10/30/09

Sales and profits increase for U.S. Auto Parts Network in Q3

U.S. Auto Parts Network Inc. showed across-the-board financial improvement in the third quarter. Sales increased 28.4% and the company swung year over year from a net loss to net income of $781,000.

U.S. Auto Parts Network Inc. showed across-the-board financial improvement in the third quarter.

For the quarter ended Oct. 3, U.S. Auto Parts Network, No. 102 in the Internet Retailer Top 500 Guide, reported:

• Sales increased 28.4% to $47.0 million from $36.6 million.
• Net income was $781,000 compared with a net loss of $491,000 in the third quarter of 2008.
• The average conversion rate increased year over year to 1.43% from 1.26%.
• The number of orders processed grew 32.6% to 386,000 from 291,000.
• Spending on marketing increased 21.2% to $6.3 million from $5.2 million.
• Spending on technology increased 26.1% to $2.9 million from $2.3 million.
• Spending on fulfillment increased 10% to $1.1 million from $1.0 million.

“We are pleased that the company returned to year-over-year double-digit growth and even more excited that sales in our seasonally weak third quarter exceeded sales for the second quarter, which is typically our seasonally strongest quarter," says CEO Shane Evangelist. "More significantly, adjusted EBITDA for the quarter exceeded $3 million for the third consecutive quarter. These results were driven by both an increase in conversion and unique visitors." EBITDA stands for earnings before interest, tax, depreciation and amortization.

For the first three quarters, U.S. Auto Parts Network reported:

• Sales increased 9% to $130.5 million from $119.7 million.
• Net income was $731,000 compared with a net loss of $13.4 million in the prior year.