Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Trading Symbol | PFSW | |
Entity Registrant Name | PFSWEB INC | |
Entity Central Index Key | 0001095315 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 19,413,987 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 14,679 | $ 15,419 |
Restricted cash | 207 | 207 |
Accounts receivable, net of allowance for doubtful accounts of $597 and $585 at March 31, 2019 and December 31, 2018, respectively | 52,545 | 72,415 |
Inventories, net of reserves of $289 and $298 at March 31, 2019 and December 31, 2018, respectively | 4,124 | 6,090 |
Other receivables | 3,906 | 4,014 |
Other receivables | 7,202 | 6,943 |
Total current assets | 82,663 | 105,088 |
PROPERTY AND EQUIPMENT: | ||
Cost | 98,363 | 97,744 |
Less: accumulated depreciation | (78,391) | (76,248) |
PROPERTY AND EQUIPMENT | 19,972 | 21,496 |
OPERATING LEASE RIGHT-OF-USE ASSETS | 38,788 | |
IDENTIFIABLE INTANGIBLES, net | 1,636 | 1,803 |
GOODWILL | 45,348 | 45,185 |
OTHER ASSETS | 3,560 | 3,501 |
Total assets | 191,967 | 177,073 |
CURRENT LIABILITIES: | ||
Trade accounts payable | 35,147 | 47,580 |
Accrued expenses | 19,509 | 24,623 |
Current portion of operating lease liabilities | 7,835 | |
Current portion of long-term debt and finance lease obligations | 2,846 | 2,610 |
Deferred revenues | 6,883 | 7,328 |
Total current liabilities | 72,220 | 82,141 |
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS, less current portion | 32,698 | 39,348 |
DEFERRED REVENUES, less current portion | 1,590 | 1,927 |
DEFERRED RENT | 4,625 | |
OPERATING LEASE LIABILITIES | 36,688 | |
OTHER LIABILITIES | 2,668 | 2,449 |
Total liabilities | 145,864 | 130,490 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY: | ||
Preferred stock, $1.00 par value; 1,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.001 par value; 35,000,000 shares authorized; 19,295,796 and 19,294,296 shares issued at March 31, 2019 and December 31, 2018, respectively; and 19,262,329 and 19,260,829 outstanding at March 31, 2019 and December 31, 2018, respectively | 19 | 19 |
Additional paid-in capital | 156,108 | 155,455 |
Accumulated deficit | (108,937) | (107,773) |
Accumulated other comprehensive loss | (962) | (993) |
Treasury stock at cost, 33,467 shares | (125) | (125) |
Total shareholders’ equity | 46,103 | 46,583 |
Total liabilities and shareholders’ equity | $ 191,967 | $ 177,073 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 597 | $ 585 |
Inventories reserves | $ 289 | $ 298 |
Preferred stock, par value (in USD per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 35,000,000 | 35,000,000 |
Common stock, shares issued (in shares) | 19,295,796 | 19,294,296 |
Common stock, shares outstanding (in shares) | 19,262,329 | 19,260,829 |
Treasury stock, shares (in shares) | 33,467 | 33,467 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
REVENUES: | ||
Total revenues | $ 72,149 | $ 78,421 |
COSTS OF REVENUES: | ||
Total costs of revenues | 54,246 | 57,093 |
Gross profit | 17,903 | 21,328 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 18,346 | 20,659 |
Income (loss) from operations | (443) | 669 |
INTEREST EXPENSE, net | 512 | 605 |
Income (loss) before income taxes | (955) | 64 |
INCOME TAX EXPENSE, net | 209 | 813 |
NET LOSS | $ (1,164) | $ (749) |
NET LOSS PER SHARE: | ||
Basic (in USD per share) | $ (0.06) | $ (0.04) |
Diluted (in USD per share) | $ (0.06) | $ (0.04) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: | ||
Basic (in shares) | 19,486 | 19,145 |
Diluted (in shares) | 19,486 | 19,145 |
COMPREHENSIVE LOSS: | ||
Net loss | $ (1,164) | $ (749) |
Foreign currency translation adjustment | 31 | 457 |
TOTAL COMPREHENSIVE LOSS | (1,133) | (292) |
Service fee revenue | ||
REVENUES: | ||
Total revenues | 51,439 | 56,487 |
COSTS OF REVENUES: | ||
Total costs of revenues | 33,958 | 35,608 |
Product revenue, net | ||
REVENUES: | ||
Total revenues | 7,499 | 9,765 |
COSTS OF REVENUES: | ||
Total costs of revenues | 7,077 | 9,316 |
Pass-through revenue | ||
REVENUES: | ||
Total revenues | 13,211 | 12,169 |
COSTS OF REVENUES: | ||
Total costs of revenues | $ 13,211 | $ 12,169 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,164) | $ (749) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 2,715 | 2,978 |
Amortization of debt issuance costs | 20 | 37 |
Provision for doubtful accounts | (15) | 0 |
Provision for excess and obsolete inventory | (8) | 59 |
Loss on disposal of fixed assets | 4 | 27 |
Deferred income taxes | 189 | (33) |
Stock-based compensation expense | 651 | 646 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 19,841 | 22,480 |
Inventories | 1,973 | (1,390) |
Prepaid expenses, other receivables and other assets | 1,687 | 292 |
Trade accounts payable, deferred revenues, accrued expenses and other liabilities | (19,526) | (18,335) |
Net cash provided by operating activities | 6,367 | 6,012 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (911) | (927) |
Proceeds from sale of property and equipment | 0 | 54 |
Net cash used in investing activities | (911) | (873) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net proceeds from issuance of common stock | 2 | 59 |
Taxes paid on behalf of employees for withheld shares | 0 | (287) |
Payments on finance lease obligations | (495) | |
Payments on finance lease obligations | (531) | |
Payments on term loan | 0 | (750) |
Payments on revolving loan | (42,428) | (32,133) |
Borrowings on revolving loan | 35,653 | 28,099 |
Payments on other debt | (256) | (2,205) |
Borrowings on other debt | 1,616 | 0 |
Net cash used in financing activities | (5,908) | (7,748) |
EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (288) | 177 |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (740) | (2,432) |
Cash and cash equivalents, beginning of period | 15,419 | 19,078 |
Restricted cash, beginning of period | 207 | 214 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 15,626 | 19,292 |
Cash and cash equivalents, end of period | 14,679 | 16,646 |
Restricted cash, end of period | 207 | 214 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 14,886 | 16,860 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for income taxes | 101 | 157 |
Cash paid for interest | 588 | 491 |
Non-cash investing and financing activities: | ||
Property and equipment acquired under long-term debt and capital leases | $ 0 | $ 894 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity Statement - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance at Dec. 31, 2017 | $ 41,297 | $ 19 | $ 150,614 | $ (109,281) | $ 70 | $ (125) |
