Stamps.Com Reports Fourth Quarter And Year-End 2000 Financial Results
Stamps.com(TM) (Nasdaq: STMP) today announced that revenue in the fourth quarter of year 2000 was $5.3 million, an increase of 26 percent over the third quarter of year 2000, while total revenue for fiscal year 2000 was $15.2 million. Fourth quarter and fiscal year 2000 net loss applicable to common stockholders was $29.0 million and $122.7 million, respectively, which excludes non-cash charges, losses from the EncrypTix subsidiary, and restructuring and write down charges. On a per share basis, the equivalent net loss for the fourth quarter and fiscal year 2000 was $0.60 and $2.62 per share based on the weighted average common shares outstanding of 48.4 million and 46.9 million, respectively. Cash and short-term investments as of December 31, 2000 was $233 million, or $4.81 per share, excluding cash in the EncrypTix subsidiary.
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For fiscal year 2001, Stamps.com is expecting revenues of approximately $23 million, which represents growth of 60 percent over fiscal year 2000 revenues. In addition, the company expects its year 2001 cash burn rate to be $20-25 million on a continuing operations basis; down over 80 percent from Year 2000 total cash burn. Stamps.com will achieve this through its February 6, 2001 reduction in its work force, more focused and cost-efficient marketing spend, and other cost-cutting programs. The reduction in work force alone is expected to result in cost savings of approximately $20-25 million annually.
Stamps.com expects to take a one-time charge related to the restructuring during the first quarter of 2001.
In addition, Stamps.com currently expects to decrease its 2001 sales and marketing and promotions expenditures by approximately $60 million from year 2000 levels to $15 million for year 2001. Sales and marketing expenditures will be focused on acquisition of higher revenue Power Plan customers and savings will be achieved through renegotiation or termination of fixed payment partner relationships. In addition to decreasing sales and marketing costs, Stamps.com plans to raise its monthly minimum price for all existing simple plan customers to $4.49/month during the second quarter of year 2001. The company will also continue to implement measures such as increased automation to maximize its investment in customer support. As a result of its planned investment in acquiring higher revenue customers, price increases to lower revenue customers and cost cutting measures, Stamps.com expects gross margins for fiscal year 2001 to reach 50 percent. The company maintains its earlier estimates of becoming cash flow positive in the first quarter of fiscal year 2002.
Finally, the company intends to continue pursuit of initiatives that enhance its services and offerings to its customers. Initiatives such as a discount on the price of postage, Web registration and instant licensing will receive strong emphasis in year 2001. The company also hopes to unveil a new service in 2001 that allows customers to print a sheet of stamps from the Internet, similar to a roll or sheet of stamps currently available for purchase from the Post Office. Stamps.com will also continue its staged rollout of its iShip(TM) multi-carrier shipping service.
About Stamps.com Stamps.com provides the easiest, smartest way to mail or ship letters, packages or parcels anywhere, anytime. Stamps.com provides valuable e- services allowing small businesses, large corporations and e-commerce companies to control costs and efficiently manage their mailing and shipping operations. Its business is anchored in key relationships with the U.S.
Postal Service and United Parcel Service (UPS) and other carriers, including FedEx, Airborne Express, DHL and Yellow Freight. Visit www.stamps.com for more information.
"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 (i) achieve profitability, (ii) attract and retain customers with increased prices, significantly reduced marketing spend and reliance on new or unproven marketing programs,(iii) make its products and services widely available, (iv) assimilate a new management team or (v) meet other business and financial objectives with a significant reduction in staff, could cause actual results to differ materially from those in the forward-looking statements and 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, 1999, its quarterly report on Form 10-Q for the fiscal quarter ended September 30, 2000, 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.
Stamps.com and iShip and the Stamps.com, iShip logos are trademarks of Stamps.com Inc. All other brands and names are property of their respective owners.
For further information, please contact Media, Seth Oster, Vice President, Corporate Communications, 310-581-7875, [email protected]; or Investors, Ken McBride, Chief Financial Officer, 310-581-7552, [email protected], both of Stamps.com.
STAMPS.COM INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended December 31, December 31, December 31, December 31, 2000 1999 2000 1999
Net revenues $5,323,095 $357,738 $15,234,199 $357,738 Cost of net revenues $4,790,180 $2,429,658 $23,691,523 $2,429,658 Gross profit $532,916 ($2,071,920) ($8,457,324) ($2,071,920) Operating expenses:
Research and development 6,742,131 2,313,981 23,117,121 7,363,439 Sales and marketing 13,593,723 24,351,601 70,342,575 35,207,688 General and administrative 12,754,532 6,058,136 38,467,714 14,333,830 Amortization 12,902,648 — 45,071,678 — Deferred Compensation 1,729,489 — 10,751,901 — Restructuring & Writedown Charges 14,820,723 — 16,820,723 — Loss From Encryptix 10,004,473 — 17,593,686 — Total operating expenses 72,547,719 32,723,717 222,165,398 56,904,957 Loss from operations (72,014,803) (34,795,638) (230,622,722) (58,976,877) Other income (expense):
Interest expense (33,307) (50,689) (264,942) (172,657) Interest income 3,622,125 1,462,005 17,838,297 2,662,128 Other income (expense) — — 100,215 — Total other income (expense), net 3,588,818 1,411,316 17,673,570 2,489,471 Net loss ($68,425,985) ($33,384,322) ($212,949,152) ($56,487,406)
Basic and diluted net loss per share ($1.41) ($0.91) ($4.54) ($2.59) Weighted average shares outstanding used in basic and diluted per-share calculation 48,440,922 36,611,000 46,887,564 21,823,600
Cash Net Loss Per Share on Continuing Operations (excl.
Loss from EncrypTix) ($0.60) ($0.91) ($2.62) ($2.59)
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2000 December 31, 1999 ASSETS Current assets:
Cash and cash equivalents $247,939,335 $326,820,158 Net Accounts Receivable $2,545,380 Note Receivable $3,181,287 Short-term investments — 47,925,751 Prepaid advertising 2,964,917 21,529,665 Prepaid expenses and other current assets 2,219,908 2,487,436 Total current assets 258,850,826 398,763,010 Property and equipment, net 45,585,460 9,701,679 Other assets 182,501,250 1,977,354 Total assets $486,937,536 $410,442,043
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Total current liabilities 24,124,104 8,406,636 Capital lease obligations, less current portion 5,286,236 438,537 Minority Interest 34,765,004 — Total stockholder's equity (deficit) 422,762,192 401,596,870 Total liabilities and stockholders' equity (deficit) $486,937,536 $410,442,043
SOURCE Stamps.com Inc.
CONTACT: media, Seth Oster, Vice President, Corporate Communications, 310-581-7875, [email protected]; or investors, Ken McBride, Chief Financial Officer, 310-581-7552, [email protected], both of Stamps.com Web site:
PR NEWSWIRE, 22nd February 2001
