Bidz.com Reports Financial Results for the First Quarter 2012
11 Maggio 2012 - 10:00PM
Bidz.com (Nasdaq:BIDZ), a leading online retailer of jewelry,
announced results for the first quarter ended March 31, 2012.
Net revenues for the first quarter of 2012 were $18.1 million, a
decrease of 27.1% from the $24.9 million reported in the first
quarter of 2011. During the first quarter Bidz.com represented
$13.0 million of the total net revenue, and Modnique.com
represented $5.1 million, compared with $22.8 million, and $2.1
million, respectively in the same periods last year. The
significant 145% year-over-year increase in net revenues for
Modnique.com reflects the strong growth in demand for its
affordable brand name merchandise. Bidz.com revenues continued to
decline this quarter due to lower demand for discretionary items,
specifically jewelry and luxury brand name items.
The percentages of the Company's domestic and international
sales for the first quarter 2012 were 52% and 48%, respectively.
Canada and Australia were the Company's top two international
markets representing 18.2% and 16.8%, respectively.
Gross profit for the first quarter was approximately $5.4
million, compared with $7.0 million in the first quarter of 2011.
Gross margin increased to 29.6% compared to 28.0% in the first
quarter of 2011, representing an increase of approximately 160
basis points. The increase in gross margin percentage was due to
several factors including improved quality of the inventory, higher
margin product mix and reduced free shipping promotions.
"2012 continues to be a challenging year, particularly for
Bidz.com," said David Zinberg, the Company's Chief Executive
Officer. "We are encouraged by the significant growth in Modnique
as we remain focused on both our businesses. We are working to
enhance our product assortment and overall shopping experience, as
we continue to carefully manage our operating expenses."
| Sales Metrics (1) |
Three Months Ended March
31, |
| |
2012 |
2011 |
% Change |
| Average selling price per order
(gross) |
$177 |
$187 |
-5.4% |
| Number of new buyers |
30,010 |
40,711 |
-26.3% |
| Average orders per day |
1,317 |
1,550 |
-15.0% |
| Average items sold per day |
4,427 |
6,110 |
-27.6% |
| Average items sold per transaction |
3.4 |
3.9 |
-12.8% |
| Acquisition cost per new buyer |
$58 |
$40 |
45.0% |
| Gross Margin $ per average order |
$52 |
$52 |
0.0% |
| |
|
|
|
| (1) Wholesale merchandise
sales and Modnique.com sales are included in the sales metrics |
|
|
|
General and administrative expenses for the first
quarter 2012 decreased 11.9% to $5.0 million compared with $5.7
million in the first quarter of 2011. Sales and marketing expense
for the first quarter 2012 slightly increased to $1.7 million
compared with $1.6 million in the first quarter of 2011. Total
operating expenses in the first quarter 2012 decreased 8.1% to $6.8
million compared with $7.4 million in the prior year period.
Net loss for the first quarter of 2012 was $1.5
million, or $0.08 per fully diluted share, on 18.4 million weighted
average diluted shares outstanding. This is compared to net loss of
$382,000, or $0.02 per fully diluted share, on 19.4 million
weighted average diluted shares outstanding in the same period of
2011.
The Company ended the first quarter 2012 with $1.6 million in
cash and $21.0 million in working capital with a zero debt balance.
The Company believes that cash currently on hand and cash flows
from operations will be sufficient sources of capital to continue
funding its operations for the foreseeable future.
Investor Conference Call
Bidz.com will not conduct an earnings conference call for the
first quarter ending March 31, 2012. For further questions, please
contact Andrew Greenebaum at andrewg@addocommunications.com.
About Bidz.com
Bidz.com, founded in 1998, is a leading online retailer of
jewelry. Bidz offers its products through a live auction format,
[as well as a fixed price online retail store, Buyz.com.] Bidz also
operates Modnique.com, a division of Bidz.com, a flash sale
shopping website, offering authentic premium brand name
merchandise. Modnique offers its members exclusive access to 24-72
hour sales events on designer apparel, accessories, shoes, and
housewares and much more at price points up to 85% below
traditional retail prices.
