--------------------------------------------------------------------------------------------------------
SEPTEMBER 30, DECEMBER 31,
1998 1997
--------------------------------------------------------------------------------------------------------
(unaudited)
ASSETS
Current assets:
Cash .......................................................... $ 14,856 $ 1,876
Marketable securities ......................................... 322,404 123,499
Inventories ................................................... 19,772 8,971
Prepaid expenses and other .................................... 17,625 3,363
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Total current assets .................................. 374,657 137,709
Fixed assets, net ............................................... 23,821 9,726
Deposits and other .............................................. 582 169
Goodwill and other purchased intangibles, net ................... 213,064 --
Deferred charges ................................................ 7,590 2,240
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Total assets .......................................... $ 619,714 $ 149,844
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable .............................................. $ 60,046 $ 33,027
Accrued advertising ........................................... 11,857 3,454
Other liabilities and accrued expenses ........................ 26,868 6,570
Current portion of long-term debt ............................. 684 1,500
------------- -------------
Total current liabilities ............................. 99,455 44,551
Long-term debt .................................................. 340,392 76,521
Long-term portion of capital lease obligation ................... 103 181
Stockholders' equity:
Preferred stock, $0.01 par value:
Authorized shares -- 10,000,000
Issued and outstanding shares -- none ...................... -- --
Common stock, $0.01 par value:
Authorized shares -- 300,000,000
Issued and outstanding shares -- 52,725,622 and 48,302,958
shares, respectively ....................................... 527 483
Additional paid-in capital .................................... 298,322 67,552
Note receivable from officer for common stock ................. (1,099) --
Deferred compensation ......................................... (2,943) (1,930)
Accumulated other comprehensive income ........................ 590 --
Accumulated deficit ........................................... (115,633) (37,514)
------------- -------------
Total stockholders' equity ............................ 179,764 28,591
------------- -------------
Total liabilities and stockholders' equity ......... $ 619,714 $ 149,844
============= =============
See accompanying notes to condensed consolidated financial statements.
Page 3
AMAZON.COM, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
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QUARTER ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------------------------------------------------------
1998 1997 1998 1997
----------------------------------------------------------------------------------------------------------------------------------
Net sales .......................................... $ 153,698 $ 37,887 $ 357,103 $ 81,747
Cost of sales ...................................... 118,823 30,717 276,679 65,842
------------- ------------- ------------- -------------
Gross profit ....................................... 34,875 7,170 80,424 15,905
Operating expenses:
Marketing and sales ............................. 37,517 11,516 84,522 23,596
Product development ............................. 13,374 3,998 29,526 8,650
General and administrative ...................... 4,978 1,972 10,342 4,930
Merger and acquisition related costs ............ 20,512 -- 25,925 --
------------- ------------- ------------- -------------
Total operating expenses ..................... 76,381 17,486 150,315 37,176
Loss from operations ............................... (41,506) (10,316) (69,891) (21,271)
Interest income .................................... 4,754 688 9,789 1,118
Interest expense ................................... (8,419) (19) (18,017) (59)
------------- ------------- ------------- -------------
Net interest income (expense) ................ (3,665) 669 (8,228) 1,059
Net loss ........................................... $ (45,171) $ (9,647) $ (78,119) $ (20,212)
============= ============= ============= =============
Basic and diluted loss per share ................... $ (0.90) $ (0.21) $ (1.60) $ (0.48)
============= ============= ============= =============
Shares used in computation of basic and diluted
loss per share .................................. 50,234 45,865 48,700 42,438
============= ============= ============= =============
See accompanying notes to condensed consolidated financial statements. |
