SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): March 14, 2016
PFSweb, Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 000-28275 | 75-2837058 | ||
| (STATE OR OTHER JURISDICTION OF INCORPORATION) |
(COMMISSION FILE NUMBER) |
(IRS EMPLOYER IDENTIFICATION NO.) |
505 MILLENNIUM DRIVE
ALLEN, TX 75013
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(972) 881-2900
(REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE )
N/A
(FORMER NAME OR ADDRESS, IF CHANGED SINCE LAST REPORT)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
INFORMATION TO BE INCLUDED IN THE REPORT
| ITEM 2.02. | Results of Operations and Financial Condition |
On March 14, 2016, PFSweb, Inc. issued a press release announcing its financial results for the quarter ended December 31, 2015. Attached to this current report on Form 8-K is a copy of the related press release dated March 14, 2016. The information in this Report on Form 8-K, and the exhibit hereto, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section.
| Exhibit No. |
Description | |
| 99.1 | Press Release Issued March 14, 2016 | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PFSweb, Inc. | ||||||
| Dated: March 16, 2016 | By: | /s/ Thomas J. Madden | ||||
| Thomas J. Madden | ||||||
| Executive Vice President, Chief Financial and Accounting Officer | ||||||
Exhibit 99.1
PFSweb Reports Record Fourth Quarter and Full Year 2015 Results
- Q4 Service Fee Equivalent Revenue up 26% to $61.6 Million; Adjusted EBITDA up 9% to $7.5 Million -
Allen, TX – March 14, 2016 – PFSweb, Inc. (NASDAQ: PFSW), a global commerce service provider, reported results for the fourth quarter and full year ended December 31, 2015.
Fourth Quarter 2015 Highlights vs. Same Year-Ago Quarter
| • | Total revenues increased 14% to $90.1 million |
| • | Service fee equivalent revenue (a non-GAAP measure defined below) increased 26% to a record $61.6 million |
| • | Service fee gross margin increased 340 basis points to 31.6% |
| • | Adjusted EBITDA (a non-GAAP measure defined below) increased 9% to a Q4 record $7.5 million |
| • | Launched a new strategic commerce consulting practice to drive digital strategy for clients |
| • | Successfully concluded the 2015 holiday season with a high level of client satisfaction |
| • | Continued to aggressively build out global sales organization to support targeted future growth |
Management Commentary
“2015 was a breakthrough year for PFSweb as we consistently achieved record quarterly results,” said Michael Willoughby, CEO of PFSweb. “These results were driven by organic growth across all three of our core service offerings – agency, technology and omni-channel operations – and from the acquisitions of REV Solutions, LiveAreaLabs, Moda and CrossView. The fourth quarter was particularly strong due to heavy client volumes during the important holiday season, as well as increased project work in our higher-margin agency and technology services including the benefit of the CrossView acquisition completed in August 2015.
“During the fourth quarter, we launched our strategic commerce consulting practice, which provides high-value digital strategy and platform selection consulting to both B2B and B2C companies. Though we remain in the early stages of realizing the full benefits, we’ve already begun to leverage the services and insight from this practice to enhance our position and monetize earlier stages of the sales cycle.
“In 2016, we will continue to focus on driving growth through higher-margin service offerings, while serving as a strategic partner to our clients. We plan to continue leveraging the added platform and B2B capabilities from our CrossView acquisition to capitalize on a larger, more rapidly growing addressable market, with the ultimate goal of helping companies maximize their online sales across B2C and B2B channels. In order to aggressively capitalize on the opportunities we see in the market, we are making further investments in sales, marketing and infrastructure resources beginning in early 2016 to support our growth in the second half of 2016 and going forward. We will also continue to pursue strategic acquisitions to enhance our agency and technology services footprint in Western Europe. We believe the execution of these initiatives will further strengthen our leadership position in the global eCommerce marketplace.”
Page 1 of 14
Fourth Quarter 2015 Financial Results
Total revenues in the fourth quarter of 2015 increased 14% to $90.1 million compared to $78.7 million in the same period of 2014. Service fee revenue in the fourth quarter increased 27% to $60.9 million compared to $48.0 million last year. Product revenue was $13.9 million compared to $18.1 million in the same period of 2014 due to ongoing restructuring activities by the company’s last remaining client in this segment and their discontinuation of certain product lines.
Service fee equivalent revenue increased 26% to a fourth quarter record $61.6 million compared to $49.0 million in the year-ago quarter, driven by both new and expanded client relationships, as well as approximately $8 million of service fees generated by the company’s CrossView and Moda acquisitions in 2015.
Service fee gross margin in the fourth quarter increased 340 basis points to 31.6% compared to 28.2% in the same period of 2014. The increase was due to a higher proportion of agency and technology services in the 2015 quarter, in part due to the benefit from the acquisitions of REV and LiveArea that occurred in September 2014, as well as the Moda and CrossView acquisitions completed in 2015.
Adjusted EBITDA increased 9% to a fourth quarter record $7.5 million compared to $6.8 million in the same period of 2014. As a percentage of service fee equivalent revenue, adjusted EBITDA was 12.1% compared to 13.9% in the year-ago quarter.
Net loss in the fourth quarter was $0.6 million or $(0.03) per diluted share, compared to net income of $2.1 million or $0.12 per diluted share in the same period of 2014. Net loss in the fourth quarter of 2015 included $1.2 million in amortization of acquisition-related intangible assets, $1.2 million in stock-based compensation expense, and $1.3 million in acquisition-related, restructuring and other costs. This compares to $0.1 million in amortization of acquisition-related intangible assets, $0.6 million in stock-based compensation expense and $1.1 million in acquisition-related, restructuring and other costs in the same period of 2014.
