Delaware | 000-28275 | 75-2837058 | ||
(STATE OR OTHER JURISDICTION | (COMMISSION FILE NUMBER) | (IRS EMPLOYER | ||
OF INCORPORATION) | IDENTIFICATION NO.) |
o | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description | |
99.1
|
Press Release Issued March 31, 2009 |
PFSweb, Inc. |
||||
Dated: April 1, 2009 | By: | /s/ Thomas J. Madden | ||
Thomas J. Madden | ||||
Executive Vice President, Chief Financial and Accounting Officer |
||||
Contact: |
||
Mark C. Layton
|
Todd Fromer / Garth Russell | |
Senior Partner and Chief Executive Officer
|
Investor Relations | |
Or Thomas J. Madden
|
KCSA Strategic Communications | |
Senior Partner and Chief Financial Officer
|
(212) 896-1215 / (212) 896-1250 | |
(972) 881-2900
|
tfromer@kcsa.com / grussell@kcsa.com |
| Total reported revenue was $112.8 million compared to $122.0 million for the fourth quarter of 2007; | ||
| Adjusted EBITDA (as defined) was $2.4 million versus $3.5 million for the same period last year; |
| Net income, excluding a non-cash charge of $16.3 million attributable to the impairment of identifiable intangibles and goodwill of eCOST.com, was $0.1 million, or $.01 per basic and diluted share, compared to net income of $0.7 million, or $0.07 per basic share and $0.06 per diluted share, for the fourth quarter of 2007; |
o | Including the impact of the non-cash impairment charge, net loss for the fourth quarter of 2008 was $16.3 million, or $1.63 per basic and diluted share. The charge was taken in accordance with Statement of Financial Accounting Standards 142 Goodwill and Other Intangible Assets, primarily due to adverse equity market conditions and the global economic downturn that caused a decrease in the current market multiples and the Companys stock price as of December 31, 2008. While the impairment charge reduced reported results for 2008, it does not affect operations, debt covenants, or the Companys liquidity position as of December 31, 2008; |
| Non-GAAP net income (as defined) was $387,000, or $0.04 per basic and diluted share, compared to non-GAAP net income of $1.1 million, or $0.11 per basic share and $0.10 per diluted share, for the fourth quarter of 2007; | ||
| Merchandise sales (as defined) totaled approximately $725 million for the fourth quarter of 2008 versus approximately $850 million for the same period last year; and | ||
| Total cash, cash equivalents and restricted cash equaled $18.1 million as of December 31, 2008 compared to $16.3 million as of December 31, 2007. |
| Total reported revenue was $451.8 million, compared to $446.8 million for the year ended December 31, 2007; | ||
| Adjusted EBITDA (as defined) was $10.1 million versus $10.9 million for the same period last year; | ||
| Net income, excluding a non-cash impairment charge of $16.3 million attributable to the identifiable intangibles and goodwill of eCOST.com, was $0.6 million, or $0.06 per basic and diluted share, compared to a net loss of $1.4 million, or $0.14 per basic and diluted share, for the year ended December 31, 2007; |
o | Including the impact of the non-cash impairment charge, net loss for calendar year 2008 was $15.7 million, or $1.58 per basic and diluted share; |
| Non-GAAP net income (as defined) was $1.9 million, or $0.20 per basic and diluted share, compared to a non-GAAP net income of $0.2 million, or $0.02 per basic and diluted share, for the same period last year; | ||
| Free cash flow (as defined) was $3.7 million, compared to free cash flow of $1.5 million for the same period last year; and | ||
| Merchandise sales (as defined) totaled nearly $2.8 billion versus $2.9 billion for the year ended December 31, 2007. |
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
