AMAZON.COM RELEASES 2001 SECOND QUARTER RESULTS Pro Forma Operating Loss Improves to $28 Million; Used Orders Approximately 10% of Total U.S. Orders; Expands Strategic Alliance with America Online |
SEATTLE - July 23, 2001 - Amazon.com, Inc. (Nasdaq: AMZN) today announced financial results for its second quarter ended June 30, 2001. Net sales were within the range of the company's guidance, increasing 16 percent to $668 million, compared with $578 million in the second quarter of 2000. Pro forma loss from operations improved by 69 percent to $28 million, or 4 percent of net sales, compared with $89 million, or 15 percent of net sales in the second quarter of 2000. "We continue to make progress toward reaching pro forma operating profitability in the fourth quarter of 2001," said Warren Jenson, Amazon.com's chief financial officer. "This quarter, the U.S. was profitable on a pro forma operating basis for the first time, and this is our sixth sequential quarter of improved absolute pro forma operating results." "We thank our over 21 million customers who have purchased in the last year, more than 1 million of whom have purchased a used product from one of our more than 60,000 Amazon Marketplace sellers" said David Risher, Amazon.com's senior vice president of marketing and merchandising. "In fact, this quarter, roughly 10 percent of our U.S. orders were for a used product, and we're very pleased that so many of our customers have embraced this option." Today the company also announced an expanded strategic alliance with America Online, Inc., a subsidiary of AOL Time Warner (NYSE: AOL). Amazon.com's e-commerce platform will power America Online's Shop@ destinations. America Online, Inc., also invested $100 million in Amazon.com common stock, priced at the lower of $15.282 per share or the average closing price of Amazon.com common stock from July 24 to July 30, 2001. The common stock was sold pursuant to a registration statement that Amazon.com previously filed with the Securities and Exchange Commission.
Highlights of Second Quarter Results (comparisons are with the second quarter of 2000)
Business Outlook The following forward-looking statements reflect Amazon.com's expectations as of July 23, 2001. Given the potential changes in general economic conditions and consumer spending, the emerging nature of online retail and the various other risk factors discussed below, actual results may differ materially. The company intends to continue its practice of not updating forward-looking statements other than in publicly available statements. Third Quarter 2001 Expectations
Fourth Quarter 2001 Expectations
These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including, among others, the rate of growth of the Internet and online commerce, customer spending patterns, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products sold to customers, the mix of net sales derived from products as compared with services, risks of inventory management, the degree to which the company enters into service relationships and other strategic transactions, fluctuations in the value of securities and non-cash payments Amazon.com receives in connection with such transactions, foreign currency exchange risks, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, Amazon.com's anticipated losses, significant amount of indebtedness, competition, seasonality, potential fluctuations in operating results, management of potential growth, system interruption, consumer trends, fulfillment center optimization, inventory, limited operating history, fraud and Amazon Payments, new business areas, international expansion, business combinations, strategic alliances and strategic partnerships. More information about factors that potentially could affect Amazon.com's financial results is included in Amazon.com's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2000, and