Parts.com Reports Two Cent a Share Pro Forma Profit for Second Quarter; Revenues Increase 46%; Cost of Sales Decrease 36%
Parts.com Reports Two Cent a Share Pro Forma Profit for Second Quarter; Revenues Increase 46%; Cost of Sales Decrease 36%
SANFORD, Fla., Aug. 20 Parts.com, Inc.
(Stock Symbol: PART), a marketplace and software solutions provider for the
auto parts industry, today announced its results for the second quarter ended
June 30, 2001.
Revenues for the second quarter of 2001 were $493,058, up 46 percent from
the same period last year. Pro forma net profit for the quarter was $50,835,
or a profit of $.02 per share. During the corresponding quarter in 2000, the
comparable pro forma net loss was $1,114,287, or a loss of $0.47 per share.
For the three-month period ended June 30, 2001, the Company reported net
sales of $493,058, a 268 percent increase compared to net sales of $134,128
for the quarter ended March 31, 2001. As stated in the Company's 10Q report,
it records only its net transaction fees on parts sales.
For the quarter ended June 30, 2001, the Company reduced its Other
Selling, General and Administrative Expenses to $320,479 from $1,262,317 for
the comparable quarter in 2000.
Pro forma results exclude stock-based employee compensation; stock-based
consulting fees, amortization, depreciation, and interest expense.
"Despite the challenging environment, we reported better than expected
revenue and pro forma earnings results this quarter," said Shawn D. Lucas,
President and CEO. "We are pleased with the early progress of our cost
control initiatives and we continue to implement best practices for ways to
run the business more efficiently. We made some very difficult decisions
early this year with regards to workforce reduction and our expense structure.
We made it through some challenging times and we will continue to execute
industry specific solutions that bring value to our trading partners."
"Parts.com continues to work on our initiatives in Europe and recently Cap
Gemini Ernst & Young has agreed to broaden our relationship into other parts
verticals," continued Mr. Lucas. "As the economy slowed here in the U.S. it
has had a dramatic impact on the European initiatives, as large corporations
have slashed their IT budgets. However, parts.com and Cap Gemini are working
on several projects and our relationship continues to strengthen," concluded
Mr. Lucas.
About Parts.com
Parts.com, based in Sanford, Florida, provides business-to-business
electronic commerce software and parts procurement platform provider. The
Company's e-procurement solutions enable corporations to use electronic
automation to streamline business transactions and reduce costs. In addition
to automating existing relationships between buyers and seller, Parts.com also
provides a marketplace where buyers and sellers can conduct transactions
electronically.
Parts.com Safe Harbor
Safe Harbor Statement Under the Private Securities Litigation Reform Act
1995: Information and announcements in this release involve Parts.com's
expectations, beliefs, hopes plans, intentions or strategies regarding the
future and are forward-looking statements that involve risks and
uncertainties. All forward-looking statements included in this release are
based upon information available to Parts.com as of the date of the release,
and we assume no obligation to update any such forward-looking statements.
These statements are not guarantees of future performance and actual results
could differ materially from our current expectations. Factors that could
cause or contribute to such differences include, but are not limited to:
declining economic conditions, including a recession; continued reduction in
the pace of IT spending, the failure of customers to successfully implement
our solutions or achieve benefits attributable to our products, delays in
development or shipment of new versions of our TradeMotion Solutions; lack of
market acceptance of the TradeMotion Solution Platform or other new products
and services; inability to continue to develop competitive new products and
services on a timely basis; introduction of new products or services by major
competitors; our ability to attract and retain qualified employees;
difficulties in assimilating companies previously acquired, including
FlexRadio; inability to expand our operations to support increased growth;
lengthening sales cycles and the recognition of an increasing portion of
revenues at the end of the quarter; inability to control costs; changes in our
pricing or compensation policies; inability to successfully manage a reduction
in the company's workforce; and significant fluctuations in our stock price.
These and other factors and risks associated with our business are discussed
in the Company's Form10-KSB filed April 17, 2001 and form 10-QSB filed on
May 15, 2001.
PARTS.COM, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
ASSETS
June 30 December 31
2001 2000
CURRENT ASSETS:
Cash $ 61,636 $ 8,683
Accounts receivable, net of allowance
for doubtful accounts of $0 and $77,863
respectively 10,000 10,751
Prepaid expenses and other current assets 33,110 67,323
Total Current Assets 104,746 86,757
PROPERTY AND EQUIPMENT, net of accumulated
depreciation of $334,996 and 257,216,
respectively 828,562 929,084
DEFERRED LOAN COSTS, net of accumulated
amortization of $32,945 and $25,343,
respectively 225,555 233,157
OTHER ASSETS, net of accumulated
amortization of $955,291 and $897,351,
respectively 39,230 104,634
PATENT, net of accumulated amortization of
$2,036,980 and $1,532,950, respectively
3,360,202 3,864,232
Total Assets $ 4,558,295 $ 5,217,864
PARTS.COM, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited), CONTINUED
LIABILITIES AND STOCKHOLDERS' EQUITY
June 30 December 31
2001 2000
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 584,424 $ 915,455
Other current liabilities 646,545 801,070
Current portion of mortgage notes payable 398,083 381,562
Convertible promissory notes, net
of debt discount of $43,157 and $0,
respectively 1,641,010 1,050,000
Notes payable - related party 123,800 61,928
Deferred revenue 261,561 513,108
Total Current Liabilities 3,655,423 3,723,123
LONG-TERM PORTION OF MORTGAGE NOTES PAYABLE --- 16,521
Total Liabilities 3,655,423 3,739,644
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred Stock, $.001 par value, 10,000,000
shares authorized, no shares issued and
outstanding --- ---
Common Stock, $.001 par value, 5,000,000
shares authorized, 3,045,165 and
2,778,569 shares issued and outstanding,
respectively 3,045 2,778
Additional paid-in capital 23,666,879 22,592,466
Accumulated deficit (22,446,203) (20,623,965)
Deferred stock-based employee compensation (320,849) (493,059)
Total Stockholders' Equity 902,872 1,478,220
Total Liabilities and Stockholders' Equity $ 4,558,295 $ 5,217,864
PARTS.COM, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended Six Months Ended
June 30 June 30
2001 2000 2001 2000
NET SALES $ 493,058 $ 336,886 $ 627,184 $ 382,130
COST OF SALES 121,744 188,856 253,302 469,397
GROSS PROFIT (LOSS) 371,314 148,030 373,882 (87,267)
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES:
Stock-based employee
compensation 71,160 203,400 338,634 2,040,061
Stock-based
consulting fees 129,623 139,918 155,216 139,918
Other 320,479 1,262,317 683,478 2,912,075
Amortization 258,210 439,920 516,420 974,767
Depreciation 38,145 47,111 77,779 72,198
INTEREST, Net (inclusive
of noncash interest of
$121,669, $0, $352,657,
and $0, respectively) 161,736 14,802 424,593 22,264
TOTAL EXPENSES 979,353 2,107,468 2,196,120 6,161,283
NET LOSS $ (608,039) $(1,959,438) $(1,822,238) $(6,248,550)
BASIC AND DILUTED
NET LOSS PER
COMMON SHARE $ (0.20) $ (0.82) $ (0.63) $ (2.66)
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
OUTSTANDING 2,966,810 2,385,813 2,884,252 2,348,071
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