PFSweb Receives Nasdaq Delisting Notice
PFSweb, Inc. (Nasdaq:PFSW), a global provider of end-to-end web commerce solutions for leading online retailers and manufacturers, announced that it received a delisting notification from Nasdaq dated April 7, 2008 as the result of PFSweb not complying with the $1 minimum closing bid price requirement for continued listing under Marketplace Rule 4310©(4) during the consecutive 30 business day period from February 20 through April 2, 2008. This notification has no effect on the listing of the Company's common stock at this time.
As the Company is traded on the Nasdaq Capital Market, and currently meets all initial inclusion requirements for the Capital Market, except for the minimum bid price, it has been afforded a compliance period of 180 calendar days.
To regain compliance, the Company must meet or exceed the $1 minimum closing bid price for a minimum of 10 consecutive business days. If the Company is unable to achieve this standard, and continues to meet all other initial inclusion requirements, it can receive an additional 180-day compliance period.
"We are disappointed in the current stock price and do not believe it accurately reflects a fair value of our businesses," stated Mark Layton, Chief Executive Officer of PFSweb. "We intend to actively take the necessary steps to increase awareness of PFSweb to the financial community and hope that this will help us expand support of our stock. Over the past 18 months we have made tremendous improvements to our businesses and believe we have a great deal of potential to continue these positive trends and create more value for our shareholders. This momentum includes three consecutive profitable quarters in 2007, and approximately $447 million in revenue and $10.9 million in Adjusted EBITDA as previously reported for the full-year 2007, as set forth on the attached schedule. I am excited about the future of PFSweb and will continue to work towards expanding our operations."
About PFSweb, Inc.
PFSweb develops and deploys integrated business infrastructure solutions and fulfillment services for Fortune 1000, Global 2000 and brand name companies, including third party logistics, call center support and e-commerce services. The company serves a multitude of industries and company types, including such clients as LEGO, Riverbed, Fathead, CHiA'SSO, MARS Drinks North America (formerly FLAVIA® Beverage Systems), Hewlett-Packard, International Business Machines, Hawker Beechcraft Corp. (formerly Raytheon Aircraft Company), Rene Furterer USA, Roots Canada Ltd. and Xerox.
Through its wholly owned eCOST.com subsidiary, PFSweb also serves as a leading multi-category online discount retailer of high-quality new, "close-out" and manufacturer recertified brand-name technology and consumer electronics for consumers and small to medium size business buyers. The eCOST.com brand markets approximately 110,000 different products from leading manufacturers such as Sony, JVC, Canon, Hewlett-Packard, Denon, Onkyo, Garmin, Panasonic, Toshiba and Microsoft primarily over the Internet and through direct marketing.
To find out more about PFSweb, Inc. (Nasdaq:PFSW), visit the company's websites at http://www.pfsweb.com and http://www.ecost.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, 2007 identifies 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 Report and the Risk Factors described therein. These factors include: our ability to retain and expand relationships with existing clients and attract and implement new clients; our reliance on the fees generated by the transaction volume or product sales of our clients; our reliance on our clients' projections or transaction volume or product sales; our dependence upon our agreements with IBM; our dependence upon our agreements with our major clients; our client mix, their business volumes and the seasonality of their business; our ability to finalize pending contracts; the impact of strategic alliances and acquisitions; trends in the e-commerce, outsourcing, government regulation both foreign and domestic and the market for our services; whether we can continue and manage growth; increased competition; our ability to generate more revenue and achieve sustainable profitability; effects of changes in profit margins; the customer and supplier concentration of our business; the unknown effects of possible system failures and rapid changes in technology; foreign currency risks and other risks of operating in foreign countries; potential litigation; potential delisting; our dependency on key personnel; the impact of new accounting standards and changes in existing accounting rules or the interpretations of those rules; our ability to raise additional capital or obtain additional financing; our ability and the ability of our subsidiaries to borrow under current financing arrangements and maintain compliance with debt covenants; relationship with and our guarantees of certain of the liabilities and indebtedness of our subsidiaries; our ability to successfully realize the anticipated benefits of the merger; eCOST's potential indemnification obligations to its former parent; eCOST's ability to maintain existing and build new relationships with manufacturers and vendors and the success of its advertising and marketing efforts; eCOST's ability to increase its sales revenue and sales margin and improve operating efficiencies and eCOST's ability to generate a profit and cash flows sufficient to cover the values of its intangible assets. 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.
PFSweb, Inc. and Subsidiaries
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Reconciliation of Net Loss to Adjusted EBITDA
(In Thousands)
Twelve Months Ended
December 31, 2007
---------------------
NET LOSS $ (1,384)
Income tax expense 799
Interest expense 2,342
Depreciation and amortization 8,180
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EBITDA $ 9,937
Stock-based compensation 764
Merger integration related expenses 150
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ADJUSTED EBITDA $ 10,851
=====================
Adjusted EBITDA represents earnings before interest, income taxes,
depreciation, and amortization (EBITDA) and further eliminates the
effect of stock-based compensation and merger integration related
expenses.
Adjusted EBITDA is used by management, analysts, investors and other
interested parties in evaluating our operating performance compared
to that of other companies in our industry, as the calculation of
Adjusted EBITDA eliminates the effect of stock-based compensation,
amortization of intangible assets and goodwill impairment, the effect
of financing, income taxes, the accounting effects of capital spending,
certain other merger related expenses and certain other expenses,
which items may vary from different companies for reasons unrelated to
overall operating performance.
PFSweb believes this 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. This measure 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.
This news release was distributed by PrimeNewswire, www.primenewswire.com
SOURCE: PFSweb, Inc.
PFSweb, Inc.
Mark C. Layton, Senior Partner and Chief Executive Officer
Thomas J. Madden, Senior Partner and Chief Financial Officer
(972) 881-2900
KCSA Worldwide
Investor Relations
Todd Fromer
(212) 896-1215
tfromer@kcsa.com
Garth Russell
(212) 896-1250
grussell@kcsa.com