PFSweb Reports Fourth Quarter and Year-End 2010 Results
--Fourth Quarter Adjusted EBITDA Increases 328% to $2.6 Million
PFSweb, Inc. (Nasdaq: PFSW), an international business process outsourcing services provider of end-to-end web commerce solutions, today announced its financial results for the fourth quarter and year ended December 31, 2010.
Mark Layton, Chairman and Chief Executive Officer of PFSweb, stated, "Our results for the fourth quarter and year ended December 31, 2010 are a testament to the renewed strength of our business and our ability to capitalize on new opportunities in the expanding eCommerce industry. Our Service Fee revenue increased more than 35% during the fourth quarter of 2010 as compared to the prior year, and more than 20% for the full calendar year. This strong Service Fee revenue growth, combined with a continued focus on cost effective technology development and operational management, resulted in an increased Adjusted EBITDA performance of 328% in the fourth quarter of 2010, as compared to the prior year, and more than 55% for the full calendar year.
"We continue to see strong acceptance of our eCommerce services in the U.S. as well as in Europe, which has recently shown vast opportunity for our solutions. This led to us launching more than 10 new client programs during 2010, including Carter's, Juicy Couture, Kensie, Monet, Volcom, Havaianas, and several brands under a master agreement with a leading fragrance and beauty company. Most of these new client arrangements include new custom branded eCommerce sites supported by our complete End2End solution, which is a packaged offering that generally includes the Demandware eCommerce platform, along with our logistics and fulfillment capabilities, high-touch customer care, financial services and various interactive marketing services."
Summary of consolidated results for the fourth quarter ended December 31, 2010:
-- Total revenue increased to $76.3 million for the fourth quarter of 2010 compared to $72.8 million for fourth quarter of 2009;
-- Service Fee revenue increased more than 35% to $21.7 million, compared with $16.0 million for the same period in 2009;
-- Adjusted EBITDA (as defined) was $2.6 million versus $0.6 million for the fourth quarter of 2009;
-- Net loss was $2.7 million, or $0.22 per basic and diluted share, compared to net loss of $0.9 million, or $0.10 per basic and diluted share, for the fourth quarter of 2009. Net loss for the fourth quarter of 2010 included a $3.2 million loss from discontinued operations related to eCOST.com. Net loss for the fourth quarter of 2009 included $0.4 million income from discontinued operations related to eCOST.com;
-- Non-GAAP net income (as defined) was $0.7 million, or $0.05 per basic and diluted share, compared to a non-GAAP net loss of $1.3 million, or $0.13 per basic and diluted share, for the fourth quarter of 2009;
-- Total cash, cash equivalents and restricted cash was $20.3 million as of December 31, 2010 compared to $16.9 million as of December 31, 2009.
Summary of consolidated results for the year ended December 31, 2010:
-- Total reported revenue was $274.5 million compared to $267.9 million for the year ended December 31, 2009;
-- Service Fee revenue increased 20.5% to $70.6 million, compared with $58.6 million for the same period in 2009;
-- Adjusted EBITDA (as defined) was $5.5 million compared to $3.5 million for the year ended December 31, 2009;
-- Net loss was $7.4 million, or $0.65 per basic and diluted share, compared to net loss of $4.6 million, or $0.46 per basic and diluted share, for the year ended December 31, 2009. Net loss for 2010 included a $4.0 million loss from discontinued operations related to eCOST.com. Net loss for 2009 included $0.3 million income from discontinued operations applicable to eCOST.com;
-- Non-GAAP net loss was $1.9 million, or $0.17 per basic and diluted share, compared to non-GAAP net loss of $4.5 million, or $0.45 per basic and diluted share, for the year ended December 31, 2009.
"We believe we are well positioned to maintain strong growth moving forward, as we expect demand for our services will continue to increase. Our pipeline for potential new Service Fee business currently totals more than $50 million, based on client projections, the largest in PFSweb's history, with potential new clients in several expanding markets, including the fashion, cosmetics and consumer packaged goods markets. To support the ongoing growth of our business, we are in the process of expanding capacity at select warehouse and customer care facilities and making other strategic investments that will also allow us to offer new capabilities. Based on our expected Service Fee revenue growth of approximately 20% in calendar year 2011, combined with the incremental investments we are making to support our long-term initiatives, we are currently targeting to report Adjusted EBITDA between $6.0 million to $7.0 million for the year ended December 31, 2011," continued Mr. Layton.
"In an effort to streamline our operations and improve our overall financial results, we made the strategic decision to divest the eCOST.com business. We believe this action will allow us take what we have learned at the frontline of the web commerce retail world and focus that knowledge more resourcefully on our growing Service Fee business. As a result of this divestiture, we reported certain financial results as 'discontinued operations' for the quarters and years ended December 31, 2010 and 2009. In addition, we recorded a non-cash goodwill impairment charge of approximately $2.8 million for the quarter and year ended December 31, 2010, which is included in the discontinued operations," concluded Mr. Layton.
Conference Call Information
Management will host a conference call at 10 am Eastern Time (9 am Central Time) on Wednesday, March 23, 2011, to discuss the latest corporate developments and results. To listen to the call, please dial (888) 562-3356 and enter the pin number 49410379 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 April 23, 2011 at (800) 642-1687, pin number 49410379. 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, income (loss) from discontinued operations and executive disability benefits.
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 and executive disability benefits.
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, income (loss) from discontinued operations and executive disability benefits 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 P&G, LEGO, Carter's, Lucky Brand Jeans, Juicy Couture, Kensie, Monet, 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, 2009 and Quarterly Report on Form 10-Q for the nine months ended September 30, 2010 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.
