EMAIL CONTACT:
PRESS@OUTPOST.COM
EXHIBIT 99.1
OUTPOST.COM REPORTS FINANCIAL RESULTS FOR FISCAL 2001
FOURTH QUARTER AND FULL YEAR
Kent, CT April 12, 2001 - Outpost.com (Cyberian Outpost, Inc. - Nasdaq: COOL) a
leading global Internet retailer of high-end technology products, today
announced unaudited financial results for the fourth quarter and fiscal year
ended February 28, 2001.
Net sales for the fiscal quarter ended February 28, 2001 were $120.9 million, up
58% compared to the $76.5 million in Q4 2000. The company reported a pro forma
net loss, excluding goodwill and amortization, of ($9.5) million for the quarter
and pro forma basic and diluted net loss per share of ($0.30). Including
goodwill amortization, the quarterly net loss was ($10.1) million or ($.32) per
share, versus a net loss of ($9.8) million and basic and diluted net loss per
share of ($0.41) a year ago. Gross margin for the quarter was 15.0% vs. 12.4%
during Q4 2000.
For the fiscal year ended February 28, 2001 net sales were $355.2 million, 86.6%
more than the $190.3 million of net sales for the prior fiscal year. Pro forma
net loss excluding amortization of goodwill was ($29.3) million and ($0.97) per
share. Including goodwill amortization, the net loss for FY 2001 was ($30.3)
million and ($1.01) per share better than the ($35.6) million and ($1.52) a year
ago.
During the fourth quarter, Outpost added approximately 293,000 new customers
bringing its total customer base to an estimated 1.3 million. The Company's
repeat buying rate remained strong with 57% of quarterly product sales coming
from repeat buyers.
"Given the current economic environment, we were pleased to have met our lowered
estimates for the quarter" stated Darryl Peck, Chairman, of Outpost.com.
"Current market conditions have made it difficult to secure the required equity
and working capital financing we need. Therefore, we intend to meet with our
creditors to discuss payment options," stated Peck. "As a result, the Company
has decided to explore all available options at this time."
The Company also announced it will take a number of cost reduction actions and
explore other strategic alternatives.
Market conditions and the unpredictable economic environment preclude the
company from making meaningful estimates for fiscal 2002 at this time.
This press release contains forward-looking statements, including statements
about our fourth quarter and full year operating results, our intention to meet
with our creditors and our intention to cut costs and explore strategic
alternatives. These forward-looking statements are based on unaudited financial
information. The statements in this release are not guarantees of future
performance and actual results could differ materially from current expectations
as a result of numerous factors. For example: Outpost may be unable to
successfully negotiate with its creditors, Outpost may be unable to raise
additional capital or enter into strategic alternatives on favorable terms or at
all, Outpost may have revenue-related adjustments as a result of its annual
audit, or operating and non-operating cost adjustments, e. g., increased
shipping costs, its business may not grow as quickly as expected, computer sales
may continue to slow, and/or its average order size may decrease. In addition,
various other risks include actions of Outpost's competitors, Outpost's reliance
upon strategic alliances; product availability and technological difficulties.
We undertake no duty to update any forward-looking statements.
NOTES ON FINANCIAL PRESENTATION
Historical results of operations are preliminary and unaudited. Financial
results are prepared in accordance with U.S. generally accepted accounting
principles. The Company expects to file its audited financial statements on form
10K prior to the May 31, 2001 filing deadline. Pro forma financial results
exclude amortization of goodwill.
Certain prior period balances have been reclassified to conform to the current
period's presentation.
In February 2001 the Company changed its accounting policy for classifying
shipping revenue in accordance with Emerging Issues Task Force Issue 00-10
("EITF 00-10") "Accounting for Shipping and Handling Fees and Costs". The
Company was required by the EITF to adopt this accounting change in the fourth
quarter. Shipping revenue had historically been netted against shipping costs
in the "Sales and marketing" classification on the income statement. Due to
classification of shipping revenue as net sales, prior period gross profit as
well as sales and marketing expense amounts have changed. Application of this
accounting change is a reclassification on the statement of operations and does
not affect the net losses previously reported.
