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
SYS-CON Events announced today that CAST Software will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter ...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
Is advanced scheduling in Kubernetes achievable? Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, will answer these questions and demonstrate techniques for implementing advanced scheduling. For example, using spot instances ...
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...
First generation hyperconverged solutions have taken the data center by storm, rapidly proliferating in pockets everywhere to provide further consolidation of floor space and workloads. These first generation solutions are not without challenges, however. In his session at 21st Cloud Expo, Wes Talbert, a Principal Architect and results-driven enterprise sales leader at NetApp, will discuss how the HCI solution of tomorrow will integrate with the public cloud to deliver a quality hybrid cloud e...
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
The session is centered around the tracing of systems on cloud using technologies like ebpf. The goal is to talk about what this technology is all about and what purpose it serves. In his session at 21st Cloud Expo, Shashank Jain, Development Architect at SAP, will touch upon concepts of observability in the cloud and also some of the challenges we have. Generally most cloud-based monitoring tools capture details at a very granular level. To troubleshoot problems this might not be good enough.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...