all subsequent filings, including Quarterly Reports on Form 10-Q. Pro Forma Results Pro forma information regarding Amazon.com's results from operations is provided as a complement to results provided in accordance with accounting principles generally accepted in the United States (GAAP). Pro forma operating loss excludes stock-based compensation costs, amortization of goodwill and other intangibles, and restructuring-related and other costs. Management measures the progress of the business using this pro forma information. Pro forma net loss excludes stock-based compensation costs, amortization of goodwill and other intangibles, restructuring-related and other costs, other gains, equity in losses of equity-method investees, and the cumulative effect of change in accounting principle. Conference Call A conference call to discuss second quarter 2001 financial results and 2001 business outlook will be Webcast live on Monday, July 23, 2001, at 5:00 p.m. EDT/2:00 p.m. PDT. This conference call will be available at www.amazon.com/ir through September 30, 2001, and will contain forward-looking statements and other material information. About Amazon.com Amazon.com (Nasdaq: AMZN) opened its virtual doors on the World Wide Web in July 1995 and today offers Earth's Biggest Selection, along with online auctions and free electronic greeting cards. Amazon.com seeks to be the world's most customer-centric company, where customers can find and discover anything they might want to buy online. Amazon.com and sellers list millions of unique new and used items in categories such as electronics, kitchen and housewares, books, music, DVDs, videos, camera and photo items, toys, software, computer and video games, cell phones and service, tools and hardware, and outdoor living products. Through Amazon Marketplace, zShops and Auctions, any business or individual can sell virtually anything to Amazon.com's over 35 million cumulative customer accounts, and with Amazon Payments, sellers can accept credit card transactions, avoiding the hassles of offline payments. Amazon.com operates four international Web sites: www.amazon.co.uk, www.amazon.de, www.amazon.fr and www.amazon.co.jp. It also operates the Internet Movie Database (www.imdb.com), the Web's comprehensive and authoritative source of information on more than 275,000 movies and entertainment titles and 1 million cast and crew members dating from the birth of film. |
AMAZON.COM, INC. | |||||||||
Statements of Operations | |||||||||
(in thousands, except per share data) | |||||||||
(unaudited) | |||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30, | June 30, | ||||||||
2001 | 2000 | 2001 | 2000 | ||||||
Net sales | $00667,625 | $00577,876 | $01,367,981 | $01,151,765 | |||||
Cost of sales | 487,905 | 441,812 | 1,005,664 | 887,567 | |||||
Gross profit | 179,720 | 136,064 | 362,317 | 264,198 | |||||
Operating expenses: | |||||||||
Fulfillment | 85,583 | 87,597 | 183,831 | 187,060 | |||||
Marketing | 34,658 | 42,216 | 71,296 | 82,864 | |||||
Technology and content | 64,710 | 67,132 | 134,994 | 128,376 | |||||
General and administrative | 22,778 | 28,468 | 48,806 | 54,513 | |||||
Stock-based compensation | 2,351 | 8,166 | 5,267 | 21,818 | |||||
Amortization of goodwill and other intangibles | 50,830 | 80,413 | 101,661 | 163,368 | |||||
Restructuring-related and other | 58,650 | 2,449 | 172,910 | 4,468 | |||||
Total operating expenses | 319,560 | 316,441 | 718,765 | 642,467 | |||||
Loss from operations | (139,840) | (180,377) | (356,448) | (378,269) | |||||
Interest income | 6,807 | 10,314 | 16,757 | 20,440 | |||||
Interest expense | (35,148) | (33,397) | (68,896) | (61,018) | |||||
Other expense, net | (1,178) | (3,272) | (5,062) | (8,046) | |||||
Other gains, net | 11,315 | - | 45,172 | - | |||||
Net interest expense and other | (18,204) | (26,355) | (12,029) | (48,624) | |||||