Beginning balance (in shares) at Dec. 31, 2017 | 19,058,685 | 33,467,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (749) | (749) | ||||
Stock-based compensation expense | 646 | 646 | ||||
Exercise of stock options (in shares) | 11,930 | |||||
Exercise of stock options | 59 | 59 | ||||
Tax withholding on restricted stock | (287) | (287) | ||||
Foreign currency translation adjustment, net of taxes | 457 | 457 | ||||
Ending balance (in shares) at Mar. 31, 2018 | 19,070,615 | 33,467,000 | ||||
Ending balance at Mar. 31, 2018 | 41,699 | $ 19 | 151,032 | (109,754) | 527 | $ (125) |
Beginning balance at Dec. 31, 2018 | 46,583 | $ 19 | 155,455 | (107,773) | (993) | $ (125) |
Beginning balance (in shares) at Dec. 31, 2018 | 19,294,296 | 33,467,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (1,164) | (1,164) | ||||
Stock-based compensation expense | 651 | 651 | ||||
Exercise of stock options (in shares) | 1,500 | |||||
Exercise of stock options | 2 | 2 | ||||
Foreign currency translation adjustment, net of taxes | 31 | 31 | ||||
Ending balance (in shares) at Mar. 31, 2019 | 19,295,796 | 33,467,000 | ||||
Ending balance at Mar. 31, 2019 | $ 46,103 | $ 19 | $ 156,108 | $ (108,937) | $ (962) | $ (125) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of PFSweb, Inc. and its subsidiaries have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and include all normal and recurring adjustments necessary to present fairly the unaudited condensed consolidated balance sheets, statements of operations and comprehensive loss, and statements of cash flows for the periods indicated. Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC. This report should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2018 . We refer to PFSweb, Inc. and its subsidiaries collectively as “PFSweb,” the “Company,” us,” “we” and “our” in these condensed consolidated financial statements. Results of our operations for interim periods may not be indicative of results for the full fiscal year. We reclassify certain prior year amounts, as applicable, to conform to the current year presentation. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies For a complete set of our significant accounting policies, refer to our Annual Report on Form 10-K for the year ended December 31, 2018 . During the three -month periods ended March 31, 2019 , there were no significant changes to our significant accounting policies, other than those policies impacted by the new leasing guidance as described below in this Note 2 and Note 9. Leases We account for leases in accordance with Accounting Standard Codification (“ASC 842”) No. 842, Leases . Operating lease assets and liabilities are recognized at the commencement date, based on the present value of the future minimum lease payments over the lease term. A certain number of these leases contain rent escalation clauses either fixed or adjusted periodically for inflation or market rates that are factored into our determination of lease payments. We also have variable lease payments that do not depend on a rate or index, primarily for items such as common area maintenance and real estate taxes, which are recorded as variable cost when incurred. The operating lease right-of-use asset excludes incentives and initial direct costs incurred. As most of our operating leases do not provide an implicit rate, we use an incremental borrowing rate based on the information available at the lease commencement date to discount payments to the present value. Most operating leases contain renewal options, some of which also include options to terminate the leases early. The exercise of these options is at our discretion. We include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Per ASC 842, operating leases are included in "Operating lease right-of-use assets," "Current portion of operating lease liabilities" and "Operating lease liabilities" on the condensed consolidated balance sheets. Finance leases are included in "Property and equipment", "Long-term debt and finance lease obligations" and "current portion of long-term debt and finance lease obligations" on the condensed consolidated balance sheets. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets. Operating lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components and have elected to account for the lease and non-lease components separately. In addition, we utilized the portfolio approach to group leases with similar characteristics and did not use hindsight to determine lease term. See Note 9 for additional information. Impact of Recently Issued Accounting Standards Pronouncements Recently Adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases ("ASU 2016-02"), which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. In July 2018, the FASB issued additional authoritative guidance providing companies with an optional transition method to use the effective date of ASU 2016-02 as the date of initial application of transition and not restate comparative periods. We adopted the standard on January 1, 2019 using this optional transition method. As such, prior periods have not been recast under the new standard. We elected the package of practical expedients, which allows us to carry forward historical lease classification, the practical expedient to not separate non-lease components from lease components, and the short-term lease accounting policy election as defined in ASU 2016-02. We implemented internal controls and a lease accounting software to enable the preparation of financial information on adoption. The standard had a material impact on our condensed consolidated balance sheets, but did not have an impact on the condensed consolidated statements of operations and comprehensive income (loss) and had no impact on cash provided by or used in operating, investing or financing activities on our condensed consolidated statements of cash flows. The most significant impact was the recognition of right-of-use assets of $40.7 million and operating lease liabilities of $46.4 million for operating leases. The difference between the right-of-use assets and operating lease liabilities was recorded as an adjustment to deferred rent (lease incentives). The adoption of ASU 2016-02 had substantially no impact on our finance leases. Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, " Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ," which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, and requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. We are currently in the process of evaluating the impact of the adoption of ASU 2016-13 on our condensed consolidated financial statements in order to adopt the new standard in the first quarter of fiscal 2020. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill impairment” (“ASU 2017-04”), which removes Step 2 of the goodwill impairment test. A goodwill impairment will now be determined by the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2019, with early adoption permitted. We do not expect the adoption of ASU 2017-04 to have a material impact on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15 " Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract; Disclosures for Implementation Costs Incurred for Internal-Use Software and Cloud Computing Arrangements " (“ASU 2018-15”), which aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC Subtopic 350-40, in order to determine which costs to capitalize and recognize as an asset. ASU 2018-15 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, and can be applied either prospectively to implementation costs incurred after the date of adoption or retrospectively to all arrangements. We are currently in the process of evaluating the impact of the adoption of ASU 2018-15 on our condensed consolidated financial statements. |
Revenue from Contracts with Cli
Revenue from Contracts with Clients and Customers | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Clients and Customers | . Revenue from Contracts with Clients and Customers The following tables present our revenues, excluding sales and usage-based taxes, disaggregated by revenue source (in thousands): Three Months Ended PFS Operations LiveArea Professional Services Total Revenues: Service fee revenue $ 33,055 $ 18,384 $ 51,439 Product revenue, net 7,499 — 7,499 Pass-through revenue 12,876 335 13,211 Total revenues $ 53,430 $ 18,719 $ 72,149 Three Months Ended PFS LiveArea Total Revenues: Service fee revenue $ 34,922 $ 21,565 $ 56,487 Product revenue, net 9,765 — 9,765 Pass-through 11,800 369 12,169 Total revenues $ 56,487 $ 21,934 $ 78,421 The following tables present our revenues, excluding sales and usage-based taxes, disaggregated by timing of revenue recognition (in thousands): Three Months Ended PFS LiveArea Total Revenues: Over time $ 45,931 $ 18,719 $ 64,650 Point-in-time 7,499 — 7,499 Total revenues $ 53,430 $ 18,719 $ 72,149 Three Months Ended PFS LiveArea Total Revenues: Over time $ 46,722 $ 21,784 $ 68,506 Point-in-time 9,765 150 9,915 Total revenues $ 56,487 $ 21,934 $ 78,421 The following tables present our revenues, excluding sales and usage-based taxes, disaggregated by region (in thousands): Three Months Ended PFS Operations LiveArea Professional Services Total Revenues by region: North America $ 43,602 $ 16,718 $ 60,320 Europe 9,828 2,001 11,829 Total revenues $ 53,430 $ 18,719 $ 72,149 Three Months Ended PFS Operations LiveArea Professional Services Total Revenues by region: North America $ 44,617 $ 19,166 $ 63,783 Europe 11,870 2,768 14,638 Total revenues $ 56,487 $ 21,934 $ 78,421 Contract Assets and Contract Liabilities Changes in costs to fulfill contract assets during the period was an increase of $0.3 million from December 31, 2018 to March 31, 2019, primarily due to an increase of approximately $1.9 million from new projects, offset by approximately $1.6 million of amortization and recognition of costs in the quarter ended March 31, 2019. Costs to Fulfill assets related to deferred costs, which are included within other current assets, other assets, and to software development costs, which are included within property and equipment in our condensed consolidated balance sheets. Changes in contract liabilities during the period was a decrease of $0.2 million in our contract liabilities from December 31, 2018 to March 31, 2019 , primarily due to an increase of approximately $2.4 million from new projects, offset by approximately $2.6 million of amortization and recognition of revenue in the three months ended March 31, 2019 . Contract losses recognized for the quarter ended March 31, 2019 were not material. Accrued contract liabilities below are included within accrued expenses in our condensed consolidated balance sheets. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables, and customer advances and deposits (contract liabilities) on the condensed consolidated balance sheet. Changes in the contract asset and liability balances during the quarter ended March 31, 2019 were not materially impacted by any other factors. Contract balances consisted of the following (in thousands): March 31, December 31, Contract Assets Trade Accounts Receivable, net $ 52,165 $ 72,180 Unbilled Accounts Receivable 380 235 Costs to Fulfill 5,554 5,214 Total Contract Assets 58,099 77,629 Contract Liabilities Accrued Contract Liabilities 1,104 535 Deferred Revenue 8,472 9,255 Total Contract Liabilities $ 9,576 $ 9,790 Remaining performance obligations represent the transaction price of firm orders for which work has not yet been performed. This amount does not include 1) contracts that are less than one year in duration, 2) contracts for which we recognize revenue based on the right to invoice for services performed, or 3) variable consideration allocated entirely to a wholly unsatisfied performance obligation. Much of our revenue qualifies for one of these exemptions. As of March 31, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations for contracts with an original expected duration of one year or more was $23.1 million . We expect to recognize revenue on approximately 71% of the remaining performance obligations in 2019, 23% in 2020, and the remaining recognized thereafter. |
Inventory Financing
