PFSweb, Inc. (Nasdaq: PFSW), an international business process
outsourcing provider of end-to-end web commerce solutions and an
online discount retailer, today announced its financial results for
the first quarter ended March 31, 2008. Summary of consolidated
results for the first quarter ended March 31, 2008: -- Total
reported revenue was $118.5 million, compared to $104.4 million for
the first quarter of 2007; � -- Service fee revenues increased 23%
and eCOST.com revenue increased 29% compared to the same period in
the prior year; � -- Adjusted EBITDA (as defined) was $2.8 million
versus $0.8 million for the same period in the prior year; � -- Net
income, calculated in accordance with U.S. generally accepted
accounting principles (GAAP), was $0.4 million or $0.01 per basic
and diluted share, compared to a net loss of $2.4 million, or $0.05
per basic and diluted share, for the first quarter of 2007; � --
Non-GAAP net income (as defined) was $0.8 million or $0.02 per
basic and diluted share, compared to a non-GAAP net loss of $1.9
million, or $0.04 per basic and diluted share, for the first
quarter of 2007; � -- Merchandise sales (as defined) totaled
approximately $777 million for the first quarter of 2008 versus
approximately $650 million for the same period in the prior year,
an increase of 20%; � -- Total cash, cash equivalents and
restricted cash remains solid and equaled $17.9 million as of March
31, 2008. Mark Layton, Chairman and Chief Executive Officer of
PFSweb, stated, �During the first quarter of 2008, we experienced
measurable growth across each of our businesses year-over-year. We
believe that having a strong roster of clients and customers in
multiple industries has helped us achieve this growth despite
weaker macroeconomic conditions in the U.S. In addition, this
quarter represents the fourth consecutive quarter of profitability.
These results are a testament to the sustained momentum that we
have built over the last 12 months.� Summary of results by
business: Service Fee Business: For the first quarter of 2008,
Service Fee revenue increased 23% to $20.8 million, compared with
$17.0 million for the same period in 2007. The Service Fee business
reported Adjusted EBITDA of $1.6 million for the first quarter of
2008, compared to $0.3 million for the same period in the prior
year period. Mike Willoughby, President of PFSweb�s Services
Division, commented, �The growth in our Service Fee business
reflects revenue from several new clients that were signed over the
past 18 months and are now fully implemented. We also benefited
from incremental project work and a modified contract arrangement
with one of our largest service fee clients. We continue to be
excited about our growth opportunities in this business. In
addition to winning the new contract announced earlier today with
an iconic brand name company, we maintain a robust pipeline of
pending proposals currently valued based on client projections at
approximately $35 million.� Supplies Distributors Business: For the
first quarter of 2008, Supplies Distributors revenue was $62.3
million, compared to $58.8 million for the same period in the prior
year. Adjusted EBITDA was $1.7 million for the first quarter of
2008, compared to $1.4 million for the same period in the prior
year. Mr. Willoughby continued, �Our Supplies Distributors business
experienced a 6 percent increase in revenue for the quarter. This
business continues to contribute steady Adjusted EBITDA and net
income performance. In mid 2007, the core client that is supported
by the Supplies Distributors business was merged into a joint
venture. Since this time we have worked closely with the client�s
management team and continue to support this successful, long-term
relationship.� eCOST.com Business: For the first quarter of 2008,
eCOST.com revenue increased 29% to $28.0 million, compared to $21.6
million in the same quarter of 2007. Adjusted EBITDA for eCOST.com
in the quarter was a loss of $0.5 million, a significant
improvement as compared to a loss of $0.9 million in the same
quarter of 2007. Mr. Layton continued, �We are pleased with the 29%
increase in revenue that eCOST.com reported for the first quarter.
