Power Sellers Unite

gooddealsbooks · Joined: 08 Mar 2007 Posts: 1048

uBid.com Holdings, Inc. Announces First Quarter 2007 Results
Monday May 14, 2:00 pm ET
Net Loss improves $600,000 or 30% over the year-ago period -- Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and non-cash compensation charge was a loss of $1.1 million compared to a loss of $1.8 million in the first quarter of the prior year

CHICAGO, May 14 /PRNewswire-FirstCall/ -- uBid.com Holdings, Inc. (OTC Bulletin Board: UBHI - News) whose uBid, Inc. subsidiary is one of the leading business-to-consumer and business-to-business online marketplaces in the U.S., today announced results for the first quarter March 31, 2007.

Highlights for the first quarter of 2007 include:
* Net Revenues in uBid's Certified Merchant Program, a key business
metric, were up 50.0% to $1.5 million compared to $1.0 million one year
ago.(1)
* Net loss of $1.4 million compares to a net loss of $2.0 million in first
quarter 2006.
* Adjusted Earnings before for Interest, Taxes, Depreciation, Amortization
(EBITDA) and non-cash compensation improved 39.4% in the first quarter
versus the first quarter of the prior year.(2)
* uBid's Certified Merchant Program grew by 164.8% to 2,513 approved
merchants at March 31, 2007 from 949 merchants at March 31, 2006. This
also represents an increase of 22.6% from December 31, 2006.
* Active auction participants totaled 341,000, while the number of auction
events increased 75.2% to approximately 545,000 from 311,000 in the
first quarter of 2006.
* Customer registrations totaled approximately 64,000 in the first quarter
of 2007 compared to approximately 57,000 in the fourth quarter of 2006.
* Total current assets at March 31, 2007 were $22.3 million, which
includes $14.0 million in cash and cash equivalents.

Commenting on the results for the period, Robert H. Tomlinson Jr., CEO of uBid.com Holdings, Inc. stated, "With 50% revenue growth in our Certified Merchant Program, given that the first quarter is not seasonally our strongest, indicates we are continuing to execute on the strategy, strengthening merchant relationships and increasing our presence in the market." Tomlinson added, "Profitability still remains a core objective which is reflected in our net loss improvement over last year and is in line with our expectations."

Additional highlights include:

April 25, 2007 -- uBid announced that it has repurchased in a private transaction 2,135,550 shares of common stock and 580,937 warrants for the treasury at a combined price of $1.05 for the common stock and for the warrants for an aggregate total of $2,242,328 from a private investor. The repurchase represents 11% of the common stock and warrants currently outstanding. The Company has 18,197,783 outstanding shares of common stock after the repurchase.

Conference Call

uBid.com Holdings, Inc. will host a conference call on May 14, 2007 to discuss first quarter financial results at 5:00 P.M. ET. Hosting the call will be Robert H. Tomlinson Jr., President and Chief Executive Officer, and Miguel A. Martinez Jr., Vice President of Finance.

The conference call can be accessed live over the phone by dialing 1-800- 811-8824, or for international callers 1-913-981-4903. A replay will be available one hour after the call and can be accessed by dialing 1-888-203- 1112 or 1-719-457-0820 for international callers; the conference ID is 4083129. The replay will be available until June 10, 2007. The call will be webcast live from the Company's website at www.ubid.com, under the Investor Relations section.

About uBid.com Holdings, Inc.

uBid.com Holdings, Inc. and subsidiaries (the "Company") operate a leading on-line business- to-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.

The table below is a reconciliation of GMS to the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles.

Reconciliation of GMS to GAAP
(Dollars in Thousands)

Three Months Ended
March 31,

2007 2006

GMS $23,402 $31,167

Cancellations (2,677) (2,910)

Backlog (943) (726)

GAAP Entry (9,864) (6,877)

Returns (311) (566)

Net Sales $9,607 $20,088

GMS Total revenue in auctions closed and Business to Business
transactions

Cancellations Auctions that will not be shipped due to credit and other
issues

Backlog Auctions & orders pending review in credit & approved
orders at warehouse pending shipment

GAAP Entry Entry required to eliminate sales under revenue sharing and
commission arrangements under accounting principles
generally accepted in the United States of America ("GAAP")

Returns Credits issued to customers for return products and
customer satisfaction and related reserves

(2) Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization adjusted for stock based compensation, a non- cash item.

Reconciliation of EBITDA
(Dollars in Thousands)

Three Months Ended
March 31,
2007 2006

Net Loss $(1,415) $(2,003)

Interest Income (124) (146)

Depreciation & Amortization 182 70

EBITDA (1,357) (2,079)

Stock Based Compensation 238 231

Adjusted EBITDA (2) $(1,119) $(1,848)

(3) Net loss adjusted for impact of inventory markdowns, severance and for stock based compensation, a non-cash item.