PFSweb, Inc. and Subsidiaries
-----------------------------------------------------------------------------------------------------------------
Unaudited Condensed Consolidated Statements of Operations (A)
(In Thousands, Except Per Share Data)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------------------------- -----------------------------------
2010 2009 2010 2009
-------- ------ ------- -------
REVENUES:
Product revenue, net $ 46,021 $ 47,288 $ 174,613 $ 183,008
Service fee revenue 21,688 16,015 70,636 58,619
Pass-thru revenue 8,605 9,517 29,267 26,265
-------- ------ ------- -------
Total revenues 76,314 72,820 274,516 267,892
-------- ------ ------- -------
COSTS OF REVENUES:
Cost of product revenue 43,108 44,048 162,485 168,864
Cost of service fee revenue 15,722 11,492 51,144 41,898
Cost of pass-thru revenue 8,605 9,517 29,267 26,265
-------- ------ ------- -------
Total costs of revenues 67,435 65,057 242,896 237,027
-------- ------ ------- -------
Gross profit 8,879 7,763 31,620 30,865
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 8,020 8,844 33,611 34,270
-------- ------ ------- -------
Income (loss) from operations 859 (1,081 ) (1,991 ) (3,405 )
INTEREST EXPENSE, NET 202 233 940 1,186
-------- ------ ------- -------
Income (loss) before income taxes 657 (1,314 ) (2,931 ) (4,591 )
INCOME TAX PROVISION (BENEFIT) 210 60 463 321
-------- ------ ------- -------
INCOME (LOSS) FROM CONTINUING OPERATIONS 447 (1,374 ) (3,394 ) (4,912 )
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX (3,192 ) 427 (3,975 ) 342
-------- - ------ ------- ---- -------
NET LOSS $ (2,745 ) $ (947 ) $ (7,369 ) $ (4,570 )
======== ======== = ==== ====== ==== ==== ======= ==== === ======= ===
NON-GAAP INCOME (LOSS) $ 673 $ (1,276 ) $ (1,935 ) $ (4,505 )
======== ======== ==== ====== ==== ==== ======= ==== === ======= ===
NET LOSS PER SHARE:
Basic and Diluted $ (0.22 ) $ (0.10 ) $ (0.65 ) $ (0.46 )
======== ======== = ==== ====== ==== ==== ======= ==== === ======= ===
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
Basic and Diluted 12,237 9,934 11,310 9,929
======== ====== ======= =======
EBITDA $ 2,326 $ 497 $ 4,069 $ 3,139
======== ======== ==== ====== ==== ======= === =======
ADJUSTED EBITDA $ 2,552 $ 595 $ 5,528 $ 3,546
======== ======== ==== ====== ==== ======= === =======
(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, 2009.
PFSweb, Inc. and Subsidiaries
----------------------------------------------------------------------------------------------------------
Reconciliation of certain Non-GAAP Items to GAAP
(In Thousands, Except Per Share Data)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------------- ---------------------------
2010 2009 2010 2009
------ ------ ------ ------
NET LOSS $ (2,745 ) $ (947 ) $ (7,369 ) $ (4,570 )
(Income) loss from discontinued operations, net of tax 3,192 (427 ) 3,975 (342 )
Income tax expense (benefit) 210 60 463 321
Interest expense 202 233 940 1,186
Depreciation and amortization 1,467 1,578 6,060 6,544
------ ------ ------ ------
EBITDA $ 2,326 $ 497 $ 4,069 $ 3,139
Stock-based compensation 226 98 809 407
Executive disability benefits - - 650 -
------ ------ ------ ------
ADJUSTED EBITDA $ 2,552 $ 595 $ 5,528 $ 3,546
== ====== == ====== == ====== == ======
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------------- ---------------------------
2010 2009 2010 2009
------ ------ ------ ------
NET LOSS $ (2,745 ) $ (947 ) $ (7,369 ) $ (4,570 )
(Income) loss from discontinued operations, net of tax 3,192 (427 ) 3,975 (342 )
Stock-based compensation 226 98 809 407
Executive disability benefits - - 650 -
------ ------ ------ ------
NON-GAAP INCOME (LOSS) $ 673 $ (1,276 ) $ (1,935 ) $ (4,505 )
== ====== == ====== == == ====== == == ====== ==
NET LOSS PER SHARE:
Basic and Diluted $ (0.22 ) $ (0.10 ) $ (0.65 ) $ (0.46 )
== ====== == == ====== == == ====== == == ====== ==
NON-GAAP INCOME (LOSS) Per Share:
Basic and Diluted $ 0.05 $ (0.13 ) $ (0.17 ) $ (0.45 )
== ====== == ====== == == ====== == == ====== ==
PFSweb, Inc. and Subsidiaries
----------------------------------------------------------------------------------------------------------------
Unaudited Condensed Consolidated Balance Sheets
(In Thousands, Except Share Data)
December 31, December 31,
2010 2009
------- -------
ASSETS
----------------------------------------------------------------------------------
CURRENT ASSETS:
Cash and cash equivalents $ 18,430 $ 14,812
Restricted cash 1,853 2,096
Accounts receivable, net of allowance for doubtful accounts of $754
and
$973 at December 31, 2010 and December 31, 2009, respectively 41,438 39,861
Inventories, net of reserves of $1,561 and $1,760 at December 31,
2010 and
December 31, 2009, respectively 35,161 33,577
Assets of discontinued operations 2,776 4,372
Other receivables 14,539 11,605
