LAS VEGAS, March 27, 2002 (PRIMEZONE) -- PurchasePro (Nasdaq:PPRO) today reported a net loss for the fourth quarter ended December 31, 2001 of $71.3 million, or $0.98 per fully diluted share, on revenues of $2.4 million, compared with net loss in the comparable quarter a year ago of $36.8 million, or $0.55 per fully diluted share, on revenues of $33.6 million. The company's 2001 fourth quarter results include special charges totaling $48.8 million related to write-downs and write-offs of certain property and equipment, intangibles, investments, and lease termination costs, as well as workforce reductions and associated costs.
For the year ended December 31, 2001, net loss was $272.2 million, or $3.80 per fully diluted share, on revenues of $38.8 million, compared with net loss of $72.8 million, or $1.15 per fully diluted share, on revenues of $65.0 million in the prior year.
Additional key metrics from PurchasePro's fourth quarter include:
-- Revenue from software licenses sold in the quarter totaled
$524,000, compared with $818,000 in the prior quarter and $22.0
million a year earlier.
-- Transaction revenue was $57,000, compared with $58,000 in the
prior quarter and $9,000 in the comparable quarter a year ago.
-- Hosting revenue was $367,000 in the quarter, compared with
$323,000 in the prior quarter and $689,000 a year ago.
-- Maintenance revenue in the quarter was $437,000, compared with
$463,000 in the prior quarter and $273,000 a year earlier.
-- Professional fees were $466,000, compared with $944,000 in the
prior quarter and $198,000 a year earlier.
-- Gross margins were 41 percent compared with 64 percent in the
prior quarter and 94 percent a year earlier.
-- Operating expenses were $72.2 million, compared with
$108.8 million in the prior quarter and $72.0 million a year ago.
-- 78,000 purchase orders totaling $88 million were received in the
quarter, compared with 83,000 purchase orders valued at
$88 million in the prior quarter. For all of 2001, $262 million
in purchase orders crossed the commerce network.
-- In the fourth quarter, PurchasePro's customers ran $377 million
in reverse auction volume resulting in $116 million in implied
savings through the PurchasePro commerce network, and
$864 million in reverse auction volume resulting in $275 million
in savings in the full year.
Richard L. Clemmer, president and chief executive officer, said, "In 2001, we implemented and completed an overhaul of PurchasePro's operations, and we have emerged with a streamlined infrastructure, additional customers and improved products. This year we are seeing the results of those efforts. To date in 2002 we've announced six revenue-producing contracts, five of which are with new customers, launched e-Source 7.5 and completed a $6 million equity financing. We believe we have turned the corner and hope to be EBITDA positive in the spring and generate cash in the fall."
The company also said it will hold an open conference call to discuss its results at 10:00 a.m. (PST) later today. The company has secured a limited number of lines for the conference call which may be accessed domestically at (877) 440-9648 or internationally at (706) 679-0668 or through a webcast at PurchasePro's investor relations website, www.irconnect.com/ppro.
The call will be replayed beginning on March 28, 2002 and ending on April 3, 2002. The replay call in number is (800) 642-1687 and the international replay call in number is (706) 645-9291. The replay pass code is 3566770. Investors may also access a "web replay" of the call through www.irconnect.com/ppro beginning on March 28, 2002 through April 30, 2002.
About PurchasePro
PurchasePro(r), www.purchasepro.com, is a B2B e-commerce leader with the objective of providing software to enable enterprises of all sizes to gain universal access to the world's largest commerce network. Founded in 1996, PurchasePro provides electronic procurement and strategic sourcing solutions to businesses worldwide.
This news release may include forward-looking statements, which are subject to the "Safe Harbor" created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve certain risks and uncertainties that can cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements represent only the views of certain members of management and are based on limited information available to us now, which is subject to change. We have no current plan to update these statements. Actual results may differ substantially from what we say today and no one should assume at a later date that the forward-looking statements provided herein are still valid. They speak only as of today. For more information about these risks and uncertainties, see the SEC filings of PurchasePro.com, Inc., including the section titled "Factors That May Affect Results" in its 10-K filing for the period ended December 31, 2000, and its 10-Q for the quarter ended September 30, 2001, which are available from the company on request and on the Internet at the SEC's Website, www.sec.gov. Note: PurchasePro is a service mark of PurchasePro.com Inc. All other trademarks or registered trademarks are the property of their respective owners.