Non-GAAP net income (a non-GAAP measure defined below) in the fourth quarter of 2015 was $3.1 million or $0.16 per diluted share, compared to $3.9 million or $0.21 per diluted share in the fourth quarter of 2014.
At December 31, 2015, cash and cash equivalents was $21.8 million compared to $18.1 million at December 31, 2014. Total debt was $35.4 million compared to $10.9 million at December 31, 2014, with the increase primarily due to funding of the CrossView acquisition.
Full Year 2015 Financial Results
Total revenues in 2015 increased 17% to $288.3 million compared to $247.0 million in 2014. Service fee revenue in 2015 increased 36% to a record $182.2 million compared to $134.4 million last year, while product revenue was $58.7 million compared to $75.3 million in the prior year. Service fee equivalent revenue increased 34% to a record $185.3 million compared to $138.7 million in 2014.
Page 2 of 14
Service fee gross margin in 2015 increased 280 basis points to 32.2% compared to 29.4% last year.
Adjusted EBITDA increased 52% to a record $20.7 million in 2015 compared to $13.7 million in 2014.
Net loss in 2015 was $7.9 million or $(0.45) per diluted share, compared to net loss of $4.6 million or $(0.28) per diluted share in 2014. Net loss in 2015 included $2.8 million in amortization of acquisition-related intangibles, $4.6 million in stock-based compensation expense, and $5.8 million in acquisition-related, restructuring and other costs. This compares to $0.1 million in amortization of acquisition-related intangibles, $3.1 million in stock-based compensation expense and $2.8 million in acquisition-related, restructuring and other costs in 2014.
Non-GAAP net income in 2015 increased 301% to a record $5.4 million or $0.29 per diluted share, compared to non-GAAP net income of $1.4 million or $0.08 per diluted share in 2014.
2016 Outlook
PFSweb currently expects continued strong growth in service fee equivalent revenue and adjusted EBITDA as the company realizes a full year of benefit from its recent acquisitions, as well as incremental revenue from new and expanded client relationships. At this time, the company is reiterating its target for 2016 service fee equivalent revenue to range between $220 million and $230 million, reflecting growth of 19% to 24% from 2015. The company is also reiterating its target for adjusted EBITDA to range between $23 million to $25 million, up 11% to 21% from 2015. This adjusted EBITDA target includes the expected impact of incremental sales and marketing expenditures as well as other infrastructure expenditures to support the company’s targeted future growth.
Conference Call
PFSweb will conduct a conference call today at 5:00 p.m. Eastern time to discuss its results for the fourth quarter and full year ended December 31, 2015.
CEO Michael Willoughby and CFO Tom Madden will host the conference call, followed by a question and answer period.
Date: Monday, March 14, 2016
Time: 5:00 p.m. Eastern Time (4:00 p.m. Central time)
Toll-free dial-in number: 1-888-523-1228
International dial-in number: 1-719-785-1765
Conference ID: 8183564
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios at 1-949-574-3860.
The conference call will be broadcast live and available for replay at http://public.viavid.com/index.php?id=118606 and via the investor relations section of the company’s website at www.pfsweb.com.
Page 3 of 14
A replay of the conference call will be available after 8:00 p.m. Eastern Time on the same day through March 28, 2016.
Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay ID: 8183564
About PFSweb, Inc.
PFSweb (NASDAQ: PFSW) is a global commerce service provider of solutions including digital strategy consulting, digital agency and marketing services, technology development services, business process outsourcing services, and a complete omni-channel technology ecosystem. The company provides these solutions and services to major brand names and other companies seeking to optimize every customer experience and enhance their traditional and online business channels. PFSweb supports organizations across various industries, including Procter & Gamble, L’Oreal, LEGO, Columbia Sportswear, ASICS, Roots Canada Ltd., PANDORA, Diageo, BCBGMAXAZRIA, ROKA Sports, T.J. Maxx, the United States Mint, and many more. PFSweb is headquartered in Allen, TX with additional locations in Tennessee, Mississippi, Minnesota, Washington, New York, Ohio, North Carolina, Canada, Belgium, London, Munich, and India. For more information, please visit www.pfsweb.com or download the free PFSweb IR App on your iPhone, iPad, or Android device.
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), Adjusted EBITDA and service fee equivalent revenue.
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, acquisition related, restructuring and other costs and the amortization of acquisition-related intangible assets.
EBITDA represents earnings (or losses) before interest, income taxes, depreciation, and amortization. Adjusted EBITDA further eliminates the effect of stock-based compensation, acquisition related, restructuring and other costs and amortization of acquisition-related intangible assets.
Service fee equivalent revenue represents service fee revenue plus the gross profit earned on product revenue.
Non-GAAP net income (loss), EBITDA, Adjusted EBITDA and service fee equivalent revenue 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, acquisition related, restructuring and other costs and amortization of acquisition-related intangible assets 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. Service fee equivalent revenue allows client contracts with similar operational support models but different financial models to be combined as if all contracts were being operated on a service fee revenue basis.
Page 4 of 14
PFSweb believes these non-GAAP measures provide useful information to both management and investors by focusing on certain operational metrics and excluding certain expenses in order to present its core operating performance and 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.
