Welcome!

News Feed Item

Geeknet Announces Fourth Quarter And Full Year 2013 Financial Results

Revenue increases 12% in the 4th quarter to $74 million, and 16% for the year to $138 million

FAIRFAX, Va., Feb. 21, 2014 /PRNewswire/ -- Geeknet, Inc. (Nasdaq: GKNT), the parent company of online retailer ThinkGeek.com, today announced financial results for the quarter and year ended December 31, 2013.

Geeknet, Inc. logo.

Total revenue for the fourth quarter of 2013 was $74.3 million, an increase of 12% from $66.3 million in the fourth quarter of 2012.  Net income for the fourth quarter of 2013 was $5.1 million or $0.76 per diluted share compared to net income of $6.1 million or $0.92 per diluted share for the same period a year ago.  Excluding income from discontinued operations, net income from continuing operations was $4.7 million in the fourth quarter of 2012, or $0.71 per diluted share. Adjusted EBITDA for the fourth quarter of 2013 was $5.7 million, compared to an adjusted EBITDA of $7.5 million for the same period a year ago. 

Revenue for 2013 grew 16% to $138.3 million. Net loss for 2013 was $0.2 million, or $0.04 per diluted share, compared to net income of $13.9 million, or $2.12 per diluted share, for 2012.  2012 net income included income from discontinued operations of $12.1 million and a $4.0 million gain from the sale of our Collabnet investment.  Excluding these non-recurring items in 2012, Geeknet had a loss from operations of $2.1 million, compared to a loss from operations of $0.1 million in 2013. Adjusted EBITDA for 2013 was $3.2 million, compared to adjusted EBITDA of $2.9 million for 2012.  A reconciliation of net income or loss as reported to adjusted EBITDA is included in this release.

2013 ThinkGeek Highlights:

  • Gross margin increased to 20% vs. 18% in 2012
  • Launched over 2000 new items including over 470 exclusive items
  • Wholesale revenue increased over 200% to $22.4 million
  • Daily unique visitors were 91 million, an increase of 2% and average order value for orders received increased to $59 compared to $58 in 2012

"Overall, we had a solid performance in 2013, ending the year with 16% revenue growth and positive adjusted EBITDA," said Katy McCarthy,  Chief Executive Officer.  "Our Wholesale segment had a breakout year and expanded our reach to new customers with our exclusive products. We also invested this year in our leadership, our website and our infrastructure which should position us to take advantage of future opportunities." 

Supplemental schedules of the Company's quarterly statements of operations and operational statistics are available on the Company's web site at investors.geek.net.

A conference call and audio webcast will be held at 11:00 am ET on February 21, 2014 and may be accessed by calling (877) 348-9353 or (253) 237-1159 outside the U.S., or by visiting investors.geek.net. A dial in replay will be available from 2:00 PM ET February, 21, 2014 until 11:59PM ET February 23, 2014 by calling (855) 859-2056 or (404) 537-3406, with conference ID 81544069.

About Geeknet, Inc.

ThinkGeek, a wholly owned subsidiary of Geeknet, Inc. (NASDAQ: GKNT), is the premier retailer for the global geek community.  Since 1999, ThinkGeek has been creating a world where everyone can express their inner geek, embrace their passions, and connect with each other.  Our obsession is creating and sharing unique and authentic product experiences that stimulate our fans' imaginations and fuel their geek core.  We believe that there is a geek in everyone and that it should be celebrated.  Want to learn more?  Check out thinkgeek.com or geek.net.

Use of Non-GAAP Financial Measures

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, we also report adjusted EBITDA.  The method we use to calculate adjusted EBITDA is not in accordance with GAAP, is likely to differ from the methods used by other companies for similarly titled measures and should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. 

We believe that adjusted EBITDA provides useful information to both management and investors and is an additional measurement which may be used to evaluate our operating performance. Our management and Board of Directors use adjusted EBITDA as part of their reporting and planning process and it is the primary measure we use to evaluate our operating performance.  In addition, we have historically reported adjusted EBITDA to the investment community.  We also believe that the financial analysts who regularly follow and report on us and the business sector in which we compete use adjusted EBITDA to prepare their financial performance estimates to measure our performance against other sector participants and to project our future financial results.