Prepaid expenses and other current assets 3,580 4,170
------- -------
Total current assets 117,777 110,493
------- -------
PROPERTY AND EQUIPMENT, net 9,124 10,314
ASSETS OF DISCONTINUED OPERATIONS 1,126 4,024
OTHER ASSETS 2,203 2,938
------- -------
Total assets 130,230 127,769
======= =======
LIABILITIES AND SHAREHOLDERS EQUITY
----------------------------------------------------------------------------------
CURRENT LIABILITIES:
Current portion of long-term debt and capital lease obligations $ 18,320 $ 19,179
Trade accounts payable 55,692 53,642
Deferred revenue 5,254 5,164
Accrued expenses 15,870 13,180
------- -------
Total current liabilities 95,136 91,165
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion 2,136 3,348
OTHER LIABILITIES 3,608 3,903
------- -------
Total liabilities 100,880 98,416
------- -------
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;
12,255,064 and 9,952,164 shares issued at December 31, 2010 and
December 31, 2009, respectively; and 12,236,703 and 9,933,803
outstanding as of December 31, 2010 and December 31, 2009, 12 10
respectively
Additional paid-in capital 101,229 93,152
Accumulated deficit (73,332 ) (65,963 )
Accumulated other comprehensive income 1,526 2,239
Treasury stock at cost, 18,361 shares (85 ) (85 )
------- ---- ------- ----
Total shareholders' equity 29,350 29,353
------- -------
Total liabilities and shareholders' equity $ 130,230 $ 127,769
==== ======= ==== =======
PFSweb, Inc. and Subsidiaries
--------------------------------------------------------------------------------------------------------------------------------------
Unaudited Consolidating Statements of Operations
For the Three Months Ended March 31, 2010
(In Thousands)
Business &
PFSweb Retail Connect eCOST Eliminations Consolidated
------------------ ---------------- --------- ----------------- -----------------
REVENUES:
Product revenue, net $ - $ 45,622 $ - $ - $ 45,622
Service fee revenue 15,979 - - - 15,979
Service fee revenue - affiliate 1,700 - - (1,700 ) -
Pass-thru revenue 6,637 - - (3 ) 6,634
------- ------- -- ------ ---- ------
Total revenues 24,316 45,622 - (1,703 ) 68,235
------- ------- -- ------ ---- ------
COSTS OF REVENUES:
Cost of product revenue - 42,362 - - 42,362
Cost of service fee revenue 12,101 - - (647 ) 11,454
Cost of pass-thru revenue 6,637 - - (3 ) 6,634
------- ------- -- ------ ---- ------
Total costs of revenues 18,738 42,362 - (650 ) 60,450
------- ------- -- ------ ---- ------
Gross profit 5,578 3,260 - (1,053 ) 7,785
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 7,400 2,261 - (1,053 ) 8,608
------- ------- -- ------ ---- ------
Income (loss) from operations (1,822 ) 999 - - (823 )
INTEREST EXPENSE (INCOME), NET (56 ) 310 - - 254
------- - ------- -- ------ ------
Income (loss) before income taxes (1,766 ) 689 - - (1,077 )
INCOME TAX PROVISION (BENEFIT) (130 ) 256 - - 126
------- - ------- -- ------ ------
INCOME (LOSS) FROM CONTINUING OPERATIONS (1,636 ) 433 - - (1,203 )
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX - - (6 ) (6 )
------- ------- -- -- ------ ----
NET INCOME (LOSS) $ (1,636 ) $ 433 $ (6 ) $ - $ (1,209 )
======= ======= = ======= ======= == == == ==== ====== ==== ====== ====
NON-GAAP NET INCOME (LOSS) $ (1,540 ) $ 433 $ - $ - $ (1,107 )
======= ======= = ======= ======= == == ==== ====== ==== ====== ====
EBITDA $ (276 ) $ 1,007 $ - $ - $ 731
======= ======= = ======= ======= == == ==== ====== ==== ======
ADJUSTED EBITDA $ (180 ) $ 1,007 $ - $ - $ 827
======= ======= = ======= ======= == == ==== ====== ==== ======
A reconciliation of NET INCOME (LOSS) to EBITDA and ADJUSTED EBITDA
follows:
NET INCOME (LOSS) $ (1,636 ) $ 433 $ (6 ) $ - (1,209 )
(Income) loss from discontinued operations, net of tax - - 6 - 6
Income tax expense (benefit) (130 ) 256 - - 126
Interest expense (income) (56 ) 310 - - 254
Depreciation and amortization 1,546 8 - - 1,554
------- ------- -- ------ ------
EBITDA $ (276 ) $ 1,007 $ - $ - $ 731
Stock-based compensation 96 - - - 96
------- ------- -- ------ ------
ADJUSTED EBITDA $ (180 ) $ 1,007 $ - $ - $ 827
======= ======= = ======= ======= == == ==== ====== ==== ======
A reconciliation of NET INCOME (LOSS) to NON-GAAP NET INCOME (LOSS)
follows:
NET INCOME (LOSS) $ (1,636 ) $ 433 $ (6 ) $ - $ (1,209 )
(Income) loss from discontinued operations, net of tax - - 6 - 6
Stock-based compensation 96 - - - 96
------- ------- -- ------ ------
NON-GAAP NET INCOME (LOSS) $ (1,540 ) $ 433 $ - $ - $ (1,107 )
======= ======= = ======= ======= == == ==== ====== ==== ====== ====
Note: Business and Retail Connect includes our Supplies Distributors
and PFS Retail Connect operations, which operate similar financial
models on behalf of our client relationships. PFSweb and PFS Retail
Connect include certain ongoing activity formerly reported as eCOST.
