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U.S. Auto Parts Network Inc. Reports Operating Results (10-Q)

May 12, 2010 | About:
10qk

10qk

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U.S. Auto Parts Network Inc. (PRTS) filed Quarterly Report for the period ended 2010-04-03.

U.s. Auto Parts Network Inc. has a market cap of $263.4 million; its shares were traded at around $8.79 with a P/E ratio of 73.3 and P/S ratio of 1.5. PRTS is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

E-commerce net sales increased $11.3 million or 36.8% to $42.0 million from $30.7 million for the thirteen weeks ended April 3, 2010 and April 4, 2009, respectively. The total number of placed orders in our e-commerce channel increased to 423,000 orders for the thirteen weeks ended April 3, 2010 from 316,000 orders for the thirteen weeks ended April 4, 2009 primarily due to an increase in visitors, a higher conversion rate and an increase in revenue capture, which is the amount of actual dollars retained after taking into consideration credit card declines, returns, and product fulfillment. Excluding the three additional days from the first quarter of last year, the e-commerce net sales year over year increase would have been $12.3 million or 41.3%.

Online marketplace net sales increased $3.8 million or 75.2% to $8.8 million for the thirteen weeks ended April 3, 2010 from $5.0 million for the thirteen weeks ended April 4, 2009. The increase was primarily due to higher traffic and more auctions listed. Excluding the three additional days from last year, the online marketplace net sales year over year increase would have been $4.0 million or 83.3%.

We had cash and cash equivalents of $25.0 million as of April 3, 2010, representing a $1.2 million decrease from $26.2 million of liquid assets as of January 2, 2010. The decrease in our cash and cash equivalents as of April 3, 2010 was primarily due to investments in property and equipment, purchases of marketable securities, and cash paid for intangible assets, which was offset in part from cash generated from operations in the current period.

We generated $6.8 million of net cash from operating activities for the thirteen weeks ended April 3, 2010. The significant components of cash flows from operating activities were net income of $1.5 million, $2.1 million in non-cash depreciation and amortization expense; $0.9 million of non-cash share-based compensation expense; and an increase of $1.8 million in accounts payable and accrued expense.

Cash used in investing activities for the thirteen weeks ended April 3, 2010 totaled $8.7 million, of which $3.5 million was related to purchases of property and equipment related to technology investments to improve our websites, operating systems, proprietary back-end platforms and our asset acquisitions. Additionally, $5.3 million in purchases of short-term investments were partially offset by $0.1 million of redemptions of our ARPS.

We are consolidating our offices in the Philippines into one office for operational efficiency in the first half of 2010, although we have an ongoing partial lease obligation through the third quarter of 2010. We expect to spend $1.5 million in capital improvements to build out the new facility. We will also continue our technology investments in an effort to improve our websites, operating systems, and proprietary backend platforms. However, the level of investment is expected to decline to $5.0 to $6.0 million annually.

Read the The complete Report

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10qk
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