Loss before equity in losses of equity-method investees | (158,044) | (206,732) | (368,477) | (426,893) | |||||
Equity in losses of equity-method investees, net | (10,315) | (110,452) | (23,490) | (198,716) | |||||
Net loss before change in accounting principle | (168,359) | (317,184) | (391,967) | (625,609) | |||||
Cumulative effect of change in accounting principle | - | - | (10,523) | - | |||||
Net loss | $00(168,359) | $00(317,184) | $00(402,490) | $00(625,609) | |||||
Basic and diluted loss per share: | |||||||||
Prior to cumulative effect of change in accounting principle | $00000(0.47) | $00000(0.91) | $00000(1.09) | $0000 (1.80) | |||||
Cumulative effect of change in accounting principle | - | - | (0.03) | - | |||||
$00000(0.47) | $00000(0.91) | $00000(1.12) | $0000 (1.80) | ||||||
Shares used in computation of basic | |||||||||
and diluted loss per share | 359,752 | 349,886 | 358,595 | 346,680 | |||||
Note: The attached "Financial and Operational Highlights" are an integral part of the press release financial statements. |
AMAZON.COM, INC. | |||||||||
Pro Forma Statements of Operations | |||||||||
(in thousands, except per share data) | |||||||||
(unaudited) | |||||||||
Three Months Ended | |||||||||
June 30, 2001 | June 30, 2000 | ||||||||
Pro Forma | Pro Forma | ||||||||
As Reported | Adjustments | Pro Forma | As Reported | Adjustments | Pro Forma | ||||
Net sales | $0667,625 | - | $0667,625 | $0577,876 | - | $0577,876 | |||
Cost of sales | 487,905 | - | 487,905 | 441,812 | - | 441,812 | |||
Gross profit | 179,720 | - | 179,720 | 136,064 | - | 136,064 | |||
Operating expenses: | |||||||||
Fulfillment | 85,583 | - | 85,583 | 87,597 | - | 87,597 | |||
Marketing | 34,658 | - | 34,658 | 42,216 | - | 42,216 | |||
Technology and content | 64,710 | - | 64,710 | 67,132 | - | 67,132 | |||
General and administrative | 22,778 | - | 22,778 | 28,468 | - | 28,468 | |||
Stock-based compensation | 2,351 | (2,351) | - | 8,166 | (8,166) | - | |||
Amortization of goodwill and other intangibles | 50,830 | (50,830) | - | 80,413 | (80,413) | - | |||
Restructuring-related and other | 58,650 | (58,650) | - | 2,449 | (2,449) | - | |||
Total operating expenses | 319,560 | (111,831) | 207,729 | 316,441 | (91,028) | 225,413 | |||
Loss from operations | (139,840) | 111,831 | (28,009) | (180,377) | 91,028 | (89,349) | |||
Interest income | 6,807 | - | 6,807 | 10,314 | - | 10,314 | |||
Interest expense | (35,148) | - | (35,148) | (33,397) | - | (33,397) | |||
Other expense, net | (1,178) | - | (1,178) | (3,272) | - | (3,272) | |||
Other gains, net | 11,315 | (11,315) | - | - | - | - | |||
Net interest expense and other | (18,204) | (11,315) | (29,519) | (26,355) | - | (26,355) | |||
Loss before equity in losses of equity-method investees | (158,044) | 100,516 | (57,528) | (206,732) | 91,028 | (115,704) | |||
Equity in losses of equity-method investees, net | (10,315) | 10,315 | - | (110,452) | 110,452 | - | |||
Net loss | $ (168,359) | $0110,831 | $0 (57,528) | $ (317,184) | $0201,480 | $ (115,704) | |||
Cash provided by (used in) operating activities | $ 2,485 | $ 2,485 | $ (54,029) | $ (54,029) | |||||
Basic and diluted loss per share | $000 (0.47) | $000(0.16) | $000 (0.91) | $00 ( 0.33) | |||||
Shares used in computation of basic | |||||||||
and diluted loss per share | 359,752 | 359,752 | 349,886 | 349,886 | |||||
Note: The attached "Financial and Operational Highlights" are an integral part of the press release financial statements. | |||||||||
AMAZON.COM, INC. | |||||||||
Pro Forma Statements of Operations | |||||||||
(in thousands, except per share data) | |||||||||
(unaudited) | |||||||||
Six Months Ended | |||||||||
June 30, 2001 | June 30, 2000 | ||||||||
Pro Forma | Pro Forma | ||||||||
As Reported | Adjustments | Pro Forma | As Reported | Adjustments | Pro Forma | ||||
