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as amended

31.2		Certification of the Principal Financial Officer required by Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as amended

32.1		Certification of the Chief Executive Officer required by 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2		Certification of the Chief Financial Officer required by 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS		XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.


Date:	November 2, 2021	CARPARTS.COM, INC.

		By:	/s/ Lev Peker
			Lev Peker
			Chief Executive Officer
			(Principal Executive Officer)

		By:	/s/ David Meniane
			David Meniane
			Chief Financial Officer and Chief Operating Officer
			(Principal Financial Officer)

Ev Peker
	/s/ Lev Peker
	Lev Peker
	Chief Executive Officer
	(Principal Executive Officer)

Id meniane
	/s/ David Meniane
	David Meniane
	Chief Financial Officer
	(Principal Financial Officer)

Avid Meni
	/s/ David Meniane
	David Meniane
	Chief Financial Officer


	Thirty-Nine Weeks Ended
	October 2,		September 26,
	2021		2020
Operating activities
Net (loss) income	$	(5,309)	$	1,975
Adjustments to reconcile net (loss) income to net cash (used) provided by operating activities:
Depreciation and amortization expense		7,123		5,298
Amortization of intangible assets		83		75
Share-based compensation expense		11,277		5,991
Stock awards issued for non-employee director service		17		18
Loss from disposition of assets		15		1
Amortization of deferred financing costs		13		14
Changes in operating assets and liabilities:
Accounts receivable		(1,737)		(4,306)
Inventory		(42,453)		(24,229)
Other current assets		1,580		(1,927)
Other non-current assets		556		(622)
Accounts payable and accrued expenses		19,477		18,062
Other current liabilities		266		380
Right-of-use obligation - operating leases - current		960		902
Right-of-use obligation - operating leases - long-term		(331)		(354)
Other non-current liabilities		114		332
Net cash (used) provided by operating activities		(8,349)		1,610
Investing activities
Additions to property and equipment		(8,434)		(6,936)
Proceeds from sale of property and equipment		27		—
Net cash used in investing activities		(8,407)		(6,936)
Financing activities
Borrowings from revolving loan payable		105		1,394
Payments made on revolving loan payable		(105)		(1,394)
Proceeds from notes payable		—		4,107
Payments of notes payable		—		(5,333)
Payments on finance leases		(1,566)		(560)
Net proceeds from issuance of common stock		—		60,531
Statutory tax withholding payment for share-based compensation		(3)		(91)
Proceeds from exercise of stock options		3,230		3,398
Preferred stock dividends paid		—		(33)
Net cash provided by financing activities		1,661		62,019
Effect of exchange rate changes on cash		(27)		5