CarParts.com, Inc 10-Q for FY2021 Q1

CarParts.com, Inc. (PRTS)

10-Q 2021-05-11 For: 2021-04-03

Added on April 07, 2026

About this 10-Q

CarParts.com, Inc filed this 10-Q on May 11, 2021, covering the quarter ended April 3, 2021 (FY2021 Q1).

Headline figures

Quarter ended April 3, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $144.8M; up 64.9% from $87.82M a year earlier
Net loss: $2.72M; compared with a net loss of $978K a year earlier

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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 April 3, 2021 and January 2, 2021	4
	Consolidated Statements of Operations and Comprehensive Operations (Unaudited) for the Thirteen Weeks Ended April 3, 2021 and March 28, 2020	5
	Consolidated Statements of Stockholders’ Equity (Unaudited) for the Thirteen Weeks Ended April 3, 2021 and March 28, 2020	6
	Consolidated Statements of Cash Flows (Unaudited) for the Thirteen Weeks Ended April 3, 2021 and March 28, 2020	7
	Notes to Consolidated Financial Statements (Unaudited)	8
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	19
ITEM 4.	Controls and Procedures	20

	PART II. OTHER INFORMATION

ITEM 1.	Legal Proceedings	21
ITEM 1A.	Risk Factors	21
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43
ITEM 3.	Defaults Upon Senior Securities	43
ITEM 4.	Mine Safety Disclosures	43
ITEM 5.	Other Information	43
ITEM 6.	Exhibits	44


	April 3,		January 2,
	2021		2021
ASSETS
Current assets:
Cash and cash equivalents	$	45,896	$	35,802
Accounts receivable, net		9,735		6,318
Inventory		97,942		89,316
Other current assets		9,840		7,939
Total current assets		163,413		139,375
Property and equipment, net		16,063		14,742
Right-of-use - assets - operating leases, net		16,716		17,507
Right-of-use - assets - finance leases, net		13,875		12,457
Other non-current assets		2,301		2,892
Total assets	$	212,368	$	186,973
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	58,306	$	45,302
Accrued expenses		26,492		18,190
Customer deposits		2,204		630
Right-of-use - obligation - operating, current		2,451		2,527
Right-of-use - obligation - finance, current		1,950		1,583
Other current liabilities		4,537		3,747
Total current liabilities		95,940		71,979
Right-of-use - obligation - operating, non-current		15,215		16,046
Right-of-use - obligation - finance, non-current		12,521		11,428
Other non-current liabilities		3,631		4,031
Total liabilities		127,307		103,484
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value; 100,000 shares authorized; 50,603 and 48,091 shares issued and outstanding as of April 3, 2021 and January 2, 2021 (of which 2,525 are treasury stock)		53		51
Treasury stock		(7,146)		(7,146)
Additional paid-in capital		264,503		260,260
Accumulated other comprehensive loss		(166)		(215)
Accumulated deficit		(172,183)		(169,461)
Total stockholders’ equity		85,061		83,489
Total liabilities and stockholders' equity	$	212,368	$	186,973


	Thirteen Weeks Ended
	April 3,		March 28,
	2021		2020
Net sales	$	144,802	$	87,818
Cost of sales ⁽¹⁾		95,628		58,039
Gross profit		49,174		29,779
Operating expense		51,672		30,132
Loss from operations		(2,498)		(353)
Other income (expense):
Other, net		81		71
Interest expense		(250)		(660)
Total other expense, net		(169)		(589)
Loss before income taxes		(2,667)		(942)
Income tax provision		55		36
Net loss		(2,722)		(978)
Other comprehensive gain (loss):
Foreign currency translation adjustments		14		(6)
Unrealized gain (loss) on deferred compensation trust assets		35		(95)
Total other comprehensive gain (loss)		49		(101)
Comprehensive loss	$	(2,673)	$	(1,079)
Net loss per share:
Basic and diluted net loss per share	$	(0.06)	$	(0.03)
Weighted-average common shares outstanding:
Shares used in computation of basic and diluted net loss per share		48,760		36,871


											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

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


				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	1,834	$	—
Vested	(2,381)	$	—
Forfeited	(2)	$	—
Awards outstanding, April 3, 2021	2,594	$	—	8.80	$	40,021
Vested and expected to vest as of April 3, 2021	2,594	$	—	8.80	$	40,021


	Thirteen Weeks Ended
	April 3, 2021		March 28, 2020
Net loss per share:
Numerator:
Net loss	$	(2,722)	$	(978)
Dividends on Series A Convertible Preferred Stock		—		38
Net loss allocable to common shares	$	(2,722)	$	(1,016)
Denominator:
Weighted-average common shares outstanding (basic and diluted)		48,760		36,871
Basic and diluted net loss per share	$	(0.06)	$	(0.03)


Exhibit No.	Description
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

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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:	May 10, 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 Accounting 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


	Thirteen Weeks Ended
	April 3,		March 28,
	2021		2020
Operating activities
Net loss	$	(2,722)	$	(978)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization expense		2,379		1,898
Amortization of intangible assets		28		25
Deferred income taxes		—		(22)
Share-based compensation expense		3,573		2,663
Stock awards issued for non-employee director service		6		6
Amortization of deferred financing costs		5		5
Changes in operating assets and liabilities:
Accounts receivable		(3,417)		(2,362)
Inventory		(8,627)		(4,860)
Other current assets		(1,903)		(713)
Other non-current assets		554		(197)
Accounts payable and accrued expenses		21,265		18,022
Other current liabilities		2,364		808
Right-of-use obligation - operating leases - current		(72)		234
Right-of-use obligation - operating leases - long-term		(44)		(231)
Other non-current liabilities		(338)		1
Net cash provided by operating activities		13,051		14,299
Investing activities
Additions to property and equipment		(2,630)		(2,050)
Net cash used in investing activities		(2,630)		(2,050)
Financing activities
Borrowings from revolving loan payable		69		1,170
Payments made on revolving loan payable		(69)		(1,170)
Payments of notes payable		—		(1,226)
Payments on finance leases		(476)		(178)
Statutory tax withholding payment for share-based compensation		(3)		(84)
Proceeds from exercise of stock options		163		1,120
Net cash used in financing activities		(316)		(368)
Effect of exchange rate changes on cash		(11)		(6)
Net change in cash and cash equivalents		10,094		11,875
Cash and cash equivalents, beginning of period		35,802		2,273
Cash and cash equivalents, end of period	$	45,896	$	14,148
Supplemental disclosure of non-cash investing and financing activities:


	Thirteen Weeks Ended
	April 3, 2021		March 28, 2020
House Brands
Replacement Parts	70	%	72	%
Hard Parts	17	%	19	%
Performance	1	%	1	%

Branded
Replacement Parts	1	%	1	%
Hard Parts	6	%	4	%
Performance	5	%	3	%

Total	100	%	100	%