Bluefly Cuts Operating Loss by 48%; Revenue Grows by 21.5%; Results Driven by Record First Quarter Revenue and Margin Levels.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Bluefly Bluefly, Inc.. (NASDAQ: bfly) is an American electronic commerce company based in New York, New York. As one of the leading fashion and lifestyle e-commerce website, Bluefly Inc, has grown rapidly since it’s inception. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on SmallCap: BFLY BFLY Bluefly Inc. (stock symbol) ) First Quarter Highlights --Gross Profit Increases 29.2% --Revenue Increases 21.5% --Gross Margin Increases by 220 Basis Points to 36.2% --Operating Loss Cut by 48%; Net Loss Cut by Almost 21% Bluefly, Inc. (NASDAQ SmallCap: BFLY), 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 retailer of designer brands, fashion trends and superior value (www.bluefly.com), today announced that it had reduced its first quarter operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. by 48%, to $736,000 from $1,419,000 in the first quarter of 2004. The results were driven by continued strong gross profit performance, as the company simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics grew both its revenue and its gross margin percentage for a sixth straight quarter. Gross profit increased by 29.2% for the first quarter of 2005, to $4,885,000 from $3,782,000 in the first quarter of 2004. This increase was driven by a 21.5% increase in revenue, to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $13,502,000 from $11,114,000 in the first quarter of 2004, and an increase in gross margin, to 36.2% from 34.0% in the first quarter of 2004. "During the first quarter, we built upon the momentum that we created during this past Holiday season," said Melissa melissa: see bee balm. Payner, Bluefly's 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. . "We accelerated our growth while continuing to improve our margins, and these improvements fell directly to the bottom line." "As excited as we are about our first quarter results, we are even more excited about the rest of the year," continued Payner. "We are driving customer acquisition through new initiatives such as our `Win a Porsche
Dr. Ing. h.c. F. Porsche AG, often shortened to Porsche AG, or just Porsche, is a German manufacturer of automobiles. Sweepstakes' and other direct response marketing. We plan to increase consumer awareness significantly through a major consumer public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most push in advance of launching our Summer collection. Like our highly successful Spring launch, the Summer launch will include all of the hottest trends for the season. We will also continue to increase customer loyalty through improvements to our Web site. For example, our new boutiques section will highlight fully merchandised outfits focused on the latest trends, allowing our customers to purchase either the entire outfit OUTFIT. An allowance made by the government of the United States to a minister plenipotentiary, or charge des affaires, on going from the United States to any foreign country. 2. or any part of it. These exciting initiatives should yield benefits throughout 2005." Other financial results for the first quarter of 2005 were as follows (all comparisons are to the first quarter of 2004): --Net loss for the first quarter decreased by 21.0% to $893,000 (or $0.13 per share) from $1,130,000 (or $0.15 per share)(1). --New customers acquired during the first quarter increased by 10.3% to 36,765 from 33,335 in the first quarter of 2004. --Gross Average order size for the first quarter increased by 5.5% to $200.06 from $189.56 in the first quarter of 2004.
(1) Net loss per share for the first quarter of 2005 is based on a
weighted average of 15,299,040 shares outstanding, while net
loss per share for the first quarter of 2004 is based on a
weighted average of 14,314,722 shares outstanding.