Net sales | $1,367,981 | - | $1,367,981 | $1,151,765 | - | $1,151,765 | |||
Cost of sales | 1,005,664 | - | 1,005,664 | 887,567 | - | 887,567 | |||
Gross profit | 362,317 | - | 362,317 | 264,198 | - | 264,198 | |||
Operating expenses: | |||||||||
Fulfillment | 183,831 | - | 183,831 | 187,060 | - | 187,060 | |||
Marketing | 71,296 | - | 71,296 | 82,864 | - | 82,864 | |||
Technology and content | 134,994 | - | 134,994 | 128,376 | - | 128,376 | |||
General and administrative | 48,806 | - | 48,806 | 54,513 | - | 54,513 | |||
Stock-based compensation | 5,267 | (5,267) | - | 21,818 | (21,818) | - | |||
Amortization of goodwill and other intangibles | 101,661 | (101,661) | - | 163,368 | (163,368) | - | |||
Restructuring-related and other | 172,910 | (172,910) | - | 4,468 | (4,468) | - | |||
Total operating expenses | 718,765 | (279,838) | 438,927 | 642,467 | (189,654) | 452,813 | |||
Loss from operations | (356,448) | 279,838 | (76,610) | (378,269) | 189,654 | (188,615) | |||
Interest income | 16,757 | - | 16,757 | 20,440 | - | 20,440 | |||
Interest expense | (68,896) | - | (68,896) | (61,018) | - | (61,018) | |||
Other expense, net | (5,062) | - | (5,062) | (8,046) | - | (8,046) | |||
Other gains, net | 45,172 | (45,172) | - | - | - | - | |||
Net interest expense and other | (12,029) | (45,172) | (57,201) | (48,624) | - | (48,624) | |||
Loss before equity in losses of equity-method investees | (368,477) | 234,666 | (133,811) | (426,893) | 189,654 | (237,239) | |||
Equity in losses of equity-method investees, net | (23,490) | 23,490 | - | (198,716) | 198,716 | - | |||
Net loss before change in accounting principle | (391,967) | 258,156 | (133,811) | (625,609) | 388,370 | (237,239) | |||
Cumulative effect of change in accounting principle | (10,523) | 10,523 | - | - | - | - | |||
Net loss | $ (402,490) | $0268,679 | $ (133,811) | $ (625,609) | $0388,370 | $0(237,239) | |||
Cash provided by (used in) operating activities | $ (404,499) | $ (404,499) | $ (374,407) | $ (374,407) | |||||
Basic and diluted loss per share: | |||||||||
Prior to cumulative effect of change in accounting principle | $000(1.09) | $000(0.37) | $000(1.80) | $ 000(0.68) | |||||
Cumulative effect of change in accounting principle | (0.03) | - | - | - | |||||
$000(1.12) | $000(0.37) | $000(1.80) | $000(0.68) | ||||||
Shares used in computation of basic | |||||||||
and diluted loss per share | 358,595 | 358,595 | 346,680 | 346,680 | |||||
Note: The attached "Financial and Operational Highlights" are an integral part of the press release financial statements. |
AMAZON.COM, INC. | ||||||||
Segment Information | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Three Months Ended June 30, 2001 | ||||||||
U.S. Retail | ||||||||
Books, | Electronics, | |||||||
Music and DVD/Video | Tools and Kitchen | Total | Services | International | Consolidated | |||
Net sales | $0389,723 | $0110,957 | $0500,680 | $0038,599 | $0128,346 | $0667,625 | ||
Gross profit | 110,844 | 13,159 | 124,003 | 26,352 | 29,365 | 179,720 | ||
Pro forma income (loss) from operations | 38,967 | (41,322) | (2,355) | 4,339 | (29,993) | (28,009) | ||
Other non-cash and restructuring-related operating expenses | (111,831) | |||||||
Net interest expense and other | (18,204) | |||||||
Equity in losses of equity-method investees, net | (10,315) | |||||||
Net loss | $ (168,359) | |||||||
Segment highlights: | ||||||||
Y / Y net sales growth | 1% | 21% | 5% | 41% | 75% | 16% | ||
Y / Y gross profit growth | 28% | 111% | 33% | (1%) | 80% | 32% | ||
Gross margin | 28% | 12% | 25% | 68% | 23% | 27% | ||
Pro forma operating margin | 10% | (37%) | 0% | 11% | (23%) | (4%) | ||
Three Months Ended June 30, 2000 | ||||||||
U.S. Retail | ||||||||
Books, | Electronics, | |||||||
Music and DVD/Video | Tools and Kitchen | Total | Services | International | Consolidated | |||
Net sales | $0385,275 | $0091,755 | $0477,030 | $0027,453 | $0073,393 | $0577,876 | ||
