Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 28, 2019 | Oct. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 28, 2019 | |
Entity Registrant Name | U.S. AUTO PARTS NETWORK, INC. | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Interactive Data Current | Yes | |
Smaller Reporting Company | true | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 35,956,453 | |
Current Fiscal Year End Date | --12-28 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001378950 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,108 | $ 2,031 |
Short-term investments | 3 | 1 |
Accounts receivable, net | 4,349 | 3,727 |
Inventory | 47,699 | 49,626 |
Other current assets | 4,224 | 3,400 |
Total current assets | 57,383 | 58,785 |
Deferred income taxes | 22,463 | 21,833 |
Property and equipment, net | 9,806 | 15,184 |
Right-of-use - assets - operating leases, net | 5,047 | |
Right-of-use - assets - financing leases, net | 9,089 | |
Other non-current assets | 1,782 | 2,163 |
Total assets | 105,570 | 97,965 |
Current liabilities: | ||
Accounts payable | 35,777 | 34,039 |
Accrued expenses | 12,566 | 10,247 |
Current portion of capital leases payable | 594 | |
Customer deposits | 521 | |
Notes payable, current portion | 606 | |
Right-of-use - obligation - operating, current | 1,573 | |
Right-of-use - obligation - finance, current | 686 | |
Other current liabilities | 3,078 | 2,918 |
Total current liabilities | 54,286 | 48,319 |
Capital leases payable, net of current portion | 8,559 | |
Notes payable, non-current portion | 1,078 | |
Right-of-use - obligation - operating, non-current | 3,714 | |
Right-of-use - obligation - finance, non-current | 8,599 | |
Other non-current liabilities | 2,155 | 2,265 |
Total liabilities | 69,832 | 59,143 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Series A convertible preferred stock, $0.001 par value; $1.45 per share liquidation value or aggregate of $6,017; 4,150 shares authorized; 2,771 shares issued and outstanding at both September 28, 2019 and December 29, 2018 | 3 | 3 |
Common stock, $0.001 par value; 100,000 shares authorized; 35,924 and 34,992 shares issued and outstanding at September 28, 2019 and December 29, 2018 (of which 2,525 are treasury stock) | 38 | 38 |
Common stock dividend | 41 | |
Treasury stock | (7,146) | (7,146) |
Additional paid-in capital | 184,992 | 183,139 |
Accumulated other comprehensive income | 560 | 579 |
Accumulated deficit | (142,750) | (137,791) |
Total stockholders’ equity | 35,738 | 38,822 |
Total liabilities and stockholders’ equity | $ 105,570 | $ 97,965 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 35,924,000 | 34,992,000 |
Common stock, shares outstanding (in shares) | 35,924,000 | 34,992,000 |
Treasury stock (in shares) | 2,525,000 | 2,525,000 |
Series A Convertible Preferred Stock | ||
Series A convertible preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Share liquidation value (in usd per share) | $ 1.45 | $ 1.45 |
Share aggregate value | $ 6,017 | $ 6,017 |
Series A convertible preferred stock, shares authorized (in shares) | 4,150,000 | 4,150,000 |
Series A convertible preferred stock, shares issued (in shares) | 2,771,000 | 2,771,000 |
Series A convertible preferred stock, shares outstanding (in shares) | 2,771,000 | 2,771,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Income Statement [Abstract] | |||||
Net sales | $ 69,273 | $ 69,463 | $ 217,698 | $ 224,821 | |
Cost of sales (1) | [1] | 48,130 | 51,049 | 154,663 | 162,666 |
Gross profit | 21,143 | 18,414 | 63,035 | 62,155 | |
Operating expenses: | |||||
Marketing | 11,034 | 9,212 | 34,023 | 29,012 | |
General and administrative | 4,068 | 4,297 | 13,658 | 13,923 | |
Fulfillment | 6,268 | 5,034 | 17,664 | 16,276 | |
Technology | 1,206 | 1,035 | 3,724 | 3,121 | |
Amortization of intangible assets | 25 | 46 | 75 | 140 | |
Total operating expenses | 22,601 | 19,624 | 69,144 | 62,472 | |
(Loss) income from operations | (1,458) | (1,210) | (6,109) | (317) | |
Other income (expense): | |||||
Other, net | (1) | 1,402 | 41 | 1,396 | |
Interest expense | (517) | (364) | (1,411) | (1,218) | |
Total other expense, net | (518) | 1,038 | (1,370) | 178 | |
(Loss) income before income taxes | (1,976) | (172) | (7,479) | (139) | |
Income tax (benefit) provision | (552) | 8 | (1,018) | 270 | |
Net loss | (1,424) | (180) | (6,461) | (409) | |
Other comprehensive income: | |||||
Foreign currency translation adjustments | 19 | 9 | (19) | 51 | |
Total other comprehensive income | 19 | 9 | (19) | 51 | |
Comprehensive loss | $ (1,405) | $ (171) | $ (6,480) | $ (358) | |
Loss from continuing operations per share: | |||||
Basic and diluted net loss per share | $ (0.04) | $ (0.01) | $ (0.18) | $ (0.02) | |
Weighted average common shares outstanding: | |||||
Shares used in computation of basic and diluted net loss per share | 35,856 | 34,983 | 35,623 | 34,925 | |
[1] | Excludes depreciation and amortization expense which is included in marketing, general and administrative and fulfillment expense. |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) - USD ($) $ in Thousands | Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Common Stock Dividend Distributable | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Effect of new accounting adoption | $ 255 | $ 255 | ||||||
Balance as currently stated at, December 30, 2017 , December 29, 2018 and March 31, 2018 | $ 3 | $ 37 | $ 179,906 | $ (7,146) | $ 557 | (132,741) | 40,616 | |
Beginning balance (in shares) at Dec. 30, 2017 | 2,771,000 | 34,666,000 | ||||||
Beginning balance at Dec. 30, 2017 | $ 3 | $ 37 | 179,906 | (7,146) | 557 | (132,996) | 40,361 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance as currently stated at, December 30, 2017 ,December 29, 2018 and March 31, 2018 (in shares) | 2,771,000 | 34,939,000 | ||||||
Net income (loss) | 568 | 568 | ||||||
Issuance of shares in connection with restricted stock units vesting (in shares) | 438,000 | |||||||
Minimum tax withholding on RSU's (in shares) | (166,000) | |||||||
Minimum tax withholdings on options exercised | (395) | (395) | ||||||
Issuance of shares in connection with BOD Fees (in shares) | 1,000 | |||||||
Issuance of shares in connection with BOD Fees | 4 | 4 | ||||||
Share-based compensation | 1,002 | 1,002 | ||||||
Common stock dividend on preferred stock | (39) | (39) | ||||||
