Outpost.com Reports Financial Results for Fiscal 2001 Fourth Quarter and Full Year

Apr 12, 2001, 01:00 ET from Outpost.com

    KENT, Conn., April 12 /PRNewswire/ -- Outpost.com (Nasdaq: COOL) Cyberian
 Outpost, Inc. a leading global Internet retailer of high-end technology
 products, today announced unaudited financial results for the fourth quarter
 and fiscal year ended February 28, 2001.
     Net sales for the fiscal quarter ended February 28, 2001 were
 $120.9 million, up 58% compared to the $76.5 million in Q4 2000.  The company
 reported a pro forma net loss, excluding goodwill and amortization, of
 ($9.5) million for the quarter and pro forma basic and diluted net loss per
 share of ($0.30).  Including goodwill amortization, the quarterly net loss was
 ($10.1) million or ($.32) per share, versus a net loss of ($9.8) million and
 basic and diluted net loss per share of ($0.41) a year ago.  Gross margin for
 the quarter was 15.0% vs. 12.4% during Q4 2000.
     For the fiscal year ended February 28, 2001 net sales were $355.2 million,
 86.6% more than the $190.3 million of net sales for the prior fiscal year.
 Pro forma net loss excluding amortization of goodwill was ($29.3) million and
 ($0.97) per share.  Including goodwill amortization, the net loss for FY 2001
 was ($30.3) million and ($1.01) per share, better than the ($35.6) million and
 ($1.52) a year ago.
     During the fourth quarter, Outpost added approximately 293,000 new
 customers bringing its total customer base to an estimated 1.3 million.  The
 Company's repeat buying rate remained strong with 57% of quarterly product
 sales coming from repeat buyers.
     "Given the current economic environment, we were pleased to have met our
 lowered estimates for the quarter" stated Darryl Peck, Chairman, of
 Outpost.com.  "Current market conditions have made it difficult to secure the
 required equity and working capital financing we need.  Therefore, we intend
 to meet with our creditors to discuss payment options," stated Peck.  "As a
 result, the Company has decided to explore all available options at this
 time."
     The Company also announced it will take a number of cost reduction actions
 and explore other strategic alternatives.
     Market conditions and the unpredictable economic environment preclude the
 company from making meaningful estimates for fiscal 2002 at this time.
     This press release contains forward-looking statements, including
 statements about our fourth quarter and full year operating results, our
 intention to meet with our creditors and our intention to cut costs and
 explore strategic alternatives.  These forward-looking statements are based on
 unaudited financial information.  The statements in this release are not
 guarantees of future performance and actual results could differ materially
 from current expectations as a result of numerous factors.  For example:
 Outpost may be unable to successfully negotiate with its creditors, Outpost
 may be unable to raise additional capital or enter into strategic alternatives
 on favorable terms or at all, Outpost may have revenue-related adjustments as
 a result of its annual audit, or operating and non-operating cost adjustments,
 e. g., increased shipping costs, its business may not grow as quickly as
 expected, computer sales may continue to slow, and/or its average order size
 may decrease.  In addition, various other risks include actions of Outpost's
 competitors, Outpost's reliance upon strategic alliances; product availability
 and technological difficulties.  We undertake no duty to update any
 forward-looking statements.
 
     Notes on Financial Presentation
     Historical results of operations are preliminary and unaudited.  Financial
 results are prepared in accordance with U.S. generally accepted accounting
 principles.  The Company expects to file its audited financial statements on
 form 10K prior to the May 31, 2001 filing deadline. Pro forma financial
 results exclude amortization of goodwill.
     Certain prior period balances have been reclassified to conform to the
 current period's presentation.
     In February 2001 the Company changed its accounting policy for classifying
 shipping revenue in accordance with Emerging Issues Task Force Issue 00-10
 ("EITF 00-10") "Accounting for Shipping and Handling Fees and Costs".  The
 Company was required by the EITF to adopt this accounting change in the fourth
 quarter.  Shipping revenue had historically been netted against shipping costs
 in the "Sales and marketing" classification on the income statement.  Due to
 classification of shipping revenue as net sales, prior period gross profit as
 well as sales and marketing expense amounts have changed.  Application of this
 accounting change is a reclassification on the statement of operations and
 does not affect the net losses previously reported.
 
