NEW YORK, Nov. 14, 2001 (PRIMEZONE) -- eB2B Commerce, Inc. (Nasdaq:EBTB), a leader in business-to-business transaction services, announced today its third quarter and nine-month 2001 results, posting a 36% gain in revenues for the nine-month period ended September 30, 2001 over the same period last year. eB2B's third quarter revenue for the period ended September 30, 2001 was partially impacted by the September 11th terrorist attack on New York City, decreasing $212,000 from the same period in the 2000 calendar year.
eB2B Commerce recorded revenues of $1,501,000 for the third quarter of 2001, a decrease of 12% compared to revenues of $1,713,000 in the third quarter of 2000. For the first nine months of 2001, revenues were $5,044,000, an increase of 36% compared to revenues of $3,718,000 for the period ending September 30, 2000.
"We continue to execute our plan to grow our transaction business," said Richard Cohan, CEO of eB2B Commerce. "Our transaction volume grew by 47% over last year, from 425,000 in the third quarter of 2000 to over 625,000 in this year's third quarter, and representing over $80 million in purchasing volume. We've added over 300 new suppliers, 20% more than last quarter, which brings us to over 550 the number of suppliers registered in the last six months. The Company was named today to the Deloitte & Touche Technology Fast 500, ranking 429th on their list of the fastest growing technology companies in North America."
The Company has also signed a non-binding Letter of Intent to acquire another business-to-business e-commerce company which is projected to close before the end of the year. "We are very excited about the synergistic combination which will be immediately accretive to our earnings and generate positive cash flow. Also, this transaction will bring us a profitable revenue stream, proven and talented sales and operating personnel and a complementary customer base to leverage," added Cohan.
"We are also seeing significantly improved EBITDA results, based on our revenue run rate and execution of the restructuring program we began in the second quarter to reduce costs," he said. The Company expects to achieve its plan to be cash flow breakeven in December 2001 and cash flow positive throughout 2002.
eB2B's transaction processing and related services reportable segment generated revenues of $3,193,000 for the first nine months of 2001, an increase of 58% compared to $2,015,000 in the first nine months of 2000. For the three months ended September 30, 2001, the Company reported revenues of $950,000 in this segment, the same as the corresponding period in 2000. Quarterly revenue for the transaction processing business reflects a decrease in the Company's professional services and consulting components and the discontinuance of non-profitable lines of related business per the Company's restructuring, announced in the previous quarter.
As a result of the Company's strategic review of its operations, and pursuant to its restructuring announced in the second quarter, management initiated additional actions resulting in restructuring charges related to severance and a contract termination with its web-hosting provider of $313,000 in the three month period ended September 30, 2001.
The Company reported a loss before interest, taxes, depreciation and amortization (EBITDA) for the three months ended September 30, 2001 of $1,579,000. Excluding restructuring costs, the Company's EBITDA loss would have been $1,266,000 in the quarter, a $2,494,000 or 66% improvement compared to the $3,760,000 EBITDA loss reported in the quarter ended September 30, 2000. For the nine months ended September 30, 2001 the Company reported an EBITDA loss of $8,566,000 compared to $10,717,000 reported for the nine months ended September 30, 2000.
In accordance with SFAS No. 121 and the Company's stated accounting policy, the Company assessed the recoverability of goodwill and other intangibles recognized in the acquisitions of Netlan Enterprises, Inc. and DynamicWeb Enterprises, Inc. and recorded an impairment charge of $43,375,000. The company reports that its net loss for the third quarter of 2001 was $50,970,000 or $2.51 per share, including the impairment charge, compared with a net loss of $9,178,000 or $.71 per share in the same period in 2000.
About eB2B Commerce
eB2B Commerce is the leading provider of business-to-business transaction management services that simplify trading partner integration, automation, and collaboration across the order management life cycle. The eB2B Trading Network and Transaction Lifecycle Management solutions provide enterprises large and small with a total solution for improving trading partner relationships that enhance productivity and bottom line profitability.
FORWARD LOOKING STATEMENTS - Certain statements contained in this news release which are not based on historical facts are forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995, and are subject to uncertainties and risks that may cause actual results to materially differ from projections. While these statements reflect the Company's current judgment, they are subject to risks and uncertainties. Actual results may differ significantly from projected results due to a number of factors, including, but not limited to, the Company's limited operating history; the Company's ability to raise additional capital, if needed; the soundness of our business strategies relative to the perceived market opportunities; our ability to successfully develop, market, sell and improve our business to business transaction services to retailers, suppliers, buyers or sellers; our ability to compete effectively on price and support services; the risks associated with rapidly changing technologies, such as the internet; and our assessment of our specific vertical industry's need to become technology efficient. These factors and other risk factors are more fully discussed in the Company's filings with the Securities and Exchange Commission, which you are strongly urged to read. eB2B expressly disclaims any intent or obligation to update any forward-looking statements. When used in this Report, the words "believes," "estimated," "estimates," "expects," "expected," "anticipates," "may" and similar expressions are intended to identify forward-looking statements.
eB2B Commerce, Inc.
Financial Summary
Three and Nine Months Ended September 30, 2001
(Unaudited)
Three Months Ended Nine Months Ended
09/30/01 09/30/00 09/30/01 09/30/00
Revenue $ 1,501,000 $ 1,713,000 $ 5,044,000 $ 3,718,000
Loss from
Opera-
tions(a) (49,443,000) (9,338,000) (66,143,000) (34,534,000)
EBITDA(b) (1,579,000) (3,760,000) (8,566,000) (10,717,000)
Net Loss(a) (50,970,000) (9,178,000) (69,180,000) (33,809,000)
Net loss
per
common
share $ (2.51) $ (.71) $ (3.90) $ (3.18)
Weighted
average
number of
common
shares
outstanding 20,342,288 13,004,153 17,728,796 10,629,495
(a) Includes Impairment charge to goodwill of $43,375,000 in 2001.
(b) EBITDA is defined as net loss adjusted to exclude: (1)
depreciation and amortization, (2) stock related compensation,
(3) interest, net, and (4) impairment of goodwill and other
intangibles.