CarParts.com (PRTS) 10-Q 6 Aug 21 2021 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 03, 2021	Aug. 02, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jul. 3, 2021
Entity File Number	001-33264
Entity Registrant Name	CARPARTS.COM, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	68-0623433
Entity Address, Address Line One	2050 W. 190th Street
Entity Address, Address Line Two	Suite 400
Entity Address, City or Town	Torrance
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90504
City Area Code	424
Local Phone Number	702-1455
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	PRTS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Smaller Reporting Company	false
Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		52,216,472
Current Fiscal Year End Date	--01-01
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001378950
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jul. 03, 2021	Jan. 02, 2021
Current assets:
Cash and cash equivalents	$ 33,149	$ 35,802
Accounts receivable, net	6,994	6,318
Inventory	113,964	89,316
Other current assets	6,401	7,939
Total current assets	160,508	139,375
Property and equipment, net	17,602	14,742
Right-of-use - assets - operating leases, net	15,889	17,507
Right-of-use - assets - finance leases, net	14,890	12,457
Other non-current assets	2,278	2,892
Total assets	211,167	186,973
Current liabilities:
Accounts payable	60,741	45,302
Accrued expenses	15,814	18,190
Customer deposits	400	630
Right-of-use - obligation - operating, current	2,729	2,527
Right-of-use - obligation - finance, current	2,255	1,583
Other current liabilities	4,018	3,747
Total current liabilities	85,957	71,979
Right-of-use - obligation - operating, non-current	14,359	16,046
Right-of-use - obligation - finance, non-current	13,005	11,428
Other non-current liabilities	3,826	4,031
Total liabilities	117,147	103,484
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value; 100,000 shares authorized; 52,184 and 48,091 shares issued and outstanding as of July 3, 2021 and January 2, 2021 (of which 2,525 are treasury stock)	55	51
Treasury stock	(7,146)	(7,146)
Additional paid-in capital	271,334	260,260
Accumulated other comprehensive loss	(112)	(215)
Accumulated deficit	(170,111)	(169,461)
Total stockholders' equity	94,020	83,489
Total liabilities and stockholders' equity	$ 211,167	$ 186,973

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Jul. 03, 2021	Jan. 02, 2021
CONSOLIDATED BALANCE SHEETS (Unaudited)
Common stock, par value (in USD per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	100,000	100,000
Common stock, shares issued (in shares)	52,184	48,091
Common stock, shares outstanding (in shares)	52,184	48,091
Treasury stock (in shares)	2,525	2,525

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS (Unaudited)
Net sales		$ 157,536	$ 118,930	$ 302,338	$ 206,748
Cost of sales (1)	[1]	104,187	78,101	199,815	136,140
Gross profit		53,349	40,829	102,523	70,608
Operating expenses
Operating expense		51,013	38,653	102,685	68,785
Income (loss) from operations		2,336	2,176	(162)	1,823
Other income (expense):
Other, net		116	3	197	74
Interest expense		(267)	(493)	(517)	(1,153)
Total other expense, net		(151)	(490)	(320)	(1,079)
Income (loss) before income taxes		2,185	1,686	(482)	744
Income tax provision		113	118	168	154
Net income (loss)		2,072	1,568	(650)	590
Other comprehensive gain (loss):
Foreign currency translation adjustments		16	(29)	30	(35)
Unrealized gain (loss) on deferred compensation trust assets		38	58	73	(37)
Total other comprehensive gain (loss)		54	29	103	(72)
Comprehensive income (loss)		$ 2,126	$ 1,597	$ (547)	$ 518
Net income (loss) per share:
Basic net income (loss) per share		$ 0.04	$ 0.04	$ (0.01)	$ 0.01
Diluted net income (loss) income per share		$ 0.04	$ 0.03	$ (0.01)	$ 0.01
Weighted-average common shares outstanding:
Shares used in computation of basic net income (loss) per share		51,684	39,386	50,222	38,124
Shares used in computation of diluted net income (loss) per share		57,122	47,329	50,222	42,058
[1]	Excludes depreciation and amortization expense which is included in operating expense.

