PFSW
$6.59
Pfsweb
($.02)
(.30%)
Earnings Details
4th Quarter December 2016
Thursday, March 16, 2017 8:30:41 AM
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Summary

Pfsweb (PFSW) Recent Earnings

Pfsweb (PFSW) reported 4th Quarter December 2016 earnings of $0.08 per share on revenue of $102.5 million. The consensus earnings estimate was $0.17 per share on revenue of $95.2 million. Revenue grew 13.8% on a year-over-year basis.

PFSweb Inc is a provider of integrated ecommerce and business process outsourcing solutions to companies in the United States, Canada and Europe.

Results
Reported Earnings
$0.08
Earnings Whisper
-
Consensus Estimate
$0.17
Reported Revenue
$102.5 Mil
Revenue Estimate
$95.2 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

PFSweb Reports Fourth Quarter and Full Year 2016 Results

ALLEN, TX--(Marketwired - Mar 16, 2017) - PFSweb, Inc. (PFSW) (PFS), a global commerce service provider, reported results for the fourth quarter and full year ended December 31, 2016.

Fourth Quarter 2016 Summary vs. Same Year-Ago Quarter

Total revenues increased 14% to $102.5 million

Service fee equivalent revenue (a non-GAAP measure defined below) increased 18% to $72.7 million

Service fee gross margin was 27.7% compared to 31.6%

Net loss was $3.6 million or $(0.19) per share, compared to a loss of $0.6 million or $(0.03) per share

Adjusted EBITDA (a non-GAAP measure defined below) was $6.9 million compared to $7.5 million

Full Year 2016 Summary vs. 2015

Total revenues increased 16% to $334.6 million

Service fee equivalent revenue increased 24% to $229.0 million

Service fee gross margin was 31.2% compared to 32.2%

Net loss was $7.5 million or $(0.41) per share, compared to a loss of $7.9 million or $(0.45) per share

Adjusted EBITDA was $18.2 million compared to $20.7 million

Management Commentary

"2016 marked the largest year of recurring revenue and project bookings in the history of our company," said Mike Willoughby, CEO of PFS. "These strong bookings were enabled by our investments in sales, marketing and infrastructure, as well as multiple acquisitions over the last three years that have expanded our service offering and addressable market.

"During the fourth quarter, we continued to execute on our sales pipeline, resulting in $15 million of new bookings. We also once again successfully completed the holiday season with a high level of client satisfaction during this important period.

"As announced in October, we experienced operational and financial challenges with a newly launched fulfillment client in 2016 related to their unique business requirements. While efforts were made to improve the performance of this client engagement during the quarter, we have mutually agreed to disengage and expect to fully transition them off our platform during the second quarter of 2017. As we evaluate our omni-channel operations in 2017, we will focus on driving higher margin engagements. On a year-over-year basis, this will present a slight revenue headwind, however, we plan to utilize the related infrastructure capacity for more profitable engagements in the second half of the year. As a result, we are slightly paring back our 2017 revenue guidance, while maintaining our expectation for adjusted EBITDA growth of 26% to 43%."

Fourth Quarter 2016 Financial Results

Total revenues in the fourth quarter of 2016 increased 14% to $102.5 million compared to $90.1 million in the same period of 2015. Service fee revenue in the fourth quarter increased 18% to $71.9 million compared to $60.9 million last year. Product revenue was $12.0 million compared to $13.9 million in the same period of 2015 due to ongoing restructuring activities by the company’s last remaining client under this business model and their discontinuation of certain product lines.

Service fee equivalent revenue increased 18% to $72.7 million compared to $61.6 million in the year-ago quarter, driven by both new and expanded client relationships, strong client volumes during the holiday period and approximately $1.1 million of incremental service fees generated by the company’s acquisition of Conexus in June 2016.

Service fee gross margin in the fourth quarter of 2016 was 27.7% compared to 31.6% in the same period of 2015. The decrease was primarily due to higher facility, labor and operating costs applicable to certain new, large fulfillment clients implemented during the year. This was partially offset by higher-margin professional services activity.

Net loss in the fourth quarter of 2016 was $3.6 million or $(0.19) per share, compared to a net loss of $0.6 million or $(0.03) per share in the same period of 2015. Net loss in the fourth quarter of 2016 included $4.0 million of acquisition-related, restructuring and other costs, $1.1 million in amortization of acquisition-related intangible assets, and $0.4 million in stock-based compensation expense. This compares to $1.3 million of acquisition-related, restructuring and other costs, $1.2 million in amortization of acquisition-related intangible assets, and $1.2 million in stock-based compensation expense in the same period of 2015.

Adjusted EBITDA (a non-GAAP measure defined below) was $6.9 million compared to $7.5 million in the same period of 2015. As a percentage of service fee equivalent revenue, adjusted EBITDA was 9.5% compared to 12.1% in the year-ago quarter. The decline in adjusted EBITDA margin was primarily driven by incremental costs associated with servicing certain new clients, as well as an increase in sales and marketing and infrastructure resources. This was partially offset by higher-margin professional services activity and reduced incentive-based compensation.

Non-GAAP net loss (a non-GAAP measure defined below) in the fourth quarter of 2016 was $2.0 million compared to $3.1 million in the fourth quarter of 2015.

At December 31, 2016, cash and cash equivalents totaled $24.4 million compared to $21.8 million at December 31, 2015. Total debt was $59.7 million compared to $35.4 million at December 31, 2015, with the increase primarily driven by funds used to support the June 2016 Conexus acquisition and payment of calendar 2015 related earn-out liabilities applicable to prior acquisitions, as well as funding of capital expenditure requirements.

Full Year 2016 Financial Results

Total revenues in 2016 increased 16% to $334.6 million compared to $288.3 million in 2015. Service fee revenue in 2016 increased 24% to a record $226.2 million compared to $182.2 million last year, while product revenue was $48.7 million compared to $58.7 million in the prior year. Service fee equivalent revenue increased 24% to a record $229.0 million compared to $185.3 million in 2015, including approximately $18 million of incremental revenue generated applicable to the company’s acquisition of CrossView and Moda in 2015 and Conexus in 2016.