PFSweb, Inc. and Subsidiaries
------------------------------------------------------------------------------------------------------------------------------------------
Unaudited Consolidating Statements of Operations
For the Three Months Ended June 30, 2010
(In Thousands)
Business &
PFSweb Retail Connect eCOST Eliminations Consolidated
-------------------- ---------------- ----------- ----------------- -----------------
REVENUES:
Product revenue, net $ - $ 43,654 $ - $ - $ 43,654
Service fee revenue 16,567 - - - 16,567
Service fee revenue - affiliate 1,738 - - (1,738 ) -
Pass-thru revenue 6,202 - - (16 ) 6,186
-------- ------- ---- ------ ---- ------
Total revenues 24,507 43,654 - (1,754 ) 66,407
-------- ------- ---- ------ ---- ------
COSTS OF REVENUES:
Cost of product revenue - 40,623 - - 40,623
Cost of service fee revenue 12,572 - - (585 ) 11,987
Cost of pass-thru revenue 6,202 - - (16 ) 6,186
-------- ------- ---- ------ ---- ------
Total costs of revenues 18,774 40,623 - (601 ) 58,796
-------- ------- ---- ------ ---- ------
Gross profit 5,733 3,031 - (1,153 ) 7,611
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 7,310 2,221 - (1,153 ) 8,378
-------- ------- ---- ------ ---- ------
Income (loss) from operations (1,577 ) 810 - - (767 )
INTEREST EXPENSE (INCOME), NET (59 ) 293 - - 234
-------- - ------- ---- ------ ------
Income (loss) before income taxes (1,518 ) 517 - - (1,001 )
INCOME TAX PROVISION (BENEFIT) (142 ) 196 - - 54
-------- - ------- ---- ------ ------
INCOME (LOSS) FROM CONTINUING OPERATIONS (1,376 ) 321 - - (1,055 )
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX - - (440 ) (440 )
-------- ------- ---- -- ------ ----
NET INCOME (LOSS) $ (1,376 ) $ 321 $ (440 ) $ - $ (1,495 )
======== ======== = ======= ======= == ==== == ==== ====== ==== ====== ====
NON-GAAP NET INCOME (LOSS) $ (1,114 ) $ 321 $ - $ - $ (793 )
======== ======== = ======= ======= == ==== ==== ====== ==== ====== ====
EBITDA $ (4 ) $ 817 $ - $ - $ 813
======== ======== = ======= ======= == ==== ==== ====== ==== ======
ADJUSTED EBITDA $ 258 $ 817 $ - $ - $ 1,075
======== ======== ======= ======= == ==== ==== ====== ==== ======
A reconciliation of NET INCOME (LOSS) to EBITDA and ADJUSTED EBITDA
follows:
NET INCOME (LOSS) $ (1,376 ) $ 321 $ (440 ) $ - (1,495 )
(Income) loss from discontinued operations, net of tax - - 440 - 440
Income tax expense (benefit) (142 ) 196 - - 54
Interest expense (income) (59 ) 293 - - 234
Depreciation and amortization 1,573 7 - 1,580
-------- ------- ------ ------
EBITDA $ (4 ) $ 817 $ - $ - $ 813
Stock-based compensation 262 - - - 262
-------- ------- ---- ------ ------
ADJUSTED EBITDA $ 258 $ 817 $ - $ - $ 1,075
======== ======== ======= ======= == ==== ==== ====== ==== ======
A reconciliation of NET INCOME (LOSS) to NON-GAAP NET INCOME (LOSS)
follows:
NET INCOME (LOSS) $ (1,376 ) $ 321 $ (440 ) $ - $ (1,495 )
(Income) loss from discontinued operations, net of tax - - 440 - 440
Stock-based compensation 262 - - - 262
-------- ------- ---- ------ ------
NON-GAAP NET INCOME (LOSS) $ (1,114 ) $ 321 $ - $ - $ (793 )
======== ======== = ======= ======= == ==== ==== ====== ==== ====== ====
Note: Business and Retail Connect includes our Supplies Distributors
and PFS Retail Connect operations, which operate similar financial
models on behalf of our client relationships. PFSweb and PFS Retail
Connect include certain ongoing activity formerly reported as eCOST.
PFSweb, Inc. and Subsidiaries
------------------------------------------------------------------------------------------------------------------------------------------
Unaudited Consolidating Statements of Operations
For the Three Months Ended September 30, 2010
(In Thousands)
Business &
PFSweb Retail Connect eCOST Eliminations Consolidated
-------------------- ---------------- ----------- ----------------- -----------------
REVENUES:
Product revenue, net $ - $ 39,316 $ - $ - $ 39,316
Service fee revenue 16,402 - - - 16,402
Service fee revenue - affiliate 1,484 - - (1,484 ) -
Pass-thru revenue 7,843 - - (1 ) 7,842
-------- ------- ---- ------ ---- ------
Total revenues 25,729 39,316 - (1,485 ) 63,560
-------- ------- ---- ------ ---- ------
COSTS OF REVENUES:
Cost of product revenue - 36,392 - - 36,392
Cost of service fee revenue 12,543 - - (562 ) 11,981
Cost of pass-thru revenue 7,843 - - (1 ) 7,842
-------- ------- ---- ------ ---- ------
Total costs of revenues 20,386 36,392 - (563 ) 56,215
-------- ------- ---- ------ ---- ------
Gross profit 5,343 2,924 - (922 ) 7,345
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 7,556 1,971 - (922 ) 8,605
-------- ------- ---- ------ ---- ------
Income (loss) from operations (2,213 ) 953 - - (1,260 )
INTEREST EXPENSE (INCOME), NET (63 ) 313 - - 250
-------- - ------- ---- ------ ------
Income (loss) before income taxes (2,150 ) 640 - - (1,510 )
INCOME TAX PROVISION (BENEFIT) (134 ) 207 - - 73
-------- - ------- ---- ------ ------
INCOME (LOSS) FROM CONTINUING OPERATIONS (2,016 ) 433 - - (1,583 )
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX - - (337 ) (337 )
-------- ------- ---- -- ------ ----
NET INCOME (LOSS) $ (2,016 ) $ 433 $ (337 ) $ - $ (1,920 )
======== ======== = ======= ======= == ==== == ==== ====== ==== ====== ====
NON-GAAP NET INCOME (LOSS) $ (1,141 ) $ 433 $ - $ - $ (708 )
======== ======== = ======= ======= == ==== ==== ====== ==== ====== ====
EBITDA $ (761 ) $ 960 $ - $ - $ 199
======== ======== = ======= ======= == ==== ==== ====== ==== ======
ADJUSTED EBITDA $ 114 $ 960 $ - $ - $ 1,074
======== ======== ======= ======= == ==== ==== ====== ==== ======
A reconciliation of NET INCOME (LOSS) to EBITDA and ADJUSTED EBITDA
follows:
NET INCOME (LOSS) $ (2,016 ) $ 433 $ (337 ) $ - (1,920 )
(Income) loss from discontinued operations, net of tax - - 337 - 337
Income tax expense (benefit) (134 ) 207 - - 73
Interest expense (income) (63 ) 313 - - 250
Depreciation and amortization 1,452 7 - 1,459
-------- ------- ------ ------
EBITDA $ (761 ) $ 960 $ - $ - $ 199
Stock-based compensation 225 - - - 225
Executive disability benefit 650 650
-------- ------
ADJUSTED EBITDA $ 114 $ 960 $ - $ - $ 1,074
======== ======== ======= ======= == ==== ==== ====== ==== ======
A reconciliation of NET INCOME (LOSS) to NON-GAAP NET INCOME (LOSS)
follows:
NET INCOME (LOSS) $ (2,016 ) $ 433 $ (337 ) $ - $ (1,920 )
(Income) loss from discontinued operations, net of tax - - 337 - 337
Stock-based compensation 225 - - - 225
Executive disability benefit 650 650
-------- ------
NON-GAAP NET INCOME (LOSS) $ (1,141 ) $ 433 $ - $ - $ (708 )
======== ======== = ======= ======= == ==== ==== ====== ==== ====== ====
Note: Business and Retail Connect includes our Supplies Distributors
and PFS Retail Connect operations, which operate similar financial
models on behalf of our client relationships. PFSweb and PFS Retail
Connect include certain ongoing activity formerly reported as eCOST.
