Alloy Online Announces Record Third Quarter Results and Sets Fourth Quarter Profit Projection Above Consensus.Business Editors NEW YORK--(BUSINESS WIRE)--Nov. 29, 2000 --Third Quarter Revenues Up 187% Year over Year and 128% vs. Second Quarter-- --Results Exceed Analysts' Expectations- --Forecasting $0.02 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. in Fourth Quarter vs. $0.01 Consensus-- Alloy alloy (ăl`oi, əloi`) [O. Fr.,=combine], substance with metallic properties that consists of a metal fused with one or more metals or nonmetals. Online, Inc. (Nasdaq:ALOY) (www.alloy.com), a leading Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the destination and direct marketer for the boys and girls boys and girls mercurialisannua. of Generation Y, today announced record financial results for the third quarter ended October October: see month. 31, 2000 and has increased its profit expectation for the fourth quarter. Total revenues for the third quarter increased 187% to $28.1 million compared to $9.8 million in the third quarter of 1999, and 128% on a sequential One after the other in some consecutive order such as by name or number. basis compared to $12.3 million in the second quarter of 2000. Third quarter gross profit increased to $15.7 million, or 56.0% of revenues compared to $5.6 million, or 57.8% of revenues in the comparable period last year. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were $22.2 million versus $11.1 million in the third quarter of 1999. The net loss before goodwill amortization and stock-based compensation for the quarter was $6.3 million, or $0.30 per share, compared to $4.8 million, or $0.34 per share last year. After goodwill amortization and stock-based compensation, the net loss for the third quarter of 2000 was $9.7 million, or $0.46 per share compared to a net loss of $4.9 million, or $0.34 per share last year. "This was another outstanding quarter for Alloy," said Matthew Matthew one of the twelve disciples. [N.T.: Matthew] See : Evangelism C. Diamond, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Strong top line growth on both the merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain and sponsorship sides of our business, together with the solid contribution from our newly acquired CCS (1) (Common Channel Signaling) A communications system in which one channel is used for signaling and different channels are used for voice/data transmission. Signaling System 7 (SS7) is a CCS system, also known as CCS7. See SS7. business, fueled a stellar back-to-school season. Our financial performance validates the benefits of our convergence convergence Mathematical property of infinite series, integrals on unbounded regions, and certain sequences of numbers. An infinite series is convergent if the sum of its terms is finite. business model, which enables us to exploit both our online and offline (1) Not connected to the Internet, online service or internal network. See offline file. (2) Not connected to or not installed in the computer. If a terminal, printer or other device is physically connected to the computer, but is not turned on or in ready mode, it is properties and our multiple revenue streams to drive growth." Mr. Diamond continued, "We are especially pleased with our ability to maintain consistently strong operating momentum in light of the difficulties being experienced in the online sector. Fourth quarter merchandise sales and sponsorship revenues have been solid to date and we remain very comfortable that we can achieve analysts' expectations of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $35 million in total revenues for the quarter. Furthermore, increased online commerce activity and strengthened merchandise margins support fourth quarter profit of $0.02 per share before goodwill amortization and stock-based compensation, ahead of the current First Call consensus estimate of $0.01 per share. Looking ahead to next year, we anticipate that Alloy will be profitable on a full-year basis." As of October 31, 2000, Alloy's consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: database of Generation Y girls and boys reached approximately 6.2 million, of which approximately 1.3 million were established buyers. Alloy's registered online user base grew to 3.1 million registrants versus 1.3 million as of October 31, 1999. Net revenues for the nine month period ended October 31, 2000 increased 188% to $48.7 million versus $16.9 million in 1999. Gross profit for the first nine months of 2000 rose to $28.9 million versus $9.6 million last year, while gross margin improved to 59.3% from 57.0% in the comparable period of 1999. Operating expenses were $47.1 million compared to $20.6 million in the nine month period last year. The net loss before goodwill amortization and stock-based compensation was $17.3 million, or $0.95 per share, compared to $9.9 million, or $0.82 per share last year (before non-recurring costs of $235,000 related to the early retirement of debt). After goodwill amortization, stock-based compensation and non-recurring debt retirement costs, the net loss for the nine month period ended October 31, 2000 was $22.9 million, or $1.26 per share versus $10.5 million, or $0.86 per share in the prior year period. About Alloy Online Alloy Online, Inc. is a leading Web-centric Having to do with the Web. A Web-centric view of something means that the application or system has been designed for the Web. See Webified. direct marketer providing community, content, commerce and entertainment to Generation Y, one of the fastest growing segments of the Internet population. Alloy's convergent con·ver·gence n. 1. The act, condition, quality, or fact of converging. 2. Mathematics The property or manner of approaching a limit, such as a point, line, function, or value. 3. media model - which is centered around our Web site (www.alloy.com), and is complemented by the Alloy e-zine and catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. and the CCS Web site (www.ccs.com) and catalog - has a total reach of more than 10 million individuals per month. Together, these components offer a unique blend “Blending” redirects here. For alpha blending, see Alpha compositing. In linguistics, a blend is a word formed from parts of two other words. These parts are sometimes, but not always, morphemes. of services through which teens can interact Interact can refer to:
