Entering text into the input field will update the search result below

CarParts.com, Inc.'s (PRTS) CEO Lev Peker on Q4 2020 Results - Earnings Call Transcript

SA Transcripts profile picture
SA Transcripts

CarParts.com, Inc. (NASDAQ:PRTS) Q4 2020 Earnings Conference Call March 8, 2021 5:00 PM ET

Company Participants

Lev Peker - Director, Chief Executive Officer

David Meniane - Chief Operating Officer, Chief Financial Officer

Conference Call Participants

Thomas Forte - D. A. Davidson

Darren Aftahi - ROTH Capital Partners

Ryan Sigdahl - Craig-Hallum Group

Scott Ciccarelli - RBC Capital Markets

Josh Goldberg - G2

Steven Connell - Diamond Head Financial


Ladies and gentlemen, thank you for standing by, and welcome to the CarParts.com Fourth Quarter 2020 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded. [Operator Instructions].

I would now like to hand the conference over to your first speaker today to Lev Peker, CEO. Thank you. Please go ahead.

Lev Peker

Thank you, operator. On behalf of the entire CarParts.com management team, we would like to start by thanking our 1,900-plus team members for their hard work, dedication and commitment to our mission of getting drivers back on the road.

As you can see in today’s release, in 2020, CarParts.com achieved record sales, gross profit and adjusted EBITDA in almost a decade. Before we turn to our quarterly results, I would like to take a moment to recap our journey over the last two years as well as introduce the vision and long-term goals for our company.

As many of know, almost the entire management team joined during 2019. Our company was facing numerous challenges, but what we had were amazing frontline team members, valuable trademarks, an extensive catalog, global vendor relationships and lots of historical customer data. We laid out our strategy of right parts, right time, right place and a mission of getting drivers back on the road.

Recommended For You

Comments (1)

SqueakyToy profile picture
The management team seems reasonably smart and fairly aggressive, and they paint a nice turnaround story.

Increasing speed to customer seems like the best way to build a customer experience that has a chance of withstanding the onslaught of competition from Amazon (who will likely employ price advantages to gain market share). Management says they're trying not to build capacity faster than they can generate sales, but I would guess it's imperative that CarParts needs to move as fast as possible here, if they want to build brand loyalty.

If there was a significant technical debt which needed to be mitigated, then the $6.4 million of software development could very well have been a wise investment as a balloon cost, but if it's expected to be an on-going budget item then it sounds excessive. It would be useful if analysts asked management for more color on this specific aspect of capital allocation.

I would think that to the degree that management might decide to shift more of the budget away from software development and into marketing, they might be able to more quickly generate the sales volume they're looking for as a signal to further invest in infrastructure which delivers the kind of brand experience that will generate customer loyalty needed to fend off Amazon and others.
To report an error in this transcript, .Contact us to add your company to our coverage or use transcripts in your business. Learn more about Seeking Alpha transcripts here. Your feedback matters to us!

About PRTS

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on PRTS

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.