(PR NEWSWIRE) PopMail.com, Inc. Announces Second Quarter Results
PopMail.com, Inc. Announces Second Quarter Results
Internet Revenue Increases More Than 200% From First Quarter
DALLAS, Aug. 17 /PRNewswire/ -- PopMail.com, Inc. (Nasdaq: POPM), a
leading permission and affinity-based content and e-mail marketing company,
today announced results for the second quarter ended July 2, 2000.
The Company's Internet marketing division reported second quarter revenue
of $808,000. This represents an increase in revenue over the quarter ended
April 2, 2000, of $430,000, a 215% gain and more than a 280% quarter over
quarter revenue increase since the division was launched in 1999.
For the quarter ended July 2, 2000, the Company's restaurant division
reported net sales of $2.4 million, a decrease of 33 percent from net sales of
$3.6 million reported for the quarter ended July 4, 1999. The restaurant
division's net sales for the twenty-six weeks ended July 2, 2000, and July 4,
1999, were $4.8 million and $5.9 million, respectively, representing a 19%
decrease of $1.1 million. The decrease for both periods is primarily
attributable to the fact that only two restaurants were in operation during
the second quarter of 2000 versus three restaurants in operation during the
second quarter of 1999.
Aggressive expansion, working capital requirements for the development of
new e-mail marketing services, and expenses related to acquisitions were
significant elements of cash flows and operating results in the second
quarter.
Gary Schneider, Chief Executive Officer of PopMail.com, said, "The
increase in the Internet marketing division's revenue in the second quarter,
along with the acquisition of Fan Asylum, Inc. on June 14th, reinforces the
Company's leadership position in Internet affinity-based marketing. We expect
our growing client base and incremental revenues from Fan Asylum, Inc. to
allow the Company to maintain a similar pace in revenue growth going forward."
For the quarter ended July 2, 2000, PopMail.com reported a net loss,
excluding acquisition and development costs, depreciation, amortization and
non-operating costs, of $2.8 million. Acquisition and development costs
amounted to $600,000, depreciation amounted to $300,000, amortization of
goodwill amounted to $7.1 million and non-operating losses amounted to
$2.6 million. When combined, total net loss for the quarter ended July 2,
2000, amounted to $13.4 million or $0.36 per share, compared to a loss of
$900,000 or $0.11 per share, for the quarter ended July 4, 1999.
About PopMail.com, Inc.
PopMail.com, Inc. is a permission marketing and affinity-based e-mail
marketing company headquartered in Irving, Texas. Through its three wholly
owned subsidiaries: Fan Asylum in San Francisco, Iz.com in Seattle, and
PopMail Network in Irving, it serves the needs of individual businesses in a
one-on-one relationship with its customers. The Company targets four main
vertical markets for its network services: broadcast, media, sports, and
entertainment. Clients include the 1999 Stanley Cup Champion Dallas Stars,
the 1999 NBA Champion San Antonio Spurs, Disney, NBC, and others. Combining
these e-mail solutions allows companies to cut through the clutter and
inefficiencies of traditional marketing and begin promoting and effectively
branding the topics and items of interest to their viewers, listeners, fans
and customers.
PopMail.com owns and operates two full-service Cafe Odyssey restaurants,
one in the Mall of America, located in Bloomington, Minnesota, and the second
at the Denver Pavilions, located in the downtown district of Denver, Colorado.
The Private Securities Litigation Reform Act of 1995 provides a "safe-
harbor" for forward-looking statements. Certain information included in this
press release (as well as information included in oral statements or other
written statements made by or to be made by the Company) contains statements
that are forward-looking, such as statements relating to plans for future
expansion. Such forward-looking information involves important risks and
uncertainties that could significantly affect anticipated results in the
future; and accordingly, such results may differ from those expressed in any
forward-looking statement made by or on behalf of the Company. These risks
and uncertainties include, but are not limited to, completion of definitive
purchase agreements, ability to obtain needed capital, ability to attract and
retain key and other personnel, those relating to development activities,
dependence on existing management, leverage and debt service, domestic or
global economic conditions, and changes in customer preferences and attitudes.
For more information, review the Company's filings with the Securities and
Exchange Commission.
FOR MORE INFORMATION CONTACT:
PopMail.com, Inc.
Adrienne Campbell
Tel: 972-550-5589
adrienne.Campbell@us.popmail.com
POPMAIL.COM, INC.
