U.S. Auto Parts Network, Inc. (NASDAQ:PRTS)
U.S. Auto Parts Network, Inc. (NASDAQ:PRTS) has reported its financial results for the first quarter of 2017. U.S. Auto Parts Network is one of the leading suppliers of aftermarket automotive parts and accessories.
U.S. Auto Parts Network, Inc. (NASDAQ:PRTS) CEO, Aaron Coleman, stated that the company rebounded from February’s dismal sales performance to grow its revenue and maintain a profitable margin for the quarter. He added that the company carried no revolving debt and maintained a strong cash flow in line with the company’s objective in 2017. He said the company reported 24% growth in its sales and that this was the key driver behind the margin decrease in Q1.
U.S. Auto Parts Network, Inc. (NASDAQ:PRTS) reported $80.8 million in Q1 2017 net sales compared to $80.7 million that was reported in Q1 2016. The increase was attributed to the 24% growth in the company’s online sales totaling to $26.4 million. This was offset by soft February sales that resulted from unfavorable weather conditions as well as a delayed tax return.
Gross profits represented 29.4% of the net sales reported in Q1 of 2017 compared to 30.4% of the net sales reported in Q1 of 2016. The drop in gross margin results from lower-margins plus increased freight costs. The company has predicted a gross margin of between 29% and 30% going forward.
U.S. Auto Parts Network, Inc. (NASDAQ:PRTS) reported $22.6 million in operating expenses in Q1 of 2016, a figure similar to that reported in Q1 of 2016. Operating expenses represented 27.9% of the net sales reported in Q1 of 2017 compared to the 28% of the net sales reported in Q1 2016.
The company’s Q1 2017 net income amounted to $0.8 million or $0.02 per share compared to $1.5 million or $0.04 per share that was reported in Q1 2016. The company reported $4.0 million in adjusted EBITDA compared to the $4.3 million that was reported in Q1 of the previous financial year.
At the close of the quarter, the company had $7.2 million in cash and cash equivalents compared to the $2.7 million that the company had at the close of the last financial year.
U.S. Auto Parts Network, Inc. (NASDAQ:PRTS) has set a net income guidance of in the range of $4.8 to $7.8 million and adjusted EBITDA ranging from $15.0 to $18.0 million.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.