Ashford's goal is proforma operating
profit for Q4 2001. Sound familiar?
although
Ashford.com, Inc.
Consolidated Statements of Operations
In thousands, except per share data
(Unaudited)
Three Months Ended Year Ended
March 31, March 31,
2001 2000 2001 2000
Historical
Net sales $14,328 $11,804 $67,195 $39,931
Cost of sales 13,485 9,630 56,348 33,487
Gross profit (A) 843 2,174 10,847 6,444
Operating expenses:
Marketing and sales
(includes non-cash
amortization of $0,
$25,513, $79,735 and
$27,525, respectively) 5,266 35,384 105,895 60,806
General and
administrative
(includes non-cash
amortization of $20,
$847, $2,633 and
$3,003, respectively) (B) 7,001 6,705 27,929 17,093
Restructuring charge 662 --- 662 ---
Impairment loss 1,094 --- 1,094 ---
Depreciation and
amortization 3,844 2,159 13,460 3,277
Total operating
expenses 17,867 44,248 149,040 81,176
Loss from operations (17,024) (42,074) (138,193) (74,732)
Interest income, net 23 782 1,512 2,670
Net loss $(17,001) $(41,292) $(136,681) $(72,062)
Net loss per share,
basic and diluted $(0.37) $(0.92) $(2.99) $(2.65)
Shares used to compute
net loss per share:
Basic and diluted 46,456 44,909 45,725 27,197
Supplemental Information (C)
Net loss, excluding
inventory valuation
charge, contingency
settlement,
restructuring charge,
impairment loss,
depreciation and
amortization $(9,181) $(12,773) $(36,897) $(38,257)
Net loss per share,
excluding inventory
valuation charge,
contingency settlement,
restructuring charge,
impairment loss,
depreciation and
amortization, basic
and diluted $(0.20) $(0.28) $(0.81) $(1.41)
(A) Includes the reclassification of certain promotional costs from
marketing and sales to cost of sales related to the adoption of the
Emerging Issues Task Force Issue No. 00-14, "Accounting for Certain
Sales Incentives." All periods presented have been reclassified for
consistent presentation. Also includes a charge of approximately
$1.8 million during the quarter ended March 31, 2001 relating to
inventory valuation reserves.
(B) Includes non-recurring charges of approximately $400,000 related to a
contingent settlement of litigation.
(C) The accompanying supplemental financial information is presented for
informational purposes only and should not be considered as a
substitute for the historical financial information presented in
accordance with generally accepted accounting principles.
Ashford.com, Inc.
Condensed Consolidated Balance Sheets
In thousands
(Unaudited)
March 31, December 31,
2001 2000
Assets
Current assets:
Cash and cash equivalents $7,095 $12,897
Restricted cash 1,500 1,770
Accounts receivable, net 2,559 4,823
Merchandise inventory, net 24,066 26,893
Prepaids and other 1,535 3,176
Total current assets 36,755 49,559
Property and equipment, net 8,441 9,971
Other assets 11,070 12,445
Total assets $56,266 $71,975
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $8,189 $12,622
Revolving credit facility 4,705 ---
Other liabilities 104 111
Total liabilities 12,998 12,733
Stockholders' equity 43,268 59,242
Total liabilities and stockholders' equity $56,266 $71,975
Here is the good part. Ashford in fiscal March
2001 had total sales (revenue) of $67 million
and loss from operations of $138 million.
How does a company do that??? |
