CarParts.com, Inc. (NASDAQ:PRTS) Q4 2023 Earnings Conference Call March 7, 2024 5:00 PM ET

Company Participants

Tina Mirfarsi - Senior Vice President, Communications & Culture

David Meniane - Chief Executive Officer

Ryan Lockwood - Chief Financial Officer

Michael Huffaker - Chief Operating Officer

Conference Call Participants

Ryan Sigdahl - Craig-Hallum Capital Group

Dillon Heslin - ROTH Capital Partners

Ryan Meyers - Lake Street

Operator

Good afternoon. At this time, all participants will be in a listen-only mode. After the presentation, there will be a question-and-answer session. Please note this call is being recorded.

I would now like to pass the conference over to our host, Tina Mirfarsi, Senior Vice President of Global Communications and Culture. Please go ahead.

Tina Mirfarsi

Hello, everyone and thank you for joining us for the CarParts.com Fourth Quarter and Fiscal Year-End 2024 [ph] Conference Call. I'd like to start by welcoming the investors and others who are attending this meeting remotely. Joining me today are David Meniane, Chief Executive Officer; Ryan Lockwood, Chief Financial Officer; and Michael Huffaker, Chief Operating Officer.

Before I turn it over to David to start the meeting, I have some important disclosures. The prepared remarks and responses to your questions could contain certain forward-looking statements related to the business under the federal securities laws. Actual results may differ materially from those contained in or implied by these forward-looking statements due to the risks and uncertainties associated with the business. For a discussion of the material risks and other important factors that could affect results, please refer to the CarParts.com annual report on Form 10-K and 10-Q as filed with the SEC, both of which can be found on our Investor Relations website. On the call, both GAAP and non-GAAP financial measures will be discussed. A reconciliation of GAAP to non-GAAP financial measures is provided in the CarParts.com press release issued today.

And with that, I would now like to turn the call over to David.

David Meniane

Thank you, Tina and thank you all for joining us. I will begin some highlights for the quarter and full year and then turn it over to Ryan to review our financial performance in more detail. I will then give a more detailed update on the economic environment and discuss our 2024 outlook before opening up the call for Q&A.

In the fourth quarter of 2023, sales were $156 million, bringing our full year 2023 sales to a record-breaking $676 million, up 2% from the prior year and 16% on a 2-year stack. Adjusted EBITDA was $1 million for the quarter and $19.7 million for the full year 2023 and we repurchased another 726,000 shares during the quarter, bringing our total repurchases in the year to 1.2 million shares. We had $51 million in cash on our balance sheet and an untapped revolver of up to $75 million at the end of the year. Across the industry, due to the difficult macroeconomic environment, we saw sustained price deflation as some price-sensitive consumers are choosing to defer nonessential purchases. Despite the challenging operating environment, we continue to see strong unit growth of approximately 8% in the fourth quarter. We believe we are taking share from other online players and as consumer confidence rebounds, we're well positioned to support the $389 billion automotive aftermarket and deliver long-term growth, both in volume and dollars.