     About Outpost.com
     Outpost.com, established in 1995, is a leading Internet retailer of
 consumer technology products.  Outpost.com has been named the top-rated
 consumer shopping experience on the Web by the on-line shoppers' rating
 service Bizrate.com, receiving the "Circle of Excellence Award" for Holiday
 2000 and the 1999, 2000 and 2001 #1 PowerRanking for Computing by Forrester
 Research. Outpost.com's 24/7 Customer Service Center and free overnight
 delivery service for in stock products over $100 is unmatched in the industry.
 Today, Outpost.com has an existing customer base of over 1.3 million.  The
 company has partnered with leading retailers Tweeter Home Entertainment Group
 and Brookstone expanding its clicks and mortar presence to more than
 320 retail locations.  As a full service provider (FSP), Outpost.com provides
 these partners with e-commerce solutions encompassing site design, site
 maintenance, order management and fulfillment.
 
 
                                  OUTPOST.COM
 
                          Consolidated Balance Sheets
                                 (In thousands)
 
                                                   February 28,  February 29,
                                                       2001          2000
                            Assets
     Current Assets:
       Cash and cash equivalents                     $ 21,970      $ 13,293
     Short term investments                                --         7,694
       Accounts receivable, net                        15,762         4,385
       Inventories                                     15,234        12,168
       Prepaid expenses and
        other current assets                              692         1,133
         Total current assets                          53,658        38,673
     Property and equipment, net                       20,580        10,545
     Investment in joint venture                           --         2,709
     Goodwill                                          15,224            --
     Other assets                                         243           951
         Total assets                                $ 89,705      $ 52,878
 
             Liabilities and Stockholders' Equity
     Current Liabilities:
       Current portion of capital
        lease obligations                            $    696      $    666
       Accounts payable                                37,372        24,221
       Accrued expenses and other
        current liabilities                             6,080         2,753
         Total current liabilities                     44,148        27,640
     Capital lease obligations, excluding
      current portion and other long-term debt            389           718
         Total liabilities                             44,537        28,358
     Minority interest                                  3,603            --
     Stockholders' equity:
       Common stock                                       317           237
       Additional paid-in capital                     141,172        93,921
       Accumulated deficit                            (99,924)      (69,638)
         Total stockholders' equity                    41,565        24,520
         Total liabilities and
          stockholders' equity                       $ 89,705      $ 52,878
 
 
                                  OUTPOST.COM
 
                     Consolidated Statements of Operations
                     (In thousands, except per share data)
                                  (Unaudited)
 
                                Three Months Ended        Twelve Months Ended
 
                            February 28, February 29, February 28, February 29,
                                 2001         2000         2001         2000
 
     Net sales                 $120,918      $76,478     $355,198     $190,337
     Cost of sales              102,741       67,028      302,456      166,847
       Gross profit              18,177        9,450       52,742       23,490
     Operating expenses:
       Sales and marketing       20,351       15,005       57,880       43,399
       General and
        administrative            4,196        1,785       13,575        7,401
       Technology and
        development               3,063        3,035       11,491       10,409
       Amortization of
        goodwill                    625           --        1,121           --
         Total operating
          expenses               28,235       19,825       84,067       61,209
       Operating loss           (10,058)     (10,375)     (31,325)     (37,719)
     Other income, net              308          550        1,932        2,103
       Net loss before
        minority interest        (9,750)      (9,825)     (29,393)     (35,616)
     Minority interest             (413)          --         (893)          --
       Net loss                ($10,163)     ($9,825)    ($30,286)    ($35,616)
     Basic and diluted
      net loss per share         ($0.32)      ($0.41)       (1.01)      ($1.52)
     Weighted average
      shares outstanding         31,669       23,697       29,893       23,382
 
     Pro Forma Results
       Pro forma net loss       ($9,538)     ($9,825)    ($29,165)    ($35,616)
     Basic and diluted
      net loss per share         ($0.30)      ($0.41)      ($0.98)      ($1.52)
     Weighted average
      shares outstanding         31,669       23,697       29,893       23,382
 