Forward-Looking Statements
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, 2014 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 of the Company 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.
Company Contact:
Michael C. Willoughby
Chief Executive Officer
or
Thomas J. Madden
Chief Financial Officer
Tel 972-881-2900
Investor Relations:
Liolios
Scott Liolios or Sean Mansouri
Tel 949-574-3860
PFSW@liolios.com
Page 5 of 14
PFSweb, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (A)
(In Thousands, Except Share Data)
| December 31, 2015 |
December 31, 2014 |
|||||||
| ASSETS | ||||||||
| CURRENT ASSETS: |
||||||||
| Cash and cash equivalents |
$ | 21,781 | $ | 18,128 | ||||
| Restricted cash |
275 | 521 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $600 and $447 at December 31, 2015 and December 31, 2014, respectively |
|
70,700 |
|
|
59,126 |
| ||
| Inventories, net of reserves of $739 and $768 at December 31, 2015 and December 31, 2014, respectively |
|
9,262 |
|
|
10,534 |
| ||
| Other receivables |
8,704 | 5,638 | ||||||
| Prepaid expenses and other current assets |
5,662 | 7,103 | ||||||
|
|
|
|
|
|||||
| Total current assets |
116,384 | 101,050 | ||||||
| PROPERTY AND EQUIPMENT, net |
24,093 | 26,604 | ||||||
| INTANGIBLE ASSETS, net |
8,810 | 2,170 | ||||||
| GOODWILL |
39,829 | 8,366 | ||||||
| OTHER ASSETS |
2,174 | 2,556 | ||||||
|
|
|
|
|
|||||
| Total assets |
191,290 | 140,746 | ||||||
|
|
|
|
|
|||||
| LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
| CURRENT LIABILITIES: |
||||||||
| Current portion of long-term debt and capital lease obligations |
$ | 3,153 | $ | 6,850 | ||||
| Trade accounts payable |
51,170 | 38,842 | ||||||
| Deferred revenue |
7,390 | 9,098 | ||||||
| Performance-based contingent payments |
11,679 | 2,338 | ||||||
| Accrued expenses |
30,563 | 26,135 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
103,955 | 83,263 | ||||||
| LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion |
32,238 | 4,062 | ||||||
| DEFERRED REVENUE |
4,499 | 5,355 | ||||||
| DEFERRED RENT |
4,362 | 4,870 | ||||||
| OTHER LONG-TERM LIABILITIES |
2,478 | 3,091 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
147,532 | 100,641 | ||||||
|
|
|
|
|
|||||
| 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; 18,136,218 and 17,047,093 shares issued at December 31, 2015 and December 31, 2014, respectively; and 18,102,751 and 17,013,622 shares outstanding as of December 31, 2015 and December 31, 2014, respectively |
18 | 17 | ||||||
| Additional paid-in capital |
141,948 | 129,457 | ||||||
| Accumulated deficit |
(97,787 | ) | (89,926 | ) | ||||
| Accumulated other comprehensive income |
(296 | ) | 682 | |||||
| Treasury stock at cost, 33,467 shares |
(125 | ) | (125 | ) | ||||
|
|
|
|
|
|||||
| Total shareholders’ equity |
43,758 | 40,105 | ||||||
|
|
|
|
|
|||||
| Total liabilities and shareholders’ equity |
$ | 191,290 | $ | 140,746 | ||||
|
|
|
|
|
|||||
| (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, 2014. |
Page 6 of 14
PFSweb, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations (A)
(In Thousands, Except Per Share Data)
| Three Months Ended December 31, |
Yearhs Ended December 31, |
|||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| REVENUES: |
||||||||||||||||
| Product revenue, net |
$ | 13,928 | $ | 18,102 | $ | 58,659 | $ | 75,284 | ||||||||
| Service fee revenue |
60,865 | 47,992 | 182,175 | 134,385 | ||||||||||||
| Pass-thru revenue |
15,271 | 12,587 | 47,435 | 37,379 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
90,064 | 78,681 | 288,269 | 247,048 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| COSTS OF REVENUES: |
||||||||||||||||
| Cost of product revenue |
13,215 | 17,067 | 55,587 | 71,019 | ||||||||||||
| Cost of service fee revenue |
41,633 | 34,471 | 123,574 | 94,858 | ||||||||||||
| Cost of pass-thru revenue |
15,271 | 12,587 | 47,435 | 37,379 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total costs of revenues |
70,119 | 64,125 | 226,596 | 203,256 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
19,945 | 14,556 | 61,673 | 43,792 | ||||||||||||
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
19,212 | 12,387 | 66,280 | 47,658 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income (loss) from operations |
733 | 2,169 | (4,607 | ) | (3,866 | ) | ||||||||||
| INTEREST EXPENSE, NET |
509 | 323 | 1,757 | 813 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income (loss) before income taxes |
224 | 1,846 | (6,364 | ) | (4,679 | ) | ||||||||||
| INCOME TAX PROVISION (BENEFIT) |
822 | (258 | ) | 1,497 | (53 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCOME (LOSS) |
$ | (598 | ) | $ | 2,104 | $ | (7,861 | ) | $ | (4,626 | ) | |||||
|
|
|
|
|
|
|
|
|
|||||||||
| NON-GAAP NET INCOME |
$ | 3,132 | $ | 3,883 | $ | 5,435 | $ | 1,355 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCOME (LOSS) PER SHARE: |
||||||||||||||||
| Basic |
$ | (0.03 | ) | $ | 0.12 | $ | (0.45 | ) | $ | (0.28 | ) | |||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | (0.03 | ) | $ | 0.12 | $ | (0.45 | ) | $ | (0.28 | ) | |||||
|
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|
|
|
|
|
|
|
|||||||||
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: |
||||||||||||||||
| Basic |
