Randolph Palmer CARSON, Calif., May nine, 2019 /PRNewswire/ — U.S. Auto Parts Network, Inc. (NASDAQ: PRTS), considered one of the biggest online carriers of aftermarket automotive parts and add-ons, is reporting outcomes for the first area ended March 30, 2019. First Quarter 2019 Highlights vs. Year-Ago Quarter Net sales were $ seventy-four. Seven million compared to $78.Four million. The gross margin turned into 26—Nine as compared to 29.6%. The net loss turned to $three.6 million or $(zero.10) in line with percentage, compared to net profits of $zero.Six million or $0.01 in step with share. Adjusted EBITDA (a non-GAAP measure defined under) became $(zero.1) million compared to $four.Three million. Ended the quarter with no revolver debt. Conversion price extended 30 basis factors to two.6%.
Management Commentary
“During the first zone, we started to put the inspiration to go back U.S. Auto Parts to worthwhile revenue boom,” stated Lev Parker, CEO of U.S. Auto Parts. “I took over the management position in January, and we’ve already begun to rebuild and beef up our crew with a brand new chief marketing officer, leading legal officer, and leader working and monetary officer, all of whom deliver particular qualifications and skillsets to U.S. Auto Parts. We have also brought in crucial personnel to execute our new increase method, including a new consumer experience crew, SEM and content material teams, and retention advertising teams.
“We began to deploy various strategic initiatives at some point in the area, including consolidating multiple websites and market stores. As mentioned in our remaining quarterly update, we want to make awareness of our sources on fewer residences so that we can do more activity at each development and optimize those websites, even ensuring each asset has a unique and differentiated cost proposition for the customer. “After the quarter, if you want to reduce shipping instances, we signed a new lease for a one hundred twenty-five,000 rectangular foot distribution center in Las Vegas, Nevada. We count on this new facility to move stay in September, which could allow us to offer two-day shipping to ninety-three % of you. S . A.
“Although we’ve started to take the important steps to return U.S. Auto Parts to boom, there may be a lot of work to be carried out, particularly with improving our in-inventory fees as we remain impacted by previous management decisions concerning the customs trouble. Nevertheless, we remain devoted to reaching revenue increase and nice adjusted EBITDA in 2019, and retain to count on the benefit of our diverse projects to materialize as we go out the yr.”
First Quarter 2019 Financial Results
Net income inside the first region of 2019 was $74.7 million as compared to $seventy 4 million in the past quarter. The decline changed into, in large part, pushed by a 6% lower in e-trade sales resulting from a reduction of site visitors and a decrease in stock prices on account of the Company’s customs problem. As a result, gross income in the first sector of 2019 became $20.1 million compared to $23.2 million in the year-ago sector. As a percentage of internet sales, gross earnings were 26.9% compared to 29.6%. The lower changed into generally pushed via multiplied freight along with side expenses related to port and provider prices from the customs difficulty.
Total running expenses within the first area had been $23.6 million compared to $21.9 million within the first sector of the last year. As a percentage of internet income, running charges elevated to 31.Five compared to 27.9% in the 12 months in the past sector, with the increase pushed via worker transition costs, accelerated advertising spending, and investments in advertising platforms and personnel. As a result, the net loss in the first area became $three.6 million, or $(0.10) in line with percentage, compared to net earnings of $0.6 million or $zero.01 in line with a share in the 12 months in the past duration. Adjusted EBITDA within the first region in 2019 turned into $(zero.1) million compared to $four.Three million inside the yr-in the past area, with the decrease mostly pushed using lower visitors to the Company’s e-trade websites, in conjunction with lower in-inventory quotes due to the customs difficulty. On March 30, 2019, cash and cash equivalents totaled $four.Eight million compared to $2.0 million on December 29, 2018. The Company additionally had no revolver debt on March 30, 2019, and December 29, 2018.
