CarParts.com, Inc. (PRTS) posted a 6.52% drop in pre-market as the company reported third quarter 2021 results. However, the last trading session ended at $ 16.1 with an increase of 6.34%.
Third Quarter 2021 Results
PRTS released its third quarter 2021 results on 2sd November 2021. In the third quarter of 2021, net sales amounted to $ 141.8 million, or over $ 117.4 million the previous year. The increase is primarily due to increased capacity at the Grand Prairie distribution center and continued strong demand. Gross profit climbed 10% to $ 47.3 million in the third quarter. Due to increased sales and investment in the business, total operating expenses in the third quarter were $ 51.7 million, or more than $ 41.4 million in the same quarter of l ‘last year.
In the third quarter, the company reported a net loss of $ 4.7 million, compared to net income of $ 1.4 million the year before. An increase in non-cash charges was the main contributor to the net loss. In addition, adjusted EBITDA for the third quarter was $ 2.3 million, down from $ 5.1 million the previous year. Core investments in technology, supply chain and category management accounted for the majority of the reduction. Finally, the Company has no revolving debt, no existing commercial letters of credit and a cash balance of $ 20.7 million as at October 2, 2021.
Daytona 500 Champion
PRTS announced on 24e August 2021 that with the help of CarParts.com and PowerStop, the Daytona 500 champion returns to the track. After the memorable Daytona 500 victory in February, the Ford Mustang team and driver Michael McDowell return to Daytona International Speedway. PowerStop, a leading manufacturer of performance braking systems, will join the team. PowerStop is an important associate sponsor of the event.
The race will be McDowell’s last regular season event before the start of the 10-race NASCAR playoffs. There is no better place for the CarParts.com team to compete before attempting to win the NASCAR Cup Series Championship. In addition, McDowell returns to Daytona not only as the reigning Daytona 500 winner, but also with confidence that his vehicle will be fast and able to beat the field.
Second quarter 2021 results
PRTS announced its second quarter 2021 results on the 5the August 2021. The second quarter of 2021 saw net sales of $ 157.5 million, over $ 118.9 million the year before. The increased capacity of the Grand Prairie distribution center, as well as the wider range of branded products from the partner network, were behind the increase.
Additionally, gross profit rose 31% to $ 53.3 million in the second quarter from $ 40.8 million a year earlier, with gross margin down 40 basis points to 33.9% , against 34.3%. The decrease in gross margin is due in part to sustained freight pressure, as well as a change in the mix of branded items, which typically have a higher selling price but a lower gross margin percentage. Consistent with the increase in sales, total operating expenses for the second quarter were $ 51.0 million. Finally, net income amounted to $ 2.1 million, up from $ 1.6 million the previous year.