NEW YORK, November 20, 2013 /PRNewswire/ --
Third Quarter
Revenues reach $1.6 Million, an
Increase of 124 Percent
7thConsecutive
Quarter of Sequential Revenue Growth
$24 Million Value of Consumer Electronic Devices
Processed Since Launch
uSell.com (OTCQB: USEL), the first US-based reCommerce
marketplace that instantly finds cash offers for used smartphones
and electronics, announced today record results for the third
quarter ended September 30, 2013.
Highlights:
- Revenues of $1,636,386 in the
third quarter of 2013, up 124% from revenues of $729,297 in the third quarter of 2012
- 7th consecutive quarter of sequential revenue
growth
- Gross margins above 90% for the 7th consecutive
quarter
- Operating loss of $843,100 in the
third quarter of 2013, a $1,605,887
improvement from operating loss of $2,448,987 in the third quarter of 2012
- Cash operating loss of $225,000
in the third quarter of 2013, a $475,000 improvement from cash operating loss of
$700,000 in the third quarter
2012
- Continued improved efficiency of marketing spend
- Unique visitors reaching a record 1,000,000 monthly in
September
- $24 million value of consumer
electronic devices processed to-date since launch in January 2012
Financial Results:
Third Quarter 2013 Compared to Third
Quarter 2012
For the third quarter of 2013, revenues reached a record
$1.6 million, a 124 percent increase
from $0.7 million in the third
quarter of 2012. The increase in revenue is primarily due to
increased marketing spend, improved marketing efficiency and an
increase in trading partners. Gross profit margin of 94 percent was
realized in the third quarter, the 7th consecutive
quarter of 90%+ gross margins. Operating loss for the third quarter
improved by $1.6 million, from
$2.4mm in the third quarter of 2012
to $0.8 million in the third quarter
of 2013. The decrease in operating loss was primarily due to
improved marketing efficiency and increased revenue. Of note, the
cash operating loss for the third quarter improved by $0.5 million, from $0.7
million in the third quarter of 2012 to $0.2 million in the third quarter of 2013. The
Company's net loss for the third quarter increased by $0.5 million, from a loss of $0.4 million in the third quarter of 2012 to a
loss of $1.0 million in the third
quarter of 2013. The resulting EPS is ($0.01), as compared to ($0.01) a year earlier. Net loss and EPS results
from the third quarter of 2012 include a positive change in fair
value of derivative liability relating to conversion feature of
Series A preferred stock of $2.0
million.
Year-to-Date 2013 Compared to
Year-to-Date 2012
For the first nine months of 2013 ended September 30, 2013, revenues were $3.9 million, a 150 percent increase from
$1.6 million in the first nine months
of 2012. Gross profit margin of 93 percent was realized in the
first nine months ended September 30,
2013, similar to a 91 percent gross profit margin a year
earlier. Operating loss for the first nine months of 2013 improved
by $1.6 million, from $5.2mm in the first nine months of 2012 to
$3.6 million in the first nine months
of 2013. Of note, the cash operating loss for the first nine
months of 2013 improved by $1.1
million, from $2.5 million in
the first nine months of 2012 to $1.4
million in the first nine months of 2013. Net loss for the
first nine months improved by $4.0
million, from a loss of $7.7
million in the first nine months of 2012 to a loss of
$3.6 million in the first nine months
of 2013. The resulting EPS is ($0.06), as compared to ($0.38) a year earlier. Net loss and EPS results
from the first nine months of 2012 include a negative change in
fair value of derivative liability relating to conversion feature
of Series A preferred stock of $2.3
million.
Other Business Updates:
The uSell.com reCommerce marketplace that instantly finds cash
offers for used products recently rebranded its website and
launched a new TV spot. The rebranded website
(http://www.uSell.com) focuses on phones, particularly iPhones,
which are the current key drivers from visitors for trade-in. A new
creative production for TV media marketing launched in early
November. The refreshed TV spots are more appealing and
targeted.
"These new branding initiatives come at a very opportune time,
stated Chief Executive Officer Daniel
Brauser. We continue to be excited about our consumer
electronics focus as industry drivers and consumer awareness and
education are expected to spur continued growth. The market
opportunity in cell phones and consumer electronics remains very
much untapped. Key drivers over the next few quarters and years
should drive awareness and greatly increase the market opportunity
for uSell.com. Recently, Verizon Wireless and T-Mobile launched new
programs encouraging wireless customers to upgrade their devices
more frequent, no longer being held to two-year contracts in order
to get discounted new device pricing."
