EX-99.1 2 brhc10021474_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 2021 Investor Presentation 
 

 Disclaimer  2  This presentation contains “forward-looking” statements, within the meaning of the federal securities laws, that are based on our management’s belief’s and assumptions and on information currently available to management. Forward-looking statements include information concerning our possible or assumed future results of operations, expected growth and business strategies, key operating metrics, financing plans, competitive position, industry environment, potential product offerings, potential market and growth opportunities and the anticipated outcome of any litigation.Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates,” “believes,” “could,” “seeks,” “estimates,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent our management’s beliefs and assumptions only as of the date of this presentation. These statements do not guarantee future performance and speak only as of the date hereof and qualify for the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933. We refer all of you to the disclosures contained in the CarParts.com, Inc Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission, including the risk factors set forth therein, for more detailed discussion on the factors that can cause actual results to differ materially from those projected in any forward-looking statements. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.This presentation includes certain non-GAAP financial measures as defined by SEC rules. We have provided a reconciliation of those measures to the most directly comparable GAAP measures in this presentation, where applicable, as well as in the appendix to this presentation. We have not included a reconciliation of Adjusted EBITDA guidance to projected net income (loss) due to the high variability and difficulty in making accurate long-term forecasts and projections of our net operating loss carryforwards, which have a significant impact on future net income (loss). As a result, we are unable to quantify projected net income without unreasonable efforts.This presentation also contains estimates and other statistical data made by independent parties and by the Company relating to market size and growth and other data about the Company’s industry and estimated total addressable market. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Neither the Company nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to update such data after the date of this presentation. In addition, projections, assumptions, and estimates of our future performance and the future performance of the markets in which the Company operates are necessarily subject to a high degree of uncertainty and risk. All third-party trademarks, including names, logos and brands, referenced by the Company in this presentation are property of their respective owners. All references to third-party trademarks are for identification purposes only and shall be considered nominative fair use under trademark law.This presentation also includes certain preliminary unaudited financial and operating results of the Company for the year ended January 2, 2021. These preliminary results represent the Company's estimates, which are based only on currently available information and do not present all necessary information for an understanding of the Company's financial condition as of January 2, 2021 or results of operations for the year ended January 2, 2021. Undue reliance should not be placed on these preliminary estimates. 
 

     01 BACKGROUND    02  INDUSTRY LANDSCAPE    03 THE CARPARTS.COM SOLUTION    04 FINANCIALS & GROWTH  3 
 

 4 
 

 THE AUTO PARTS INDUSTRY IS EXPANDINGCars are Lasting Longer & Driving Further      total addressable market cars on the road avg. age of cars on roadWE ARE ALIGNING TO THESE DEMANDS  Source: 2021 AutoCare Association Factbook  5 
 

 MISSION  Changing the way people repair their cars, and getting them back on the road    6 
 

         Large TAM with very low online penetrationAuto parts industry overdue for disruptionProprietary shoppable catalogImproved customer experience with guaranteed fit2-step distribution modelLower prices than competitors by cutting out the middlemenCurated experienceReducing the paradox of choice for consumersStrong unit economicsProfitable after COGS, CAC, and fulfillmentEarly inningsContinued growth expected via market penetration and adjacent services  Investment Highlights    7 
 


   Significant Milestones    FoundedU.S. Auto Parts1Umbrella company to more than a dozen brands    1995    LaunchedFirst eCommerce site    2000    IPONASDAQ: PRTS    2007    AcquiredJC WhitneyIncluding their parts catalog, warehouse, etc.    2010    New CEOLev PekerManagement team refresh with new vision    2019  8  1. Name changed to CarParts.com, Inc in 2020 


     Major Transformation  in the Last 24 Months  v  New executive team with industry eterans and technical experts  Fa  ormed marketing, data science, technology, nd inventory forecasting teams  f  Pl            2019-PRESENT  s  Doubled distribution center footprint to nearly 1 million sq ftConsolidated 17 websites into 1 flagship ite and renamed companyOverhauled our website with a new mobile riendly and personalized user experienceaid off all outstanding debt and trade etters of credit      9 
 