Service fee gross margin in 2016 decreased 100 basis points to 31.2% compared to 32.2% last year, primarily due to increased costs to support certain new fulfillment clients in 2016, partially offset by increased higher-margin professional services activity.

Net loss in 2016 was $7.5 million or $(0.41) per share, compared to a net loss of $7.9 million or $(0.45) per share in 2015. Net loss in 2016 included $3.5 million in acquisition-related, restructuring and other costs, $4.0 million in amortization of acquisition-related intangibles, and $2.1 million in stock-based compensation expense. This compares to $5.8 million in acquisition-related, restructuring and other costs, $2.8 million in amortization of acquisition-related intangibles, and $4.6 million in stock-based compensation expense in 2015.

Adjusted EBITDA was $18.2 million in 2016 compared to $20.7 million in 2015.

Non-GAAP net income in 2016 was $2.1 million compared to $5.4 million in 2015.

2017 Outlook

PFS is revising its outlook for 2017 service fee equivalent revenue to range between $240 million and $250 million (previously $245 million to $260 million), reflecting growth of 5% to 9% from 2016. The company maintains its target for adjusted EBITDA to range between $23 million and $26 million, reflecting 26% to 43% growth from 2016.

Conference Call

PFS will conduct a conference call today at 11:00 a.m. Eastern time to discuss its results for the fourth quarter and full year ended December 31, 2016.

PFS CEO Michael Willoughby and CFO Tom Madden will host the conference call, followed by a question and answer period.

Date: Thursday, March 16, 2017 Time: 11:00 a.m. Eastern Time (8:00 a.m. Pacific time) Toll-free dial-in number: 1-877-548-7911 International dial-in number: 1-719-325-4907 Conference ID: 9392101

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios at 1-949-574-3860.

The conference call will be broadcast live and available for replay at http://public.viavid.com/index.php?id=123341 and via the investor relations section of the company’s website at www.pfsweb.com.

A replay of the conference call will be available after 2:00 p.m. Eastern Time on the same day through March 30, 2017.

Toll-free replay number: 1-844-512-2921 International replay number: 1-412-317-6671 Replay ID: 9392101

About PFSweb, Inc.

PFSweb (PFS) (PFSW) is a global commerce service provider of solutions including digital strategy consulting, digital agency and marketing services, technology development services, business process outsourcing services, and a complete omni-channel technology ecosystem. The company provides these solutions and services to major brand names and other companies seeking to optimize every customer experience and enhance their traditional and online business channels. PFS supports organizations across various industries, including Procter & Gamble, L’Oreal USA, LEGO, Canada Goose, ASICS, Roots Canada Ltd., PANDORA, Charlotte Russe, Anastasia Beverly Hills, David’s Bridal, T.J. Maxx, the United States Mint and many more. PFS is headquartered in Allen, TX with additional locations in Tennessee, Mississippi, Minnesota, Washington, New York, Ohio, North Carolina, Canada, Belgium, England, Bulgaria, and India. For more information, please visit www.pfsweb.com or download the free PFS IR App on your iPhone, iPad, or Android device.

Non-GAAP Financial Measures

This news release contains certain non-GAAP measures, including non-GAAP net income (loss), earnings before interest, income taxes, depreciation and amortization (EBITDA), adjusted EBITDA and service fee equivalent revenue.

Non-GAAP net income (loss) represents net income (loss) calculated in accordance with U.S. GAAP as adjusted for the impact of non-cash stock-based compensation expense, acquisition-related, restructuring and other (income) costs and the amortization of acquisition-related intangible assets.

EBITDA represents earnings (or losses) before interest, income taxes, depreciation, and amortization. Adjusted EBITDA further eliminates the effect of stock-based compensation, acquisition-related, restructuring and other (income) costs.

Service fee equivalent revenue represents service fee revenue plus the gross profit earned on product revenue and does not alter existing revenue recognition.

Our service fee equivalent revenue target for 2017 includes an estimated gross margin on product sales of approximately $2 million (based on targeted product revenue of $42 million less targeted cost of product revenue of $40 million) plus a targeted range of between $238 million to $248 million of service fee revenue.

The adjusted EBITDA outlook for 2017 have not been reconciled to the company’s net loss outlook for the same period because certain items that would impact interest expense, income tax provision (benefit), depreciation and amortization (including amortization of acquisition-related intangible assets), stock-based compensation, and acquisition-related, restructuring and other (income) costs, all of which are reconciling items between net loss and adjusted EBITDA, cannot be reasonably predicted. Accordingly, reconciliation of adjusted EBITDA outlook to net loss outlook for 2017 is not available without unreasonable effort.

Non-GAAP net income (loss), EBITDA, adjusted EBITDA and service fee equivalent revenue are used by management, analysts, investors and other interested parties in evaluating our operating performance compared to that of other companies in our industry. The calculation of non-GAAP net income (loss) eliminates the effect of stock-based compensation, acquisition-related, restructuring and other (income) costs and amortization of acquisition-related intangible assets and EBITDA and adjusted EBITDA further eliminate the effect of financing, income taxes and the accounting effects of capital spending, which items may vary from different companies for reasons unrelated to overall operating performance. Service fee equivalent revenue allows client contracts with similar operational support models but different financial models to be combined as if all contracts were being operated on a service fee revenue basis.

PFS believes these non-GAAP measures provide useful information to both management and investors by focusing on certain operational metrics and excluding certain expenses in order to present its core operating performance and results. These measures 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. The non-GAAP measures included in this press release have been reconciled to the GAAP results in the attached tables.

Forward-Looking Statements

The matters discussed herein consist of forward-looking information under the Private Securities Litigation Reform Act of 1995 and is subject to and involves risks and uncertainties, which could cause actual results to differ materially from the forward-looking information. PFS’ Annual Report on Form 10-K for the year ended December 31, 2016 identifies certain factors that could cause actual results to differ materially from those projected in any forward looking statements made and investors are advised to review the Annual Report of the company and the Risk Factors described therein. PFS undertakes no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future. There may be additional risks that we do not currently view as material or that are not presently known.