Safe Harbor Statement
This press release includes forward looking statements about the
Company's estimated revenue and earnings within the meaning of the
Private Securities Litigation Reform Act of 1995. All statements
other than statements of historical facts contained in this
release, including statements regarding the Company's future
financial position, business strategy and plans and objectives of
management for future operations, are forward-looking statements.
The words "believe," "may," "will," "estimate," "continue,"
"anticipate," "intend," "expect," and similar expressions, as they
relate to the Company, are intended to identify forward-looking
statements. We have based these forward-looking statements largely
on current expectations and projections about future events and
financial trends that we believe may affect the Company's financial
condition, results of operations, business strategy and financial
needs. Risks and uncertainties include that our common stock is
subject to short-selling and trading, and prices of our stock may
be volatile; that we are subject to "prank" bidding; that we may
face increasing costs to acquire new customers; the ability of the
Company to attract customers to its website and offer attractive
products; the ability to maintain profit levels while expanding
international sales; the ability to detect fraud if we fail to
maintain an effective system of internal controls; the ability to
maintain our website, electronic data processing systems, and
systems hardware; the ability to forecast accurately net revenue
and plan for expenses; that we do not have a guaranteed supply of
jewelry products and that we have a heavy concentration of
inventory purchased from our top two suppliers; the ability to
protect our intellectual property rights; and potential litigation
and government enforcement actions that may result from our prior
securities offerings. Please refer to Bidz.com's reports and
filings with the Securities and Exchange Commission for a further
discussion of these risks and uncertainties. Readers are cautioned
not to place undue reliance on forward-looking statements, which
speak only as of the date they are made. Bidz.com undertakes no
obligation to update publicly any forward-looking statements to
reflect new information, events or circumstances after the date
they were made or to reflect the occurrence of unanticipated
events.
| |
|
|
| Bidz.com, Inc. |
|
|
| Condensed Consolidated Balance
Sheets |
|
|
| (in thousands, except share and per share
data) |
|
|
| |
|
|
| |
December 31, |
March 31, |
| |
2011 (1) |
2012 |
| |
|
(Unaudited) |
| Assets |
|
|
| Current assets: |
|
|
| Cash |
$ 1,192 |
$ 1,591 |
| Accounts receivable |
2,746 |
2,062 |
| Inventories, net of reserves of
$1,112 and $1,169 at December 31, 2011 and March 31,
2012, respectively |
29,714 |
26,434 |
| Other receivables (includes
related party amounts of $186 and $186 at December 31, 2011
and March 31, 2012, respectively) |
796 |
627 |
| Other current assets |
2,487 |
3,201 |
| Total current assets |
36,935 |
33,915 |
| Property and equipment, net |
369 |
262 |
| Intangible asset, net |
319 |
316 |
| Total assets |
$ 37,623 |
$ 34,493 |
| |
|
|
| Liabilities and Stockholders'
Equity |
|
|
| Current liabilities: |
|
|
| Accounts payable (includes
related party amounts of $2,884 and $1,844 at December 31,
2011 and March 31, 2012, respectively) |
$ 11,013 |
$ 9,340 |
| Accrued expenses |
2,273 |
2,208 |
| Deferred revenue |
1,457 |
1,363 |
