PFSweb, Inc. and Subsidiaries
Notes to Unaudited Interim Condensed Consolidated Financial Statements
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2009 |
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2008 |
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2009 |
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2008 |
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Income (loss) from operations (in
thousands): |
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PFSweb |
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$ |
(2,375 |
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$ |
6 |
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$ |
(5,760 |
) |
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$ |
(289 |
) |
Supplies Distributors |
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2,162 |
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1,427 |
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4,559 |
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5,136 |
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eCOST |
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(239 |
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(748 |
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(1,187 |
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(2,399 |
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Eliminations |
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— |
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— |
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— |
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— |
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$ |
(452 |
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$ |
685 |
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$ |
(2,388 |
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$ |
2,448 |
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Depreciation and amortization
(in thousands): |
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PFSweb |
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$ |
1,445 |
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$ |
1,426 |
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$ |
4,910 |
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$ |
4,074 |
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Supplies Distributors |
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8 |
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2 |
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26 |
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12 |
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eCOST |
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87 |
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248 |
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255 |
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733 |
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Eliminations |
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— |
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— |
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— |
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— |
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$ |
1,540 |
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$ |
1,676 |
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$ |
5,191 |
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$ |
4,819 |
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Capital expenditures (in thousands): |
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PFSweb |
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$ |
1,563 |
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$ |
2,987 |
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$ |
3,408 |
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$ |
4,467 |
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Supplies Distributors |
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— |
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— |
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2 |
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77 |
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eCOST |
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11 |
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96 |
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113 |
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194 |
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Eliminations |
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— |
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— |
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— |
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— |
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$ |
1,574 |
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$ |
3,083 |
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$ |
3,523 |
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$ |
4,738 |
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September 30, |
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December 31, |
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2009 |
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2008 |
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Assets (in thousands): |
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PFSweb |
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$ |
62,405 |
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$ |
108,436 |
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Supplies Distributors |
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69,245 |
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82,280 |
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eCOST |
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13,585 |
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13,489 |
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Eliminations |
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(20,574 |
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(59,684 |
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$ |
124,661 |
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$ |
144,521 |
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8. COMMITMENTS AND CONTINGENCIES
The Company receives municipal tax abatements in certain locations. During 2004 the Company
received notice from a municipality that it did not satisfy certain criteria necessary to maintain
the abatements. In December 2006, the Company received notice that the municipal authority planned
to make an adjustment to the Company’s tax abatement. The Company has disputed the adjustment, but
if the dispute is not resolved favorably, additional taxes of approximately $1.7 million could be
assessed against the Company.
The Company is subject to claims in the ordinary course of business, including claims of
alleged infringement by the Company or its subsidiaries of the patents, trademarks and other
intellectual property rights of third parties. If the party asserting such claims commences
litigation, the Company could be required to defend itself or its customers. The Company is not
aware of any such litigation.
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