Inventory Financing | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Inventory Financing | . Inventory Financing Supplies Distributors has a short-term credit facility with IBM Credit LLC (“IBM Credit Facility”) to finance its purchase and distribution of Ricoh products in the United States, providing financing for eligible Ricoh inventory and certain receivables up to $11.0 million , as per amended agreement. The agreement has no stated maturity date and provides either party the ability to exit the facility following a 90 -day notice. Given the structure of this facility and as outstanding balances, which represent inventory purchases, are repaid within twelve months, we have classified the outstanding amounts under this facility, which were $5.2 million and $4.7 million as of March 31, 2019 and December 31, 2018, respectively, as trade accounts payable in the condensed consolidated balance sheets. As of March 31, 2019, Supplies Distributors had $0.5 million of available credit under this facility. The credit facility contains cross default provisions, various restrictions upon the ability of Supplies Distributors to, among other things, merge, consolidate, sell assets, incur indebtedness, make loans and payments to related parties (including entities directly or indirectly owned by PFSweb, Inc.), provide guarantees, make investments and loans, pledge assets, make changes to capital stock ownership structure and pay dividends. The credit facility also contains financial covenants, such as annualized revenue to working capital, net profit after tax to revenue, and total liabilities to tangible net worth, as defined, and is secured by certain of the assets of Supplies Distributors, as well as a collateralized guaranty of PFSweb. Additionally, PFSweb is required to maintain a minimum Subordinated Note receivable balance from Supplies Distributors of $1.0 million , as per amended agreement. Borrowings under the credit facility accrue interest, after a defined free financing period, at prime rate plus 0.5% , which resulted in a weighted average interest rate of 6.00% and 5.75% as of March 31, 2019 and December 31, 2018, respectively. The facility also includes a monthly service fee. As of March 31, 2019, the Company was in compliance with all financial covenants. |
Debt and Finance Lease Obligati
Debt and Finance Lease Obligations | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Finance Lease Obligations | . Debt and Finance Lease Obligations Outstanding debt and finance lease obligations consist of the following (in thousands): March 31, December 31, U.S. Credit Agreement Revolver $ 28,725 $ 35,500 Equipment loan 4,125 3,263 Debt issuance costs (362 ) (382 ) Master lease agreements 2,916 3,495 Other 140 82 Total 35,544 41,958 Less current portion of long-term debt 2,846 2,610 Long-term debt, less current portion $ 32,698 $ 39,348 U.S. Credit Agreement On November 1, 2018, we entered into Amendment No.1 to our Credit Agreement with Regions Bank (the “Amended Facility”). The Amended Facility provides for an increase in availability of our revolving loans to $60.0 million , with the ability for a further increase of $20.0 million to $80.0 million and the elimination of the term loan. Amounts outstanding under the term loan were reconstituted as revolving loans. The Amended Facility also extends the maturity date to November 1, 2023. The Amended Facility also provides for additional $10.0 million in equipment financing. As of March 31, 2019 , we had $31.3 million of available credit under the revolving loan facility. As of March 31, 2019 and December 31, 2018 , the weighted average interest rate on the revolving loan facility was 4.43% and 4.57% , respectively. As of March 31, 2019 we had $8.9 million of available credit in equipment financing. As of March 31, 2019 we were in compliance with all debt covenants. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic net loss per common share was computed by dividing net loss by the weighted-average number of common shares outstanding for the reporting period. In periods when we recognize a net loss, we exclude the impact of outstanding common stock equivalents from the diluted loss per share calculation as their inclusion would have an antidilutive effect. As of March 31, 2019 and March 31, 2018 , we had outstanding common stock equivalents of approximately 1.8 million and 1.7 million , respectively, that have been excluded from the calculations of diluted earnings per share attributable to common stockholders because their effect would have been antidilutive. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | . Segment Information Our segments are comprised of strategic businesses that are defined by the service offerings they provide and consist of PFS Operations (which provides client services in relation to the customer physical experience, such as order management (OMS), order fulfillment, customer care and financial services) and LiveArea Professional Services (which provides client services in relation to the digital shopping experience of shopping online, such as strategic commerce consulting, strategy, design and digital marketing services and technology services). Each segment is led by a separate Business Unit Executive who reports directly to our Chief Executive Officer. During the three months ended March 31, 2019, we changed the composition of the business unit direct contribution to include certain shared service costs. Prior period amounts have been reclassified to include those allocated expenses. The following table discloses segment information for the periods presented (in thousands): Three Months Ended 2019 2018 Revenues: PFS Operations $ 53,430 $ 56,487 LiveArea Professional Services 18,719 21,934 Total revenues $ 72,149 $ 78,421 Business unit direct contribution: PFS Operations $ 2,527 $ 4,302 LiveArea Professional Services 1,873 2,114 Total business unit direct contribution $ 4,400 $ 6,416 Unallocated corporate expenses (4,843 ) (5,747 ) Income (loss) from operations $ (443 ) $ 669 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | . Commitments and Contingencies We received municipal tax abatements in certain locations. In prior years, we received notice from a municipality that we did not satisfy certain criteria necessary to maintain the abatements and that the municipal authority planned to make an adjustment to our tax abatement. We disputed the adjustment and such dispute has been settled with the municipality. However, the amount of additional property taxes to be assessed against us and the timing of the related payments has not been finalized. As of March 31, 2019 , we believe we have adequately accrued for the expected assessment. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company adopted ASU 2016-02, as of January 1, 2019, using the modified retrospective approach. Prior year financial statements were not recast under the new standard and, therefore, those amounts are not presented below. All of our office and warehouse facilities are leased under operating leases. We also lease vehicles primarily as operating leases. Most of our equipment leases are leased under finance leases. Lease costs are included within "Selling, General and Administrative Expenses" in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Total lease costs consists of the following (in thousands): Three Months Ended 2019 Finance lease costs: Amortization of ROU assets $ 512 Interest of lease liabilities 48 Operating lease costs 2,330 Variable lease costs 31 Short-term lease costs 419 Sublease income — Total lease costs $ 3,340 We had $2.4 million of finance lease assets that are reported in Property and Equipment, net as of March 31, 2019. As of March 31, 2019, our weighted-average remaining lease term relating to our operating leases is 6.1 years , with a weighted-average discount of 5.0% . As of March 31, 2019 our weighted-average remaining lease term relating to our finance leases is 2.3 years , with a weighted-average discount of 6.0% . Our leases have remaining lease terms of 1 month to 10 years . Maturities of lease liabilities as of March 31, 2019 were as follows (in thousands): As of March 31, 2019 Operating Leases Finance Leases 2019 $ 6,935 $ 1,227 2020 9,650 1,127 2021 8,900 714 2022 8,070 54 2023 6,480 — Thereafter 11,990 — Total lease payments 52,027 3,122 Less interest (7,504 ) (206 ) Total lease obligations $ 44,523 $ 2,916 Supplemental consolidated cash flow information related to leases is as follows (in thousands): Three Months Ended 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,319 Operating cash flows from finance leases 48 Financing cash flows from finance leases 495 Total rental expense under operating leases approximated $11.1 million for the year ended December 31, 2018. Future minimum lease payments under non-cancelable rental and lease agreements under ASC 840, Leases , having terms in excess of one year are as follows (in thousands): As of December 31, 2018 Operating Leases Finance Leases 2019 $ 9,659 $ 1,811 2020 10,028 1,169 2021 9,222 725 2022 8,407 55 2023 6,828 — Thereafter 12,840 — Minimum lease commitments $ 56,980 3,760 Less interest (265 ) Present value of net minimum lease obligations $ 3,495 |
Leases | Leases The Company adopted ASU 2016-02, as of January 1, 2019, using the modified retrospective approach. Prior year financial statements were not recast under the new standard and, therefore, those amounts are not presented below. All of our office and warehouse facilities are leased under operating leases. We also lease vehicles primarily as operating leases. Most of our equipment leases are leased under finance leases. Lease costs are included within "Selling, General and Administrative Expenses" in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Total lease costs consists of the following (in thousands): Three Months Ended 2019 Finance lease costs: Amortization of ROU assets $ 512 Interest of lease liabilities 48 Operating lease costs 2,330 Variable lease costs 31 Short-term lease costs 419 Sublease income — Total lease costs $ 3,340 We had $2.4 million of finance lease assets that are reported in Property and Equipment, net as of March 31, 2019. As of March 31, 2019, our weighted-average remaining lease term relating to our operating leases is 6.1 years , with a weighted-average discount of 5.0% . As of March 31, 2019 our weighted-average remaining lease term relating to our finance leases is 2.3 years , with a weighted-average discount of 6.0% . Our leases have remaining lease terms of 1 month to 10 years . Maturities of lease liabilities as of March 31, 2019 were as follows (in thousands): As of March 31, 2019 Operating Leases Finance Leases 2019 $ 6,935 $ 1,227 2020 9,650 1,127 2021 8,900 714 2022 8,070 54 2023 6,480 — Thereafter 11,990 — Total lease payments 52,027 3,122 Less interest (7,504 ) (206 ) Total lease obligations $ 44,523 $ 2,916 Supplemental consolidated cash flow information related to leases is as follows (in thousands): Three Months Ended 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,319 Operating cash flows from finance leases 48 Financing cash flows from finance leases 495 Total rental expense under operating leases approximated $11.1 million for the year ended December 31, 2018. Future minimum lease payments under non-cancelable rental and lease agreements under ASC 840, Leases , having terms in excess of one year are as follows (in thousands): As of December 31, 2018 Operating Leases Finance Leases 2019 $ 9,659 $ 1,811 2020 10,028 1,169 2021 9,222 725 2022 8,407 55 2023 6,828 — Thereafter 12,840 — Minimum lease commitments $ 56,980 3,760 Less interest (265 ) Present value of net minimum lease obligations $ 3,495 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements of PFSweb, Inc. and its subsidiaries have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and include all normal and recurring adjustments necessary to present fairly the unaudited condensed consolidated balance sheets, statements of operations and comprehensive loss, and statements of cash flows for the periods indicated. Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC. This report should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2018 . We refer to PFSweb, Inc. and its subsidiaries collectively as “PFSweb,” the “Company,” us,” “we” and “our” in these condensed consolidated financial statements. Results of our operations for interim periods may not be indicative of results for the full fiscal year. We reclassify certain prior year amounts, as applicable, to conform to the current year presentation. |
Leases | Leases We account for leases in accordance with Accounting Standard Codification (“ASC 842”) No. 842, Leases . Operating lease assets and liabilities are recognized at the commencement date, based on the present value of the future minimum lease payments over the lease term. A certain number of these leases contain rent escalation clauses either fixed or adjusted periodically for inflation or market rates that are factored into our determination of lease payments. We also have variable lease payments that do not depend on a rate or index, primarily for items such as common area maintenance and real estate taxes, which are recorded as variable cost when incurred. The operating lease right-of-use asset excludes incentives and initial direct costs incurred. As most of our operating leases do not provide an implicit rate, we use an incremental borrowing rate based on the information available at the lease commencement date to discount payments to the present value. Most operating leases contain renewal options, some of which also include options to terminate the leases early. The exercise of these options is at our discretion. We include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Per ASC 842, operating leases are included in "Operating lease right-of-use assets," "Current portion of operating lease liabilities" and "Operating lease liabilities" on the condensed consolidated balance sheets. Finance leases are included in "Property and equipment", "Long-term debt and finance lease obligations" and "current portion of long-term debt and finance lease obligations" on the condensed consolidated balance sheets. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets. Operating lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components and have elected to account for the lease and non-lease components separately. In addition, we utilized the portfolio approach to group leases with similar characteristics and did not use hindsight to determine lease term. See Note 9 for additional information. |