PURCHASEPRO.COM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
Three Months Ended, Twelve Months Ended,
December 31, December 31,
---------------------- ----------------------
2001 2000 2001 2000
--------- --------- --------- ---------
Revenues:
Software licenses $ 524 $ 22,045 $ 16,892 $ 34,860
Network access
and service fees 1,688 10,194 18,665 23,546
Advertising 20 1,117 2,417 3,219
Other 160 234 792 3,366
--------- --------- --------- ---------
Total revenues 2,392 33,590 38,766 64,991
Cost of revenues 1,414 1,984 7,424 4,487
--------- --------- --------- ---------
Gross profit 978 31,606 31,342 60,504
Operating expenses:
Sales and
marketing 5,705 46,310 67,989 75,986
Programming and
development 1,196 2,887 9,648 8,850
General and
administrative 15,042 8,586 70,866 26,416
Amortization of
stock-based
compensation 1,452 2,087 6,588 17,114
Asset impairments
and abandonments 41,994 12,112 157,798 12,112
Cancellation of
AOL obligation -- -- (19,766) --
Employee
termination
benefits and
other 6,833 -- 11,213 --
--------- --------- --------- ---------
Total operating
expenses 72,222 71,982 304,336 140,478
--------- --------- --------- ---------
Operating loss (71,244) (40,376) (272,994) (79,974)
Other income (11) 3,618 811 7,163
--------- --------- --------- ---------
Net loss before
benefit for
income taxes (71,255) (36,758) (272,183) (72,811)
Benefit for income
taxes -- -- -- --
--------- --------- --------- ---------
Net loss $ (71,255) $ (36,758) $(272,183) $ (72,811)
========= ========= ========= =========
Net loss per
share:
Basic $ (0.98) $ (0.55) $ (3.80) $ (1.15)
========= ========= ========= =========
Diluted $ (0.98) $ (0.55) $ (3.80) $ (1.15)
========= ========= ========= =========
Weighted average
shares
outstanding:
Basic 72,625 66,377 71,638 63,399
========= ========= ========= =========
Diluted 72,625 66,377 71,638 63,399
========= ========= ========= =========
PURCHASEPRO.COM, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
December 31, December 31,
2001 2000
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents
(including restricted cash
of $912 and $0) $ 7,401 $ 86,335
Trade accounts receivable, net 2,350 23,171
Other receivables 916 859
Prepaid expenses and other current
assets 1,129 9,378
--------- ---------
Total current assets 11,796 119,743
Property and equipment:
Computer equipment and software 27,448 49,620
Furniture and fixtures 931 2,327
Leasehold improvements 6,091 6,244
--------- ---------
34,470 58,191
Less -- accumulated depreciation
and amortization (14,159) (7,940)
--------- ---------
Net property and equipment 20,311 50,251
Other assets:
Intangibles, net 3,604 123,410
Capitalized software development
costs, net 8,896 5,516
Investments in other companies 129 15,718
Deposits and other 1,130 5,584
--------- ---------
Total other assets, net 13,759 150,228
--------- ---------
Total assets $ 45,866 $ 320,222
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,541 $ 20,248
Accrued and other current
liabilities 5,198 3,421
Deferred revenues 1,900 3,030
Current portion of long-term
liabilities 6,238 22,255
--------- ---------
Total current liabilities 15,877 48,954
Long-term liabilities 5,533 10,348
--------- ---------
Total liabilities 21,410 59,302
Contingencies
Stockholders' equity:
Common stock 787 667
Additional paid-in capital 448,703 414,667
Common stock in treasury at cost (902) --
Deferred stock-based compensation (397) (4,390)
Accumulated deficit (423,735) (151,552)
Accumulated other comprehensive
income (loss) -- 1,528
--------- ---------
Total stockholders' equity 24,456 260,920
--------- ---------
Total liabilities and
stockholders' equity $ 45,866 $ 320,222
========= =========
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