FOR
IMMEDIATE RELEASE
|
Investor
Contacts:
|
Press
Contact:
|
Kara
B. Jenny
|
Monica
Halpert
|
|
Chief
Financial Officer
|
Director
of Content and Creative
|
|
Bluefly,
Inc.
|
212-944-8000
ext. 297
|
|
212-
944-8000 ext. 286
|
monica.halpert@bluefly.com
|
|
kara.jenny@bluefly.com
|
|
·
|
Net
revenue decreased by approximately 11.1% to $24.4 million from $27.4
million in the fourth quarter of 2008, as a result of the Company’s
planned decrease in inventory purchases for the quarter in response to the
overall decline in consumer
spending.
|
|
·
|
Gross
margin percentage increased to 41.3% from 37.0% in the fourth quarter of
2008 as a result of increases in product
margin.
|
|
·
|
Operating
expenses decreased by approximately 15.2% to $9.6 million from $11.3
million in the fourth quarter of 2008. The reduction in
operating expenses resulted from a decrease of $597,000 in selling and
fulfillment expenses, a decrease of $1.7 million in marketing expenses and
a reduction in non-cash share-based compensation expense of approximately
$304,000, which was offset by an increase in salary and salary related
general and administrative expenses of approximately
$972,000.
|
|
·
|
Operating
income of $449,000 as compared to an operating loss of $1.2 million in the
fourth quarter of 2008.
|
|
·
|
Net
loss available to common stockholders decreased to $148,000 from a
net loss available to common stockholders of approximately $1.4 million in
the fourth quarter of 2008. Included in net loss is
$437,000 of non-cash expense related to the Company’s convertible
notes. Loss per share decreased to $0.01 (based on 14.5 million
weighted average shares outstanding) compared to a loss per share of $0.10
per share (based on 13.6 million weighted average shares outstanding) in
the fourth quarter of 2008.
|
|
·
|
Adjusted
EBITDA increased to positive $1.3 million from a positive adjusted EBITDA
of $79,000 in the fourth quarter of
2008.
|
|
·
|
Average
order size increased to $274.83 in the fourth quarter of 2009 compared to
$271.98 in the fourth quarter of
2008.
|
|
·
|
Cash
and cash equivalents increased to $10.0 million at December 31, 2009
compared to $4.0 million at December 31, 2008 primarily as a result of the
December 2009 private placement.
|
·
|
Inventory
decreased to $17.7 million at December 31, 2009 compared to $23.2 million
at December 31, 2008.
|
|
·
|
Net
revenue decreased by approximately 15.2% to $81.2 million from $95.8
million in 2008, as a result of the Company’s planned decrease in
inventory purchases in response to the overall decline in consumer
spending.
|
|
·
|
Gross
margin percentage increased to 38.9% from 37.1% in 2008 as a result of
increases in product margin.
|
|
·
|
Operating
expenses decreased by approximately 26.2% to $34.2 million from $46.3
million in 2008. The reduction in operating expenses resulted
from a decrease of $2.9 million in selling and fulfillment expenses, a
decrease of $6.1 million in
|
|
·
|
Operating
loss decreased by approximately 75.5% to $2.6 million from $10.8 million
in 2008.
|
|
·
|
Net
loss available to common stockholders decreased by approximately 63.9% to
$4.4 million from $12.1 million in 2008. Included in net loss
is $1.2 million of non-cash expense related to the Company’s convertible
notes. Loss per share decreased to $0.31 per share (based on
14.0 million weighted average shares outstanding) from $0.90 per share
(based on 13.4 million weighted average shares outstanding) in
2008.
|
|
·
|
Adjusted
EBITDA increased to positive $878,000 from a negative adjusted
EBITDA of $5.9 million in 2008.
|
|
·
|
Average
order size decreased to $266.66 for 2009 compared to $279.72 in
2008.
