Exhibit 99.1
GSI COMMERCE REPORTS RECORD FISCAL 2005 SECOND QUARTER OPERATING RESULTS;
COMPANY SIGNS MULTIYEAR AGREEMENTS WITH THREE NEW PARTNERS
KING OF PRUSSIA, Pa., July 27 /PRNewswire-FirstCall/ -- GSI Commerce Inc.
(Nasdaq: GSIC) today announced results for the second fiscal quarter ended July
2, 2005.
"The second quarter was very exciting for GSI Commerce, highlighted by
strong operating results, continued new partner momentum and the addition of
international capabilities," said Michael G. Rubin, chairman and CEO of GSI
Commerce. "Our solid top- and bottom-line results reflect the strength of our
partner base and platform as well as robust underlying e-commerce trends. The
addition of three new partners brings our total for the year to nine new
partners and already has us at the high end of our expected range of five to 10
new partners for the year. This reflects what we believe is a growing interest
in e-commerce outsourcing and GSI Commerce's leadership position in the market.
Through our agreement to acquire control of Aspherio, we now are able to offer
international capabilities to our partners, opening up what we believe could be
a significant growth opportunity for GSI Commerce. Overall, GSI Commerce had a
strong first half of fiscal 2005 and we believe we are well positioned to
deliver solid results for the balance of the year."
Net Revenues and Merchandise Sales
-- Net revenues were $91.7 million for the second quarter of fiscal 2005,
a 42 percent increase compared to $64.7 million in the same period in
fiscal 2004.
-- Merchandise sales were $136.8 million for the second quarter of fiscal
2005, a 53 percent increase compared to $89.6 million in the same
period in fiscal 2004. A definition of merchandise sales appears later
in this news release under "Non-GAAP Financial Measures."
Components of Net Revenues and Merchandise Sales
-- Net revenues from product sales from the sporting goods category were
$41.9 million for the second quarter of fiscal 2005, a 25 percent
increase compared to $33.6 million for the same period last year.
-- Merchandise sales from the sporting goods category were $51.4 million
for the second quarter of fiscal 2005, a 36 percent increase compared
to $37.9 million in the same period last year.
-- Net revenues from product sales from other categories were $33.3
million for the second quarter of fiscal 2005, a 70 percent increase
compared to $19.5 million for the same period last year.
-- Merchandise sales from other categories were $85.4 million for the
second quarter of fiscal 2005, a 65 percent increase compared to $51.7
million in the same period last year.
-- Service fee revenues were $16.5 million in the second quarter of
fiscal 2005, a 43 percent increase compared to $11.6 million in the
same period last year.
Net Loss, EPS and Adjusted EBITDA
-- Net loss was $2.8 million or $0.07 per share for the second quarter of
fiscal 2005, compared to a net loss of $3.1 million or $0.08 per share
in the same period last year.
-- Stock-based compensation expense was $1.7 million in the second
quarter of fiscal 2005, compared to $153,000 in the same period last
year. The increase in stock-based compensation was primarily due to
the impact that the increase in the price of the company's common
stock during the second quarter had on historical stock awards subject
to variable accounting and the issuance of restricted stock awards
under its new long-term incentive compensation program.
-- Adjusted EBITDA was $2.5 million for the second quarter of fiscal
2005, compared to an adjusted EBITDA loss of $535,000 in the same
period last year. A definition of adjusted EBITDA appears later in
this news release under "Non-GAAP Financial Measures."
Gross Profit and Operating Expenses
-- Gross profit was $34.6 million in the second quarter of fiscal 2005,
an increase of 38 percent compared to $25.1 million in the same period
last year.
-- Gross margin was 37.8 percent in the second quarter of fiscal 2005, a
decline of 100 basis points from 38.8 percent in the same period last
year. The decline in gross margin was primarily due to product sales
from other categories, which carry lower gross margins on a relative
basis, growing more rapidly than product sales from sporting goods.
-- Total operating expenses were $37.6 million for the second quarter of
fiscal 2005, a 32 percent increase compared to $28.5 million for the
same period last year.
-- Total operating expenses, as a percentage of net revenues, decreased
to 41.0 percent in the second quarter of fiscal 2005 compared to 44.0
percent in the second quarter of fiscal 2004.
-- Total operating expenses of $37.6 million, as a percentage of
merchandise sales of $136.8 million, were 27.5 percent in the second
quarter of fiscal 2005. This compared to total operating expenses of
$28.5 million in the same period last year, which as a percentage of
merchandise sales of $89.6 million, was 31.8 percent.
