CarParts.com (PRTS) 10-Q 2 Aug 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 02, 2022	Jul. 28, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jul. 02, 2022
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	Large Accelerated Filer
Smaller Reporting Company	false
Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		54,463,975
Current Fiscal Year End Date	--01-01
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001378950
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 02, 2022	Jan. 01, 2022
Current assets:
Cash and cash equivalents	$ 15,224	$ 18,144
Accounts receivable, net	7,085	5,015
Inventory, net	163,016	138,851
Other current assets	8,299	6,592
Total current assets	193,624	168,602
Property and equipment, net	24,172	20,736
Right-of-use - assets - operating leases, net	26,103	28,680
Right-of-use - assets - finance leases, net	20,289	15,130
Other non-current assets	2,711	2,188
Total assets	266,899	235,336
Current liabilities:
Accounts payable	82,887	67,372
Accrued expenses	18,724	17,517
Customer deposits	571	826
Right-of-use - obligation - operating, current	4,068	4,201
Right-of-use - obligation - finance, current	4,489	2,953
Other current liabilities	4,071	3,925
Total current liabilities	114,810	96,794
Right-of-use - obligation - operating, non-current	23,784	26,367
Right-of-use - obligation - finance, non-current	16,602	12,868
Other non-current liabilities	3,449	3,739
Total liabilities	158,645	139,768
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value; 100,000 shares authorized; 54,360 and 52,960 shares issued and outstanding as of July 2, 2022 and January 1, 2022 (of which 2,565 are treasury stock)	57	56
Treasury stock	(7,625)	(7,625)
Additional paid-in capital	289,137	282,663
Accumulated other comprehensive gain	264	274
Accumulated deficit	(173,579)	(179,800)
Total stockholders' equity	108,254	95,568
Total liabilities and stockholders' equity	$ 266,899	$ 235,336

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Jul. 02, 2022	Jan. 01, 2022
CONSOLIDATED BALANCE SHEETS
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)	54,360	52,960
Common stock, shares outstanding (in shares)	54,360	52,960
Treasury stock (in shares)	2,565	2,565