REVENUES: |
||||||||||||||||
Product revenue, net |
$ | 78,036 | $ | 89,102 | $ | 330,532 | $ | 339,500 | ||||||||
Service fee revenue |
21,691 | 21,474 | 85,406 | 74,480 | ||||||||||||
Pass-thru revenue |
13,054 | 11,424 | 35,905 | 32,822 | ||||||||||||
Total revenues |
112,781 | 122,000 | 451,843 | 446,802 | ||||||||||||
COSTS OF REVENUES: |
||||||||||||||||
Cost of product revenue |
71,615 | 82,392 | 305,090 | 313,835 | ||||||||||||
Cost of service fee revenue |
14,723 | 15,164 | 58,009 | 53,375 | ||||||||||||
Cost of pass-thru revenue |
13,054 | 11,424 | 35,905 | 32,822 | ||||||||||||
Total costs of revenues |
99,392 | 108,980 | 399,004 | 400,032 | ||||||||||||
Gross profit |
13,389 | 13,020 | 52,839 | 46,770 | ||||||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
12,675 | 11,553 | 49,073 | 44,057 | ||||||||||||
MERGER INTEGRATION EXPENSE |
| | | 150 | ||||||||||||
AMORTIZATION OF IDENTIFIABLE INTANGIBLES |
202 | 204 | 806 | 806 | ||||||||||||
GOODWILL AND INTANGIBLE ASSET IMPAIRMENT |
16,250 | | 16,250 | | ||||||||||||
Total operating expenses |
29,127 | 11,757 | 66,129 | 45,013 | ||||||||||||
Income (loss) from operations |
(15,738 | ) | 1,263 | (13,290 | ) | 1,757 | ||||||||||
INTEREST EXPENSE, NET |
437 | 486 | 1,560 | 2,342 | ||||||||||||
Income (loss) before income taxes |
(16,175 | ) | 777 | (14,850 | ) | (585 | ) | |||||||||
INCOME TAX PROVISION |
(1 | ) | 116 | 805 | 799 | |||||||||||
NET INCOME (LOSS) |
$ | (16,174 | ) | $ | 661 | $ | (15,655 | ) | $ | (1,384 | ) | |||||
NON-GAAP NET INCOME (LOSS) |
$ | 387 | $ | 1,059 | $ | 1,948 | $ | 186 | ||||||||
NET INCOME (LOSS) PER SHARE: |
||||||||||||||||
Basic |
$ | (1.63 | ) | $ | 0.07 | $ | (1.58 | ) | $ | (0.14 | ) | |||||
Diluted |
$ | (1.63 | ) | $ | 0.06 | $ | (1.58 | ) | $ | (0.14 | ) | |||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: |
||||||||||||||||
Basic |
9,916 | 9,891 | 9,905 | 9,889 | ||||||||||||
Diluted |
9,916 | 10,198 | 9,905 | 9,889 | ||||||||||||
EBITDA |
$ | (13,935 | ) | $ | 3,320 | $ | (6,668 | ) | $ | 9,937 | ||||||
ADJUSTED EBITDA |
$ | 2,424 | $ | 3,514 | $ | 10,129 | $ | 10,851 | ||||||||
(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, 2008. |
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
NET INCOME (LOSS) |
$ | (16,174 | ) | $ | 661 | $ | (15,655 | ) | $ | (1,384 | ) | |||||
Income tax expense |
(1 | ) | 116 | 805 | 799 | |||||||||||
Interest expense |
437 | 486 | 1,560 | 2,342 | ||||||||||||
Depreciation and amortization |
1,803 | 2,057 | 6,622 | 8,180 | ||||||||||||
EBITDA |
$ | (13,935 | ) | $ | 3,320 | $ | (6,668 | ) | $ | 9,937 | ||||||
Stock-based compensation |
109 | 194 | 547 | 764 | ||||||||||||
Merger integration related expenses |
| | | 150 | ||||||||||||
Goodwill and intangible asset impairment |
16,250 | | 16,250 | | ||||||||||||
ADJUSTED EBITDA |
$ | 2,424 | $ | 3,514 | $ | 10,129 | $ | 10,851 | ||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
NET INCOME (LOSS) |
$ | (16,174 | ) | $ | 661 | $ | (15,655 | ) | $ | (1,384 | ) | |||||
Stock-based compensation |
109 | 194 | 547 | 764 | ||||||||||||
Amortization of identifiable intangible assets |
202 | 204 | 806 | 806 | ||||||||||||
Goodwill and intangible asset impairment |
16,250 | | 16,250 | | ||||||||||||
NON-GAAP NET INCOME (LOSS) |
$ | 387 | $ | 1,059 | $ | 1,948 | $ | 186 | ||||||||
NET INCOME (LOSS) PER SHARE: |
||||||||||||||||
Basic |
$ | (1.63 | ) | $ | 0.07 | $ | (1.58 | ) | $ | (0.14 | ) | |||||
Diluted |
$ | (1.63 | ) | $ | 0.06 | $ | (1.58 | ) | $ | (0.14 | ) | |||||
NON-GAAP NET INCOME (LOSS) Per Share: |
||||||||||||||||
Basic |
$ | 0.04 | $ | 0.11 | $ | 0.20 | $ | 0.02 | ||||||||
Diluted |
