TURF...Beat estimates quadrupled sales and growing..Wednesday August 25, 8:05 am Eastern Time
Company Press Release
iTurf Reports Record Second Quarter Results
NEW YORK--(BUSINESS WIRE)--August 25, 1999--iTurf (Nasdaq:TURF - news)
Net Revenues Nearly Quadruple --
Traffic Reaches Record Levels --
Unique Visitors Up Over 75% During Quarter --
Results Significantly Exceed Analysts' Expectations --
iTurf Inc. (Nasdaq:TURF - news), a leading provider of Internet community, content and commerce services for Generation Y, today announced record sales for the second quarter and twenty-six weeks ended July 31, 1999. In addition, the company reported dramatic increases in its traffic and user base.
Net revenues for the second quarter nearly quadrupled to $3.0 million from $760,000 in the second quarter of last year. Gross profit for the second quarter was $1.3 million, or 44.1% of revenues, compared to $421,000, or 55.4% of revenues, in the second quarter of last year. Selling, general and administrative expenses totaled $4.1 million, or 137.3% of revenues, compared to $445,000, or 58.6% of revenues, a year ago. The Company reported a net loss for the quarter of $1.8 million, or $0.10 per share, compared to a net loss of $24,000, or $0.00 per share, a year ago.
Net revenues for the first half of fiscal 1999 increased to $5.6 million, an increase of nearly seven times the $829,000 reported for the first half of last year. Gross profit for the first half was $2.6 million, or 46.4% of revenues, compared to $455,000, or 54.9% of revenues, in the first half of last year. Selling, general and administrative expenses totaled $5.8 million, or 104.3% of revenues, compared to $554,000, or 66.8% of revenues, a year ago. The Company reported a net loss for the twenty-six weeks of $2.0 million, or $0.13 per share, compared to a net loss of $77,000 or $0.01 per share a year ago.
Quarter over quarter, iTurf's traffic grew 64.0% to 82 million-page views in the month of July, compared to 50 million page views in April 1999. That traffic is up from 16 million page views in July 1998. The Company also reported 1,284,000 unique visitors in July, as measured by Media Metrix, compared to 731,000 unique visitors in April. Finally, cumulative commerce customers increased 36.1% during the second quarter to approximately 90,000 from approximately 66,000 as of May 1, 1999.
Commenting on the results, Stephen Kahn, President and Chief Executive Officer, stated, ''Our second quarter results demonstrate the momentum underlying our business and highlight the vibrancy of the Gen Y demographic online. During the quarter, our revenues grew nearly fourfold, reflecting sizable increases at our seven e- commerce properties and solid gains in non-commerce revenue. More importantly, our user metrics continued to experience significant growth across all key measures. Page views surpassed 80 million in July and unique visitors, as measured by Media Metrix, to the iTurf network approached 1.3 million, reflecting the success of our brand building efforts.''
''We are thrilled with the progress we are making in the execution of our aggressive growth strategies. New initiatives include our comprehensive marketing alliance with America Online as well as our partnerships with Generation Y focused companies like RocketCash and DoughNET. We're also excited about our pending acquisition of OnTap.com, a leading college hub. This transaction will expand our community and content offerings by giving us a stronghold in the college market and will add a powerful advertising complement to our robust e-commerce engine.''
In connection with its previously announced acquisition of OnTap.com, the Company has revised its expectations for fiscal 1999 and fiscal 2000 to reflect higher revenues and operating expenditures. For the second half of 1999, the Company expects the acquisition will add incremental revenues of 12%-15% above internal plan and operating expenses, excluding depreciation and amortization, of $6-7 million. In 2000, the Company expects incremental revenues of 15%-20% above internal plan and operating expenses, excluding depreciation and amortization, of $11-13 million.
Mr. Kahn concluded, ''Looking ahead, we will continue to leverage the community, content and commerce services on the iTurf network to meet the varying needs of the Gen Y market. We believe that our growth in traffic and unique visitors through the first half of 1999 underscores our strength in the race to become the premier online destination for Generation Y.''
iTurf Inc. is a leading online destination for Generation Y. Through its network of websites, iTurf provides community, content and commerce services by offering interactive magazines, proprietary content, chat rooms, posting boards, personal homepages, e-mail, and online shopping. The company's network of websites includes dELiAs.cOm, gURL.com, TSISoccer.com, contentsonline.com, discountdomain.com, droog.com, dotdotdash.com and StorybookHeirlooms.com. iTurf Inc. is a subsidiary of dELiA*s Inc. (Nasdaq:DLIA - news).
With the exception of the historical information contained in this press release, the matters described herein contain forward- looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding revenues and expenses in future periods. Forward-looking statements involve a number of risks, uncertainties and other factors beyond the Company's control, which may cause material differences in actual results, performance or other expectations. These factors are detailed in the Company's registration statement on Form S-1 filed with the Securities and Exchange Commission.
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iTurf Inc.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share data) (unaudited)
Thirteen Three Twenty-six Six Months
Weeks Months Weeks Months
Ended Ended Ended Ended
7/31/99 7/31/98 7/31/99 7/31/98
Net revenues $ 2,952 $ 760 $ 5,567 $ 829 Cost of product sales 1,651 339 2,983 374 Gross profit 1,301 421 2,584 455
Selling, general and
administrative expenses 4,052 445 5,805 554 Interest (income) expense (989) 11 (1,101) 22 Loss before income taxes (1,762) (35) (2,120) (121) Income tax benefit -- (11) (161) (44) Net loss $(1,762) $ (24) $ (1,959) $ (77)
Basic and diluted net
loss per share $ (0.10) $ (0.00) $ (0.13) $ (0.01)
Shares used in the
calculation of basic and
diluted net loss
per share 17,331 12,500 15,372 12,500
iTurf Inc.
SELECTED BALANCE SHEET DATA
(In thousands) (unaudited)
July 31, 1999 January 31, 1999 Assets Current Assets
Cash and cash equivalents $ 22,422 $ 375
Short-term investments 55,517 --
Prepaid expenses and
other current assets 1,840 --
Total current assets 79,779 375
Deferred offering costs -- 110 Property and equipment, net 1,868 414 Other assets 313 317
Total assets $ 81,960 $ 1,216
Liabilities and Stockholders' Equity Current Liabilities
Accounts payable and other
current liabilities $ 1,207 $ 263
Due to dELiA*s 2,632 573
Total current liabilities 3,839 836
Stockholders' equity 78,121 380
Total liabilities and
stockholders' equity $ 81,960 $ 1,216
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