In April 2008, we fully launched at eCOST.com the �For the Home�
and �Sports and Leisure� stores. Our growth strategy, for both
revenue and gross profit percentage expansion, includes the
broadening of our product offering targeted to widen our customer
reach and to improve our gross margin mix. The addition of more
than 60,000 new products in these two new stores is a solid step
forward in implementing this strategy. eCOST.com also recently
launched a significant site feature and functionality upgrade, the
3rd such major upgrade since early 2006, that is designed to
further improve ease of use, navigation capabilities and cross sell
and up-sell capabilities. Reverse Split PFSweb announced that its
Board of Directors approved a reverse split of the issued and
outstanding shares of the Company�s common stock. The reverse split
will consist of a 1-for-4.7 reverse split of the common stock and
will be effective as of June 2, 2008. PFSweb stockholders approved
a reverse stock split up to 1-for-6 at the Company�s 2007 Annual
Meeting of Stockholders. �Given the continued underperformance of
our shares relative to our business performance, the Board of
Directors authorized a 1-for 4.7 reverse stock split at its last
meeting. This decision came only after careful deliberation and
consideration of the potential risks and rewards of this course of
action. By overcoming the challenges associated with trading below
$1�through a reverse stock split, the Board believes that�the
Company will have a better chance to properly reflect the value
that has been built into the business over the last 12-18
months,��concluded Mr. Layton. Significant operating events for
first quarter of 2008 year-to-date: Service Fee Business signed two
new clients totaling $8 to $10 million in annualized service fee
revenue, based on client projections once fully implemented. This
includes the previously reported new contract with The Discovery
Channel Store, Inc., as well as a new contract with an iconic brand
retailer scheduled to be implemented in the first quarter of 2009.
Service Fee Business signed extensions with two large brand name
clients with an aggregate value of both deals estimated to be
approximately $18 million, based on current client projections,
over the terms of the agreements. eCOST.com added 60,000 products
from many leading brands in �For the Home� and �Sports and Leisure�
categories via a Virtual Warehouse (�VW�) relationship. eCOST.com
integrated PayPal Express Checkout to provide customers an
additional alternative payment option. PFSweb completed the
renewals, extensions or amendments on certain of its asset-based
financing facilities for its Service Fee and Supplies Distributors
business segments with terms that are generally similar to or
improved from prior agreements. In February 2008 PFSweb and
Demandware launched a next-generation solution for end-to-end
eCommerce. Competitively, we believe that this combination provides
one of the most compelling single source eCommerce outsourcing
solutions available in the industry. This strategically important
partnership collectively empowers online retailers and brands with
total control over their entire shopping experience and a
continuous competitive differentiation. Financial Guidance for
Fiscal Year 2008 PFSweb is currently targeting total consolidated
revenues, excluding pass-through revenues, of approximately $445
million to $475 million and consolidated Adjusted EBITDA of $10 �
$12 million for calendar year 2008. Non-GAAP net income, which
excludes the impact of stock-based compensation and amortization of
identifiable intangible assets, is targeted to be approximately $1
- $3 million for 2008. Conference Call Information Management will
host a conference call at 3:30 p.m. Central Time (4:30 p.m. Eastern
Time) on May 13, 2008 to discuss the latest corporate developments
and results. To listen to the call, please dial (888) 694-4728 and
enter the pin number (43871715) at least five minutes before the
scheduled start time. Investors can also access the call in a
�listen only� mode via the Internet at the Company�s website,
www.pfsweb.com. Please allow extra time prior to the call to visit
the site and download any necessary audio software. A digital
replay of the conference call will be available through June 13,
2008 at (800) 642-1687, pin number (43871715). The replay also will
be available at the Company�s website for a limited time. Non-GAAP
Financial Measures This news release contains the non-GAAP measures
non-GAAP net income (loss), Earnings Before Interest, Income Taxes,
Depreciation and Amortization (�EBITDA�), and Adjusted EBITDA.
Non-GAAP net income represents net income calculated in accordance
with U.S. GAAP as adjusted for the impact of non-cash stock-based
compensation expense and amortization of identifiable intangible
assets. EBITDA represents earnings (or losses) before interest,
income taxes, depreciation, and amortization. Adjusted EBITDA
further eliminates the effect of stock-based compensation and
merger integration related expenses. Non-GAAP net income, EBITDA
and Adjusted EBITDA are used by management, analysts, investors and
other interested parties in evaluating our operating performance
compared to that of other companies in our industry, as the
calculation of non-GAAP net income eliminates the effect of
stock-based compensation and amortization of intangible assets and
EBITDA and Adjusted EBITDA further eliminates the effect of
financing, income taxes, the accounting effects of capital spending
and certain other merger related expenses, which items may vary
from different companies for reasons unrelated to overall operating
performance. PFSweb believes these non-GAAP measures provide useful
information to both management and investors by excluding certain
expenses that may not be indicative of its core operating results.