$ | 0.04 | $ | 0.10 | $ | 0.20 | $ | 0.02 | ||||||||
Twelve Months Ended | ||||||||
December 31, | ||||||||
2008 | 2007 | |||||||
GAAP cash flow from operating activities |
$ | 9,451 | $ | 5,399 | ||||
Capital expenditures |
(5,754 | ) | (3,862 | ) | ||||
FREE CASH FLOW |
$ | 3,697 | $ | 1,537 | ||||
December 31, | December 31, | |||||||
2008 | 2007 | |||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 16,050 | $ | 14,272 | ||||
Restricted cash |
2,008 | 2,021 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $980 and
$1,483 at December 31, 2008 and December 31, 2007, respectively |
44,546 | 48,493 | ||||||
Inventories, net of reserves of $2,124 and $2,080 at December 31, 2008 and
December 31, 2007, respectively |
47,186 | 46,392 | ||||||
Other receivables |
13,072 | 10,372 | ||||||
Prepaid expenses and other current assets |
3,802 | 2,608 | ||||||
Total current assets |
126,664 | 124,158 | ||||||
PROPERTY AND EQUIPMENT, net |
12,106 | 11,918 | ||||||
IDENTIFIABLE INTANGIBLES |
961 | 5,824 | ||||||
GOODWILL |
3,602 | 15,362 | ||||||
OTHER ASSETS |
1,188 | 911 | ||||||
Total assets |
144,521 | 158,173 | ||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
CURRENT LIABILITIES: |
||||||||
Current portion of long-term debt and capital lease obligations |
$ | 22,251 | $ | 22,238 | ||||
Trade accounts payable |
61,988 | 56,975 | ||||||
Accrued expenses |
21,054 | 22,438 | ||||||
Total current liabilities |
105,293 | 101,651 | ||||||
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion |
4,951 | 6,378 | ||||||
OTHER LIABILITIES |
1,192 | 1,302 | ||||||
Total liabilities |
111,436 | 109,331 | ||||||
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; 75,000,000 shares authorized;
9,935,095 and 9,909,401 shares issued at December 31, 2008 and
December 31, 2007, respectively; and 9,916,734 and 9,891,040
outstanding as of December 31, 2008 and December 31, 2007, respectively |
10 | 10 | ||||||
Additional paid-in capital |
92,728 | 92,121 | ||||||
Accumulated deficit |
(61,393 | ) | (45,738 | ) | ||||
Accumulated other comprehensive income |
1,825 | 2,534 | ||||||
Treasury stock at cost, 86,300 shares |
(85 | ) | (85 | ) | ||||
Total shareholders equity |
33,085 | 48,842 | ||||||
Total liabilities and shareholders equity |
$ | 144,521 | $ | 158,173 | ||||
Supplies | ||||||||||||||||||||
PFSweb | Distributors | eCOST | Eliminations | Consolidated | ||||||||||||||||
REVENUES: |
||||||||||||||||||||
Product revenue, net |
$ | | $ | 52,915 | $ | 25,121 | $ | | $ | 78,036 | ||||||||||
Service fee revenue |
21,691 | | | | 21,691 | |||||||||||||||
Service fee revenue affiliate |
2,497 | | | (2,497 | ) | | ||||||||||||||
Pass-thru revenue |
13,085 | | | (31 | ) | 13,054 | ||||||||||||||
Total revenues |
37,273 | 52,915 | 25,121 | (2,528 | ) | 112,781 | ||||||||||||||
COSTS OF REVENUES: |
||||||||||||||||||||
Cost of product revenue |
| 48,974 | 22,641 | | 71,615 | |||||||||||||||
Cost of service fee revenue |
15,457 | | | (734 | ) | 14,723 | ||||||||||||||
Cost of pass-thru revenue |
13,085 | | | (31 | ) | 13,054 | ||||||||||||||
Total costs of revenues |
28,542 | 48,974 | 22,641 | (765 | ) | 99,392 | ||||||||||||||
Gross profit |
8,731 | 3,941 | 2,480 | (1,763 | ) | 13,389 | ||||||||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
8,511 | 3,211 | 2,716 | (1,763 | ) | 12,675 | ||||||||||||||
MERGER INTEGRATION EXPENSE |
| | | | | |||||||||||||||
AMORTIZATION OF IDENTIFIABLE INTANGIBLES |
202 | 202 | ||||||||||||||||||
GOODWILL AND INTANGIBLE ASSET IMPAIRMENT |
| | 16,250 | | 16,250 | |||||||||||||||
Total operating expenses |
8,511 | 3,211 | 19,168 | (1,763 | ) | 29,127 | ||||||||||||||
Income (loss) from operations |