Effect of changes in foreign currencies | 22 | 22 | ||||||
Ending balance (in shares) at Mar. 31, 2018 | 2,771,000 | 34,939,000 | ||||||
Ending balance at Mar. 31, 2018 | $ 3 | $ 37 | 180,517 | (7,146) | 579 | (132,212) | 41,778 | |
Beginning balance (in shares) at Dec. 30, 2017 | 2,771,000 | 34,666,000 | ||||||
Beginning balance at Dec. 30, 2017 | $ 3 | $ 37 | 179,906 | (7,146) | 557 | (132,996) | 40,361 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (409) | |||||||
Ending balance (in shares) at Sep. 29, 2018 | 2,771,000 | 34,985,000 | ||||||
Ending balance at Sep. 29, 2018 | $ 3 | $ 37 | 181,226 | (7,146) | 612 | (133,271) | 41,461 | |
Beginning balance (in shares) at Dec. 30, 2017 | 2,771,000 | 34,666,000 | ||||||
Beginning balance at Dec. 30, 2017 | $ 3 | $ 37 | 179,906 | (7,146) | 557 | (132,996) | 40,361 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance as currently stated at, December 30, 2017 ,December 29, 2018 and March 31, 2018 (in shares) | 2,771,000 | 34,992,000 | ||||||
Ending balance (in shares) at Dec. 29, 2018 | 2,771,000 | 34,992,000 | ||||||
Ending balance at Dec. 29, 2018 | $ 3 | $ 38 | 183,139 | (7,146) | 579 | (137,791) | 38,822 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance as currently stated at, December 30, 2017 , December 29, 2018 and March 31, 2018 | $ 3 | $ 37 | 180,517 | (7,146) | 579 | (132,212) | 41,778 | |
Beginning balance (in shares) at Mar. 31, 2018 | 2,771,000 | 34,939,000 | ||||||
Beginning balance at Mar. 31, 2018 | $ 3 | $ 37 | 180,517 | (7,146) | 579 | (132,212) | 41,778 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (797) | (797) | ||||||
Issuance of shares in connection with restricted stock units vesting (in shares) | 33,000 | |||||||
Minimum tax withholding on RSU's | (35) | (35) | ||||||
Issuance of shares in connection with BOD Fees (in shares) | 2,000 | |||||||
Issuance of shares in connection with BOD Fees | 4 | 4 | ||||||
Share-based compensation | 156 | 156 | ||||||
Common stock dividend on preferred stock | (41) | (41) | ||||||
Effect of changes in foreign currencies | 24 | 24 | ||||||
Ending balance (in shares) at Jun. 30, 2018 | 2,771,000 | 34,974,000 | ||||||
Ending balance at Jun. 30, 2018 | $ 3 | $ 37 | 180,642 | (7,146) | 603 | (133,050) | 41,089 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (180) | (180) | ||||||
Issuance of shares in connection with restricted stock units vesting (in shares) | 9,000 | |||||||
Issuance of shares in connection with BOD Fees (in shares) | 2,000 | |||||||
Issuance of shares in connection with BOD Fees | 4 | 4 | ||||||
Share-based compensation | 580 | 580 | ||||||
Common stock dividend on preferred stock | (41) | (41) | ||||||
Effect of changes in foreign currencies | 9 | 9 | ||||||
Ending balance (in shares) at Sep. 29, 2018 | 2,771,000 | 34,985,000 | ||||||
Ending balance at Sep. 29, 2018 | $ 3 | $ 37 | 181,226 | (7,146) | 612 | (133,271) | 41,461 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Effect of new accounting adoption | 1,623 | 1,623 | ||||||
Balance as currently stated at, December 30, 2017 , December 29, 2018 and March 31, 2018 | $ 3 | $ 38 | 183,139 | (7,146) | 579 | (136,168) | 40,445 | |
Beginning balance (in shares) at Dec. 29, 2018 | 2,771,000 | 34,992,000 | ||||||
Beginning balance at Dec. 29, 2018 | $ 3 | $ 38 | 183,139 | (7,146) | 579 | (137,791) | 38,822 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (3,581) | (3,581) | ||||||
Issuance of shares in connection with restricted stock units vesting (in shares) | 437,000 | |||||||
Issuance of shares in connection with restricted stock units vesting | (288) | (288) | ||||||
Issuance of shares in connection with BOD Fees (in shares) | 4,000 | |||||||
Issuance of shares in connection with BOD Fees | 4 | 4 | ||||||
Share-based compensation | 554 | 554 | ||||||
Common stock dividend on preferred stock | (39) | (39) | ||||||
Effect of changes in foreign currencies | (5) | (5) | ||||||
Ending balance (in shares) at Mar. 30, 2019 | 2,771,000 | 35,433,000 | ||||||
Ending balance at Mar. 30, 2019 | $ 3 | $ 38 | 183,409 | (7,146) | 574 | (139,788) | 37,090 | |
Beginning balance (in shares) at Dec. 29, 2018 | 2,771,000 | 34,992,000 | ||||||
Beginning balance at Dec. 29, 2018 | $ 3 | $ 38 | 183,139 | (7,146) | 579 | (137,791) | 38,822 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | $ (6,461) | |||||||
Issuance of shares in connection with stock option exercises (in shares) | 100 | |||||||
Ending balance (in shares) at Sep. 28, 2019 | 2,771,000 | 35,924,000 | ||||||
Ending balance at Sep. 28, 2019 | $ 3 | $ 38 | 184,992 | (7,146) | $ 41 | 560 | (142,750) | $ 35,738 |
Beginning balance (in shares) at Mar. 30, 2019 | 2,771,000 | 35,433,000 | ||||||
Beginning balance at Mar. 30, 2019 | $ 3 | $ 38 | 183,409 | (7,146) | 574 | (139,788) | 37,090 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (1,457) | (1,457) | ||||||
Issuance of shares in connection with restricted stock units vesting (in shares) | 348,000 | |||||||
Issuance of shares in connection with restricted stock units vesting | (2) | (2) | ||||||
Issuance of shares in connection with BOD Fees (in shares) | 3,000 | |||||||
Issuance of shares in connection with BOD Fees | 5 | 5 | ||||||
Share-based compensation | 625 | 625 | ||||||
Common stock dividend on preferred stock | 40 | 40 | ||||||
Issuance of shares related to dividends on preferred stock | (41) | (41) | ||||||
Effect of changes in foreign currencies | (33) | (33) | ||||||
Ending balance (in shares) at Jun. 29, 2019 | 2,771,000 | 35,784,000 | ||||||
Ending balance at Jun. 29, 2019 | $ 3 | $ 38 | 184,037 | (7,146) | 40 | 541 | (141,286) | 36,227 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (1,424) | (1,424) | ||||||
Issuance of shares in connection with stock option exercises (in shares) | 100,000 | |||||||
Issuance of shares in connection with stock option exercise | 100 | 100 | ||||||
Issuance of shares in connection with restricted stock units vesting (in shares) | 2,000 | |||||||
Issuance of shares in connection with restricted stock units vesting | (2) | (2) | ||||||
Issuance of shares in connection with BOD Fees (in shares) | 5,000 | |||||||
Issuance of shares in connection with BOD Fees | 5 | 5 | ||||||
Share-based compensation | 813 | 813 | ||||||