ABOUT OUTPOST.COM
Outpost.com, established in 1995, is a leading Internet retailer of consumer
technology products. Outpost.com has been named the top-rated consumer shopping
experience on the Web by the on-line shoppers' rating service Bizrate.com,
receiving the "Circle of Excellence Award" for Holiday 2000 and the 1999, 2000
and 2001 #1 PowerRanking for Computing by Forrester Research. Outpost.com's 24/7
Customer Service Center and free overnight delivery service for in stock
products over $100 is unmatched in the industry. Today, Outpost.com has an
existing customer base of over 1.3 million. The company has partnered with
leading retailers Tweeter Home Entertainment Group and Brookstone expanding its
clicks and mortar presence to more than 320 retail locations. As a full service
provider (FSP), Outpost.com provides these partners with e-commerce solutions
encompassing site design, site maintenance, order management and fulfillment.
OUTPOST.COM
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
FEBRUARY 28, FEBRUARY 29,
2001 2000
---- ----
Assets
Current Assets:
Cash and cash equivalents...................................................... $ 21,970 $ 13,293
Short term investments......................................................... -- 7,694
Accounts receivable, net....................................................... 15,762 4,385
Inventories.................................................................... 15,234 12,168
Prepaid expenses and other current assets...................................... 692 1,133
-------- --------
Total current assets........................................................ 53,658 38,673
Property and equipment, net...................................................... 20,580 10,545
Investment in joint venture...................................................... -- 2,709
Goodwill......................................................................... 15,224 --
Other assets..................................................................... 243 951
-------- --------
Total assets................................................................ $ 89,705 $ 52,878
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Liabilities and Stockholders' Equity
Current Liabilities:
Current portion of capital lease obligations................................... $ 696 $ 666
Accounts payable............................................................... 37,372 24,221
Accrued expenses and other current liabilities................................. 6,080 2,753
-------- --------
Total current liabilities................................................... 44,148 27,640
Capital lease obligations, excluding current portion and other long-term debt 389 718
-------- --------
Total liabilities........................................................... 44,537 28,358
Minority interest................................................................ 3,603 --
Stockholders' equity:
Common stock................................................................... 317 237
Additional paid-in capital..................................................... 141,172 93,921
Accumulated deficit............................................................ (99,924) (69,638)
-------- --------
Total stockholders' equity.................................................. 41,565 24,520
-------- --------
Total liabilities and stockholders' equity.................................. $ 89,705 $ 52,878
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OUTPOST.COM
Consolidated Statements of Operations
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED TWELVE MONTHS ENDED
FEBRUARY 28, FEBRUARY 29, FEBRUARY 28, FEBRUARY 29,
2001 2000 2001 2000
---- ---- ---- ----
Net sales....................................... $ 120,918 $ 76,478 $ 355,198 $ 190,337
Cost of sales................................... 102,741 67,028 302,456 166,847
--------- -------- --------- ---------
Gross profit.................................. 18,177 9,450 52,742 23,490
Operating expenses:
Sales and marketing........................... 20,351 15,005 57,880 43,399
General and administrative.................... 4,196 1,785 13,575 7,401
Technology and development.................... 3,063 3,035 11,491 10,409
Amortization of goodwill...................... 625 - 1,121 -
--------- -------- --------- ---------
Total operating expenses................... 28,235 19,825 84,067 61,209
--------- -------- --------- ---------
Operating loss................................ (10,058) (10,375) (31,325) (37,719)
Other income, net............................... 308 550 1,932 2,103
--------- -------- --------- ---------
Net loss before minority interest............. (9,750) (9,825) (29,393) (35,616)
Minority interest............................... (413) - (893) -
--------- -------- --------- ---------
Net loss...................................... $ (10,163) $ (9,825) $ (30,286) $ (35,616)
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Basic and diluted net loss per share............ $ (0.32) $ (0.41) (1.01) $ (1.52)
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Weighted average shares outstanding............. 31,669 23,697 29,893 23,382
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Pro Forma Results
Pro forma net loss............................ $ (9,538) $ (9,825) $ (29,165) $ (35,616)
========= ======== ========= =========
Basic and diluted net loss per share............ $ (0.30) $ (0.41) $ (0.98) $ (1.52)
========= ======== ========= =========
Weighted average shares outstanding............. 31,669 23,697 29,893 23,382
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