Dépêches
PFSweb Reports 27% Service Fee growth in Second Quarter
Dépèche transmise le 11 août 2011 par Business Wire
PLANO, Texas--(BUSINESS WIRE)--PFSweb, Inc. (Nasdaq: PFSW), an international provider of end-to-end web commerce solutions, today announced its financial results for the second quarter and six months ended June 30, 2011.
“Our financial results for the second quarter were driven by growing momentum in our Service Fee business, as several new End2End eCommerce programs have ramped up”
“Our financial results for the second quarter were driven by growing momentum in our Service Fee business, as several new End2End eCommerce programs have ramped up,” stated Mark Layton, Chairman and Chief Executive Officer of PFSweb. “We are trending ahead of our previously targeted 20% service fee revenue growth for the year as we continue to see exciting new opportunities emerge from both new client agreements as well as existing programs. Most recently, we implemented a customized End2End solution for Starbucks’ new, state-of-the-art eCommerce site, which was launched the last week of July. We continue to have success in winning further new contracts and are currently in the process of implementing many new relationships that will launch either later in CY2011 or early 2012.”
Summary of consolidated results for the Second quarter ended June 30, 2011:
- Total revenue was $68.0 million for the second quarter of 2011 compared to $66.4 million for second quarter of 2010;
- Service Fee revenue increased 26.6% to $21.0 million, compared with $16.6 million for the same period in 2010;
- Adjusted EBITDA (as defined) was $1.1 million for both the second quarter of 2011 as well as 2010.
- Net loss was $1.2 million, or $0.10 per basic and diluted share, compared to net loss of $1.5 million, or $0.14 per basic and diluted share, for the second quarter of 2010. Net loss for the second quarter of 2011 included $14,000 of income from discontinued operations related to eCOST.com, compared to a $0.4 million net loss from discontinued operations related to eCOST.com for the same period last year;
- Non-GAAP net loss (as defined) was $0.8 million, or $0.07 per basic and diluted share, in both quarters ended June 30, 2011 and 2010;
- Total cash, cash equivalents and restricted cash was $20.2 million as of June 30, 2011 compared to $20.3 million as of December 31, 2010.
Summary of consolidated results for the six months ended June 30, 2011:
- Total reported revenue was $140.4 million compared to $134.6 million for the six months ended June 30, 2010;
- Service Fee revenue increased 22.5% to $39.9 million, compared with $32.5 million for the six months ended June 30, 2010;
- Adjusted EBITDA (as defined) was $1.5 million compared to $1.9 million for the six months ended June 30, 2010;
- Net loss was $3.5 million, or $0.28 per basic and diluted share, compared to net loss of $2.7 million or $0.26 per basic and diluted share, for the six months ended June 30, 2010. Net loss for the first six months of 2011 included a $0.6 million loss from discontinued operations related to eCOST.com compared to a $0.4 million loss from discontinued operations related to eCOST.com in the same period last year;
- Non-GAAP net loss was $2.2 million, or $0.18 per basic and diluted share, compared to a non-GAAP net loss of $1.9 million, or $0.18 per basic and diluted share, for the six months ended June 30, 2010.
“With the momentum we are experiencing in our service fee business, we have elected to make incremental investments in personnel, facilities, sales and marketing and technology in an effort to capture this exciting market opportunity. We are focused on striking a careful balance between investing to embrace growth and improving our overall financial performance. As such, while we expect to continue to make investments in our future, resulting in higher SG&A costs, we also continue to target adjusted EBITDA of between $6.0 million and $7.0 million for CY2011.
“Looking ahead, we remain excited by our potential to continue to build upon our successes as the overall eCommerce market is flush with opportunities, including both new client agreements as well as organic growth through existing programs. This is partially being driven by the ever evolving Manufacturer Direct to Consumer web commerce channel where we continue to see opportunities from well-known fashion and cosmetic brands as well as consumer packaged goods companies,” concluded Mr. Layton.
