CarParts.com (PRTS) 10-Q 9 Nov 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 01, 2022	Nov. 03, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Oct. 01, 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		54,559,500
Current Fiscal Year End Date	--01-01
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001378950
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 01, 2022	Jan. 01, 2022
Current assets:
Cash and cash equivalents	$ 16,654	$ 18,144
Accounts receivable, net	9,501	5,015
Inventory, net	154,751	138,851
Other current assets	6,703	6,592
Total current assets	187,609	168,602
Property and equipment, net	25,021	20,736
Right-of-use - assets - operating leases, net	25,042	28,680
Right-of-use - assets - finance leases, net	19,705	15,130
Other non-current assets	2,612	2,188
Total assets	259,989	235,336
Current liabilities:
Accounts payable	68,208	67,372
Accrued expenses	19,997	17,517
Customer deposits	250	826
Right-of-use - obligation - operating, current	4,429	4,201
Right-of-use - obligation - finance, current	4,614	2,953
Other current liabilities	4,186	3,925
Total current liabilities	101,684	96,794
Revolving loan payable, non-current	5,000
Right-of-use - obligation - operating, non-current	22,402	26,367
Right-of-use - obligation - finance, non-current	15,997	12,868
Other non-current liabilities	3,323	3,739
Total liabilities	148,406	139,768
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value; 100,000 shares authorized; 54,558 and 52,960 shares issued and outstanding as of October 1, 2022 and January 1, 2022 (of which 2,565 are treasury stock)	57	56
Treasury stock	(7,625)	(7,625)
Additional paid-in capital	293,450	282,663
Accumulated other comprehensive gain	228	274
Accumulated deficit	(174,527)	(179,800)
Total stockholders' equity	111,583	95,568
Total liabilities and stockholders' equity	$ 259,989	$ 235,336

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Oct. 01, 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)	54,558	52,960
Common stock, shares outstanding (in shares)	54,558	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		9 Months Ended
		Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Income Statement [Abstract]
Net sales		$ 164,807	$ 141,846	$ 507,080	$ 444,184
Cost of sales (1)	[1]	108,659	94,513	327,835	294,328
Gross profit		56,148	47,333	179,245	149,856
Operating expenses
Operating expense		56,729	51,668	173,144	154,353
(Loss) income from operations		(581)	(4,335)	6,101	(4,497)
Other income (expense):
Other, net		117	24	363	221
Interest expense		(435)	(309)	(1,073)	(826)
Total other expense, net		(318)	(285)	(710)	(605)
(Loss) income before income taxes		(899)	(4,620)	5,391	(5,102)
Income tax provision		49	39	118	207
Net (loss) income		(948)	(4,659)	5,273	(5,309)
Other comprehensive (loss) gain:
Foreign currency translation adjustments			60	124	90
Unrealized (loss) gain on deferred compensation trust assets		(36)	(5)	(170)	68
Total other comprehensive (loss) gain		(36)	55	(46)	158
Comprehensive (loss) income		$ (984)	$ (4,604)	$ 5,227	$ (5,151)
Net (loss) income per share:
Basic net (loss) income per share		$ (0.02)	$ (0.09)	$ 0.10	$ (0.10)
Diluted net (loss) income per share		$ (0.02)	$ (0.09)	$ 0.09	$ (0.10)
Weighted-average common shares outstanding:
Shares used in computation of basic net (loss) income per share		54,481	52,264	54,009	50,903
Shares used in computation of diluted net (loss) income per share		54,481	52,264	57,283	50,903
[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
Share-based compensation		4,080				4,080
Issuance of shares in connection with BOD Fees		6				6
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
Share-based compensation		3,821				3,821
Issuance of shares in connection with BOD Fees		6				6
Issuance of stock awards		389				389
Issuance of stock awards (in shares)	118
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
Increase (Decrease) in Stockholders' Equity
Net income (loss)					(4,659)	(4,659)
Issuance of shares in connection with stock option exercise		451				451
Issuance of shares in connection with stock option exercise (in shares)	108
Issuance of shares in connection with restricted stock units vesting (in shares)	109
Share-based compensation		4,364				4,364
Issuance of shares in connection with BOD Fees		6				6
Issuance of stock awards		233				233
Issuance of stock awards (in shares)	14
Unrealized gain (loss) on deferred compensation trust assets				(5)		(5)
Effect of changes in foreign currencies				60		60
Ending balance at Oct. 02, 2021	$ 55	276,388	(7,146)	(57)	(174,770)	94,470
Ending balance (in shares) at Oct. 02, 2021	52,415
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
Share-based compensation		4,225				4,225
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
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)						665
Ending balance at Oct. 01, 2022	$ 57	293,450	(7,625)	228	(174,527)	$ 111,583
Ending balance (in shares) at Oct. 01, 2022	54,558
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
Share-based compensation		771				771
Issuance of shares in connection with BOD Fees		6				6
Officers and directors stock purchase plan		4				4
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
Increase (Decrease) in Stockholders' Equity
Net income (loss)					(948)	(948)
Issuance of shares in connection with stock option exercise		184				184
Issuance of shares in connection with stock option exercise (in shares)	63
Issuance of shares in connection with restricted stock units vesting (in shares)	72
Share-based compensation		3,760				3,760
Issuance of shares in connection with BOD Fees		6				6
Issuance of shares in connection with BOD Fees (in shares)	1
Issuance of shares in connection with ESPP		363				363
Issuance of shares in connection with ESPP (in shares)	62
Unrealized gain (loss) on deferred compensation trust assets				(36)		(36)
Ending balance at Oct. 01, 2022	$ 57	$ 293,450	$ (7,625)	$ 228	$ (174,527)	$ 111,583
Ending balance (in shares) at Oct. 01, 2022	54,558