These measures should be considered in addition to results prepared
in accordance with GAAP, but should not be considered a substitute
for, or superior to, GAAP results. These non-GAAP measures included
in this press release have been reconciled to the GAAP results in
the attached tables. Merchandise Sales Merchandise sales represent
the estimated value of all fulfillment activity that flows through
PFSweb including whether or not PFSweb is the seller of the
merchandise or records the full amount of such sales on its
financial statements, excluding service fee revenues that PFSweb
might recognize for the underlying sales transactions. PFSweb uses
merchandise sales as an operating metric to allow investors to gain
a more thorough understanding of its business and business volume,
in addition to GAAP net revenue. About PFSweb, Inc. PFSweb develops
and deploys integrated business infrastructure solutions and
fulfillment services for Fortune 1000, Global 2000 and brand name
companies, including third party logistics, call center support and
e-commerce services. The company serves a multitude of industries
and company types, including such clients as LEGO, Riverbed,
CHiA�SSO, MARS Drinks North America, Hewlett-Packard, International
Business Machines, Hawker Beechcraft Corp., Rene Furterer USA,
Roots Canada Ltd. and Xerox. Through its wholly owned eCOST.com
subsidiary, PFSweb also serves as a leading multi-category online
discount retailer of high-quality new, "close-out" and manufacturer
recertified brand-name merchandise for consumers and small to
medium size business buyers. Through its website, www.ecost.com,
and its catalog, eCOST.com sells approximately 170,000 different
products from leading manufacturers such as Sony, JVC, Canon,
Hewlett-Packard, Garmin, Panasonic, Toshiba, Microsoft, Kitchen
Aid, Panasonic, Black & Decker, Cuisinart, Coleman, Wilson and
Nike. To find out more about PFSweb, Inc. (NASDAQ: PFSW), visit the
company's websites at http://www.pfsweb.com and
http://www.ecost.com. The matters discussed herein consist of
forward-looking information under the Private Securities Litigation
Reform Act of 1995 and is subject to and involves risks and
uncertainties, which could cause actual results to differ
materially from the forward-looking information. PFSweb's Annual
Report on Form 10-K for the year ended December 31, 2007 identifies
certain factors that could cause actual results to differ
materially from those projected in any forward looking statements
made and investors are advised to review the Annual Report and the
Risk Factors described therein. These factors include: our ability
to retain and expand relationships with existing clients and
attract and implement new clients; our reliance on the fees
generated by the transaction volume or product sales of our
clients; our reliance on our clients' projections or transaction
volume or product sales; our dependence upon our agreements with
IBM and Infoprint Solutions; our dependence upon our agreements
with our major clients; our client mix, their business volumes and
the seasonality of their business; our ability to finalize pending
contracts; the impact of strategic alliances and acquisitions;
trends in the e-commerce, outsourcing, government regulation both
foreign and domestic and the market for our services; whether we
can continue and manage growth; increased competition; our ability
to generate more revenue and achieve sustainable profitability;
effects of changes in profit margins; the customer and supplier
concentration of our business; the unknown effects of possible
system failures and rapid changes in technology; foreign currency
risks and other risks of operating in foreign countries; potential
litigation; potential delisting; the impact of our planned reverse
stock split; our dependency on key personnel; the impact of new
accounting standards and changes in existing accounting rules or
the interpretations of those rules; our ability to raise additional
capital or obtain additional financing; our ability and the ability
of our subsidiaries to borrow under current financing arrangements
and maintain compliance with debt covenants; relationship with and
our guarantees of certain of the liabilities and indebtedness of
our subsidiaries; our ability to successfully the anticipated
benefits of the merger: eCOST's potential indemnification
obligations to its former parent; eCOST's ability to maintain
existing and build new relationships with manufacturers and vendors
and the success of its advertising and marketing efforts; eCOST's
ability to increase its sales revenue and sales margin and improve
operating efficiencies and eCOST�s ability to generate a profit and
cash flows sufficient to cover the values of its intangible assets.