CONSOLIDATED BALANCE SHEETS
July 2, 2000 January 2, 2000
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and equivalents $1,685,795 $ 1,136,137
Restricted cash 2,000,000 ---
Accounts receivable, net 694,150 275,655
Notes receivable 94,000 ---
Inventories 97,133 111,807
Other current assets 710,678 483,496
Total current assets 5,281,756 2,007,095
PROPERTY AND EQUIPMENT, net 15,001,167 14,866,802
GOODWILL, net 84,355,554 36,277,346
OTHER ASSETS 2,469,732 344,121
$107,108,209 $53,495,364
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $ 2,079,596 $ 6,037,518
Convertible promissory notes payable 2,849,167 1,460,417
Current maturities of long-term debt 176,468 193,833
Accounts payable 1,924,432 1,604,952
Due to affiliates 152,700 120,000
Accrued expenses 1,456,884 1,286,852
Earn Out Shares Liability 7,000,000 ---
Total current liabilities 15,639,247 10,703,572
DEFERRED RENT CREDITS 3,531,778 3,650,512
LONG-TERM OBLIGATIONS,
less current maturities 484,370 1,883,688
Total liabilities 19,655,395 16,237,772
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Common stock, $.01 par value, 100,000,000
shares authorized; 39,945,306 and
24,695,872 shares issued and outstanding 399,453 246,958
Series C 8% convertible preferred stock --- 693,000
Series D 8% convertible preferred stock --- 2,288,000
Series E convertible preferred stock 450,000 350,000
Series F preferred stock 48,640,477 ---
Series G 10% convertible
redeemable preferred stock 6,000,000 ---
Additional paid-in capital 97,673,303 74,901,160
Less common stock subscribed
and notes receivable from affiliates (3,193,430) (2,850,000)
Accumulated deficit (62,516,989) (38,371,526)
Total shareholders' equity 87,452,814 37,257,592
$107,108,209 $53,495,364
The accompanying condensed notes are an integral part of these financial
statements.
POPMAIL.COM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Thirteen weeks ended Twenty-six weeks ended
July 2, July 4, July 2, July 4,
2000 1999 2000 1999
REVENUES
Restaurant
sales, net $2,355,563 $3,561,023 $4,801,761 $5,893,655
Internet marketing
services, net 808,556 --- 1,185,961 ---
3,164,119 3,561,023 5,987,722 5,893,655
COSTS AND EXPENSES:
Restaurant food,
beverage and retail 633,984 919,446 1,257,645 1,526,033
Restaurant operating
expenses 1,856,440 2,498,330 3,546,505 4,214,633
Restaurant
depreciation 312,774 352,672 625,568 610,840
Amortization
of goodwill 7,057,721 --- 12,514,325 ---
Pre-opening expenses --- --- --- 572,932
General,
administrative
& development 4,086,714 480,530 7,530,010 960,776
Total costs and
expenses 13,947,633 4,250,978 25,474,053 7,885,214
LOSS FROM OPERATIONS (10,783,514) (689,955) (19,486,331) (1,991,559)
OTHER INCOME (EXPENSE)
Interest expense (992,121) (245,283) (1,581,081) (387,332)
Interest income 63,069 3,149 123,800 3,187
Debt guarantee costs --- --- (155,000) ---
Financial advisory
services (958,066) --- (2,185,144) ---
Loss on sale
of assets (761,707) --- (761,707) ---
(2,648,825) (242,134) (4,559,132) (384,145)
NET LOSS (13,432,339) (932,089) (24,045,463) (2,375,704)
PREFERRED STOCK
DIVIDENDS
AND ACCRETION 100,000 192,229 100,000 192,229
LOSS ATTRIBUTABLE
TO COMMON
SHAREHOLDERS $(13,532,339) $(1,124,318) $(24,145,463) $(2,567,933)
BASIC AND DILUTED
NET LOSS PER
COMMON SHARE $(0.36) $(0.11) $(0.70) $(0.29)
BASIC AND DILUTED
NET LOSS ATTRIBUTABLE
TO COMMON SHAREHOLDERS
PER COMMON SHARE $(0.36) $(0.13) $(0.70) $(0.31)
BASIC AND DILUTED
WEIGHTED AVERAGE
OUTSTANDING SHARES 37,311,939 8,332,239 34,441,027 8,193,858
The accompanying condensed notes are an integral part of these financial
statements.
SOURCE PopMail.com, Inc.
-0- 08/17/2000
/CONTACT: Adrienne Campbell of PopMail.com, Inc., 972-550-5589, or
adrienne.Campbell@us.popmail.com/
/Web site: equitymedia.com
(POPM)
CO: PopMail.com, Inc.
ST: Texas
IN: MLM RST
SU: ERN
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