 
PFSweb, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (A)
(In Thousands, Except Share Data)
 
 
 
  December 31,
    December 31,
 
 
  2016
    2015
 
 
     
       
 
ASSETS
     
       
 
CURRENT ASSETS:
     
       
 
 
Cash and cash equivalents
  $
24,425
    $
21,781
 
 
Restricted cash
    215
      275
 
 
Accounts receivable, net of allowance for doubtful accounts of $494 and $600 at December 31, 2016 and December 31, 2015, respectively
    80,223
      70,700
 
 
Inventories, net of reserves of $568 and $739 at December 31, 2016 and December 31, 2015, respectively
    6,632
      9,262
 
 
Other receivables
    6,750
      8,704
 
 
Prepaid expenses and other current assets
    7,299
      5,662
 
 
 
Total current assets
    125,544
      116,384  
 
     
       
 
PROPERTY AND EQUIPMENT, net
    30,264
      24,093
 
INTANGIBLE ASSETS, net
    6,864
      8,810
 
GOODWILL
    46,210
      39,829
 
OTHER ASSETS
    2,454
      2,174
 
 
 
Total assets
    211,336
      191,290  
 
     
       
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
     
       
 
CURRENT LIABILITIES:
     
       
 
 
Current portion of long-term debt and capital lease obligations
  $
7,300
    $
3,153
 
 
Trade accounts payable
    59,752
      51,170
 
 
Deferred revenue
    7,156
      7,390
 
 
Performance-based contingent payments
    2,405
      11,679
 
 
Accrued expenses
    30,360
      30,563
 
 
 
Total current liabilities
    106,973
      103,955  
 
     
       
 
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion
    52,399
      32,238
 
DEFERRED REVENUE
    4,127
      4,499
 
DEFERRED RENT
    4,810
      4,362
 
PERFORMANCE-BASED CONTINGENT PAYMENTS
    1,678
      2,478
 
OTHER LIABILITIES
    1,066
      -
 
 
 
Total liabilities
    171,053
      147,532  
 
     
       
 
 
     
       
 
COMMITMENTS AND CONTINGENCIES
     
       
 
 
     
       
 
SHAREHOLDERS’ EQUITY:
     
       
 
 
Preferred stock, $1.00 par value; 1,000,000 shares authorized; none issued and outstanding
    -
      -
 
 
Common stock, $.001 par value; 35,000,000 shares authorized; 18,768,567 and 18,136,218 shares issued at December 31, 2016 and December 31, 2015, respectively; and 18,735,100 and 18,012,751 shares outstanding as of December 31, 2016 and December 31, 2015, respectively     19
      18
 
 
Additional paid-in capital
    146,286
      141,948  
 
Accumulated deficit
    (105,317 )
    (97,787 )
 
Accumulated other comprehensive income (loss)
    (580
)
    (296
)
 
Treasury stock at cost, 33,467 shares
    (125
)
    (125
)
 
 
Total shareholders’ equity
    40,283
      43,758
 
 
 
Total liabilities and shareholders’ equity
  $
211,336
    $
191,290  
(A) The financial data above should be read in conjunction with the audited consolidated financial statements of PFSweb, Inc. included in its Form 10-K
 
 
 
 
PFSweb, Inc. and Subsidiaries
 
Unaudited Condensed Consolidated Statements of Operations (A)
 
(In Thousands, Except Per Share Data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
Year ended
 
 
 
December 31,
 
 
December 31,
 
 
 
2016
 
 
2015
 
 
2016
 
 
2015
 
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service fee revenue
 
$
71,894
 
 
$
60,865
 
 
$
226,165
 
 
$
182,175
 
 
Product revenue, net
 
 
12,037
 
 
 
13,928
 
 
 
48,695
 
 
 
58,659
 
 
Pass-thru revenue
 
 
18,524
 
 
 
15,271
 
 
 
59,783
 
 
 
47,435
 
 
 
 
Total revenues
 
 
102,455
 
 
 
90,064
 
 
 
334,643
 
 
 
288,269
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COSTS OF REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of service fee revenue
 
 
51,966
 
 
 
41,633
 
 
 
155,513
 
 
 
123,574
 
 
Cost of product revenue
 
 
11,234
 
 
 
13,215
 
 
 
45,883
 
 
 
55,587
 
 
Cost of pass-thru revenue
 
 
18,524
 
 
 
15,271
 
 
 
59,783
 
 
 
47,435
 
 
 
 
Total costs of revenues  
 
81,724
 
 
 
70,119
 
 
 
261,179
 
 
 
226,596
 
 
 
 
Gross profit
 
 
20,731
 
 
 
19,945
 
 
 
73,464
 
 
 
61,673
 
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
 
 
22,378
 
 
 
19,212
 
 
 
76,304
 
 
 
66,280
 
 
 
Income (loss) from operations
 
 
(1,647
)
 
 
733
 
 
 
(2,840
)
 
 
(4,607
)
INTEREST EXPENSE (INCOME), NET
 
 
516
 
 
 
509
 
 
 
2,323
 
 
 
1,757
 
 
 
Income (loss) before income taxes
 
 
(2,163
)
 
 
224
 
 
 
(5,163
)
 
 
(6,364
)
INCOME TAX EXPENSE (BENEFIT)
 
 
1,394
 
 
 
822
 
 
 
2,367
 
 
 
1,497
 
NET INCOME (LOSS)
 
$
(3,557
)
 
$
(598
)
 
$
(7,530
)
 
$
(7,861
)
NON-GAAP NET INCOME (LOSS)
 
$
1,956
 
 
$
3,132
 
 
$
2,090
 
 
$
5,435
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS) PER SHARE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
(0.19
)
 
$
(0.03
)
 
$
(0.41
)
 
$
(0.45
)
 
Diluted
 
$
(0.19
)
 
$
(0.03
)
 
$
(0.41
)
 
$
(0.45
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
18,714
 
 
 
18,080
 
 
 
18,542
 
 
 
17,608
 
 
Diluted
 
 
18,714
 
 
 
18,080
 
 
 
18,542
 
 
 
17,608
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA
 
$
2,524
 
 
$
4,918
 
 
$
12,537
 
 
$
10,224
 
ADJUSTED EBITDA
 
$
6,911
 
 
$
7,453
 
 
$
18,163
 
 
$
20,692
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A) The financial data above should be read in conjunction with the audited consolidated financial statements of PFSweb, Inc. included in its Form 10-K for the year ended December 31, 2016.
 