18,080 | 16,905 | 17,608 | 16,737 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
18,080 | 18,258 | 17,608 | 16,737 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EBITDA |
$ | 4,918 | $ | 5,195 | $ | 10,224 | $ | 7,809 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ADJUSTED EBITDA |
$ | 7,453 | $ | 6,835 | $ | 20,692 | $ | 13,651 | ||||||||
|
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|
|
|
|
|
|
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|||||||||
| (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, 2014. |
Page 7 of 14
PFSweb, Inc. and Subsidiaries
Reconciliation of Certain Non-GAAP Items to GAAP
(In Thousands, Except Per Share Data)
| Three Months Ended December 31, |
Yearhs Ended December 31, |
|||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| NET INCOME (LOSS) |
$ | (598 | ) | $ | 2,104 | $ | (7,861 | ) | $ | (4,626 | ) | |||||
| Income tax expense (benefit) |
822 | (258 | ) | 1,497 | (53 | ) | ||||||||||
| Interest expense, net |
509 | 323 | 1,757 | 813 | ||||||||||||
| Depreciation and amortization |
4,185 | 3,026 | 14,831 | 11,675 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EBITDA |
$ | 4,918 | $ | 5,195 | $ | 10,224 | $ | 7,809 | ||||||||
| Stock-based compensation |
1,191 | 550 | 4,637 | 3,059 | ||||||||||||
| Acquisition related, restructuring and other costs |
1,344 | 1,090 | 5,831 | 2,783 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ADJUSTED EBITDA |
$ | 7,453 | $ | 6,835 | $ | 20,692 | $ | 13,651 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Three Months Ended December 31, |
Yearhs Ended December 31, |
|||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| NET INCOME (LOSS) |
$ | (598 | ) | $ | 2,104 | $ | (7,861 | ) | $ | (4,626 | ) | |||||
| Stock-based compensation |
1,191 | 550 | 4,637 | 3,059 | ||||||||||||
| Amortization of acquisition-related intangible assets |
1,195 | 139 | 2,828 | 139 | ||||||||||||
| Acquisition related, restructuring and other costs |
1,344 | 1,090 | 5,831 | 2,783 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NON-GAAP NET INCOME |
$ | 3,132 | $ | 3,883 | $ | 5,435 | $ | 1,355 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCOME (LOSS) PER SHARE: |
||||||||||||||||
| Basic |
$ | (0.03 | ) | $ | 0.12 | $ | (0.45 | ) | $ | (0.28 | ) | |||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | (0.03 | ) | $ | 0.12 | $ | (0.45 | ) | $ | (0.28 | ) | |||||
|
|
|
|
|
|
|
|
|
|||||||||
| NON-GAAP NET INCOME PER SHARE: |
||||||||||||||||
| Basic |
$ | 0.17 | $ | 0.23 | $ | 0.31 | $ | 0.08 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | 0.16 | $ | 0.21 | $ | 0.29 | $ | 0.08 | ||||||||
|
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|||||||||
| Three Months Ended December 31, |
Yearhs Ended December 31, |
|||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
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|||||||||
| TOTAL REVENUES |
$ | 90,064 | $ | 78,681 | $ | 288,269 | $ | 247,048 | ||||||||
| Pass-thru revenue |
(15,271 | ) | (12,587 | ) | (47,435 | ) | (37,379 | ) | ||||||||
| Cost of product revenue |
(13,215 | ) | (17,067 | ) | (55,587 | ) | (71,019 | ) | ||||||||
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|||||||||
| SERVICE FEE EQUIVALENT REVENUE |
$ | 61,578 | $ | 49,027 | $ | 185,247 | $ | 138,650 | ||||||||
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Page 8 of 14
PFSweb, Inc. and Subsidiaries
Unaudited Consolidating Statements of Operations
For the Three Months Ended December 31, 2015
(In Thousands)
| PFSweb | Business & Retail Connect |
Eliminations | Consolidated | |||||||||||||
| REVENUES: |
||||||||||||||||
| Product revenue, net |
$ | — | $ | 13,928 | $ | — | $ | 13,928 | ||||||||
| Service fee revenue |
54,771 | 6,094 | — | 60,865 | ||||||||||||
| Service fee revenue - affiliate |
5,422 | 250 | (5,672 | ) | — | |||||||||||
| Pass-thru revenue |
15,271 | — | — | 15,271 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
75,464 | 20,272 | (5,672 | ) | 90,064 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| COSTS OF REVENUES: |
||||||||||||||||
| Cost of product revenue |
— | 13,256 | — | 13,256 | ||||||||||||
| Cost of service fee revenue |
41,345 | 5,736 | (5,489 | ) | 41,592 | |||||||||||
| Cost of pass-thru revenue |
15,271 | — | — | 15,271 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total costs of revenues |
56,616 | 18,992 | (5,489 | ) | 70,119 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
18,848 | 1,280 | (183 | ) | 19,945 | |||||||||||
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
18,899 | 496 | (183 | ) | 19,212 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income (loss) from operations |
(51 | ) | 784 | — | 733 | |||||||||||
| INTEREST EXPENSE, NET |
414 | 95 | — | 509 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income (loss) before income taxes |
(465 | ) | 689 | — | 224 | |||||||||||
| INCOME TAX PROVISION |
592 | 230 | — | 822 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCOME (LOSS) |
$ | (1,057 | ) | $ | 459 | $ | — | $ | (598 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NON-GAAP NET INCOME |
$ | 2,673 | $ | 459 | $ | — | $ | 3,132 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EBITDA |
$ | 4,124 | $ | 794 | $ | — | $ | 4,918 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ADJUSTED EBITDA |
