CarParts.com, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>CarParts.com, Inc. filed its 2023 10-K, reporting $565.7 million in revenue, an increase from $541.4 million in 2022.</b>

AI Summary

CarParts.com, Inc. (PRTS) filed a Annual Report (10-K) with the SEC on March 8, 2024. Revenue for the fiscal year ended December 30, 2023, was $565.7 million. Revenue for the fiscal year ended December 31, 2022, was $541.4 million. Revenue for the fiscal year ended January 1, 2022, was $513.8 million. The company's fiscal year ends on the Sunday closest to December 31st. The filing includes detailed financial statements and risk factors.

Why It Matters

For investors and stakeholders tracking CarParts.com, Inc., this filing contains several important signals. The 10-K filing provides a comprehensive overview of the company's financial performance and strategic positioning for the fiscal year 2023. Investors can analyze the company's revenue growth, debt levels, and operational risks to assess its future prospects.

Risk Assessment

Risk Level: PRTS — CarParts.com, Inc. shows moderate risk based on this filing. The company's financial performance is subject to market competition and economic conditions, as detailed in the risk factors section.

Analyst Insight

Monitor the company's revenue growth trajectory and its ability to manage operational costs in the competitive auto parts market.

Financial Highlights

revenue

56570000

revenue Growth

4.5%

Revenue Breakdown

Key Numbers

• 56570000 — Revenue FY 2023 (Fiscal year ended December 30, 2023)
• 54137000 — Revenue FY 2022 (Fiscal year ended December 31, 2022)
• 51381000 — Revenue FY 2021 (Fiscal year ended January 1, 2022)

Key Players & Entities

• CarParts.com, Inc. (company) — Filer
• U.S. Auto Parts Network, Inc. (company) — Former Company Name
• 2050 W. 190TH STREET (company) — Business Address
• TORRANCE (company) — Business Address City
• CA (company) — Business Address State
• DE (company) — State of Incorporation

FAQ

Industry Context

CarParts.com operates in the online retail sector, specifically focusing on automotive parts and accessories.

Regulatory Implications

The company is subject to general business regulations and specific regulations pertaining to e-commerce and retail operations.

What Investors Should Do

1. Review the detailed financial statements for revenue trends and profitability.
2. Analyze the risk factors section for potential challenges and mitigation strategies.
3. Compare key financial metrics with industry peers.

Year-Over-Year Comparison

Revenue increased by 4.5% from $54.1 million in FY 2022 to $56.6 million in FY 2023.

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value per share PRTS The NASDAQ

Filing Documents

• prts-20231230x10k.htm (10-K) — 2107KB
• prts-20231230xex10d6.htm (EX-10.6) — 5KB
• prts-20231230xex21d1.htm (EX-21.1) — 12KB
• prts-20231230xex23d1.htm (EX-23.1) — 3KB
• prts-20231230xex31d1.htm (EX-31.1) — 10KB
• prts-20231230xex31d2.htm (EX-31.2) — 10KB
• prts-20231230xex32d1.htm (EX-32.1) — 6KB
• prts-20231230xex32d2.htm (EX-32.2) — 6KB
• prts-20231230xex97.htm (EX-97) — 29KB
• prts-20231230x10k008.jpg (GRAPHIC) — 53KB
• 0001378950-24-000034.txt (&nbsp;) — 8690KB
• prts-20231230.xsd (EX-101.SCH) — 51KB
• prts-20231230_cal.xml (EX-101.CAL) — 84KB
• prts-20231230_def.xml (EX-101.DEF) — 199KB
• prts-20231230_lab.xml (EX-101.LAB) — 566KB
• prts-20231230_pre.xml (EX-101.PRE) — 384KB
• prts-20231230x10k_htm.xml (XML) — 1449KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 6 Item 1B. Unresolved Staff Comments 27 Item 1C. Cybersecurity 28 Item 2.

Properties

Properties 29 Item 3.

Legal Proceedings

Legal Proceedings 29 Item 4. Mine Safety Disclosures 29 PART II 30 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 30 Item 6. [Reserved] 31 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 39 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 40 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 40 Item 9A.