 
 
 
 
PFSweb, Inc. and Subsidiaries
 
Unaudited Reconciliation of Certain Non-GAAP Items to GAAP
 
(In Thousands, Except Per Share Data)
 
 
 
 
 
 
Three Months Ended
    Year ended
 
 
December 31,
    December 31,
 
 
2016
    2015
    2016
    2015
 
 
   
       
       
       
 
NET INCOME (LOSS)
$
(3,557
)
  $
(598
)
  $
(7,530
)
  $
(7,861
)
 
Income tax expense (benefit)
  1,394
      822
      2,367
      1,497
 
 
Interest expense, net
  516
      509
      2,323
      1,757
 
 
Depreciation and amortization
  4,171
      4,185
      15,377
      14,831
 
EBITDA
$
2,524
    $
4,918
    $
12,537
    $
10,224
 
 
Stock-based compensation
  368
      1,191
      2,111
      4,637
 
 
Acquisition-related, restructuring and other (income) costs   4,019
      1,344
      3,515
      5,831
 
ADJUSTED EBITDA
$
6,911
    $
7,453
    $
18,163
    $
20,692
 
 
   
       
       
       
 
 
   
       
       
       
 
 
Three Months Ended
    Year ended
 
 
December 31,
    December 31,
 
 
2016
    2015
    2016
    2015
 
 
   
       
       
       
 
NET INCOME (LOSS)
$
(3,557
)
  $
(598
)
  $
(7,530
)
  $
(7,861
)
 
Stock-based compensation
  368
      1,191
      2,111
      4,637
 
 
Amortization of acquisition-related intangible assets
  1,126
      1,195
      3,994
      2,828
 
 
Acquisition-related, restructuring and other (income) costs   4,019
      1,344
      3,515
      5,831
 
NON-GAAP NET INCOME (LOSS)
$
1,956
    $
3,132
    $
2,090
    $
5,435
 
 
   
       
       
       
 
 
   
       
       
       
 
 
Three Months Ended
    Year ended
 
 
December 31,
    December 31,
 
 
2016
    2015
    2016
    2015
 
 
   
       
       
       
 
TOTAL REVENUES
$
102,455     $
90,064
    $
334,643     $
288,269  
 
Pass-thru revenue
  (18,524 )
    (15,271 )
    (59,783 )
    (47,435 )
 
Cost of product revenue
  (11,234 )
    (13,215 )
    (45,883 )
    (55,587 )
SERVICE FEE EQUIVALENT REVENUE
$
72,697
    $
61,578
    $
228,977     $
185,247  
 
 
 
 
PFSweb, Inc. and Subsidiaries
 
Unaudited Consolidating Statements of Operations
 
For the Three Months Ended December 31, 2016
 
(In Thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business &
 
 
 
 
 
 
 
 
PFSweb
 
 
Retail Connect
 
 
Eliminations
 
 
Consolidated
 
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service fee revenue
$
64,448
 
 
$
7,446
 
 
$
-
 
 
$
71,894
 
 
Service fee revenue - affiliate
 
7,120
 
 
 
189
 
 
 
(7,309
)
 
 
-
 
 
Product revenue, net
 
-
 
 
 
12,037
 
 
 
-
 
 
 
12,037
 
 
Pass-thru revenue
 
18,524
 
 
 
-
 
 
 
-
 
 
 
18,524
 
 
 
 
Total revenues
 
90,092
 
 
 
19,672
 
 
 
(7,309
)
 
 
102,455
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COSTS OF REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of service fee revenue
 
51,908
 
 
 
6,504
 
 
 
(6,446
)
 
 
51,966
 
 
Cost of product revenue
 
-
 
 
 
11,234
 
 
 
-
 
 
 
11,234
 
 
Cost of pass-thru revenue
 
18,524
 
 
 
-
 
 
 
-
 
 
 
18,524
 
 
 
 
Total costs of revenues
 
70,432
 
 
 
17,738
 
 
 
(6,446
)
 
 
81,724
 
 
 
 
Gross profit
 
19,660
 
 
 
1,934
 
 
 
(863
)
 
 
20,731
 
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
 
22,876
 
 
 
365
 
 
 
(863
)
 
 
22,378
 
 
 
Income (loss) from operations
 
(3,216
)
 
 
1,569
 
 
 
-
 
 
 
(1,647
)
INTEREST EXPENSE (INCOME), NET
 
443
 
 
 
73
 
 
 
-
 
 
 
516
 
 
 
Income (loss) before income taxes
 
(3,659
)
 
 
1,496
 
 
 
-
 
 
 
(2,163
)
INCOME TAX EXPENSE (BENEFIT)
 
874
 
 
 
520
 
 
 
-
 
 
 
1,394
 
NET INCOME (LOSS)
$
(4,533
)
 
$
976
 
 
$
-
 
 
$
(3,557
)
NON-GAAP NET INCOME (LOSS)
$
980
 
 
$
976
 
 
$
-
 
 
$
1,956
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA
$
951
 
 
$
1,573
 
 
$
-
 
 
$
2,524
 
ADJUSTED EBITDA
$
5,338
 
 
$
1,573
 
 
$
-
 
 
$
6,911
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A reconciliation of NET INCOME (LOSS) to EBITDA and ADJUSTED EBITDA follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS)
$
(4,533
)
 
$
976
 
 
$
-
 
 
 
(3,557
)
 
 
Income tax expense (benefit)
 
874
 
 
 
520
 
 
 
-
 
 
 
1,394
 
 
 
Interest expense (income), net
 
443
 
 
 
