NEW YORK, November 20, 2013 /PRNewswire/ --
Third Quarter Revenues reach $1.6 Million, an Increase of 124 Percent
7thConsecutive Quarter of Sequential Revenue Growth
$24 Million Value of Consumer Electronic Devices Processed Since Launch
uSell.com (OTCQB: USEL), the first US-based reCommerce marketplace that instantly finds cash offers for used smartphones and electronics, announced today record results for the third quarter ended September 30, 2013.
Highlights:
- Revenues of $1,636,386 in the third quarter of 2013, up 124% from revenues of $729,297 in the third quarter of 2012
- 7th consecutive quarter of sequential revenue growth
- Gross margins above 90% for the 7th consecutive quarter
- Operating loss of $843,100 in the third quarter of 2013, a $1,605,887 improvement from operating loss of $2,448,987 in the third quarter of 2012
- Cash operating loss of $225,000 in the third quarter of 2013, a $475,000 improvement from cash operating loss of $700,000 in the third quarter 2012
- Continued improved efficiency of marketing spend
- Unique visitors reaching a record 1,000,000 monthly in September
- $24 million value of consumer electronic devices processed to-date since launch in January 2012
Financial Results:
Third Quarter 2013 Compared to Third Quarter 2012
For the third quarter of 2013, revenues reached a record $1.6 million, a 124 percent increase from $0.7 million in the third quarter of 2012. The increase in revenue is primarily due to increased marketing spend, improved marketing efficiency and an increase in trading partners. Gross profit margin of 94 percent was realized in the third quarter, the 7th consecutive quarter of 90%+ gross margins. Operating loss for the third quarter improved by $1.6 million, from $2.4mm in the third quarter of 2012 to $0.8 million in the third quarter of 2013. The decrease in operating loss was primarily due to improved marketing efficiency and increased revenue. Of note, the cash operating loss for the third quarter improved by $0.5 million, from $0.7 million in the third quarter of 2012 to $0.2 million in the third quarter of 2013. The Company's net loss for the third quarter increased by $0.5 million, from a loss of $0.4 million in the third quarter of 2012 to a loss of $1.0 million in the third quarter of 2013. The resulting EPS is ($0.01), as compared to ($0.01) a year earlier. Net loss and EPS results from the third quarter of 2012 include a positive change in fair value of derivative liability relating to conversion feature of Series A preferred stock of $2.0 million.
Year-to-Date 2013 Compared to Year-to-Date 2012
For the first nine months of 2013 ended September 30, 2013, revenues were $3.9 million, a 150 percent increase from $1.6 million in the first nine months of 2012. Gross profit margin of 93 percent was realized in the first nine months ended September 30, 2013, similar to a 91 percent gross profit margin a year earlier. Operating loss for the first nine months of 2013 improved by $1.6 million, from $5.2mm in the first nine months of 2012 to $3.6 million in the first nine months of 2013. Of note, the cash operating loss for the first nine months of 2013 improved by $1.1 million, from $2.5 million in the first nine months of 2012 to $1.4 million in the first nine months of 2013. Net loss for the first nine months improved by $4.0 million, from a loss of $7.7 million in the first nine months of 2012 to a loss of $3.6 million in the first nine months of 2013. The resulting EPS is ($0.06), as compared to ($0.38) a year earlier. Net loss and EPS results from the first nine months of 2012 include a negative change in fair value of derivative liability relating to conversion feature of Series A preferred stock of $2.3 million.
Other Business Updates:
The uSell.com reCommerce marketplace that instantly finds cash offers for used products recently rebranded its website and launched a new TV spot. The rebranded website (http://www.uSell.com) focuses on phones, particularly iPhones, which are the current key drivers from visitors for trade-in. A new creative production for TV media marketing launched in early November. The refreshed TV spots are more appealing and targeted.