PFSweb, Inc. and Subsidiaries
------------------------------------------------------------------------------------------------------------------------------------------
Unaudited Consolidating Statements of Operations
For the Three Months Ended December 31, 2010
(In Thousands)
Business &
PFSweb Retail Connect eCOST Eliminations Consolidated
------------------ ---------------- ------------- ----------------- -----------------
REVENUES:
Product revenue, net $ - $ 46,021 $ - $ - $ 46,021
Service fee revenue 21,688 - - - 21,688
Service fee revenue - affiliate 1,701 - - (1,701 ) -
Pass-thru revenue 8,612 - - (7 ) 8,605
------- ------- ------ ------ ---- ------
Total revenues 32,001 46,021 - (1,708 ) 76,314
------- ------- ------ ------ ---- ------
COSTS OF REVENUES:
Cost of product revenue - 43,108 - - 43,108
Cost of service fee revenue 16,328 - - (606 ) 15,722
Cost of pass-thru revenue 8,612 - - (7 ) 8,605
------- ------- ------ ------ ---- ------
Total costs of revenues 24,940 43,108 - (613 ) 67,435
------- ------- ------ ------ ---- ------
Gross profit 7,061 2,913 - (1,095 ) 8,879
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 6,893 2,222 - (1,095 ) 8,020
------- ------- ------ ------ ---- ------
Income (loss) from operations 168 691 - - 859
INTEREST EXPENSE (INCOME), NET (79 ) 281 - - 202
------- - ------- ------ ------ ------
Income (loss) before income taxes 247 410 - - 657
INCOME TAX PROVISION (BENEFIT) 51 159 - - 210
------- ------- ------ ------ ------
INCOME (LOSS) FROM CONTINUING OPERATIONS 196 251 - - 447
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX - - (3,192 ) (3,192 )
------- ------- ------ -- ------ ----
NET INCOME (LOSS) $ 196 $ 251 $ (3,192 ) $ - $ (2,745 )
======= ======= ======= ======= == ====== == ==== ====== ==== ====== ====
NON-GAAP NET INCOME (LOSS) $ 422 $ 251 $ - $ - $ 673
======= ======= ======= ======= == ====== ==== ====== ==== ======
EBITDA $ 1,628 $ 698 $ - $ - $ 2,326
======= ======= ======= ======= == ====== ==== ====== ==== ======
ADJUSTED EBITDA $ 1,854 $ 698 $ - $ - $ 2,552
======= ======= ======= ======= == ====== ==== ====== ==== ======
A reconciliation of NET INCOME (LOSS) to EBITDA and ADJUSTED EBITDA
follows:
NET INCOME (LOSS) $ 196 $ 251 $ (3,192 ) $ - (2,745 )
(Income) loss from discontinued operations, net of tax - - 3,192 - 3,192
Income tax expense (benefit) 51 159 - - 210
Interest expense (income) (79 ) 281 - - 202
Depreciation and amortization 1,460 7 - 1,467
------- ------- ------ ------
EBITDA $ 1,628 $ 698 $ - $ - $ 2,326
Stock-based compensation 226 - - - 226
------- ------- ------ ------ ------
ADJUSTED EBITDA $ 1,854 $ 698 $ - $ - $ 2,552
======= ======= ======= ======= == ====== ==== ====== ==== ======
A reconciliation of NET INCOME (LOSS) to NON-GAAP NET INCOME (LOSS)
follows:
NET INCOME (LOSS) $ 196 $ 251 $ (3,192 ) $ - $ (2,745 )
(Income) loss from discontinued operations, net of tax - - 3,192 - 3,192
Stock-based compensation 226 - - - 226
------- ------- ------ ------ ------
NON-GAAP NET INCOME (LOSS) $ 422 $ 251 $ - $ - $ 673
======= ======= ======= ======= == ====== ==== ====== ==== ======
Note: Business and Retail Connect includes our Supplies Distributors
and PFS Retail Connect operations, which operate similar financial
models on behalf of our client relationships. PFSweb and PFS Retail
Connect include certain ongoing activity formerly reported as eCOST.