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Income Statement [Abstract]
Net sales		$ 176,220	$ 157,536	$ 342,273	$ 302,338
Cost of sales (1)	[1]	114,285	104,187	219,176	199,815
Gross profit		61,935	53,349	123,097	102,523
Operating expenses
Operating expense		57,644	51,013	116,415	102,685
Income (loss) from operations		4,291	2,336	6,682	(162)
Other income (expense):
Other, net		190	116	246	197
Interest expense		(346)	(267)	(638)	(517)
Total other expense, net		(156)	(151)	(392)	(320)
Income (loss) before income taxes		4,135	2,185	6,290	(482)
Income tax provision		17	113	69	168
Net income (loss)		4,118	2,072	6,221	(650)
Other comprehensive gain (loss):
Foreign currency translation adjustments		104	16	124	30
Unrealized (loss) gain on deferred compensation trust assets		(100)	38	(134)	73
Total other comprehensive gain (loss)		4	54	(10)	103
Comprehensive income (loss)		$ 4,122	$ 2,126	$ 6,211	$ (547)
Net income (loss) per share:
Basic net income (loss) per share		$ 0.08	$ 0.04	$ 0.12	$ (0.01)
Diluted net income (loss) per share		$ 0.07	$ 0.04	$ 0.11	$ (0.01)
Weighted-average common shares outstanding:
Shares used in computation of basic net income (loss) per share		54,210	51,684	53,744	50,222
Shares used in computation of diluted net income (loss) per share		57,210	57,122	57,315	50,222
[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	Common Stock	Additional Paid-in- Capital	Treasury Stock	Accumulated Other Comprehensive (Loss) Income	Accumulated Deficit	Total
Beginning balance at Jan. 02, 2021	$ 51	$ 260,260	$ (7,146)	$ (215)	$ (169,461)	$ 83,489
Beginning balance (in shares) at Jan. 02, 2021	48,091
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 gain (loss) on deferred compensation trust assets				35		35
Effect of changes in foreign currencies				14		14
Ending balance at Apr. 03, 2021	$ 53	264,503	(7,146)	(166)	(172,183)	85,061
Ending balance (in shares) at Apr. 03, 2021	50,603
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 stock awards to consultants		389				389
Issuance of stock awards to consultants (in shares)	118
Issuance of shares in connection with BOD Fees		6				6
Share-based compensation		3,821				3,821
Unrealized gain (loss) on deferred compensation trust assets				38		38
Effect of changes in foreign currencies				16		16
Ending balance at Jul. 03, 2021	$ 55	271,334	(7,146)	(112)	(170,111)	94,020
Ending balance (in shares) at Jul. 03, 2021	52,184
Beginning balance at Jan. 01, 2022	$ 56	282,663	(7,625)	274	(179,800)	95,568
Beginning balance (in shares) at Jan. 01, 2022	52,960
Increase (Decrease) in Stockholders' Equity
Net income (loss)					2,103	2,103
Issuance of shares in connection with stock option exercise		792				792
Issuance of shares in connection with stock option exercise (in shares)	533
Issuance of shares in connection with restricted stock units vesting	$ 1	(1)
Issuance of shares in connection with restricted stock units vesting (in shares)	519
Issuance of stock awards to consultants		81				81
Issuance of stock awards to consultants (in shares)	10
Issuance of shares in connection with BOD Fees		6				6
Issuance of shares in connection with ESPP		431				431
Issuance of shares in connection with ESPP (in shares)	45
Officers and directors stock purchase plan		23				23
Officers and directors stock purchase plan (in shares)	3
Share-based compensation		4,225				4,225
Unrealized gain (loss) on deferred compensation trust assets				(34)		(34)
Effect of changes in foreign currencies				20		20
Ending balance at Apr. 02, 2022	$ 57	288,220	(7,625)	260	(177,697)	103,215
Ending balance (in shares) at Apr. 02, 2022	54,070
Beginning balance at Jan. 01, 2022	$ 56	282,663	(7,625)	274	(179,800)	$ 95,568
Beginning balance (in shares) at Jan. 01, 2022	52,960
Increase (Decrease) in Stockholders' Equity
Issuance of shares in connection with stock option exercise (in shares)						602
Ending balance at Jul. 02, 2022	$ 57	289,137	(7,625)	264	(173,579)	$ 108,254
Ending balance (in shares) at Jul. 02, 2022	54,360
Beginning balance at Apr. 02, 2022	$ 57	288,220	(7,625)	260	(177,697)	103,215
Beginning balance (in shares) at Apr. 02, 2022	54,070
Increase (Decrease) in Stockholders' Equity
Net income (loss)					4,118	4,118
Issuance of shares in connection with stock option exercise		136				136
Issuance of shares in connection with stock option exercise (in shares)	70
Issuance of shares in connection with restricted stock units vesting (in shares)	220
Issuance of shares in connection with BOD Fees		6				6
Officers and directors stock purchase plan		4				4
Share-based compensation		771				771
Unrealized gain (loss) on deferred compensation trust assets				(100)		(100)
Effect of changes in foreign currencies				104		104
Ending balance at Jul. 02, 2022	$ 57	$ 289,137	$ (7,625)	$ 264	$ (173,579)	$ 108,254
Ending balance (in shares) at Jul. 02, 2022	54,360