Conference Call Information
Management will host a conference call at 11:00 am Eastern Time (10:00 am Central Time) on Thursday, August 11, 2011, to discuss the latest corporate developments and results. To listen to the call, please dial (888) 562-3356 and enter the pin number 85084423 at least five minutes before the scheduled start time. Investors can also access the call in a “listen only” mode via the Internet at the Company’s website, www.pfsweb.com. Please allow extra time prior to the call to visit the site and download any necessary audio software.
A digital replay of the conference call will be available through September 11, 2011 at (855) 859-2056, pin number 85084423. The replay also will be available at the Company’s website for a limited time.
Non-GAAP Financial Measures
This news release may contain certain non-GAAP measures, including non-GAAP net income (loss), Earnings Before Interest, Income Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA.
Non-GAAP net income (loss) represents net income (loss) calculated in accordance with U.S. GAAP as adjusted for the impact of non-cash stock-based compensation expense and income (loss) from discontinued operations.
EBITDA represents earnings (or losses) before income (loss) from discontinued operations, interest, income taxes, depreciation, and amortization. Adjusted EBITDA further eliminates the effect of stock-based compensation.
Non-GAAP net income (loss), EBITDA and Adjusted EBITDA are used by management, analysts, investors and other interested parties in evaluating our operating performance compared to that of other companies in our industry. The calculation of non-GAAP net income (loss) eliminates the effect of stock-based compensation and income (loss) from discontinued operations and EBITDA and Adjusted EBITDA further eliminate the effect of financing, income taxes, and the accounting effects of capital spending, which items may vary from different companies for reasons unrelated to overall operating performance.
PFSweb believes these non-GAAP measures provide useful information to both management and investors by excluding certain expenses that may not be indicative of its core operating results. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The non-GAAP measures included in this press release have been reconciled to the GAAP results in the attached tables.
About PFSweb, Inc.
PFSweb develops and deploys comprehensive end-to-end eCommerce solutions for Fortune 1000, Global 2000 and brand name companies, including interactive marketing services, global fulfillment and logistics and high-touch customer care. The company serves a multitude of industries and company types, including such clients as Starbucks, P&G, LEGO, Carter's, Lucky Brand Jeans, Juicy Couture, Kensie, kate spade new york, AAFES, Riverbed, InfoPrint Solutions Company, Hawker Beechcraft Corp., Roots Canada Ltd. and Xerox.
To find out more about PFSweb, Inc. (NASDAQ: PFSW), visit the company's website at http://www.pfsweb.com.
The matters discussed herein consist of forward-looking information under the Private Securities Litigation Reform Act of 1995 and is subject to and involves risks and uncertainties, which could cause actual results to differ materially from the forward-looking information. PFSweb's Annual Report on Form 10-K for the year ended December 31, 2010 and Quarterly Report on Form 10-Q for the three months ended March 31, 2011 identify certain factors that could cause actual results to differ materially from those projected in any forward looking statements made and investors are advised to review the Annual and Quarterly Reports and the Risk Factors described therein. PFSweb undertakes no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future. There may be additional risks that we do not currently view as material or that are not presently known.