Recently, uSell.com appointed Steven
Rubin and Gerald Unterman as
strategic advisors of the Company.
Mr. Rubin has served as Executive Vice President -
Administration of OPKO Health, Inc. (OPKO) since May 2007 and as a director of OPKO Health, Inc.
since February 2007. Mr. Rubin served
as the Senior Vice President, General Counsel and Secretary of IVAX
from August 2001 until September 2006. Mr. Rubin currently serves on the
Board of Directors of Safestitch Medical, Inc. (SFES), a medical
device company, Tiger Media, Inc., (IDI), a multi-platform
billboard and advertising company in China, PROLOR (PBTH), a development stage
biopharmaceutical company, Kidville, Inc. (KVIL), which operates
large, upscale facilities, catering to newborns through
five-year-old children and their families and offers a wide range
of developmental classes for newborns to 5 year olds, Non-Invasive
Monitoring Systems, Inc. (NIMU), a medical device company, Tiger X
Medical, Inc. (CDOM), previously an early-stage orthopedic medical
device company specializing in designing, developing and marketing
reconstructive joint devices and spinal surgical devices, Castle
Brands, Inc. (ROX), a developer and marketer of premium brand
spirits, and Neovasc, Inc. (NVC), a company developing and
marketing medical specialty vascular devices. Mr. Rubin brings
extensive leadership, business, and legal experience, as well as
tremendous knowledge of our business to the Board. He has advised
numerous companies in several aspects of business, regulatory,
transactional, and legal affairs for more than 25 years. His
experience as a practicing lawyer, general counsel, and board
member to multiple public companies, that has given him broad
understanding and expertise, particularly relating to strategic
planning and acquisitions.
Mr. Unterman, a pioneer investor in the high-yield and
convertible bond markets, started his investment career at Standard
& Poor's Corporation in 1972 where he progressed to the
position of Senior Vice President of the Corporate Industrial Bond
Department. In 1981, Mr. Unterman left S&P to join First
Investors Corporation, managing one of the first high-yield bond
mutual funds in the country, and then went on to form Gem Capital
Management in 1990, a privately held investment management firm,
specializing in the management of high-yield and convertible bond,
and special-situation equity portfolios for corporations,
municipalities, and high net worth individuals. In 2008, Mr.
Unterman sold Gem Capital to another money management firm and
stayed on to help with the transition until 2010. Today, Mr.
Unterman continues to manage portfolios for himself and family
members using the same investment strategies that he utilized
during his over 30 years of active investment management
career.
About uSell.com, Inc.
uSell.com is a reCommerce marketplace that helps individuals
turn unused items into cash. uSell ensures that customers get
the highest payouts with the least amount of hassle by facilitating
risk-free transactions with professional buyers. For uSell's
buyers, uSell offers a scalable technology, marketing, logistics,
and analytics solution that provides a high volume of inventory at
a low acquisition cost. Visit http://www.uSell.com
Forward-Looking Statements
This press release includes forward-looking statements including
statements regarding the market opportunity for our platform. The
words "believe," "may," "estimate," "continue," "anticipate,"
"intend," "should," "plan," "could," "target," "potential," "is
likely," "will," "expect" and similar expressions, as they relate
to us, are intended to identify forward-looking statements.
We have based these forward-looking statements largely on our
current expectations and projections about future events and
financial trends that we believe may affect our financial
condition, results of operations, business strategy and financial
needs. The results anticipated by any or all of these
forward-looking statements might not occur. Important factors that
could cause actual results to differ from those in the
forward-looking statements include providing consumers with a
sufficient number of partners that furnish offers on our site,
competition from large retail stores and wireless operators, the
effectiveness of our advertising campaigns, success of the new
offerings on our site, and the willingness of people to use us to
help them monetize and recycle their small consumer electronic
items and other new offering. Further information on our risk
factors is contained in our filings with the SEC, including our
Annual Report on Form 10-K. We undertake no obligation to publicly
update or revise any forward-looking statements, whether as the
result of new information, future events or otherwise.
Contact Information
Hayden IR
hart@haydenir.com
+1-917-658-7878
SOURCE uSell.com