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2022	Jul. 03, 2021
Operating activities
Net income (loss)	$ 6,221	$ (650)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization expense	6,265	4,550
Amortization of intangible assets	55	55
Share-based compensation expense	4,498	7,272
Gain from disposition of assets	(17)
Amortization of deferred financing costs	21	9
Changes in operating assets and liabilities:
Accounts receivable	(2,070)	(676)
Inventory	(24,165)	(24,649)
Other current assets	(1,739)	1,316
Other non-current assets	(741)	540
Accounts payable and accrued expenses	17,466	12,883
Other current liabilities	(109)	42
Right-of-use obligation - operating leases - current	(105)	430
Right-of-use obligation - operating leases - long-term	(20)	(76)
Other non-current liabilities	(139)	(77)
Net cash provided by operating activities	5,459	981
Investing activities
Additions to property and equipment	(7,797)	(5,398)
Proceeds from sale of property and equipment	44
Net cash used in investing activities	(7,753)	(5,398)
Financing activities
Borrowings from revolving loan payable	5,296	90
Payments made on revolving loan payable	(5,296)	(90)
Payments on finance leases	(1,966)	(990)
Net proceeds from issuance of common stock for ESPP	432
Statutory tax withholding payment for share-based compensation		(3)
Proceeds from exercise of stock options	929	2,779
Net cash (used in) provided by financing activities	(605)	1,786
Effect of exchange rate changes on cash	(21)	(22)
Net change in cash and cash equivalents	(2,920)	(2,653)
Cash and cash equivalents, beginning of period	18,144	35,802
Cash and cash equivalents, end of period	15,224
Supplemental disclosure of non-cash investing and financing activities:
Right-of-use operating asset acquired		17
Right-of-use finance asset acquired	7,235	3,629
Accrued asset purchases	1,060	1,954
Share-based compensation expense capitalized in property and equipment	579	1,018
Stock issued for services	81	389
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes	148	65
Cash paid during the period for interest	653	543
Director
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock awards issued for non-employee director service	11	$ 12
Officers and directors
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock awards issued for non-employee director service	$ 27

Basis of Presentation and Descr

Basis of Presentation and Description of Company	6 Months Ended
	Jul. 02, 2022
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 2, 2022 and the consolidated results of operations and cash flows for the thirteen and twenty-six weeks ended July 2, 2022 and July 3, 2021. 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 1, 2022, which was filed with the SEC on March 2, 2022 and all our other periodic filings, including Current Reports on Form 8-K, filed with the SEC after the end of our 2021 fiscal year, and throughout the date of this report. 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. 02, 2022
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, which is subject to a borrowing base derived from certain receivables, inventory, and property and equipment. On June 17, 2022, the Company and JPMorgan Chase Bank entered into an Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) amending and restating in its entirety that certain Credit Agreement dated April 26, 2012, as amended through the Fourteenth Amendment (the “Amendment”). The Amendment provides for the revolving commitment in an aggregated principal amount of $75,000 (formerly $30,000) and allows for an uncommitted ability to increase the aggregate principal amount by an additional $75,000 to $150,000 (formerly $40,000 maximum), subject to certain terms and conditions. As of July 2, 2022, our outstanding revolving loan balance was $0. The outstanding standby letters of credit balance as of July 2, 2022 was $620, 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) Adjusted Secured Overnight Financing Rate (“SOFR”) plus an applicable margin of 1.50% to 2.00% per annum based on the Company's fixed charge coverage ratio, or (b) an “alternate prime base rate” subject to an increase from 0.00% to 0.50% per annum based on the Company’s fixed charge coverage ratio. As of July 2, 2022, the Company’s SOFR based interest rate was 3.33% and the Company’s prime based rate was 4.75%. A commitment fee, based upon undrawn availability under the Credit Facility bearing interest at a rate of either 0.20% or 0.25% per annum based on the amount of undrawn availability, is payable monthly. Under the terms of 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 $9,000 (12% of the aggregate revolving commitment) for three