Common stock dividend on preferred stock | (40) | |||||||
Common stock dividend on preferred stock | 40 | |||||||
Issuance of shares related to dividends on preferred stock (in shares) | 33,000 | |||||||
Issuance of shares related to dividends on preferred stock | 39 | (39) | ||||||
Effect of changes in foreign currencies | 19 | 19 | ||||||
Ending balance (in shares) at Sep. 28, 2019 | 2,771,000 | 35,924,000 | ||||||
Ending balance at Sep. 28, 2019 | $ 3 | $ 38 | $ 184,992 | $ (7,146) | $ 41 | $ 560 | $ (142,750) | $ 35,738 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Operating activities | ||
Net loss | $ (6,461) | $ (409) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 4,572 | 4,412 |
Amortization of intangible assets | 75 | 140 |
Deferred income taxes | (1,176) | 189 |
Share-based compensation expense | 1,955 | 1,704 |
Stock awards issued for non-employee director service | 13 | 11 |
Amortization of deferred financing costs | 2 | 3 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (622) | (562) |
Inventory | 1,927 | 2,702 |
Other current assets | (731) | (1,833) |
Other non-current assets | 775 | (24) |
Accounts payable and accrued expenses | 3,874 | 5,492 |
Other current liabilities | (280) | (1,197) |
Right-of-Use Obligation - Operating Leases - Current | 1,573 | |
Right-of-Use Obligation - Operating Leases - Long-term | (1,332) | |
Other non-current liabilities | 163 | 275 |
Net cash provided by operating activities | 4,327 | 10,903 |
Investing activities | ||
Additions to property and equipment | (4,686) | (4,328) |
Proceeds from sale of property and equipment | 1 | |
Net cash used in investing activities | (4,686) | (4,327) |
Financing activities | ||
Borrowings from revolving loan payable | 11,514 | 3,246 |
Payments made on revolving loan payable | (11,514) | (3,246) |
Proceeds from notes payable | 162 | |
Payments on capital leases | (453) | |
Payments on capital leases | (445) | |
Statutory tax withholding payment for share-based compensation | (290) | (430) |
Proceeds from exercise of stock options | 99 | |
Payment of liabilities related to financing activities | (100) | |
Preferred stock dividends paid | (80) | (120) |
Net cash used in financing activities | (562) | (1,095) |
Effect of exchange rate changes on cash | (2) | (31) |
Net change in cash and cash equivalents | (923) | 5,450 |
Cash and cash equivalents, beginning of period | 2,031 | 2,850 |
Cash and cash equivalents, end of period | 1,108 | 8,300 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Right-of-use financed asset acquired | 749 | |
Accrued asset purchases | 1,200 | 744 |
Fixed asset purchased through note payable | 1,684 | |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for income taxes | 85 | 63 |
Cash paid during the period for interest | $ 1,385 | $ 1,229 |
Basis of Presentation and Descr
Basis of Presentation and Description of Company | 9 Months Ended |
Sep. 28, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Description of Company | Note 1 – Basis of Presentation and Description of Company U.S. Auto Parts Network, Inc. (including its subsidiaries) is a leading online provider of aftermarket auto parts and accessories and was established in 1995. The Company entered the e-commerce sector by launching its first website in 2000 and currently derives the majority of its revenues from online sales channels. The Company sells its products to individual consumers through a network of websites and online marketplaces. Our flagship consumer websites are located at www.autopartswarehouse.com , www.carparts.com , and www.jcwhitney.com and our corporate website is located at www.usautoparts.net . References to the “Company,” “we,” “us,” or “our” refer to U.S. Auto Parts Network, Inc. and its consolidated subsidiaries. The Company’s products consist of collision parts serving the body repair market, engine parts to serve the replacement parts market, and performance parts and accessories. The collision parts category is primarily comprised of body parts for the exterior of an automobile. Our parts in this category are typically replacement parts for original body parts that have been damaged as a result of a collision or through general wear and tear. The majority of these products are sold through our websites. In addition, we sell an extensive line of mirror products, including our own private-label brand called Kool-Vue ® , which are marketed and sold as aftermarket replacement parts and as upgrades to existing parts. The engine parts category is comprised of engine components and other mechanical and electrical parts including our private label brand of catalytic converters called Evan Fischer ® . These parts serve as replacement parts for existing engine parts and are generally used by professionals and do-it-yourselfers for engine and mechanical maintenance and repair. We also offer performance versions of many parts sold in each of the above categories. Performance parts and accessories generally consist of parts that enhance the performance of the automobile, upgrade existing functionality of a specific part or improve the physical appearance or comfort of the automobile. The Company is a Delaware C corporation and is headquartered in Carson, 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 September 28, 2019 and the consolidated results of operations and cash flows the thirteen and thirty-nine weeks ended September 28, 2019 and September 29, 2018. 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 December 29, 2018, which was filed with the SEC on March 13, 2019 and all our other periodic filings, including Current Reports on Form 8‑K, filed with the SEC after the end of our 2018 fiscal year, and throughout the date of this report. During the thirteen and thirty-nine weeks ended September 28, 2019, the Company incurred a net loss of $1,424 and $6,461 respectively, compared to a net loss of $180 and $409 during the thirteen and thirty-nine weeks ended September 29, 2018, respectively. 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. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016 02, “Leases” (“ASU 2016 02”). The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard became effective for us on January 1, 2019. We recognized a cumulative adjustment of $1,623 to the opening balance of retained earnings as of the adoption date and recognized additional right-of-use (“ROU”) assets and operating lease liabilities on our consolidated balance sheet. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2018 15, “Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40)” (“ASU 2018 15”). The objective of this update is to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the effect that ASU 2018 15 will have on the consolidated financial statements and related disclosures. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
