PFSWEB, INC. P F S W
T H E P R E M I E R E C O M M E R C E O R D E R
F U L F I L L M E N T P L A T F O R M
I n v e s t o r P r e s e n t a t i o n : M a y 2 0 2 3
Important Cautions Regarding Forward Looking Statements
The matters discussed in this presentation, particularly information regarding future revenue, earnings, business plans and goals, consist of forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to the safe harbor created by these sections and involve risks and uncertainties, which could cause actual results to differ materially from the forward-looking information. Such statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are both subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially. The Company undertakes no obligation to publicly update or revise any forward-looking statements. The Company's Annual Report on Form 10-K for the year ended December 31, 2022, and our quarterly reports on Form 10-Q identify certain factors that could cause actual results to differ materially from those projected in any forward-looking statements made and investors are advised to review the periodic reports of the Company and the Risk Factors described therein.
This presentation contains certain non-GAAP measures, including non-GAAP net income (loss) from continuing operations, earnings before interest, income taxes, depreciation and amortization (EBITDA) from continuing operations, adjusted EBITDA from continuing operations and service fee equivalent revenue. Non-GAAP net income (loss) from continuing operations represents net income (loss) from continuing operations calculated in accordance with U.S. GAAP as adjusted for the impact of non-cashstock-based compensation expense, restructuring and other costs. EBITDA from continuing operations represents earnings (or losses) from continuing operations before interest, loss on extinguishment of debt, income taxes, depreciation, and amortization. Adjusted EBITDA from continuing operations further eliminates the effect of stock-based compensation, as well as restructuring and other costs. Service fee equivalent revenue represents service fee revenue excluding LiveArea related activity, plus the gross profit earned on product revenue and does not alter existing revenue recognition. Non-GAAP net income (loss) from continuing operations, EBITDA from continuing operations, adjusted EBITDA from continuing operations and service fee equivalent revenue are used by management, analysts, investors and other interested parties in evaluating our operating performance compared to that of other companies in our industry. The calculation of non-GAAP net income (loss) eliminates the effect of stock-based compensation, restructuring and other costs, and EBITDA from continuing operations and adjusted EBITDA from continuing operations further eliminate the effect of financing, remaining income taxes and the accounting effects of capital spending, which items may vary from different companies for reasons unrelated to overall operating performance. Service fee equivalent (SFE) revenue allows client contracts with similar operational support models but different financial models to be combined as if all contracts were being operated on a service fee revenue basis. The Company has presented non-GAAP financial measures for the PFS Operations business including service fee equivalent (SFE) revenue which include adjustments for certain LiveArea related revenue. The Company believes these non-GAAP measures provide useful information to both management and investors by focusing on certain operational metrics and excluding certain expenses in order to present its core operating performance and results. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The non- GAAP measures included in this presentation have been reconciled to the nearest non-GAAP measures later in this presentation.
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PFSW KEY STATS1
Trading Data @ (5/12/2023)2
$4.01 | $2.14/$7.44 |
Stock Price | 52 week low/high |
115,301 | 22.8M |
Avg. daily Vol. (3 mo.) | Shares outstanding |
74% | 91% |
Public float, est. | Institutional/strategic owner |
holdings | |
$51.8M | $91.4M |
Enterprise Value | Market Cap |
Stock Trend
Revenue Forecast3
($ Millions)
11.2% CAGR
$200.3
$187.75-10%
$176.1
7%
7%
$140.9
25%
2019 | 2020 | 2021 | 2022 | 2023E |
Service Fee and SFE Revenue4
Growth
Key Events
- PFSweb sold LiveArea, its professional services business unit, to Merkle in August 2021 for ~$250M, resulting in ~$150M in cash after transaction related costs, income taxes and payment of previous debt
- Issued special dividend of $4.50/share in Dec 2022 ─ returning approximately $110M of capital from LiveArea to our shareholders
Key Business Update
• | Pivoted strategic focus to operations |
business unit, PFS, to provide a premier | |
eCommerce order fulfillment platform | |
• | Strong market demand driven by PFS' |
strong execution for valued clients, focus | |
on brand-centric solutions, and multi- | |
node fulfillment expansion have driven | |
record new client engagements | |
• | Targeting 2023 PFS annual service fee |
revenue growth of 5-10% with estimated | |
AEBITDA percentage of service fee | |
revenue to be 6% to 8% |
- Source: Capital IQ
- Post special dividend of $4.50 per share paid December 2022
- Company guidance issued and effective May 9, 2023
- Service fee equivalent (SFE) revenue (2019-2022), Adjusted EBITDA and Non-GAAP net income are non-GAAP financial measures. See Appendix for a reconciliation to the most comparable GAAP financial measure
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WHY PFS WINS
____
PFS delivers premium customer experience for brands at scale.
Deep Expertise with Brand-centric Services at Scale
- 25+ years of experience designing and implementing bespoke post-click customer experiences for enterprise and brands looking to grow
- $3.2B+ in GMV shipped in 2022
Complete Global Order Fulfillment Platform
- Brand customized order fulfillment 3PL operations from PFS-hosted facilities
- Complementary support functions to reinforce the entire eCommerce back-end operation
Trusted by iconic brands, branded manufacturers and specialty retailers with on- brand DTC and B2B eCommerce fulfillment operations
- Proven track record and deep expertise in key growth verticals including health & beauty, jewelry and collectables, activewear and prestige CPG categories
- Enabling superior unboxing experiences to align with brand ethos
ECOMMERCE FULFILLMENT SERVICES PLATFORM OFFERING
With its differentiated portfolio of eCommerce operations solutions, PFS is an established leader in scalable, brand-centric order fulfillment. At the core is 3PL services tailored to the high-touch and scalable requirements of the DTC eCommerce market.
3PL Fulfillment
DTC & B2B Channels • Distributed Multi-Node Approach • Branded Pack Out • Inventory Management • Returns and Reverse Logistics • Scalable Global Platform
The offering is strengthened with complementary support functions to reinforce the entire eCommerce back-end operation.
Value Added Services | Transportation MGMT | Order Orchestration | Customer Care | Payment & Fraud | |||||||||
• Gift Wrap & Branded | • | Volume-Based Negotiated & | • | Order Management | • | Phone, Email, Chat & | • | DTC Payment Processing | |||||
Packaging | White Labeled Rates | • | Tax, Address Verification & | Chatbot | • | B2B AR/Invoice Management | |||||||
• | Assembly, Kitting, & | • | Regional Carrier | Reporting | • | Dedicated & Shared Staffing | • | Fraud Management Services | |||||
Bundling | Relationships | • | Merchant of Record Services | • | Work-from Home Agent | ||||||||
• | Product Personalization | • | Brokerage Services | Model |
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Disclaimer
PFSweb Inc. published this content on 22 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 May 2023 15:09:09 UTC.