Reconciliation of Net Loss
(Dollars in Thousands)

Three Months Ended
March 31,
2007 2006

Net Loss $(1,415) $(2,003)

Inventory Markdowns 127 120

Severance 9 -

Stock Based Compensation 238 231

Adjusted Net Loss (3) $(1,041) $(1,652)

Included in this press release is our unaudited Consolidated Balance Sheet and Consolidated Statement of Operations for the Period ended March 31, 2007.

uBid.com Holdings, Inc. and Subsidiaries
Consolidated Condensed Balance Sheets
(Dollars in Thousands, except par value data)
(Unaudited)

March 31, 2007 December 31, 2006

Assets
Current Assets
Cash and cash equivalents $13,779 $14,785
Restricted investments 216 214
Accounts receivable, less allowance
for doubtful accounts of $215 and
$60, respectively 1,223 1,810
Merchandise inventories 6,127 4,054
Prepaid expenses and other current
assets 910 1,189

Total Current Assets 22,255 22,052

Property and Equipment, net 859 924
Purchased Intangible Assets 512 602

Total Assets $23,626 $23,578
Liabilities and Shareholders' Equity
Current Liabilities
Flooring facility $501 $152
Accounts payable 3,371 2,239
Accrued expenses:
Advertising 462 428
Other 734 1,024

Total Current Liabilities 5,068 3,843

Shareholders' Equity
Common stock, $.001 par value
(200,000,000 shares authorized;
20,333,333 issued and outstanding) 20 20
Stock warrants 8,086 8,086
Additional paid-in-capital 37,086 36,848
Accumulated deficit (26,634) (25,219)

Total Shareholders' Equity 18,558 19,735

Total Liabilities and Shareholders' Equity $23,626 $23,578

uBid.com Holdings, Inc. and Subsidiaries
Consolidated Condensed Statements of Operations
(Dollars in Thousands, except for Share and per share data)
(Unaudited)

Three Months Ended March 31,

2007 2006

Net Revenues $9,607 $20,088
Cost of Revenues 7,055 17,178

Gross Profit 2,552 2,910

Operating Expenses
General and administrative 3,022 3,534
Sales and marketing 1,069 1,525
Total operating expenses 4,091 5,059

Loss From Operations (1,539) (2,149)
Interest Expense (112) (47)
Interest Income 176 193
Other Income (Expense), net 60 0

Net Loss $(1,415) $(2,003)

Net Loss per share - Basic and Diluted $(0.07) $(0.10)
Weighted Average Shares -
Basic and Diluted 20,333,333 19,955,536

SEC Filings and Forward-Looking Statements

Additional information about uBid.com Holdings, Inc. is available in the company's annual report on Form 10- K as amended, filed with the Securities and Exchange Commission. Certain statements made in this release are forward- looking statements. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business of uBid.com Holdings, Inc. and the industries and markets in which uBid.com Holdings, Inc. operates. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by these forward-looking statements. Factors which may affect the forward looking statement identified above and uBid.com Holdings, Inc.'s business, financial condition and operating results generally include the effects of adverse changes in the economy, reductions in consumer spending, declines in the financial markets and the industries in which uBid.com Holdings, Inc. and its partners operate, adverse changes affecting the Internet and e-commerce, the ability of uBid.com Holdings, Inc. to develop and maintain relationships with strategic partners and suppliers and the timing of its establishment or extension of its relationships with strategic partners, the ability of uBid.com Holdings, Inc. to timely and successfully develop, maintain and protect its technology and product and service offerings and execute operationally, the ability of uBid.com Holdings, Inc. to attract and retain qualified personnel, the ability of uBid.com Holdings, Inc. to successfully integrate its acquisitions of other businesses, if any, and the performance of acquired businesses. uBid.com Holdings, Inc. expressly disclaims any intent or obligation to update these forward-looking statements, except as otherwise specifically stated by uBid.com Holdings, Inc.

--------------------------------------------------------------------------------
Source: uBid.com Holdings, Inc.

Binarywebs · Joined: 12 Sep 2006 Posts: 1399

Holy Bajeebus thats a nice loss. :D

We'll see whos up on the chopping block for that.

CuFF

Yet, they're sitting on what could be a viable auction site for Sellers looking for an alternative to ebay. Last I checked they were not even running a BV banner at uBid, and that would cost them nothing.

It will be a shame if they unplug BV without a word deleting the auctions of Sellers who've waited endlessly to hear something from management. Considering the fact that they've not posted for 9 months until recently, once to admonish posters in the Wanted forum and once to proclaim that BV is successful, it's very possible they'll do just that.

gooddealsbooks · Joined: 08 Mar 2007 Posts: 1048

front page news

freebirdcomputers · Joined: 20 Feb 2005 Posts: 7 Location: East Central Iowa

I thought the Petters Group knew what they were doing with uBid.

:confused:

GIGI · Joined: 23 May 2007 Posts: 30

Correction:
Bidville did not lose $600,00 nor did Ubid! read what it says below carefully! It's actually an improvement!

