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Company Reports 416,000 New Customers
Total Customer Base Grows to 1.7 Million
The Company reported net sales of
"We are pleased with our strong top-line results as we saw an acceleration in new customer additions and order growth from our
First Quarter Financial Highlights
Customer Acquisition: The Company added 415,714 total new customers in the first quarter of 2012, an increase of 152% year-over-year. The Company added 249,530 new customers from its
Active Customer Base: The Company ended the first quarter of 2012 with 1.7 million active customers, up 44% year-over-year.
Number of Shipped Orders: The Company shipped 1.3 million orders in the first quarter of 2012, up 55% year-over-year. The Company shipped 1.1 million orders from its
Average Order Value: Total AOV for the first quarter of 2012 was
Gross Margin: Gross margin was 22.9% in the first quarter of 2012 compared to 24.1% in the first quarter of 2011. Third party products accounted for 77.5% of total product sales in the first quarter of 2012 compared to 74.2% in the first quarter of the prior year. The mix shift was driven by stronger sales of food and non-VMHS products.
Fulfillment Expense: Fulfillment expense on a per order shipped basis remained flat year-over-year, excluding fees related to the Company's freight savings program. In late 2011, the Company implemented a program to reduce freight expense, which resulted in a 14% year-over-year decline in freight cost per package. As a percentage of sales, fulfillment expense was 10.1% for the first quarter of 2012 compared to 7.7% in the first quarter of 2011 primarily due to the lower AOV in the quarter.
Sales & Marketing Expense: The Company significantly expanded its new customer acquisition activities in the quarter, grew its marketing team and began distributing its products on Amazon.com in
Cash and Cash Equivalents: The Company had cash and cash equivalents of
E-Commerce Metrics
A copy of historical e-commerce metrics is available on the Company's website at http://investor.vitacost.com.
Conference Call Information
The Company will host a conference call to discuss these results and will provide additional comments and details at that time. Participating on the call will be
The conference call is scheduled to begin at
A telephonic playback will be available from
About
Forward-Looking Statements
Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements made herein, which include statements regarding the Company's future growth prospects and financial performance, the optimization of the Company's Amazon business, the Company's customer acquisition strategy and expectations regarding the pace of customer growth, and the Company's plans to invest in infrastructure improvements involve known and unknown risks and uncertainties, which may cause the Company's actual results in current or future periods to differ materially from those anticipated or projected herein. Those risks and uncertainties include, among other things, the current global economic downturn or recession; difficulty expanding the Company's
distribution facilities; significant competition in the Company's industry; unfavorable publicity or consumer perception of the Company's products on the Internet; the incurrence of material product liability and product recall costs; inability to defend intellectual property claims; costs of compliance and the Company's failure to comply with government regulations; the Company's failure to keep pace with the demands of customers for new products; disruptions in the Company's manufacturing system, including information technology systems, or losses of manufacturing certifications; or the lack of long-term experience with human consumption of some of the Company's products with innovative ingredients. Those and other risks are more fully described in the Company's filings with the
Discussion of Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in accordance with GAAP,
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| Consolidated Balance Sheets | ||
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| (In thousands, except par value) | ||
| As of | ||
| Assets |
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| Current Assets | ||
| Cash and cash equivalents | $ 40,571 | $ 12,939 |
| Accounts receivable, net | 2,178 | 2,169 |
| Inventory | 36,497 | 34,822 |
| Prepaid expenses | 2,175 | 1,912 |
| Other receivables | 325 | 264 |
| Other assets | 2,339 | 2,344 |
| Total current assets | 84,085 | 54,450 |
| Property and equipment, net | 34,425 | 33,629 |
| Restricted cash | 225 | 225 |
| Deposits | 158 | 125 |
| Goodwill | 2,200 | 2,200 |
| 2,583 | 2,550 | |
| Total assets | $ 121,093 | $ 90,629 |
| Liability and Stockholders' Equity | ||
| Current Liabilities | ||
| Accounts payable | 30,695 | 30,250 |
| Deferred revenue | 3,872 | 4,573 |
| Accrued expenses | 8,311 | 6,425 |
| Total current liabilities | 42,878 | 41,248 |
| Deferred tax liability | 587 | 574 |
| Total liabilities | $ 43,465 | $ 41,822 |
| Commitments and Contingencies | ||
| Stockholders' Equity | ||
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Preferred stock, par value |
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| no shares issued and outstanding | -- | -- |
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Common stock, par value |
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| 33,232 and 27,975 shares issued and outstanding at | ||
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-- | -- |
| Additional paid-in capital | 107,375 | 76,262 |
| Warrants | 4,262 | -- |
| Accumulated deficit | (34,009) | (27,455) |
| Total stockholders' equity | 77,628 | 48,807 |
| Total liabilities and stockholders' equity | $ 121,093 | $ 90,629 |
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| Condensed Consolidated Statement of Operations | ||||||
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| (Unaudited) | ||||||
| Three Months Ended | ||||||
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March 31, 2011 | |||||
| As | Excluding | As | Excluding | |||
| Reported | Adjustments | Adjustments | Reported | Adjustments | Adjustments | |
| Net Sales |
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| Cost of Goods Sold | 64,444 | 64,444 | 48,395 | 48,395 | ||
| Gross Profit | 19,148 | 19,148 | 15,367 | 15,367 | ||
| Fulfillment | 8,414 | 8,414 | 4,941 | 4,941 | ||
| Sales & Marketing | 9,133 | 9,133 | 5,139 | 5,139 | ||
| General & Administrative | 8,174 | 570 | 7,604 | 7,503 | 613 | 6,890 |
| Total Operating Expenses | 25,721 | 25,151 | 17,583 | 16,970 | ||
| Operating Loss | (6,573) | (6,003) | (2,216) | (1,603) | ||
| Other Income | 32 | 32 | 14 | 14 | ||
| Loss Before Income Taxes | (6,541) | (5,971) | (2,202) | (1,589) | ||
| Income Tax Expense | (13) | -- | (13) | (20) | -- | (20) |
| Net Loss |
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| EPS | ||||||
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| Fully Diluted |
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| Basic Shares Outstanding | 30,591 | 30,591 | 27,790 | 27,790 | ||
| Fully Diluted Shares Outstanding | 30,591 | 30,591 | 27,790 | 27,790 | ||
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Three Months Ended |
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| 2012 | 2011 | |||
| Third-party products | $ 61,887 | $ 45,294 | ||
| Proprietary products | 18,014 | 15,750 | ||
| Freight | 3,691 | 2,718 | ||
| Net sales | $ 83,592 | $ 63,762 | ||
Vitacost.com Reconciliation of GAAP Operating Income to Adjusted EBITDA
To supplement the consolidated financial statements presented in accordance with GAAP,
| Adjusted EBITDA Calculation ($ in 000s) | ||
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Three Months Ended |
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| 2012 | 2011 | |
| Reported operating (loss) income |
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| Depreciation and amortization | 1,554 | 1,492 |
| FAS 123R - Stock Option Expense | 492 | 99 |
| Adjusted EBITDA |
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| Adjustments: | ||
| - Severance/recruiting for executives | 273 | -- |
| - Financing fees | 161 | -- |
| - Additional proxy/legal/consulting expenses | 135 | 613 |
| Total | 569 | 613 |
| Adjusted EBITDA |
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CONTACT: Investor Contact:
Vitacost.com
Kathleen Reed
Director of Investor Relations
561.982.4180
ICR, Inc.
John Mills
Senior Managing Director
310.954.1105
Source: News Provided by Acquire Media
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