CarParts.com, Inc. (PRTS) saw a decline of 6.52% in the premarket because the company recorded Third Quarter 2021 Results. However, the last trading session concluded at $16.1 with an increase of 6.34%.
Third Quarter 2021 Results
PRTS reported third-quarter 2021 results on 2nd November 2021. In the third quarter of 2021, net sales were $141.8 million, more than $117.4 million the year before. The increase was mostly due to increased capacity at the Grand Prairie distribution hub and ongoing high demand. Gross profit climbed 10% to $47.3 million in the third quarter. Due to a rise in sales and investments in the business, total operating expenditures in the third quarter were $51.7 million, more than $41.4 million in the same quarter the previous year.
In the third quarter, the company reported a net loss of $4.7 million, compared to a net profit of $1.4 million the previous year. A rise in non-cash charges was the primary driver of the net loss. Moreover, the third quarter’s adjusted EBITDA was $2.3 million, down from $5.1 million the year before. Foundational investments in technology, supply chain, and category management accounted for the majority of the reduction. Lastly, the Company has no revolver debt, no existing trade letters of credit, and a cash balance of $20.7 million as of October 2, 2021.
Daytona 500 Champion
PRTS announced on 24th August 2021 that with the help of CarParts.com and PowerStop, the Daytona 500 champion returns to the track. Following the memorable Daytona 500 victory in February, the Ford Mustang team and driver Michael McDowell return to the Daytona International Speedway. PowerStop, a prominent manufacturer of performance braking systems, will be joining the team. PowerStop is a significant associate sponsor for the event.
The race will be McDowell’s last regular-season event before the 10-race NASCAR Playoffs begin. There is no better place for the CarParts.com squad to compete before attempting to win the NASCAR Cup Series championship. Moreover, McDowell returns to Daytona not just as the defending Daytona 500 winner, but also with the assurance that his vehicle will be quick and that he will be able to defeat the pack.
Second Quarter 2021 Results
PRTS announced second-quarter 2021 results on 5th August 2021. The second quarter of 2021 had net sales of $157.5 million, more than $118.9 million the year before. The Grand Prairie distribution center’s increased capacity, as well as the partner network’s larger product offering of branded goods, drove the rise.
Moreover, the gross profit grew 31% to $53.3 million in the second quarter, compared to $40.8 million the year before, with gross margin falling 40 basis points to 33.9 percent, down from 34.3 percent. The drop in gross margin was attributable in part to sustained freight pressure, as well as a shift in the mix of branded items, which usually have a higher selling price but a lower gross margin percentage. In keeping with the sales increase, total operating expenditures in the second quarter were $51.0 million. Lastly, net income grew to $2.1 million, up from $1.6 million the previous year.