Controls and Procedures

Controls and Procedures 40 Item 9B. Other Information 41 Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 41 PART III 42 Item 10. Directors, Executive Officers and Corporate Governance 42 Item 11.

Executive Compensation

Executive Compensation 42 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 42 Item 13. Certain Relationships and Related Transactions, and Director Independence 42 Item 14. Principal Accounting Fees and Services 43 PART IV 44 Item 15. Exhibits and Financial Statement Schedules 44 Unless the context requires otherwise, as used in this report, the terms "CarParts.com," the "Company," "we," "us" and "our" refer to CarParts.com, Inc. and its subsidiaries. Unless otherwise stated, all amounts are presented in thousands. Carparts.com , Kool-Vue , JC Whitney , Evan Fischer , SureStop , TrueDrive , DriveWire , and DriveMotive , amongst others, are our current and pending trademarks in the United States. All other trademarks and trade names appearing in this report are the property of their respective owners. Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS The statements included in this report, other than statements or characterizations of historical or current fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and we intend that such forward-looking statements be subject to the safe harbors created thereby. Any forward-looking statements included herein are based on management's beliefs and assumptions and on information currently available to management. We have attempted to identify forward-looking statements by terms such as "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "projects," "should," "will," "would," "will likely continue," "will likely result" and variations of these words or similar expressions. These forward-looking statements include, but are not limited to, statements regarding future events, our future operating and financial results, financial expectatio

BUSINESS

ITEM 1. BUSINESS Overview CarParts.com, Inc. is a technology-driven eCommerce company dedicated to revolutionizing the way drivers shop for parts. With over 25 years of operation, CarParts.com serves as an end-to-end solution for automotive repair and maintenance resources, offering a seamless online shopping experience that empowers drivers along every part of their journey. We principally sell our products, identified as stock keeping units ("SKUs"), to individual consumers through our flagship website, www.carparts.com , and online marketplaces. Our easy-to-use, mobile-friendly website and newly launched mobile app provide customers with a comprehensive selection of approximately 1,047,000 SKUs, complete with detailed product descriptions, attributes, and photographs. Utilizing our proprietary product database, we ensure a seamless match between our SKUs and vehicle specifications, guaranteeing the right part fitment. We leverage our online sales channel and global supplier relationships to eliminate intermediaries in the traditional auto parts supply chain, enabling us to offer an unparalleled selection of SKUs compared to offline retail competitors. Established in California in 1995 as an aftermarket auto parts distributor, the Company – then-known as U.S. Auto Parts Network, Inc. – embarked on a digital transformation journey in 2000, with the launch of our first retail website. Following our reincorporation in Delaware in 2006, we expanded our online operations, bolstering our eCommerce network, launching additional websites, refining our internet marketing strategies, and commencing sales on various online marketplaces. In July 2020, we officially rebranded to CarParts.com and consolidated our web presence into one single eCommerce destination . In the third quarter of 2023, we added a mobile app, available on both iOS and Android, enabling our customers to conveniently shop from their phones. Driven by our commitment to providing unparalleled customer

RISK FACTORS

ITEM 1A. RISK FACTORS Our business is subject to a number of risks which are summarized and then discussed in more detail below. Other risks are presented elsewhere in this report and in our other filings with the SEC. You should consider carefully the following risks in addition to the other information contained in this report and our other filings with the SEC, including our subsequent reports on Forms 10-Q and 8-K, and any amendments thereto, before deciding to buy, sell or hold our common stock. If any of the following known or unknown risks or uncertainties actually occurs with material adverse effects on us, our business, financial condition, results of operations and/or liquidity could be seriously harmed. In that event, the market price for our common stock will likely decline and you may lose all or part of your investment. You should not interpret the disclosure of a risk to imply that such risk has not already materialized. Risk Factors Summary Our business and industry are subject to a number of risks that could adversely affect our business, financial condition and operating results. These risks are discussed in more detail below and include, but are not limited to, risks related to the following: Risks Related To Our Operations We are dependent upon relationships with suppliers in Taiwan and China for the majority of our products. We depend on third-party delivery services, both inbound and outbound, to deliver our products to our distribution

View Full Filing

View this 10-K filing on SEC EDGAR