Gross profit | 86,862 | 6,249 | 93,111 | 26,667 | 16,286 | 136,064 | ||
Pro forma income (loss) from operations | 10,056 | (69,077) | (59,021) | 4,175 | (34,503) | (89,349) | ||
Other non-cash and restructuring-related operating expenses | (91,028) | |||||||
Net interest expense and other | (26,355) | |||||||
Equity in losses of equity-method investees, net | (110,452) | |||||||
Net loss | $ (317,184) | |||||||
Segment highlights: | ||||||||
Y / Y net sales growth | 38% | N/A | 70% | N/A | 134% | 84% | ||
Y / Y gross profit growth | 41% | N/A | 56% | N/A | 148% | 101% | ||
Gross margin | 23% | 7% | 20% | 97% | 22% | 24% | ||
Pro forma operating margin | 3% | (75%) | (12%) | 15% | (47%) | (15%) | ||
Six Months Ended June 30, 2001 | ||||||||
U.S. Retail | ||||||||
Books, | Electronics, | |||||||
Music and DVD/Video | Tools and Kitchen | Total | Services | International | Consolidated | |||
Net sales | $0799,309 | $0227,464 | $1,026,773 | $0080,757 | $0260,451 | $1,367,981 | ||
Gross profit | 219,963 | 30,379 | 250,342 | 54,560 | 57,415 | 362,317 | ||
Pro forma income (loss) from operations | 66,592 | (87,155) | (20,563) | 8,515 | (64,562) | (76,610) | ||
Other non-cash and restructuring-related operating expenses | (279,838) | |||||||
Net interest expense and other | (12,029) | |||||||
Equity in losses of equity-method investees, net | (23,490) | |||||||
Cumulative effect of change in accounting principle | (10,523) | |||||||
Net loss | $(402,490) | |||||||
Segment highlights: | ||||||||
Y / Y net sales growth | 2% | 37% | 8% | 61% | 75% | 19% | ||
Y / Y gross profit growth | 30% | 128% | 37% | 12% | 78% | 37% | ||
Gross margin | 28% | 13% | 24% | 68% | 22% | 26% | ||
Pro forma operating margin | 8% | (38%) | (2%) | 11% | (25%) | (6%) | ||
Six Months Ended June 30, 2000 | ||||||||
U.S. Retail | ||||||||
Books, | Electronics, | |||||||
Music and DVD/Video | Tools and Kitchen | Total | Services | International | Consolidated | |||
Net sales | $0786,690 | $0166,351 | $0953,041 | $0050,199 | $0148,525 | $1,151,765 | ||
Gross profit | 169,717 | 13,308 | 183,025 | 48,851 | 32,322 | 264,198 | ||
Pro forma income (loss) from operations | 7,631 | (136,326) | (128,695) | 2,031 | (61,951) | (188,615) | ||
Other non-cash and restructuring-related operating expenses | (189,654) | |||||||
Net interest expense and other | (48,624) | |||||||
Equity in losses of equity-method investees, net | (198,716) | |||||||
Net loss | $(625,609) | |||||||
Segment highlights: | ||||||||
Y / Y net sales growth | 44% | N/A | 74% | N/A | 160% | 89% | ||
Y / Y gross profit growth | 40% | N/A | 53% | N/A | 176% | 100% | ||
Gross margin | 22% | 8% | 19% | 97% | 22% | 23% | ||
Pro forma operating margin | 1% | (82%) | (14%) | 4% | (42%) | (16%) | ||
Supplemental geographical segment information is as follows (in thousands): | ||||||||
Three Months Ended | Three Months Ended | |||||||
June 30, 2001 | June 30, 2000 | |||||||
Net Sales | Pro Forma Income (Loss) from Operations | Net Sales | Pro Forma Income (Loss) from Operations | |||||
U.S. | ||||||||
Books, Music and DVD/Video | $0389,723 | $0038,967 | $0385,275 | $0010,056 | ||||
Electronics, Tools and Kitchen | 110,957 | (41,322) | 91,755 | (69,077) | ||||
00 U.S. Retail | 500,680 | (2,355) | 477,030 | (59,021) | ||||
Services | 38,599 | 4,339 | 27,453 | 4,175 | ||||
00 Total U.S. | 539,279 | 1,984 | 504,483 | (54,846) | ||||
International | 128,346 | (29,993) | 73,393 | (34,503) | ||||
Total Consolidated | $0667,625 | $0 (28,009) | $0577,876 | $0(89,349) | ||||
Six Months Ended | Six Months Ended | |||||||
June 30, 2001 | June 30, 2000 | |||||||
Net Sales | Pro Forma Income (Loss) from Operations | Net Sales | Pro Forma Income (Loss) from Operations | |||||
U.S. | ||||||||
Books, Music and DVD/Video | $0799,309 | $0066,592 | $0786,690 | $0007,631 | ||||