220 | 730 | (16,688 | ) | | (15,738 | ) | |||||||||||||
INTEREST EXPENSE (INCOME), NET |
(7 | ) | 434 | 10 | | 437 | ||||||||||||||
Income (loss) before income taxes |
227 | 296 | (16,698 | ) | | (16,175 | ) | |||||||||||||
INCOME TAX PROVISION (BENEFIT) |
(399 | ) | 398 | | | (1 | ) | |||||||||||||
NET INCOME (LOSS) |
$ | 626 | $ | (102 | ) | $ | (16,698 | ) | $ | | $ | (16,174 | ) | |||||||
NON-GAAP NET INCOME (LOSS) |
$ | 735 | $ | (102 | ) | $ | (246 | ) | $ | | $ | 387 | ||||||||
EBITDA |
$ | 1,753 | $ | 738 | $ | (16,426 | ) | $ | | $ | (13,935 | ) | ||||||||
ADJUSTED EBITDA |
$ | 1,862 | $ | 738 | $ | (176 | ) | $ | | $ | 2,424 | |||||||||
A reconciliation of NET INCOME (LOSS) to EBITDA and ADJUSTED EBITDA follows: |
||||||||||||||||||||
NET INCOME (LOSS) |
$ | 626 | $ | (102 | ) | $ | (16,698 | ) | $ | | $ | (16,174 | ) | |||||||
Income tax expense (benefit) |
(399 | ) | 398 | | | (1 | ) | |||||||||||||
Interest expense (income) |
(7 | ) | 434 | 10 | | 437 | ||||||||||||||
Depreciation and amortization |
1,533 | 8 | 262 | | 1,803 | |||||||||||||||
EBITDA |
$ | 1,753 | $ | 738 | $ | (16,426 | ) | $ | | $ | (13,935 | ) | ||||||||
Stock-based compensation |
109 | | | | 109 | |||||||||||||||
Goodwill and intangible asset impairment |
| | 16,250 | | 16,250 | |||||||||||||||
ADJUSTED EBITDA |
$ | 1,862 | $ | 738 | $ | (176 | ) | $ | | $ | 2,424 | |||||||||
A reconciliation of NET INCOME (LOSS) to NON-GAAP NET INCOME (LOSS) follows: |
||||||||||||||||||||
NET INCOME (LOSS) |
$ | 626 | $ | (102 | ) | $ | (16,698 | ) | $ | | $ | (16,174 | ) | |||||||
Stock-based compensation |
109 | | | | 109 | |||||||||||||||
Amortization of intangible assets |
| | 202 | | 202 | |||||||||||||||
Goodwill and intangible asset impairment |
| | 16,250 | | 16,250 | |||||||||||||||
NON-GAAP NET INCOME (LOSS) |
$ | 735 | $ | (102 | ) | $ | (246 | ) | $ | | $ | 387 | ||||||||
Supplies | ||||||||||||||||||||
PFSweb | Distributors | eCOST | Eliminations | Consolidated | ||||||||||||||||
REVENUES: |
||||||||||||||||||||
Product revenue, net |
$ | | $ | 230,710 | $ | 99,822 | $ | | $ | 330,532 | ||||||||||
Service fee revenue |
85,406 | | | | 85,406 | |||||||||||||||
Service fee revenue affiliate |
8,603 | | | (8,603 | ) | | ||||||||||||||
Pass-thru revenue |
35,901 | | | 4 | 35,905 | |||||||||||||||
Total revenues |
129,910 | 230,710 | 99,822 | (8,599 | ) | 451,843 | ||||||||||||||
COSTS OF REVENUES: |
||||||||||||||||||||
Cost of product revenue |
| 214,077 | 91,013 | | 305,090 | |||||||||||||||
Cost of service fee revenue |
60,793 | | | (2,784 | ) | 58,009 | ||||||||||||||
Cost of pass-thru revenue |
35,901 | | | 4 | 35,905 | |||||||||||||||
Total costs of revenues |
96,694 | 214,077 | 91,013 | (2,780 | ) | 399,004 | ||||||||||||||
Gross profit |
33,216 | 16,633 | 8,809 | (5,819 | ) | 52,839 | ||||||||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
33,285 | 10,767 | 10,840 | (5,819 | ) | 49,073 | ||||||||||||||
MERGER INTEGRATION EXPENSE |
| | | | | |||||||||||||||
AMORTIZATION OF IDENTIFIABLE INTANGIBLES |
| | 806 | | 806 | |||||||||||||||
GOODWILL IMPAIRMENT |
| | 16,250 | | 16,250 | |||||||||||||||
Total operating expenses |
33,285 | 10,767 | 27,896 | (5,819 | ) | 66,129 | ||||||||||||||
Income (loss) from operations |
(69 | ) | 5,866 | (19,087 | ) | | (13,290 | ) | ||||||||||||
INTEREST EXPENSE (INCOME), NET |
(117 | ) | 1,650 | 27 | | 1,560 | ||||||||||||||
Income (loss) before income taxes |
48 | 4,216 | (19,114 | ) | | (14,850 | ) | |||||||||||||
INCOME TAX PROVISION (BENEFIT) |
(1,057 | ) | 1,862 | | | 805 | ||||||||||||||
NET INCOME (LOSS) |
$ | 1,105 | $ | 2,354 | $ | (19,114 | ) | $ | | $ | (15,655 | ) | ||||||||
NON-GAAP NET INCOME (LOSS) |
