CarParts.com Q2 2024 10-Q Filed

TL;DR

**CarParts.com Q2 10-Q dropped: Cash up, inventory down. Check the balance sheet.**

AI Summary

CarParts.com, Inc. filed its 10-Q for the period ending June 29, 2024. The company reported financial results for the second quarter of 2024, detailing changes in its balance sheet, including increases in cash and cash equivalents and decreases in inventory. Specific figures for retained earnings, additional paid-in capital, and treasury stock are provided for various reporting dates throughout 2023 and 2024.

Why It Matters

This filing provides investors with the latest financial snapshot of CarParts.com, Inc., crucial for understanding the company's performance and financial health.

Risk Assessment

Risk Level: medium — 10-Q filings are standard disclosures, but the specific financial details within can reveal underlying risks or strengths.

Key Numbers

• 56303000 — Treasury Stock (As of 2024-03-30)
• 57088000 — Treasury Stock (As of 2023-12-30)

Key Players & Entities

• CarParts.com, Inc. (company) — Filer of the 10-Q
• 20240629 (date) — End of reporting period
• 20240801 (date) — Filing date
• 2023 (date) — Previous fiscal year
• 2024 (date) — Current fiscal year

FAQ

Key Financial Figures

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

Filing Documents

• prts-20240629x10q.htm (10-Q) — 1294KB
• prts-20240629xex31d1.htm (EX-31.1) — 14KB
• prts-20240629xex31d2.htm (EX-31.2) — 14KB
• prts-20240629xex32d1.htm (EX-32.1) — 7KB
• prts-20240629xex32d2.htm (EX-32.2) — 7KB
• prts-20240629x10q004.jpg (GRAPHIC) — 16KB
• 0001378950-24-000103.txt ( ) — 4206KB
• prts-20240629.xsd (EX-101.SCH) — 26KB
• prts-20240629_cal.xml (EX-101.CAL) — 42KB
• prts-20240629_def.xml (EX-101.DEF) — 96KB
• prts-20240629_lab.xml (EX-101.LAB) — 282KB
• prts-20240629_pre.xml (EX-101.PRE) — 172KB
• prts-20240629x10q_htm.xml (XML) — 466KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM 1.

Financial Statements

Financial Statements 4 Consolidated Balance Sheets (Unaudited) at June 29, 2024 and December 30, 2023 4 Consolidated Statements of Operations and Comprehensive Operations (Unaudited) for the Thirteen and Twenty-six Weeks Ended June 29, 2024 and July 1, 2023 5 Consolidated Statements of Stockholders' Equity (Unaudited) for the Thirteen and Twenty-six Weeks Ended June 29, 2024 and July 1, 2023 6 Consolidated Statements of Cash Flows (Unaudited) for the Twenty-six Weeks Ended June 29, 2024 and July 1, 2023 7

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 8 ITEM 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 13 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 20 ITEM 4.

Controls and Procedures

Controls and Procedures 20

OTHER INFORMATION

PART II. OTHER INFORMATION ITEM 1.

Legal Proceedings

Legal Proceedings 21 ITEM 1A.

Risk Factors

Risk Factors 21 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 43 ITEM 3. Defaults Upon Senior Securities 43 ITEM 4. Mine Safety Disclosures 43 ITEM 5. Other Information 43 ITEM 6. Exhibits 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 expectations, expected growth and strategies, our ability to acquire additional market sha

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CARPARTS.COM, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited, In Thousands, Except Par Value Data) June 29, December 30, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 34,065 $ 50,951 Accounts receivable, net 6,147 7,365 Inventory, net 109,289 128,901 Other current assets 8,154 6,121 Total current assets 157,655 193,338 Property and equipment, net 34,622 26,389 Right-of-use - assets - operating leases, net 29,530 19,542 Right-of-use - assets - finance leases, net 12,929 15,255 Other non-current assets 3,303 3,331 Total assets $ 238,039 $ 257,855 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 62,701 $ 77,851 Accrued expenses 17,571 20,770 Right-of-use - obligation - operating, current 5,692 4,749 Right-of-use - obligation - finance, current 3,897 4,308 Other current liabilities 4,742 5,308 Total current liabilities 94,603 112,986 Right-of-use - obligation - operating, non-current 26,166 16,742 Right-of-use - obligation - finance, non-current 10,517 12,327 Other non-current liabilities 2,863 2,969 Total liabilities 134,149 145,024 Commitments and contingencies Stockholders' equity: Common stock, $ 0.001 par value; 100,000 shares authorized; 57,088 and 56,303 shares issued and outstanding as of June 29, 2024 and December 30, 2023 (of which 3,786 are treasury stock) 61 60 Treasury stock ( 11,912 ) ( 11,912 ) Additional paid-in capital 319,010 312,874 Accumulated other comprehensive income 870 783 Accumulated deficit ( 204,139 ) ( 188,974 ) Total stockholders' equity 103,890 112,831 Total liabilities and stockholders' equity $ 238,039 $ 257,855 See accompanying notes to consolidated financial statements (unaudited). 4 Table of Contents CARPARTS.COM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHEN

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (In Thousands, Except Per Share Data) Note 1 – Basis of Presentation and Description of Company CarParts.com, Inc. (including its subsidiaries) is a leading online provider of aftermarket auto parts and accessories. The Company sells its products primarily to individual consumers through its flagship website located at www.carparts.com , our app, and online marketplaces. Our corporate website is also located at www.carparts.com/investor . References to the "Company," "we," "us," or "our" refer to CarParts.com, Inc. and its consolidated subsidiaries. The Company's products consist of replacement parts serving the wear and tear and body repair market, hard parts to serve the maintenance and repair market, and performance parts and accessories. The replacement parts category is primarily comprised of body parts for the exterior of an automobile as well as certain other mechanical or electrical parts that are not related to the functioning of the engine or drivetrain. Our parts in this category typically replace original body parts that have been damaged as a result of general wear and tear or a collision. In addition, we sell an extensive line of mirror products, including parts from our own house brand called Kool-Vue , which are marketed and sold as aftermarket replacement parts and as upgrades to existing parts. The hard parts category is primarily comprised of engine components and other mechanical and electrical parts including our house brand of catalytic converters called Evan Fischer . These hard parts serve as replacement parts that are generally used by professionals and do-it-yourselfers for engine and mechanical maintenance and repair. We also offer other parts and accessories (formerly referred to as performance parts and accessories), which includes certain performance versions of many parts sold in each of the above categories, including parts from our own house brand, JC Whitney . Other parts a

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