Electronics, Tools and Kitchen | 227,464 | (87,155) | 166,351 | (136,326) | ||||
00 U.S. Retail | 1,026,773 | (20,563) | 953,041 | (128,695) | ||||
Services | 80,757 | 8,515 | 50,199 | 2,031 | ||||
00 Total U.S. | 1,107,530 | (12,048) | 1,003,240 | (126,664) | ||||
International | 260,451 | (64,562) | 148,525 | (61,951) | ||||
Total Consolidated | $1,367,981 | $0(76,610) | $1,151,765 | $ (188,615) | ||||
Note: The attached "Financial and Operational Highlights" are an integral part of the press release financial statements. |
AMAZON.COM, INC. | |||||
Balance Sheets | |||||
(in thousands, except per share data) | |||||
(unaudited) | |||||
June 30, | December 31, | ||||
2001 | 2000 | ||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $00462,949 | $00822,435 | |||
Marketable securities | 146,020 | 278,087 | |||
Inventories | 129,035 | 174,563 | |||
Prepaid expenses and other current assets | 71,353 | 86,044 | |||
Total current assets | 809,357 | 1,361,129 | |||
Fixed assets, net | 292,422 | 366,416 | |||
Goodwill, net | 89,002 | 158,990 | |||
Other intangibles, net | 63,893 | 96,335 | |||
Investments in equity-method investees | 12,223 | 52,073 | |||
Other equity investments | 24,729 | 40,177 | |||
Other assets | 53,410 | 60,049 | |||
Total assets | $01,345,036 | $02,135,169 | |||
LIABILITIES AND STOCKHOLDERS' DEFICIT | |||||
Current liabilities: | |||||
Accounts payable | $257,976 | $485,383 | |||
Accrued expenses and other current liabilities | 241,149 | 272,683 | |||
Unearned revenue | 86,945 | 131,117 | |||
Interest payable | 43,833 | 69,196 | |||
Current portion of long-term debt and other | 18,337 | 16,577 | |||
Total current liabilities | 648,240 | 974,956 | |||
Long-term debt and other | 2,126,727 | 2,127,464 | |||
Commitments and contingencies | |||||
Stockholders' deficit: | |||||
Preferred stock, $0.01 par value: | |||||
Authorized shares -- 500,000 | |||||
Issued and outstanding shares -- none | - | - | |||
Common stock, $0.01 par value: | |||||
Authorized shares -- 5,000,000 | |||||
Issued and outstanding shares -- 362,191 and 357,140 | |||||
shares at June 30, 2001 and December 31, 2000, respectively | 3,622 | 3,571 | |||
Additional paid-in capital | 1,356,216 | 1,338,303 | |||
Deferred stock-based compensation | (10,132) | (13,448) | |||
Accumulated other comprehensive loss | (83,846) | (2,376) | |||
Accumulated deficit | (2,695,791) | (2,293,301) | |||
Total stockholders' deficit | (1,429,931) | (967,251) | |||
Total liabilities and stockholders' deficit | $01,345,036 | $02,135,169 | |||
Note: The attached "Financial and Operational Highlights" are an integral part of the press release financial statements. | |||||
AMAZON.COM, INC. | ||||||||
Statements of Cash Flows | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2001 | 2000 | 2001 | 2000 | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | $0446,944 | $0755,133 | $0822,435 | $0133,309 | ||||
OPERATING ACTIVITIES: | ||||||||
Net loss | (168,359) | (317,184) | (402,490) | (625,609) | ||||
Adjustments to reconcile net loss to net cash provided by (used in) | ||||||||
operating activities: | ||||||||
Depreciation of fixed assets and other amortization | 20,794 | 20,682 | 43,867 | 38,862 | ||||
Stock-based compensation | 2,351 | 8,166 | 5,267 | 21,818 | ||||
Equity in losses of equity-method investees, net | 10,315 | 110,452 | 23,490 | 198,716 | ||||
Amortization of goodwill and other intangibles | 50,830 | 80,413 | 101,661 | 163,368 | ||||
Non-cash restructuring-related and other costs | 6,525 | 2,449 | 68,529 | 4,468 | ||||
Amortization of previously unearned revenue | (31,908) | (20,203) | (65,300) | (38,688) | ||||
Loss (gain) on sale of marketable securities | 187 | 1,648 | 214 | (952) | ||||
Other gains, net | (11,315) | - | (45,172) | - | ||||
Non-cash interest expense and other | 6,713 | 6,208 | 13,285 | 12,089 | ||||