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. At September 28, 2019, our outstanding revolving loan balance was $0. The guaranteed total letters of credit balance at September 28, 2019 was $13,520, of which $10,454 was utilized and included 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 1.75%, or (b) an “alternate prime base rate” subject to an increase or reduction by up to 0.25% per annum based on the Company’s fixed charge coverage ratio. At September 28, 2019, the Company’s LIBOR based interest rate was 3.79% (on $0 principal) and the Company’s prime based rate was 5.25% (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 JP Morgan 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 $2,400, 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 $9,820 at September 28, 2019. As of the date hereof, the cash dominion period has not been in effect; accordingly, no principal payments are due. 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 April 26, 2020. |
Stockholders' Equity and Share-
Stockholders' Equity and Share-Based Compensation | 9 Months Ended |
Sep. 28, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
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 September 28, 2019: · Granted options to purchase 3,910 common shares. · Exercise of 100 options to purchase common shares. · Forfeiture of 1,482 option to purchase common shares. · Expiration of 1,163 options to purchase common shares. The following table summarizes the Company’s restricted stock unit ("RSU") activity for the thirty-nine weeks ended September 28, 2019, and details regarding the awards outstanding and exercisable at September 28, 2019 (in thousands): Weighted Average Weighted Remaining Average Contractual Aggregate Shares Exercise Price Term (in years) Intrinsic Value Vested and expected to vest at December 29, 2018 1,454 $ — Awarded 1,788 $ — Vested (1,073) $ — Forfeited (563) $ — Awards outstanding, September 28, 2019 1,606 $ — 0.49 $ 2,425 Vested and expected to vest at September 28, 2019 1,606 $ — 0.49 $ 2,425 During the thirty-nine weeks ended September 28, 2019, 726 RSUs that vested were time-based and 266 were performance-based. In addition, 81 share awards were released to two departing board members and 12 shares were issued as partial payment for director’s fee as elected by a current Board member. For the RSUs awarded, the number of shares issued on the date of vest is net of the minimum statutory withholding requirements that we pay in cash to the appropriate taxing authorities on behalf of our employees. For those employees who elect not to receive shares net of the minimum statutory withholding requirements, the appropriate taxes are paid directly by the employee. During the thirty-nine weeks ended September 28, 2019, we withheld 286 shares to satisfy $290 of employees’ tax obligations. Although shares withheld are not issued, they are treated as a common stock repurchase in our consolidated financial statements, as they reduce the number of shares that would have been issued upon vesting. For the thirteen and thirty-nine weeks ended September 28, 2019, we recorded compensation costs related to stock options and RSUs of $ 813 and $1,992, respectively. For the thirteen and thirty-nine weeks ended September 29, 2018 we recorded compensation costs related to stock options and RSUs of $580 and $1,739, respectively. As of September 28, 2019, there was unrecognized compensation expense related to stock options and RSUs of $3,108 that will be expensed through August 2023. |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 9 Months Ended |
Sep. 28, 2019 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share | Note 4 – Net (Loss) Income Per Share The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share data): Thirteen Weeks Ended Thirty-Nine Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Net income per share: (As Restated) (As Restated) Numerator: Net Loss $ (1,424) $ (180) (6,461) (409) Dividends on Series A Convertible Preferred Stock 40 41 120 120 Net loss available to common shares $ (1,464) $ (221) $ (6,581) $ (529) Denominator: Weighted-average common shares outstanding (basic) 35,856 34,983 35,623 34,925 Common equivalent shares from common stock options, restricted stock, preferred stock and warrants — — — — Weighted-average common shares outstanding (diluted) 35,856 34,983 35,623 34,925 Basic and diluted net loss per share $ (0.04) $ (0.01) $ (0.18) $ (0.02) The anti-dilutive securities, which are excluded from the calculation of diluted earnings per share due to their anti-dilutive effect are as follows (in thousands): Thirteen Weeks Ended Thirty-Nine Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Performance stock units — — 4 — Restricted stock units 35 490 72 507 Series A Convertible Preferred Stock 2,771 2,771 2,771 2,771 Options to purchase common stock 6,855 5,239 6,540 5,428 Total 9,661 8,500 9,387 8,706 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