PFSweb undertakes no obligation to update publicly any
forward-looking statement for any reason, even if new information
becomes available or other events occur in the future. There may be
additional risks that we do not currently view as material or that
are not presently known. (Tables Follow) � � PFSweb, Inc. and
Subsidiaries Unaudited Condensed Consolidated Statements of
Operations (A) (In Thousands, Except Per Share Data) � Three Months
Ended March 31, 2008 2007 REVENUES: Product revenue, net $ 90,291 $
80,457 Service fee revenue 20,812 16,962 Pass-thru revenue � 7,366
� 6,988 � Total revenues � 118,469 � 104,407 � � COSTS OF REVENUES:
Cost of product revenue 83,979 74,771 Cost of service fee revenue
13,844 12,664 Cost of pass-thru revenue � 7,366 � 6,988 � Total
costs of revenues � 105,189 � 94,423 � Gross profit � 13,280 �
9,984 � SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 12,094 11,201
MERGER INTEGRATION EXPENSE - 150 AMORTIZATION OF IDENTIFIABLE
INTANGIBLES � 202 � 204 � Total operating expenses � 12,296 �
11,555 � Income (loss) from operations 984 (1,571 ) INTEREST
EXPENSE, NET � 330 � 584 � Income (loss) before income taxes 654
(2,155 ) INCOME TAX PROVISION � 240 � 206 � NET INCOME (LOSS) $ 414
$ (2,361 ) NON-GAAP NET INCOME (LOSS) $ 817 $ (1,948 ) � NET INCOME
(LOSS) PER SHARE: Basic $ 0.01 $ (0.05 ) Diluted $ 0.01 $ (0.05 ) �
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: Basic � 46,492 �
46,475 � Diluted � 47,199 � 46,475 � � EBITDA $ 2,565 $ 423 �
ADJUSTED EBITDA $ 2,766 $ 782 � � (A) The financial data above
should be read in conjunction with the audited consolidated
financial statements of PFSweb, Inc. included in its Form 10-K for
the year ended December 31, 2007. PFSweb, Inc. and Subsidiaries
Reconciliation of certain Non-GAAP Items to GAAP (In Thousands,
Except Per Share Data) � � Three Months Ended March 31, 2008 2007
NET INCOME (LOSS) $ 414 $ (2,361 ) Income tax expense 240 206
Interest expense 330 584 Depreciation and amortization � 1,581 �
1,994 � EBITDA $ 2,565 $ 423 Stock-based compensation 201 209
Merger integration related expenses � - � 150 � ADJUSTED EBITDA $
2,766 $ 782 � � � Three Months Ended March 31, � 2008 � 2007 � �
NET INCOME (LOSS) $ 414 $ (2,361 ) Stock-based compensation 201 209
Amortization of identifiable intangible assets � 202 � 204 �
NON-GAAP NET INCOME (LOSS) $ 817 $ (1,948 ) � NET INCOME (LOSS) PER
SHARE: Basic $ 0.01 $ (0.05 ) Diluted $ 0.01 $ (0.05 ) � NON-GAAP
NET INCOME (LOSS) Per Share: Basic $ 0.02 $ (0.04 ) Diluted $ 0.02
$ (0.04 ) PFSweb, Inc. and Subsidiaries Unaudited Condensed
Consolidated Balance Sheets (In Thousands, Except Share Data) � � �
March 31, December 31, 2008 2007 ASSETS CURRENT ASSETS: Cash and
cash equivalents $ 13,721 $ 14,272 Restricted cash 4,166 2,021
Accounts receivable, net of allowance for doubtful accounts of
$1,205 and $1,483 at March 31, 2008 and December 31, 2007,
respectively 43,666 48,493 Inventories, net of reserves of $2,278
and $2,080 at March 31, 2008 and December 31, 2007, respectively