PFSweb, Inc. and Subsidiaries
-------------------------------------------------------------------------------------------------------------------------------------------
Unaudited Consolidating Statements of Operations
For the Twelve Months Ended December 31, 2010
(In Thousands)
Business &
PFSweb Retail Connect eCOST Eliminations Consolidated
------------------ ---------------- ------------- ----------------- ------------------
REVENUES:
Product revenue, net $ - $ 174,613 $ - $ - $ 174,613
Service fee revenue 70,636 - - - 70,636
Service fee revenue - affiliate 6,622 - - (6,622 ) -
Pass-thru revenue 29,294 - - (27 ) 29,267
------- ------- ------ ------ ---- -------
Total revenues 106,552 174,613 - (6,649 ) 274,516
------- ------- ------ ------ ---- -------
COSTS OF REVENUES:
Cost of product revenue - 162,485 - - 162,485
Cost of service fee revenue 53,543 - - (2,399 ) 51,144
Cost of pass-thru revenue 29,294 - - (27 ) 29,267
------- ------- ------ ------ ---- -------
Total costs of revenues 82,837 162,485 - (2,426 ) 242,896
------- ------- ------ ------ ---- -------
Gross profit 23,715 12,128 - (4,223 ) 31,620
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 29,158 8,676 - (4,223 ) 33,611
------- ------- ------ ------ ---- -------
Income (loss) from operations (5,443 ) 3,452 - - (1,991 )
INTEREST EXPENSE (INCOME), NET (257 ) 1,197 - - 940
------- - ------- ------ ------ -------
Income (loss) before income taxes (5,186 ) 2,255 - - (2,931 )
INCOME TAX PROVISION (BENEFIT) (355 ) 818 - - 463
------- - ------- ------ ------ -------
INCOME (LOSS) FROM CONTINUING OPERATIONS (4,831 ) 1,437 - - (3,394 )
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX - - (3,975 ) (3,975 )
------- ------- ------ -- ------- ----
NET INCOME (LOSS) $ (4,831 ) $ 1,437 $ (3,975 ) $ - $ (7,369 )
======= ======= = ======= ======= == ====== == ==== ====== ==== ======= ====
NON-GAAP NET INCOME (LOSS) $ (3,372 ) $ 1,437 $ - $ - $ (1,935 )
======= ======= = ======= ======= == ====== ==== ====== ==== ======= ====
EBITDA $ 589 $ 3,480 $ - $ - $ 4,069
======= ======= ======= ======= == ====== ==== ====== ==== =======
ADJUSTED EBITDA $ 2,048 $ 3,480 $ - $ - $ 5,528
======= ======= ======= ======= == ====== ==== ====== ==== =======
A reconciliation of NET INCOME (LOSS) to EBITDA and ADJUSTED EBITDA
follows:
NET INCOME (LOSS) $ (4,831 ) $ 1,437 $ (3,975 ) $ - $ (7,369 )
(Income) loss from discontinued operations, net of tax - - 3,975 - 3,975
Income tax expense (benefit) (355 ) 818 - - 463
Interest expense (income) (257 ) 1,197 - - 940
Depreciation and amortization 6,032 28 - 6,060
------- ------- ------ -------
EBITDA $ 589 $ 3,480 $ - $ - $ 4,069
Stock-based compensation 809 - - 809
Executive disability benefits 650 - - 650
------- ------- ------ -------
ADJUSTED EBITDA $ 2,048 $ 3,480 $ - $ - $ 5,528
======= ======= ======= ======= == ====== ==== ====== ==== =======
A reconciliation of NET INCOME (LOSS) to NON-GAAP NET INCOME (LOSS)
follows:
NET INCOME (LOSS) $ (4,831 ) $ 1,437 $ (3,975 ) $ - $ (7,369 )
(Income) loss from discontinued operations, net of tax - - 3,975 - 3,975
Stock-based compensation 809 - - - 809
Executive disability benefits 650 - - - 650
------- ------- ------ ------ -------
NON-GAAP NET INCOME (LOSS) $ (3,372 ) $ 1,437 $ - $ - $ (1,935 )
======= ======= = ======= ======= == ====== ==== ====== ==== ======= ====
Note: Business and Retail Connect includes our Supplies Distributors
and PFS Retail Connect operations, which operate similar financial
models on behalf of our client relationships. PFSweb and PFS Retail
Connect include certain ongoing activity formerly reported as eCOST.
PFSweb, Inc. and Subsidiaries
---------------------------------------------------------------------------------------------------------------------------------------------
Unaudited Condensed Consolidating Balance Sheets
as of December 31, 2010
(In Thousands)
Supplies
PFSweb Distributors eCOST Eliminations Consolidated
-------------- -------------- -------------- ------------------ ------------------
ASSETS
-----------------------------------------------------------------------------
CURRENT ASSETS:
Cash and cash equivalents $ 13,471 $ 3,110 $ 1,849 $ - $ 18,430
Restricted cash 777 884 192 - 1,853
Accounts receivable, net 21,234 19,524 987 (307 ) 41,438
Inventories, net - 35,161 - - 35,161
Assets of discontinued operations - - 2,776 - 2,776
Other receivables - 13,822 717 - 14,539
Prepaid expenses and other current assets 2,006 1,469 105 - 3,580
------- ------ ------- ------- -------
Total current assets 37,488 73,970 6,626 (307 ) 117,777
------- ------ ------- ------- ---- -------
PROPERTY AND EQUIPMENT, net 8,861 22 95 - 8,978
RECEIVABLE/INVESTMENT IN AFFILIATES 14,255 - - (14,255 ) -
ASSETS OF DISCONTINUED OPERATIONS - - 1,272 - 1,272
OTHER ASSETS 2,013 - 190 - 2,203
------- ------ ------- ------- -------
Total assets 62,617 73,992 8,183 (14,562 ) 130,230
