Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact: | ||
Mark C. Layton | Todd Fromer / Garth Russell | |
Chief Executive Officer | Investor Relations | |
or Thomas J. Madden | KCSA Strategic Communications | |
Chief Financial Officer | (212) 896-1215 / (212) 896-1250 | |
(972) 881-2900 | tfromer@kcsa.com / grussell@kcsa.com |
PFSweb Reports Fourth Quarter and Year-End 2010 Results
- - -
Fourth Quarter Service Fee Revenue Increases 35% Year-over-year
Fourth Quarter Service Fee Revenue Increases 35% Year-over-year
- - -
Fourth Quarter Adjusted EBITDA Increases 328% to $2.6 Million
Fourth Quarter Adjusted EBITDA Increases 328% to $2.6 Million
PLANO, Texas, March 23, 2011 — 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 10:30 am Eastern Time (9:30 am Central Time) on Wednesday, March 23, 2011, to discuss the latest corporate developments and results. To listen to the call, please dial (888) 562-3356and 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.
(Tables Follow)
PFSweb, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations (A)
(In Thousands, Except Per Share Data)
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)
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)
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, respectively | 12 | 10 | ||||||
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)
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)
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)
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)
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)
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)
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)
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)
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)
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 | |||||||||
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