50,539 46,392 Other receivables 14,901 10,372 Prepaid expenses and
other current assets � 3,356 � � 2,608 � Total current assets �
130,349 � � 124,158 � � PROPERTY AND EQUIPMENT, net 11,412 11,918
IDENTIFIABLE INTANGIBLES 5,623 5,824 GOODWILL 15,362 15,362 OTHER
ASSETS � 845 � � 911 � Total assets � 163,591 � � 158,173 � �
LIABILITIES AND SHAREHOLDERS EQUITY CURRENT LIABILITIES: Current
portion of long-term debt and capital lease obligations $ 13,683 $
22,238 Trade accounts payable 72,560 56,975 Accrued expenses �
20,727 � � 22,438 � Total current liabilities � 106,970 � � 101,651
� � LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current
portion 5,313 6,378 OTHER LIABILITIES � 1,167 � � 1,302 � Total
liabilities � 113,450 � � 109,331 � � � COMMITMENTS AND
CONTINGENCIES � SHAREHOLDERS' EQUITY: Preferred stock, $1.00 par
value; 1,000,000 shares authorized; none issued and outstanding - -
Common stock, $.001 par value; 75,000,000 shares authorized;
46,579,564 and 46,574,189 shares issued at March 31, 2008 and
December 31, 2007, respectively; and 46,493,264 and 46,487,889
outstanding as of March 31, 2008 and December 31, 2007,
respectively 47 47 Additional paid-in capital 92,292 92,084
Accumulated deficit (45,324 ) (45,738 ) Accumulated other
comprehensive income 3,211 2,534 Treasury stock at cost, 86,300
shares � (85 ) � (85 ) Total shareholders' equity � 50,141 � �
48,842 � Total liabilities and shareholders' equity $ 163,591 � $
158,173 � PFSweb, Inc. and Subsidiaries Unaudited Consolidating
Statements of Operations For the Three Months Ended March 31, 2008
(In Thousands) � � � Supplies � � � � PFSweb Distributors eCOST
Eliminations Consolidated REVENUES: Product revenue, net $ - $
62,322 $ 27,969 $ - $ 90,291 Service fee revenue 20,812 - - -
20,812 Service fee revenue - affiliate 2,151 - - (2,151 ) -
Pass-thru revenue � 7,366 � � - � - � � - � � 7,366 Total revenues
� 30,329 � � 62,322 � 27,969 � � (2,151 ) � 118,469 � COSTS OF
REVENUES: Cost of product revenue - 58,252 25,727 - 83,979 Cost of
service fee revenue 14,551 - - (707 ) 13,844 Cost of pass-thru
revenue � 7,366 � � - � - � � - � � 7,366 Total costs of revenues �
21,917 � � 58,252 � 25,727 � � (707 ) � 105,189 Gross profit �
8,412 � � 4,070 � 2,242 � � (1,444 ) � 13,280 SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 8,313 2,418 2,807 (1,444 ) 12,094
AMORTIZATION OF IDENTIFIABLE INTANGIBLES � - � � - � 202 � � - � �
202 Total operating expenses � 8,313 � � 2,418 � 3,009 � � (1,444 )
� 12,296 Income (loss) from operations 99 1,652 (767 ) - 984
INTEREST EXPENSE (INCOME), NET � (60 ) � 389 � 1 � � - � � 330
Income (loss) before income taxes 159 1,263 (768 ) - 654 INCOME TAX
PROVISION (BENEFIT) � (195 ) � 435 � - � � - � � 240 NET INCOME
(LOSS) $ 354 � $ 828 $ (768 ) $ - � $ 414 NON-GAAP NET INCOME
(LOSS) $ 555 � $ 828 $ (566 ) $ - � $ 817 � � EBITDA $ 1,434 � $
1,656 $ (525 ) $ - � $ 2,565 ADJUSTED EBITDA $ 1,635 � $ 1,656 $
(525 ) $ - � $ 2,766 � � A reconciliation of NET INCOME (LOSS) to