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 2014‑2018 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 2016‑2018 remain open. For the thirteen and thirty-nine weeks ended September 28, 2019 the effective tax rate for the Company’s continuing operations was 27.9% and 13.6%, respectively. The effective tax rate for the thirteen and thirty-nine weeks ended September 28, 2019 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, and 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. 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. 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 September 28, 2019, there was no material change from fiscal year ended 2018 in the amount of the Company's deferred tax assets that are more likely than not to be realized in future years. For the thirteen and thirty-nine weeks ended September 29, 2018, the effective tax rate for the Company’s continuing operations was -4.7% and -194.2%, respectively. The effective tax rate for the thirteen and thirty-nine weeks ended September 29, 2018 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, and 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. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 6 – Commitments and Contingencies Facilities Leases Facility rent expense for the thirteen and thirty-nine weeks ended September 28, 2019 was $648 and $1,634, respectively, compared to $4 32 and $ 1,319 for the same periods in 2018. Quantitative information regarding the Company’s leases as of September 28, 2019 is as follows (in thousands): Thirteen weeks ended Thirty-nine weeks ended September 28, 2019 September 28, 2019 Components of lease cost Finance lease cost components Amortization of finance lease assets $ 260 $ 734 Interest on finance lease liabilities 168 509 Total finance lease costs $ 428 $ 1,243 Operating lease components Operating lease cost $ 508 $ 972 Short-term lease cost — — Total operating lease costs $ 508 $ 972 Total lease cost $ 936 $ 2,215 Supplemental cash flow information related to our operating leases is as follows for the period ended September 28, 2019: Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 359 $ 778 Operating cash outflow from financing leases 168 509 Financing cash outflow from financing leases 154 453 Weighted-average remaining lease term-finance leases (in years) 12.4 Weighted-average remaining lease term-operating leases (in years) 3.8 Weighted-average discount rate-finance leases 7.65 % Weighted-average discount rate-operating leases 5.60 % Lease commitments as of September 28, 2019 were as follows (in thousands): Finance Leases Operating Leases Total 2019 $ 376 $ 476 $ 852 2020 1,276 1,631 2,907 2021 1,108 1,336 2,444 2022 1,117 1,043 2,160 2023 1,131 761 1,892 Thereafter 9,912 651 10,563 Total minimum payments required 14,920 5,898 20,818 Less portion representing interest 5,635 611 6,246 Present value of lease obligations $ 9,285 $ 5,287 $ 14,572 Less current portion of lease obligations 686 1,573 2,259 Long-term portion of lease obligations $ 8,599 $ 3,714 $ 12,313 On August 8, 2019, the Company entered into a financing arrangement with a third-party financial institution related to the development of the Company’s third warehouse which is located in Las Vegas, Nevada. The financing arrangement matures in April 2022 and has an effective interest rate of approximately 7.70% per annum. The total borrowings under the financing arrangement shall not exceed $2,000. The arrangement also requires a 25% deposit. The Company received proceeds of $162 from the note payable for the period ended September 28, 2019. At September 28, 2019, the Company recorded a receivable of $94 associated with proceeds to be received from the note payable. A deposit of $470 was recorded as of September 28, 2019. At September 28, 2019, the total outstanding balance of the note payable was $1,684, of which $606 is recorded as current liability and $1,078 is recorded as non-current liability in the consolidated balance sheet. Legal Matters Asbestos . A wholly-owned subsidiary of the Company, Automotive Specialty Accessories and Parts, Inc. and its wholly-owned subsidiary Whitney Automotive Group, Inc. ("WAG"), are named defendants in several lawsuits involving claims for damages caused by installation of brakes during the late 1960’s and early 1970’s that contained asbestos. WAG marketed certain brakes, but did not manufacture any brakes. WAG maintains liability insurance coverage to protect its and the Company’s assets from losses arising from the litigation and coverage is provided on an occurrence rather than a claims made basis, and the Company is not expected to incur significant out-of-pocket costs in connection with this matter that would be material to its consolidated financial statements. Customs Issues. On April 2, 2018, the Company filed a complaint against the United States of America, the United States Department of Homeland Security (“DHS”), Secretary Kirstjen Nielsen, and Chief Frederick Eisler (collectively, the “Defendants”) in the United States Court of International Trade (the “Court”) (Case No. 1:18‑cv‑00068) seeking (i) relief from a single entry bonding requirement set by the United States Customs and Border Protection (“CBP”), an agency of DHS, at a level equivalent to three times the commercial invoice value of each shipment (the “Bonding Requirement”), (ii) a declaration that the Bonding Requirement is unlawful, (iii) an injunction prohibiting additional delayed entry for all of the Company’s currently-held goods being denied entry into the United States by CBP and all of the Company’s future imports, and (iv) recovery of our attorneys’ fees incurred in connection with the action. The genesis for the action is CBP’s wrongful seizure of aftermarket vehicle grilles and associated parts being imported by the Company (“Repair Grilles”) on the basis that the Repair Grilles allegedly bear counterfeit trademarks of the original automobile manufacturers (i.e., original-equipment manufacturers, or “OEMs”). Generally, these trademarks, as applied against the Company, purport to cover the shape of the grilles themselves, or the OEM’s logo or name. However, the Repair Grilles are not counterfeit and do not cause a likelihood of confusion amongst purchasers or the relevant consuming public which are prerequisites for seizures under the pertinent provision of the Tariff Act being relied upon by CBP to seize the Repair Grilles. On May 25, 2018, the Court granted the Company’s motion for preliminary injunction and ordered that (i) the Defendants are restrained from enforcing the 3X Bonding Requirement, the Three Percent Bonding Requirement, and any other enhanced bonding requirement on the Company in order to obtain entry of its shipments into the United States, and (ii) CBP shall use its best efforts to process all of the Company’s shipping containers and release all of the Company’s imports not implicated by CBP’s underlying trademark infringement allegations in a timely manner. The Court’s decision may be appealed by DHS, and no assurance may be given as to the outcome