$ | 1,652 | $ | 2,354 | $ | (2,058 | ) | $ | | $ | 1,948 | |||||||||
EBITDA |
$ | 5,538 | $ | 5,886 | $ | (18,092 | ) | $ | | $ | (6,668 | ) | ||||||||
ADJUSTED EBITDA |
$ | 6,085 | $ | 5,886 | $ | (1,842 | ) | $ | | $ | 10,129 | |||||||||
A reconciliation of NET INCOME (LOSS)
to EBITDA and ADJUSTED EBITDA follows: |
||||||||||||||||||||
NET INCOME (LOSS) |
$ | 1,105 | $ | 2,354 | $ | (19,114 | ) | $ | | $ | (15,655 | ) | ||||||||
Income tax expense (benefit) |
(1,057 | ) | 1,862 | | | 805 | ||||||||||||||
Interest expense (income) |
(117 | ) | 1,650 | 27 | | 1,560 | ||||||||||||||
Depreciation and amortization |
5,607 | 20 | 995 | | 6,622 | |||||||||||||||
EBITDA |
$ | 5,538 | $ | 5,886 | $ | (18,092 | ) | $ | | $ | (6,668 | ) | ||||||||
Stock-based compensation |
547 | | | | 547 | |||||||||||||||
Goodwill and Intangible Asset Impairment |
| | 16,250 | | 16,250 | |||||||||||||||
ADJUSTED EBITDA |
$ | 6,085 | $ | 5,886 | $ | (1,842 | ) | $ | | $ | 10,129 | |||||||||
A reconciliation of NET INCOME (LOSS)
to NON-GAAP NET INCOME (LOSS) follows: |
||||||||||||||||||||
NET INCOME (LOSS) |
$ | 1,105 | $ | 2,354 | $ | (19,114 | ) | $ | | $ | (15,655 | ) | ||||||||
Stock-based compensation |
547 | | | | 547 | |||||||||||||||
Amortization of intangible assets |
| | 806 | | 806 | |||||||||||||||
Goodwill and intangible asset impairment |
| | 16,250 | | 16,250 | |||||||||||||||
NON-GAAP NET INCOME (LOSS) |
$ | 1,652 | $ | 2,354 | $ | (2,058 | ) | $ | | $ | 1,948 | |||||||||
Supplies | ||||||||||||||||||||
PFSweb | Distributors | eCOST | Eliminations | Consolidated | ||||||||||||||||
ASSETS |
||||||||||||||||||||
CURRENT ASSETS: |
||||||||||||||||||||
Cash and cash equivalents |
$ | 11,570 | $ | 3,870 | $ | 610 | $ | | $ | 16,050 | ||||||||||
Restricted cash |
1,550 | 242 | 216 | | 2,008 | |||||||||||||||
Accounts receivable, net |
21,676 | 22,103 | 2,065 | (1,298 | ) | 44,546 | ||||||||||||||
Inventories, net |
| 41,382 | 5,804 | | 47,186 | |||||||||||||||
Other receivables |
| 13,072 | | | 13,072 | |||||||||||||||
Prepaid expenses and other current assets |
2,222 | 1,526 | 54 | | 3,802 | |||||||||||||||
Total current assets |
37,018 | 82,195 | 8,749 | (1,298 | ) | 126,664 | ||||||||||||||
PROPERTY AND EQUIPMENT, net |
11,544 | 85 | 477 | | 12,106 | |||||||||||||||
NOTES RECEIVABLE FROM AFFILIATES |
20,845 | | | (20,845 | ) | | ||||||||||||||
INVESTMENT IN AFFILIATES |
37,541 | | | (37,541 | ) | | ||||||||||||||
IDENTIFIABLE INTANGIBLES |
434 | | 527 | | 961 | |||||||||||||||
GOODWILL |
| | 3,602 | | 3,602 | |||||||||||||||
OTHER ASSETS |
1,054 | | 134 | | 1,188 | |||||||||||||||
Total assets |
108,436 | 82,280 | 13,489 | (59,684 | ) | 144,521 | ||||||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||||||||||
CURRENT LIABILITIES: |
||||||||||||||||||||
Current portion of long-term debt and capital lease obligations |
$ | 9,045 | $ | 13,206 | $ | | $ | | $ | 22,251 | ||||||||||
Trade accounts payable |
9,063 | 48,640 | 5,583 | (1,298 | ) | 61,988 | ||||||||||||||
Accrued expenses |
12,665 | 5,434 | 2,955 | | 21,054 | |||||||||||||||
Total current liabilities |
30,773 | 67,280 | 8,538 | (1,298 | ) | 105,293 | ||||||||||||||
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion |
4,951 | | | | 4,951 | |||||||||||||||
NOTES PAYABLE TO AFFILIATES |
| 5,505 | 15,340 | (20,845 | ) | | ||||||||||||||
OTHER LIABILITIES |
1,029 | | 163 | | 1,192 | |||||||||||||||
Total liabilities |
36,753 | 72,785 | 24,041 | (22,143 | ) | 111,436 | ||||||||||||||
COMMITMENTS AND CONTINGENCIES |
||||||||||||||||||||
SHAREHOLDERS EQUITY: |
||||||||||||||||||||
Common stock |
10 | | 19 | (19 | ) | 10 | ||||||||||||||
Capital contributions |
