U.S. Auto Parts assumes no obligation to revise any forward looking projections that may be made in today’s release or call. Please note that on today’s call in addition to discussing the GAAP financial results and the outlook for the company the following non-GAAP financial measures will be discussed, EBITDA and adjusted EBITDA. An explanation of U.S. Auto Parts use of these non-GAAP financial measures in this call and the reconciliation between GAAP and non-GAAP measures required by SEC Regulation G is included in U.S. Auto Parts press release today, which again can be found on the Investor Relations section of the company’s Web site.
The non-GAAP information is not a substitute for any performance measure derived in accordance with GAAP and the use of such non-GAAP measures has limitations which are detailed in the company’s press release.
And with that I would now like to turn the call over to Ted Sanders.
Ted SandersThank you, Shannon, and good afternoon everyone. On today’s call I will provide a summary overview of the first quarter 2010 financial results and operating metrics. I will then turn the call over to Shane, who will provide his thoughts on the quarter and the progress we are making on positioning U.S. Auto Parts for long-term growth. We will then open the call up to take your questions. Unless otherwise stated this quarter refers to Q1 2010 and last year refers to Q1 2009. And comparisons are Q1 2010 compared with Q1 2009. Also percentage and basis points discussed are calculated using net sales with the exception of advertising which is calculated using net Internet sales. Adjusted EBITDA for this quarter was $5.4 million. This compares to adjusted EBITDA of $3.0 million last year, an 81% increase. Adjusted EBITDA excludes non-cash share-based compensation of $900,000 this quarter and $1.0 million last year. This quarter’s net sales increased 41.8% from last year. Online sales increased 42.0% and off-line sales increased 40.7%.