Stockholders' Equity and Share-

Stockholders' Equity and Share-Based Compensation	6 Months Ended
	Jul. 02, 2022
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 2, 2022: ● Granted options to purchase 0 common shares. ● Exercise of 602 options to purchase common shares. ● Forfeiture of 88 options to purchase common shares. ● Expiration of 15 options to purchase common shares. The following table summarizes the Company’s restricted stock unit ("RSU") activity for the twenty-six weeks ended July 2, 2022, and details regarding the awards outstanding and exercisable as of July 2, 2022 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ Weighted Average ​ ​ ​ ​ ​ ​ ​ Average ​ Grant Date ​ Aggregate ​ Shares Exercise Price Fair Value Intrinsic Value Vested and expected to vest as of January 1, 2022 ​ 3,023 $ — ​ ​ ​ ​ ​ Awarded ​ 2,161 $ — ​ ​ ​ ​ ​ Vested ​ (736) $ — ​ ​ ​ ​ ​ Forfeited ​ (1,208) $ — ​ ​ ​ ​ ​ Awards outstanding, July 2, 2022 ​ 3,240 $ — $ 11.53 $ 23,522 Vested and expected to vest as of July 2, 2022 ​ 3,240 $ — $ 11.53 $ 23,522 ​ During the twenty-six weeks ended July 2, 2022, 242 RSUs that vested were time-based and 494 were performance-based. For the thirteen and twenty-six weeks ended July 2, 2022, we recorded compensation costs related to stock options and RSUs of $771 and $5,077, respectively, of which $0 and $81 related to common shares issued to consultants as part of their compensation for services provided during those respective periods. 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. As of July 2, 2022, there was unrecognized compensation expense related to stock options and RSUs of $28,807 that will be expensed through June 2026.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	6 Months Ended
	Jul. 02, 2022
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 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Net income (loss) per share: ​ ​ ​ ​ Numerator: ​ ​ ​ ​ Net income (loss) allocable to common shares ​ $ 4,118 ​ $ 2,072 ​ ​ 6,221 ​ ​ (650) Denominator: ​ ​ ​ ​ Weighted-average common shares outstanding (basic) ​ 54,210 ​ 51,684 ​ 53,744 ​ 50,222 Common equivalent shares from common stock options and restricted stock ​ 3,000 ​ 5,438 ​ 3,571 ​ — Weighted-average common shares outstanding (diluted) ​ 57,210 ​ 57,122 ​ 57,315 ​ 50,222 Basic net income (loss) per share ​ $ 0.08 ​ $ 0.04 ​ $ 0.12 ​ $ (0.01) Diluted net income (loss) per share ​ $ 0.07 ​ $ 0.04 ​ $ 0.11 ​ $ (0.01) ​ Options and RSUs that were antidilutive and not included in the dilutive earnings per share calculation for the thirteen and twenty-six weeks ended July 2, 2022 amounted to 1,771 and 1,789, respectively, and amounted to 899 for the thirteen weeks ended July 3, 2021. 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. 02, 2022
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 2017-2021 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 2018-2021 remain open. For the thirteen and twenty-six weeks ended July 2, 2022, the effective tax rate for the Company was 0.4% and 1.1%, 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 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 on the current period pre-tax income. 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 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 of the current period pre-tax income (loss). 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 2, 2022, there was no material change from fiscal year ended January 1, 2022 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. ​

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 02, 2022
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. 02, 2022
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 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 House Brands Replacement Parts 66 % 67 % 66 % 68 % Hard Parts 19 % 19 % 21 % 18 % Performance 1 % — % 1 % 1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Branded Replacement Parts 1 % 1 % 1 % 1 % Hard Parts 8 % 8 % 7 % 7 % Performance 5 % 5 % 4 % 5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total 100 % 100 % 100 % 100 % ​