Cumulative effect of change in accounting principle | - | - | 10,523 | - | ||||
Changes in operating assets and liabilities: | ||||||||
Inventories | 25,277 | (103) | 45,100 | 48,286 | ||||
Prepaid expenses and other current assets | (12,203) | 4,104 | 15,131 | 1,037 | ||||
Accounts payable | (1,632) | 30,442 | (231,390) | (176,787) | ||||
Accrued expenses and other current liabilities | 52,271 | (756) | (5,491) | (32,294) | ||||
Unearned revenue | 25,192 | 1,011 | 43,197 | 1,625 | ||||
Interest payable | 27,447 | 18,642 | (24,920) | 9,654 | ||||
Net cash provided by (used in) operating activities | 2,485 | (54,029) | (404,499) | (374,407) | ||||
INVESTING ACTIVITIES: | ||||||||
Sales and maturities of marketable securities | 66,971 | 68,949 | 161,337 | 449,294 | ||||
Purchases of marketable securities | (26,743) | (21,930) | (57,121) | (50,786) | ||||
Purchases of fixed assets, including internal-use software and web-site development | (10,425) | (28,878) | (29,862) | (55,479) | ||||
Investments in equity-method investees and other investments | - | (8,595) | - | (56,082) | ||||
Net cash provided by investing activities | 29,803 | 9,546 | 74,354 | 286,947 | ||||
FINANCING ACTIVITIES: | ||||||||
Proceeds from exercise of stock options | 7,644 | 13,794 | 13,477 | 35,153 | ||||
Proceeds from long-term debt and other | - | 1,625 | 10,000 | 680,999 | ||||
Repayment of long-term debt and other | (4,094) | (5,197) | (8,669) | (9,220) | ||||
Financing costs | - | (227) | - | (16,122) | ||||
Net cash provided by financing activities | 3,550 | 9,995 | 14,808 | 690,810 | ||||
Effect of exchange rate changes on cash and cash equivalents | (19,833) | (268) | (44,149) | (16,282) | ||||
Net increase (decrease) in cash and cash equivalents | 16,005 | (34,756) | (359,486) | 587,068 | ||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $0462,949 | $0720,377 | $0462,949 | $0720,377 | ||||
SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||
Fixed assets acquired under capital leases | $0000 171 | $0000 844 | $0002,469 | $0004,346 | ||||
Fixed assets acquired under financing agreements | - | 293 | - | 4,844 | ||||
Stock issued in connection with business acquisitions | - | 30,000 | - | 30,000 | ||||
Equity securities received for commercial agreements | - | - | 331 | 97,839 | ||||
Cash paid for interest | 1,198 | 7,996 | 87,422 | 43,831 | ||||
Note: The attached "Financial and Operational Highlights" are an integral part of the press release financial statements. |
AMAZON.COM, INC. | ||||||||
Supplemental Financial Information and Business Metrics | ||||||||
(unaudited) | ||||||||
(in millions, except per share data) | ||||||||
2000 | ||||||||
Y / Y | ||||||||
Q2 | Q3 | Q4 | Q1 2001 | Q2 2001 | Growth % | |||
Results of Operations | ||||||||
Net sales | $578 | $638 | $972 | $700 | $668 | 16% | ||
Net sales -- trailing twelve months (TTM) | $2,184 | $2,466 | $2,762 | $2,888 | $2,978 | 36% | ||
Net sales outside the U.S. (including .com export sales) -- % of net sales | 23% | 23% | 21% | 26% | 28% | N/A | ||
Gross profit | $136 | $167 | $224 | $183 | $180 | 32% | ||
Gross margin -- % of net sales | 23.5% | 26.2% | 23.1% | 26.1% | 26.9% | N/A | ||
Fulfillment costs -- % of net sales | 15.2% | 15.1% | 13.5% | 14.0% | 12.8% | N/A | ||
Pro forma operating expenses | $225 | $236 | $284 | $231 | $208 | (8%) | ||
Pro forma operating loss | $(89) | $(68) | $(60) | $(49) | $(28) | (69%) | ||
Pro forma operating loss -- % of net sales | (15.5%) | (10.7%) | (6.2%) | (6.9%) | (4.2%) | N/A | ||
Pro forma net loss | $(116) | $(89) | $(90) | $(76) | $(58) | (50%) | ||
Pro forma net loss per share | $(0.33) | $(0.25) | $(0.25) | $(0.21) | $(0.16) | (52%) | ||
GAAP net loss | $(317) | $(241) | $(545) | $(234) | $(168) | (47%) | ||
GAAP net loss per share | $(0.91) | $(0.68) | $(1.53) | $(0.66) | $(0.47) | (48%) | ||