Balance Sheet
-- The company's cash, cash equivalents, short-term investments and
marketable securities at the end of the second fiscal quarter of 2005
were $117.5 million compared to $75.4 million at the end of fiscal
year 2004, and $48.2 million at the end of second fiscal quarter of
2004.
Key Events Since April 27, 2005
-- The company signed a multiyear agreement to provide a comprehensive
e-commerce solution for General Nutrition Corporation (GNC), the
largest global specialty retailer of nutritional supplements. The
agreement calls for GSI Commerce to provide GNC with an e-commerce
solution that includes core technology, fulfillment and customer care
operations. GNC's new e-commerce business is expected to launch in the
fourth quarter of this year.
-- The company signed a multiyear agreement with Zale Corporation (NYSE:
ZLC) to provide North America's largest specialty retailer of fine
jewelry with multichannel e-commerce solutions for each of its brands
- Zales Jewelers, Zales Outlet, Gordon's Jewelers, Bailey Banks &
Biddle Fine Jewelers and Piercing Pagoda in the United States as well
as Peoples Jewellers and Mappins Jewellers in Canada. The e-commerce
solution includes the core technology platform, customer care
operations and multichannel initiatives.
-- In addition, the company signed multiyear agreements with three new
partners. All three partners are expected to launch their new
e-commerce operations during the third and fourth quarters of this
year. Revenues from all three new partners will be recorded as service
fees. GSI Commerce will provide its core technology platform and
fulfillment services to all three new partners and customer care
operations for two of the new partners.
-- The company announced it had entered into a definitive agreement
pursuant to which it would acquire control of privately held Aspherio,
S.L., a Barcelona, Spain-based provider of outsourced e-commerce
solutions (http://www.aspherio.com). Subject to the satisfaction of
certain conditions, the acquisition is expected to close in late 2005
or early 2006.
-- The company successfully raised approximately $80 million of net
proceeds through the concurrent sale of 1.8 million common shares and
$57.5 million aggregate principal amount of 3 percent convertible
notes due 2025. The company will use the net proceeds for working
capital and general corporate purposes, including possible
acquisitions.
Fiscal 2005 Third Quarter and Annual Financial Guidance
The following forward-looking statements reflect GSI Commerce's
expectations as of July 27, 2005. GSI Commerce provides guidance for its
business based only on signed partner agreements. Given the potential changes in
general economic conditions and consumer spending, the emerging nature of
e-commerce and various other risk factors discussed below and in our public
reports, actual results may differ materially. At this time, GSI Commerce has
decided not to early adopt FASB 123(R) and, accordingly, the company's guidance
does not include any impact from this accounting provision. In calculating
stock-based compensation expense, which is included in the company's financial
guidance, it is assumed the company's stock price will remain unchanged from
period to period for future quarters.
The company provides the following guidance for the fiscal 2005 third
quarter:
-- Net revenues are expected to be in the range of $79.0 million to $84.0
million.
-- Merchandise sales are expected to be in the range of $122.0 million to
$132.0 million.
-- Net loss is expected to be in the range of $2.5 million to $3.0
million.
-- Adjusted EBITDA is expected to be in the range of $1.5 million to $2.0
million.
The company provides the following updated guidance for fiscal year 2005:
-- Net revenues are expected to be in the range of $430.0 million to
$445.0 million.
-- Merchandise sales are expected to be in the range of $675.0 million to
$695.0 million.
-- Net income is expected to be in the range of $9.5 million to $10.5
million.
-- Adjusted EBITDA is expected to be in the range of $28.0 million to
$29.0 million.
"Our updated guidance reflects higher net revenue and merchandise sales
expectations compared to our previous guidance primarily due to the addition of
five new partners. Our third quarter guidance reflects the normal seasonality of
our business. In fiscal 2004, launch activity in the second fiscal quarter drove
higher sequential net revenue in the third fiscal quarter, whereas, in fiscal
2005, launch activity is expected to be concentrated late in the fiscal third
quarter and early in the fiscal fourth quarter," commented Jordan Copland,
executive vice president and chief financial officer. "We have raised the low
end of our adjusted EBITDA guidance, but kept the top end the same due to higher
expected volume, offset to a large extent by higher launch costs attributable to
the addition of new partners more quickly than expected during the year. While
we are incurring the launch expenses for these new partners in 2005, we expect
the principal benefit to be realized in 2006 and beyond. Our expected net income
range has been adjusted primarily to take into consideration higher anticipated
stock- based compensation expense. The expected increase in stock-based
compensation expense for 2005 is due to the increase in our stock price in the
second quarter of fiscal 2005 and the issuance or expected issuance of
restricted stock awards as a portion of compensation for certain employees.