73
 
 
 
-
 
 
 
516
 
 
 
Depreciation and amortization
 
3,041
 
 
 
4
 
 
 
-
 
 
 
3,045
 
 
 
Amortization of acquisition-related intangible assets  
1,126
 
 
 
-
 
 
 
-
 
 
 
1,126
 
EBITDA
$
951
 
 
$
1,573
 
 
$
-
 
 
$
2,524
 
 
 
Stock-based compensation
 
368
 
 
 
-
 
 
 
-
 
 
 
368
 
 
 
Acquisition-related, restructuring and other income
 
4,019
 
 
 
-
 
 
 
-
 
 
 
4,019
 
ADJUSTED EBITDA
$
5,338
 
 
$
1,573
 
 
$
-
 
 
$
6,911
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A reconciliation of NET INCOME (LOSS) to NON-GAAP NET INCOME (LOSS) follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS)
$
(4,533
)
 
$
976
 
 
$
-
 
 
$
(3,557
)
 
 
Stock-based compensation
 
368
 
 
 
-
 
 
 
-
 
 
 
368
 
 
 
Amortization of acquisition-related intangible assets  
1,126
 
 
 
-
 
 
 
-
 
 
 
1,126
 
 
 
Acquisition-related, restructuring and other income
 
4,019
 
 
 
-
 
 
 
-
 
 
 
4,019
 
NON-GAAP NET INCOME (LOSS)
$
980
 
 
$
976
 
 
$
-
 
 
$
1,956
 
 
 
Note: Business and Retail Connect includes our Supplies Distributors and PFSweb Retail Connect operations, which operate similar financial models on behalf of our client relationships.
 
 
 
 
 
PFSweb, Inc. and Subsidiaries
 
Unaudited Consolidating Statements of Operations
 
For the Twelve Months Ended December 31, 2016
 
(In Thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business &
 
 
 
 
 
 
 
 
PFSweb
 
 
Retail Connect
 
Eliminations
 
 
Consolidated
 
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service fee revenue
 
$
207,641
 
 
$
18,524
 
$
-
 
 
$
226,165
 
 
Service fee revenue - affiliate
 
 
16,907
 
 
 
878
 
 
(17,785
)
 
 
-
 
 
Product revenue, net
 
 
-
 
 
 
48,695
 
 
-
 
 
 
48,695
 
 
Pass-thru revenue
 
 
59,783
 
 
 
-
 
 
-
 
 
 
59,783
 
 
 
 
Total revenues
 
 
284,331
 
 
 
68,097
 
 
(17,785
)
 
 
334,643
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COSTS OF REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of service fee revenue
 
 
154,985
 
 
 
17,319
 
 
(16,791
)
 
 
155,513
 
 
Cost of product revenue
 
 
-
 
 
 
45,883
 
 
-
 
 
 
45,883
 
 
Cost of pass-thru revenue
 
 
59,783
 
 
 
-
 
 
-
 
 
 
59,783
 
 
 
 
Total costs of revenues
 
 
214,768
 
 
 
63,202
 
 
(16,791
)
 
 
261,179
 
 
 
 
Gross profit
 
 
69,563
 
 
 
4,895
 
 
(994
)
 
 
73,464
 
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
 
 
75,295
 
 
 
2,003
 
 
(994
)
 
 
76,304
 
 
 
Income (loss) from operations
 
 
(5,732
)
 
 
2,892
 
 
-
 
 
 
(2,840
)
INTEREST EXPENSE (INCOME), NET
 
 
1,994
 
 
 
329
 
 
-
 
 
 
2,323
 
 
 
Income (loss) before income taxes
 
 
(7,726
)
 
 
2,563
 
 
-
 
 
 
(5,163
)
INCOME TAX EXPENSE (BENEFIT)
 
 
1,467
 
 
 
900
 
 
-
 
 
 
2,367
 
NET INCOME (LOSS)
 
$
(9,193
)
 
$
1,663
 
$
-
 
 
$
(7,530
)
NON-GAAP NET INCOME (LOSS)
 
$
427
 
 
$
1,663
 
$
-
 
 
$
2,090
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA
 
$
9,623
 
 
$
2,914
 
$
-
 
 
$
12,537
 
ADJUSTED EBITDA
 
$
15,249
 
 
$
2,914
 
$
-
 
 
$
18,163
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A reconciliation of NET INCOME (LOSS) to EBITDA and ADJUSTED EBITDA follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS)
 
$
(9,193
)
 
$
1,663
 
$
-
 
 
 
(7,530
)
 
 
Income tax expense (benefit)
 
 
1,467
 
 
 
900
 
 
-
 
 
 
2,367
 
 
 
Interest expense (income), net
 
 
1,994
 
 
 
329
 
 
-
 
 
 
2,323
 
 
 
Depreciation and amortization
 
 
11,361
 
 
 
22
 
 
-
 
 
 
11,383
 
 
 
Amortization of acquisition-related intangible assets  
 
3,994
 
 
 
-
 
 
-
 
 
 
3,994
 
EBITDA
 
$
9,623
 
 
$
2,914
 
$
-
 
 
$
12,537
 
 
 
Stock-based compensation
 
 
2,111
 
 
 
-
 
 
-
 
 
 
2,111
 
 
 
Acquisition-related, restructuring and other income
 
 
3,515
 
 
 
-
 
 
-
 
 
 
3,515
 
ADJUSTED EBITDA
 
$
15,249
 
 
$
2,914
 
$
-
 
 
$
18,163
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A reconciliation of NET INCOME (LOSS) to NON-GAAP NET INCOME (LOSS) follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS)
 
$
(9,193
)
 
$
1,663
 
$
-
 
 
$
(7,530
)
 
 
Stock-based compensation
 
 
2,111
 
 
 
-
 
 
-
 
 
 
2,111
 
 
 
Amortization of acquisition-related intangible assets  
 
3,994
 
 
 
-
 
 
-
 
 
 
3,994
 
 
 
Acquisition-related, restructuring and other income
 
 
3,515
 
 
 
-
 
 
-
 
 
 
3,515
 
NON-GAAP NET INCOME (LOSS)
 
$
427
 
 
$
1,663
 
$
-
 
 
$
2,090
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: Business and Retail Connect includes our Supplies Distributors and PFSweb Retail Connect operations, which operate similar financial models on behalf of our client relationships.
 
