Financials
CYBERSHOP.COM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (1)
Three Months Ended December 31, Twelve Months Ended December 31,
------------------------------ -------------------------------
1999 1998 1999 1998
------------- ----------- ------------- ------------
Revenues:
Product
sales $ 2,737,000 $ 222,000 $ 7,019,000 $ 222,000
------------- ----------- ------------- ------------
Advertising
& set up fees -- 5,000 -- 5,000
Total
revenues
(2) 2,737,000 227,000 7,019,000 227,000
Cost of revenues 1,626,000 233,000 3,796,000 233,000
------------- ----------- ------------- ------------
Gross profit 1,111,000 (6,000) 3,223,000 (6,000)
Operating expenses:
Sales and
marketing 1,600,000 314,000 2,432,000 314,000
General and
administrative 1,244,000 1,190,000 4,240,000 2,236,000
Amortization of
goodwill and
other merger
and acquisition
related costs 724,000 -- 1,733,000 --
------------- ----------- ------------- ------------
Total
operating
expenses 3,568,000 1,504,000 8,405,000 2,550,000
------------- ----------- ------------- ------------
Loss continuing
operations before
interest income
& minority
interest (2,457,000) (1,510,000) (5,182,000) (2,556,000)
Interest
income, net 15,000 158,000 245,000 619,000
Minority interest 229,000 385,000 482,000 385,000
------------- ----------- ------------- ------------
Loss from
continuing
operations (1) 2,213,000) (967,000) (4,455,000) (1,552,000)
Discontinued
operations: (1)
Loss from
operations (1,747,000) (3,416,000) (5,379,000) (6,415,000)
Estimated loss
on disposal (435,000) -- (435,000) --
------------- ----------- ------------- ------------
Total
discontinued
operations (2,182,000) (3,416,000) (5,814,000) (6,415,000)
------------- ----------- ------------- ------------
Net loss (4,395,000) (4,383,000) (10,269,000) (7,967,000)
Adjustable warrant
shares issued (3) (401,000) -- (401,000) --
------------- ----------- ------------- ------------
Net loss
applicable
to common
shareholders $ (4,796,000)$ (4,383,000) $ (10,670,000) $ (7,967,000)
============= ============ ============= ============
Net loss per share applicable
to common shareholders,
basic and diluted:
From continuing
operations $ (0.23) $ (0.13) $ (0.53) $ (0.23)
Net Loss $ (0.50) $ (0.59) $ (1.27) $ (1.19)
Weighted average
common shares
outstanding,
basic and diluted 9,566,000 7,478,000 8,393,000 6,676,000
Pro Forma Results From
Continuing
Operations (4):
----------------------
Pro Forma
net loss $(1,489,000) $ (967,000) $ (2,722,000) $ (1,552,000)
Pro Forma net loss
per share, basic and
Diluted $ (0.16) $ (0.13) $ (0.32) $ (0.23)
Cash and Accounts
Receivable, net:
-----------------
As of December
31, 1999 $9,591,000
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(1) The consolidated statements of operations reflect the Company's
decision in January 2000 to cease operations related to its
Internet retailing operation, CyberShop.com, as announced on
February 10, 2000. Pursuant to existing accounting rules and
regulations, the results of operations of CyberShop.com for all
periods presented have been classified as loss from discontinued
operations. Estimated loss on disposal includes the estimated
provisions for losses expected to be incurred directly related to
the disposal. Results from continuing operations include the
operations of Cybershop.com, Inc.'s Tools for Living division,
beginning on the date of acquisition of June 1, 1999, the
operations of its wholly owned subsidiary electronics.net, which
began operations in the fourth quarter of 1998, and general
corporate expenses. As announced on February 22, 2000 the Company
has signed a letter of intent to sell substantially all of the
operating assets of electronics.net in exchange for a convertible
note and a 19.9% equity interest in the purchasing company.
Accordingly, the results of the expected sale will be accounted
for as part of the Company's results for 2000.
(2) Revenues applicable to discontinued operations were $1,250,000
and $3,335,000 for the fourth quarters of 1999 and 1998
respectively, and $2,898,000 and $4,827,000 for the years 1999
and 1998, respectively.
(3) Adjustable warrant shares issued reflect the exercise of common
stock warrants issued as part of a private placement of the
Company's common stock on September 30, 1999, in exchange for
43,668 shares. The resulting dollar amount of the adjustable
warrant shares issued multiplied by the closing price of the
Company's common stock at the end of a predetermined period is
deducted from net loss to arrive at net loss applicable to common
stockholders. During the first quarter of 2000, additional
adjustable warrant shares were issued related to another private
placement of the Company's common stock on December 8, 1999, in
exchange for 613,486 shares.
(4) Pro forma results present the continuing operating results of the
Company, excluding goodwill and other merger and acquisition
related costs related to business acquisitions which are
primarily composed of the amortization of goodwill associated
with the purchase of Tools for Living. These pro forma results
are presented for informational purposes only and are not
presented in accordance with generally accepted accounting
principles.
CONTACT: Investor Contact:
Steve Del Vecchia
Director of Investor Relations
CyberShop.com Inc.
Tel. (201) 234-5007
steved@cybershop.com
Noticed the bloated operating expenses.
Surprised I ever made money on this.
Jack |
