Amazon. com Inc.
Consolidated Statements of Operations
(in thousands, except per share amounts)
CY97 CY98 CY99 Years Ended
March June Sept Dec March June Sept Dec March June Sept Dec Dec Dec Dec Dec
1Q97A 2Q97A 3Q97A 4Q97A 1Q98A 2Q98A 3Q98E 4Q98E 1Q99E 2Q99E 3Q99E 4Q99E 1997 1998 1999 2000
Net sales $16,005 $27,855 $37,887 $66,011 $87,375 $115,977 $125,835 $144,710 $157,010 $167,216 $185,609 $211,387 $147,758 $473,897 $721,222 $971,246
Cost of sales 12,484 22,633 30,709 53,119 68,054 89,786 97,396 112,006 120,898 128,087 141,805 160,654 118,945 367,242 551,445 726,006
Gross profit 3,521 5,222 7,178 12,892 19,321 26,191 28,439 32,704 36,112 39,129 43,804 50,733 28,813 106,655 169,777 245,240
Operating expenses:
Marketing and sales 3,906 7,773 10,979 16,306 19,503 26,452 35,850 39,960 39,802 40,383 42,968 47,351 38,964 121,765 170,504 194,249
Product development 1,575 2,808 3,582 4,520 6,729 8,060 11,550 11,625 11,854 12,040 12,065 12,683 12,485 37,964 48,642 48,562
General & administrative 1,142 1,708 1,803 1,920 1,963 3,262 4,175 4,597 4,632 4,598 4,547 4,439 6,573 13,997 18,217 19,425
Amortization of goodwill 5,413 7,200 7,200 7,200 7,200 7,200 7,200 19,813 28,800 9,000
Total operating expenses 6,623 12,289 16,364 22,746 28,195 43,187 58,775 63,382 63,488 64,221 66,780 71,673 58,022 193,539 266,162 271,236
Loss from operations $( 3,102) $( 7,067) $( 9,186) $( 9,854) $( 8,874) $( 16, 996) $( 30, 336) $( 30, 678) $( 27, 376) $( 25, 092) $( 22, 977) $( 20, 940) $( 29, 209) $( 86, 884) $( 96, 385) $( 25, 997)
Excluding amortization of
goodwill
(8,874) (11,583) (23,136) (23,478) (20,176) (17,892) (15,777) (13,740) (29,209) (67,071) (67,585) (16,997)
Interest income 64 362 676 517 1,640 3,334 4,249 4,186 4,124 4,061 3,999 3,936 1,619 13,409 16,120 14,746
Interest expense (2,025) (7,564) (8,500) (8,700) (8,900) (9,100) (9,300) (9,500) (26,789) (36,800) (40,000)
Net interest income
(expense)
64 362 676 517 (385) (4,230) (4,251) (4,514) (4,776) (5,039) (5,301) (5,564) 1,619 (13,380) (20,680) (25,254)
Net income (loss) $( 3,038) $( 6,705) $( 8,510) $( 9,337) $( 9,259) $( 21, 226) $( 34, 587) $( 35, 192) $( 32, 152) $( 30, 131) $( 28, 278) $( 26, 504) $( 27, 590) $( 100,264) $( 117,065) $( 51, 251)
Excluding amortization of
goodwill
(9,259) (15,813) (27,387) (27,992) (24,952) (22,931) (21,078) (19,304) (27,590) (80,451) (88,265) (42,251)
Basic and diluted loss per
share
$( 0.08) $( 0.16) $( 0.19) $( 0.20) $( 0.20) $( 0.44) $( 0.69) $( 0.69) $( 0.62) $( 0.58) $( 0.54) $( 0.50) $( 0.64) $( 2.05) $( 2.23) $( 0.94)
Excluding amortization of
goodwill
$( 0.33) $( 0.55) $( 0.55) $( 0.48) $( 0.44) $( 0.40) $( 0.36) $( 0.64) $( 1.64) $( 1.68) $( 1.64)
Shares used in
computation of basic
38,806 42,614 45,726 46,042 46,622 47,977 50,000 51,300 51,800 52,300 52,800 53,300 43,297 48,975 52,550 54,550
and diluted loss per share
Revenue Growth
Sequential 74.0% 36.0% 74.2% 32.4% 32.7% 8.5% 15.0% 8.5% 6.5% 11.0% 13.9%
Year- over- Year 445.9% 316.4% 232.1% 119.2% 79.7% 44.2% 47.5% 46.1% 270.2% 59.2% 44.4%
Annual run rate $64,020 $111,420 $151,548 $264,044 $349,500 $463,908 $503,340 $578,840 $628,040 $668,864 $742,436 $845,548
Margin Analysis
Gross margin 22.0% 18.7% 18.9% 19.5% 22.1% 22.6% 22.6% 22.6% 23.0% 23.4% 23.6% 24.0% 19.5% 22.5% 23.5% 25.3%
Operating margin -19.4% -25.4% -24.2% -14.9% -10.2% -14.7% -24.1% -21.2% -17.4% -15.0% -12.4% -9.9% -19.8% -14.2% -9.4% -1.8%
Percentage of Revenues
Cost of revenues 78.0% 81.3% 81.1% 80.5% 77.9% 77.4% 77.4% 77.4% 77.0% 76.6% 76.4% 76.0% 80.5% 77.5% 76.5% 74.8%
S& M 24.4% 27.9% 29.0% 24.7% 22.3% 22.8% 28.5% 27.6% 25.4% 24.2% 23.2% 22.4% 26.4% 25.7% 23.6% 20.0%
R& D 9.8% 10.1% 9.5% 6.8% 7.7% 6.9% 9.2% 8.0% 7.6% 7.2% 6.5% 6.0% 8.4% 8.0% 6.7% 5.0%
G& A 7.1% 6.1% 4.8% 2.9% 2.2% 2.8% 3.3% 3.2% 3.0% 2.8% 2.5% 2.1% 4.4% 3.0% 2.5% 2.0%
Source: Amazon. com and Merrill Lynch estimates.
Amazon.com Inc - 1 September 1998
Merrill has a projected loss of $1.64 per share through the year 2000 as you can see.
Maybe the loss could decrease to $150 per share in 2001?? Not likely
since more cash will be needed.
Glenn |