Basis of Presentation and Des_2

Basis of Presentation and Description of Company (Policies)	6 Months Ended
	Jul. 02, 2022
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 2, 2022 and the consolidated results of operations and cash flows for the thirteen and twenty-six weeks ended July 2, 2022 and July 3, 2021. 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 1, 2022, which was filed with the SEC on March 2, 2022 and all our other periodic filings, including Current Reports on Form 8-K, filed with the SEC after the end of our 2021 fiscal year, and throughout the date of this report. 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. 02, 2022
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 2, 2022, and details regarding the awards outstanding and exercisable as of July 2, 2022 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ Weighted Average ​ ​ ​ ​ ​ ​ ​ Average ​ Grant Date ​ Aggregate ​ Shares Exercise Price Fair Value Intrinsic Value Vested and expected to vest as of January 1, 2022 ​ 3,023 $ — ​ ​ ​ ​ ​ Awarded ​ 2,161 $ — ​ ​ ​ ​ ​ Vested ​ (736) $ — ​ ​ ​ ​ ​ Forfeited ​ (1,208) $ — ​ ​ ​ ​ ​ Awards outstanding, July 2, 2022 ​ 3,240 $ — $ 11.53 $ 23,522 Vested and expected to vest as of July 2, 2022 ​ 3,240 $ — $ 11.53 $ 23,522

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jul. 02, 2022
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 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Net income (loss) per share: ​ ​ ​ ​ Numerator: ​ ​ ​ ​ Net income (loss) allocable to common shares ​ $ 4,118 ​ $ 2,072 ​ ​ 6,221 ​ ​ (650) Denominator: ​ ​ ​ ​ Weighted-average common shares outstanding (basic) ​ 54,210 ​ 51,684 ​ 53,744 ​ 50,222 Common equivalent shares from common stock options and restricted stock ​ 3,000 ​ 5,438 ​ 3,571 ​ — Weighted-average common shares outstanding (diluted) ​ 57,210 ​ 57,122 ​ 57,315 ​ 50,222 Basic net income (loss) per share ​ $ 0.08 ​ $ 0.04 ​ $ 0.12 ​ $ (0.01) Diluted net income (loss) per share ​ $ 0.07 ​ $ 0.04 ​ $ 0.11 ​ $ (0.01)

Product Information (Tables)

Product Information (Tables)	6 Months Ended
	Jul. 02, 2022
Product Information
Summary of Revenue by Product Type	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended ​ Twenty-Six Weeks Ended ​ ​ ​ July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 House Brands Replacement Parts 66 % 67 % 66 % 68 % Hard Parts 19 % 19 % 21 % 18 % Performance 1 % — % 1 % 1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Branded Replacement Parts 1 % 1 % 1 % 1 % Hard Parts 8 % 8 % 7 % 7 % Performance 5 % 5 % 4 % 5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total 100 % 100 % 100 % 100 %

Borrowings (Details)

Borrowings (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2022	Jun. 17, 2022	Jun. 16, 2022	Jul. 03, 2021	Jul. 02, 2021
JP Morgan Chase Bank | Revolving Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 150,000	$ 75,000	$ 40,000	$ 30,000
Increased aggregate borrowing capacity		$ 75,000
Revolving loan payable	$ 0
Credit facility trigger amount	$ 9,000
Credit facility trigger amount as a percent of aggregate revolving commitment (in percent)	12%
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	$ 7,500
Minimum availability required under availability block as a percentage of aggregate revolving commitment (in percent)	10%
Minimum fixed charge ratio if less than minimum excess availability	1
JP Morgan Chase Bank | Revolving Credit Facility | Maximum
Line of Credit Facility [Line Items]
Unused credit commitment fee (percent)	0.20%
JP Morgan Chase Bank | Revolving Credit Facility | Minimum
Line of Credit Facility [Line Items]
Unused credit commitment fee (percent)	0.25%
JP Morgan Chase Bank | Letter of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 620
Outstanding letters of credit amount	$ 0
Base Rate | JP Morgan Chase Bank | Revolving Credit Facility
Line of Credit Facility [Line Items]
Interest rate (percent)	4.75%
Prime rate | Revolving Credit Facility | Maximum
Line of Credit Facility [Line Items]
Applicable margin on the company's fixed charge coverage ratio (percent)	0.50%
Prime rate | Revolving Credit Facility | Minimum
Line of Credit Facility [Line Items]
Applicable margin on the company's fixed charge coverage ratio (percent)	0%
Adjusted Secured Overnight Financing Rate (SOFR) | Revolving Credit Facility | Maximum
Line of Credit Facility [Line Items]
Applicable margin on the company's fixed charge coverage ratio (percent)	2%
Adjusted Secured Overnight Financing Rate (SOFR) | Revolving Credit Facility | Minimum
Line of Credit Facility [Line Items]
Applicable margin on the company's fixed charge coverage ratio (percent)	1.50%
Adjusted Secured Overnight Financing Rate (SOFR) | JP Morgan Chase Bank | Revolving Credit Facility
Line of Credit Facility [Line Items]
Interest rate (percent)	3.33%