| Total current liabilities |
14,743 |
12,911 |
| |
|
|
| Contingencies |
|
|
| |
|
|
| Stockholders' equity: |
|
|
| Preferred stock: par value
$0.001; authorized 4,000,000 shares; none issued and outstanding at
December 31, 2011 and March 31, 2012, respectively |
— |
— |
| Common stock: par value $0.001;
authorized 100,000,000 shares; issued and outstanding 18,379,045
and 18,378,795 at December 31, 2011 and March 31, 2012,
respectively |
18 |
18 |
| Additional paid in capital |
18,528 |
18,708 |
| Accumulated earnings |
4,334 |
2,856 |
| Total stockholders' equity |
22,880 |
21,582 |
| |
|
|
| |
$ 37,623 |
$ 34,493 |
| |
|
|
| |
|
|
| Bidz.com, Inc. |
|
|
| Condensed Consolidated Statements of
Operations (Unaudited) |
|
|
| (in thousands, except share and per share
data) |
|
|
| |
|
|
| |
Three Months Ended March 31, |
| |
2011 |
2012 |
| Net revenue: |
|
|
| Merchandise sales |
$ 23,109 |
$ 16,846 |
| Wholesale merchandise sales
(includes related party amounts of $995 and $882 for the three
months ended March 31, 2011 and 2012, respectively) |
1,637 |
1,229 |
| Other revenue |
151 |
65 |
| |
24,897 |
18,140 |
| Cost of revenue |
17,923 |
12,778 |
| Gross Profit |
6,974 |
5,362 |
| Operating expenses: |
|
|
| General and administrative |
5,666 |
4,993 |
| Sales and marketing |
1,643 |
1,734 |
| Depreciation and
amortization |
131 |
110 |
| Total operating expenses |
7,440 |
6,837 |
| Loss from operations and before income tax
benefit (expense) |
(466) |
(1,475) |
| Income tax benefit (expense) |
84 |
(3) |
| Net loss |
$ (382) |
$ (1,478) |
| |
|
|
| Net loss per share available to common
shareholders – basic and diluted |
$ (0.02) |
$ (0.08) |
| Weighted average number of shares outstanding
– basic and diluted |
19,376,177 |
18,379,040 |
| |
| |
|
Bidz.com, Inc. |
| Condensed Consolidated
Statements of Cash Flows (Unaudited) |
| (in thousands) |
| |
|
|
| |
Three Months Ended March 31, |
| |
2011 |
2012 |
| Cash flows provided by (used for)
operating activities: |
|
|
| Net loss |
$ (382) |
$ (1,478) |
| |
|
|
| Adjustments to
reconcile net loss to net cash provided by (used
for) operating activities: |
|
|
| Depreciation and
amortization |
131 |
110 |
| Stock-based compensation |
214 |
180 |
| Deferred taxes |
(74) |
— |
| Changes in assets and
liabilities: |
|
|
| (Increase) decrease in
assets: |
|
|
| Accounts receivable |
191 |
684 |
| Inventories |
(3,718) |
3,280 |
| Other receivables |
664 |
169 |
| Other current assets |
(252) |
(714) |
| Deposits |
(141) |
— |
| Increase (decrease) in
liabilities: |
|
|
| Accounts payable |
210 |
(1,673) |
| Accrued expenses |
(324) |
(65) |
| Deferred revenue |
(603) |
(94) |
| Net cash provided by (used for)
operating activities |
(4,084) |
399 |
| |
|
|
| Cash flows used for investing
activities: |
|
|
| Capital expenditures |
(198) |
— |
| Net cash used for investing
activities |
(198) |
— |
| |
|
|
| Cash flows used for financing
activities: |
|
|
| Tax benefit from stock based
compensation |
(8) |
— |
| Net cash used for financing
activities |
(8) |
— |
| |
|
|
| Net increase (decrease) in
cash |
(4,290) |
399 |
| Cash, beginning of
period |
8,074 |
1,192 |
| Cash, end of period |
$ 3,784 |
$ 1,591 |
| |
|
|
| Supplemental disclosure of non-cash
investing and financing activities: |
|
|
| Retirement of treasury
shares |
$ 212 |
$ — |
CONTACT: IR Contact:
Addo Communications, Inc.
Andrew Greenebaum, (310) 829-5400
andrewg@addocommunications.com
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