      Email Contact:
      press@outpost.com
 
 

SOURCE Outpost.com
    KENT, Conn., April 12 /PRNewswire/ -- Outpost.com (Nasdaq: COOL) Cyberian
 Outpost, Inc. a leading global Internet retailer of high-end technology
 products, today announced unaudited financial results for the fourth quarter
 and fiscal year ended February 28, 2001.
     Net sales for the fiscal quarter ended February 28, 2001 were
 $120.9 million, up 58% compared to the $76.5 million in Q4 2000.  The company
 reported a pro forma net loss, excluding goodwill and amortization, of
 ($9.5) million for the quarter and pro forma basic and diluted net loss per
 share of ($0.30).  Including goodwill amortization, the quarterly net loss was
 ($10.1) million or ($.32) per share, versus a net loss of ($9.8) million and
 basic and diluted net loss per share of ($0.41) a year ago.  Gross margin for
 the quarter was 15.0% vs. 12.4% during Q4 2000.
     For the fiscal year ended February 28, 2001 net sales were $355.2 million,
 86.6% more than the $190.3 million of net sales for the prior fiscal year.
 Pro forma net loss excluding amortization of goodwill was ($29.3) million and
 ($0.97) per share.  Including goodwill amortization, the net loss for FY 2001
 was ($30.3) million and ($1.01) per share, better than the ($35.6) million and
 ($1.52) a year ago.
     During the fourth quarter, Outpost added approximately 293,000 new
 customers bringing its total customer base to an estimated 1.3 million.  The
 Company's repeat buying rate remained strong with 57% of quarterly product
 sales coming from repeat buyers.
     "Given the current economic environment, we were pleased to have met our
 lowered estimates for the quarter" stated Darryl Peck, Chairman, of
 Outpost.com.  "Current market conditions have made it difficult to secure the
 required equity and working capital financing we need.  Therefore, we intend
 to meet with our creditors to discuss payment options," stated Peck.  "As a
 result, the Company has decided to explore all available options at this
 time."
     The Company also announced it will take a number of cost reduction actions
 and explore other strategic alternatives.
     Market conditions and the unpredictable economic environment preclude the
 company from making meaningful estimates for fiscal 2002 at this time.
     This press release contains forward-looking statements, including
 statements about our fourth quarter and full year operating results, our
 intention to meet with our creditors and our intention to cut costs and
 explore strategic alternatives.  These forward-looking statements are based on
 unaudited financial information.  The statements in this release are not
 guarantees of future performance and actual results could differ materially
 from current expectations as a result of numerous factors.  For example:
 Outpost may be unable to successfully negotiate with its creditors, Outpost
 may be unable to raise additional capital or enter into strategic alternatives
 on favorable terms or at all, Outpost may have revenue-related adjustments as
 a result of its annual audit, or operating and non-operating cost adjustments,
 e. g., increased shipping costs, its business may not grow as quickly as
 expected, computer sales may continue to slow, and/or its average order size
 may decrease.  In addition, various other risks include actions of Outpost's
 competitors, Outpost's reliance upon strategic alliances; product availability
 and technological difficulties.  We undertake no duty to update any
 forward-looking statements.
 
     Notes on Financial Presentation
     Historical results of operations are preliminary and unaudited.  Financial
 results are prepared in accordance with U.S. generally accepted accounting
 principles.  The Company expects to file its audited financial statements on
 form 10K prior to the May 31, 2001 filing deadline. Pro forma financial
 results exclude amortization of goodwill.
     Certain prior period balances have been reclassified to conform to the
 current period's presentation.
     In February 2001 the Company changed its accounting policy for classifying
 shipping revenue in accordance with Emerging Issues Task Force Issue 00-10
 ("EITF 00-10") "Accounting for Shipping and Handling Fees and Costs".  The
 Company was required by the EITF to adopt this accounting change in the fourth
 quarter.  Shipping revenue had historically been netted against shipping costs
 in the "Sales and marketing" classification on the income statement.  Due to
 classification of shipping revenue as net sales, prior period gross profit as
 well as sales and marketing expense amounts have changed.  Application of this
 accounting change is a reclassification on the statement of operations and
 does not affect the net losses previously reported.
 
