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TheStreet Open House

CafePress Reports Second Quarter 2013 Results

Stocks in this article: PRSS

LOUISVILLE, Ky., July 30, 2013 (GLOBE NEWSWIRE) -- CafePress Inc. (Nasdaq:PRSS), The World's Customization Engine ®, today reported financial results for the three months ended June 30, 2013.

"CafePress demonstrated solid execution during the period highlighted by another quarter of strong contribution from corporate partnerships," said Chief Executive Officer Bob Marino. "We believe we are well positioned for a strong second half of the year with a solid pipeline of new products, partnerships and initiatives that will set the stage for the holiday period. The consolidation of our remote manufacturing operations to Louisville is proceeding on schedule and we expect this investment to result in increased efficiencies and a lower cost structure."

Second Quarter 2013 Financial Highlights

  • Net revenues totaled $52.4 million, compared to $47.1 million in the second quarter of 2012.
  • Adjusted EBITDA was $1.1 million, compared to $4.0 million in the second quarter of 2012.
  • Gross profit margin was 38.7% of net revenues, compared to 41.5% in the second quarter of 2012.
  • GAAP net loss was $(1.7) million (including stock-based compensation, amortization of intangible assets, and acquisition costs), compared to a loss of $(0.3) million in the second quarter of 2012.
  • GAAP net loss per diluted share was $(0.10), compared to a loss of $(0.02) in the second quarter of 2012.
  • Non-GAAP net loss (excluding stock-based compensation, amortization of intangible assets and acquisition costs) was $(0.7) million, compared to non-GAAP net income of $1.7 million in the second quarter of 2012.
  • Non-GAAP net loss per diluted share was $(0.04), compared to non-GAAP net income per diluted share of $0.10 in the second quarter of 2012.
  • At June 30, 2013, cash, cash equivalents, and short-term investments totaled $25.6 million.

Second Quarter 2013 Operating Metrics

  • Orders totaled 1,477,063, a 66% year-over-year increase, including the consolidation of EZ Prints, Inc. into CafePress' business.
  • Average Order Size (AOS) was $34 including the consolidation of EZ Prints, a 33% decrease year-over-year, reflecting the smaller order size of the EZ Prints B2B business. AOS excluding the impact of EZ Prints was $52, flat year-over-year.

Recent Operating Highlights

  • Doubled the number of products in the Facebook Gifts catalog which generated an increase in sales from this channel and expanded awareness of our products.
  • Launched a monthly Share and Win contest resulting in strong gains in social shares on Facebook, Twitter, Pinterest and email.
  • Launched the PressIt button, a new blogger and webmaster innovation to enable monetization of a blog or website that takes original text or graphics and easily turns them into products.
  • Expanded its partnership with Marvel Entertainment, LLC to launch a collection of gear drawn from the Marvel catalog of comic book characters, including classic X-Men™ and Spider-Man® characters at Comic-Con International.
  • Developed a corporate shop with Design Studio By American Greetings® in a licensing deal that also makes more than 500,000 products available in the CafePress marketplace.
  • Launched a new partnership between CafePress Services and Molson Canadian® to bring branded apparel and consumer products to millions of fans via the e-commerce store.
  • Forged a partnership with online retailer Hayneedle Inc. that added hundreds of GreatBigCanvas gallery-wrapped panoramic cityscapes into www.hayneedle.com's online retail experience.
  • Expanded GreatBigCanvas.com's marketplaces internationally to Australia, Canada and the United Kingdom.
  • Surpassed 6,500 free canvas artworks delivered to moms and loved ones of U.S. Military currently stationed overseas through CanvasOnDemand.com's Operation: Hi Mom, Hi Honey.
  • Continued to expand the number of customizable products and base goods to the CafePress Marketplace to include a wider selection of items in the apparel, home and stationery categories. Additionally, engineering work has been completed to launch new categories including footwear and large format electronics cases in the coming quarters.

Business Outlook

"Our outlook for the second half reflects our ongoing view that a greater percentage of CafePress' revenue and profit will occur in the fourth quarter compared with our normal patterns. This is due to seasonality of acquired businesses and the expected launch of partner programs that we anticipate will lead to strong revenue, profit and cash generation in the holiday period," said Monica Johnson, Chief Financial Officer.

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