market segments, including the Fashion Apparel and Accessories, Beauty and Fragrance and Consumer Packaged Goods
(CPG) segments. We continue to maintain a robust new business pipeline and hope to capitalize on
this pipeline by establishing relationships with major consumer brands and companies that own
families of brands.
While the economy is still in the early stages of its recovery, we believe there is exciting
potential to drive organic revenue growth through our existing client base, especially those with focused
direct-to-consumer initiatives. We believe the combination of many new eCommerce clients, along
with the economic recovery, has us well positioned for growth in the future.
I am also pleased to communicate again that during the quarter we completed the renewal of our
financing facilities with IBM Global Finance, Comerica and Fortis through March 2011, Mr. Layton
Summary of results by business segment:
Service Fee Business:
For the first quarter of 2010, Service Fee revenue was $16 million, compared with $17.1
million for the same period in 2009. The Service Fee business reported Adjusted EBITDA of $0.15
million for the first quarter of 2010, compared to Adjusted EBITDA of $1.6 million for the same
period last year.
Mike Willoughby, President of PFSwebs Services division, commented, Recently we announced a
number of significant new client opportunities. This includes the launch of an End2End eCommerce
solution to support the web commerce initiative for the Carters and OshKosh BGosh brands. Since
its launch on March 24, 2010, the program has exceeded expectations, and PFSwebs ability to scale
its operations has helped enable Carters to capitalize on this opportunity. The end-to-end
solution incorporates an innovative multi-brand web store, high-touch customer care, fully branded
order fulfillment and comprehensive financial transaction management. PFSweb also provides a
variety of Interactive Marketing Services to support Carters, which are targeted to fuel
Also, in February we launched a beta site to test the eStore, an online shopping site exclusively
featuring P&G products to consumers in the U.S., which is an alliance between PFSweb and P&G. Since
the beta site was launched, we have received positive feedback from P&G and the customers using the
site. We believe we are nearing completion of the beta test and are getting ready for the live
site launch, which we expect to happen soon.
We have gained a significant amount of attention since initially launching the End2End solution.
However, this solution really just expanded and unlocked the world-class services we have offered
for years. We continue to operate a robust range of world class outsourcing services designed for
both direct-to-consumer and business-to-business commerce activity. As further evidence of our
service quality, our client Riverbed recently awarded PFSweb their Supplier of the Year award for
2009, in recognition of the excellence of our solutions serving their growing customer base,
continued Mr. Willoughby.
Supplies Distributors Business:
For the first quarter of 2010, Supplies Distributors revenue was $45.5 million, compared to $45.3
million for the same period last year. Adjusted EBITDA was $1.0 million for the first quarter of
2010, compared to $1.4 million for the same period last year.