Impact of Recently Issued Accounting Standards | Impact of Recently Issued Accounting Standards Pronouncements Recently Adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases ("ASU 2016-02"), which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. In July 2018, the FASB issued additional authoritative guidance providing companies with an optional transition method to use the effective date of ASU 2016-02 as the date of initial application of transition and not restate comparative periods. We adopted the standard on January 1, 2019 using this optional transition method. As such, prior periods have not been recast under the new standard. We elected the package of practical expedients, which allows us to carry forward historical lease classification, the practical expedient to not separate non-lease components from lease components, and the short-term lease accounting policy election as defined in ASU 2016-02. We implemented internal controls and a lease accounting software to enable the preparation of financial information on adoption. The standard had a material impact on our condensed consolidated balance sheets, but did not have an impact on the condensed consolidated statements of operations and comprehensive income (loss) and had no impact on cash provided by or used in operating, investing or financing activities on our condensed consolidated statements of cash flows. The most significant impact was the recognition of right-of-use assets of $40.7 million and operating lease liabilities of $46.4 million for operating leases. The difference between the right-of-use assets and operating lease liabilities was recorded as an adjustment to deferred rent (lease incentives). The adoption of ASU 2016-02 had substantially no impact on our finance leases. Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, " Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ," which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, and requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. We are currently in the process of evaluating the impact of the adoption of ASU 2016-13 on our condensed consolidated financial statements in order to adopt the new standard in the first quarter of fiscal 2020. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill impairment” (“ASU 2017-04”), which removes Step 2 of the goodwill impairment test. A goodwill impairment will now be determined by the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2019, with early adoption permitted. We do not expect the adoption of ASU 2017-04 to have a material impact on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15 " Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract; Disclosures for Implementation Costs Incurred for Internal-Use Software and Cloud Computing Arrangements " (“ASU 2018-15”), which aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC Subtopic 350-40, in order to determine which costs to capitalize and recognize as an asset. ASU 2018-15 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, and can be applied either prospectively to implementation costs incurred after the date of adoption or retrospectively to all arrangements. We are currently in the process of evaluating the impact of the adoption of ASU 2018-15 on our condensed consolidated financial statements. |
Revenue from Contracts with C_2
Revenue from Contracts with Clients and Customers (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenues Disaggregated by Revenue Source and Region | The following tables present our revenues, excluding sales and usage-based taxes, disaggregated by revenue source (in thousands): Three Months Ended PFS Operations LiveArea Professional Services Total Revenues: Service fee revenue $ 33,055 $ 18,384 $ 51,439 Product revenue, net 7,499 — 7,499 Pass-through revenue 12,876 335 13,211 Total revenues $ 53,430 $ 18,719 $ 72,149 Three Months Ended PFS LiveArea Total Revenues: Service fee revenue $ 34,922 $ 21,565 $ 56,487 Product revenue, net 9,765 — 9,765 Pass-through 11,800 369 12,169 Total revenues $ 56,487 $ 21,934 $ 78,421 The following tables present our revenues, excluding sales and usage-based taxes, disaggregated by timing of revenue recognition (in thousands): Three Months Ended PFS LiveArea Total Revenues: Over time $ 45,931 $ 18,719 $ 64,650 Point-in-time 7,499 — 7,499 Total revenues $ 53,430 $ 18,719 $ 72,149 Three Months Ended PFS LiveArea Total Revenues: Over time $ 46,722 $ 21,784 $ 68,506 Point-in-time 9,765 150 9,915 Total revenues $ 56,487 $ 21,934 $ 78,421 The following tables present our revenues, excluding sales and usage-based taxes, disaggregated by region (in thousands): Three Months Ended PFS Operations LiveArea Professional Services Total Revenues by region: North America $ 43,602 $ 16,718 $ 60,320 Europe 9,828 2,001 11,829 Total revenues $ 53,430 $ 18,719 $ 72,149 |
Summary of Contract Balances | Contract balances consisted of the following (in thousands): March 31, December 31, Contract Assets Trade Accounts Receivable, net $ 52,165 $ 72,180 Unbilled Accounts Receivable 380 235 Costs to Fulfill 5,554 5,214 Total Contract Assets 58,099 77,629 Contract Liabilities Accrued Contract Liabilities 1,104 535 Deferred Revenue 8,472 9,255 Total Contract Liabilities $ 9,576 $ 9,790 |
Debt and Finance Lease Obliga_2