|
Three
Months Ended
|
||||||||||||
December
31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Net
sales
|
$ | 24,354,000 | $ | 27,393,000 | $ | 29,698,000 | ||||||
Cost
of sales
|
14,295,000
|
17,248,000
|
19,524,000
|
|||||||||
Gross
profit
|
10,059,000
|
10,145,000
|
10,174,000
|
|||||||||
Gross
margin
|
41.3%
|
37.0%
|
34.3%
|
|||||||||
Selling
and fulfillment expenses
|
4,498,000
|
5,095,000
|
5,370,000
|
|||||||||
Marketing
expenses
|
2,167,000
|
3,903,000
|
6,933,000
|
|||||||||
General
and administrative expenses
|
2,945,000
|
2,333,000
|
3,398,000
|
|||||||||
Total
operating expenses
|
9,610,000
|
11,331,000
|
15,701,000
|
|||||||||
|
||||||||||||
Operating
income (loss)
|
449,000
|
(1,186,000
|
)
|
(5,527,000
|
)
|
|||||||
Interest
expense to related party stockholders
|
(496,000
|
)
|
(104,000
|
)
|
--
|
|||||||
Other
interest expense, net
|
(101,000
|
)
|
(83,000
|
)
|
(29,000
|
)
|
||||||
Net
loss
|
(148,000
|
) |
(1,373,000
|
)
|
(5,556,000
|
)
|
||||||
Preferred
stock dividends
|
--
|
(3,000
|
)
|
(11,000
|
)
|
|||||||
Deemed
dividend related to beneficial conversion feature on
|
||||||||||||
Series
F Preferred Stock
|
--
|
--
|
--
|
|||||||||
Net
loss available to common stockholders
|
$ | (148,000 | ) | $ | (1,376,000 |
)
|
$ | (5,567,000 |
)
|
|||
Basic
and diluted net loss per common share
|
$ | (0.01 | ) | $ | (0.10 | ) | $ | (0.42 | ) | |||
Weighted
average common shares outstanding (basic and diluted)
|
14,517,313
|
13,647,132
|
13,211,812
|
|||||||||
Years
Ended
|
||||||||||||
December
31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Net
sales
|
$
|
81,222,000
|
$
|
95,774,000
|
$
|
91,493,000
|
||||||
Cost
of sales
|
49,665,000
|
60,288,000
|
58,754,000
|
|||||||||
Gross
profit
|
31,557,000
|
35,486,000
|
32,739,000
|
|||||||||
Gross
margin
|
38.9%
|
37.1%
|
35.8%
|
|||||||||
Selling
and fulfillment expenses
|
16,675,000
|
19,620,000
|
18,898,000
|
|||||||||
Marketing
expenses
|
8,404,000
|
14,523,000
|
16,063,000
|
|||||||||
General
and administrative expenses
|
9,139,000
|
12,191,000
|
13,848,000
|
|||||||||
Total
operating expenses
|
34,218,000
|
46,334,000
|
48,809,000
|
|||||||||
Operating
loss
|
(2,661,000
|
)
|
(10,848,000
|
)
|
(16,070,000
|
)
|
||||||
Interest
expense to related party stockholders
|
(1,413,000
|
)
|
(235,000
|
)
|
--
|
|||||||
Other
interest (expense) income, net
|
(295,000
|
)
|
(257,000
|
)
|
241,000
|
|||||||
Net
loss
|
(4,369,000
|
)
|
(11,340,000
|
)
|
(15,829,000
|
)
|
||||||
Preferred
stock dividends
|
--
|
(37,000
|
)
|
(44,000
|
)
|
|||||||
Deemed
dividend related to beneficial conversion feature on
|
||||||||||||
Series
F Preferred Stock
|
--
|
(712,000
|
)
|
--
|
||||||||
Net
loss available to common stockholders
|
$
|
(4,369,000
|
)
|
$
|
(12,089,000
|
)
|
$
|
(15,873,000
|
)
|
|||
Basic
and diluted net loss per common share
|
$
|
(0.31
|
)
|
$
|
(0.90
|
)
|
$
|
(1.21
|
)
|
|||
Weighted
average common shares outstanding (basic and diluted)
|
14,003,534
|
13,369,257
|
13,091,130
|
December
31,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Cash
and cash equivalents
|
$
|
10,049,000
|
$
|
4,004,000
|
||||
Inventories,
net
|
17,688,000
|
23,157,000
|
||||||
Prepaid
expenses and other current assets
|
4,278,000
|
4,347,000
|
||||||
Property
and equipment, net
|
3,506,000
|
6,058,000
|
||||||
Current
liabilities
|
12,611,000
|
16,250,000
|
||||||
Long-term
liabilities
|
--
|
3,106,000
|
||||||
Stockholders’
equity
|
23,035,000
|
18,394,000
|
Three
Months Ended
|
||||||||
December
31,
|
||||||||
(Unaudited)
|
||||||||
2009
|
2008
|
|||||||
Average
order size (including shipping & handling)
|
$
|
274.83
|
$
|
271.98
|
||||
New
customers added during the period
|
53,474
|
59,460
|
Years
Ended
|
||||||||
December
31,
|
||||||||
2009
|
2008
|
|||||||
Average
order size (including shipping & handling)
|
$
|
266.66
|
$
|
279.72
|
||||
New
customers added during the period
|
173,550
|
201,044
|
Three
Months Ended
|
||||||||||||
December
31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Cash
flows from operating activities:
|
