GSI Commerce, Inc. reported that net revenue for its third fiscal quarter ended September 27, 2003 was $47.5 million in the third quarter of fiscal 2003, compared with net revenue of $32.3 million in the third quarter of
fiscal 2002, an increase of 46.9%.
The net loss was $5.5 million in the third quarter of fiscal 2003, compared with net loss of $8.6 million in the third quarter of fiscal 2002. Net loss per share was $0.14 in the third quarter of fiscal 2003, compared with net loss per share of $0.22 in the third quarter of fiscal 2002.
EBITDA loss was $2.0 million in the third quarter of fiscal 2003, compared to EBITDA loss of $5.9 million in the third quarter of fiscal 2002. EBITDA represents earnings (or loss) before interest income/expense, taxes, depreciation and amortization and stock-based compensation.
“GSI Commerce continued its trend of strong performance in the third quarter of 2003, with excellent sales growth and reductions in EBITDA loss and net loss compared to the prior year period. Our year to date results demonstrate solid execution and a growing market opportunity. We are reiterating our previously issued fourth quarter
guidance and continue to expect to achieve EBITDA and GAAP
profitability in fiscal 2004,” said Michael Rubin, Chairman and CEO of GSI Commerce.
Net merchandise sales increased 51% over the prior year quarter, including a 49% increase in sporting goods, a 98% decrease attributable to the Ashford.com business, which GSI Commerce sold in December 2002, and a 108% increase in other categories.
Sales and marketing, product development and general and administrative expenses, collectively, increased 1.8% over the prior year quarter, and declined, collectively, to 39.4% of net revenue from 56.9% of net revenue.
Inventory declined to $22.4 million from $32.4 million a year ago.
The company expects full-year fiscal 2003 net revenue to be in the range of $228-$234 million with net merchandise sales is expected to be in the range of $269-$275 million.
The company's net loss is expected to be in the range of $12-$14 million and the EBITDA loss is expected to be in the range of $0-$2.0 million.
For the fourth quarter, net revenue is expected to be in the range of $82-$88 million and net merchandise sales is expected to be in the range of $107-$113 million. Net income is expected to be in the range of $1.5-$3.0 million and EBITDA is expected to be in the range of $4.5-$6 million.
GSI COMMERCE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
Sept. 28, Sept. 27, Sept. 28, Sept. 27,
2002 2003 2002 2003
-------- -------- -------- --------
Revenues:
Net revenues from product
sales $27,778 $42,521 $85,721 $132,416
Service fee revenues 4,545 4,962 11,596 14,294
-------- -------- -------- --------
Net revenues 32,323 47,483 97,317 146,710
Cost of revenues from
product sales 20,257 30,778 61,011 95,938
-------- -------- -------- --------
Gross profit 12,066 16,705 36,306 50,772
-------- -------- -------- --------
Operating expenses:
Sales and marketing,
exclusive of $154,
$419, $155 and $927
reported below as
stock-based
compensation,
respectively 11,362 11,789 30,297 35,335
Product development,
exclusive of $0, $38,
$(44) and $38 reported
below as stock-based
compensation,
respectively 3,317 3,860 8,720 11,553
General and
administrative,
exclusive of $27, $171,
$(148) and $355
reported below as
stock-based
compensation,
respectively 3,708 3,078 10,757 9,713
Restructuring costs
related to Ashford - 19 - 19
Gain on sale of Ashford
assets (379) - (379) -
Stock-based compensation 181 628 (37) 1,320
Depreciation and
amortization 2,585 3,119 6,692 8,551
-------- -------- -------- --------
Total operating expenses 20,774 22,493 56,050 66,491
-------- -------- -------- --------
Other (income) expense:
Interest expense 127 - 389 -
Interest income (270) (243) (1,096) (914)
-------- -------- -------- --------
Total other (income)
expense (143) (243) (707) (914)
-------- -------- -------- --------
Net loss $(8,565) $(5,545) $(19,037) $(14,805)
======== ======== ======== ========
Losses per share - basic
and diluted:
Net loss $(0.22) $(0.14) $(0.49) $(0.38)