 Trusted & Experienced Team  10  Sanjiv GomesCHIEF TECHNOLOGY OFFICER  Houman AkhavanCHIEF MARKETING OFFICER  Dave MorrisCHIEF MERCHANDISING OFFICER  David KearVICE PRESIDENT, WAREHOUSE OPERATIONS  Ryan LockwoodSENIOR VICE PRESIDENT, FINANCE  David MenianeCHIEF OPERATING OFFICER & CHIEF FINANCIAL OFFICER  Lev PekerCHIEF EXECUTIVE OFFICER        OPERATIONAL EXCELLE  NCE FINANCIAL DISCIPLINE  EXTREME OWNERSHIP  OUR CULTURE   
 

             liquidity 1  revenue  YoY revenue growth  visits in 2020  Stable, Growing & Profitable  THE FASTEST GROWING RETAILER IN THE INDUSTRY3  gross profit margin  revenue from return customers 2  Our Credit Agreement provides for an option to increase the aggregate principal amount from $30,000 to $40,000, subject to lender approval.At a one-year lookbackSource: Auto Care Week, based on YOY net sales growth  11 
 

 12 
 

 auto parts industry online penetration 2    One of the Last Industries to be Disrupted by eCommerce  overall eCommerce online penetration 1      INDUSTRY LANDSCAPE  ECOMMERCE PENETRATION  DigitalCommerce360 – 02/19/2021 - Includes pet food, furniture, electronics, online travel2021 AutoCare Association Factbook Estimates  13 
 

         Do-It-For-Me (DIFM) CustomersProfessional mechanic installs partsTrusts the mechanic to pick the partLess brand sensitiveLess price sensitive            GUARANTEEDFIT  COMPETITIVEPRICING  HIGH-QUALITYPARTS  FASTSOLUTIONS  Do-It-Yourself (DIY) Customers  Work on their own carStrained by the paradox of choice.Will it fit? Is this the best price & quality?Hope that parts are exactly what they needMore price sensitive  CUSTOMER NEEDS  INDUSTRY LANDSCAPE  14 
 

                                             A Clear Competitive Advantage  Pricing Shipping Distribution GQuality e Customer Tailored foruarante Service Auto Industry  Dropship Unpredictable Unpredictable Third party No help choosingdistributors correct parts  Marketplaces  Haggle/bid  for pricing  Slow &  unpredictable shipping  Third party  distributors  No help choosing  correct parts  Brick-and-Mortar  Very high due to overhead & channel conflict  Buy online, pick up in-store focus  Retail  Good in-store customer service          Competitive  Fast & reliable  Integrated supply chain  500 agents, live chat, email, phone            15 
 

         2-Step Distribution Advantage    Manufacturerto CarParts.com+40% Cost $100    CarParts.comto customer+50% Price $150    Distributorto retailer+25% Cost $188    Manufacturerto brand+40% Cost $100    Brandto distributor+50% Cost $150                          Retailerto customer+50% Price $281    Other companies1  16  1. For illustrative purposes only, markup varies 
 

 Real World Price Advantage  Traditional B&M  Less steps Less markups Lower price    17 
 

   Accelerated Shifts in Consumer Behavior  CarParts.com provides a digital, convenient way to buy car parts      Customers are prioritizing convenience & price transparency      Customers are expecting personalized digital experiences      An industry shift from offlineto online      Shift to DIY & increase in personal mobility  18 
 

     19 
 

 The Best of Everything With No Paradox of Choice  t e    t g    Guaranteed fi & low pricFas shippinCompany owned brand  -s    s  Curated election    (  Ultra fast websitemobile optimized)    2(  -step distributionfactory to car)    20 
 

         CarParts.com Core Competencies  Marketing& Data Science  Technology Stack  Proprietary Catalog  Integrated  Supply Chain  Customer  Service Team  Customer  Experience  21 
 

                       Vehicledata  Personal, demographic& device data  Onsite transactional data  Real-time user signals  Offline engagement data  Website  Email  Paid Ads  SMS  Social  Customer profiling Predictive intelligence Machine learning  Marketing & Data Science  Inventory    22 
 

                   LongBow• Proprietary catalog• 2 Million man-hours    Custom-Built Technology Stack  THE CARPARTS.COM SOLUTION  Order management systemVending logic optimization  Manager  AssortmentGeographic demand  Inventory Forecasting  Warehouse managementResource scheduling  HighJump  GAIA  Container consolidationInbound logistics  Machine Learning  Labor planning  Dynamic pricingFreight optimization  Data Lake  Multi-source databaseReal-time analytics•                  23 
 