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021
Operating activities
Net income (loss)	$ 5,273	$ (5,309)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization expense	9,671	7,123
Amortization of intangible assets	81	83
Share-based compensation expense	7,786	11,277
Stock awards issued for non-employee director service	17	17
Stock awards related to officers and directors stock purchase plan from payroll deferral	27
(Gain) loss from disposition of assets	(41)	15
Amortization of deferred financing costs	37	13
Changes in operating assets and liabilities:
Accounts receivable	(4,624)	(1,737)
Inventory	(15,900)	(42,453)
Other current assets	(124)	1,580
Other non-current assets	(745)	556
Accounts payable and accrued expenses	4,524	19,477
Other current liabilities	(315)	266
Right-of-use obligation - operating leases - current	279	960
Right-of-use obligation - operating leases - long-term	(108)	(331)
Other non-current liabilities	(136)	114
Net cash provided by (used in) operating activities	5,702	(8,349)
Investing activities
Additions to property and equipment	(10,546)	(8,434)
Proceeds from sale of property and equipment	44	27
Net cash used in investing activities	(10,502)	(8,407)
Financing activities
Borrowings from revolving loan payable	10,351	105
Payments made on revolving loan payable	(5,351)	(105)
Payments on finance leases	(3,099)	(1,566)
Net proceeds from issuance of common stock for ESPP	794
Statutory tax withholding payment for share-based compensation		(3)
Proceeds from exercise of stock options	1,113	3,230
Net cash provided by financing activities	3,808	1,661
Effect of exchange rate changes on cash	(498)	(27)
Net change in cash and cash equivalents	(1,490)	(15,122)
Cash and cash equivalents, beginning of period	18,144	35,802
Cash and cash equivalents, end of period	16,654	20,680
Supplemental disclosure of non-cash investing and financing activities:
Right-of-use operating asset acquired		4,075
Right-of-use finance asset acquired	7,889	4,257
Accrued asset purchases	859	1,727
Share-based compensation expense capitalized in property and equipment	1,051	1,610
Stock issued for services	81	622
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes	175	77
Cash paid during the period for interest	$ 1,011	$ 811