"These new branding initiatives come at a very opportune time, stated Chief Executive Officer Daniel Brauser. We continue to be excited about our consumer electronics focus as industry drivers and consumer awareness and education are expected to spur continued growth. The market opportunity in cell phones and consumer electronics remains very much untapped. Key drivers over the next few quarters and years should drive awareness and greatly increase the market opportunity for uSell.com. Recently, Verizon Wireless and T-Mobile launched new programs encouraging wireless customers to upgrade their devices more frequent, no longer being held to two-year contracts in order to get discounted new device pricing."
Recently, uSell.com appointed Steven Rubin and Gerald Unterman as strategic advisors of the Company.
Mr. Rubin has served as Executive Vice President - Administration of OPKO Health, Inc. (OPKO) since May 2007 and as a director of OPKO Health, Inc. since February 2007. Mr. Rubin served as the Senior Vice President, General Counsel and Secretary of IVAX from August 2001 until September 2006. Mr. Rubin currently serves on the Board of Directors of Safestitch Medical, Inc. (SFES), a medical device company, Tiger Media, Inc., (IDI), a multi-platform billboard and advertising company in China, PROLOR (PBTH), a development stage biopharmaceutical company, Kidville, Inc. (KVIL), which operates large, upscale facilities, catering to newborns through five-year-old children and their families and offers a wide range of developmental classes for newborns to 5 year olds, Non-Invasive Monitoring Systems, Inc. (NIMU), a medical device company, Tiger X Medical, Inc. (CDOM), previously an early-stage orthopedic medical device company specializing in designing, developing and marketing reconstructive joint devices and spinal surgical devices, Castle Brands, Inc. (ROX), a developer and marketer of premium brand spirits, and Neovasc, Inc. (NVC), a company developing and marketing medical specialty vascular devices. Mr. Rubin brings extensive leadership, business, and legal experience, as well as tremendous knowledge of our business to the Board. He has advised numerous companies in several aspects of business, regulatory, transactional, and legal affairs for more than 25 years. His experience as a practicing lawyer, general counsel, and board member to multiple public companies, that has given him broad understanding and expertise, particularly relating to strategic planning and acquisitions.
Mr. Unterman, a pioneer investor in the high-yield and convertible bond markets, started his investment career at Standard & Poor's Corporation in 1972 where he progressed to the position of Senior Vice President of the Corporate Industrial Bond Department. In 1981, Mr. Unterman left S&P to join First Investors Corporation, managing one of the first high-yield bond mutual funds in the country, and then went on to form Gem Capital Management in 1990, a privately held investment management firm, specializing in the management of high-yield and convertible bond, and special-situation equity portfolios for corporations, municipalities, and high net worth individuals. In 2008, Mr. Unterman sold Gem Capital to another money management firm and stayed on to help with the transition until 2010. Today, Mr. Unterman continues to manage portfolios for himself and family members using the same investment strategies that he utilized during his over 30 years of active investment management career.
About uSell.com, Inc.
uSell.com is a reCommerce marketplace that helps individuals turn unused items into cash. uSell ensures that customers get the highest payouts with the least amount of hassle by facilitating risk-free transactions with professional buyers. For uSell's buyers, uSell offers a scalable technology, marketing, logistics, and analytics solution that provides a high volume of inventory at a low acquisition cost. Visit http://www.uSell.com
Forward-Looking Statements
This press release includes forward-looking statements including statements regarding the market opportunity for our platform. The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. The results anticipated by any or all of these forward-looking statements might not occur. Important factors that could cause actual results to differ from those in the forward-looking statements include providing consumers with a sufficient number of partners that furnish offers on our site, competition from large retail stores and wireless operators, the effectiveness of our advertising campaigns, success of the new offerings on our site, and the willingness of people to use us to help them monetize and recycle their small consumer electronic items and other new offering. Further information on our risk factors is contained in our filings with the SEC, including our Annual Report on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.
Contact Information
Hayden IR
[email protected]
+1-917-658-7878
SOURCE uSell.com
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