$ | 6,659 | $ | 794 | $ | — | $ | 7,453 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| A reconciliation of NET INCOME (LOSS) to EBITDA and ADJUSTED EBITDA follows: |
|
|||||||||||||||
| NET INCOME (LOSS) |
$ | (1,057 | ) | $ | 459 | $ | — | (598 | ) | |||||||
| Income tax expense |
592 | 230 | — | 822 | ||||||||||||
| Interest expense, net |
414 | 95 | — | 509 | ||||||||||||
| Amortization of acquisition-related intangible assets |
1,195 | — | — | 1,195 | ||||||||||||
| Depreciation and amortization |
2,980 | 10 | — | 2,990 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EBITDA |
$ | 4,124 | $ | 794 | $ | — | $ | 4,918 | ||||||||
| Stock-based compensation |
1,191 | — | — | 1,191 | ||||||||||||
| Acquisition related, restructuring and other costs |
1,344 | — | — | 1,344 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ADJUSTED EBITDA |
$ | 6,659 | $ | 794 | $ | — | $ | 7,453 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| A reconciliation of NET INCOME (LOSS) to NON-GAAP NET INCOME follows: |
||||||||||||||||
| NET INCOME (LOSS) |
$ | (1,057 | ) | $ | 459 | $ | — | $ | (598 | ) | ||||||
| Stock-based compensation |
1,191 | — | — | 1,191 | ||||||||||||
| Amortization of acquisition-related intangible assets |
1,195 | — | — | 1,195 | ||||||||||||
| Acquisition related, restructuring and other costs |
1,344 | — | — | 1,344 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NON-GAAP NET INCOME |
$ | 2,673 | $ | 459 | $ | — | $ | 3,132 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
Note: Business and Retail Connect includes our Supplies Distributors and PFSweb Retail Connect operations, which operate similar financial models on behalf of our client relationships.
Page 9 of 14
PFSweb, Inc. and Subsidiaries
Unaudited Consolidating Statements of Operations
For the Three Months Ended December 31, 2014
(In Thousands)
| PFSweb | Business & Retail Connect |
Eliminations | Consolidated | |||||||||||||
| REVENUES: |
||||||||||||||||
| Product revenue, net |
$ | — | $ | 18,102 | $ | — | $ | 18,102 | ||||||||
| Service fee revenue |
42,634 | 5,358 | — | 47,992 | ||||||||||||
| Service fee revenue - affiliate |
4,642 | 292 | (4,934 | ) | — | |||||||||||
| Pass-thru revenue |
12,587 | — | — | 12,587 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
59,863 | 23,752 | (4,934 | ) | 78,681 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| COSTS OF REVENUES: |
||||||||||||||||
| Cost of product revenue |
— | 17,067 | — | 17,067 | ||||||||||||
| Cost of service fee revenue |
33,855 | 5,328 | (4,712 | ) | 34,471 | |||||||||||
| Cost of pass-thru revenue |
12,587 | — | — | 12,587 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total costs of revenues |
46,442 | 22,395 | (4,712 | ) | 64,125 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
13,421 | 1,357 | (222 | ) | 14,556 | |||||||||||
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
12,025 | 584 | (222 | ) | 12,387 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income from operations |
1,396 | 773 | — | 2,169 | ||||||||||||
| INTEREST EXPENSE, NET |
196 | 127 | — | 323 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income before income taxes |
1,200 | 646 | — | 1,846 | ||||||||||||
| INCOME TAX PROVISION (BENEFIT) |
(497 | ) | 239 | — | (258 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCOME |
$ | 1,697 | $ | 407 | $ | — | $ | 2,104 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NON-GAAP NET INCOME |
$ | 3,476 | $ | 407 | $ | — | $ | 3,883 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EBITDA |
$ | 4,409 | $ | 786 | $ | — | $ | 5,195 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ADJUSTED EBITDA |
$ | 6,049 | $ | 786 | $ | — | $ | 6,835 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| A reconciliation of NET INCOME to EBITDA and ADJUSTED EBITDA follows: |
||||||||||||||||
| NET INCOME |
$ | 1,697 | $ | 407 | $ | — | 2,104 | |||||||||
| Income tax expense (benefit) |
(497 | ) | 239 | — | (258 | ) | ||||||||||
| Interest expense, net |
196 | 127 | — | 323 | ||||||||||||
| Amortization of acquisition-related intangible assets |
139 | — | — | 139 | ||||||||||||
| Depreciation and amortization |
2,874 | 13 | — | 2,887 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EBITDA |
$ | 4,409 | $ | 786 | $ | — | $ | 5,195 | ||||||||
| Stock-based compensation |
550 | — | — | 550 | ||||||||||||
| Acquisition related, restructuring and other costs |
1,090 | — | — | 1,090 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ADJUSTED EBITDA |
$ | 6,049 | $ | 786 | $ | — | $ | 6,835 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| A reconciliation of NET INCOME to NON-GAAP NET INCOME follows: |
||||||||||||||||
| NET INCOME |
$ | 1,697 | $ | 407 | $ | — | $ | 2,104 | ||||||||
| Stock-based compensation |
550 | — | — | 550 | ||||||||||||
| Amortization of acquisition-related intangible assets |
139 | — | — | 139 | ||||||||||||
| Acquisition related, restructuring and other costs |
1,090 | — | — | 1,090 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NON-GAAP NET INCOME |
$ | 3,476 | $ | 407 | $ | — | $ | 3,883 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
Note: Business and Retail Connect includes our Supplies Distributors and PFSweb Retail Connect operations, which operate similar financial models on behalf of our client relationships.