   Proprietary Catalog  THE CARPARTS.COM SOLUTION  Headlights Side mirrors  Tail lights Bumpers    Wheel hub      Bumper cover  Headlight    Side Mirrors    Control arm          ASSORTMENT BASED ON FAILURE RATES AND VEHICLES IN OPERATION  Replacement Parts  Hard Parts  Performance & Accessories  Brake discs & pads Shocks & struts  24  Wheel hubs Control arms  Tonneau cover Fender flare  Off-road bumper Receiver hitch 
 

 Our House Brands            Est. 2021Brakes & Rotors  25  Est. 2020Suspension & Ride Control  Est. 2020Automotive Electronics  Est. 2020Pumps, Compressors, & Mechanical Parts  Est. 2009Mirrors  Est. 1915Performance & Accessories 
 

           NETWORK OPTIMIZEDfor multi-order shipments in one consolidated package  DATA ANALYTICSto reduce shipping costs  BOX ON DEMANDto make a box the exact size of the part being shipped  OPTIMIZATIONability to pick, pack, and ship odd-shaped / bulky / oversized itemsand sheet metals  global employees  warehouse square footage  distribution centers  Targeted forplanned expansion      Grand Prairie, TX    Las Vegas, NV    linois linois    Peru, IlLa Salle, IlChesapeake, VA    Torrance, CA(headquarters)  Integrated Supply ChainCOMPANY-OPERATED DISTRIBUTION NETWORK  26 
 

     First Class Customer ServiceOVER 500 TEAM MEMBERS  THE CARPARTS.COM SOLUTION  chat response time  increase to customer service employee team  email response time  sales phone response time  service phone response time  CRM INVESTMENTS TO CREATE BETTER CUSTOMER ENGAGEMENT  for agent k  nowled  ge & co  mmuni  cation1  27  1. Source: Bizrate.com as of 03/06/21Median response times based on trailing 4 weeks 
 

   overall rating  Delivering Superior Customer Experience  THE CARPARTS.COM SOLUTION  Source: Bizrate.com as of 03/06/21    I was lookCarParts  reviewsing for a part for my car and could only find it on.com. It only took about 2 minutes to complete the order…      All I had to do was type in what vehicle I have, and I found the part I was looking for in less than 30 seconds...    28 
 

     Simple & Seamless Online Experience  Solving the customer's problem from any deviceIntuitive platform with over 800,000+ SKUs available onlineValue propositions that countQuality, speed, convenience and competitive pricingReal-time personalized experienceRemoving the paradox of choice by providing a proprietary and highly curated catalogSeamless transactionGet the parts, tools and resources you need without leaving your device    29 
 

 30 
 

   The Shift to EV Today      of our current sales are agnostic to the powertrain  31 
 

   Electric vs. Gas-Powered VehiclesNOT AS DIFFERENT AS YOU MIGHT THINK  Replacement Parts  Similarities  Differences  Electric vehicles  Gasoline cars    Body parts  32  Hard Parts 
 

   TOMORROW  TODAY  | 33    Preventive Maintenance  Repair & Installation  Diagnostics 
 

   34  Stable Balance Sheet  1. Our Credit Agreement provides for an option to increase the aggregate principal amount from$30,000 to $40,000, subject to lender approval  cash  asset-based lending availability1  revolver debt  inventory 
 

                         Long Term Financial Targets  FINANCIALS & GROWTH  2019  2020  Long Term Target  Source  Gross Margin After Freight  30.0%  35%  36 - 37%  Product mix, channel mix, closer to customer  Marketing & Customer Service 1  14.8%  15 - 17%  13 - 15%  Retention marketing, direct to site, brand awareness  Other Operating  Operating leverage,  Expenses 2 13.7% 15 - 16% 12 - 13% efficiencies, scalein headcount    Adjusted EBITDA Margin  1.6%  3.6%  8 - 10%  Above combined  35  Excludes certain other items including stock-based compensation, depreciation, and amortizationTechnology, fulfillment and other SG&A 
 

 I R @ C A R P A R T S . C O M    C A R P A R T S . C O M / I N V E S T O R 
 

 Appendix 
 

 Consolidated Income Statement  38 
 

 Consolidated Balance Sheets  39 
 

 Adjusted EBITDA Reconciliation  40