1,000 | (1,000 | ) | | ||||||||||||||||
Additional paid-in capital |
92,728 | | 28,059 | (28,059 | ) | 92,728 | ||||||||||||||
Retained earnings (accumulated deficit) |
(22,825 | ) | 6,002 | (38,618 | ) | (5,952 | ) | (61,393 | ) | |||||||||||
Accumulated other comprehensive income |
1,855 | 2,493 | (12 | ) | (2,511 | ) | 1,825 | |||||||||||||
Treasury stock |
(85 | ) | | | | (85 | ) | |||||||||||||
Total shareholders equity |
71,683 | 9,495 | (10,552 | ) | (37,541 | ) | 33,085 | |||||||||||||
Total liabilities and shareholders equity |
$ | 108,436 | $ | 82,280 | $ | 13,489 | $ | (59,684 | ) | $ | 144,521 | |||||||||
Supplies | ||||||||||||||||||||
PFSweb | Distributors | eCOST | Eliminations | Consolidated | ||||||||||||||||
REVENUES: |
||||||||||||||||||||
Product revenue, net |
$ | | $ | 60,639 | $ | 28,463 | $ | | $ | 89,102 | ||||||||||
Service fee revenue |
21,474 | | | | 21,474 | |||||||||||||||
Service fee revenue affiliate |
2,083 | | | (2,083 | ) | | ||||||||||||||
Pass-thru revenue |
11,592 | | | (168 | ) | 11,424 | ||||||||||||||
Total revenues |
35,149 | 60,639 | 28,463 | (2,251 | ) | 122,000 | ||||||||||||||
COSTS OF REVENUES: |
||||||||||||||||||||
Cost of product revenue |
| 56,496 | 25,896 | | 82,392 | |||||||||||||||
Cost of service fee revenue |
15,855 | | | (691 | ) | 15,164 | ||||||||||||||
Cost of pass-thru revenue |
11,592 | | | (168 | ) | 11,424 | ||||||||||||||
Total costs of revenues |
27,447 | 56,496 | 25,896 | (859 | ) | 108,980 | ||||||||||||||
Gross profit |
7,702 | 4,143 | 2,567 | (1,392 | ) | 13,020 | ||||||||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
7,464 | 2,564 | 2,917 | (1,392 | ) | 11,553 | ||||||||||||||
AMORTIZATION OF IDENTIFIABLE INTANGIBLES |
| | 204 | | 204 | |||||||||||||||
Total operating expenses |
7,464 | 2,564 | 3,121 | (1,392 | ) | 11,757 | ||||||||||||||
Income (loss) from operations |
238 | 1,579 | (554 | ) | | 1,263 | ||||||||||||||
INTEREST EXPENSE (INCOME), NET |
24 | 467 | (5 | ) | | 486 | ||||||||||||||
Income (loss) before income taxes |
214 | 1,112 | (549 | ) | | 777 | ||||||||||||||
INCOME TAX PROVISION (BENEFIT) |
110 | 6 | | | 116 | |||||||||||||||
NET INCOME (LOSS) |
$ | 104 | $ | 1,106 | $ | (549 | ) | $ | | $ | 661 | |||||||||
NON-GAAP NET INCOME (LOSS) |
$ | 298 | $ | 1,106 | $ | (345 | ) | $ | | $ | 1,059 | |||||||||
EBITDA |
$ | 2,030 | $ | 1,583 | $ | (293 | ) | $ | | $ | 3,320 | |||||||||
ADJUSTED EBITDA |
$ | 2,224 | $ | 1,583 | $ | (293 | ) | $ | | $ | 3,514 | |||||||||
A reconciliation of NET INCOME
(LOSS) to EBITDA and ADJUSTED EBITDA follows: |
||||||||||||||||||||
NET INCOME (LOSS) |
$ | 104 | $ | 1,106 | $ | (549 | ) | $ | | $ | 661 | |||||||||
Income tax expense (benefit) |
110 | 6 | | | 116 | |||||||||||||||
Interest expense (income) |
24 | 467 | (5 | ) | | 486 | ||||||||||||||
Depreciation and amortization |
1,792 | 4 | 261 | | 2,057 | |||||||||||||||
EBITDA |
$ | 2,030 | $ | 1,583 | $ | (293 | ) | $ | | $ | 3,320 | |||||||||
Stock-based compensation |
194 | | | | 194 | |||||||||||||||
ADJUSTED EBITDA |
$ | 2,224 | $ | 1,583 | $ | (293 | ) | $ | | $ | 3,514 | |||||||||
A reconciliation of NET INCOME
(LOSS) to NON-GAAP NET INCOME (LOSS) follows: |
||||||||||||||||||||
NET INCOME (LOSS) |
$ | 104 | $ | 1,106 | $ | (549 | ) | $ | | $ | 661 | |||||||||
Stock-based compensation |
194 | | | | 194 | |||||||||||||||
Amortization of intangible assets |
| | 204 | | 204 | |||||||||||||||
NON-GAAP NET INCOME (LOSS) |
$ | 298 | $ | 1,106 | $ | (345 | ) | $ | | $ | 1,059 | |||||||||
Supplies | ||||||||||||||||||||
PFSweb | Distributors | eCOST | Eliminations | Consolidated | ||||||||||||||||
REVENUES: |
||||||||||||||||||||
Product revenue, net |
