USell.com Reports Consolidated Earnings Results for the First Quarter Ended March 31, 2016
May 16, 2016 at 04:08 pm
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uSell.com reported consolidated earnings results for the first quarter ended March 31, 2016. Revenues increased by $20.3 million, or 948%, from $2.1 million for the three months ended March 31, 2015, to $22.5 million for the three months ended March 31, 2016. Loss from operations decreased $0.5 million, or 31%, from $1.5 million for the three months ended March 31, 2015, to $1.0 million for the three months ended March 31, 2016. Adjusted EBITDA, a non-GAAP financial measure, improved from a loss of $1.1 million for the three months ended March 31, 2015, to $0.4 million for the three months ended March 31, 2016. This increase had two main driving factors: (1) an increasing percentage of volume from its legacy uSell.com business being recorded on a gross versus net basis since the launch of its Managed by uSell service in 2014, and (2) the acquisition of We Sell, which records all of its revenue on a gross basis. Operating loss for the three months ended March 31, 2016 was $1.0 million, an improvement of $0.5 million from a $1.5 million operating loss for the three months ended March 31, 2015. Net loss for the three months ended March 31, 2016 was $2.1 million, an increase of $0.6 million from a $1.5 million net loss for the three months ended March 31, 2015. The resulting EPS improved to $0.11 as compared to $0.20 for the prior year ago quarter, due to the increase in shares outstanding from 7.5 million to 19.8 million. Net cash and cash equivalents used in operating activities was $2,107,991 against $1,114,185 a year ago.
PhoneX Holdings, Inc. is engaged in building the cloud-based software-as-a service solution for the wholesale exchange of pre-owned mobile devices. The Company works with mobile carriers and mobile handset distributors to facilitate global commerce related to pre-owned mobile devices. The Company operates through two models: Proprietary Trading Model and Platform Partnership Model. Its Proprietary Trading Model, through which it purchases devices utilizing its own balance sheet via its subsidiary We Sell Cellular LLC. Its Platform Partnership Model, through which it enables its partners to license its software via its subsidiary PhoneX, Inc. Through these licensing agreements, the Company enables mobile carriers and mobile handset distributors to increase selling prices and selling velocity by using a specialized, automated platform where wholesale buyers of mobile devices can purchase inventory on demand.