EBITDA and ADJUSTED EBITDA follows: � NET INCOME (LOSS) $ 354 $ 828
$ (768 ) $ - $ 414 Income tax expense (benefit) (195 ) 435 - - 240
Interest expense (income) (60 ) 389 1 - 330 Depreciation and
amortization � 1,335 � � 4 � 242 � � - � � 1,581 EBITDA $ 1,434 $
1,656 $ (525 ) $ - $ 2,565 Stock-based compensation � 201 � � - � -
� � - � � 201 ADJUSTED EBITDA $ 1,635 � $ 1,656 $ (525 ) $ - � $
2,766 � A reconciliation of NET INCOME(LOSS) to NON-GAAP NET INCOME
(LOSS) follows: � NET INCOME (LOSS) $ 354 $ 828 $ (768 ) $ - $ 414
Stock-based compensation 201 - - - 201 Amortization of intangible
assets � - � � - � 202 � � - � � 202 NON-GAAP NET INCOME (LOSS) $
555 � $ 828 $ (566 ) $ - � $ 817 PFSweb, Inc. and Subsidiaries
Unaudited Condensed Consolidating Balance Sheets as of March 31,
2008 (In Thousands) � � � Supplies � � � � PFSweb Distributors �
eCOST Eliminations Consolidated ASSETS CURRENT ASSETS: Cash and
cash equivalents $ 11,085 $ 2,580 $ 56 $ - $ 13,721 Restricted cash
1,575 1,643 948 - 4,166 Accounts receivable, net 19,235 22,289
2,407 (265 ) 43,666 Inventories, net - 43,010 7,529 - 50,539 Other
receivables 14 14,887 - - 14,901 Prepaid expenses and other current
assets � 1,626 � � 1,514 � 216 � � - � � 3,356 � Total current
assets � 33,535 � � 85,923 � 11,156 � � (265 ) � 130,349 � �
PROPERTY AND EQUIPMENT, net 11,024 25 363 - 11,412 NOTES RECEIVABLE
FROM AFFILIATES 18,645 - - (18,645 ) - INVESTMENT IN AFFILIATES
39,746 - - (39,746 ) - IDENTIFIABLE INTANGIBLES - - 5,623 - 5,623
GOODWILL - - 15,362 - 15,362 OTHER ASSETS � 710 � � - � 135 � � - �
� 845 � Total assets � 103,660 � � 85,948 � 32,639 � � (58,656 ) �
163,591 � � LIABILITIES AND SHAREHOLDERS EQUITY CURRENT
LIABILITIES: Current portion of long-term debt and capital lease
obligations $ 5,034 $ 8,649 $ - $ - $ 13,683 Trade accounts payable
12,092 52,157 8,576 (265 ) 72,560 Accrued expenses � 10,134 � �
7,745 � 2,848 � � - � � 20,727 � Total current liabilities � 27,260
� � 68,551 � 11,424 � � (265 ) � 106,970 � � LONG-TERM DEBT AND
CAPITAL LEASE OBLIGATIONS, less current portion 5,313 - - - 5,313
NOTES PAYABLE TO AFFILIATES - 5,505 13,140 (18,645 ) - OTHER
LIABILITIES � 898 � � - � 269 � � - � � 1,167 � Total liabilities �
33,471 � � 74,056 � 24,833 � � (18,910 ) � 113,450 � � COMMITMENTS
AND CONTINGENCIES � SHAREHOLDERS' EQUITY: Common stock 47 - 19 (19
) 47 Capital contributions - 1,000 - (1,000 ) - Additional paid-in
capital 92,292 - 28,059 (28,059 ) 92,292 Retained earnings
(accumulated deficit) (25,102 ) 7,429 (20,272 ) (7,379 ) (45,324 )
Accumulated other comprehensive income 3,037 3,463 - (3,289 ) 3,211
Treasury stock � (85 ) � - � - � � - � � (85 ) Total shareholders'
equity � 70,189 � � 11,892 � 7,806 � � (39,746 ) � 50,141 � Total
liabilities and shareholders' equity $ 103,660 � $ 85,948 $ 32,639
� $ (58,656 ) $ 163,591 � PFSweb, Inc. and Subsidiaries Unaudited
Consolidating Statements of Operations For the Three Months Ended
March 31, 2007 (In Thousands) � � � Supplies � � � PFSweb