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Preferred Stock	Common Stock	Additional Paid-in- Capital	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total
Beginning balance (in shares) at Dec. 28, 2019	2,771	36,167
Beginning balance at Dec. 28, 2019	$ 3	$ 38	$ 187,147	$ (7,146)	$ 214	$ (167,876)	$ 12,380
Increase (Decrease) in Stockholders' Equity
Net income (loss)						(978)	(978)
Issuance of shares in connection with stock option exercise		$ 1	1,119				1,120
Issuance of shares in connection with stock option exercise (in shares)		523
Issuance of shares in connection with restricted stock units vesting		$ 2	(86)				(84)
Issuance of shares in connection with restricted stock units vesting (in shares)		1,809
Issuance of shares in connection with BOD Fees			6				6
Issuance of shares in connection with BOD Fees (in shares)		3
Share-based compensation			2,819				2,819
Common stock dividend on preferred stock			38			(39)	(1)
Common stock dividend on preferred stock (in shares)		20
Conversion of preferred stock (in shares)	(150)	150
Unrealized (loss) gain on deferred compensation trust assets					(95)		(95)
Effect of changes in foreign currencies					(6)		(6)
Ending balance (in shares) at Mar. 28, 2020	2,621	38,672
Ending balance at Mar. 28, 2020	$ 3	$ 41	191,043	(7,146)	113	(168,893)	15,161
Beginning balance (in shares) at Dec. 28, 2019	2,771	36,167
Beginning balance at Dec. 28, 2019	$ 3	$ 38	187,147	(7,146)	214	(167,876)	12,380
Increase (Decrease) in Stockholders' Equity
Net income (loss)							590
Ending balance (in shares) at Jun. 27, 2020		42,411
Ending balance at Jun. 27, 2020		$ 45	194,693	(7,146)	142	(167,358)	20,376
Beginning balance (in shares) at Mar. 28, 2020	2,621	38,672
Beginning balance at Mar. 28, 2020	$ 3	$ 41	191,043	(7,146)	113	(168,893)	15,161
Increase (Decrease) in Stockholders' Equity
Net income (loss)						1,568	1,568
Issuance of shares in connection with stock option exercise		$ 1	1,772				1,773
Issuance of shares in connection with stock option exercise (in shares)		907
Issuance of shares in connection with restricted stock units vesting			(2)				(2)
Issuance of shares in connection with restricted stock units vesting (in shares)		183
Issuance of shares in connection with BOD Fees			6				6
Issuance of shares in connection with BOD Fees (in shares)		3
Share-based compensation			1,874				1,874
Common stock dividend on preferred stock						(33)	(33)
Common stock dividend on preferred stock (in shares)		25
Conversion of preferred stock	$ (3)	$ 3
Conversion of preferred stock (in shares)	(2,621)	2,621
Unrealized (loss) gain on deferred compensation trust assets					58		58
Effect of changes in foreign currencies					(29)		(29)
Ending balance (in shares) at Jun. 27, 2020		42,411
Ending balance at Jun. 27, 2020		$ 45	194,693	(7,146)	142	(167,358)	20,376
Beginning balance (in shares) at Jan. 02, 2021	0	48,091
Beginning balance at Jan. 02, 2021	$ 0	$ 51	260,260	(7,146)	(215)	(169,461)	83,489
Increase (Decrease) in Stockholders' Equity
Net income (loss)						(2,722)	(2,722)
Issuance of shares in connection with stock option exercise			163				163
Issuance of shares in connection with stock option exercise (in shares)		130
Issuance of shares in connection with restricted stock units vesting		$ 2	(6)				(4)
Issuance of shares in connection with restricted stock units vesting (in shares)		2,382
Issuance of shares in connection with BOD Fees			6				6
Share-based compensation			4,080				4,080
Unrealized (loss) gain on deferred compensation trust assets					35		35
Effect of changes in foreign currencies					14		14
Ending balance (in shares) at Apr. 03, 2021		50,603
Ending balance at Apr. 03, 2021		$ 53	264,503	(7,146)	(166)	(172,183)	85,061
Beginning balance (in shares) at Jan. 02, 2021	0	48,091
Beginning balance at Jan. 02, 2021	$ 0	$ 51	260,260	(7,146)	(215)	(169,461)	83,489
Increase (Decrease) in Stockholders' Equity
Net income (loss)							$ (650)
Issuance of shares in connection with stock option exercise (in shares)							1,593
Ending balance (in shares) at Jul. 03, 2021		52,184
Ending balance at Jul. 03, 2021		$ 55	271,334	(7,146)	(112)	(170,111)	$ 94,020
Beginning balance (in shares) at Apr. 03, 2021		50,603
Beginning balance at Apr. 03, 2021		$ 53	264,503	(7,146)	(166)	(172,183)	85,061
Increase (Decrease) in Stockholders' Equity
Net income (loss)						2,072	2,072
Issuance of shares in connection with stock option exercise		$ 2	2,615				2,617
Issuance of shares in connection with stock option exercise (in shares)		1,463
Issuance of shares in connection with restricted stock units vesting			389				389
Issuance of shares in connection with restricted stock units vesting (in shares)		118
Issuance of shares in connection with BOD Fees			6				6
Share-based compensation			3,821				3,821
Unrealized (loss) gain on deferred compensation trust assets					38		38
Effect of changes in foreign currencies					16		16
Ending balance (in shares) at Jul. 03, 2021		52,184
Ending balance at Jul. 03, 2021		$ 55	$ 271,334	$ (7,146)	$ (112)	$ (170,111)	$ 94,020

