CarParts.com Inc. Chief Executive David Meniane credits his company’s record fourth-quarter and full-year revenue to two main things: investments in logistics and the consolidation of its two websites into one, CarParts.com.
“At the same time, we’ve invested in a lot of tools around data science, artificial intelligence, and inventory forecasting that allowed us to really navigate the difficult environment over the last three years,” Meniane said. “That is why we had a record fourth quarter and a record year. The credit goes to the team and its execution on the fundamentals of our business, which is to sell auto parts direct to consumers.”
The Torrance-based company was founded in 1997 and went public on the Nasdaq in 2007. It has a global workforce of 1,500 employees.
Earlier this month, the company reported a net loss of $6.2 million (-11 cents a share) for the quarter ending Dec. 31, compared to a net loss of $5 million (-10 cents) in the same period of the previous year.
Revenue increased 12% from the fourth quarter of the prior year to $155 million.
Meniane attributed the net loss to non-cash charges including depreciation.
But if one looks at adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the full year, the company reported $26 million and it was free cash-flow positive, Meniane said.
“As a company we are profitable in generating free cash flow and we are also virtually debt free, which is a big improvement from a few years ago,” he said.
The company’s stock price has fluctuated greatly, according to Meniane, who said he has seen it as low as 97 cents and as high as $23 over the past four years.
He joined CarParts.com as chief operating officer four years ago and was promoted to chief executive in April of last year.
The company’s share price has decreased by 12% since Jan. 3, when the stock closed at $6.26, and March 16, when it closed at $5.53.
Meniane said he was a “little bit disappointed” in the current share price, considering how far the company has come in four years.
“But what we are doing right now is focusing on executing the business, and we think the stock price will eventually reveal the true value of the business,” he said. “I’d want it to be in high double digits right now, but the market says differently.”
During the third quarter, the company launched a so-called Get It Installed initiative.
“It’s where we allow the customer to be connected with a shop so that they can take the parts they buy from our website and get someone to help them with their repairs,” Meniane said.