Historically, GSI Commerce issued stock options to employees, for which there
was no required earnings charge. In anticipation of adopting FASB 123(R)
(Share-Based Payments), the company instituted a revised long-term incentive
compensation program that emphasizes restricted stock awards and which required
the expensing of certain grants beginning in the second quarter of fiscal 2005."
Non-GAAP Financial Measures
This news release contains the non-GAAP measures merchandise sales, certain
ratios that use merchandise sales and adjusted EBITDA. Merchandise sales
represent the retail value of all sales transactions, inclusive of freight
charges and net of allowances for returns and discounts, which flow through the
GSI Commerce platform, whether or not the company is the seller of the
merchandise, or records the full amount of such sales on its financial
statements. GSI Commerce uses merchandise sales as a metric for operating its
business. Variable costs such as fulfillment and customer service labor expense,
order processing costs such as credit card and bank processing fees and business
management costs such as department staffing levels in partner services are
related to the amount of sales made through GSI Commerce's platform, whether or
not GSI Commerce records the revenue from such sales. GSI Commerce believes that
investors will have a more thorough understanding of its historical expenses and
expense trends if they have visibility to both GAAP net revenue as well as the
non-GAAP financial measure merchandise sales and the percentages that such
expenses bear to net revenues and merchandise sales.
GSI Commerce also uses adjusted EBITDA, which represents earnings (or
losses) before interest income/expense, taxes, depreciation, amortization, and
stock-based compensation. GSI Commerce uses adjusted EBITDA as a means to
evaluate its performance period to period without taking into account certain
expenses, particularly stock-based compensation expense, which may fluctuate
materially due to fluctuations in the price of GSI Commerce's common stock both
on a quarterly and annual basis, and does not consistently reflect GSI
Commerce's results from its core business activities.
These financial measures should be considered in addition to, and not as a
substitute for, or superior to, other measures of financial performance prepared
in accordance with GAAP. The non-GAAP financial measures included in this press
release have been reconciled to the nearest GAAP measures as required under
Securities and Exchange Commission rules and are contained later in this
release.
Second Quarter 2005 Conference Call
GSI Commerce has scheduled a conference call on July 27, at 4:45 p.m. EDT
to discuss the company's fiscal 2005 second quarter results and expectations for
future performance. For access to the conference call, please call the toll-free
conference number, 1-800-591-6923, by 4:30 p.m. EDT on July 27. The conference
passcode is "38701957." Alternatively, to listen to the call live on the Web, go
to the GSI Commerce Web site, http://www.gsicommerce.com, and click on the link
provided on the home page. Please do this at least 15 minutes prior to the call
(4:30 p.m. EDT) to register, download and install any necessary audio software.
The conference call also will be broadcast live on the Web through CCBN
StreetEvents (http://www.streetevents.com). For those who cannot listen to the
live Webcast, a telephone replay of the conference call will be available one
hour after the completion of the call and remain available through Aug 29.
Access to a recording of the conference call can be made by calling toll-free,
1-888-286-8010. The telephone replay passcode is "54171910." In addition, access
to a replay of the conference call's Webcast can be found on the home page of
the GSI Commerce Web site. Access to the Webcast replay also will remain
available through Aug. 29.
About GSI Commerce
GSI Commerce is a leading provider of e-commerce solutions that enable
retailers, branded manufacturers, entertainment companies and professional
sports organizations to operate e-commerce businesses. We provide solutions for
our partners through our integrated e-commerce platform, which is comprised of
three components: core technology, supporting infrastructure and partner
services. We either operate, or will operate pursuant to signed agreements, all
or portions of the e-commerce businesses for approximately 50 partners.
Forward-Looking Statements
All statements made in this release and to be made in GSI Commerce's fiscal
2005 second quarter conference call, including those in the tape recording, live
audio and live Webcast of the call, other than statements of historical fact,
are or will be forward-looking statements. The words "anticipate," "believe,"
"estimate," "expect," "intend," "may," "plan," "will," "would," "should,"
"guidance," "potential," "continue," "project," "forecast," "confident,"
"prospects," and similar expressions typically are used to identify
forward-looking statements. Forward-looking statements are based on the
then-current expectations, beliefs, assumptions, estimates and forecasts about
the business of GSI Commerce and the industries and markets in which GSI
Commerce operates. These statements are not guarantees of future performance and
involve risks, uncertainties and assumptions, which are difficult to predict.
