U.s. Auto Parts Network Inc. has a market cap of $255.3 million; its shares were traded at around $8.41 with a P/E ratio of 49.5 and P/S ratio of 1.4. PRTS is in the portfolios of Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
Highlight of Business Operations:The Company reported net sales for the third quarter ended October 2, 2010 (Q3 2010) of $72.3 million compared with the net sales for the third quarter ended October 3, 2009 (Q3 2009) of $47.0 million. Excluding $13.6 million of revenues from the acquisition of WAG, net sales were $58.7 million, an increase of 25% over Q3 2009 net sales. Q3 2010 net loss was $13.0 million or $0.43 per share, compared with Q3 2009 net income of $0.8 million or $0.03 per diluted share. Q3 2010s net loss includes a deferred tax assets of $11.4 million or $0.38 per share and a net loss of $2.9 million or $0.10 per diluted share related to WAG of which $1.6 million of the loss net of tax was attributable to restructuring and acquisition expenses. Q3 2010 net loss also includes $0.3 million net of tax for legal fees associated with intellectual property litigation compared with $0.2 million net of tax for Q3 2009. The Company generated Adjusted EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization and plus current years stock compensation expense, legal costs to enforce intellectual property rights, restructuring and acquisition expenses, and charge for change in revenue recognition) of $4.1 million for Q3 2010 compared to $3.7 million for Q3 2009. Excluding WAGs Adjusted EBITDA loss of $0.1 million, Adjusted EBITDA was $4.2 million for Q3 2010, an increase of 14% over Q3 2009. Adjusted EBITDA is presented because such measure is used by rating agencies, securities analysis, investors and other parties in evaluating the Company. It should not be considered, however, as an alternative to operating income as an indicator of the Companys operating performance or as an alternative to cash flows as measures of the Companys overall liquidity as presented in the Companys consolidated financial statements. Furthermore, Adjusted EBITDA measure shown for the Company may not be comparable to similarly titled measures used by other companies.
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