About Bluefly, Inc. Founded in 1998, Bluefly, Inc. (NASDAQ SmallCap: BFLY) is a leading online retailer of designer brands, fashion trends and superior value. Bluefly is headquartered at 42 West 39th Street in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , in the heart of the Fashion District. For more information, please call 212-944-8000 or visit www.bluefly.com. This press release may include statements that constitute "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. ," usually containing the words "believe," "project," "expect" or similar expressions. These statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. The risks and uncertainties are detailed from time to time in reports filed by the company with the Securities and Exchange Commission, including Forms 8-K, 10-Q and 10-K. These risks and uncertainties include, but are not limited to, the company's ability to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution on, and gain additional revenue from, its consumer public relations and other marketing initiatives; the company's history of losses and anticipated future losses; need for additional capital and potential inability to raise such capital; the potential failure to forecast revenues and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. to make adjustments to operating plans necessary as a result of any failure to forecast accurately; unexpected changes in fashion trends; cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. variations in the apparel and e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. market; the availability of 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 ; the need to further establish brand name recognition; management of potential growth; and risks associated with our ability to handle increased traffic and/or continued improvements to its Web site.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
Three Months Ended
March 31, March 31,
2005 2004
------------ -----------
Net sales $13,502,000 $11,114,000
Cost of sales 8,617,000 7,332,000
----------- -----------
Gross profit 4,885,000 3,782,000
Gross profit percentage 36.2% 34.0%
Selling, marketing and fulfillment expenses 4,035,000 3,449,000
General and administrative expenses 1,586,000 1,752,000
----------- -----------
Operating loss (736,000) (1,419,000)
Interest and other income 40,000 456,000
Interest expense (197,000) (167,000)
----------- -----------
Net loss $ (893,000)$(1,130,000)
----------- -----------
Preferred stock dividends (1,115,000) (1,024,000)
Net loss available to common shareholders $(2,008,000)$(2,154,000)
----------- -----------
Basic and diluted net (loss) income per share
(after preferred stock dividends) $ (0.13)$ (0.15)
=========== ===========
Weighted average shares outstanding 15,299,040 14,314,722
=========== ===========
SELECTED BALANCE SHEET DATA & KEY METRICS-
UNAUDITED
March 31, December 31,
2005 2004
============ ============
Cash, including Restricted Cash of $1,260,000
at March 31, 2005 $5,410,000 $7,938,000
Inventories, net 13,591,000 12,958,000
Prepaid Inventory 1,736,000 84,000
Other Current Assets 2,746,000 2,475,000
Property & Equipment, net 2,520,000 1,933,000
Current Liabilities--excluding related party
liabilities below 10,697,000 9,413,000
Notes Payable to Related Party Shareholders
(including interest payable) 4,791,000 4,658,000
Shareholders' Equity 10,601,000 11,389,000
Three Months Three Months
Ended Ended
March 31, March 31,
2005 2004
============ ============
Average Order Size (including shipping &
handling revenue) $200.06 $189.56
Customers Added During Period 36,765 33,335
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Three Months
Ended Ended
March 31, March 31,
2005 2004
============ ============
Cash flows from operating activities:
Loss from operations $(893,000) $(1,130,000)
Adjustments to reconcile loss from
operations to net cash used in operating
activities:
Depreciation and amortization 290,000 362,000
Change in value of warrants -- (261,000)
Non-cash expense related to warrants
issued to supplier 67,000 24,000
Provisions for returns 27,000 (588,000)
Allowance for doubtful accounts 64,000 38,000
Stock options expense 16,000 --
Reserve for inventory obsolescence 158,000 100,000
Changes in operating assets and
liabilities:
(Increase) decrease in:
Inventories (858,000) 734,000
Accounts receivable (754,000) (319,000)
Prepaid inventory (1,652,000) (21,000)
Prepaid expenses 79,000 79,000
Other current assets 333,000 (82,000)
(Decrease) increase in:
Accounts payable 1,427,000 847,000
Accrued expenses and other current
liabilities (273,000) (245,000)
Long-term interest payable to related
party shareholders 133,000 119,000
Deferred revenue 203,000 325,000
------------ ------------
Net cash used in operating activities (1,633,000) (18,000)
Cash flows from investing activities:
Purchase of property and equipment (877,000) (224,000)
----------- ------------
Net cash used in investing activities (877,000) (224,000)
----------- ------------
Cash flows from financing activities:
Net proceeds from January 2004 financing -- 4,577,000
Net proceeds from exercise of Employee
Stock Options 89,000 96,000
Payment of capital lease obligation (114,000) (71,000)
------------ ------------
Net cash (used in) provided by
financing activities (25,000) 4,602,000
------------ ------------
Net increase (decrease) in cash and cash
equivalents (2,535,000) 4,360,000
Cash and cash equivalents - beginning of
period 6,685,000 7,721,000
------------ ------------
Cash and cash equivalents - end of
period $4,150,000 $12,081,000
============ ============
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