GSI Commerce, Inc. reported net revenues for the fourth quarter ended Jan. 1, 2011 were up 24.8% to $537.0 million from $430.2 million a year ago. Earnings for the period fell to $15.9 million, or 23 cents per share, from earnings of $23.6 million, or 38 cents per share, in the year-ago period.
Income from operations was $38.5 million, up from $47.0 million a year ago.
Net income from operations in the fourth quarter included two unusual non-cash items, an $88.3 million charge to goodwill and intangibles related to Rue La La and the company’s international e-commerce operations and a $67.2 million gain on the reversal of the estimated liability for the Rue La La earn-out, resulting in a $21.1 million negative impact to income from operations.
The company's business NGIO (non-GAAP Income from operations) business was $94.7 million compared with $74.3 million a year while the emerging business NFIO loss was $2.5 million compared to $1.4 million a year ago.
“Our fourth quarter capped off a solid 2010 for GSI Commerce, as we grew revenues by 35% and NGIO by 27% for the year. These results were, in part, a reflection of 24% full year e-commerce comparable store growth which benefited from strong industry trends as well as our multi-channel efforts. In addition to delivering NGIO that was consistent with the annual guidance that we established at the beginning of the year, 2010 was a year of important strategic investments for GSI, including deepening our management team with several key hires and enhancing our market positions in our core e-commerce and marketing services segments. With the acquisition of Fanatics that we announced today, we will further strengthen our leadership position in licensed sports merchandise. In addition, we expect that the growth initiatives in our emerging businesses, Rue La La and ShopRunner, will fuel future opportunities,” said Michael G. Rubin, GSI Commerce’s Chairman and CEO.
For Q1, GSI expects net revenues of approximately $310 million and consolidated NGIO of approximately $9.0 million, including $18 million of NGIO from its core businesses and an NGIO loss of $9.0 million from its emerging businesses.
For 2011, GSI expects net revenues of approximately $1.8 billion and consolidated NGIO of approximately $190 million, including $200 million of NGIO from its core businesses and an NGIO loss of $10 million from its emerging businesses. Consolidated capital expenditures are expected to be approximately $90 million for the year.