ATLANTA, GA / ACCESSWIRE / August 19, 2019 / uBid Holdings, Inc. (OTCQB:UBID) (the “Company” or “uBid”), a diversified holding company, today announced the company's financial results for the second quarter ended June 30, 2019.
Key Financial Highlights for Q2 2019:
- Revenues increased to $1.1 million
- Gross margin of 38.1%
- Adjusted EBITDA loss of $0.5 million
Key Business Highlights for Q2 2019:
- Uplisted to OTCQB
- Expanded its independent Board of Directors
Management Commentary
“Our second quarter results reflect the continued business of SkyAuction. Since closing the merger several months ago, we have integrated much of the back office and finance operations and are now focused on re-branding efforts, technology upgrades and cross-selling opportunities,” commented, uBid Chief Executive Officer Ketan Thakker. “We believe our enhancements over the next few months will accelerate our revenue growth. Since January 1, 2010, we have auctioned more than 1.3 million merchandise units, have amassed approximately 4 million user registrations through uBID.com and have recorded approximately 32 million visits to our uBID.com marketplace website. Traffic to our websites consisted of approximately 1,735,000 individual visits in 2018. Our strategy includes re-engaging with these users, registrants and individual visitors. We look forward to continuing to communicate our business progress.”
Financial Results for the Three Months Ended June 30, 2019:
Revenue for the three months ended June 30, 2019 was $1.1 million, compared to $0 for the three months ended June 30, 2018. The increase in revenue is the direct result of the acquisition of SkyAuction.
Gross profit for the three months ended June 30, 2019 was $0.4 million, compared to $0 for the three months ended June 30, 2018. The resulting gross margin was 38.1% for the three months ended June 30, 2019.
Selling, general and administrative expenses for the three months ended June 30, 2019 were $1.1 million, an increase of $0.9 million, compared to $0.2 million for the three months ended June 30, 2018. The increase is a result of the acquisition of SkyAuction and its associated increase in business activity.
Amortization of intangible assets for the three months ended June 30, 2019 were $0.6 million, compared to $0 for the three months ended June 30, 2018.
Operating loss for the three months ended June 30, 2019 was $1.3 million, an increase of $1.1 million, compared to $0.2 million for the three months ended June 30, 2018.
Adjusted EBITDA loss for the three months ended June 30, 2019 was $0.5 million, an increase of $0.3 million, compared to $0.2 million for the three months ended June 30, 2018.
Net loss for the three months ended June 30, 2019 was $1.3 million, an increase of $1.1 million, compared to $0.2 million for the three months ended June 30, 2018. The resulting EPS loss for the three months ended June 30, 2019 was ($0.00) per diluted share, compared to ($0.00) per diluted share for the three months ended June 30, 2018.
Financial Results for the Six Months Ended June 30, 2019:
Revenue for the six months ended June 30, 2019 was $2.2 million, compared to $0 for the six months ended June 30, 2018. The increase in revenue is the direct result of the acquisition of SkyAuction.
Gross profit for the six months ended June 30, 2019 was $0.8 million, compared to $0 for the six months ended June 30, 2018. The resulting gross margin was 36.7% for the six months ended June 30, 2019.
Selling, general and administrative expenses for the six months ended June 30, 2019 were $2.1 million, an increase of $1.8 million, compared to $0.3 million for the six months ended June 30, 2018. The increase is a result of the acquisition of SkyAuction and its associated increase in business activity.
Amortization of intangible assets for the six months ended June 30, 2019 were $1.3 million, compared to $0 for the six months ended June 30, 2018.
Operating loss for the six months ended June 30, 2019 was $2.6 million, an increase of $2.3 million, compared to $0.3 million for the six months ended June 30, 2018.
Adjusted EBITDA loss for the six months ended June 30, 2019 was $1.0 million, an increase of $0.7 million, compared to $0.3 million for the six months ended June 30, 2018.
Net loss for the six months ended June 30, 2019 was $2.9 million, an increase of $2.5 million, compared to $0.4 million for the six months ended June 30, 2018. The resulting EPS loss for the six months ended June 30, 2019 was ($0.01) per diluted share, compared to ($0.00) per diluted share for the six months ended June 30, 2018.
About uBid Holdings, Inc.
uBid Holdings, Inc. (OTCQB:UBID) is a diversified holding company whose strategic plan is to acquire interests in young businesses, and provide financing, advice and guidance to assist them in realizing their potential. It continues to identify and evaluate potential acquisitions that its management believes will create shareholder value and a return on investment. For more information, visit: ubidholdings.com
Ubid, Uwin, Usave, it is all about U! It isn’t just a clever tag line it spells out exactly how uBid feels about what it does. Whether it is computers, memorabilia or a trip to Orlando, uBid has a single-minded focus on saving you money by allowing you to determine how much you pay for any item. uBid makes the process easy to understand, engaging and fun. Its customers are its inspiration; they motivate uBid to seek out better, more valuable products, allowing uBid more opportunities to save money by determining what its customers want to pay for it. Its online marketplace provides the perfect outlet for manufacturers, retailers, distributors, and other suppliers to sell all types of products to a base of highly motivated consumers. For more information, visit: http://www.ubid.com.
Use of Non-GAAP Financial Measures
To supplement uBids’s financial statements presented on a GAAP basis, uBid provides Adjusted EBITDA as supplemental measures of its performance.
To provide investors with additional insight and allow for a more comprehensive understanding of the information used by management in its financial and decision-making surrounding pro forma operations, we supplement our consolidated financial statements presented on a basis consistent with U.S. generally accepted accounting principles, or GAAP, with EBITDA, Adjusted EBITDA and Adjusted EPS as non-GAAP financial measures of earnings. EBITDA represents net income before income tax expense (benefit), interest expense, depreciation and amortization. Adjusted EBITDA represents EBITDA plus stock-based compensation and change in fair value of derivative liabilities. Adjusted EPS represents Adjusted EBITDA divided by the number of fully diluted shares outstanding. Our management uses EBITDA, Adjusted EBITDA, and Adjusted EPS as financial measures to evaluate the profitability and efficiency of our business model. We use these non-GAAP financial measures to access the strength of the underlying operations of our business. These adjustments, and the non-GAAP financial measures that are derived from them, provide supplemental information to analyze our operations between periods and over time. We find this especially useful when reviewing pro forma results of operations, which include large non-cash amortizations of intangible assets from acquisitions and stock-based compensation. Investors should consider our non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.
Forward-Looking Statements
Press Releases may include forward-looking statements. In particular, the words “believe,” “may,” “could,” “should,” “expect,” “anticipate,” “estimate,” “project," "propose," "plan," "intend," and similar conditional words and expressions are intended to identify forward-looking statements. Any statements made in this news release about an action, event or development, are forward-looking statements. Such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Accordingly, you should not place undue reliance on these forward-looking statements. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The company takes no obligation to update or correct its own forward-looking statements, except as required by law or those prepared by third parties that are not paid by the company. Statements in this press release that are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although uBid Holdings, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, uBid Holdings, Inc. is unable to give any assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include the company’s ability identify a suitable business model for the corporation.
Media and Investors Contacts:
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SOURCE: uBid Holdings, Inc.