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Operating activities
Net (loss) income	$ (650)	$ 590
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization expense	4,550	3,532
Amortization of intangible assets	55	50
Share-based compensation expense	7,272	4,385
Stock awards issued for non-employee director service	12	12
Loss from disposition of assets		1
Amortization of deferred financing costs	9	9
Changes in operating assets and liabilities:
Accounts receivable	(676)	(2,609)
Inventory	(24,649)	(12,883)
Other current assets	1,316	(1,597)
Other non-current assets	540	(296)
Accounts payable and accrued expenses	12,883	32,055
Other current liabilities	42	1,671
Right-of-use obligation - operating leases - current	430	483
Right-of-use obligation - operating leases - long-term	(76)	(383)
Other non-current liabilities	(77)	148
Net cash provided by operating activities	981	25,168
Investing activities
Additions to property and equipment	(5,398)	(3,840)
Net cash used in investing activities	(5,398)	(3,840)
Financing activities
Borrowings from revolving loan payable	90	1,273
Payments made on revolving loan payable	(90)	(1,273)
Proceeds from notes payable		4,107
Payments of notes payable		(5,333)
Payments on finance leases	(990)	(315)
Statutory tax withholding payment for share-based compensation	(3)	(85)
Proceeds from exercise of stock options	2,779	2,893
Net cash provided by financing activities	1,786	1,267
Effect of exchange rate changes on cash	(22)	(8)
Net change in cash and cash equivalents	(2,653)	22,587
Cash and cash equivalents, beginning of period	35,802	2,273
Cash and cash equivalents, end of period	33,149	24,860
Supplemental disclosure of non-cash investing and financing activities:
Right-of-use operating asset acquired	17	9,065
Right-of-use finance asset acquired	3,629	385
Accrued asset purchases	1,954	665
Share-based compensation expense capitalized in property and equipment	1,018	155
Stock issued for services	389
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes	65	90
Cash paid during the period for interest	$ 543	$ 1,125

Basis of Presentation and Descr

Basis of Presentation and Description of Company	6 Months Ended
	Jul. 03, 2021
Basis of Presentation and Description of Company
Basis of Presentation and Description of Company	Note 1 – Basis of Presentation and Description of Company CarParts.com, Inc. (including its subsidiaries) is a leading online provider of aftermarket auto parts and accessories. The Company sells its products primarily to individual consumers through its flagship website located at www.carparts.com www.carparts.com/investor The Company’s products consist of replacement parts serving the wear and tear and body repair market, hard parts to serve the maintenance and repair market, and performance parts and accessories. The replacement parts category is primarily comprised of body parts for the exterior of an automobile as well as certain other mechanical or electrical parts that are not related to the functioning of the engine or drivetrain. Our parts in this category typically replace original body parts that have been damaged as a result of general wear and tear or a collision. In addition, we sell an extensive line of mirror products, including parts from our own house brand called Kool-Vue ® ® ® The Company is a Delaware C corporation and is headquartered in Torrance, California. The Company has employees located in both the United States and the Philippines. Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to U.S. Securities and Exchange Commission (“SEC”) Form 10-Q and Article 10 of SEC Regulation S-X. In the opinion of management, the accompanying consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary to present fairly the consolidated financial position of the Company as of July 3, 2021 and the consolidated results of operations and cash flows for the thirteen and twenty-six weeks ended July 3, 2021 and June 27, 2020. The Company’s results for the interim periods are not necessarily indicative of the results that may be expected for any other interim period, or for the full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended January 2, 2021, which was filed with the SEC on March 16, 2021 and all our other periodic filings, including Current Reports on Form 8-K, filed with the SEC after the end of our 2020 fiscal year, and throughout the date of this report. During the thirteen and twenty-six weeks ended July 3, 2021, the Company generated net income of $2,072 and incurred a net loss of $650 , respectively, compared to net income of $1,568 and $590 , respectively, during the thirteen and twenty-six weeks ended June 27, 2020. Based on our current operating plan, we believe that our existing cash, cash equivalents, investments, cash flows from operations and available debt financing will be sufficient to finance our operational cash needs through at least the next twelve months.

