A digital replay of the conference call will be available through August 28th at
877-519-4471 pin number (7710682). 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 and adjusted EBITDA.
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 that 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.
About PFSweb, Inc.
PFSweb develops and deploys integrated business infrastructure solutions and fulfillment services
for Fortune 1000, Global 2000 and brand name companies, including third party logistics, call
center support and e-commerce services. The company serves a multitude of industries and company
types, including such clients as Adaptec, Chiasso, FLAVIA(R) Beverage Systems, Hewlett-Packard,
International Business Machines, Nokia, Pfizer, Inc., Raytheon Aircraft Company, Rene Furterer USA,
Roots Canada Ltd., The Smithsonian Institution and Xerox.
Through its wholly owned eCOST.com subsidiary, PFSweb also serves as a leading multi-category
online discount retailer of high-quality new, close-out and refurbished brand-name merchandise
for consumers and small business buyers. The eCOST.com brand markets more than 100,000 different
products from leading manufacturers such as Apple, Canon, Citizen, Denon, Hewlett-Packard, Nikon,
Onkyo, Seiko, Sony, and Toshiba primarily over the Internet and through direct marketing.
To find out more about PFSweb, Inc. (NASDAQ: PFSW), visit the companys websites at
http://www.pfsweb.com and http://www.ecost.com.
The matters discussed herein consist of forward-looking information under the Private
Securities Litigation Reform Act of 1995 and is subject to and involves risks and uncertainties,
which could cause actual results to differ materially from the forward-looking information.
PFSwebs Annual Report on Form 10-K and 10-K/A for the year ended December 31, 2005 identifies
certain factors that could cause actual results to differ materially from those projected in any
forward looking statements made and investors are advised to review the Annual Report and the Risk
Factors described therein. These factors include: our ability to retain and expand relationships
with existing clients and attract and implement new clients; our reliance on the fees generated by
the transaction volume or product sales of our clients; our reliance on our clients