In the News
uBid.com Holdings, Inc. Announces Third Quarter 2007 Results
uBid.com’s Certified Merchant Program continues to Grow Net revenues in uBid’s Certified Merchant Program were up 27.2% to $1.4 million--Net Loss improves $468,000 or 17.6% over the year-ago period- - Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and non-cash compensation charge was a loss of $2.0 million compared to a loss of $2.4 million in the third quarter of the prior year
Chicago, IL, November 14, 2007 – uBid.com Holdings, Inc. (OTCBB: UBHI) whose uBid, Inc. subsidiary is one of the leading business-to-consumer and business-to-business online auction marketplaces in the U.S., today announced results for the third quarter ended September 30, 2007.
Highlights for the third quarter of 2007 include:
- Net Revenues in uBid’s Certified Merchant Program, a key business metric, were up 27.2% to $1.4 million compared to $1.1 million one year ago.(1)
- Gross Profit for the quarter increased $246,000 or 12.7% over the same period in the prior year. The gross profit percentage increased to 22.5% from 13.5% in the prior year.
- Net loss of $2.2 million compares to a net loss of $2.7 million in third quarter 2006.
- Adjusted Earnings before Interest, Taxes, Depreciation, Amortization (EBITDA) and non-cash compensation improved 14.7% in the third quarter versus the third quarter of the prior year.(2)
- uBid’s Certified Merchant Program grew by 93.5% to 3,321 approved merchants at September 30, 2007 from 1,716 merchants at September 30, 2006. This also represents an increase of 15.6% from June 30, 2007.
- Active auction participants totaled 328,000 while the number of auction events increased 27.2% to approximately 715,000 from 562,000 in the third quarter of 2006.
- Customer registrations totaled approximately 63,000 in the third quarter of 2007 compared to approximately 54,000 in the third quarter of 2006.
- Operating Expenses decreased $184,000 or 4.0% in the third quarter of 2007 compared to the prior year. During the quarter the company recorded $355,000 in one time expenses related to the search for the new CEO and consulting expenses for Sarbanes Oxley compliance.
- Total current assets at September 30, 2007 were $17.3 million, which includes $9.4 million in cash and cash equivalents.
Commenting on the results for the period Jeffrey D Hoffman, who was recently appointed CEO of uBid.com Holdings, Inc. stated, “The growth in both the number of Certified Merchants and their associated increase in revenues are further evidence that our strategy in building stronger relationships with our sellers is starting to bear fruit. We’ll be building on this momentum and leveraging these relationships as part of our growth strategy in 2008.”
Additional highlights include:
September 24, 2007 -- uBid.com Holdings, Inc. appointed Jeffrey D. Hoffman, accomplished
entrepreneur and innovator in the fields of on-line auction and retail, software, and
entertainment as its Chief Executive Officer. Mr. Hoffman also joined uBid.com's Board of
Directors. Mr. Hoffman succeeds Robert H. Tomlinson, Jr., uBid.com’s previous CEO, who
informed the Board on March 26, 2007 of his intention to step down before the end of 2007.
About uBid.com Holdings, Inc.
uBid.com Holdings, Inc. and subsidiaries (the “Company”) operate a leading on-line businessto-
consumer and business-to-business marketplace that enables itself, certified merchants,
manufacturers, retailers, distributors and small businesses to offer high quality excess, new,
overstock, close-out, refurbished and limited supply brand name merchandise to consumer and
business customers primarily located in the United States. Through the Company’s website,
located at www.ubid.com, the Company offers merchandise across a wide range of product
categories including but not limited to computer products, consumer electronics, apparel,
housewares, watches, jewelry, travel, sporting goods, home improvement products and
collectibles. The Company’s marketplace employs a combination of auction style and fixed
price formats. uBid.com Holdings, Inc. is publicly traded on the NASD OTC bulletin board
(UBHI).
(1) This news release contains the financial measure gross merchandise sales (“GMS”) that is not an Accounting Principle Generally Accepted in the United States of America (“GAAP”). GMS represent the retail value of all sales transactions, inclusive of freight, which flow through the uBid.com platform, whether or not uBid.com is the seller of the merchandise, or records the full amount of such sales on its financial statements. We use gross merchandise sales as a metric for operating our business. We believe that investors will have a more thorough understanding of our historical revenue trends if they have visibility to GAAP net revenue as well as the non-GAAP financial measure gross merchandise sales. We believe that certain non-GAAP performance measures and ratios, which our management uses in managing our business, may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported operating results or cash flow from operations or any other measure of performance prepared in accordance with GAAP. In addition, our presentation of these measures may not be comparable to similarly titled measures other companies use.
MEDIA CONTACTS:
Ryan Calverley
Press Officer
Enable Holdings, Inc.
(773) 272-4414
Ryan.Calverley@enableholdings.com