Page 10 of 14
PFSweb, Inc. and Subsidiaries
Unaudited Consolidating Statements of Operations
For the Year Ended December 31, 2015
(In Thousands)
| PFSweb | Business & Retail Connect |
Eliminations | Consolidated | |||||||||||||
| REVENUES: |
||||||||||||||||
| Product revenue, net |
$ | — | $ | 58,659 | $ | — | $ | 58,659 | ||||||||
| Service fee revenue |
165,510 | 16,665 | — | 182,175 | ||||||||||||
| Service fee revenue - affiliate |
15,559 | 818 | (16,377 | ) | — | |||||||||||
| Pass-thru revenue |
47,435 | — | — | 47,435 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
228,504 | 76,142 | (16,377 | ) | 288,269 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| COSTS OF REVENUES: |
||||||||||||||||
| Cost of product revenue |
— | 55,587 | — | 55,587 | ||||||||||||
| Cost of service fee revenue |
122,981 | 16,193 | (15,600 | ) | 123,574 | |||||||||||
| Cost of pass-thru revenue |
47,435 | — | — | 47,435 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total costs of revenues |
170,416 | 71,780 | (15,600 | ) | 226,596 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
58,088 | 4,362 | (777 | ) | 61,673 | |||||||||||
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
64,427 | 2,630 | (777 | ) | 66,280 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income (loss) from operations |
(6,339 | ) | 1,732 | — | (4,607 | ) | ||||||||||
| INTEREST EXPENSE, NET |
1,326 | 431 | — | 1,757 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income (loss) before income taxes |
(7,665 | ) | 1,301 | — | (6,364 | ) | ||||||||||
| INCOME TAX PROVISION |
954 | 543 | — | 1,497 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCOME (LOSS) |
$ | (8,619 | ) | $ | 758 | $ | — | $ | (7,861 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NON-GAAP NET INCOME |
$ | 4,357 | $ | 1,078 | $ | — | $ | 5,435 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EBITDA |
$ | 8,424 | $ | 1,800 | $ | — | $ | 10,224 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ADJUSTED EBITDA |
$ | 18,572 | $ | 2,120 | $ | — | $ | 20,692 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| A reconciliation of NET INCOME (LOSS) to EBITDA and ADJUSTED EBITDA follows: |
||||||||||||||||
| NET INCOME (LOSS) |
$ | (8,619 | ) | $ | 758 | $ | — | (7,861 | ) | |||||||
| Income tax expense (benefit) |
954 | 543 | — | 1,497 | ||||||||||||
| Interest expense (income), net |
1,326 | 431 | — | 1,757 | ||||||||||||
| Amortization of acquisition-related intangible assets |
2,828 | — | — | 2,828 | ||||||||||||
| Depreciation and amortization |
11,935 | 68 | — | 12,003 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EBITDA |
$ | 8,424 | $ | 1,800 | $ | — | $ | 10,224 | ||||||||
| Stock-based compensation |
4,637 | — | — | 4,637 | ||||||||||||
| Acquisition related, restructuring and other costs |
5,511 | 320 | — | 5,831 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ADJUSTED EBITDA |
$ | 18,572 | $ | 2,120 | $ | — | $ | 20,692 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| A reconciliation of NET INCOME (LOSS) to NON-GAAP NET INCOME follows: |
||||||||||||||||
| NET INCOME (LOSS) |
$ | (8,619 | ) | $ | 758 | $ | — | $ | (7,861 | ) | ||||||
| Stock-based compensation |
4,637 | — | — | 4,637 | ||||||||||||
| Amortization of acquisition-related intangible assets |
2,828 | — | — | 2,828 | ||||||||||||
| Acquisition related, restructuring and other costs |
5,511 | 320 | — | 5,831 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NON-GAAP NET INCOME |
$ | 4,357 | $ | 1,078 | $ | — | $ | 5,435 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
Note: Business and Retail Connect includes our Supplies Distributors and PFSweb Retail Connect operations, which operate similar financial models on behalf of our client relationships.
