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Printcafe Announces Q1 Results: Revenue Down 20%

Wednesday, April 30, 2003

Press release from the issuing company

PITTSBURGH, April 29, 2003 -- Printcafe today announced revenue of $9.4 million for its first quarter ended March 31, 2003, a 20% decrease from the $11.7 million of revenue recorded in the first quarter of 2002. Earnings before interest, taxes, depreciation, amortization, non-cash charges, other expense and acquisition related expenses (EBITDA) for the first quarter of 2003 were $(1,683,000), compared to $270,000 computed on the same basis in the prior year period. The Company's pro forma net loss for the first quarter of 2003 was $2,540,000, or $(0.24) per share, compared to a pro forma net loss of $2,109,000 in the first quarter of 2002, or $(0.20) per share. EBITDA and pro forma net loss are calculated as follows: Quarter Ended March 31, 2003 (in thousands, except share and per share amounts) Gross Profit (GAAP) - $7,127 Less: Sales & marketing expense - (4,068) Research & development expense - (3,025) (1) General & admin expense (1) - (1,717) EBITDA - (1,683) Less: Interest & depreciation - (857) Pro forma net loss - (2,540) (2) Pro forma net loss per share - (.24) Quarter Ended March 31, 2002 (in thousands, except share and per share amounts) Gross Profit (GAAP) - $9,034 Less: Sales & marketing expense - (3,947) Research & development expense - (3,034) (1) General & admin expense (1) - (1,783) EBITDA - 270 Less: Interest & depreciation - (2,379) Pro forma net loss - (2,109) (2) Pro forma net loss per share - (.20) (1) Excludes approximately $1,400 of expenses incurred during the first quarter of 2003 related to the pending acquisition of the Company (2) Calculated using number of shares outstanding (10,633,000) as of March 31, 2003 The Company reported a $10.3 million net loss attributable to common stock calculated in accordance with generally accepted accounting principles (GAAP) for the first quarter of 2003 compared to a net loss of $13.2 million in the prior year period. The first quarter of 2002 included a deduction of $3.3 million related to the accretion of redeemable preferred stock of the Company that was outstanding at that time. The chart below provides a reconciliation of the pro forma operating results and the operating results reported under GAAP. The Company completed its initial public offering (IPO) on June 21, 2002. Prior to this date, the Company had both preferred stock and common stock outstanding. In connection with the IPO, all of the outstanding shares of preferred stock converted to common stock, which increased the number of shares of common stock outstanding from 163,000 at March 31, 2002 (the last quarter end prior to the IPO) to 10,595,000 at June 30, 2002. The number of common shares outstanding on March 31, 2003 was 10,633,000. "We saw a sharp disruption in our sales during the first two months of the quarter, which we believe was primarily related to confusion surrounding the pending acquisition that was announced earlier in the quarter as well as overall economic conditions," said Marc Olin, Printcafe Chairman and Chief Executive Officer. "However, conditions improved in March and we are hopeful that we will return to prior revenue levels later in the year." The Company believes that its EBITDA and pro forma results provide useful information to investors because they reveal the Company's results excluding non-cash expenses and cash expenses that the Company believes are not indicative of its on-going operations. However, Printcafe urges readers to review and consider carefully the GAAP financial information contained in this earnings release and the Company's SEC filings. Q1 Highlights On February 26, 2003 the Company announced that it had entered into a merger agreement with Electronics for Imaging, Inc. which provides for the acquisition of Printcafe for $2.60 per share for each outstanding Printcafe share. Printcafe stockholders can elect to receive any combination of cash or EFI stock. The transaction is expected to close early in Q3 of 2003 and is subject to regulatory and stockholder approval.

 

 

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