CarParts.com, Inc.

Good afternoon. At this time, all participants will be in a listen-only mode. After the presentation, there will be a question and answer session. Please note, this call is being recorded. I would now like to pass the conference over to our host, Tina Meir Farsi, Senior Vice President of Global Communications and Culture. Please go ahead.

Hello, everyone, and thank you for joining us for the CarParts.com First Quarter 2023 Conference Call. I'd like to start by welcoming the investors and others who are attending this meeting remotely. Joining me today from the company are David Mignon, Chief Executive Officer, Ryan Lockwood, Chief Financial Officer, and Michael Huffaker, Chief Operating Officer. Before I turn it over to David to start the meeting, I have some important disclosures. The prepared remarks and responses to your questions could contain certain forward-looking statements related to the business under the federal securities laws. Actual results may differ materially from those contained in or implied by these forward-looking statements due to the risks and uncertainties associated with the business. For a discussion of the material risks and other important factors that could affect results, please refer to the carparts.com annual report on Form 10-K and 10-Qs filed with the SEC, both of which can be found on the Investor Relations website. On the call, both GAAP and non-GAAP financial measures will be discussed. A reconciliation of GAAP to non-GAAP financial measures is provided in the CarParts.com press release issued today. And with that, I would now like to turn the call over to David.

Thank you, Tina, and good afternoon, everyone, and thank you for joining us. Today, we reported $175 million of sales, our 13th consecutive quarter of year-over-year growth, up 6% from the prior year. On the two-year stack, revenues for the quarter are up 20%. Adjusted EBITDA was $9.4 million. I'm entering my fifth year here at CarParts.com, and when I take a step back to look at what our team has accomplished, it is astounding. Over the last four years, our company underwent a full transformation, which has significantly improved sales and adjusted EBITDA. Comparing 2018 to our trailing 12 months, we have seen meaningful improvements across key financial and operational metrics. Specifically, One, we increased revenues by an impressive 132% from $289 million to $671 million. This growth was driven by a relentless focus on technology, inventory forecasting, supply chain, and data science. Two, we nearly tripled gross profit from $79 million to a record $232 million. Gross margin also increased from 27% to 35%. These increases were a result of finding and fixing gaps in the fundamentals of the business, including cost optimization, inbound and outbound freight management, improved global sourcing, assortment planning, and overall supply chain execution. Three, also gross profit per employee more than doubled from $75,000 to $152,000. We did this by realigning our resources and controlling costs. all while creating a culture of high performance and excellence. Four. On the profitability side, we are particularly proud of the significant increase in EBITDAs, which has grown by a remarkable 333%, from $6 million to $26 million, almost quintupling. This reflects both our commitment to maintaining a disciplined approach to expense management and our focus on driving profitable growth. Five. We have more than doubled book value per share from $0.94 to $2.02 by reducing liabilities and improving the efficiency of our assets. Six, our cash position has also significantly improved, increasing by nearly 25 times from $2 million to $49 million. Seven, trade letters of credit and preferred stock outstanding have been reduced from $17.5 million to zero today. 8. Visitors to CarParts.com have more than tripled from 28 million to 100 million. With our unrelenting focus on improving the customer experience, we have reduced the click-to-ship time in our fulfillment centers from days to just hours. This not only resulted in a notable improvement in customer satisfaction, but also an increase in repeat purchase revenues. Our warehouse footprint has doubled. We now have five fulfillment centers, which allow us to reach over 98% of our customers in two days transit time. 11, recently, and based on input from our employees, CarParts.com was named one of Los Angeles Business Journal's Best Places to Work for the third year in a row. And our Manila office was awarded Best Workplaces Asia. These are just a few acknowledgments of not only the results we have delivered, but of the extraordinary culture we have built. Fostering a shared mentality of open-mindedness, we pride ourselves on being a place where team members feel included and valued. Twelve, in addition, we published our first corporate social responsibility report. The report is an outstanding reflection of the company and our commitment to our people and communities, the planet, and ethics and governance. 13, lastly, our company's board of director is stronger and more diverse than ever. To better reflect our company's customer base, we have put a greater focus on diversity of ethnicity, gender, and age with a wide range of business experience and technical expertise. There's no denying that no matter how you look at it, what the team has accomplished over the last four years is truly remarkable. Our commitment to our customers, shareholders, and employees remains unwavering. As we look ahead, we believe we can continue to drive growth, profitability, and shareholder returns by consistently focusing on the following four areas. Outstanding customer service. Every decision we make at carparts.com starts with the customer. By leveraging our two-step distribution, we are reaching our customers faster than ever while passing on savings to them. In addition, for our new and returning customers, we recently expanded our buy now, pay later option increasing their purchasing power. As a reminder, over one third of our e-commerce revenue come from repeat customers, and we expect this number to grow over time. Financial discipline, managing resources effectively, controlling expenses, and making sound investments to ensure long-term financial stability and growth is at the heart of everything we do. Given the economic climate, maintaining a solid, healthy balance sheet is a top priority. Excluding working capital changes, we have generated more cash from operations over the last 12 months than at any point in the company's history. Innovation. We will continue to make calculated bets with new ideas that improve products, services, and processes to better service our customers and stay ahead of our competition. Our goal is to remove the friction from a notoriously burdensome automotive repair process. We're happy with the foundation we have built and are optimistic about what comes next. We have gained tremendous amount of data from our get it installed bookings and are using that information to continue developing the program and ultimately help solve our customers' repair needs. I do want to point out that none of these initiatives materially impact the bottom line or deviate us away from our focus on financial discipline. Operational excellence. Every day, we are working towards ways to optimize business processes and systems to increase efficiency, reduce cost, and improve customer satisfaction. To give you more color, I would like to turn it over to Michael, who will provide further details on our operating initiatives. Go ahead, Michael.