PFSweb, Inc. and Subsidiaries
Notes to Unaudited Interim Condensed Consolidated Financial Statements
line of credit. In such event, absent a
waiver, the working capital lender would be entitled to accelerate all amounts outstanding
thereunder and exercise all other rights and remedies, including sale of collateral and demand for
payment under the Company parent guaranty. Any acceleration of the repayment of the credit
facilities would have a material adverse impact on the Company’s financial condition and results of
operations and no assurance can be given that the Company would have the financial ability to repay
all of such obligations.
Master Lease Agreements
The Company has a Term Lease Master Agreement with IBM Credit Corporation (“Master Lease
Agreement”) that provides for leasing or financing transactions of equipment and other assets,
which generally have terms of 3 years. The outstanding leasing transactions ($0.8 million as of
September 30, 2008 and $0.9 million as of December 31, 2007) are secured by the related equipment.
The Company also has two other master agreements with financing companies that provide for
leasing or financing transactions of certain equipment. The amounts outstanding under these
agreements were $1.4 million and $1.8 million as of September 30, 2008 and December 31, 2007,
respectively, and are secured by the related equipment.
The Company has other leasing and financing agreements and will continue to enter into those
arrangements as needed to finance the purchasing or leasing of certain equipment or other assets.
Borrowings under these agreements are generally secured by the related equipment.
8. SEGMENT INFORMATION
The Company is organized into three operating segments: PFSweb is an international provider of
integrated business process outsourcing solutions and operates as a service fee business; Supplies
Distributors is a master distributor primarily of IPS products; and eCOST is a multi-category
online discount retailer of new, “close-out” and recertified brand-name merchandise.
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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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2008 |
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2007 |
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2008 |
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2007 |
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Revenues (in thousands): |
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|
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|
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|
|
|
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|
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PFSweb |
|
$ |
32,645 |
|
|
$ |
28,814 |
|
|
$ |
92,637 |
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|
$ |
80,729 |
|
Supplies Distributors |
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55,448 |
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|
58,313 |
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|
177,795 |
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|
174,718 |
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eCOST |
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|
23,709 |
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26,950 |
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74,701 |
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75,680 |
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Eliminations |
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(1,893 |
) |
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(2,082 |
) |
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(6,071 |
) |
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(6,325 |
) |
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|
|
|
|
|
|
|
|
|
|
|
|
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$ |
109,909 |
|
|
$ |
111,995 |
|
|
$ |
339,062 |
|
|
$ |
324,802 |
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Income (loss) from operations (in
thousands): |
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PFSweb |
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$ |
6 |
|
|
$ |
115 |
|
|
$ |
(289 |
) |
|
$ |
(1,658 |
) |
Supplies Distributors |
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|
1,427 |
|
|
|
1,570 |
|
|
|
5,136 |
|
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|
4,998 |
|
eCOST |
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(748 |
) |
|
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(692 |
) |
|
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(2,399 |
) |
|
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(2,845 |
) |
Eliminations |
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— |
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— |
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— |
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— |
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|
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|
|
|
|
|
|
|
|
|
|
|
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|
$ |
685 |
|
|
$ |
993 |
|
|
$ |
2,448 |
|
|
$ |
495 |
|
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Depreciation and amortization
(in thousands): |
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PFSweb |
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$ |
1,426 |
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|
$ |
1,760 |
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|
$ |
4,074 |
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|
$ |
5,342 |
|
Supplies Distributors |
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2 |
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6 |
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12 |
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|
15 |
|
eCOST |
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|
248 |
|
|
|
255 |
|
|
|
733 |
|
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|
751 |
|
Eliminations |
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— |
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— |
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— |
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— |
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|
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|
|
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$ |
1,676 |
|
|
$ |
2,021 |
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|
$ |
4,819 |
|
|
$ |
6,108 |
|
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14
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