e4L Reports Year End and Fourth Quarter Results for Fiscal Year 1999
biz.yahoo.com
LOS ANGELES--(BUSINESS WIRE)--June 27, 1999--e4L, Inc. (NYSE:ETV - news) today reported net revenue for the fiscal year ended March 31, 1999 was $327.9 million as compared to $278.5 million for the fiscal year ended March 31, 1998 -- an increase of $49.4 million or 17.7%. Net revenue for the three months ended March 31, 1999 was $74.9 million as compared to $91.8 million for the three months ended March 31, 1998 -- a decrease of $16.9 million.
The Company reported a net loss of $43.6 million or ($1.70) per basic and diluted share for the fiscal year ended March 31, 1999 as compared to a net loss of $56.8 million or ($2.31) per basic and diluted share for the fiscal year ended March 31, 1998 -- an improvement of $13.2 million. The Company also reported a net loss of $9.5 million or ($0.35) per basic and diluted share for the three months ended March 31, 1999 as compared to a net loss of $21.3 million or ($0.85) per basic and diluted share for the three months ended March 31, 1998 -- an improvement of $11.8 million.
Results of operations for the year ended March 31, 1999 included restructuring and unusual charges of $20.2 million; an extraordinary gain on extinguishment of senior debt of $4.9 million; the effects of a gain on sale of an investment in common stock of $6.5 million and a writedown of impaired goodwill of $11.3 million attributable to the Company's Australian and New Zealand subsidiaries that were acquired in 1996. Results of operations for the year ended March 31, 1998 included unusual charges of $1.9 million and a writedown of impaired goodwill of $14.5 million.
EBITDA, a widely used measure of media and electronic commerce company performance, for the fiscal years ended March 31, 1999 and 1998, exclusive of the above items, was a deficit of $13.0 million and $29.1 million, respectively -- an improvement of $16.1 million.
Stephen C. Lehman, Chairman and Chief Executive Officer, stated, ''Since taking control of the Company on October 23, 1998, our new management team has been able to implement a comprehensive restructuring program and aggressively create the foundation for e-commerce and membership programs. We are pleased that e4L has been able to reduce selling, general and administrative costs as compared to the prior year by more than $10.0 million. Moreover, we expect to reduce our overall cost structure by an additional $10 million in our next fiscal year and beyond.
''We have focused on two primary areas as future drivers -- e-commerce through BuyItNow.com and the membership business through 'Everything4Less','' Lehman added. ''We expect further growth in both the value of our investment in BuyItNow.com and in ''Everything4Less'' which is currently adding 10,000 trial members per week. e4L is in a unique position compared to other companies with electronic commerce platforms whose market caps dramatically exceed their revenues. Accordingly, we think we should be attractive to both investors who focus on value and those who prefer growth companies.''
The Company's performance in the United States led the improvement in annual net revenue. For the current fiscal year, net revenue was $197.5 million in the United States as compared to $123.6 million for the same period of the prior fiscal year - an increase of $73.9 million or 59.8%. International net revenue for fiscal year 1999 was $130.3 million as compared to $154.9 million for fiscal year 1998 - a decrease of $24.6 million or 15.9%. The decrease in international net revenue was primarily attributable to the economic downturn experienced throughout e4L's South Pacific Rim and Asian markets.
For the fourth quarter of fiscal year 1999, net revenue was $41.7 million in the United States as compared to $53.5 million for the prior fiscal year - a decrease of $11.8 million or 22.1%. International net revenue for the 1999 fourth fiscal quarter was $33.2 million as compared to $38.3 million for the same period in the prior year - a decrease of $5.1 million or 13.4%. The decreases in both United States and International net revenue were primarily attributable to e4L's restructuring efforts, the continued economic downturn experienced throughout e4L's South Pacific Rim and Asian markets, and a decline in European net revenue.
Daniel M. Yukelson, e4L's Executive Vice President and Chief Financial Officer stated: ''The reduction in fourth quarter U.S. revenue clearly reflects the emphasis on our restructuring efforts and revised business strategies, which partially contributed to the delay of new product and television program introductions as we focused on our cost reduction objectives and on our membership and electronic commerce initiatives. While net revenue was lower internationally, our Asian revenue, and, in particular, Japan which is potentially our most profitable market, improved over the prior year as our restructuring efforts and revised business model went into place earlier than in the U.S. market.''
Yukelson further stated: ''The write-downs for restructuring and unusual charges recognized during the year reflect our efforts to change the dynamics of the e4L business model through the leverage created by our television media. This new strategic direction has helped us to distance ourselves from the old National Media business model.''