======= ====== ======= ======= ==== =======
LIABILITIES AND SHAREHOLDERS EQUITY
-----------------------------------------------------------------------------
CURRENT LIABILITIES:
Current portion of long-term debt and capital lease obligations $ 8,332 $ 9,953 $ 35 $ - $ 18,320
Trade accounts payable 6,356 44,896 4,747 (307 ) 55,692
Accrued expenses 12,994 6,260 1,870 - 21,124
------- ------ ------- ------- -------
Total current liabilities 27,682 61,109 6,652 (307 ) 95,136
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion 2,031 - 105 - 2,136
PAYABLE TO AFFILIATES - 4,255 18,490 (22,745 ) -
OTHER LIABILITIES 3,608 - - - 3,608
------- ------ ------- ------- -------
Total liabilities 33,321 65,364 25,247 (23,052 ) 100,880
------- ------ ------- ------- ---- -------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common stock 12 - 19 (19 ) 12
Capital contributions - 1,000 - (1,000 ) -
Additional paid-in capital 101,229 - 28,059 (28,059 ) 101,229
Retained earnings (accumulated deficit) (73,387 ) 5,410 (45,148 ) 39,793 (73,332 )
Accumulated other comprehensive income 1,527 2,218 6 (2,225 ) 1,526
Treasury stock (85 ) - - - (85 )
------- -- ------ ------- ------- ------- ----
Total shareholders' equity 29,296 8,628 (17,064 ) 8,490 29,350
------- ------ ------- -- ------- -------
Total liabilities and shareholders' equity $ 62,617 $ 73,992 $ 8,183 $ (14,562 ) $ 130,230
== ======= ====== ====== == ======= ==== ======= ==== ==== =======
PFSweb, Inc. and Subsidiaries
------------------------------------------------------------------------------------------------------------------------------------------
Unaudited Consolidating Statements of Operations
For the Three Months Ended December 31, 2009
(In Thousands)
Business &
PFSweb Retail Connect eCOST Eliminations Consolidated
-------------------- ---------------- ----------- ----------------- -----------------
REVENUES:
Product revenue, net $ - $ 47,288 $ - $ - $ 47,288
Service fee revenue 16,015 - - - 16,015
Service fee revenue - affiliate 1,700 - - (1,700 ) -
Pass-thru revenue 9,520 - - (3 ) 9,517
-------- ------- ---- ------ ---- ------
Total revenues 27,235 47,288 - (1,703 ) 72,820
-------- ------- ---- ------ ---- ------
COSTS OF REVENUES:
Cost of product revenue - 44,048 - - 44,048
Cost of service fee revenue 12,143 - - (651 ) 11,492
Cost of pass-thru revenue 9,520 - - (3 ) 9,517
-------- ------- ---- ------ ---- ------
Total costs of revenues 21,663 44,048 - (654 ) 65,057
-------- ------- ---- ------ ---- ------
Gross profit 5,572 3,240 - (1,049 ) 7,763
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 7,459 2,434 - (1,049 ) 8,844
-------- ------- ---- ------ ---- ------
Income (loss) from operations (1,887 ) 806 - - (1,081 )
INTEREST EXPENSE (INCOME), NET (68 ) 301 - - 233
-------- - ------- ---- ------ ------
Income (loss) before income taxes (1,819 ) 505 - - (1,314 )
INCOME TAX PROVISION (BENEFIT) (122 ) 182 - - 60
-------- - ------- ---- ------ ------
INCOME (LOSS) FROM CONTINUING OPERATIONS (1,697 ) 323 - - (1,374 )
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX - - 427 427
-------- ------- ---- ------
NET INCOME (LOSS) $ (1,697 ) $ 323 $ 427 $ - $ (947 )
======== ======== = ======= ======= == ==== ==== ====== ==== ====== ====
NON-GAAP NET INCOME (LOSS) $ (1,599 ) $ 323 $ - $ - $ (1,276 )
======== ======== = ======= ======= == ==== ==== ====== ==== ====== ====
EBITDA $ (318 ) $ 815 $ - $ - $ 497
======== ======== = ======= ======= == ==== ==== ====== ==== ======
ADJUSTED EBITDA $ (220 ) $ 815 $ - $ - $ 595
======== ======== = ======= ======= == ==== ==== ====== ==== ======
A reconciliation of NET INCOME (LOSS) to EBITDA and ADJUSTED EBITDA
follows:
NET INCOME (LOSS) $ (1,697 ) $ 323 $ 427 $ - $ (947 )
(Income) loss from discontinued operations, net of tax - - (427 ) - (427 )
Income tax expense (benefit) (122 ) 182 - - 60
Interest expense (income) (68 ) 301 - - 233
Depreciation and amortization 1,569 9 - - 1,578
-------- ------- ---- ------ ------
EBITDA $ (318 ) $ 815 $ - $ - $ 497
Stock-based compensation 98 - - - 98
-------- ------- ---- ------ ------
ADJUSTED EBITDA $ (220 ) $ 815 $ - $ - $ 595
======== ======== = ======= ======= == ==== ==== ====== ==== ======
A reconciliation of NET INCOME (LOSS) to NON-GAAP NET INCOME (LOSS)
follows:
NET INCOME (LOSS) $ (1,697 ) $ 323 $ 427 $ - $ (947 )
(Income) loss from discontinued operations, net of tax - - (427 ) - (427 )
Stock-based compensation 98 - - - 98
-------- ------- ---- ------ ------
NON-GAAP NET INCOME (LOSS) $ (1,599 ) $ 323 $ - $ - $ (1,276 )
======== ======== = ======= ======= == ==== ==== ====== ==== ====== ====
Note: Business and Retail Connect includes our Supplies Distributors
and PFS Retail Connect operations, which operate similar financial
models on behalf of our client relationships. PFSweb includes
certain ongoing activity formerly reported as eCOST.