Therefore, actual outcomes and results may differ materially from what is
expressed or implied by these forward-looking statements. Factors which may
affect GSI Commerce's business, financial condition and operating results
include the effects of changes in the economy, the impact of FASB 123(R),
consumer spending, the financial markets and the industries in which GSI
Commerce and its partners operate, changes affecting the Internet and
e-commerce, the ability of GSI Commerce to develop and maintain relationships
with strategic partners and suppliers and the timing of its establishment,
extension or termination of its relationships with strategic partners, the
ability of GSI Commerce to timely and successfully develop, maintain and protect
its technology and product and service offerings and execute operationally, the
ability of GSI Commerce to attract and retain qualified personnel, the ability
of GSI Commerce to successfully integrate its acquisitions of other businesses,
if any, and the performance of acquired businesses. More information about
potential factors that could affect GSI Commerce can be found in its most recent
Form 10-K, Form 10-Q and other reports and statements filed by GSI Commerce with
the SEC. GSI Commerce expressly disclaims any intent or obligation to update
these forward-looking statements, except as otherwise specifically stated by GSI
Commerce.
GSI COMMERCE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
--------------------------------
July 3, July 2,
2004 2005
-------------- --------------
(as restated)
Cash Flows from Operating Activities:
Net loss $ (7,174) $ (4,453)
Adjustments to reconcile net loss to
net cash provided by (used in)
operating activities:
Depreciation and amortization 5,245 6,739
Stock-based compensation 780 1,518
Gain on exchange of note receivable (6) -
Changes in operating assets and liabilities:
Accounts receivable, net (2,385) 3,765
Inventory 879 4,665
Prepaid expenses and other current assets 346 (759)
Notes receivable 32 -
Other assets, net (182) (2,464)
Accounts payable and accrued expenses
and other (6,656) (38,338)
Deferred revenue (3,229) (1,923)
Net cash used in operating activities (12,350) (31,250)
Cash Flows from Investing Activities:
Acquisition of property and equipment, net (23,658) (11,702)
Payments received on notes receivable 826 -
Deferred cost in other - (572)
Net cash paid for equity investment - (136)
Purchases of marketable securities (1) (17,308) (81,728)
Sales of marketable securities (1) 15,105 43,000
Net cash used in investing activities (25,035) (51,138)
Cash Flows from Financing Activities:
Proceeds from convertible notes - 57,500
Repayments of loan - (339)
Repayments of capital lease obligations - (268)
Proceeds from mortgage note 13,000 -
Repayments of mortgage note - (71)
Proceeds from sale of common stock - 26,380
Proceeds from exercises of common
stock options 1,052 2,605
Net cash provided by financing
activities 14,052 85,807
Net (decrease) increase in cash and
cash equivalents (23,333) 3,419
Cash and cash equivalents, beginning of year 38,808 20,064
Cash and cash equivalents, end of period $ 15,475 $ 23,483
(1) The Company's consolidated financial statements for the year ended January
1, 2005 were restated to change the classification of the investment in
auction rate securities from cash and cash equivalents to marketable
securities. Accordingly, the Company restated its Condensed Consolidated
Statement of Cash Flows for the six-month period ended July 3, 2004 to
reflect the purchases of $11.2 million and sales of $12.5 million of these
investments as investing activities rather than as a component of cash and
cash equivalents.