Basis of Presentation and Descr

Basis of Presentation and Description of Company	9 Months Ended
	Oct. 01, 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 October 1, 2022 and the consolidated results of operations and cash flows for the thirteen and thirty-nine weeks ended October 1, 2022 and October 2, 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. Effective July 3, 2022, management reassessed our functional currency determination for our Philippines subsidiary in accordance with ASC 830, Foreign Currency Matters 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	9 Months Ended
	Oct. 01, 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 October 1, 2022, our outstanding revolving loan balance was $5,000. The outstanding standby letters of credit balance as of October 1, 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 October 1, 2022, the Company’s SOFR based interest rate was 4.70% and the Company’s prime based rate was 6.25%. 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	9 Months Ended
	Oct. 01, 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 thirty-nine weeks ended October 1, 2022: ● Granted options to purchase 0 common shares. ● Exercise of 665 options to purchase common shares. ● Forfeiture of 538 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 thirty-nine weeks ended October 1, 2022, and details regarding the awards outstanding and exercisable as of October 1, 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 ​ 2,209 $ — ​ ​ ​ ​ ​ Vested ​ (808) $ — ​ ​ ​ ​ ​ Forfeited ​ (1,255) $ — ​ ​ ​ ​ ​ Awards outstanding, October 1, 2022 ​ 3,169 $ — $ 10.66 $ 16,382 Vested and expected to vest as of October 1, 2022 ​ 3,169 $ — $ 10.66 $ 16,382 ​ During the thirty-nine weeks ended October 1, 2022, 273 RSUs that vested were time-based and 535 were performance-based. For the thirteen and thirty-nine weeks ended October 1, 2022, we recorded compensation costs related to stock options and RSUs of $3,760 and $8,837, 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 thirty-nine weeks ended October 2, 2021, we recorded compensation costs related to stock options and RSUs of $4,597 and $12,887, respectively, of which $233 and $622, respectively, related to common shares issued to consultants as part of their compensation for services provided during the periods. As of October 1, 2022, there was unrecognized compensation expense related to stock options and RSUs of $24,422 that will be expensed through September 2026.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	9 Months Ended
	Oct. 01, 2022
Net Income (Loss) Per Share
Net Income (Loss) Per Share	Note 4 – Net (Loss) Income Per Share The following table sets forth the computation of basic and diluted net (loss) income per share (in thousands, except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended Thirty-Nine Weeks Ended ​ October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 Net (loss) income per share: ​ ​ ​ ​ Numerator: ​ ​ ​ ​ Net (loss) income allocable to common shares ​ $ (948) ​ $ (4,659) ​ ​ 5,273 ​ ​ (5,309) Denominator: ​ ​ ​ ​ Weighted-average common shares outstanding (basic) ​ 54,481 ​ 52,264 ​ 54,009 ​ 50,903 Common equivalent shares from common stock options and restricted stock ​ — ​ — ​ 3,274 ​ — Weighted-average common shares outstanding (diluted) ​ 54,481 ​ 52,264 ​ 57,283 ​ 50,903 Basic net (loss) income per share ​ $ (0.02) ​ $ (0.09) ​ $ 0.10 ​ $ (0.10) Diluted net (loss) income per share ​ $ (0.02) ​ $ (0.09) ​ $ 0.09 ​ $ (0.10) ​ Options and RSUs that were antidilutive and not included in the dilutive earnings per share calculation for the thirty-nine weeks ended October 1, 2022 amounted to 1,590. For the thirteen weeks ended October 1, 2022 and October 2, 2021, and the thirty-nine weeks ended October 2, 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	9 Months Ended
	Oct. 01, 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 thirty-nine weeks ended October 1, 2022, the effective tax rate for the Company was (5.5)% and 2.2%, 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 (loss) income. For the thirteen and thirty-nine weeks ended October 2, 2021, the effective tax rate for the Company was (0.8)% and (4.1)%, 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 of the current period pre-tax 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 thirty-nine weeks ended October 1, 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	9 Months Ended
	Oct. 01, 2022
Commitments and Contingencies.
Commitments and Contingencies	Note 6 – Commitments and Contingencies Legal Matters Asbestos . Ordinary course litigation.

Product Information

Product Information	9 Months Ended
	Oct. 01, 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 ​ Thirty-Nine Weeks Ended ​ ​ ​ October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 House Brands Replacement Parts 68 % 67 % 67 % 68 % Hard Parts 18 % 18 % 20 % 18 % Performance 1 % — % 1 % — % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Branded Replacement Parts 1 % 1 % 1 % 1 % Hard Parts 7 % 8 % 7 % 8 % Performance 5 % 6 % 4 % 5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total 100 % 100 % 100 % 100 % ​

Basis of Presentation and Des_2

Basis of Presentation and Description of Company (Policies)	9 Months Ended
	Oct. 01, 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 October 1, 2022 and the consolidated results of operations and cash flows for the thirteen and thirty-nine weeks ended October 1, 2022 and October 2, 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. Effective July 3, 2022, management reassessed our functional currency determination for our Philippines subsidiary in accordance with ASC 830, Foreign Currency Matters 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)	9 Months Ended
	Oct. 01, 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 thirty-nine weeks ended October 1, 2022, and details regarding the awards outstanding and exercisable as of October 1, 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 ​ 2,209 $ — ​ ​ ​ ​ ​ Vested ​ (808) $ — ​ ​ ​ ​ ​ Forfeited ​ (1,255) $ — ​ ​ ​ ​ ​ Awards outstanding, October 1, 2022 ​ 3,169 $ — $ 10.66 $ 16,382 Vested and expected to vest as of October 1, 2022 ​ 3,169 $ — $ 10.66 $ 16,382