We define adjusted EBITDA as earnings or loss from continuing operations before gain on sale of non-marketable securities, interest and other expense, income taxes, stock-based compensation and depreciation.  Adjusted EBITDA excludes certain expenses that we believe are not directly related to our core operating results.  Although some of the items may recur on a regular basis, management does not consider activities associated with these items as core to its operations.  With respect to stock-based compensation, we recognize expenses associated with stock-based compensation that require management to make assumptions about our common stock, such as expected future stock price volatility, the anticipated duration of outstanding stock options and awards and the forfeiture rate.  While other forms of expenses (such as cash compensation, inventory costs and real estate costs) are reasonably correlated to our underlying business and such costs are incurred principally or wholly in the particular fiscal period being reported, stock-based compensation expense is not reasonably correlated to the particular fiscal period in question, but rather is based on expected future events that have no relationship (and in certain instances, an inverse relationship) with how well we currently operate our business.

NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on our current expectations, and involve risks and uncertainties. Forward-looking statements contained herein include statements regarding our ability to take advantage of future business opportunities.  Actual results may differ materially from those expressed or implied in such forward-looking statements due to various factors, including: popularity and demand for our retail products; management's strategy, plans and objectives for future operations; employee relations and our ability to attract and retain highly qualified personnel; our ability to continue to invest in developing and acquiring new products; competition, competitors and our ability to compete; liquidity and capital resources; the outcome of any litigation to which we are a party; our accounting policies; and sufficiency of our cash resources and investments to meet our operating and working capital requirements.    Investors should consult our filings with the Securities and Exchange Commission, sec.gov, including the risk factors section of our Annual Report on Form 10-K for the year ended December 31, 2013, for further information regarding these and other risks of our business. All forward-looking statements included in this press release are based upon information available to us as of the date hereof, and we do not assume any obligations to update such statements or the reasons why actual results could differ materially from those projected in such statements.

GKNT-F

 





GEEKNET, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data, unaudited)






Year Ended

December 31,


Three Months Ended

December 31,


2013


2012


2013


2012









Net revenue

$138,262


$118,913


$74,338


$66,339

Cost of revenue

111,145


97,848


59,500


52,192

  Gross margin

27,117


21,065


14,838


14,147

Operating expenses:








  Sales and marketing

11,888


9,184


6,130


4,095

  Technology and design

6,076


3,968


1,721


1,176

  General and administrative

9,296


10,001


1,922


2,372

    Total operating expenses

27,260


23,153


9,773


7,643

(Loss) income from operations

(143)


(2,088)


5,065


6,504

Gain on sale of non-marketable securities


4,021



Interest and other (expense) income, net

(24)


(122)


1


(63)

  (Loss) income before income taxes

(167)


1,811


5,066


6,441

Income tax provision


6



1,765

Net (loss) income from continuing operations

(167)


1,805


5,066


4,676

(Loss) income from discontinued operations, net of tax

(67)


12,102


3


1,380

  Net (loss) income

$     (234)


$  13,907


$  5,069


$  6,056

 (Loss) income per share from continuing operations:








   Basic

$    (0.03)


$     0.28


$    0.76


$    0.71

   Diluted

$    (0.03)


$     0.28


$    0.76


$    0.71

(Loss) income per share from discontinued operations:








   Basic

$    (0.01)


$     1.87


$       —


$    0.21

  Diluted

$    (0.01)


$     1.85


$       —


$    0.21

Net (loss) income per share:








  Basic

$    (0.04)


$     2.15


$    0.76


$    0.92

  Diluted

$    (0.04)


$     2.12


$    0.76


$    0.92

Shares used in per share calculations:








   Basic

6,620


6,466


6,638


6,551

   Diluted

6,620


6,556


6,698


6,607









 





GEEKNET, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)






December 31,
 2013


December 31,
 2012

ASSETS

Current assets:




  Cash and cash equivalents

$         53,084


$         57,294

  Accounts receivable, net of allowance of $6 and $14 as of December 31, 2013 and December 31, 2012, respectively

9,719


1,050

  Inventories, net

20,186


16,657

  Prepaid expenses and other current assets

4,202


7,013

  Total current assets

87,191


82,014

Property and equipment, net

2,465


3,523

Other long-term assets

50


335

  Total assets

$         89,706


$         85,872





LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:




  Accounts payable

$         10,250


$         10,192

  Deferred revenue

2,828


2,303

  Accrued liabilities and other

6,661


4,265

Total current liabilities

19,739


16,760

Other long-term liabilities


29

Total liabilities

19,739


16,789

Commitments and Contingencies (Note 4)




Stockholders' equity:




