||Reduction in public company expenses
||Expansion of certain eCOST vendor credit lines to improve its working capital
For eCOSTs selected operating data for the three month periods ended March 31, 2006 and 2005,
please see the tables below.
Layton concluded, We remain on track to complete the integration of our operations within our
targeted timeframe of fall 2006. Once this integration is completed we believe we will be well
poised to begin to expand and more aggressively grow our annual consolidated revenue base of
approximately $500 million. We believe our integration efforts will provide the opportunity to
achieve a turnaround of the eCOST business and significantly enhance our growth potential in the
burgeoning $79 billion web commerce marketplace. Combined with our increasing momentum in our
service fee business, we believe PFSweb is well positioned to drive overall future performance on
both the top and bottom line.
Conference Call Information
Management will host a conference call at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) on May
15, 2006 to discuss the latest corporate developments and results. To listen to the call, please
dial 973-582-2706 and enter the pin number (7347832) at least five minutes before the scheduled
start time. Investors can also access the call in a listen only mode via the Internet at the
companys website, www.pfsweb.com. Please allow extra time prior to the call to visit the site and
download any necessary audio software.
A digital replay of the conference call will be available through May 29th at 973-341-3080 pin
number (7347832). The replay also will be available at the companys web site for a limited time.
Non-GAAP Financial Measures
This news release contains the non-GAAP measures EBITDA, adjusted EBITDA and Merchandise sales.
EBITDA represents earnings (or losses) before interest, taxes, depreciation, and amortization.
Adjusted EBITDA further eliminates the effect of stock based compensation expense, merger
integration related expenses and a loss on sales transaction. EBITDA and adjusted EBITDA is used
by management, analysts, investors and other interested parties in evaluating our operating
performance compared to that of other companies in our industry, as the calculation of EBITDA and
adjusted EBITDA eliminates the effect of financing, income taxes, the accounting effects of capital
spending, stock-based compensation expense and merger related expenses which items may vary from
different companies for reasons unrelated to overall operating performance.
Merchandise sales represent the estimated value of all fulfillment activity which flows through
PFSweb including whether or not PFSweb is the seller of the merchandise or records the full amount
of such sales on its financial statements, excluding service fee revenues that PFSweb might
recognize for the underlying sales transactions. PFSweb uses merchandise sales as an operating
metric to allow investors to gain a more thorough understanding of its business and business
volume, in addition to GAAP net revenue.