GSI COMMERCE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
January 1, July 2,
2005 2005
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 20,064 $ 23,483
Marketable securities 55,359 94,006
Accounts receivable, net of
allowance of $408 and $291,
respectively 14,908 11,143
Inventory 37,773 33,108
Prepaid expenses and other
current assets 2,382 3,141
Total current assets 130,486 164,881
Property and equipment, net 74,286 79,262
Goodwill 13,453 13,453
Other equity investments 2,847 5,108
Other assets, net of accumulated
amortization of $4,416 and $5,640,
respectively 10,824 12,107
Total assets $ 231,896 $ 274,811
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 58,762 $ 26,332
Accrued expenses and other 31,691 25,779
Deferred revenue 9,370 7,447
Current portion - long-term debt
and other 971 600
Total current liabilities 100,794 60,158
Long-term debt and other 13,564 13,257
Convertible notes - 57,500
Total liabilities 114,358 130,915
Commitments and contingencies
Stockholders' equity:
Common stock, $0.01 par value,
90,000,000 shares authorized;
41,584,061 and 43,919,755 shares
issued as of January 1, 2005 and
July 2, 2005, respectively;
41,582,851 and 43,919,552 shares
outstanding as of January 1, 2005
and July 2, 2005, respectively 416 439
Additional paid in capital 294,495 323,811
Accumulated other comprehensive
(loss) income (104) 1,368
Accumulated deficit (177,269) (181,722)
Total stockholders' equity 117,538 143,896
Total liabilities and
stockholders' equity $ 231,896 $ 274,811
GSI COMMERCE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
---------------------------- ----------------------------
July 3, July 2, July 3, July 2,
2004 2005 2004 2005
------------ ------------ ------------ ------------
Revenues:
Net revenues from product sales $ 53,131 $ 75,158 $ 110,009 $ 151,810
Service fee revenues 11,558 16,488 20,948 31,194
Net revenues 64,689 91,646 130,957 183,004
Cost of revenues from product sales 39,564 57,046 81,072 114,672
Gross profit 25,125 34,600 49,885 68,332
Operating expenses:
Sales and marketing, exclusive
of $195, $934, $690 and $1,124
reported below as stock-based
compensation, respectively 16,787 21,288 34,236 42,199
Product development, exclusive
of ($47), $253, $2 and $223
reported below as stock-based
compensation, respectively 4,498 6,436 8,981 13,025
General and administrative,
exclusive of $5, $561, $88
and $171 reported below as
stock-based compensation,
respectively 4,375 4,519 8,295 9,744
Stock-based compensation 153 1,748 780 1,518
Depreciation and amortization 2,646 3,617 5,245 6,739
Total operating expenses 28,459 37,608 57,537 73,225
Other (income) expense:
Other (income) expense 2 (169) 3 (268)
Interest expense 54 413 54 646
Interest income (244) (475) (535) (818)
Total other (income)
expense (188) (231) (478) (440)
Net income (loss) $ (3,146) $ (2,777) $ (7,174) $ (4,453)
Earnings (loss) per share - basic
and diluted:
Net income (loss) - basic $ (0.08) $ (0.07) $ (0.18) $ (0.11)
Net income (loss) - diluted $ (0.08) $ (0.07) $ (0.18) $ (0.11)
Weighted average shares outstanding:
basic 40,991 42,551 40,930 42,106
diluted 40,991 42,551 40,930 42,106
GSI COMMERCE, INC. AND SUBSIDIARIES
ADJUSTED EBITDA AND RECONCILIATION TO GAAP RESULTS
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
---------------------------- ----------------------------
July 3, July 2, July 3, July 2,
2004 2005 2004 2005
------------ ------------ ------------ ------------
Adjusted EBITDA:
Net gain (loss) excluding
interest income and expense,
taxes and charges for stock-
based compensation and
depreciation and amortization $ (535) $ 2,526 $ (1,627) $ 3,632
Reconciliation of Adjusted EBITDA to
GAAP results:
Adjusted EBITDA $ (535) $ 2,526 $ (1,627) $ 3,632
Interest expense 54 413 54 646
Interest income (242) (475) (532) (818)
Taxes - - - -
Stock-based compensation 153 1,748 780 1,518
Depreciation and amortization 2,646 3,617 5,245 6,739
Net loss $ (3,146) $ (2,777) $ (7,174) $ (4,453)
GSI COMMERCE, INC. AND SUBSIDIARIES
MERCHANDISE SALES (1) AND RECONCILIATION TO GAAP RESULTS
(Dollars in thousands)
(Unaudited)
Three Months Ended
---------------------------- Variance
July 3, July 2, ----------------------------
2004 2005 Amount %
------------ ------------ ------------ ------------
Merchandise sales (1) - (a non-GAAP
financial measure):
Category:
Sporting goods $ 37,912 $ 51,392 $ 13,480 36%
Other 51,669 85,367 33,698 65%
Total merchandise
sales (1) - (a non-
GAAP financial
measure) $ 89,581 $ 136,759 $ 47,178 53%
Net revenues - (GAAP basis):
Net revenues from product sales:
Category:
Sporting goods $ 33,586 $ 41,899 $ 8,313 25%
Other 19,545 33,259 13,714 70%
Total net revenues
from product sales 53,131 75,158 22,027 41%
Service fee revenues 11,558 16,488 4,930 43%
Total net revenues -
(GAAP basis) $ 64,689 $ 91,646 $ 26,957 42%
Reconciliation of merchandise sales
(1) to net revenues:
Merchandise sales (1) - (a non-GAAP
financial measure):
Category:
Sporting goods $ 37,912 $ 51,392 $ 13,480 36%
Other 51,669 85,367 33,698 65%
Total merchandise
sales (1) - (a non-
GAAP financial
measure) 89,581 136,759 47,178 53%
Less:
Sales by partners (2):
Category:
Sporting goods (4,326) (9,493) (5,167) 119%
Other (32,124) (52,108) (19,984) 62%
Total sales by
partners (2) (36,450) (61,601) (25,151) 69%
Add:
Service fee revenues 11,558 16,488 4,930 43%
Net revenues - (GAAP basis) $ 64,689 $ 91,646 $ 26,957 42%
(1) Merchandise sales represents the retail value of all sales transactions,
inclusive of freight charges and net of allowances for returns and
discounts, which flow through the GSI Commerce platform, whether or not GSI
Commerce is the seller of the merchandise or records the full amount of
such sales on its financial statements.