(Tables Follow)
|
PFSweb, Inc. and Subsidiaries |
|||||||||||||||||
| Unaudited Condensed Consolidated Statements of Operations (A) | |||||||||||||||||
| (In Thousands, Except Per Share Data) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||
| REVENUES: | |||||||||||||||||
| Product revenue, net | $ | 38,799 | $ | 43,654 | $ | 84,082 | $ | 89,276 | |||||||||
| Service fee revenue | 20,970 | 16,567 | 39,870 | 32,546 | |||||||||||||
| Pass-thru revenue | 8,239 | 6,186 | 16,445 | 12,820 | |||||||||||||
| Total revenues | 68,008 | 66,407 | 140,397 | 134,642 | |||||||||||||
| COSTS OF REVENUES: | |||||||||||||||||
| Cost of product revenue | 35,411 | 40,623 | 77,877 | 82,985 | |||||||||||||
| Cost of service fee revenue | 15,795 | 11,987 | 29,578 | 23,441 | |||||||||||||
| Cost of pass-thru revenue | 8,239 | 6,186 | 16,445 | 12,820 | |||||||||||||
| Total costs of revenues | 59,445 | 58,796 | 123,900 | 119,246 | |||||||||||||
| Gross profit | 8,563 | 7,611 | 16,497 | 15,396 | |||||||||||||
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 9,430 | 8,378 | 18,718 | 16,986 | |||||||||||||
| Loss from operations | (867 | ) | (767 | ) | (2,221 | ) | (1,590 | ) | |||||||||
| INTEREST EXPENSE, NET | 270 | 234 | 461 | 488 | |||||||||||||
| Loss before income taxes | (1,137 | ) | (1,001 | ) | (2,682 | ) | (2,078 | ) | |||||||||
| INCOME TAX PROVISION | 95 | 54 | 230 | 180 | |||||||||||||
| LOSS FROM CONTINUING OPERATIONS | (1,232 | ) | (1,055 | ) | (2,912 | ) | (2,258 | ) | |||||||||
| INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | 14 | (440 | ) | (589 | ) | (446 | ) | ||||||||||
| NET LOSS | $ | (1,218 | ) | $ | (1,495 | ) | $ | (3,501 | ) | $ | (2,704 | ) | |||||
| NON-GAAP LOSS | $ | (833 | ) | $ | (793 | ) | $ | (2,203 | ) | $ | (1,900 | ) | |||||
| NET LOSS PER SHARE: | |||||||||||||||||
| Basic and Diluted | $ | (0.10 | ) | $ | (0.14 | ) | $ | (0.28 | ) | $ | (0.26 | ) | |||||
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: | |||||||||||||||||
| Basic and Diluted | 12,567 | 10,796 | 12,418 | 10,369 | |||||||||||||
| EBITDA | $ | 676 | $ | 813 | $ | 817 | $ | 1,544 | |||||||||
| ADJUSTED EBITDA | $ | 1,075 | $ | 1,075 | $ | 1,526 | $ | 1,902 | |||||||||
| (A) The financial data above should be read in conjunction with the audited consolidated financial statements of PFSweb, Inc. included in its Form 10-K for the year ended December 31, 2010. | |||||||||||||||||
|
PFSweb, Inc. and Subsidiaries |
|||||||||||||||||
| Reconciliation of certain Non-GAAP Items to GAAP | |||||||||||||||||
| (In Thousands, Except Per Share Data) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||
| NET LOSS | $ | (1,218 | ) | $ | (1,495 | ) | $ | (3,501 | ) | $ | (2,704 | ) | |||||
| (Income) loss from discontinued operations, net of tax | (14 | ) | 440 | 589 | 446 | ||||||||||||
| Income tax expense | 95 | 54 | 230 | 180 | |||||||||||||
| Interest expense |
270 |
234 | 461 | 488 | |||||||||||||
| Depreciation and amortization | 1,543 | 1,580 | 3,038 | 3,134 | |||||||||||||
| EBITDA | $ | 676 | $ | 813 | $ | 817 | $ | 1,544 | |||||||||
| Stock-based compensation | 399 | 262 | 709 | 358 | |||||||||||||
| ADJUSTED EBITDA | $ | 1,075 | $ | 1,075 | $ | 1,526 | $ | 1,902 | |||||||||