 
 
 
 
PFSweb, Inc. and Subsidiaries
 
Unaudited Consolidating Statements of Operations
 
For the Three Months Ended December 31, 2015
 
(In Thousands)
 
 
 
 
 
 
     
   
     
 
 
 
 
    Business &
   
     
 
 
 
PFSweb
    Retail Connect
  Eliminations
    Consolidated
 
REVENUES:
 
 
 
     
 
               
 
Service fee revenue
 
$
54,771
    $
6,094
  $
-
    $
60,865  
 
Service fee revenue - affiliate
 
 
5,422
     
250
    (5,672 )
    -
 
 
Product revenue, net
 
 
-
     
13,928
    -
      13,928  
 
Pass-thru revenue
 
 
15,271
     
-
    -
      15,271  
 
 
 
Total revenues
 
 
75,464
     
20,272
    (5,672 )
    90,064  
 
 
 
 
     
 
               
COSTS OF REVENUES:
 
 
 
     
 
               
 
Cost of service fee revenue
 
 
41,345
     
5,777
    (5,489 )
    41,633  
 
Cost of product revenue
 
 
-
     
13,215
    -
      13,215  
 
Cost of pass-thru revenue
 
 
15,271
     
-
    -
      15,271  
 
 
 
Total costs of revenues
 
 
56,616
     
18,992
    (5,489 )
    70,119  
 
 
 
Gross profit
 
 
18,848
     
1,280
    (183
)
    19,945  
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
 
 
18,899
     
496
    (183
)
    19,212  
 
 
Income (loss) from operations
 
 
(51
)
   
784
    -
      733
 
INTEREST EXPENSE (INCOME), NET
 
 
414
     
95
    -
      509
 
 
 
Income (loss) before income taxes
 
 
(465
)
   
689
    -
      224
 
INCOME TAX EXPENSE (BENEFIT)
 
 
592
     
230
    -
      822
 
NET INCOME (LOSS)
 
$
(1,057
)
  $
459
  $
-
    $
(598
)
NON-GAAP NET INCOME (LOSS)
 
$
2,673
    $
459
  $
-
    $
3,132
 
 
 
 
 
     
 
               
EBITDA
 
$
4,124
    $
794
  $
-
    $
4,918
 
ADJUSTED EBITDA
 
$
6,659
    $
794
  $
-
    $
7,453
 
 
 
 
 
     
 
               
 
 
 
 
     
 
               
A reconciliation of NET INCOME (LOSS) to EBITDA and ADJUSTED EBITDA follows:
     
 
               
 
 
 
 
     
 
               
NET INCOME (LOSS)
 
$
(1,057
)
  $
459
  $
-
      (598
)
 
 
Income tax expense (benefit)
 
 
592
     
230
    -
      822
 
 
 
Interest expense (income), net
 
 
414
     
95
    -
      509
 
 
 
Depreciation and amortization
 
 
2,980
     
10
    -
      2,990
 
 
 
Amortization of acquisition-related intangible assets  
 
1,195
     
-
    -
      1,195
 
EBITDA
 
$
4,124
    $
794
  $
-
    $
4,918
 
 
 
Stock-based compensation
 
 
1,191
     
-
    -
      1,191
 
 
 
Acquisition-related, restructuring and other costs
 
 
1,344
     
-
    -
      1,344
 
ADJUSTED EBITDA
 
$
6,659
    $
794
  $
-
    $
7,453
 
 
 
 
 
     
 
               
A reconciliation of NET INCOME (LOSS) to NON-GAAP NET INCOME (LOSS) follows:
     
 
               
 
 
 
 
     
 
               
NET INCOME (LOSS)
 
$
(1,057
)
  $
459
  $
-
    $
(598
)
 
 
Stock-based compensation
 
 
1,191
     
-
    -
      1,191
 
 
 
Amortization of acquisition-related intangible assets  
 
1,195
     
-
    -
      1,195
 
 
 
Acquisition-related, restructuring and other costs
 
 
1,344
     
-
    -
      1,344
 
NON-GAAP NET INCOME (LOSS)
 
$
2,673
    $
459
  $
-
    $
3,132
 
Note: Business and Retail Connect includes our Supplies Distributors and PFSweb Retail Connect operations, which operate similar financial models on behalf of our client relationships.
 
 
 
 
PFSweb, Inc. and Subsidiaries
 
Unaudited Consolidating Statements of Operations
 
For the Twelve Months Ended December 31, 2015
 
(In Thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business &
 
 
 
 
 
 
 
PFSweb
 
 
Retail Connect
 
Eliminations
 
 
Consolidated
 
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service fee revenue
$
165,510
 
 
$
16,665
 
$
-
 
 
$
182,175
 
 
Service fee revenue - affiliate
 
15,559
 
 
 
818
 
 
(16,377
)
 
 
-
 
 
Product revenue, net
 
-
 
 
 
58,659
 
 
-
 
 
 
58,659
 
 
Pass-thru revenue
 
47,435
 
 
 
-
 
 
-
 
 
 
47,435
 
 
 
 
Total revenues
 
228,504
 
 
 
76,142
 
 
(16,377
)
 
 
288,269
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COSTS OF REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of service fee revenue
 
122,981
 
 
 
16,193
 
 
(15,600
)
 
 
123,574
 
 
Cost of product revenue
 
-
 
 
 
55,587
 
 
-
 
 
 
55,587
 
 
Cost of pass-thru revenue
 
47,435
 
 
 
-
 
 
-
 
 
 
47,435
 
 
 
 
Total costs of revenues
 
170,416
 
 
 
71,780
 
 
(15,600
)
 
 
226,596
 
 
 
 
Gross profit
 
58,088
 
 
 
4,362
 
 
(777
)
 