of any such appeal. The Court’s May 25, 2018 decision is described herein in summary fashion only. The full text of the decision should be read in its entirety. Copies of the decision are available on the Court’s electronic filing system (located on the Court’s docket at No. 18‑00068). Despite the favorable court order, the Company continued to experience issues with product flow arising from CBP’s inability to process the Company’s shipping containers in an expeditious fashion. As a result, the Company incurred significant port and carrier fees resulting from the increased period of time the Company’s containers remained at the port. The fees associated with this unreleased product, as well as the increased legal costs associated with the product seizures and the bonding litigation, aggregated to $3 and $ 97 the thirteen and thirty-nine weeks ended September 28, 2019, respectively. On July 24, 2019, the Company reached confidential settlement terms with CBP to settle these matters. As part of the settlement: (i) Customs will release to the Company certain inventory mistakenly seized, (ii) the Company and CBP enter into mutual releases, and (iii) without admitting liability, the Company will forfeit to CBP certain goods which CBP deems to be violative. All outstanding CBP enforcement issues are resolved, and the Company has no outstanding damage or duty claims from CBP. All product not implicated by the trademark infringement allegations has been released by CBP. Ordinary course litigation. The Company is subject to legal proceedings and claims which arise in the ordinary course of its business. As of the date hereof, the Company believes that the final disposition of such matters will not have a material adverse effect on the financial position, results of operations or cash flow of the Company. The Company maintains liability insurance coverage to protect the Company’s assets from losses arising out of or involving activities associated with ongoing and normal business operations. |
Product Information
Product Information | 9 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Product Information | Note 7 – Product Information As described in Note 1 above, the Company’s products consist of collision parts serving the body repair market, engine parts to serve the replacement parts 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 September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Private Label Collision 63 % 55 % 60 % 57 % Engine 23 % 20 % 20 % 18 % Performance 1 % 1 % 1 % 1 % Branded Collision 1 % 1 % 1 % 1 % Engine 6 % 12 % 10 % 11 % Performance 6 % 11 % 8 % 12 % Total 100 % 100 % 100 % 100 % |
Basis of Presentation and Des_2
Basis of Presentation and Description of Company (Policies) | 9 Months Ended |
Sep. 28, 2019 | |
Accounting Policies [Abstract] | |
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 September 28, 2019 and the consolidated results of operations and cash flows the thirteen and thirty-nine weeks ended September 28, 2019 and September 29, 2018. 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 December 29, 2018, which was filed with the SEC on March 13, 2019 and all our other periodic filings, including Current Reports on Form 8‑K, filed with the SEC after the end of our 2018 fiscal year, and throughout the date of this report. During the thirteen and thirty-nine weeks ended September 28, 2019, the Company incurred a net loss of $1,424 and $6,461 respectively, compared to a net loss of $180 and $409 during the thirteen and thirty-nine weeks ended September 29, 2018, respectively. 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. |
Recently Adopted and Recent Accounting Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016 02, “Leases” (“ASU 2016 02”). The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard became effective for us on January 1, 2019. We recognized a cumulative adjustment of $1,623 to the opening balance of retained earnings as of the adoption date and recognized additional right-of-use (“ROU”) assets and operating lease liabilities on our consolidated balance sheet. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2018 15, “Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40)” (“ASU 2018 15”). The objective of this update is to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the effect that ASU 2018 15 will have on the consolidated financial statements and related disclosures. |
Stockholders' Equity and Shar_2
Stockholders' Equity and Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Restricted Stock Unit Activity | The following table summarizes the Company’s restricted stock unit ("RSU") activity for the thirty-nine weeks ended September 28, 2019, and details regarding the awards outstanding and exercisable at September 28, 2019 (in thousands): Weighted Average Weighted Remaining Average Contractual Aggregate Shares Exercise Price Term (in years) Intrinsic Value Vested and expected to vest at December 29, 2018 1,454 $ — Awarded 1,788 $ — Vested (1,073) $ — Forfeited (563) $ — Awards outstanding, September 28, 2019 1,606 $ — 0.49 $ 2,425 Vested and expected to vest at September 28, 2019 1,606 $ — 0.49 $ 2,425 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share data): Thirteen Weeks Ended Thirty-Nine Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Net income per share: (As Restated) (As Restated) Numerator: Net Loss $ (1,424) $ (180) (6,461) (409) Dividends on Series A Convertible Preferred Stock 40 41 120 120 Net loss available to common shares $ (1,464) $ (221) $ (6,581) $ (529) Denominator: Weighted-average common shares outstanding (basic) 35,856 34,983 35,623 34,925 Common equivalent shares from common stock options, restricted stock, preferred stock and warrants — — — — Weighted-average common shares outstanding (diluted) 35,856 34,983 35,623 34,925 Basic and diluted net loss per share $ (0.04) $ (0.01) $ (0.18) $ (0.02) |
