(BSNS WIRE) PurchasePro Achieves Cash EPS of $0.11; Revenue Exceeds Prior T
PurchasePro Achieves Cash EPS of $0.11; Revenue Exceeds Prior Three Quarters
Combined
Business Editors
LAS VEGAS--(BUSINESS WIRE)--Feb. 12, 2001--PurchasePro.com Inc.
(Nasdaq:PPRO), 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). PurchasePro's existing relationships with AOL Time
Warner (NYSE: AOL), Computer Associates (NYSE: CA), Gateway (NYSE:
GTW), Sprint (NYSE: FON), Hilton (NYSE: HLT) and Office Depot (NYSE:
ODP) 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), 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.
NOTE TO EDITORS: PurchasePro is a servicemark of PurchasePro.com,
Inc. All other trademarks or registered trademarks are the property of
their respective owners. This press release includes forward-looking
statements which are subject to the "Safe Harbor" created by Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking
statements (which involve the company's plans, beliefs and goals,
refer to estimates or use similar terms) involve certain risks and
uncertainties, including the risks and uncertainties associated with
rapidly changing technologies such as the Internet, the risks of
technology development and the risks of competition that can cause
actual results to differ materially from those in the forward looking
statements. These forward-looking statements represent only the views
of certain members of management and do not necessarily represent a
consensus of all employees and managers within the company. Moreover,
those forward-looking statements are based on limited information
available to us now, which is subject to change. It should be clearly
understood that the factors and perceptions on which these
forward-looking statements are based are highly likely to change over
time and that we have no current plan to update these statements.
Actual results may differ substantially from what we say today and no
one should assume at a later date that the forward-looking statements
provided herein are still valid. They speak only as of today. For more
information about these risks and uncertainties, see the SEC filings
of PurchasePro, Inc., including the section entitled "Factors That May
Affect Results" in its 10-K filing for the period ended December 31,
1999 and its 10-Q for the quarter ended September 30, 2000, which is
available from the company on request and on the Internet at the SEC's
Website, www.sec.gov.
-0-
*T
PURCHASEPRO.COM INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31,
2000 1999
(In thousands)
ASSETS
Current assets
Cash and cash equivalents $ 86,335 $ 30,356
Trade accounts receivable, net 23,171 1,950
Other receivables 859 205
Prepaid expenses and other 9,378 551
Total current assets 119,743 33,062
Property and equipment
Computer and communication
equipment 49,620 8,650
Furniture and fixtures 2,327 890
Leasehold improvements 6,244 58
58,191 9,598
Less--accumulated depreciation
and amortization (7,940) (1,262)
Net property and equipment 50,251 8,336
Other assets 150,228 25,079
Total assets $ 320,222 $ 66,477
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 20,248 $ 2,847
Accrued liabilities 3,421 1,526
Deferred revenues 3,030 250
Current portion of long-term
liabilities 22,255 -
Total current liabilities 48,954 4,623
Long-term liabilities 10,348 -
Stockholders' equity
Common stock 667 564
Additional paid-in capital 414,667 137,488
Deferred stock-based
compensation (4,390) (3,941)
Accumulated deficit (151,552) (78,741)
Accumulated other comprehensive
income 1,528 6,484
Total stockholders' equity 260,920 61,854
Total liabilities and
stockholders' equity $ 320,222 $ 66,477
PURCHASEPRO.COM INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended, Twelve Months Ended,
December 31, December 31,
2000 1999 2000 1999
(In thousands except share and per share amounts)
Revenues
Network access fees $10,194 $ 1,592 $23,546 $ 4,092
Software license fees 22,045 -- 34,860 --
Advertising 1,117 888 3,219 1,142
Other 234 187 3,366 783
Total revenues 33,590 2,667 64,991 6,017
Cost of revenues 1,984 269 4,487 836
Gross profit 31,606 2,398 60,504 5,181
Operating expenses
Sales and marketing 13,540 3,813 42,321 9,217
Non-cash sales and
marketing expense 2,770 -- 3,665 --
General and administrative 8,586 4,386 26,416 9,026
Programming and development 2,887 835 8,850 2,366
Strategic marketing
expense 30,000 50,925 30,000 50,925
Amortization of stock-based
compensation 2,087 833 17,114 5,778
Impairment of assets 12,112 -- 12,112 --
Total operating
expenses 71,982 60,792 140,478 77,312
Operating loss (40,376) (58,394) (79,974) (72,131)
Other income (expense)
Interest income (expense),
net 962 550 4,507 469
Other 2,656 -- 2,656 (279)
Total other income
(expense) 3,618 550 7,163 190
Net loss before benefit
for income taxes (36,758) (57,844) (72,811) (71,941)
Benefit for income taxes -- -- -- --
Net loss (36,758) (57,844) (72,811) (71,941)
Preferred stock dividends -- -- -- (511)
Accretion of preferred
stock to redemption value -- -- -- (131)
Value of preferred stock
beneficial conversion feature -- -- -- (9,400)
Net loss applicable to
common stockholders (36,758) (57,844) (72,811) (81,983)
Net loss per share
applicable to common
stockholders
Basic $ (0.55) $ (1.03) $ (1.15) $ (2.44)
Diluted $ (0.55) $ (1.03) $ (1.15) $ (2.39)
Weighted average number
of common shares
outstanding
Basic 66,376,800 56,125,350 63,399,358 33,597,568
Diluted 66,376,800 56,221,002 63,399,358 34,273,036
Excluding non-cash sales
and marketing expense;
strategic marketing expense;
amortization of stock-based
compensation; impairment of
assets and gain on sale
of investment:
Net Income / (Loss) $ 7,555 $ (6,086) $ (12,576) $ (15,238)
Basic $ 0.11 $ (0.11) $ (0.20) $ (0.45)
Diluted $ 0.11 $ (0.11) $ (0.20) $ (0.44)
*T
--30--JAP/la* slk/la rj/la wam/la
CONTACT: PurchasePro
Matthew Brimhall, 702/316-7000 (Media)
matthew.brimhall@purchasepro.com
Keith Jensen, 702/316-7000 (Investor Relations)
keith.jensen@purchasepro.com
or
Pondel/Wilkinson
Steve Stern, 310/207-9300
sstern@pondel.com
KEYWORD: NEVADA
INDUSTRY KEYWORD: E-COMMERCE SOFTWARE COMPUTERS/ELECTRONICS
EARNINGS
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
*** end of story *** |