 
61,673
 
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
 
64,427
 
 
 
2,630
 
 
(777
)
 
 
66,280
 
 
 
Income (loss) from operations
 
(6,339
)
 
 
1,732
 
 
-
 
 
 
(4,607
)
INTEREST EXPENSE (INCOME), NET
 
1,326
 
 
 
431
 
 
-
 
 
 
1,757
 
 
 
Income (loss) before income taxes
 
(7,665
)
 
 
1,301
 
 
-
 
 
 
(6,364
)
INCOME TAX EXPENSE (BENEFIT)
 
954
 
 
 
543
 
 
-
 
 
 
1,497
 
NET INCOME (LOSS)
$
(8,619
)
 
$
758
 
$
-
 
 
$
(7,861
)
NON-GAAP NET INCOME (LOSS)
$
4,357
 
 
$
1,078
 
$
-
 
 
$
5,435
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA
$
8,424
 
 
$
1,800
 
$
-
 
 
$
10,224
 
ADJUSTED EBITDA
$
18,572
 
 
$
2,120
 
$
-
 
 
$
20,692
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A reconciliation of NET INCOME (LOSS) to EBITDA and ADJUSTED EBITDA follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of acquisition-related intangible assets  
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS)
$
(8,619
)
 
$
758
 
$
-
 
 
 
(7,861
)
 
 
Income tax expense (benefit)
 
954
 
 
 
543
 
 
-
 
 
 
1,497
 
 
 
Interest expense (income), net
 
1,326
 
 
 
431
 
 
-
 
 
 
1,757
 
 
 
Depreciation and amortization
 
11,935
 
 
 
68
 
 
-
 
 
 
12,003
 
 
 
Amortization of acquisition-related intangible assets  
2,828
 
 
 
-
 
 
-
 
 
 
2,828
 
EBITDA
$
8,424
 
 
$
1,800
 
$
-
 
 
$
10,224
 
 
 
Stock-based compensation
 
4,637
 
 
 
-
 
 
-
 
 
 
4,637
 
 
 
Acquisition-related, restructuring and other costs
 
5,511
 
 
 
320
 
 
-
 
 
 
5,831
 
ADJUSTED EBITDA
$
18,572
 
 
$
2,120
 
$
-
 
 
$
20,692
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A reconciliation of NET INCOME (LOSS) to NON-GAAP NET INCOME (LOSS) follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS)
$
(8,619
)
 
$
758
 
$
-
 
 
$
(7,861
)
 
 
Stock-based compensation
 
4,637
 
 
 
-
 
 
-
 
 
 
4,637
 
 
 
Amortization of acquisition-related intangible assets  
2,828
 
 
 
-
 
 
-
 
 
 
2,828
 
 
 
Acquisition-related, restructuring and other costs
 
5,511
 
 
 
320
 
 
-
 
 
 
5,831
 
NON-GAAP NET INCOME (LOSS)
$
4,357
 
 
$
1,078
 
$
-
 
 
$
5,435
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: Business and Retail Connect includes our Supplies Distributors and PFSweb Retail Connect operations, which operate similar financial models on behalf of our client relationships.
 
 
 
 
 
PFSweb, Inc. and Subsidiaries
 
Unaudited Condensed Consolidating Balance Sheets
 
as of December 31, 2016
 
(In Thousands)
 
 
 
 
 
 
   
    Business &
     
     
 
 
  PFSweb
    Retail Connect
    Eliminations
    Consolidated
 
 
     
     
 
       
       
 
ASSETS
     
     
 
       
       
 
CURRENT ASSETS:
     
     
 
       
       
 
 
Cash and cash equivalents
  $
5,166
    $
19,259
    $
-
    $
24,425
 
 
Restricted cash
    -
     
215
      -
      215
 
 
Accounts receivable, net
    59,292
     
22,243
      (1,312
)
    80,223
 
 
Inventories, net
    -
     
6,632
      -
      6,632
 
 
Other receivables
    362
     
6,388
      -
      6,750
 
 
Prepaid expenses and other current assets
    6,511
     
788
      -
      7,299
 
 
 
Total current assets
    71,331
     
55,525
      (1,312
)
    125,544
 
 
     
     
 
       
       
 
PROPERTY AND EQUIPMENT, net
    30,230
     
34
      -
      30,264
 
RECEIVABLE/INVESTMENT IN AFFILIATES
    10,063
     
-
      (10,063 )
    -
 
INTANGIBLE ASSETS, net
    6,864
     
-
      -
      6,864
 
GOODWILL
    46,210
     
-
      -
      46,210
 
OTHER ASSETS
    2,454
     
-
      -
      2,454
 
 
 
Total assets
    167,152
     
55,559
      (11,375 )
    211,336
 
 
     
     
 
       
       
 
LIABILITIES AND SHAREHOLDERS EQUITY
     
     
 
       
       
 
CURRENT LIABILITIES:
     
     
 
       
       
 
 
Current portion of long-term debt and capital lease obligations
  $
7,300
    $
-
    $
-
    $
7,300
 
 
Trade accounts payable
    19,687
     
41,377
      (1,312
)
    59,752
 
 
Deferred revenue
    7,156
     
-
      -
      7,156
 
 
Performance-based contingent payments
    2,405
     
-
      -
      2,405
 
 
Accrued expenses
    26,048
     
4,312
      -
      30,360
 
 
 
Total current liabilities
    62,596
     
45,689
      (1,312
)
    106,973
 
 
     
     
 
       
       
 
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion
    52,399
     
-
      -
      52,399
 
PAYABLE TO AFFILIATES
    -
     
22,045
      (22,045 )
    -
 
DEFERRED REVENUE
    4,127
     
-
      -
      4,127
 
DEFERRED RENT
    4,810
     
-
      -
      4,810
 
PERFORMANCE-BASED CONTINGENT PAYMENTS
    1,678
     
-
      -
      1,678
 
OTHER LIABILITIES
    1,066
     
-
      -
      1,066
 
 
 
Total liabilities
    126,676
     
67,734
      (23,357 )
    171,053
 
 
     
     
 