(2) Represents the retail value of all product sales through the GSI Commerce
platform where the inventory is owned by the partner and the partner is the
seller of the merchandise. GSI Commerce records service fee revenues on
these sales.
GSI COMMERCE, INC. AND SUBSIDIARIES
MERCHANDISE SALES (1) AND RECONCILIATION TO GAAP RESULTS
(Dollars in thousands)
(Unaudited)
Six Months Ended
---------------------------- Variance
July 3, July 2, ----------------------------
2004 2005 Amount %
------------ ------------ ------------ ------------
Merchandise sales (1) - (a non-GAAP
financial measure):
Category:
Sporting goods $ 72,998 $ 98,889 $ 25,891 35%
Other 102,470 174,112 71,642 70%
Total merchandise sales
(1) - (a non-GAAP
financial measure) $ 175,468 $ 273,001 $ 97,533 56%
Net revenues - (GAAP basis):
Net revenues from product sales:
Category:
Sporting goods $ 67,124 $ 81,686 $ 14,562 22%
Other 42,885 70,124 27,239 64%
Total net revenues from
product sales 110,009 151,810 41,801 38%
Service fee revenues 20,948 31,194 10,246 49%
Total net revenues -
(GAAP basis) $ 130,957 $ 183,004 $ 52,047 40%
Reconciliation of merchandise sales (1)
to net revenues:
Merchandise sales (1) - (a non-GAAP
financial measure):
Category:
Sporting goods $ 72,998 $ 98,889 $ 25,891 35%
Other 102,470 174,112 71,642 70%
Total merchandise sales
(1) - (a non-GAAP
financial measure) 175,468 273,001 97,533 56%
Less:
Sales by partners (2):
Category:
Sporting goods (5,874) (17,203) (11,329) 193%
Other (59,585) (103,988) (44,403) 75%
Total sales by
partners (2) (65,459) (121,191) (55,732) 85%
Add:
Service fee revenues 20,948 31,194 10,246 49%
Net revenues - (GAAP
basis) $ 130,957 $ 183,004 $ 52,047 40%
(1) Merchandise sales represents the retail value of all sales transactions,
inclusive of freight charges and net of allowances for returns and
discounts, which flow through the GSI Commerce platform, whether or not GSI
Commerce is the seller of the merchandise or records the full amount of
such sales on its financial statements.
(2) Represents the retail value of all product sales through the GSI Commerce
platform where the inventory is owned by the partner and the partner is the
seller of the merchandise. GSI Commerce records service fee revenues on
these sales.
Contacts:
Michael Conn Greg Ryan
Senior Vice President, Corp. Development Director, Corp. Communications
tel: 610-491-7002 tel: 610-491-7294
e-mail: connm@gsicommerce.com e-mail: ryang@gsicommerce.com
SOURCE GSI Commerce Inc.
-0- 07/27/2005
/CONTACT: Michael Conn, Senior Vice President, Corp. Development,
+1-610-491-7002 or connm@gsicommerce.com, or Greg Ryan, Director, Corp.
Communications, +1-610-491-7294 or ryang@gsicommerce.com, both of GSI
Commerce/
/Web site: http://www.gsicommerce.com/