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. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)			0
Number of options exercised (in shares)			602
Number of stock options forfeited (in shares)			88
Number of stock options expired (in shares)			15
Time Based RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)			242
Performance based RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)			494
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)			736
Stock options and Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation costs	$ 771	$ 4,210	$ 5,077	$ 8,290
Unrecognized compensation expense	28,807		28,807
Stock options and Restricted stock units | Consultant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation costs	$ 0	$ 389	$ 81

Stockholders' Equity and Shar_4

Stockholders' Equity and Share-Based Compensation - Summary of Restricted Stock Unit Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jul. 02, 2022 USD ($) $ / shares shares
Restricted stock units
Shares
Vested and expected to vest as of January 1, 2022 (in shares)	3,023
Awarded (in shares)	2,161
Vested (in shares)	(736)
Forfeited (in shares)	(1,208)
Awards outstanding, July 2, 2022 (in shares)	3,240
Vested and expected to vest as of July 2, 2022 (in shares)	3,240
Weighted Average Exercise Price
Awards outstanding, weighted average exercise price, ending balance (in usd per share) | $ / shares	$ 11.53
Vested and expected to vest, weighted average exercise price, ending balance (in usd per share) | $ / shares	11.53
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Awards outstanding, Aggregate Intrinsic Value | $	$ 23,522
Vested and expected to vest, Aggregate Intrinsic Value | $	$ 23,522
Time Based RSU
Shares
Vested (in shares)	(242)
Performance based RSU
Shares
Vested (in shares)	(494)

Net Income (Loss) Per Share (De

Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Numerator:
Net income (loss) allocable to common shares	$ 4,118	$ 2,072	$ 6,221	$ (650)
Denominator:
Weighted-average common shares outstanding (basic)	54,210	51,684	53,744	50,222
Common equivalent shares from common stock options and restricted stock	3,000	5,438	3,571
Weighted-average common shares outstanding (diluted)	57,210	57,122	57,315	50,222
Basic net income (loss) per share	$ 0.08	$ 0.04	$ 0.12	$ (0.01)
Diluted net income (loss) per share	$ 0.07	$ 0.04	$ 0.11	$ (0.01)
Anti-dilutive securities excluded from calculation of diluted earnings per share (in shares)	1,771	899	1,789

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Income Taxes
Effective tax rate	0.40%	5.20%	1.10%	34.90%

Product Information - Summary o

Product Information - Summary of Segment Percentages (Details) - Sales Revenue, Product Line - Product Concentration Risk	3 Months Ended		6 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Segment Reporting Information [Line Items]
Concentration risk percentage	100%	100%	100%	100%
House Brands, Replacement parts
Segment Reporting Information [Line Items]
Concentration risk percentage	66%	67%	66%	68%
House Brands, Hard parts
Segment Reporting Information [Line Items]
Concentration risk percentage	19%	19%	21%	18%
House Brands, Performance
Segment Reporting Information [Line Items]
Concentration risk percentage	1%		1%	1%
Branded, Replacement parts
Segment Reporting Information [Line Items]
Concentration risk percentage	1%	1%	1%	1%
Branded, Hard parts
Segment Reporting Information [Line Items]
Concentration risk percentage	8%	8%	7%	7%
Branded, Performance
Segment Reporting Information [Line Items]
Concentration risk percentage	5%	5%	4%	5%