Page 11 of 14
PFSweb, Inc. and Subsidiaries
Unaudited Consolidating Statements of Operations
For the Year Ended December 31, 2014
(In Thousands)
| PFSweb | Business & Retail Connect |
Eliminations | Consolidated | |||||||||||||
| REVENUES: |
||||||||||||||||
| Product revenue, net |
$ | — | $ | 75,284 | $ | — | $ | 75,284 | ||||||||
| Service fee revenue |
119,573 | 14,812 | — | 134,385 | ||||||||||||
| Service fee revenue - affiliate |
14,556 | 1,138 | (15,694 | ) | — | |||||||||||
| Pass-thru revenue |
37,379 | — | — | 37,379 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
171,508 | 91,234 | (15,694 | ) | 247,048 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| COSTS OF REVENUES: |
||||||||||||||||
| Cost of product revenue |
— | 71,019 | — | 71,019 | ||||||||||||
| Cost of service fee revenue |
94,301 | 15,182 | (14,625 | ) | 94,858 | |||||||||||
| Cost of pass-thru revenue |
37,379 | — | — | 37,379 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total costs of revenues |
131,680 | 86,201 | (14,625 | ) | 203,256 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
39,828 | 5,033 | (1,069 | ) | 43,792 | |||||||||||
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
45,779 | 2,948 | (1,069 | ) | 47,658 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income (loss) from operations |
(5,951 | ) | 2,085 | — | (3,866 | ) | ||||||||||
| INTEREST EXPENSE (INCOME), NET |
264 | 549 | — | 813 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income (loss) before income taxes |
(6,215 | ) | 1,536 | — | (4,679 | ) | ||||||||||
| INCOME TAX PROVISION (BENEFIT) |
(625 | ) | 572 | — | (53 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCOME (LOSS) |
$ | (5,590 | ) | $ | 964 | $ | — | $ | (4,626 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NON-GAAP NET INCOME |
$ | 391 | $ | 964 | $ | — | $ | 1,355 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EBITDA |
$ | 5,669 | $ | 2,140 | $ | — | $ | 7,809 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ADJUSTED EBITDA |
$ | 11,511 | $ | 2,140 | $ | — | $ | 13,651 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| A reconciliation of NET INCOME (LOSS) to EBITDA and ADJUSTED EBITDA follows: |
||||||||||||||||
| NET INCOME (LOSS) |
$ | (5,590 | ) | $ | 964 | $ | — | (4,626 | ) | |||||||
| Income tax expense (benefit) |
(625 | ) | 572 | — | (53 | ) | ||||||||||
| Interest expense (income), net |
264 | 549 | — | 813 | ||||||||||||
| Amortization of acquisition-related intangible assets |
139 | — | — | 139 | ||||||||||||
| Depreciation and amortization |
11,481 | 55 | — | 11,536 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EBITDA |
$ | 5,669 | $ | 2,140 | $ | — | $ | 7,809 | ||||||||
| Stock-based compensation |
3,059 | — | — | 3,059 | ||||||||||||
| Acquisition related, restructuring and other costs |
2,783 | — | — | 2,783 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ADJUSTED EBITDA |
$ | 11,511 | $ | 2,140 | $ | — | $ | 13,651 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| A reconciliation of NET INCOME (LOSS) to NON-GAAP NET INCOME (LOSS) follows: |
||||||||||||||||
| NET INCOME (LOSS) |
$ | (5,590 | ) | $ | 964 | $ | — | $ | (4,626 | ) | ||||||
| Stock-based compensation |
3,059 | — | — | 3,059 | ||||||||||||
| Amortization of acquisition-related intangible assets |
139 | — | — | 139 | ||||||||||||
| Acquisition related, restructuring and other costs |
2,783 | — | — | 2,783 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NON-GAAP NET INCOME |
$ | 391 | $ | 964 | $ | — | $ | 1,355 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
Note: Business and Retail Connect includes our Supplies Distributors and PFSweb Retail Connect operations, which operate similar financial models on behalf of our client relationships.
Page 12 of 14
PFSweb, Inc. and Subsidiaries
Unaudited Condensed Consolidating Balance Sheets
as of December 31, 2015
(In Thousands)
| PFSweb | Business & Retail Connect |
Eliminations | Consolidated | |||||||||||||
| ASSETS | ||||||||||||||||
| CURRENT ASSETS: |
||||||||||||||||
| Cash and cash equivalents |
$ | 7,962 | $ | 13,819 | $ | — | $ | 21,781 | ||||||||
| Restricted cash |
51 | 224 | — | 275 | ||||||||||||
| Accounts receivable, net |
51,231 | 20,348 | (879 | ) | 70,700 | |||||||||||
| Inventories, net |
— | 9,262 | — | 9,262 | ||||||||||||
| Other receivables |
2,621 | 6,083 | — | 8,704 | ||||||||||||
| Prepaid expenses and other current assets |
4,744 | 918 | — | 5,662 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total current assets |
66,609 | 50,654 | (879 | ) | 116,384 | |||||||||||
| PROPERTY AND EQUIPMENT, net |
24,065 | 28 | — | 24,093 | ||||||||||||
| RECEIVABLE/INVESTMENT IN AFFILIATES |
9,577 | — | (9,577 | ) | — | |||||||||||
| INTANGIBLE ASSETS, net |
8,810 | — | — | 8,810 | ||||||||||||
| GOODWILL |
39,829 | — | — | 39,829 | ||||||||||||
| OTHER ASSETS |
2,174 | — | — | 2,174 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total assets |
151,064 | 50,682 | (10,456 | ) | 191,290 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||||||||||
| CURRENT LIABILITIES: |
||||||||||||||||
| Current portion of long-term debt and capital lease obligations |