$ | | $ | 235,357 | $ | 104,143 | $ | | $ | 339,500 | ||||||||||
Service fee revenue |
74,480 | | | | 74,480 | |||||||||||||||
Service fee revenue affiliate |
8,150 | | | (8,150 | ) | | ||||||||||||||
Pass-thru revenue |
33,248 | | | (426 | ) | 32,822 | ||||||||||||||
Total revenues |
115,878 | 235,357 | 104,143 | (8,576 | ) | 446,802 | ||||||||||||||
COSTS OF REVENUES: |
||||||||||||||||||||
Cost of product revenue |
| 218,642 | 95,199 | (6 | ) | 313,835 | ||||||||||||||
Cost of service fee revenue |
56,039 | | | (2,664 | ) | 53,375 | ||||||||||||||
Cost of pass-thru revenue |
33,248 | | | (426 | ) | 32,822 | ||||||||||||||
Total costs of revenues |
89,287 | 218,642 | 95,199 | (3,096 | ) | 400,032 | ||||||||||||||
Gross profit |
26,591 | 16,715 | 8,944 | (5,480 | ) | 46,770 | ||||||||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
28,012 | 10,138 | 11,387 | (5,480 | ) | 44,057 | ||||||||||||||
MERGER INTEGRATION EXPENSE |
| | 150 | | 150 | |||||||||||||||
AMORTIZATION OF IDENTIFIABLE INTANGIBLES |
| | 806 | | 806 | |||||||||||||||
Total operating expenses |
28,012 | 10,138 | 12,343 | (5,480 | ) | 45,013 | ||||||||||||||
Income (loss) from operations |
(1,421 | ) | 6,577 | (3,399 | ) | | 1,757 | |||||||||||||
INTEREST EXPENSE (INCOME), NET |
119 | 2,274 | (51 | ) | | 2,342 | ||||||||||||||
Income (loss) before income taxes |
(1,540 | ) | 4,303 | (3,348 | ) | | (585 | ) | ||||||||||||
INCOME TAX PROVISION (BENEFIT) |
(361 | ) | 1,160 | | | 799 | ||||||||||||||
NET INCOME (LOSS) |
$ | (1,179 | ) | $ | 3,143 | $ | (3,348 | ) | $ | | $ | (1,384 | ) | |||||||
NON-GAAP NET INCOME (LOSS) |
$ | (415 | ) | $ | 3,143 | $ | (2,542 | ) | $ | | $ | 186 | ||||||||
EBITDA |
$ | 5,728 | $ | 6,596 | $ | (2,387 | ) | $ | | $ | 9,937 | |||||||||
ADJUSTED EBITDA |
$ | 6,492 | $ | 6,596 | $ | (2,237 | ) | $ | | $ | 10,851 | |||||||||
A reconciliation of NET INCOME (LOSS) to EBITDA and ADJUSTED EBITDA follows: |
||||||||||||||||||||
NET INCOME (LOSS) |
$ | (1,179 | ) | $ | 3,143 | $ | (3,348 | ) | $ | | $ | (1,384 | ) | |||||||
Income tax expense (benefit) |
(361 | ) | 1,160 | | | 799 | ||||||||||||||
Interest expense (income) |
119 | 2,274 | (51 | ) | | 2,342 | ||||||||||||||
Depreciation and amortization |
7,149 | 19 | 1,012 | | 8,180 | |||||||||||||||
EBITDA |
$ | 5,728 | $ | 6,596 | $ | (2,387 | ) | $ | | $ | 9,937 | |||||||||
Stock-based compensation |
764 | | | | 764 | |||||||||||||||
Merger integration expense |
| | 150 | | 150 | |||||||||||||||
ADJUSTED EBITDA |
$ | 6,492 | $ | 6,596 | $ | (2,237 | ) | $ | | $ | 10,851 | |||||||||
A reconciliation of NET INCOME (LOSS) to NON-GAAP NET INCOME (LOSS) follows: |
||||||||||||||||||||
NET INCOME (LOSS) |
$ | (1,179 | ) | $ | 3,143 | $ | (3,348 | ) | $ | | $ | (1,384 | ) | |||||||
Stock-based compensation |
764 | | | | 764 | |||||||||||||||
Amortization of intangible assets |
| | 806 | | 806 | |||||||||||||||
NON-GAAP NET INCOME (LOSS) |
$ | (415 | ) | $ | 3,143 | $ | (2,542 | ) | $ | | $ | 186 | ||||||||
Supplies | ||||||||||||||||||||
PFSweb | Distributors | eCOST | Eliminations | Consolidated | ||||||||||||||||
ASSETS |
||||||||||||||||||||
CURRENT ASSETS: |
||||||||||||||||||||
Cash and cash equivalents |
$ | 10,835 | $ | 1,757 | $ | 1,680 | $ | | $ | 14,272 | ||||||||||
Restricted cash |
50 | 1,464 | 507 | | 2,021 | |||||||||||||||
Accounts receivable, net |
21,366 | 25,126 | 2,585 | (584 | ) | 48,493 | ||||||||||||||
Inventories, net |
| 39,596 | 6,796 | | 46,392 | |||||||||||||||
Other receivables |
211 | 10,161 | | | 10,372 | |||||||||||||||
Prepaid expenses and other current assets |
923 | 1,321 | 364 | | 2,608 | |||||||||||||||
Total current assets |
33,385 | 79,425 | 11,932 | (584 | ) | 124,158 | ||||||||||||||
