Drugstore.com Again Targets Positive Cash Flow in 2003 - TheStreet

Drugstore.com Again Targets Positive Cash Flow in 2003

The company also beat analysts' estimates for the latest fourth quarter.
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Drugstore.com

(DSCM)

exceeded analysts' estimates for the fourth quarter and reiterated that it still expects to post positive earnings before interest, taxes, depreciation and amortization in 2003, a year ahead of schedule.

The company, an online drugstore and health information site, said fourth-quarter sales rose 20% from a year ago to $43.5 million. Excluding charges and other items, the company lost 22 cents a share. Analysts were expecting a loss of 28 cents.

Including all items, Drugstore.com lost $182.9 million, or $2.75 a share, compared with a loss of 68 cents in the year-ago period. The company issued basically the same EBITDA guidance earlier this month, saying, "We believe drugstore.com will turn EBITDA positive in 2003 and, in fact, will be EBITDA positive for the fiscal year ending December 2003 when excluding the impacts of noncash marketing charges."

For 2002, Drugstore.com expects sales of $200 million. Last year, the company had a top line of $145.3 million. The company expects sales of around $40 million in the first quarter. Additionally, the company hopes to get 800,000 to 900,000 new customers in 2002, including 185,000 to 190,000 in the first quarter.

Shares of Drugstore.com were recently gaining 10 cents, or 3.1%, to $3.30 in

Nasdaq trading.