$ | 3,153 | $ | — | $ | — | $ | 3,153 | ||||||||
| Trade accounts payable |
15,329 | 36,710 | (869 | ) | 51,170 | |||||||||||
| Deferred revenue |
7,390 | — | — | 7,390 | ||||||||||||
| Performance-based contingent payments |
11,679 | — | — | 11,679 | ||||||||||||
| Accrued expenses |
26,015 | 4,558 | (10 | ) | 30,563 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total current liabilities |
63,566 | 41,268 | (879 | ) | 103,955 | |||||||||||
| LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion |
32,238 | — | — | 32,238 | ||||||||||||
| PAYABLE TO AFFILIATES |
— | 22,056 | (22,056 | ) | — | |||||||||||
| DEFERRED REVENUE |
4,499 | — | — | 4,499 | ||||||||||||
| DEFERRED RENT |
4,362 | — | — | 4,362 | ||||||||||||
| OTHER LONG-TERM LIABILITIES |
2,478 | — | — | 2,478 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total liabilities |
107,143 | 63,324 | (22,935 | ) | 147,532 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| COMMITMENTS AND CONTINGENCIES |
||||||||||||||||
| SHAREHOLDERS’ EQUITY: |
||||||||||||||||
| Common stock |
18 | 19 | (19 | ) | 18 | |||||||||||
| Capital contributions |
— | 1,000 | (1,000 | ) | — | |||||||||||
| Additional paid-in capital |
141,948 | 28,060 | (28,060 | ) | 141,948 | |||||||||||
| Retained earnings (accumulated deficit) |
(97,616 | ) | (42,827 | ) | 42,656 | (97,787 | ) | |||||||||
| Accumulated other comprehensive income |
(304 | ) | 1,106 | (1,098 | ) | (296 | ) | |||||||||
| Treasury stock |
(125 | ) | — | — | (125 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total shareholders’ equity |
43,921 | (12,642 | ) | 12,479 | 43,758 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total liabilities and shareholders’ equity |
$ | 151,064 | $ | 50,682 | $ | (10,456 | ) | $ | 191,290 | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (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, 2014. |
Page 13 of 14
PFSweb, Inc. and Subsidiaries
Unaudited Condensed Consolidating Balance Sheets
as of December 31, 2014
(In Thousands)
| PFSweb | Business & Retail Connect |
Eliminations | Consolidated | |||||||||||||
| ASSETS | ||||||||||||||||
| CURRENT ASSETS: |
||||||||||||||||
| Cash and cash equivalents |
$ | 6,671 | $ | 11,457 | $ | — | $ | 18,128 | ||||||||
| Restricted cash |
— | 521 | — | 521 | ||||||||||||
| Accounts receivable, net |
42,081 | 18,415 | (1,370 | ) | 59,126 | |||||||||||
| Inventories, net |
— | 10,534 | — | 10,534 | ||||||||||||
| Other receivables |
— | 5,638 | — | 5,638 | ||||||||||||
| Prepaid expenses and other current assets |
6,141 | 962 | — | 7,103 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total current assets |
54,893 | 47,527 | (1,370 | ) | 101,050 | |||||||||||
| PROPERTY AND EQUIPMENT, net |
26,478 | 126 | — | 26,604 | ||||||||||||
| RECEIVABLE/INVESTMENT IN AFFILIATES |
9,938 | — | (9,938 | ) | — | |||||||||||
| INTANGIBLE ASSETS, net |
2,170 | — | — | 2,170 | ||||||||||||
| GOODWILL |
8,366 | — | — | 8,366 | ||||||||||||
| OTHER ASSETS |
2,527 | 29 | — | 2,556 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total assets |
104,372 | 47,682 | (11,308 | ) | 140,746 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||||||||||
| CURRENT LIABILITIES: |
||||||||||||||||
| Current portion of long-term debt and capital lease obligations |
$ | 3,583 | $ | 3,267 | $ | — | $ | 6,850 | ||||||||
| Trade accounts payable |
13,001 | 27,211 | (1,370 | ) | 38,842 | |||||||||||
| Deferred revenue |
9,098 | — | — | 9,098 | ||||||||||||
| Performance-based contingent payments |
2,338 | — | — | 2,338 | ||||||||||||
| Accrued expenses |
19,000 | 7,135 | — | 26,135 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total current liabilities |
47,020 | 37,613 | (1,370 | ) | 83,263 | |||||||||||
| LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion |
4,062 | — | — | 4,062 | ||||||||||||
| PAYABLE TO AFFILIATES |
— | 22,045 | (22,045 | ) | — | |||||||||||
| DEFERRED REVENUE |
5,355 | — | — | 5,355 | ||||||||||||
| DEFERRED RENT |
4,870 | — | — | 4,870 | ||||||||||||
| OTHER LONG-TERM LIABILITIES |
3,091 | — | — | 3,091 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total liabilities |
64,398 | 59,658 | (23,415 | ) | 100,641 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| COMMITMENTS AND CONTINGENCIES |
||||||||||||||||
| SHAREHOLDERS’ EQUITY: |
||||||||||||||||
| Common stock |
17 | 19 | (19 | ) | 17 | |||||||||||
| Capital contributions |
— | 1,000 | (1,000 | ) | — | |||||||||||
| Additional paid-in capital |
129,457 | 28,060 | (28,060 | ) | 129,457 | |||||||||||
| Retained earnings (accumulated deficit) |
(90,061 | ) | (42,711 | ) | 42,846 | (89,926 | ) | |||||||||
| Accumulated other comprehensive income |
686 | 1,656 | (1,660 | ) | 682 | |||||||||||
| Treasury stock |
(125 | ) | — | — | (125 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total shareholders’ equity |
39,974 | (11,976 | ) | 12,107 | 40,105 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total liabilities and shareholders’ equity |
$ | 104,372 | $ | 47,682 | $ | (11,308 | ) | $ | 140,746 | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (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, 2014. |
Page 14 of 14