     About Outpost.com
     Outpost.com, established in 1995, is a leading Internet retailer of
 consumer technology products.  Outpost.com has been named the top-rated
 consumer shopping experience on the Web by the on-line shoppers' rating
 service Bizrate.com, receiving the "Circle of Excellence Award" for Holiday
 2000 and the 1999, 2000 and 2001 #1 PowerRanking for Computing by Forrester
 Research. Outpost.com's 24/7 Customer Service Center and free overnight
 delivery service for in stock products over $100 is unmatched in the industry.
 Today, Outpost.com has an existing customer base of over 1.3 million.  The
 company has partnered with leading retailers Tweeter Home Entertainment Group
 and Brookstone expanding its clicks and mortar presence to more than
 320 retail locations.  As a full service provider (FSP), Outpost.com provides
 these partners with e-commerce solutions encompassing site design, site
 maintenance, order management and fulfillment.
 
 
                                  OUTPOST.COM
 
                          Consolidated Balance Sheets
                                 (In thousands)
 
                                                   February 28,  February 29,
                                                       2001          2000
                            Assets
     Current Assets:
       Cash and cash equivalents                     $ 21,970      $ 13,293
     Short term investments                                --         7,694
       Accounts receivable, net                        15,762         4,385
       Inventories                                     15,234        12,168
       Prepaid expenses and
        other current assets                              692         1,133
         Total current assets                          53,658        38,673
     Property and equipment, net                       20,580        10,545
     Investment in joint venture                           --         2,709
     Goodwill                                          15,224            --
     Other assets                                         243           951
         Total assets                                $ 89,705      $ 52,878
 
             Liabilities and Stockholders' Equity
     Current Liabilities:
       Current portion of capital
        lease obligations                            $    696      $    666
       Accounts payable                                37,372        24,221
       Accrued expenses and other
        current liabilities                             6,080         2,753
         Total current liabilities                     44,148        27,640
     Capital lease obligations, excluding
      current portion and other long-term debt            389           718
         Total liabilities                             44,537        28,358
     Minority interest                                  3,603            --
     Stockholders' equity:
       Common stock                                       317           237
       Additional paid-in capital                     141,172        93,921
       Accumulated deficit                            (99,924)      (69,638)
         Total stockholders' equity                    41,565        24,520
         Total liabilities and
          stockholders' equity                       $ 89,705      $ 52,878
 
 
                                  OUTPOST.COM
 
                     Consolidated Statements of Operations
                     (In thousands, except per share data)
                                  (Unaudited)
 
                                Three Months Ended        Twelve Months Ended
 
                            February 28, February 29, February 28, February 29,
                                 2001         2000         2001         2000
 
     Net sales                 $120,918      $76,478     $355,198     $190,337
     Cost of sales              102,741       67,028      302,456      166,847
       Gross profit              18,177        9,450       52,742       23,490
     Operating expenses:
       Sales and marketing       20,351       15,005       57,880       43,399
       General and
        administrative            4,196        1,785       13,575        7,401
       Technology and
        development               3,063        3,035       11,491       10,409
       Amortization of
        goodwill                    625           --        1,121           --
         Total operating
          expenses               28,235       19,825       84,067       61,209
       Operating loss           (10,058)     (10,375)     (31,325)     (37,719)
     Other income, net              308          550        1,932        2,103
       Net loss before
        minority interest        (9,750)      (9,825)     (29,393)     (35,616)
     Minority interest             (413)          --         (893)          --
       Net loss                ($10,163)     ($9,825)    ($30,286)    ($35,616)
     Basic and diluted
      net loss per share         ($0.32)      ($0.41)       (1.01)      ($1.52)
     Weighted average
      shares outstanding         31,669       23,697       29,893       23,382
 
     Pro Forma Results
       Pro forma net loss       ($9,538)     ($9,825)    ($29,165)    ($35,616)
     Basic and diluted
      net loss per share         ($0.30)      ($0.41)      ($0.98)      ($1.52)
     Weighted average
      shares outstanding         31,669       23,697       29,893       23,382
 
      Email Contact:
      press@outpost.com
 
 SOURCE  Outpost.com