U.S. Auto Parts Network, Inc (PRTS) has reported a 74.04 percent plunge in profit for the quarter ended Apr. 01, 2017. The company has earned $0.26 million, or $0.02 a share in the quarter, compared with $0.99 million, or $0.04 a share for the same period last year. Revenue during the quarter went up marginally by 0.11 percent to $80.83 million from $80.75 million in the previous year period. Gross margin for the quarter contracted 95 basis points over the previous year period to 29.43 percent. Total expenses were 98.51 percent of quarterly revenues, up from 97.63 percent for the same period last year. That has resulted in a contraction of 88 basis points in operating margin to 1.49 percent.
Operating income for the quarter was $1.20 million, compared with $1.91 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $4.03 million compared with $4.34 million in the prior year period. At the same time, adjusted EBITDA margin contracted 40 basis points in the quarter to 4.98 percent from 5.38 percent in the last year period.
“Despite a soft month of sales in February, we were able to recover and grow overall revenues while remaining profitable for the quarter,” said Aaron Coleman, chief executive officer of U.S. Auto Parts. “We also continued to carry no revolver debt while generating strong free cash flow, a key objective for us in 2017. We experienced a shift in channel mix during the quarter, with our lower-margin online marketplace sales increasing 24%. This was the primary driver of our margin compression in Q1, however, we quickly addressed this dynamic by optimizing our customer acquisition cost accordingly.”
For fiscal year 2017, U.S. Auto Parts Network expects net income to be in the range of $4.80 million to $7.80 million.
Operating cash flow drops significantly
U.S. Auto Parts Network, Inc has generated cash of $7.56 million from operating activities during the quarter, down 26.27 percent or $ 2.69 million, when compared with the last year period. The company has spent $1.22 million cash to meet investing activities during the quarter as against cash outgo of $1.40 million in the last year period.
The company has spent $5.77 million cash to carry out financing activities during the quarter as against cash outgo of $9.84 million in the last year period.
Cash and cash equivalents stood at $7.20 million as on Apr. 01, 2017, up 58.48 percent or $2.66 million from $4.54 million on Apr. 02, 2016.
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