Preferred stock, $0.001 par value; 1,000 shares authorized; no shares issued or outstanding 


Common stock, $0.001 par value; authorized — 25,000;  issued — 6,901 and 6,738 shares, as of December 31, 2013 and December 31, 2012, respectively; outstanding — 6,639 and 6,555 shares as of December 31, 2013 and December 31, 2012, respectively

7


7

  Treasury stock, 263 shares at December 31, 2013 and 183 shares at December 31, 2012

(3,479)


(2,182)

  Additional paid-in capital

816,826


814,411

  Accumulated other comprehensive income

16


16

  Accumulated deficit

(743,403)


(743,169)

Total stockholders' equity

69,967


69,083

Total liabilities and stockholders' equity

$         89,706


$         85,872





 



GEEKNET, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited)




Year Ended
December 31,


2013


2012


Cash flows from operating activities from continuing operations:





  Net (loss) income

(234)


13,907


  Loss (income) from discontinued operations, net of tax

67


(12,102)


  (Loss) income from continuing operations

(167)


1,805


  Adjustments to reconcile (loss) income from continuing operations to net cash used in operating activities:





  Depreciation

1,258


1,394


  Stock-based compensation expense

2,070


3,559


  Provision for bad debts

70


38


  Change in reserve for excess and obsolete inventory

(15)


120


  Gain on sale of non-marketable securities


(4,021)


  Loss on sale of assets, net

16


53


  Changes in assets and liabilities:





  Accounts receivable

(8,739)


(322)


  Inventories

(3,514)


(7,842)


  Prepaid expenses and other assets

96


(1,855)


  Accounts payable

58


4,636


  Deferred revenue

525


744


  Accrued liabilities and other

2,396


122


  Other long-term liabilities

(29)


(314)


    Net cash used in operating activities

(5,975)


(1,883)


Cash flows from investing activities:





  Purchase of property and equipment

(216)


(113)


  Proceeds from sale of non-marketable equity investment


6,000


  Proceeds from sale of discontinued operations

3,000


17,000


  Transaction costs from sale of discontinued operations


(1,100)


    Net cash provided by investing activities

2,784


21,787


Cash flows from financing activities:





  Proceeds from issuance of common stock

317


355


  Repurchase of stock

(1,297)


(1,204)


    Net cash used in financing activities

(980)


(849)


Cash flows from discontinued operations:





  Net cash (used in) provided by operating activities

(39)


2,395


  Net cash used in investing activities


(1,066)


Net cash (used in) provided by discontinued operations

(39)


1,329


Net change in cash and cash equivalents

(4,210)


20,384


Cash and cash equivalents, beginning of year

57,294


36,910


Cash and cash equivalents, end of period

$53,084


$57,294







 





GEEKNET, INC.

RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA

(In thousands, unaudited)






Year Ended

December 31,


Three Months Ended

December 31,


2013


2012


2013


2012

Net (loss) Income - as reported

$  (234)


$13,907


$5,069


$6,056

Reconciling items:








  Loss (income) from discontinued operations - net of tax

67


(12,102)


(3)


(1,380)

  Gain on sale of non-marketable securities


(4,021)



  Interest and other expense (income), net

24


122


(1)


63

  Income taxes provision


6



1,765

  Stock-based compensation expense included in cost of revenues

(81)


376


20


107

  Stock-based compensation expense included in operating expenses

2,151


3,183


297


609

  Depreciation

1,258


1,394


308


318

Adjusted EBITDA

$3,185


$  2,865


$5,690


$7,538









 







GEEKNET, INC.

Segment Data

(In thousands, unaudited)








Website


Wholesale


Total Company

Year Ended December 31, 2013






  Net revenue

$115,909


$22,353


$138,262

  Cost of revenue

96,458


14,687


111,145

  Gross margin

19,451


7,666


27,117

  Gross margin %

16.8%


34.3%


19.6%







Year Ended December 31, 2012






  Net revenue

$111,938


$6,975


$118,913

  Cost of revenue

92,758


5,090


97,848

  Gross margin

19,180


1,885


21,065

  Gross margin %

17.1%


27.0%


17.7%







Year Ended December 31, 2011






  Net revenue

$93,691


$5,366


$99,057

  Cost of revenue

79,568


4,034


83,602

  Gross margin

14,123


1,332


15,455

  Gross margin %

15.1%


24.8%


15.6%







 

Logo: http://photos.prnewswire.com/prnh/20120510/MM05555LOGO

SOURCE Geeknet, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...