Debt and Finance Lease Obligations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Debt and Finance Lease Obligations | Outstanding debt and finance lease obligations consist of the following (in thousands): March 31, December 31, U.S. Credit Agreement Revolver $ 28,725 $ 35,500 Equipment loan 4,125 3,263 Debt issuance costs (362 ) (382 ) Master lease agreements 2,916 3,495 Other 140 82 Total 35,544 41,958 Less current portion of long-term debt 2,846 2,610 Long-term debt, less current portion $ 32,698 $ 39,348 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | The following table discloses segment information for the periods presented (in thousands): Three Months Ended 2019 2018 Revenues: PFS Operations $ 53,430 $ 56,487 LiveArea Professional Services 18,719 21,934 Total revenues $ 72,149 $ 78,421 Business unit direct contribution: PFS Operations $ 2,527 $ 4,302 LiveArea Professional Services 1,873 2,114 Total business unit direct contribution $ 4,400 $ 6,416 Unallocated corporate expenses (4,843 ) (5,747 ) Income (loss) from operations $ (443 ) $ 669 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease Costs and Supplemental Cash Flow Information | Total lease costs consists of the following (in thousands): Three Months Ended 2019 Finance lease costs: Amortization of ROU assets $ 512 Interest of lease liabilities 48 Operating lease costs 2,330 Variable lease costs 31 Short-term lease costs 419 Sublease income — Total lease costs $ 3,340 Supplemental consolidated cash flow information related to leases is as follows (in thousands): Three Months Ended 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,319 Operating cash flows from finance leases 48 Financing cash flows from finance leases 495 |
Finance Lease Maturity | Maturities of lease liabilities as of March 31, 2019 were as follows (in thousands): As of March 31, 2019 Operating Leases Finance Leases 2019 $ 6,935 $ 1,227 2020 9,650 1,127 2021 8,900 714 2022 8,070 54 2023 6,480 — Thereafter 11,990 — Total lease payments 52,027 3,122 Less interest (7,504 ) (206 ) Total lease obligations $ 44,523 $ 2,916 |
Operating Lease Maturity | Maturities of lease liabilities as of March 31, 2019 were as follows (in thousands): As of March 31, 2019 Operating Leases Finance Leases 2019 $ 6,935 $ 1,227 2020 9,650 1,127 2021 8,900 714 2022 8,070 54 2023 6,480 — Thereafter 11,990 — Total lease payments 52,027 3,122 Less interest (7,504 ) (206 ) Total lease obligations $ 44,523 $ 2,916 |
Finance Lease Maturity | Future minimum lease payments under non-cancelable rental and lease agreements under ASC 840, Leases , having terms in excess of one year are as follows (in thousands): As of December 31, 2018 Operating Leases Finance Leases 2019 $ 9,659 $ 1,811 2020 10,028 1,169 2021 9,222 725 2022 8,407 55 2023 6,828 — Thereafter 12,840 — Minimum lease commitments $ 56,980 3,760 Less interest (265 ) Present value of net minimum lease obligations $ 3,495 |
Operating Lease Maturity | Future minimum lease payments under non-cancelable rental and lease agreements under ASC 840, Leases , having terms in excess of one year are as follows (in thousands): As of December 31, 2018 Operating Leases Finance Leases 2019 $ 9,659 $ 1,811 2020 10,028 1,169 2021 9,222 725 2022 8,407 55 2023 6,828 — Thereafter 12,840 — Minimum lease commitments $ 56,980 3,760 Less interest (265 ) Present value of net minimum lease obligations $ 3,495 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, right of use asset | $ 38,788 | |
Total lease obligations | $ 44,523 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, right of use asset | $ 40,700 | |
Total lease obligations | $ 46,400 |
Revenue from Contracts with C_3
Revenue from Contracts with Clients and Customers - Summary of Revenues Disaggregated (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | $ 72,149 | $ 78,421 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 60,320 | 63,783 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 11,829 | 14,638 |
PFS Operations | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 53,430 | 56,487 |
PFS Operations | North America | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 43,602 | 44,617 |
PFS Operations | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 9,828 | 11,870 |
LiveArea Professional Services | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 18,719 | 21,934 |
LiveArea Professional Services | North America | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 16,718 | 19,166 |
LiveArea Professional Services | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 2,001 | 2,768 |
Service fee revenue | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 51,439 | 56,487 |
Service fee revenue | PFS Operations | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 33,055 | 34,922 |
Service fee revenue | LiveArea Professional Services | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 18,384 | 21,565 |
Product revenue, net | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 7,499 | 9,765 |
Product revenue, net | PFS Operations | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 7,499 | 9,765 |
Product revenue, net | LiveArea Professional Services | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 0 | 0 |
Pass-through revenue | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 13,211 | 12,169 |
Pass-through revenue | PFS Operations | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 12,876 | 11,800 |
Pass-through revenue | LiveArea Professional Services | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 335 | 369 |
Over time | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 64,650 | 68,506 |
Over time | PFS Operations | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 45,931 | 46,722 |
Over time | LiveArea Professional Services | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 18,719 | 21,784 |
Point-in-time | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 7,499 | 9,915 |
Point-in-time | PFS Operations | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 7,499 | 9,765 |
Point-in-time | LiveArea Professional Services | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | $ 0 | $ 150 |
Revenue from Contracts with C_4
Revenue from Contracts with Clients and Customers - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Changes in costs to fulfill contract assets | $ 0.3 |
Increase in costs to fulfill contracts with customers from new projects | 1.9 |
Amortization of costs to fulfill contract assets | 1.6 |
Change in contract liabilities | (0.2) |
Increase in contract liabilities for new projects | 2.4 |
Decrease in contract liabilities from amortization and recognition and recognition of revenue | 2.6 |
Performance obligation | $ 23.1 |
Revenue from Contracts with C_5
Revenue from Contracts with Clients and Customers - Additional Information, Performance Obligation (Details) | Mar. 31, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, percentage | 71.00% |