Borrowings

Borrowings	6 Months Ended
	Jul. 03, 2021
Borrowings
Borrowings	Note 2 – Borrowings The Company maintains an asset-based revolving credit facility ("Credit Facility") that provides for, among other things, a revolving commitment in an aggregate principal amount of up to $30,000, which is subject to a borrowing base derived from certain receivables, inventory, and property and equipment. Our Credit Facility also provides for an option to increase the aggregate principal amount from $30,000 to $40,000 subject to lender approval. As of July 3, 2021, our outstanding revolving loan balance was $0. The outstanding standby letters of credit balance as of July 3, 2021 was $1,435, and we had $0 of our trade letters of credit outstanding in accounts payable in our consolidated balance sheet. Loans drawn under the Credit Facility bear interest, at the Company’s option, at a per annum rate equal to either (a) LIBOR plus an applicable margin of 1.25% to 1.75% per annum based on the Company's fixed charge coverage ratio, or (b) an “alternate prime base rate” subject to a reduction by 0.25% to 0.75% per annum based on the Company’s fixed charge coverage ratio. As of July 3, 2021, the Company’s LIBOR based interest rate was 1.38% (on $0 principal) and the Company’s prime based rate was 3.00% (on $0 principal). A commitment fee, based upon undrawn availability under the Credit Facility bearing interest at a rate of 0.25% per annum, is payable monthly. Under the terms of the credit agreement with JPMorgan Chase Bank (the "Credit Agreement"), cash receipts are deposited into a lock-box, which are at the Company’s discretion unless the “cash dominion period” is in effect, during which cash receipts will be used to reduce amounts owing under the Credit Agreement. The cash dominion period is triggered in an event of default or if excess availability is less than the $3,600 for three consecutive business days and will continue until, during the preceding 45 consecutive days, no event of default existed and excess availability has been greater than $3,600 at all times (with such trigger subject to adjustment based on the Company’s revolving commitment). In addition, in the event that “excess availability,” as defined under the Credit Agreement, is less than $3,000, the Company shall be required to maintain a minimum fixed charge coverage ratio of 1.0 to 1.0 (with the trigger subject to adjustment based on the Company’s revolving commitment). The Company’s excess availability was $25,764 as of July 3, 2021. The Credit Agreement requires us to obtain a prior written consent from JPMorgan Chase Bank when we determine to pay any dividends on or make any distribution with respect to our common stock. The Credit Facility matures on December 16, 2022.

