PurchasePro Achieves Cash EPS of $0.11
Revenue Exceeds Prior Three Quarters Combined
LAS VEGAS--(BUSINESS WIRE)--Feb. 12, 2001--PurchasePro.com Inc. (Nasdaq:PPRO - news), a leading enabler of business-to-business e-commerce solutions for companies of all sizes, today reported operating positive cash earnings per share of $0.11 or $7.6 million of cash earnings, exclusive of non-cash charges and a one-time gain.
The company reported revenue of $33.6 million for the fourth quarter ended December 31, 2000. Additionally during the fourth quarter, the company posted a one-time net gain of $0.04 per share from the sale of an investment. The company's cash flow for the quarter was $10.3 million.
PurchasePro's revenues for the fourth quarter rose 94 percent from the $17.3 million posted in the preceding quarter and increased 1,160 percent to a record $33.6 million, from $2.7 million a year ago. For the full year, PurchasePro recorded revenues of $65.0 million, an increase of 983 percent versus last year's revenues.
The company also reported that it has significantly narrowed its total cash loss to $12.6 million, or $0.20 per basic share for the year ended December 31, 2000, from a cash loss of $0.45 per basic share a year earlier.
Including all charges, the company reported a total net loss per share of $0.55 for the quarter compared to a net loss per share of $1.03 last year. For the year, the total net loss per share was $1.15 versus $2.44 last year.
Charles E. Johnson Jr., chairman and chief executive officer, said, ``We think our fourth quarter results confirm the strength of our business model and validate, without qualification, our revenue model. This is further evidence of the leadership PurchasePro has established in the e-commerce industry.''
``Critical to the growth of PurchasePro is member adoption,'' continued Johnson. ``Adoption by new members has continued to increase and we expect that growth to be of even greater magnitude in the future. Simultaneously, the company's purchase order volume rose by nearly fifty percent during the fourth quarter. Posting record revenue while effectively managing company expenses enabled PurchasePro to recognize cash earnings per share of eleven cents, significantly exceeding consensus analyst estimates.''
Notable Fourth Quarter Statistics
PurchasePro added approximately 110,000 unique businesses to the PurchasePro global marketplace during the fourth quarter -- an increase of 355 percent from the third quarter, bringing the company's total membership to 140,000 businesses. This was due in large part to the addition of AOL Time Warner subscribers to the global marketplace.
PurchasePro's days sales outstanding (DSOs) dropped 47 percent to 62 days.
PurchasePro experienced 47 percent growth in purchase orders submitted over the PurchasePro global marketplace, bringing the total for the quarter to nearly 18,000.
PurchasePro's gross margins were 94 percent.
PurchasePro's network access fees grew 100 percent to $10.2 million.
Contributing significantly to PurchasePro's fourth quarter success was the continued growth of the company's strategic alliances, including the recently announced relationship with BroadVision (Nasdaq: BVSN - news). PurchasePro's existing relationships with AOL Time Warner (NYSE: AOL - news), Computer Associates (NYSE: CA - news), Gateway (NYSE: GTW - news), Sprint (NYSE: FON - news), Hilton (NYSE: HLT - news) and Office Depot (NYSE: ODP - news) remain strong and combine to continue to provide the company with recurring revenue and substantial financial returns.
Additional Fourth Quarter Events
PurchasePro and AOL Time Warner saw a significant number of businesses register for the companies' jointly developed Netscape Netbusiness marketplace.
PurchasePro and Hilton's e-Procurement marketplace continues to scale. There are 500 hotels across the country currently participating in the marketplace.
PurchasePro continued to strengthen its management team with the appointment of Shawn McGhee as chief operating officer.
PurchasePro announced the acquisition of the Stratton Warren Software Company, providing PurchasePro with access to 50,000 suppliers and more than $5 billion of annual procurement spending.
``PurchasePro's relationship with AOL Time Warner is scaling rapidly. The companies' Netscape Netbusiness marketplace is enjoying tremendous growth and the companies are currently collaborating on sales opportunities that are reshaping the e-commerce industry,'' said Johnson.
PurchasePro's marketplace members continue to enjoy success. Two of the company's new marketplace owners include Honeywell and Funeral Exchange.
A Sample of Marketplace Successes
Honeywell's Home and Building Control's Enterprise Service Solutions (ESS) and its myFacilities.com(TM) entities selected PurchasePro to provide two e-Procurement marketplaces that will enable Honeywell to aggregate the procurement processes of ESS and myFacilities.com's(TM) 1,000 buyers and suppliers nationwide.
Funeral Exchange, a marketplace designed to aggregate the spending of the highly fragmented funeral home industry, has added 719 members to its marketplace. Funeral Exchange is committed to bringing ``new economy solutions'' to an ``old economy'' industry. The company's marketplace is expected to lower procurement costs, increase business speed, and enhance employee productivity for its marketplace members.
``Since PurchasePro began its relatively short tenure as a public company, we have clearly stated and realized our objectives -- both financial and strategic. From the beginning, PurchasePro has consistently performed, achieving every one of our company's goals. As we continue to scale our operations, we expect this strong performance will continue and propel PurchasePro to the top of the business-to-business industry,'' concluded Johnson.
About PurchasePro
PurchasePro (Nasdaq: PPRO - news), a leader in business-to-business e-commerce, operates the PurchasePro global marketplace that encompasses more than 140,000 businesses and powers hundreds of marketplaces with its highly scalable, browser-based e-commerce engine.
PurchasePro enables businesses of all sizes to easily buy and sell products and services, competing more effectively by enhancing sales opportunities, reducing procurement costs, and greatly increasing employee productivity. PurchasePro responds to the most common corporate needs: e-Procurement for corporate procurement, v-Distributor for online distributors, and e-MarketMaker for Internet market makers.
PurchasePro has developed strategic sales and marketing relationships with industry leaders including AOL Time Warner, Computer Associates, Gateway, Hilton, Office Depot, and Sprint. The company provides extensive support and training programs. For information, call toll free at (888) 830-4600 or in Las Vegas at (702) 316-7000 or visit www.purchasepro.com. |