| Three Months Ended | Three Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||
| NET LOSS | $ | (1,218 | ) | $ | (1,495 | ) | $ | (3,501 | ) | $ | (2,704 | ) | |||||
| (Income) loss from discontinued operations, net of tax | (14 | ) | 440 | 589 | 446 | ||||||||||||
| Stock-based compensation | 399 | 262 | 709 | 358 | |||||||||||||
| NON-GAAP LOSS | $ | (833 | ) | $ | (793 | ) | $ | (2,203 | ) | $ | (1,900 | ) | |||||
| NET LOSS PER SHARE: | |||||||||||||||||
|
Basic and Diluted |
$ | (0.10 | ) | $ | (0.14 | ) | $ | (0.28 | ) | $ | (0.26 | ) | |||||
| NON-GAAP LOSS Per Share: | |||||||||||||||||
| Basic and Diluted | $ | (0.07 | ) | $ | (0.07 | ) | $ | (0.18 | ) | $ | (0.18 | ) | |||||
|
PFSweb, Inc. and Subsidiaries |
|||||||||
| Unaudited Condensed Consolidated Balance Sheets | |||||||||
| (In Thousands, Except Share Data) | |||||||||
| June 30, | December 31, | ||||||||
| 2011 | 2010 | ||||||||
|
ASSETS |
|||||||||
| CURRENT ASSETS: | |||||||||
| Cash and cash equivalents | $ | 18,959 | $ | 18,430 | |||||
| Restricted cash | 1,267 | 1,853 | |||||||
| Accounts receivable, net of allowance for doubtful accounts of $718 and $754 at June 30, 2011 and December 31, 2010, respectively | |||||||||
| 37,225 | 41,438 | ||||||||
| Inventories, net of reserves of $1,582 and $1,561 at June 30, 2011 and December 31, 2010, respectively | |||||||||
| 38,985 | 35,161 |
|
|||||||
| Assets of discontinued operations | - | 2,776 | |||||||
| Other receivables | 12,779 | 14,539 | |||||||
| Prepaid expenses and other current assets | 4,405 | 3,580 | |||||||
| Total current assets | 113,620 | 117,777 | |||||||
| PROPERTY AND EQUIPMENT, net | 10,775 | 9,124 | |||||||
| ASSETS OF DISCONTINUED OPERATIONS | - | 1,126 | |||||||
| OTHER ASSETS | 2,216 | 2,203 | |||||||
| Total assets | 126,611 | 130,230 | |||||||
|
LIABILITIES AND SHAREHOLDERS EQUITY |
|||||||||
| CURRENT LIABILITIES: | |||||||||
| Current portion of long-term debt and capital lease obligations | $ | 19,191 | $ | 18,320 | |||||
| Trade accounts payable | 49,134 | 55,692 | |||||||
| Deferred revenue | 5,470 | 5,254 | |||||||
| Accrued expenses | 18,690 | 15,870 | |||||||
| Total current liabilities | 92,485 | 95,136 | |||||||
| LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion | 1,135 | 2,136 | |||||||
| OTHER LIABILITIES | 4,074 | 3,608 | |||||||
| Total liabilities | 97,694 | 100,880 | |||||||
| COMMITMENTS AND CONTINGENCIES | |||||||||
| SHAREHOLDERS' EQUITY: | |||||||||
|
Preferred stock, $1.00 par value; 1,000,000 shares authorized; none issued and outstanding |
- | - | |||||||
|
Common stock, $.001 par value; 35,000,000 shares authorized; 12,667,150 and 12,255,064 shares issued at June 30, 2011 and December 31, 2010, respectively; and 12,648,789 and 12,236,703 outstanding as of June 30, 2011 and December 31, 2010, respectively |
13 | 12 | |||||||
| Additional paid-in capital | 103,511 | 101,229 | |||||||
| Accumulated deficit | (76,833 | ) | (73,332 | ) | |||||
| Accumulated other comprehensive income | 2,311 | 1,526 | |||||||
| Treasury stock at cost, 18,361 shares | (85 | ) | (85 | ) | |||||
| Total shareholders' equity | 28,917 | 29,350 | |||||||
| Total liabilities and shareholders' equity | $ | 126,611 | $ | 130,230 | |||||