Stockholders' Equity and Share-

Stockholders' Equity and Share-Based Compensation	6 Months Ended
	Jul. 03, 2021
Stockholders' Equity and Share-Based Compensation
Stockholders' Equity and Share-Based Compensation	Note 3 – Stockholders’ Equity and Share-Based Compensation Options and Restricted Stock Units The Company had the following common stock option activity during the twenty-six weeks ended July 3, 2021: ● Granted options to purchase 0 common shares. ● Exercise of 1,593 options to purchase common shares. ● Forfeiture of 39 options to purchase common shares. ● Expiration of 3 options to purchase common shares. The following table summarizes the Company’s restricted stock unit ("RSU") activity for the twenty-six weeks ended July 3, 2021, and details regarding the awards outstanding and exercisable as of July 3, 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ ​ ​ ​ ​ ​ Weighted ​ Remaining ​ ​ ​ ​ ​ ​ ​ Average ​ Contractual ​ Aggregate ​ Shares Exercise Price Term (in years) Intrinsic Value Vested and expected to vest as of January 2, 2021 ​ 3,143 $ — ​ ​ ​ ​ ​ Awarded ​ 2,517 $ — ​ ​ ​ ​ ​ Vested ​ (2,479) $ — ​ ​ ​ ​ ​ Forfeited ​ (14) $ — ​ ​ ​ ​ ​ Awards outstanding, July 3, 2021 ​ 3,167 $ — ​ 10.34 $ 60,454 Vested and expected to vest as of July 3, 2021 ​ 3,167 $ — ​ 10.34 $ 60,454 ​ During the twenty-six weeks ended July 3, 2021, 30 RSUs that vested were time-based and 2,449 were performance-based. For the thirteen and twenty-six weeks ended July 3, 2021, we recorded compensation costs related to stock options and RSUs of $4,210 and $8,290, respectively, of which $389 related to common shares issued to consultants as part of their compensation for services provided during the period. For the thirteen and twenty-six weeks ended June 27, 2020, we recorded compensation costs related to stock options and RSUs of $1,874 and $4,693, respectively. As of July 3, 2021, there was unrecognized compensation expense related to stock options and RSUs of $29,920 that will be expensed through June 2025.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	6 Months Ended
	Jul. 03, 2021
Net Income (Loss) Per Share
Net Income (Loss) Per Share	Note 4 – Net Income (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended Twenty-Six Weeks Ended ​ July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020 Net income (loss) per share: ​ ​ ​ ​ Numerator: ​ ​ ​ ​ Net income (loss) ​ $ 2,072 ​ $ 1,568 ​ ​ (650) ​ ​ 590 Dividends on Series A Convertible Preferred Stock ​ — ​ 33 ​ — ​ 71 Net income (loss) allocable to common shares ​ $ 2,072 ​ $ 1,535 ​ $ (650) ​ $ 519 Denominator: ​ ​ ​ ​ Weighted-average common shares outstanding (basic) ​ 51,684 ​ 39,386 ​ 50,222 ​ 38,124 Common equivalent shares from common stock options, restricted stock and preferred stock ​ 5,438 ​ 7,943 ​ — ​ 3,934 Weighted-average common shares outstanding (diluted) ​ 57,122 ​ 47,329 ​ 50,222 ​ 42,058 Basic net income (loss) per share ​ $ 0.04 ​ $ 0.04 ​ $ (0.01) ​ $ 0.01 Diluted net income (loss) per share ​ $ 0.04 ​ $ 0.03 ​ $ (0.01) ​ $ 0.01 ​ Options and RSUs that were antidilutive and not included in the dilutive earnings per share calculation amounted to 899 for the thirteen weeks ended July 3, 2021, and options, RSUs and/or preferred stock were antidilutive for the thirteen and twenty-six weeks ended June 27, 2020 amounted to 239 and 3,172, respectively. For the twenty-six weeks ended July 3, 2021, all outstanding potentially dilutive securities have been excluded from the calculation of diluted net loss per share as the effect of including such securities would have been anti-dilutive.

Income Taxes

Income Taxes	6 Months Ended
	Jul. 03, 2021
Income Taxes
Income Taxes	Note 5 – Income Taxes The Company is subject to U.S. federal income tax as well as income tax of foreign and state tax jurisdictions. The tax years 2016-2020 remain open to examination by the major taxing jurisdictions to which the Company is subject, except the Internal Revenue Service for which the tax years 2017-2020 remain open. For the thirteen and twenty-six weeks ended July 3, 2021, the effective tax rate for the Company was 5.2% and (34.9%), respectively. The effective tax rate differed from the U.S. federal statutory rate primarily due to state income taxes, income of our Philippines subsidiary that is subject to different effective tax rates, certain employee compensation, share-based compensation that is either not deductible for tax purposes or for which the tax deductible amount is different than the financial reporting amount, and a change in the valuation allowance that offset the tax or benefit on the current period pre-tax income (loss). For the thirteen and twenty-six weeks ended June 27, 2020, the effective tax rate for the Company was 7.0% and 20.7%, respectively. The effective tax rate differed from the U.S. federal statutory rate primarily due to state income taxes, income of our Philippines subsidiary that is subject to different effective tax rates, share-based compensation that is either not deductible for tax purposes or for which the tax deductible amount is different than the financial reporting amount, and a change in the valuation allowance that offset the tax of the current period pre-tax income. The Company accounts for income taxes in accordance with ASC Topic 740 - Income Taxes (“ASC 740”). Under the provisions of ASC 740, management is required to evaluate whether a valuation allowance should be established against its deferred tax assets. We currently have a full valuation allowance against our deferred tax assets. As of each reporting date, the Company’s management considers new evidence, both positive and negative, that could impact management’s view with regard to future realization of deferred tax assets. For the twenty-six weeks ended July 3, 2021, there was no material change from fiscal year ended January 2, 2021 in the amount of the Company's deferred tax assets that are not considered to be more likely than not to be realized in future years. On December 27, 2020, the Consolidated Appropriations Act (“CAA”) was enacted in further response to the COVID-19 pandemic, in combination with omnibus spending for the 2021 federal fiscal year. The CAA extended many of the provisions enacted by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which did not have a material impact on the Company’s consolidated financial statements for the thirteen and twenty-six weeks ended July 3, 2021. On March 11, 2021, the American Rescue Plan Act of 2021 ("ARPA") was enacted in still further response to the COVID-19 pandemic. The Company is evaluating the provisions of ARPA, but does not expect it to have a material impact on the Company's consolidated financial statements for the 2021 fiscal year.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 03, 2021
Commitments and Contingencies.
Commitments and Contingencies	Note 6 – Commitments and Contingencies Legal Matters Asbestos . Ordinary course litigation.