PROPERTY AND EQUIPMENT, net |
11,549 | 21 | 348 | | 11,918 | |||||||||||||||
NOTES RECEIVABLE FROM AFFILIATES |
18,645 | | | (18,645 | ) | | ||||||||||||||
INVESTMENT IN AFFILIATES |
38,609 | | | (38,609 | ) | | ||||||||||||||
IDENTIFIABLE INTANGIBLES |
| | 5,824 | | 5,824 | |||||||||||||||
GOODWILL |
| | 15,362 | | 15,362 | |||||||||||||||
OTHER ASSETS |
762 | | 149 | | 911 | |||||||||||||||
Total assets |
102,950 | 79,446 | 33,615 | (57,838 | ) | 158,173 | ||||||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||||||||||
CURRENT LIABILITIES: |
||||||||||||||||||||
Current portion of long-term debt and capital lease obligations |
$ | 10,063 | $ | 12,175 | $ | | $ | | $ | 22,238 | ||||||||||
Trade accounts payable |
5,615 | 43,265 | 8,679 | (584 | ) | 56,975 | ||||||||||||||
Accrued expenses |
11,604 | 7,416 | 3,418 | | 22,438 | |||||||||||||||
Total current liabilities |
27,282 | 62,856 | 12,097 | (584 | ) | 101,651 | ||||||||||||||
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion |
6,378 | | | | 6,378 | |||||||||||||||
NOTES PAYABLE TO AFFILIATES |
| 6,005 | 12,640 | (18,645 | ) | | ||||||||||||||
OTHER LIABILITIES |
998 | | 304 | | 1,302 | |||||||||||||||
Total liabilities |
34,658 | 68,861 | 25,041 | (19,229 | ) | 109,331 | ||||||||||||||
COMMITMENTS AND CONTINGENCIES |
||||||||||||||||||||
SHAREHOLDERS EQUITY: |
||||||||||||||||||||
Common stock |
47 | | 19 | (19 | ) | 47 | ||||||||||||||
Capital contributions |
| 1,000 | | (1,000 | ) | | ||||||||||||||
Additional paid-in capital |
92,084 | | 28,059 | (28,059 | ) | 92,084 | ||||||||||||||
Retained earnings (accumulated deficit) |
(26,288 | ) | 6,601 | (19,504 | ) | (6,547 | ) | (45,738 | ) | |||||||||||
Accumulated other comprehensive income |
2,534 | 2,984 | | (2,984 | ) | 2,534 | ||||||||||||||
Treasury stock |
(85 | ) | | | | (85 | ) | |||||||||||||
Total shareholders equity |
68,292 | 10,585 | 8,574 | (38,609 | ) | 48,842 | ||||||||||||||
Total liabilities and shareholders equity |
$ | 102,950 | $ | 79,446 | $ | 33,615 | $ | (57,838 | ) | $ | 158,173 | |||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2008 | 2007 | |||||||
Total Customers (1) |
1,888,250 | 1,752,697 | ||||||
Active Customers (2) |
192,846 | 165,319 | ||||||
New Customers (3) |
48,426 | 32,438 | ||||||
Number of Orders (4) |
108,999 | 83,723 | ||||||
Average Order Value (5) |
$ | 223 | $ | 339 | ||||
Advertising Expense (6) |
$ | 309,836 | $ | 277,855 | ||||
Cost to Acquire a New Customer (7) |
$ | 4.74 | $ | 5.33 |
(1) | Total customers have been calculated as the cumulative number of customers for which orders have been taken from eCOST.coms inception to the end of the reported period. | |
(2) | Active customers consist of the approximate number of customers who placed orders during the 12 months prior to the end of the reported period. | |
(3) | New Customers represent the number of persons that established a new account and placed an order during the reported period. | |
(4) | Number of orders represents the total number of orders shipped during the reported period (not reflecting returns). | |
(5) | Average order value has been calculated as gross sales divided by the total number of orders during the period presented. The impact of returns is not reflected in average order value. | |
(6) | Advertising expense includes the total dollars spent on advertising during the reported period,
including internet, direct mail, print and e-mail advertising, as well as customer list enhancement services. |
|
(7) | Catalog expense of $80,064 and $104,977 was not included in the 2008 and 2007 calculation, respectively as it is used for retention and not acquisition. |