       
       
 
 
     
     
 
       
       
 
COMMITMENTS AND CONTINGENCIES
     
     
 
       
       
 
 
     
     
 
       
       
 
SHAREHOLDERS’ EQUITY:
     
     
 
       
       
 
 
Common stock
    19
     
19
      (19
)
    19
 
 
Capital contributions
    -
     
1,000
      (1,000
)
    -
 
 
Additional paid-in capital
    146,286
     
28,060
      (28,060 )
    146,286
 
 
Retained earnings (accumulated deficit)
    (105,317 )
   
(42,230 )
    42,230
      (105,317 )
 
Accumulated other comprehensive income (loss)
    (387
)
   
976
      (1,169
)
    (580
)
 
Treasury stock
    (125
)
   
-
      -
      (125
)
 
 
Total shareholders’ equity
    40,476
     
(12,175 )
    11,982
      40,283
 
 
 
Total liabilities and shareholders’ equity   $
167,152
    $
55,559
    $
(11,375 )
  $
211,336
 
(A) The financial data above should be read in conjunction with the audited consolidated financial statements of PFSweb, Inc. included in its Form 10-K for the year ended December 31, 2016.
 
 
 
 
PFSweb, Inc. and Subsidiaries
 
Unaudited Condensed Consolidating Balance Sheets
 
as of December 31, 2015
 
(In Thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business &
 
 
 
 
 
 
 
 
 
PFSweb
 
 
Retail Connect
 
 
Eliminations
 
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
7,962
 
 
$
13,819
 
 
$
-
 
 
$
21,781
 
 
Restricted cash
 
 
51
 
 
 
224
 
 
 
-
 
 
 
275
 
 
Accounts receivable, net
 
 
51,231
 
 
 
20,348
 
 
 
(879
)
 
 
70,700
 
 
Inventories, net
 
 
-
 
 
 
9,262
 
 
 
-
 
 
 
9,262
 
 
Other receivables
 
 
2,621
 
 
 
6,083
 
 
 
-
 
 
 
8,704
 
 
Prepaid expenses and other current assets
 
 
4,744
 
 
 
918
 
 
 
-
 
 
 
5,662
 
 
 
Total current assets
 
 
66,609
 
 
 
50,654
 
 
 
(879
)
 
 
116,384
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PROPERTY AND EQUIPMENT, net
 
 
24,065
 
 
 
28
 
 
 
-
 
 
 
24,093
 
RECEIVABLE/INVESTMENT IN AFFILIATES
 
 
9,577
 
 
 
-
 
 
 
(9,577
)
 
 
-
 
INTANGIBLE ASSETS, net
 
 
8,810
 
 
 
-
 
 
 
-
 
 
 
8,810
 
GOODWILL
 
 
39,829
 
 
 
-
 
 
 
-
 
 
 
39,829
 
OTHER ASSETS
 
 
2,174
 
 
 
-
 
 
 
-
 
 
 
2,174
 
 
 
 
Total assets
 
 
151,064
 
 
 
50,682
 
 
 
(10,456
)
 
 
191,290
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt and capital lease obligations
 
$
3,153
 
 
$
-
 
 
$
-
 
 
$
3,153
 
 
Trade accounts payable
 
 
15,329
 
 
 
36,710
 
 
 
(869
)
 
 
51,170
 
 
Deferred revenue
 
 
7,390
 
 
 
-
 
 
 
-
 
 
 
7,390
 
 
Performance-based contingent payments
 
 
11,679
 
 
 
-
 
 
 
-
 
 
 
11,679
 
 
Accrued expenses
 
 
26,015
 
 
 
4,558
 
 
 
(10
)
 
 
30,563
 
 
 
Total current liabilities
 
 
63,566
 
 
 
41,268
 
 
 
(879
)
 
 
103,955
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion
 
 
32,238
 
 
 
-
 
 
 
-
 
 
 
32,238
 
PAYABLE TO AFFILIATES
 
 
-
 
 
 
22,056
 
 
 
(22,056
)
 
 
-
 
DEFERRED REVENUE
 
 
4,499
 
 
 
-
 
 
 
-
 
 
 
4,499
 
DEFERRED RENT
 
 
4,362
 
 
 
-
 
 
 
-
 
 
 
4,362
 
PERFORMANCE-BASED CONTINGENT PAYMENTS
 
 
2,478
 
 
 
-
 
 
 
-
 
 
 
2,478
 
 
 
Total liabilities
 
 
107,143
 
 
 
63,324
 
 
 
(22,935
)
 
 
147,532
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMMITMENTS AND CONTINGENCIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SHAREHOLDERS’ EQUITY:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
 
 
18
 
 
 
19
 
 
 
(19
)
 
 
18
 
 
Capital contributions
 
 
-
 
 
 
1,000
 
 
 
(1,000
)
 
 
-
 
 
Additional paid-in capital
 
 
141,948
 
 
 
28,060
 
 
 
(28,060
)
 
 
141,948
 
 
Retained earnings (accumulated deficit)
 
 
(97,616
)
 
 
(42,827
)
 
 
42,656
 
 
 
(97,787
)
 
Accumulated other comprehensive income (loss)
 
 
(304
)
 
 
1,106
 
 
 
(1,098
)
 
 
(296
)
 
Treasury stock
 
 
(125
)
 
 
-
 
 
 
-
 
 
 
(125
)
 
 
Total shareholders’ equity
 
 
43,921
 
 
 
(12,642
)
 
 
12,479
 
 
 
43,758
 
 
 
Total liabilities and shareholders’ equity
 
$
151,064
 
 
$
50,682
 
 
$
(10,456
)
 
$
191,290
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A) The financial data above should be read in conjunction with the audited consolidated financial statements of PFSweb, Inc. included in its Form 10-K for the year ended December 31, 2016.
 
 
 

Company Contact: Michael C. Willoughby Chief Executive Officer Or Thomas J. Madden Chief Financial Officer Tel 972-881-2900 Investor Relations: Liolios Scott Liolios or Sean Mansouri Tel 949-574-3860 Email Contact