Product Information

Product Information	6 Months Ended
	Jul. 03, 2021
Product Information
Product Information	Note 7 – Product Information As described in Note 1 above, the Company’s products consist of replacement parts serving the wear and tear and body repair market, hard parts to serve the maintenance and repair market, and performance parts and accessories. The following table summarizes the approximate distribution of the Company’s revenue by product type. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended ​ Twenty-Six Weeks Ended ​ ​ ​ July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020 House Brands Replacement Parts 67 % 68 % 68 % 70 % Hard Parts 19 % 19 % 18 % 19 % Performance — % 1 % 1 % 1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Branded Replacement Parts 1 % 1 % 1 % 1 % Hard Parts 8 % 6 % 7 % 5 % Performance 5 % 5 % 5 % 4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total 100 % 100 % 100 % 100 % ​

Subsequent Event

Subsequent Event	6 Months Ended
	Jul. 03, 2021
Subsequent Event
Subsequent Event	Note 8 – Subsequent Event On July 27, 2021, the Company’s Board of Directors authorized a new stock repurchase program under which the Company may purchase up to $30 million of the Company’s common stock from time to time. The repurchases of common stock may be executed through open market purchases, block trades, the implementation of a 10b5-1 plan, and/or any other available methods. The amount and timing of repurchases will depend upon market conditions and other corporate considerations. The share repurchase program does not obligate the Company to acquire any particular amount of stock, and it may be terminated, modified, or suspended at any time at the Company’s discretion.

Basis of Presentation and Des_2

Basis of Presentation and Description of Company (Policies)	6 Months Ended
	Jul. 03, 2021
Basis of Presentation and Description of Company
Basis of Presentation	Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to U.S. Securities and Exchange Commission (“SEC”) Form 10-Q and Article 10 of SEC Regulation S-X. In the opinion of management, the accompanying consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary to present fairly the consolidated financial position of the Company as of July 3, 2021 and the consolidated results of operations and cash flows for the thirteen and twenty-six weeks ended July 3, 2021 and June 27, 2020. The Company’s results for the interim periods are not necessarily indicative of the results that may be expected for any other interim period, or for the full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended January 2, 2021, which was filed with the SEC on March 16, 2021 and all our other periodic filings, including Current Reports on Form 8-K, filed with the SEC after the end of our 2020 fiscal year, and throughout the date of this report. During the thirteen and twenty-six weeks ended July 3, 2021, the Company generated net income of $2,072 and incurred a net loss of $650 , respectively, compared to net income of $1,568 and $590 , respectively, during the thirteen and twenty-six weeks ended June 27, 2020. Based on our current operating plan, we believe that our existing cash, cash equivalents, investments, cash flows from operations and available debt financing will be sufficient to finance our operational cash needs through at least the next twelve months.

