CoolSavings Reports Fourth Quarter and Year End 2001 Financial Results
CHICAGO, Feb. 22 -- CoolSavings, Inc.
(OTC Bulletin Board: CSAV), a comprehensive e-marketing solution that delivers
targeted advertising and promotional incentives to help offline and online
advertisers identify, acquire and retain active shoppers, today reported
results for the fourth quarter and year ended December 31, 2001.
CoolSavings business highlights in the fourth quarter included:
-- Raised $9.0 million (a total of $21.5 million for the year) from
Landmark Communications during one of the most difficult fundraising
environments;
-- Significant growth in member registrations -- up 53% over the third
quarter from 1.07 million to 1.64 million, a trend that has continued
into 2002. In January, Media Metrix ranked CoolSavings as the #21 most
visited Web property with 15.7 million unique visitors to the site -- a
66% increase over December 2001;
-- As a result of significant increases in marketing spending and an
overall more compelling member experience, revenue producing actions
for the quarter were 11.1 million, a 45% increase over the third
quarter. Overall, CoolSavings had 3.97 million unique members use the
service during the quarter and 17.7 million total member visits;
-- CoolSavings` resurgence as the leader in online direct marketing led to
major customer wins including Hershey`s, The Gap, Kohl`s, Old Navy, and
Georgia Pacific, among others. Additionally the renewal rate among the
Company`s top 50 customers was nearly 80%;
-- In the quarter, CoolSavings introduced Coupon Technology, an ASP
offering to help advertisers market to their own consumers by providing
printable coupons directly through their Web site, e-mail and banners.
Fourth Quarter Highlights:
Net revenues in the fourth quarter were $6.3 million compared to
$11.5 million in the same period of 2000. Gross profit in the fourth quarter
was $5.4 million, or 85% of net revenues, compared to $9.1 million, or 79% of
net revenues in the fourth quarter of 2000. The Company`s total operating
expenses in the quarter were $7.7 million compared to $19.6 million reported
in the same period of 2000, a decrease of 61% over last year. For the fourth
quarter the loss applicable to common shareholders was $3.8 million, or a loss
of $0.10 per share, compared to the loss of $10.4 million, or $0.27 per share,
reported in the same period of 2000.
Year-end Highlights:
Net revenues for the year were $22.2 million, compared to $39.9 million
reported in 2000. Gross profit for 2001 was $16.5 million, or 74% of total
revenues, compared to $32.8 million, or 82% of total revenues, reported in
2000. Total operating expenses for the year were $42.2 million compared to
$72.2 million reported in 2000. The loss applicable to common shareholders for
the full year of 2001 was $30.7 million, or a loss of $0.78 per share,
compared to a loss of $59.1 million, or $1.63 per share in 2000.
At December 31, 2001, the Company had cash and cash equivalents of
$5.1 million and total assets of $18.0 million. Accounts receivable, net of
allowances for doubtful accounts, at the end of the fourth quarter were
$3.6 million. At the close of 2001, CoolSavings` current liabilities totaled
$20.2 million and total liabilities were $20.9 million. Shareholder deficit
at December 31, 2001 was $15.0 million. The Company`s days sales outstanding
(DSO) was 60 for the three months ending December 31, 2001, compared to 81 for
the three months ending September 30, 2001.
Matthew Moog, president and chief executive officer, stated, "We are
pleased with our progress during the fourth quarter not only when considering
the improvements in revenue and expense controls, but also in our ability to
attract $21.5 million in new funding during the year, one of the most
difficult periods for raising capital. Because of the additional capital, we
were able to resume our aggressive online marketing program resulting in 53%
higher registrations in the fourth quarter over the third quarter. This
growth trend has continued into 2002, with nearly 725,000 new registrations in
January alone."
Mr. Moog continued, "CoolSavings not only survived, but emerges as the
leading online direct marketing company in 2002. We enter the new year more
customer-focused with an established infrastructure and the finest solutions
to meet all of our advertisers` online marketing needs."
Business Outlook
The following statements are based on current expectations, are forward-
looking and actual results may differ materially. Accurate forecasting of
quarterly results is especially difficult in the current period where overall
advertising expenditures are falling and visibility is low. CoolSavings
expects results for the quarter ending March 31, 2002 to be consistent with
the fourth quarter of 2001. And while the Company is optimistic about the
remainder of 2002, it is too early to predict.
About CoolSavings
Launched in February 1997, CoolSavings is a comprehensive e-marketing
solution that delivers targeted advertising and promotional incentives to help
offline and online companies identify, acquire and retain active shoppers.
The Company`s extensive e-marketing infrastructure combines multiple incentive
and promotional solutions -- such as targeted coupons and e-mail, category
newsletters, rebates, savings notices, samples, gift certificates and trial
offers -- with sophisticated database technology to enable advertisers to
efficiently build personal relationships with consumers. Today, with more
than 18 million registered members and 16 million registered households,*
CoolSavings is ranked the #1 coupon Web site and the #1 incentive Web site
according to the Jupiter Media Metrix January 2002 report. The Company`s
advertisers include national and local brick-and-mortar retailers, online
merchants, consumer packaged goods manufacturers and leading service
providers.
*More than one person in a household can be registered as a CoolSavings
member. CoolSavings is a registered trademark of CoolSavings, Inc. Other
product and company names herein may be trademarks of their respective owners.
Statements in this press release regarding CoolSavings` business which are
not historical facts are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including statements
regarding the Company`s expectations, beliefs, hopes, intentions or
strategies. Forward-looking statements involve known and unknown risks and
uncertainties, both general and specific to the matters discussed in this
press release. These and other important factors, including those mentioned
in various Securities and Exchange Commission filings made periodically by
CoolSavings, may cause CoolSavings` actual results and performance to differ
materially from the future results and performance expressed in or implied by
such forward-looking statements. For a discussion of some of the risks and
uncertainties which could cause actual results to differ from those contained
in the forward-looking statements, see "Risk Factors" in CoolSavings` Form
10-K for the year ended December 31, 2000, filed with the SEC.
CONTACT:
Melissa Rabin of CoolSavings Inc.
+1-312-224-5153
melissa@coolsavings.com
Stefanie King-Kitzes of KPC Financial Communications
+1-312-224-5013
skitzes@kupperparker.com
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