Web Street, Inc.
Consolidated Statements of Operations
And Key Operating Statistics
Twelve Months Three Months
Ended December 31, Ended December 31,
------------------------- -------------------------
1999 1998 1999 1998
(unaudited)
Revenues
Transaction
revenue $ 23,471,194 $ 7,350,246 $ 7,530,461 $ 3,272,165
Interest income 876,938 162,912 400,349 52,632
Other revenue 1,123,453 377,775 377,550 199,623
------------ ------------ ------------ ------------
Total revenues 25,471,585 7,890,933 8,308,360 3,524,420
Cost of services
Clearance and
execution 10,564,306 2,794,584 3,385,473 1,383,332
Employee
compensation
and benefits 2,725,779 1,375,203 828,284 552,387
Communication and
data processing 1,727,605 946,150 689,805 460,431
------------ ------------ ------------ ------------
Total cost of
services 15,017,690 5,115,937 4,903,562 2,396,150
Operating expenses
Marketing and
advertising 8,457,773 8,151,578 2,924,235 3,627,002
Technology
development 2,005,093 1,559,306 603,914 337,103
General
Administrative 6,754,526 4,882,562 2,647,834 1,837,977
------------ ------------ ------------ ------------
Total operating
expenses 17,217,392 14,593,446 6,175,983 5,802,082
------------ ------------ ------------ ------------
Net loss (6,763,497) (11,818,450) (2,771,185) (4,673,812)
============ ============ ============ ============
Basic and diluted
net loss per
common share $ (0.32)$ (0.71)$ (0.12)$ (0.28)
============ ============ ============ ============
Weighted average
common shares used
in computation of
basic and diluted
net loss per
common share: 21,202,941 16,740,600 23,173,156 16,740,600
============ ============ ============ ============
Key Operating
Statistics:
Total trades 1,016,700 291,500 312,100 136,200
Average trades
per day 4,034 1,200 4,877 2,095
Total customer
accounts (1)(2) 87,500 42,200 87,500 42,200
Total customer
assets(1) $795,105,000 $231,558,200 $795,105,000 $231,558,200
Total Employees(1) 119 65 119 65
(1) As of the end of each period presented
(2) Represents open accounts regardless of whether there have ever
been any funds or securities in the account.
Web Street, Inc.
Consolidated Balance Sheets
As of
December 31,
----------------------------
1999 1998
------------ ------------
ASSETS
Cash and cash equivalents $ 39,189,363 $ 1,579,639
Receivable from clearing broker 2,395,679 1,008,716
Other receivables 249,917 687,861
Property and equipment, net 3,994,411 886,223
Prepaids and other assets 1,851,534 333,185
------------ ------------
Total assets 47,680,904 4,495,624
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable 2,705,228 1,823,400
Accrued compensation and benefits 1,202,561 433,950
Other accrued expenses 774,072 936,785
Deferred rent 146,082 150,378
------------ ------------
Total liabilities 4,827,943 3,344,513
Redeemable Common Stock - 624,375
Stockholders' equity:
Preferred stock--Series A - 1,125
Preferred stock--Series C - 30,000
Common stock--($.01 par value;
100,000,000 shares authorized;
25,650,402 and 18,956,273 issued
and outstanding as of December 31,
1999 and 1998, respectively) 256,504 189,563
Receivable from related party - (190,000)
Additional paid-in capital 65,207,751 16,343,846
Accumulated deficit (22,611,294) (15,847,798)
------------ ------------
Total stockholders' equity 42,852,961 526,736
------------ ------------
Total liabilities and
stockholders' equity $ 47,680,904 $ 4,495,624
============ ============
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Contact:
Web Street, Inc., Chicago
Joseph A. Barr, 847/444-4700
Chief Financial Officer
or
Morgen-Walke Associates, New York
Investor Relations
Cheryl Schneider/Hulus Alpay
Press: David Nugent/Ellen Paz
212/850-5600
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