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	9 Months Ended
	Oct. 01, 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 (loss) income per share (in thousands, except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended Thirty-Nine Weeks Ended ​ October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 Net (loss) income per share: ​ ​ ​ ​ Numerator: ​ ​ ​ ​ Net (loss) income allocable to common shares ​ $ (948) ​ $ (4,659) ​ ​ 5,273 ​ ​ (5,309) Denominator: ​ ​ ​ ​ Weighted-average common shares outstanding (basic) ​ 54,481 ​ 52,264 ​ 54,009 ​ 50,903 Common equivalent shares from common stock options and restricted stock ​ — ​ — ​ 3,274 ​ — Weighted-average common shares outstanding (diluted) ​ 54,481 ​ 52,264 ​ 57,283 ​ 50,903 Basic net (loss) income per share ​ $ (0.02) ​ $ (0.09) ​ $ 0.10 ​ $ (0.10) Diluted net (loss) income per share ​ $ (0.02) ​ $ (0.09) ​ $ 0.09 ​ $ (0.10)

Product Information (Tables)

Product Information (Tables)	9 Months Ended
	Oct. 01, 2022
Product Information
Summary of Revenue by Product Type	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended ​ Thirty-Nine Weeks Ended ​ ​ ​ October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 House Brands Replacement Parts 68 % 67 % 67 % 68 % Hard Parts 18 % 18 % 20 % 18 % Performance 1 % — % 1 % — % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Branded Replacement Parts 1 % 1 % 1 % 1 % Hard Parts 7 % 8 % 7 % 8 % Performance 5 % 6 % 4 % 5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total 100 % 100 % 100 % 100 %

Borrowings (Details)

Borrowings (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 01, 2022	Jun. 17, 2022	Jun. 16, 2022
JP Morgan Chase Bank | Revolving Credit Facility
Line of Credit Facility [Line Items]
Current borrowing capacity		$ 75,000	$ 30,000
Maximum borrowing capacity		150,000	$ 40,000
Increased aggregate borrowing capacity		$ 75,000
Revolving loan payable	$ 5,000
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)	6.25%
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)	4.70%

Stockholders' Equity and Shar_3

Stockholders' Equity and Share-Based Compensation - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 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)			665
Number of stock options forfeited (in shares)			538
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)			273
Performance based RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)			535
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)			808
Stock options and Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation costs	$ 3,760	$ 4,597	$ 8,837	$ 12,887
Unrecognized compensation expense	24,422		24,422
Stock options and Restricted stock units | Consultant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation costs	$ 0	$ 233	$ 81	$ 622

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	9 Months Ended
	Oct. 01, 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)	2,209
Vested (in shares)	(808)
Forfeited (in shares)	(1,255)
Awards outstanding, July 2, 2022 (in shares)	3,169
Vested and expected to vest as of July 2, 2022 (in shares)	3,169
Weighted Average Exercise Price
Awards outstanding, weighted average exercise price, ending balance (in usd per share) | $ / shares	$ 10.66
Vested and expected to vest, weighted average exercise price, ending balance (in usd per share) | $ / shares	10.66
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Awards outstanding, Aggregate Intrinsic Value | $	$ 16,382
Vested and expected to vest, Aggregate Intrinsic Value | $	$ 16,382
Time Based RSU
Shares
Vested (in shares)	(273)
Performance based RSU
Shares
Vested (in shares)	(535)

Net Income (Loss) Per Share (De

Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Numerator:
Net income (loss) allocable to common shares	$ (948)	$ (4,659)	$ 5,273	$ (5,309)
Denominator:
Weighted-average common shares outstanding (basic)	54,481	52,264	54,009	50,903
Common equivalent shares from common stock options and restricted stock			3,274
Weighted-average common shares outstanding (diluted)	54,481	52,264	57,283	50,903
Basic net (loss) income per share	$ (0.02)	$ (0.09)	$ 0.10	$ (0.10)
Diluted net (loss) income per share	$ (0.02)	$ (0.09)	$ 0.09	$ (0.10)
Anti-dilutive securities excluded from calculation of diluted earnings per share (in shares)			1,590

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Income Taxes
Effective tax rate	(5.50%)	(0.80%)	2.20%	(4.10%)

Product Information - Summary o

Product Information - Summary of Segment Percentages (Details) - Sales Revenue, Product Line - Product Concentration Risk	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 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	68%	67%	67%	68%
House Brands, Hard parts
Segment Reporting Information [Line Items]
Concentration risk percentage	18%	18%	20%	18%
House Brands, Performance
Segment Reporting Information [Line Items]
Concentration risk percentage	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	7%	8%	7%	8%
Branded, Performance
Segment Reporting Information [Line Items]
Concentration risk percentage	5%	6%	4%	5%