U.S. books, music and DVD/video (US BMVD) segment: | ||||||||
US BMVD net sales | $385 | $400 | $512 | $410 | $390 | 1% | ||
US BMVD gross profit | $87 | $109 | $139 | $109 | $111 | 28% | ||
US BMVD pro forma operating income -- % of US BMVD net sales | 3% | 6% | 8% | 7% | 10% | N/A | ||
U.S. electronics, tools and kitchen (US ETK) segment: | ||||||||
US ETK net sales | $92 | $98 | $220 | $117 | $111 | 21% | ||
US ETK gross profit | $6 | $9 | $22 | $17 | $13 | 117% | ||
US ETK pro forma operating loss -- % of US ETK net sales | (75%) | (62%) | (33%) | (39%) | (37%) | N/A | ||
Services segment: | ||||||||
Services net sales | $27 | $53 | $96 | $42 | $39 | 44% | ||
Services gross profit | $27 | $31 | $37 | $28 | $26 | (4%) | ||
Services pro forma operating income -- % of services net sales | 15% | 14% | 18% | 10% | 11% | N/A | ||
U.S. Retail and Services combined pro forma operating income (loss) | ||||||||
-- % of U.S. Retail and Services net sales | (11%) | (5%) | (2%) | (2%) | 0% | N/A | ||
International segment: | ||||||||
International net sales | $73 | $88 | $145 | $132 | $128 | 75% | ||
International gross profit | $16 | $19 | $26 | $28 | $29 | 81% | ||
International pro forma operating loss -- % of international net sales | (47%) | (45%) | (30%) | (26%) | (23%) | N/A | ||
AMAZON.COM, INC. | ||||||||
Supplemental Financial Information and Business Metrics | ||||||||
(unaudited) | ||||||||
(in millions, except cost per new customer account, net sales per active customer account, inventory turnover, accounts payable days, and employee data) | ||||||||
2000 | ||||||||
Y / Y | ||||||||
Q2 | Q3 | Q4 | Q1 2001 | Q2 2001 | Growth % | |||
Customer Data | ||||||||
New customer accounts | 2.5 | 2.9 | 4.1 | 3.0 | 2.6 | 4% | ||
Cumulative customer accounts | 22.5 | 25.4 | 29.5 | 32.5 | 35.1 | 56% | ||
Active customer accounts -- TTM | 17.0 | 18.2 | 19.8 | 20.5 | 21.1 | 24% | ||
New customer accounts -- international | 0.6 | 0.9 | 1.1 | 1.0 | 0.9 | 50% | ||
Cumulative customer accounts -- international | 3.0 | 3.9 | 5.0 | 6.0 | 6.9 | 130% | ||
Active customer accounts -- international -- TTM | 2.7 | 3.3 | 4.2 | 4.9 | 5.4 | 100% | ||
Cost per new customer account | $17 | $15 | $13 | $12 | $14 | (18%) | ||
Net sales (excluding catalog sales and inventory sales to Toysrus.com) per active customer account -- TTM | $125 | $130 | $134 | $135 | $136 | 9% | ||
U.S. customers purchasing from non-US BMVD stores | 13% | 14% | 36% | 19% | 21% | N/A | ||
Balance Sheet | ||||||||
Cash and marketable securities | $908 | $900 | $1,101 | $643 | $609 | (33%) | ||
Inventory, net | $172 | $164 | $175 | $156 | $129 | (25%) | ||
Inventory -- % of net sales | 30% | 26% | 18% | 22% | 19% | N/A | ||
Inventory turnover -- annualized | 10.3 | 11.2 | 17.7 | 12.6 | 13.7 | 33% | ||
Fixed assets, net | $344 | $352 | $366 | $304 | $292 | (15%) | ||
Accounts payable days -- ending | 59 | 60 | 60 | 45 | 48 | (19%) | ||
Cash Flows | ||||||||
Cash generated by (used in) operations | $(54) | $(4) | $248 | $(407) | $2 | 104% | ||
Cash used in operations -- TTM | $(418) | $(347) | $(130) | $(217) | $(161) | (61%) | ||
Purchases of fixed assets | $(29) | $(42) | $(37) | $(19) | $(10) | (66%) | ||
Other | ||||||||
Employees (full-time and part-time) | 7,700 | 8,500 | 9,000 | 8,600 | 7,800 | 1% | ||
AMAZON.COM, INC. Financial and Operational Highlights Second Quarter Ended June 30, 2001 (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Results of Operations (all comparisons are with the second quarter of 2000) Net Sales
Gross Profit
Fulfillment
Stock-Based Compensation
Amortization of Goodwill and Other Intangibles
Restructuring-Related and Other
Net Interest Expense and Other
Other Gains
Equity in Losses of Equity-Method Investees
Loss Per Share
Financial Condition Cash and Marketable Securities
Certain Definitions and Other
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