Fall of Interact While the Game Boy device was first released, Interact acquired the rights to sell Datel's Action Replay , share information, explore compelling and relevant content and shop for apparel, accessories, footwear Footwear consists of garments worn on the feet. It is worn for a variety of reasons, including protection against the environment, hygiene and adornment. Usually, socks and other hosiery are worn between the feet and the footwear, except for sandals and flip flops (thongs). , room furnishings furnishings the extra type or quantity of hair on the head, tail, ears or legs, specified for a particular breed. For example, the feathers in setters, the beard in Bearded collies, the eyebrows in Schnauzers. and action sports equipment. For further information regarding Alloy Online, please visit our Web site (www.alloy.com) and click on "Investor Info INFO Information INFO Information (logging abbreviation) INFO Inform(ed/ation) INFO Ionic Difluoroamino Oxidizer " or call the investor information line at 877-ALLOY-IR. This announcement may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, including statements regarding our expectations and beliefs regarding our future results or performance that involve a number of substantial risks and uncertainties. When used in this announcement, the words "anticipate", "believe", "estimate", "expect" and "intend" and similar expressions as they relate to us or our management are intended to identify such forward-looking statements. Our actual results could differ materially from those projected in the forward-looking statements and reported results should not be considered an indication of our future performance. Factors that might cause or contribute to such differences include, among others: our ability to increase revenues, generate multiple revenue streams, increase visitors to our and CCS' Web sites and build customer loyalty; our ability to develop our sales and marketing teams; our ability to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. our sales and marketing efforts; our ability to capitalize on our promotions, sponsorship, advertising and other revenue opportunities; our ability to build the Alloy and CCS brand names and develop our on-line community; our ability to develop commercial relationships with advertisers; our and CCS' Web sites' appeal to marketers and users; our ability to meet anticipated cash needs for working capital and capital expenditures; our ability to manage the risks and challenges associated with integrating newly acquired businesses; our ability to enhance our infrastructure technology, transaction-processing and automation capabilities of our and CCS' Web sites; our ability to increase the efficiency of our supply chain and fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. system; our ability to expand into international markets; competition; seasonal sales fluctuations and general economic conditions. For a discussion of these and other risk factors see the Risk Factors section of our recent Registration Statement on Form S-3 which is on file with the Securities and Exchange Commission.
Alloy Online, Inc.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (1)
(In thousands, except per share data)
(Unaudited)
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
31-10-99 31-10-00 31-10-99 31-10-00
Net merchandise
revenues $9,242 $24,271 $16,011 $40,152
Sponsorship and
other revenues 524 3,788 906 8,569
-------------------------------------------
Total revenues 9,766 28,059 16,917 48,721
Cost of goods
sold 4,125 12,351 7,273 19,815
-------------------------------------------
Gross profit 5,641 15,708 9,644 28,906
Selling and
marketing
expenses 9,725 19,224 17,307 39,486
General and
administrative
expenses 1,342 2,975 3,257 7,650
-------------------------------------------
Total operating
expenses 11,067 22,199 20,564 47,136
Loss from operations (5,426) (6,491) (10,920) (18,230)
Interest income, net 600 150 994 970
-------------------------------------------
Net loss before
goodwill
amortization,
stock-based
compensation
and extraordinary
item ($4,826) ($6,341) ($9,926) ($17,260)
Goodwill
amortization 0 (3,250) 0 (5,265)
Stock-based
compensation (69) (90) (349) (357)
Charge for early
retirement of debt 0 0 (235) 0
-------------------------------------------
Net loss ($4,895) ($9,681) ($10,510) ($22,882)
Net loss per
common share
before goodwill
amortization,
stock-based
compensation
and extraordinary
item ($0.34) ($0.30) ($0.82) ($0.95)
Goodwill
amortization $0.00 ($0.16) $0.00 ($0.29)
Stock-based
compensation ($0.00) ($0.00) ($0.03) ($0.02)
Extraordinary
loss from
early retirement
of debt $0.00 $0.00 ($0.02) $0.00
Net loss per
common share ($0.34) ($0.46) ($0.86) ($1.26)
Weighted average
common
shares outstanding: 14,231,797 20,899,625 12,175,624 18,110,921
(1) Prior periods have been reclassified pursuant to EITF 00-10
"Accounting for Shipping and Handling Fees and Costs" which
stipulates that all amounts billed to a customer in a sale
transaction related to shipping and handling, if any, represent
revenues earned for the goods provided and should be classified
as revenue.
Alloy Online, Inc.
SELECTED CONDENSED CONSOLIDATED BALANCE SHEET DATA
(In thousands)
January 31, 2000 October 31, 2000
(audited) (unaudited)
Assets
Current Assets
Cash and cash equivalents $12,702 $3,690
Marketable securities 20,971 20,305
Accounts receivable, net 2,693 2,714
Inventories, net 3,981 18,236
Prepaid catalog costs 1,011 1,767
Other current assets 1,281 1,534
Total current assets 42,639 48,246
Property and equipment, net 2,187 5,602
Goodwill, net of amortization 12,349 55,868
Other assets 493 2,015
Total assets $57,668 $111,731
Liabilities and Stockholders' Deficit
Current Liabilities
Accounts payable and
accrued expenses $12,460 $22,142
Total current liabilties 12,460 22,142
Stockholders' Equity 45,208 89,589
Total liabilities and
stockholders' equity $57,668 $111,731
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