Stamps.com Reports Fourth Quarter and Year-End 2001 Financial Results
Fourth Quarter EBITDA from Continuing Operations Positive; Scope of Beta Test for Generic Postage Expanded
SANTA MONICA, Calif. – February 12, 2002 – Stamps.comTM (Nasdaq: STMP) today announced financial results for the fourth quarter and fiscal 2001. In addition, the company unveiled that it has expanded the scope of the beta test of its generic postage product feature from 50 to 300 users based on positive initial customer feedback.
Fourth quarter highlights are as follows:
- Revenue in the fourth quarter of 2001 was $4.5 million and gross margin was 79%;
- Cash net loss from continuing operations, as defined below, was $0.3 million, or a loss of $0.01 on a per share basis;
- Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, as defined below, was a gain of $0.3 million for the fourth quarter of 2001; and
- Cash and cash equivalents, including restricted cash and long-term investments, ended the fourth quarter at $192.9 million, or $3.83 per weighted average share.
“We are proud of the progress we have made with our financial performance and excited about the promising initial feedback from the beta test of our generic postage product,” said president and CEO, Ken McBride. “When we began our drive to profitability in October 2000, the first goal we set was to reach EBITDA positive on continuing operations and we met that goal this quarter. With enhancements to our product line in 2002, including the generic postage product feature, we expect to continue to drive our business toward profitability.”
Cash net loss from continuing operations, which excludes amortization of goodwill, deferred compensation, restructuring and write down charges, loss from the sale of iShip, and losses or gains from Encryptix, was $0.3 million for the fourth quarter of 2001. This compares to a loss of $1.9 million in the third quarter of 2001 and a loss of $29.0 million in the fourth quarter of 2000, measured on the same basis. On a per share basis, the cash net loss from continuing operations for the fourth quarter 2001 was $0.01 per share based on the weighted average common shares outstanding of 50.3 million. This compares to a loss of $0.04 in the third quarter of 2001 and a loss of $0.60 in the fourth quarter of 2000, measured on the same basis.
Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, which excludes the same non-cash and other charges as outlined above, was a gain of $0.3 million for the fourth quarter of 2001. This compares to a loss of $2.4 million in the third quarter of 2001 and a loss of $29.5 million in the fourth quarter of 2000, measured on the same basis. For the fourth quarter of 2001, Stamps.com acquired 27 thousand gross customers and ended the quarter at 280 thousand customers.
On January 10, Stamps.com launched the beta test of its generic postage technology. The technology allows customers to print sheets of generic postage that are not tied to a destination address and have no expiration date, using special labels and any ordinary inkjet or laser printer. The company initially launched the test with 50 beta customers, but recently expanded the scope of the beta test to include 300 customers. Initial customer feedback has been positive.
For the fiscal year ending December 31, 2001, revenue was $19.4 million, and gross margin was 59%. Cash net loss from continuing operations, as defined above, was a loss of $16.5 million for fiscal year 2001; this compares to a loss of $122.7 million for fiscal year 2000, measured on the same basis. On a per share basis, cash net loss from continuing operations for fiscal year 2001 was $0.33 per share based on the weighted average common shares outstanding of 50.6 million; this compares to a loss of $2.62 for fiscal 2000, measured on the same basis.
The company expects quarterly revenue to be down slightly in the first half of 2002 as it does not plan to invest heavily in sales & marketing until after the release of its new product features and its new Web-based product, currently expected in the second and third quarters of 2002. Gross margins are expected to be around 70% on a quarterly and annual basis for 2002. Quarterly R&D and G&A expenses in 2002 are expected to be consistent with the levels of the fourth quarter of 2001. On a per share basis, cash net loss from continuing operations is expected to be around a loss of 1 cent in the first quarter of 2002.
Stamps.com (Nasdaq: STMP) is the leading provider of Internet-based postage services. Its flagship product, Stamps.com Internet Postage, enables customers to print U.S. Postal Service-approved postage via a computer and Internet connection.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release may contain forward-looking statements that involve risks and uncertainties. Important factors, including the company’s ability to achieve profitability, which could cause actual results to differ materially from those in the forward-looking statements, are detailed in filings with the Securities and Exchange Commission made from time to time by Stamps.com, including its annual report on Form 10-K /A for the fiscal year ended December 31, 2000, its quarterly reports on Form 10-Q for the fiscal quarters ending March 31, 2001, June 30, 2001 and September 30, 2001, and its Current Reports on Form 8-K. Stamps.com undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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