Performance obligation, expected timing of satisfaction | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, percentage | 23.00% |
Performance obligation, expected timing of satisfaction | 1 year |
Revenue from Contracts with C_6
Revenue from Contracts with Clients and Customers - Summary of Contract Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Contract Assets | ||
Trade Accounts Receivable, net | $ 52,165 | $ 72,180 |
Unbilled Accounts Receivable | 380 | 235 |
Costs to Fulfill | 5,554 | 5,214 |
Total Contract Assets | 58,099 | 77,629 |
Contract Liabilities | ||
Accrued Contract Liabilities | 1,104 | 535 |
Deferred Revenue | 8,472 | 9,255 |
Total Contract Liabilities | $ 9,576 | $ 9,790 |
Inventory Financing - Additiona
Inventory Financing - Additional Information (Details) - Line of Credit - Short Term Credit Facility - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | ||
Maximum credit under credit agreement | $ 11,000,000 | |
Termination notice period | 90 days | |
Outstanding borrowings | $ 5,200,000 | $ 4,700,000 |
Available credit under credit agreement | 500,000 | |
Subordinated note outstanding, minimum limit | $ 1,000,000 | |
Weighted average interest rate | 6.00% | 5.75% |
Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Variable rate basis | 0.50% |
Debt and Finance Lease Obliga_3
Debt and Finance Lease Obligations - Summary of Outstanding Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Master lease agreements | $ 2,916 | |
Master lease agreements | $ 3,495 | |
Other | 140 | 82 |
Debt and capital lease obligation | 35,544 | 41,958 |
Less current portion of long-term debt | 2,846 | 2,610 |
Long-term debt, less current portion | 32,698 | 39,348 |
U.S. Credit Agreement | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | (362) | (382) |
U.S. Credit Agreement | Revolver | ||
Debt Instrument [Line Items] | ||
U.S. Credit Agreement | 28,725 | 35,500 |
U.S. Credit Agreement | Equipment Loan | ||
Debt Instrument [Line Items] | ||
U.S. Credit Agreement | $ 4,125 | $ 3,263 |
Debt and Finance Lease Obliga_4
Debt and Finance Lease Obligations - U.S. Credit Agreement - Additional Information (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Nov. 01, 2018 |
Line of Credit Facility [Line Items] | |||
Available credit under credit agreement for equipment purchases | $ 8,900,000 | ||
U.S. Credit Agreement | Revolving Loan Facility | |||
Line of Credit Facility [Line Items] | |||
Availability under credit agreement | $ 60,000,000 | ||
Available increase under credit agreement | 20,000,000 | ||
Availability under credit agreement after available increase under credit agreement | 80,000,000 | ||
Availability under credit agreement for equipment purchases | $ 10,000,000 | ||
Available credit under credit agreement | $ 31,300,000 | ||
Weighted average interest rate on outstanding borrowings | 4.43% | 4.57% |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Outstanding common stock excluded from calculations of diluted earnings per share (in shares) | 1.8 | 1.7 |
Segment Information - Summary o
Segment Information - Summary of Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Summary of product revenue by segments | ||
Total revenues | $ 72,149 | $ 78,421 |
Business unit direct contribution by segments | ||
Income (loss) from operations | (443) | 669 |
PFS Operations | ||
Summary of product revenue by segments | ||
Total revenues | 53,430 | 56,487 |
LiveArea Professional Services | ||
Summary of product revenue by segments | ||
Total revenues | 18,719 | 21,934 |
Operating Segments | ||
Summary of product revenue by segments | ||
Total revenues | 72,149 | 78,421 |
Business unit direct contribution by segments | ||
Business unit direct contribution | 4,400 | 6,416 |
Operating Segments | PFS Operations | ||
Summary of product revenue by segments | ||
Total revenues | 53,430 | 56,487 |
Business unit direct contribution by segments | ||
Business unit direct contribution | 2,527 | 4,302 |
Operating Segments | LiveArea Professional Services | ||
Summary of product revenue by segments | ||
Total revenues | 18,719 | 21,934 |
Business unit direct contribution by segments | ||
Business unit direct contribution | 1,873 | 2,114 |
Unallocated Corporate | ||
Business unit direct contribution by segments | ||
Unallocated corporate expenses | $ (4,843) | $ (5,747) |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Finance lease costs: | |
Amortization of ROU assets | $ 512 |
Interest of lease liabilities | 48 |
Operating lease costs | 2,330 |
Variable lease costs | 31 |
Short-term lease costs | 419 |
Sublease income | 0 |
Total lease costs | $ 3,340 |
Leases - Additional Informatio
Leases - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Finance lease asset | $ 2.4 |
Operating lease, weighted-average remaining lease term | 6 years 1 month 6 days |
Operating lease, weighted-average discount rate | 5.00% |
Finance lease, weighted-average remaining lease term | 2 years 3 months 18 days |
Finance lease, weighted-average discount rate | 6.00% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 month |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 10 years |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Leases | |
2019 | $ 6,935 |
2020 | 9,647 |
2021 | 8,899 |
2022 | 8,074 |
2023 | 6,479 |
Thereafter | 11,993 |
Total lease payments | 52,027 |
Less interest | (7,504) |
Total lease obligations | 44,523 |
Finance Leases | |
2019 | 1,227 |
2020 | 1,127 |
2021 | 714 |
2022 | 54 |
2023 | 0 |
Thereafter | 0 |
Total lease payments | 3,122 |
Less interest | (206) |
Total lease obligations | $ 2,916 |
Leases - Supplemental Consolid
Leases - Supplemental Consolidated Cash Flows (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 2,319 |
Operating cash flows from finance leases | 48 |
Financing cash flows from finance leases | $ 495 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Leases [Abstract] | |
Rental expense under operating leases | $ 11,100 |
Operating Leases | |
2019 | 9,659 |
2020 | 10,028 |
2021 | 9,222 |
2022 | 8,407 |
2023 | 6,828 |
Thereafter | 12,840 |
Minimum lease commitments | 56,984 |
Finance Leases | |
2019 | 1,811 |
2020 | 1,169 |
2021 | 725 |
2022 | 55 |
2023 | 0 |
Thereafter | 0 |
Minimum lease commitments | 3,760 |
Less interest | (265) |
Present value of net minimum lease obligations | $ 3,495 |
Uncategorized Items - pfsw-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 276,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 276,000 |