Distributors eCOST Eliminations Consolidated REVENUES: Product
revenue, net $ - $ 58,810 $ 21,647 $ - $ 80,457 Service fee revenue
16,962 - - - 16,962 Service fee revenue - affiliate 2,026 - -
(2,026 ) - Pass-thru revenue � 7,096 � � - � - � � (108 ) � 6,988 �
Total revenues � 26,084 � � 58,810 � 21,647 � � (2,134 ) � 104,407
� � COSTS OF REVENUES: Cost of product revenue - 54,940 19,834 (3 )
74,771 Cost of service fee revenue 13,303 - - (639 ) 12,664 Cost of
pass-thru revenue � 7,096 � � - � - � � (108 ) � 6,988 � Total
costs of revenues � 20,399 � � 54,940 � 19,834 � � (750 ) � 94,423
� Gross profit � 5,685 � � 3,870 � 1,813 � � (1,384 ) � 9,984 �
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 7,297 2,503 2,785
(1,384 ) 11,201 MERGER INTEGRATION EXPENSE - - 150 - 150
AMORTIZATION OF IDENTIFIABLE INTANGIBLES � - � � - � 204 � � - � �
204 � Total operating expenses � 7,297 � � 2,503 � 3,139 � � (1,384
) � 11,555 � Income (loss) from operations (1,612 ) 1,367 (1,326 )
- (1,571 ) INTEREST EXPENSE (INCOME), NET � 37 � � 563 � (16 ) � -
� � 584 � Income (loss) before income taxes (1,649 ) 804 (1,310 ) -
(2,155 ) INCOME TAX PROVISION (BENEFIT) � (144 ) � 350 � - � � - �
� 206 � NET INCOME (LOSS) $ (1,505 ) $ 454 $ (1,310 ) $ - � $
(2,361 ) NON-GAAP NET INCOME (LOSS) $ (1,296 ) $ 454 $ (1,106 ) $ -
� $ (1,948 ) � EBITDA $ 133 � $ 1,371 $ (1,081 ) $ - � $ 423 �
ADJUSTED EBITDA $ 342 � $ 1,371 $ (931 ) $ - � $ 782 � � � A
reconciliation of NET INCOME (LOSS) to EBITDA and ADJUSTED EBITDA
follows: � NET INCOME (LOSS) $ (1,505 ) $ 454 $ (1,310 ) $ - $
(2,361 ) Income tax expense (benefit) (144 ) 350 - - 206 Interest
expense (income) 37 563 (16 ) - 584 Depreciation and amortization �
1,745 � � 4 � 245 � � - � � 1,994 � EBITDA $ 133 $ 1,371 $ (1,081 )
$ - $ 423 Stock-based compensation 209 - - - 209 Merger integration
expense � - � � - � 150 � � - � � 150 � ADJUSTED EBITDA $ 342 � $
1,371 $ (931 ) $ - � $ 782 � � A reconciliation of NET INCOME
(LOSS) to NON-GAAP NET INCOME (LOSS) follows: � NET INCOME (LOSS) $
(1,505 ) $ 454 $ (1,310 ) $ - $ (2,361 ) Stock-based compensation
209 - - - 209 Amortization of intangible assets � - � � - � 204 � �
- � � 204 � NON-GAAP NET INCOME (LOSS) $ (1,296 ) $ 454 $ (1,106 )
$ - � $ (1,948 ) PFSweb, Inc. and Subsidiaries Unaudited Condensed
Consolidating Balance Sheets as of December 31, 2007 (In Thousands)
� � � Supplies � � � PFSweb Distributors � eCOST Eliminations
Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $
10,835 $ 1,757 $ 1,680 $ - $ 14,272 Restricted cash 50 1,464 507 -
2,021 Accounts receivable, net 21,366 25,126 2,585 (584 ) 48,493
Inventories, net - 39,596 6,796 - 46,392 Other receivables 211
10,161 - - 10,372 Prepaid expenses and other current assets � 923 �
� 1,321 � 364 � � - � � 2,608 � Total current assets � 33,385 � �
79,425 � 11,932 � � (584 ) � 124,158 � � PROPERTY AND EQUIPMENT,
net 11,549 21 348 - 11,918 NOTES RECEIVABLE FROM AFFILIATES 18,645
- - (18,645 ) - INVESTMENT IN AFFILIATES 38,609 - - (38,609 ) -