Stockholders' Equity and Shar_2

Stockholders' Equity and Share-Based Compensation (Tables)	6 Months Ended
	Jul. 03, 2021
Stockholders' Equity and Share-Based Compensation
Summary of Restricted Stock Unit Activity	The following table summarizes the Company’s restricted stock unit ("RSU") activity for the twenty-six weeks ended July 3, 2021, and details regarding the awards outstanding and exercisable as of July 3, 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ ​ ​ ​ ​ ​ Weighted ​ Remaining ​ ​ ​ ​ ​ ​ ​ Average ​ Contractual ​ Aggregate ​ Shares Exercise Price Term (in years) Intrinsic Value Vested and expected to vest as of January 2, 2021 ​ 3,143 $ — ​ ​ ​ ​ ​ Awarded ​ 2,517 $ — ​ ​ ​ ​ ​ Vested ​ (2,479) $ — ​ ​ ​ ​ ​ Forfeited ​ (14) $ — ​ ​ ​ ​ ​ Awards outstanding, July 3, 2021 ​ 3,167 $ — ​ 10.34 $ 60,454 Vested and expected to vest as of July 3, 2021 ​ 3,167 $ — ​ 10.34 $ 60,454

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jul. 03, 2021
Net Income (Loss) Per Share
Computation of Basic and Diluted Net Income (Loss) Per Share	The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended Twenty-Six Weeks Ended ​ July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020 Net income (loss) per share: ​ ​ ​ ​ Numerator: ​ ​ ​ ​ Net income (loss) ​ $ 2,072 ​ $ 1,568 ​ ​ (650) ​ ​ 590 Dividends on Series A Convertible Preferred Stock ​ — ​ 33 ​ — ​ 71 Net income (loss) allocable to common shares ​ $ 2,072 ​ $ 1,535 ​ $ (650) ​ $ 519 Denominator: ​ ​ ​ ​ Weighted-average common shares outstanding (basic) ​ 51,684 ​ 39,386 ​ 50,222 ​ 38,124 Common equivalent shares from common stock options, restricted stock and preferred stock ​ 5,438 ​ 7,943 ​ — ​ 3,934 Weighted-average common shares outstanding (diluted) ​ 57,122 ​ 47,329 ​ 50,222 ​ 42,058 Basic net income (loss) per share ​ $ 0.04 ​ $ 0.04 ​ $ (0.01) ​ $ 0.01 Diluted net income (loss) per share ​ $ 0.04 ​ $ 0.03 ​ $ (0.01) ​ $ 0.01

Product Information (Tables)

Product Information (Tables)	6 Months Ended
	Jul. 03, 2021
Product Information
Summary of Revenue by Product Type	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended ​ Twenty-Six Weeks Ended ​ ​ ​ July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020 House Brands Replacement Parts 67 % 68 % 68 % 70 % Hard Parts 19 % 19 % 18 % 19 % Performance — % 1 % 1 % 1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Branded Replacement Parts 1 % 1 % 1 % 1 % Hard Parts 8 % 6 % 7 % 5 % Performance 5 % 5 % 5 % 4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total 100 % 100 % 100 % 100 %

Basis of Presentation and Des_3

Basis of Presentation and Description of Company (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jul. 03, 2021	Apr. 03, 2021	Jun. 27, 2020	Mar. 28, 2020	Jul. 03, 2021	Jun. 27, 2020
Basis of Presentation and Description of Company
Net income (loss)	$ 2,072	$ (2,722)	$ 1,568	$ (978)	$ (650)	$ 590

Borrowings (Details)

Borrowings (Details)	6 Months Ended
	Jul. 03, 2021USD ($)
JP Morgan Chase Bank | Revolving Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 30,000,000
Increased aggregate borrowing capacity	40,000,000
Revolving loan payable	$ 0
Unused credit commitment fee (percent)	0.25%
Credit facility trigger amount	$ 3,600,000
Consecutive business days below minimum excess availability	3 days
Number of consecutive days excess availability is above required amount	45 days
Event of default amount	$ 0
Minimum availability required under availability block	$ 3,000,000
Minimum fixed charge ratio if less than minimum excess availability	1
Excess availability under credit facility	$ 25,764,000
JP Morgan Chase Bank | Letter of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	1,435,000
Outstanding letters of credit amount	$ 0
One-Month London Interbank Offered Rate (LIBOR) | Revolving Credit Facility
Line of Credit Facility [Line Items]
Applicable margin for LIBOR-based interest rate and applicable margin for alternate based rate (percent)	1.25%
Base Rate | Revolving Credit Facility
Line of Credit Facility [Line Items]
Applicable margin for LIBOR-based interest rate and applicable margin for alternate based rate (percent)	1.75%
Base Rate | JP Morgan Chase Bank | Revolving Credit Facility
Line of Credit Facility [Line Items]
Interest rate (percent)	3.00%
LIBOR based interest rate, principal amount	$ 0
London Interbank Offered Rate (LIBOR) | JP Morgan Chase Bank | Revolving Credit Facility
Line of Credit Facility [Line Items]
Interest rate (percent)	1.38%
LIBOR based interest rate, principal amount	$ 0
Prime rate | Revolving Credit Facility | Maximum
Line of Credit Facility [Line Items]
Applicable margin for LIBOR-based interest rate and applicable margin for alternate based rate (percent)	0.25%
Prime rate | Revolving Credit Facility | Minimum
Line of Credit Facility [Line Items]
Applicable margin for LIBOR-based interest rate and applicable margin for alternate based rate (percent)	0.75%