Anti-Dilutive Securities Excluded from Calculation of Diluted Earnings Per Share | The anti-dilutive securities, which are excluded from the calculation of diluted earnings per share due to their anti-dilutive effect are as follows (in thousands): Thirteen Weeks Ended Thirty-Nine Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Performance stock units — — 4 — Restricted stock units 35 490 72 507 Series A Convertible Preferred Stock 2,771 2,771 2,771 2,771 Options to purchase common stock 6,855 5,239 6,540 5,428 Total 9,661 8,500 9,387 8,706 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of quantitative information | Quantitative information regarding the Company’s leases as of September 28, 2019 is as follows (in thousands): Thirteen weeks ended Thirty-nine weeks ended September 28, 2019 September 28, 2019 Components of lease cost Finance lease cost components Amortization of finance lease assets $ 260 $ 734 Interest on finance lease liabilities 168 509 Total finance lease costs $ 428 $ 1,243 Operating lease components Operating lease cost $ 508 $ 972 Short-term lease cost — — Total operating lease costs $ 508 $ 972 Total lease cost $ 936 $ 2,215 Supplemental cash flow information related to our operating leases is as follows for the period ended September 28, 2019: Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 359 $ 778 Operating cash outflow from financing leases 168 509 Financing cash outflow from financing leases 154 453 Weighted-average remaining lease term-finance leases (in years) 12.4 Weighted-average remaining lease term-operating leases (in years) 3.8 Weighted-average discount rate-finance leases 7.65 % Weighted-average discount rate-operating leases 5.60 % |
Schedule of lease commitments - Finance lease | Lease commitments as of September 28, 2019 were as follows (in thousands): Finance Leases Operating Leases Total 2019 $ 376 $ 476 $ 852 2020 1,276 1,631 2,907 2021 1,108 1,336 2,444 2022 1,117 1,043 2,160 2023 1,131 761 1,892 Thereafter 9,912 651 10,563 Total minimum payments required 14,920 5,898 20,818 Less portion representing interest 5,635 611 6,246 Present value of lease obligations $ 9,285 $ 5,287 $ 14,572 Less current portion of lease obligations 686 1,573 2,259 Long-term portion of lease obligations $ 8,599 $ 3,714 $ 12,313 |
Schedule of lease commitments - Operating lease | Finance Leases Operating Leases Total 2019 $ 376 $ 476 $ 852 2020 1,276 1,631 2,907 2021 1,108 1,336 2,444 2022 1,117 1,043 2,160 2023 1,131 761 1,892 Thereafter 9,912 651 10,563 Total minimum payments required 14,920 5,898 20,818 Less portion representing interest 5,635 611 6,246 Present value of lease obligations $ 9,285 $ 5,287 $ 14,572 Less current portion of lease obligations 686 1,573 2,259 Long-term portion of lease obligations $ 8,599 $ 3,714 $ 12,313 |
Product Information (Tables)
Product Information (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Product Type | The following table summarizes the approximate distribution of the Company’s revenue by product type. Thirteen Weeks Ended Thirty-Nine Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Private Label Collision 63 % 55 % 60 % 57 % Engine 23 % 20 % 20 % 18 % Performance 1 % 1 % 1 % 1 % Branded Collision 1 % 1 % 1 % 1 % Engine 6 % 12 % 10 % 11 % Performance 6 % 11 % 8 % 12 % 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 | 9 Months Ended | ||||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Jan. 01, 2019 | Dec. 29, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||
Net income (loss) | $ (1,424) | $ (1,457) | $ (3,581) | $ (180) | $ (797) | $ 568 | $ (6,461) | $ (409) | ||
Cumulative effect adjustment | $ (142,750) | $ (142,750) | $ (137,791) | |||||||
ASU 2016-02 | Restatement Adjustment | ||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||
Cumulative effect adjustment | $ 1,623 |
Borrowings (Details)
Borrowings (Details) - JP Morgan Chase Bank | 9 Months Ended |
Sep. 28, 2019USD ($) | |
Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity (up to) | $ 30,000,000 |
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 | $ 2,400,000 |
Minimum fixed charge ratio if less than minimum excess availability | 1 |
Excess availability under credit facility | $ 9,820,000 |
Principal payments due | 0 |
Letter of Credit | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity (up to) | 13,520,000 |
Outstanding letters of credit amount | $ 10,454,000 |
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) | 1.75% |
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) | 0.25% |
Interest rate (percent) | 5.25% |
LIBOR based interest rate, principal amount | $ 0 |
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Interest rate (percent) | 3.79% |
LIBOR based interest rate, principal amount | $ 0 |
Stockholders' Equity and Shar_3
Stockholders' Equity and Share-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock options granted (in shares) | 3,910,000 | |||
Number of options exercised (in shares) | 100 | |||
Number of stock options forfeited (in shares) | 1,482,000 | |||
Number of stock options expired (in shares) | 1,163,000 | |||
Number of share awards issued for payment of fees. | 12 | |||
Time Based RSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested (in shares) | 726,000 | |||
Performance based RSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested (in shares) | 266,000 | |||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested (in shares) | 1,073,000 | |||
Number of share awards released to two departing board member | 81 | |||
Shares withheld to satisfy employee tax obligations (in shares) | 286,000 | |||
Adjustment related employee tax obligations | $ 290 | |||
Compensation expense | $ 813 | $ 580 | 1,992 | $ 1,739 |
Unrecognized compensation expense | $ 3,108 | $ 3,108 |
Stockholders' Equity and Shar_4
Stockholders' Equity and Share-Based Compensation - Summary of Restricted Stock Unit Activity (Details) - Restricted stock units shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 28, 2019USD ($)shares | |
Shares | |
Vested and expected to vest at December 29, 2018 (in shares) | 1,454 |
Awarded (in shares) | 1,788 |
Vested (in shares) | (1,073) |
Forfeited (in shares) | (563) |
Awards outstanding, September 28, 2019 | 1,606 |
Vested and expected to vest at September 28, 2019 (in shares) | 1,606 |
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) | 5 months 27 days |
Vested and expected to vest, weighted average remaining contractual term (in years | 5 months 27 days |
Awards outstanding, aggregate intrinsic value | $ | $ 2,425 |
Vested and expected to vest, aggregate intrinsic value | $ | $ 2,425 |
Net (Loss) Income Per Share - C