Net Loss improves $600,000 or 30% over the year-ago period -- Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and non-cash compensation charge was a loss of $1.1 million compared to a loss of $1.8 million in the first quarter of the prior year.

Ubid owns Bidville.

However, Bidville's financial statements are keep seperate from Ubid's.

:D

CrystalStar · Joined: 06 Mar 2005 Posts: 3571

An improvement.... only in the sense that it wasn't as bad as the previous year. But a loss of this magnitude is still a bad indication that they still haven't figured out what to do with the sites!

GIGI · Joined: 23 May 2007 Posts: 30

An improvement.... only in the sense that it wasn't as bad as the previous year. But a loss of this magnitude is still a bad indication that they still haven't figured out what to do with the sites!

Yes, maybe...but maybe not. We will just have to wait and see.

The way the situation is with Ubid reminds me of Amazon.

Years ago, Amazon built a warehouse here in KY. I worked there.
They held a meeting. In that meeting we were informed that they had expanded their operations, and that over the past XX amount of time they were operating at a loss. It was a huge $$ amount, you could see jaws dropping at that meeting, we were being paid a hansome hourly rate, so we never thought that they would be operating at a loss.

Maybe Ubid is using the same plans, or similiar plans. I really would'nt know. I just wish them the best.

:D

nopaypal · Joined: 23 Feb 2006 Posts: 2008

typically it takes a startup 5 years to begin operating in the black. which is why most of em dont make it.
:cry:

elgato · Joined: 24 Feb 2005 Posts: 17227 Location: Texas

Merged topics so everyone could understand the second OP.

The correction is a whopper IMHO!

Thanks for the update!

GIGI · Joined: 23 May 2007 Posts: 30

Elgato,
I'm sure you meant well, but it did'nt help by merging my post with this one.

The OP of this post still believes that ubid/bidville lost $600,000. Even after posting the Correction:

He/She posted to Cuff's thread here still stating that Ubid/Bidville lost money.

People only read the Title it looks like. So merging my post did'nt help I don't believe.

I'm sure you meant well. Thanks.

gooddealsbooks · Joined: 08 Mar 2007 Posts: 1048

Bidville/ubid still lost 600,000. They spent more than they made. The stock is going down so yes it's good they did not lose as much money but yes they truly did lose money.

I hope they keep bidville seperate but I actually think it's together and here is why

The company is a holdng company which means it's a combination of all it's assets. So yes the company is in a bit of trouble

Don't get me wrong I am not interested in seeing UBID or bidville go out of business because actually right now that is one of ebay's largest problems.

If the stock goes down to much I smell a takeover from ebay perhaps

gooddealsbooks · Joined: 08 Mar 2007 Posts: 1048

well it's true I read te artical wrong bidville/ubid did not loose 600,000 dollars they actually lost 1.4 million and that is why the stock is plummeting

I smell takeover

GIGI · Joined: 23 May 2007 Posts: 30

Here is what I got from Auctionbytes...just a snippit.

uBid.com Holdings Inc., which operates the uBid.com online-auction marketplace, announced results for the first quarter ending March 31, 2007. The company said it experienced a net loss of $1.4 million compared to a net loss of $2.0 million in first quarter 2006. uBid CEO Robert H. Tomlinson Jr. said, "Profitability still remains a core objective which is reflected in our net loss improvement over last year and is in line with our expectations." The company also announced it appointed Casey Gunnell to its Board of Directors and Chairman of the Audit Committee.

Tomlinson said during a conference call Monday afternoon that in addition to continuing to grow the uBid Certified Merchant program, the company is working to expand its product categories. "In fact, there are several new categories we'd like to launch in the near term while expanding our depth in existing product lines," he said.

The company said some highlights for the first quarter of 2007 were:

Net Revenues in uBid's Certified Merchant Program, a key business metric, were up 50.0% to $1.5 million compared to $1.0 million one year ago.
uBid's Certified Merchant Program grew by 164.8% to 2,513 approved merchants at March 31, 2007 from 949 merchants at March 31, 2006. This also represents an increase of 22.6% from December 31, 2006.
Active auction participants totaled 341,000, while the number of auction events increased 75.2% to approximately 545,000 from 311,000 in the first quarter of 2006.
Customer registrations totaled approximately 64,000 in the first quarter of 2007 compared to approximately 57,000 in the fourth quarter of 2006.

Please notice the bold type. They have a plan, it seems to be working, slowly yes, very slowly...but surely dear watson, surely.

I don't smell take over...

I smell Progress.

:D

gooddealsbooks · Joined: 08 Mar 2007 Posts: 1048

well I 100% agree with you only losing 1.4 million compared to the 2.0 million they could have lost is a big improvement of a saving of 600,000 thousand dollars

But also we must keep an eye out 1.4 million is no chump change

once again all readers I'm not bashing ubid/bidville I'm just saying what happened.
I'm in total support of ubid/bidville