||||||||||||
Net
loss
|
$
|
(148,000 |
)
|
$
|
(1,373,000
|
)
|
$
|
(5,556,000
|
)
|
|||
Adjustments
to reconcile net loss to net cash provided by operating
activities:
|
||||||||||||
Depreciation
and amortization
|
663,000
|
852,000
|
434,000
|
|||||||||
Provisions
for returns
|
(430,000
|
)
|
(708,000
|
)
|
(434,000
|
)
|
||||||
Bad
debt expense
|
100,000
|
155,000
|
176,000
|
|||||||||
Reserve
for inventory obsolescence
|
(164,000
|
)
|
(10,000
|
)
|
1,483,000
|
|||||||
Stock
based compensation
|
146,000
|
465,000
|
1,459,000
|
|||||||||
Amortization
of discount on notes payable to related party stockholders
|
80,000
|
--
|
--
|
|||||||||
Change
in fair value of embedded derivative financial liability to related
party stockholders
|
357,000
|
--
|
--
|
|||||||||
Change
in operating assets and liabilities:
|
||||||||||||
(Increase)
decrease in:
|
||||||||||||
Accounts
receivable
|
335,000
|
(298,000
|
)
|
485,000
|
||||||||
Inventories
|
403,000
|
5,194,000
|
370,000
|
|||||||||
Prepaid
expenses and other current assets
|
(244,000
|
)
|
1,929,000
|
3,130,000
|
||||||||
Other
assets
|
--
|
(47,000
|
)
|
(1,212,000
|
)
|
|||||||
Increase
(decrease) in:
|
||||||||||||
Accounts
payable
|
(799,000
|
)
|
(2,115,000
|
)
|
233,000
|
|||||||
Accrued
expenses and other current liabilities
|
1,215,000
|
(1,077,000
|
)
|
1,583,000
|
||||||||
Interest
payable to related party stockholders
|
(289,000
|
)
|
(752,000
|
)
|
--
|
|||||||
Deferred
revenue
|
702,000
|
56,000
|
(268,000
|
)
|
||||||||
Net
cash provided by operating activities
|
1,927,000
|
2,271,000
|
1,883,000
|
|||||||||
Cash
flows from investing activities:
|
||||||||||||
Purchases
of property and equipment
|
(214,000
|
)
|
(27,000
|
)
|
(1,055,000
|
)
|
||||||
Net
cash used in investing activities
|
(214,000
|
)
|
(27,000
|
)
|
(1,055,000
|
)
|
||||||
Cash
flows from financing activities:
|
||||||||||||
Purchase
of treasury stock
|
(192,000
|
)
|
(160,000
|
)
|
(1,270,000
|
)
|
||||||
Net
proceeds from 2009 financing
|
4,467,000
|
--
|
--
|
|||||||||
Net
cash provided by (used in) financing activities
|
4,275,000
|
(160,000
|
)
|
(1,270,000
|
)
|
|||||||
Net
increase (decrease) in cash and cash equivalents
|
5,988,000
|
2,084,000
|
(442,000
|
)
|
||||||||
Cash
and cash equivalents – beginning of year
|
4,061,000
|
1,920,000
|
7,172,000
|
|||||||||
Cash
and cash equivalents – end of year
|
$
|
10,049,000
|
$
|
4,004,000
|
$
|
6,730,000
|
||||||
Supplemental
disclosure of cash flow information:
|
||||||||||||
Cash
paid during the quarter for interest
|
$
|
58,000
|
$
|
71,000
|
$
|
44,000
|
||||||
Cash
paid during the quarter for interest to related party
stockholders
|
$
|
347,000
|
--
|
--
|
||||||||
Conversion
of notes payable to related party stockholders
|
$
|
3,348,000
|
$
|
--
|
$
|
--
|
(Unaudited)
|
||||||||||||
Three
Months Ended
|
||||||||||||
December
31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Net
loss
|
$
|
(148,000
|
)
|
$
|
(1,373,000
|
)
|
$
|
(5,556,000
|
)
|
|||
Interest
income
|
(7,000
|
)
|
(5,000
|
)
|
(3,000
|
)
|
||||||
Interest
expense to related party stockholders
|
496,000
|
103,000
|
--
|
|||||||||
Interest
expense
|
108,000
|
89,000
|
32,000
|
|||||||||
Depreciation
and amortization expenses
|
661,000
|
800,000
|
419,000
|
|||||||||
Non-cash
share-based compensation expenses
|
146,000
|
465,000
|
1,459,000
|
|||||||||
Adjusted
EBITDA
|
$
|
1,256,000
|
$
|
79,000
|
$
|
(3,649,000
|
)
|
Years
Ended
|
||||||||||||
December
31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Net
loss
|
$
|
(4,369,000
|
)
|
$
|
(11,340,000
|
)
|
$
|
(15,829,000
|
)
|
|||
Interest
income
|
(25,000
|
)
|
(62,000
|
)
|
(501,000
|
)
|
||||||
Interest
expense to related party stockholders
|
1,413,000
|
235,000
|
--
|
|||||||||
Interest
expense
|
320,000
|
319,000
|
260,000
|
|||||||||
Depreciation
and amortization expenses
|
2,927,000
|
2,288,000
|
1,664,000
|
|||||||||
Non-cash
share-based compensation expenses
|
612,000
|
2,707,000
|
6,194,000
|
|||||||||
Adjusted
EBITDA
|
$
|
878,000
|
$
|
(5,853,000
|
)
|
$
|
(8,212,000
|
)
|