The Company will conduct a conference call on Tuesday, June 29, 1999 at 1 pm Eastern Standard Time/10 am Pacific Time. Interested participants should call 1-888-942-9685 in the United States and 1-415-228-5038 for International calls approximately 10 minutes prior to commencement of the call. A conference call replay will be available from June 29 1999 until July 6, 1999 through 6:00 p.m. Eastern Standard Time by calling 1-800-294-1003 in the United States and 1-402-220-9757 for international calls. Steve Lehman will lead the call. The pass code is ''Lehman.'' Investors will also have the opportunity to listen to the conference call over the Internet through Vcall at vcall.com. Interested listeners should go to the Web site at lease fifteen minutes early to register, download, and install any necessary audio software. A conference call replay will be available via Vcall after the call, and a transcript will be available approximately 48 hours later.
e4L, Inc. is the world's largest publicly held direct response television and radio company, selling consumer products via television, radio and the Internet. The Company leverages this multimedia infrastructure to drive its e-commerce and membership programs. e4L broadcasts more than 3,000 half hours of television programming each week throughout the world, reaches 100% of television homes in the United States, brings its programming to more than 270 million television households in more than 70 countries worldwide, and provides television and radio programming and shopping over the Internet. It broadcasts the Everything4Less Show each week over network radio and simultaneously cybercasts the Show through broadcast.com over the Internet. e4L sells its ''As Seen on TV'' products via www.buyitnow.com, the e-tailing company it formed with BuyItNow, Inc. and Clear Channel Communications. Additionally, e4L's Everything4Less offers membership-based discount shopping.
This press release contains forward-looking statement regarding potential future events and developments affecting the business of the Company. The Company wishes to take advantage of certain ''safe harbor'' provisions regarding forward-looking statements. Examples of forward-looking statements include, but are not limited to, (i) projections of revenues, income or loss, profitability, earnings or loss per share and other financial indicators, (ii) statements of plans or objectives of the Company's management or Board of Directors and (iii) other statements about the Company or the direct response or electronic commerce industries.
The Company's ability to predict projected results or the effect of certain events on the Company's results of operations is inherently uncertain. Therefore the Company wishes to caution each reader of this release to carefully consider certain factors, including competition for customers, media pricing and access, market conditions regarding buyers and sellers of media, the potential effect of litigation involving the Company, the risks of doing business in the U.S. and the international marketplace, issues related to entering new markets and the electronic commerce industry, the inherent difficulty in identifying successful products, locating efficient suppliers of such products and bringing such products to market in a timely fashion and other factors, each of which could affect the ability of the Company to achieve its projected results and may cause actual results to differ materially from those expressed herein. For a description of additional risks and uncertainties, please refer to the Company's filings with the Securities and Exchange Commission; including the Company's Annual Report and Quarterly Reports.
(Financial Table to follow)
NATIONAL MEDIA CORPORATION
FOURTH QUARTER AND YEAR TO DATE RESULTS
(In Thousands Except Per Share Amounts)
Three months ended March 31 Year ended March 31
1999 1998 1999 1998
Net revenue $74,872 $91,839 $327,850 $278,474
Earnings before
interest, taxes,
depreciation and
amortization - $(2,147) $(2,329) $(13,030) $(29,118)
(deficit) (1)
Net loss before
extraordinary item $(9,524) $(21,276) $(48,474) $(56,769)
Net loss $(9,524) $(21,276) $(43,598) $(56,769)
Net loss per share -
basic and diluted:
Loss before
extraordinary item $(0.35) $(0.85) $(1.88) $(2.31)
Extraordinary item -- -- 0.18 --
Net loss per
common share $(0.35) $(0.85) $(1.70) $(2.31)
Weighted average number
of common and common
shares outstanding: 30,587 25,364 27,054 24,904
(1) Excludes unusual charges of $20.2 million for the year ended
March 31, 1999, and $1.1 million and $1.9 million of unusual
charges for the three months and year ended March 31, 1998,
respectively. Also excludes write-off of impaired goodwill of
$11.3 million and $14.5 million for the three months and year
ended March 31, 1999 and 1998, respectively. In addition
excludes a gain on extinguishment of debt of $4.9 million for
the year ended March 31, 1999, and a gain on sale of
investment of $6.5 million for the three months and year
ended March 31, 1999.
To request previous press releases on e4L, Inc. or an investors package, please contact Suzanne Flaig at 818/461-6461.
--------------------------------------------------------------------------------
Contact:
e4L, Inc.
Bruce D. Goodman, 818/461-6510
bruce.goodman@e4L.com
Dan Yukelson, 818/461-6413
dan.yukelson@e4L.com |
