CarParts.com Posts Third Straight Positive EBITDA Quarter, Narrows Loss to $4.1M
PRTS has more than doubled off its 52-week low of $3.724.
Summary
CarParts.com delivered its third consecutive quarter of positive Adjusted EBITDA at $1.0 million, versus a $2.5 million loss a year ago, and the highest third quarter since Q3 2023. Net sales rose 1.2% to $129.3 million while gross margin improved 30 basis points to 33.4% on lower freight costs. The net loss narrowed sharply to $4.1 million, or $0.53 per share, from $10.9 million, or $1.87 per share, as operating expenses fell to $47.0 million from $52.3 million on distribution center consolidation and headcount cuts. The A-Premium partnership crossed $50 million and exited the quarter at roughly a $55 million annualized run rate, and the new CarParts+ Rewards loyalty program has already enrolled more than 200,000 members. This follows the Q2 10-Q that first showed positive Adjusted EBITDA and operating cash flow, and comes after a multi-week stretch of insider buying by the CEO and COO in August and September. The company said its restructuring is largely complete and the next phase is about growth. Balance sheet shows $33.8 million of cash, no revolver borrowings, and $25.5 million of convertible notes outstanding.
At the time of this announcement, PRTS was trading at $8.68 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $70M. The 52-week trading range was $3.72 to $10.98. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: PR Newswire.