PFSweb, Inc. and Subsidiaries
-------------------------------------------------------------------------------------------------------------------------------------------
Unaudited Consolidating Statements of Operations
For the Twelve Months Ended December 31, 2009
(In Thousands)
Business &
PFSweb Retail Connect eCOST Eliminations Consolidated
-------------------- ---------------- ----------- ----------------- ------------------
REVENUES:
Product revenue, net $ - $ 183,008 $ - $ - $ 183,008
Service fee revenue 58,619 - - - 58,619
Service fee revenue - affiliate 7,093 - - (7,093 ) -
Pass-thru revenue 26,335 - - (70 ) 26,265
-------- ------- ---- ------ ---- -------
Total revenues 92,047 183,008 - (7,163 ) 267,892
-------- ------- ---- ------ ---- -------
COSTS OF REVENUES:
Cost of product revenue - 168,864 - - 168,864
Cost of service fee revenue 44,453 - - (2,555 ) 41,898
Cost of pass-thru revenue 26,335 - - (70 ) 26,265
-------- ------- ---- ------ ---- -------
Total costs of revenues 70,788 168,864 - (2,625 ) 237,027
-------- ------- ---- ------ ---- -------
Gross profit 21,259 14,144 - (4,538 ) 30,865
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 30,029 8,779 - (4,538 ) 34,270
-------- ------- ---- ------ ---- -------
Income (loss) from operations (8,770 ) 5,365 - - (3,405 )
INTEREST EXPENSE (INCOME), NET (202 ) 1,388 - - 1,186
-------- - ------- ---- ------ -------
Income (loss) before income taxes (8,568 ) 3,977 - - (4,591 )
INCOME TAX PROVISION (BENEFIT) (734 ) 1,055 - - 321
-------- - ------- ---- ------ -------
INCOME (LOSS) FROM CONTINUING OPERATIONS (7,834 ) 2,922 - - (4,912 )
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX - - 342 342
-------- ------- ---- -------
NET INCOME (LOSS) $ (7,834 ) $ 2,922 $ 342 $ - $ (4,570 )
======== ======== = ======= ======= == ==== ==== ====== ==== ======= ====
NON-GAAP NET INCOME (LOSS) $ (7,427 ) $ 2,922 $ - $ - $ (4,505 )
======== ======== = ======= ======= == ==== ==== ====== ==== ======= ====
EBITDA $ (2,261 ) $ 5,400 $ - $ - $ 3,139
======== ======== = ======= ======= == ==== ==== ====== ==== =======
ADJUSTED EBITDA $ (1,854 ) $ 5,400 $ - $ - $ 3,546
======== ======== = ======= ======= == ==== ==== ====== ==== =======
A reconciliation of NET INCOME (LOSS) to EBITDA and ADJUSTED EBITDA
follows:
NET INCOME (LOSS) $ (7,834 ) $ 2,922 $ 342 $ - $ (4,570 )
(Income) loss from discontinued operations, net of tax - - (342 ) - (342 )
Income tax expense (benefit) (734 ) 1,055 - - 321
Interest expense (income) (202 ) 1,388 - - 1,186
Depreciation and amortization 6,509 35 - - 6,544
-------- ------- ---- ------ -------
EBITDA $ (2,261 ) $ 5,400 $ - $ - $ 3,139
Stock-based compensation 407 - - - 407
-------- ------- ---- ------ -------
ADJUSTED EBITDA $ (1,854 ) $ 5,400 $ - $ - $ 3,546
======== ======== = ======= ======= == ==== ==== ====== ==== =======
A reconciliation of NET INCOME (LOSS) to NON-GAAP NET INCOME (LOSS)
follows:
NET INCOME (LOSS) $ (7,834 ) $ 2,922 $ 342 $ - $ (4,570 )
(Income) loss from discontinued operations, net of tax - - (342 ) - (342 )
Stock-based compensation 407 - - - 407
-------- ------- ---- ------ -------
NON-GAAP NET INCOME (LOSS) $ (7,427 ) $ 2,922 $ - $ - $ (4,505 )
======== ======== = ======= ======= == ==== ==== ====== ==== ======= ====
Note: Business and Retail Connect includes our Supplies Distributors
and PFS Retail Connect operations, which operate similar financial
models on behalf of our client relationships. PFSweb includes
certain ongoing activity formerly reported as eCOST.
PFSweb, Inc. and Subsidiaries
---------------------------------------------------------------------------------------------------------------------------------------------
Unaudited Condensed Consolidating Balance Sheets
as of December 31, 2009
(In Thousands)
Supplies
PFSweb Distributors eCOST Eliminations Consolidated
-------------- -------------- -------------- ------------------ ------------------
ASSETS
-----------------------------------------------------------------------------
CURRENT ASSETS:
Cash and cash equivalents $ 9,698 $ 2,628 $ 2,486 $ - $ 14,812
Restricted cash 732 1,137 227 - 2,096
Accounts receivable, net 19,499 18,764 1,719 (121 ) 39,861
Inventories, net - 33,577 - - 33,577
Assets of discontinued operations - - 4,372 - 4,372
Other receivables 49 11,556 - - 11,605
Prepaid expenses and other current assets 2,515 1,575 80 - 4,170
------- ------ ------- ------- -------
Total current assets 32,493 69,237 8,884 (121 ) 110,493
------- ------ ------- ------- ---- -------
PROPERTY AND EQUIPMENT, net 9,900 54 31 - 9,985
RECEIVABLE/INVESTMENT IN AFFILIATES 20,696 - - (20,696 ) -
ASSETS OF DISCONTINUED OPERATIONS - - 4,353 - 4,353
OTHER ASSETS 2,627 - 311 - 2,938
------- ------ ------- ------- -------
Total assets 65,716 69,291 13,579 (20,817 ) 127,769
======= ====== ======= ======= ==== =======
LIABILITIES AND SHAREHOLDERS EQUITY
-----------------------------------------------------------------------------
CURRENT LIABILITIES:
Current portion of long-term debt and capital lease obligations $ 8,770 $ 10,374 $ 35 $ - $ 19,179
Trade accounts payable 8,396 38,753 6,614 (121 ) 53,642
Accrued expenses 10,994 4,701 2,649 - 18,344
------- ------ ------- ------- -------
Total current liabilities 28,160 53,828 9,298 (121 ) 91,165
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion 3,208 - 140 - 3,348
PAYABLE TO AFFILIATES - 5,005 15,840 (20,845 ) -
OTHER LIABILITIES 3,880 - 23 - 3,903
------- ------ ------- ------- -------
Total liabilities 35,248 58,833 25,301 (20,966 ) 98,416
------- ------ ------- ------- ---- -------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common stock 10 - 19 (19 ) 10
Capital contributions - 1,000 - (1,000 ) -
Additional paid-in capital 93,152 - 28,059 (28,059 ) 93,152
Retained earnings (accumulated deficit) (64,828 ) 6,781 (39,805 ) 31,889 (65,963 )
Accumulated other comprehensive income 2,219 2,677 5 (2,662 ) 2,239
Treasury stock (85 ) - - - (85 )
------- -- ------ ------- ------- ------- ----
Total shareholders' equity 30,468 10,458 (11,722 ) 149 29,353
------- ------ ------- -- ------- -------
Total liabilities and shareholders' equity $ 65,716 $ 69,291 $ 13,579 $ (20,817 ) $ 127,769
== ======= ====== ====== == ======= ==== ======= ==== ==== =======
SOURCE: PFSweb, Inc.
PFSweb, Inc. Mark C. Layton Chief Executive Officer or Thomas J. Madden Chief Financial Officer (972) 881-2900 or Investor Relations KCSA Strategic Communications Todd Fromer / Garth Russell (212) 896-1215 / (212) 896-1250 tfromer@kcsa.com / grussell@kcsa.com