Q3 profits up, sales down for U.S. Auto Parts
E-commerce sales for U.S. Auto Parts Network Inc. declined slightly in the third quarter, but the company is reporting higher profits.
In Q3 U.S. Auto Parts, No. 81 in the Internet Retailer Top 500 Guide, reported net income of $900,000 on revenue of $37.8 million vs. net income of $200,000 on sales of $38.3 million in the prior year. The number of total orders declined by 9.7% to 243,000 from 269,000, but the average order rose by 8.1% to $120 from $111.
“The higher profitability achieved in the third quarter reflects the benefits of several initiatives implemented in the first nine months of the year including pricing strategy optimization, increasing efficiency on paid search and a new distribution capability in Tennessee,” says chief financial officer Michael McClane. “As we look to accelerate growth in 2008, we expect the accomplishments delivered during 2007 will provide a strong foundation of support.”
For the third quarter, U.S. Auto Parts also reported slightly higher general and administrative expenses, but less spending on marketing. General and administrative spending was $3.2 million, or 8% of net sales, compared with $2.8 million – 7% of net sales – in the prior year. Marketing spending was $2.4 million, or 6% of net sales, in the recent quarter vs. $3.2 million – 8% of net sales - in Q3 of 2006. Q3 capital expenditures totaled $1.4 million, including $600,000 for internally designed software and web site development costs.
“During the third quarter, U.S. Auto Parts demonstrated the ability to drive profitability, says CEO Shane Evangelist, who recently joined the company from Blockbuster Inc.
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