Net (Loss) Income Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Numerator: | ||||
Net Loss | $ (1,424) | $ (180) | $ (6,461) | $ (409) |
Dividends on Series A Convertible Preferred Stock | 40 | 41 | 120 | 120 |
Net loss available to common shares | $ (1,464) | $ (221) | $ (6,581) | $ (529) |
Denominator: | ||||
Weighted-average common shares outstanding (basic) (in shares) | 35,856 | 34,983 | 35,623 | 34,925 |
Weighted-average common shares outstanding (diluted) (in shares) | 35,856 | 34,983 | 35,623 | 34,925 |
Basic and diluted net loss per share | $ (0.04) | $ (0.01) | $ (0.18) | $ (0.02) |
Net (Loss) Income Per Share - A
Net (Loss) Income Per Share - Anti-Dilutive Securities Excluded from Calculation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from calculation of diluted earnings per share (in shares) | 9,661 | 8,500 | 9,387 | 8,706 |
Performance stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from calculation of diluted earnings per share (in shares) | 4 | |||
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from calculation of diluted earnings per share (in shares) | 35 | 490 | 72 | 507 |
Series A Convertible Preferred Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from calculation of diluted earnings per share (in shares) | 2,771 | 2,771 | 2,771 | 2,771 |
Options to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from calculation of diluted earnings per share (in shares) | 6,855 | 5,239 | 6,540 | 5,428 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 27.90% | (4.70%) | 13.60% | (194.20%) |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | Jul. 24, 2019 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 |
Commitments and Contingencies Disclosure [Abstract] | |||||
Facility rent expense | $ 432,000 | $ 1,319,000 | |||
Facility rent expense | $ 648,000 | $ 1,634,000 | |||
Fees associated with unreleased product | $ 3,000 | $ 97,000 | |||
Number of outstanding damage or duty claims from CBP | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Future Minimum Lease Payments Under Non-Cancellable Operating Leases (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 28, 2019USD ($) | Sep. 28, 2019USD ($) | |
Finance lease cost components | ||
Amortization of finance lease assets | $ 260 | $ 734 |
Interest on finance lease liabilities | 168 | 509 |
Total finance lease costs | 428 | 1,243 |
Operating lease components | ||
Operating lease cost | 508 | 972 |
Total operating lease costs | 508 | 972 |
Total lease cost | 936 | 2,215 |
Operating cash outflow from operating leases | 359 | 778 |
Operating cash outflow from financing leases | 168 | 509 |
Financing cash outflow from financing leases | $ 154 | $ 453 |
Weighted-average remaining lease term-finance leases (in years) | 12 years 4 months 24 days | 12 years 4 months 24 days |
Weighted-average remaining lease term-operating leases (in years) | 3 years 9 months 18 days | 3 years 9 months 18 days |
Weighted-average discount rate-finance leases | 7.65% | 7.65% |
Weighted-average discount rate-operating leases | 5.60% | 5.60% |
Commitments and Contingencies_3
Commitments and Contingencies - Lease commitments (Details) $ in Thousands | Sep. 28, 2019USD ($) |
Finance Leases | |
2019 | $ 376 |
2020 | 1,276 |
2021 | 1,108 |
2022 | 1,117 |
2023 | 1,131 |
Thereafter | 9,912 |
Total minimum payments required | 14,920 |
Less portion representing interest | 5,635 |
Present value of lease obligations | 9,285 |
Less current portion of lease obligations | 686 |
Long-term portion of lease obligations | 8,599 |
Operating Leases | |
2019 | 476 |
2020 | 1,631 |
2021 | 1,336 |
2022 | 1,043 |
2023 | 761 |
Thereafter | 651 |
Total minimum payments required | 5,898 |
Less portion representing interest | 611 |
Present value of lease obligations | 5,287 |
Less current portion of lease obligations | 1,573 |
Long-term portion of lease obligations | 3,714 |
Finance and Operating Leases | |
2019 | 852 |
2020 | 2,907 |
2021 | 2,444 |
2022 | 2,160 |
2023 | 1,892 |
Thereafter | 10,563 |
Total minimum payments required | 20,818 |
Less portion representing interest | 6,246 |
Present value of lease obligations | 14,572 |
Less current portion of lease obligations | 2,259 |
Long-term portion of lease obligations | $ 12,313 |
Commitments and Contingencies_4
Commitments and Contingencies - Financing Arrangement (Details) - USD ($) $ in Thousands | Aug. 08, 2019 | Sep. 28, 2019 |
Short-term Debt [Line Items] | ||
Proceeds from notes payable | $ 162 | |
Notes payable, current portion | 606 | |
Notes payable, non-current portion | 1,078 | |
Financing arrangement - Las Vegas | ||
Short-term Debt [Line Items] | ||
Effective interest rate | 7.70% | |
Deposit rate (as percentage) | 25.00% | |
Receivable associated with proceeds from notes payable | 94 | |
Deposit | 470 | |
Total outstanding balance of the note payable | $ 1,684 | |
Financing arrangement - Las Vegas | Maximum | ||
Short-term Debt [Line Items] | ||
Maximum borrowings under the arrangement | $ 2,000 |
Product Information (Details)
Product Information (Details) - Sales Revenue, Product Line - Product Concentration Risk - Base USAP | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Private Label, Collision | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 63.00% | 55.00% | 60.00% | 57.00% |
Private Label, Engine | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 23.00% | 20.00% | 20.00% | 18.00% |
Private Label, Performance | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 1.00% | 1.00% | 1.00% | 1.00% |
Branded, Collision | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 1.00% | 1.00% | 1.00% | 1.00% |
Branded, Engine | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 6.00% | 12.00% | 10.00% | 11.00% |
Branded, Performance | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 6.00% | 11.00% | 8.00% | 12.00% |
Uncategorized Items - prts-2019
Label | Element | Value |
Preferred Stock [Member] | ||
Stockholders Equity Shares Including Portion Attributable To Noncontrolling Interest Adjusted Balance 1 | prts_StockholdersEquitySharesIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 2,771,000 |
Common Stock [Member] | ||
Stockholders Equity Shares Including Portion Attributable To Noncontrolling Interest Adjusted Balance 1 | prts_StockholdersEquitySharesIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 34,666,000 |