Stockholders' Equity and Shar_3

Stockholders' Equity and Share-Based Compensation - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)			0
Number of options exercised (in shares)			1,593
Number of stock options forfeited (in shares)			39
Number of stock options expired (in shares)			3
Time Based RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)			30
Performance based RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)			2,449
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)			2,479
Stock options and Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 4,210	$ 1,874	$ 8,290	$ 4,693
Unrecognized compensation expense	29,920		29,920
Stock options and Restricted stock units | Consultant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 389		$ 389

Stockholders' Equity and Shar_4

Stockholders' Equity and Share-Based Compensation - Summary of Restricted Stock Unit Activity (Details) shares in Thousands, $ in Thousands	6 Months Ended
	Jul. 03, 2021USD ($)shares
Restricted stock units
Shares
Vested and expected to vest as of January 2, 2021 (in shares)	3,143
Awarded (in shares)	2,517
Vested (in shares)	(2,479)
Forfeited (in shares)	(14)
Awards outstanding, July 3, 2021	3,167
Vested and expected to vest as of July 3, 2021 (in shares)	3,167
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Awards outstanding, weighted average remaining contractual term (in years)	10 years 4 months 2 days
Vested and expected to vest, weighted average remaining contractual term (in years	10 years 4 months 2 days
Awards outstanding, Aggregate Intrinsic Value | $	$ 60,454
Vested and expected to vest, Aggregate Intrinsic Value | $	$ 60,454
Time Based RSU
Shares
Vested (in shares)	(30)
Performance based RSU
Shares
Vested (in shares)	(2,449)

Net Income (Loss) Per Share - C

Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Numerator:
Net income (loss)	$ 2,072	$ 1,568	$ (650)	$ 590
Dividends on Series A Convertible Preferred Stock		33		71
Net income (loss) allocable to common shares	$ 2,072	$ 1,535	$ (650)	$ 519
Denominator:
Weighted-average common shares outstanding (basic)	51,684	39,386	50,222	38,124
Common equivalent shares from common stock options, restricted stock and preferred stock	5,438	7,943		3,934
Weighted-average common shares outstanding (diluted)	57,122	47,329	50,222	42,058
Basic net income (loss) per share	$ 0.04	$ 0.04	$ (0.01)	$ 0.01
Diluted net income (loss) income per share	$ 0.04	$ 0.03	$ (0.01)	$ 0.01

Net Income (Loss) Per Share - A

Net Income (Loss) Per Share - Anti-Dilutive Securities Excluded from Calculation of Diluted Earnings Per Share (Detail) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jun. 27, 2020
Net Income (Loss) Per Share
Anti-dilutive securities excluded from calculation of diluted earnings per share (in shares)	899	239	3,172

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Income Taxes
Effective tax rate	5.20%	7.00%	(34.90%)	20.70%

Product Information (Details)

Product Information (Details) - Sales Revenue, Product Line - Product Concentration Risk	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Product Information
Concentration risk percentage	100.00%	100.00%	100.00%	100.00%
House Brands, Replacement parts
Product Information
Concentration risk percentage	67.00%	68.00%	68.00%	70.00%
House Brands, Hard parts
Product Information
Concentration risk percentage	19.00%	19.00%	18.00%	19.00%
House Brands, Performance
Product Information
Concentration risk percentage		1.00%	1.00%	1.00%
Branded, Replacement parts
Product Information
Concentration risk percentage	1.00%	1.00%	1.00%	1.00%
Branded, Hard parts
Product Information
Concentration risk percentage	8.00%	6.00%	7.00%	5.00%
Branded, Performance
Product Information
Concentration risk percentage	5.00%	5.00%	5.00%	4.00%

Subsequent Event (Details)

Subsequent Event (Details) $ in Millions	Jul. 27, 2021USD ($)
Subsequent Event | Maximum
Subsequent Event
Shares authorized for repurchase (USD)	$ 30