IDENTIFIABLE INTANGIBLES - - 5,824 - 5,824 GOODWILL - - 15,362 -
15,362 OTHER ASSETS � 762 � � - � 149 � � - � � 911 � Total assets
� 102,950 � � 79,446 � 33,615 � � (57,838 ) � 158,173 � �
LIABILITIES AND SHAREHOLDERS EQUITY CURRENT LIABILITIES: Current
portion of long-term debt and capital lease obligations $ 10,063 $
12,175 $ - $ - $ 22,238 Trade accounts payable 5,615 43,265 8,679
(584 ) 56,975 Accrued expenses � 11,604 � � 7,416 � 3,418 � � - � �
22,438 � Total current liabilities � 27,282 � � 62,856 � 12,097 � �
(584 ) � 101,651 � � LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS,
less current portion 6,378 - - - 6,378 NOTES PAYABLE TO AFFILIATES
- 6,005 12,640 (18,645 ) - OTHER LIABILITIES � 998 � � - � 304 � �
- � � 1,302 � Total liabilities � 34,658 � � 68,861 � 25,041 � �
(19,229 ) � 109,331 � � COMMITMENTS AND CONTINGENCIES �
SHAREHOLDERS' EQUITY: Common stock 47 - 19 (19 ) 47 Capital
contributions - 1,000 - (1,000 ) - Additional paid-in capital
92,084 - 28,059 (28,059 ) 92,084 Retained earnings (accumulated
deficit) (26,288 ) 6,601 (19,504 ) (6,547 ) (45,738 ) Accumulated
other comprehensive income 2,534 2,984 - (2,984 ) 2,534 Treasury
stock � (85 ) � - � - � � - � � (85 ) Total shareholders' equity �
68,292 � � 10,585 � 8,574 � � (38,609 ) � 48,842 � Total
liabilities and shareholders' equity $ 102,950 � $ 79,446 $ 33,615
� $ (57,838 ) $ 158,173 � eCOST.com, Inc. Selected Operating Data �
Three Months Ended March 31, 2008 2007 � Total Customers (1)
1,775,636 1,668,882 � Active Customers (2) 164,416 167,148 � New
Customers (3) 22,939 27,735 � Number of Orders (4) 61,432 66,000 �
Average Order Value (5) $ 450 $ 326 � Advertising Expense (6) $
189,676 $ 302,915 � Cost to Acquire a New Customer (7) $ 7.10 $
10.50 � � (1) Total customers have been calculated as the
cumulative number of customers for which orders have been taken
from eCOST.com's inception to the end of the reported period. � (2)
Active customers consist of the approximate number of customers who
placed orders during the 12 months prior to the end of the reported
period. � (3) New Customers represent the number of persons that
established a new account and placed an order during the reported
period. � (4) Number of orders represents the total number of
orders shipped during the reported period (not reflecting returns).
� (5) Average order value has been calculated as gross sales
divided by the total number of orders during the period presented.
The impact of returns is not reflected in average order value. �
(6) Advertising expense includes the total dollars spent on
advertising during the reported period, including internet, direct
mail, print and e-mail advertising, as well as customer list
enhancement services. � (7) Catalog expense of $26,771 and $11,574
was not included in the 2008 and 2007 calculation, respectively as
it is used for retention and not acquisition.
Pfsweb (NASDAQ:PFSW)
Historical Stock Chart
From Aug 2024 to Sep 2024
Pfsweb (NASDAQ:PFSW)
Historical Stock Chart
From Sep 2023 to Sep 2024