Asset Recovery Leader Releases Financial Results For Q2 2008 CHICAGO, Aug. 14
CHICAGO, Aug. 14 /PRNewswire-FirstCall/ -- Enable Holdings, Inc.
(OTC Bulletin Board: ENAB), the leading asset recovery solutions company for
the world's most trusted brands, today announced the release of its 10-Q
Quarterly Report for the second quarter of 2008. In the first two quarters of
2008, Enable Holdings, Inc. and subsidiaries (the Company) invested in a
complete transition to a new business model that has transformed the Company
from a seller marketplace business model to a comprehensive asset recovery
solutions holding company business model with 5 sales channels.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080814/AQTH536LOGO)
The Company expects all aspects of the new business model will be fully
implemented by the end of 2008 or early 2009 and the results of restructuring,
which are beginning to be seen, will start having a more profound impact on
the Company and its results of operations.
During Q2 of 2008, the Company's non-GAAP total Gross Merchandise Sales
from uBid.com and other sources increased 4% over Q1, and total bidders on
uBid.com increased to 198,000 from 181,000 Q2 over Q1. Auction success rate on
uBid.com increased to 30% from 13% while dramatically reducing the number of
total auctions held from 455,000 to 181,000.
Reconciliation of GMS to GAAP
(Dollars in thousands)
Three Months Ended
June 30, 2008 March 30, 2008
Direct $5,523 $4,027
UCM $11,594$12,645
Business to Business $2,537 $2,213
Total GMS $19,654$18,885
Cancellations-3,240 -3,423
Backlog-443 0
GAAP Entry6,913 6,874
Returns-327 -337
Net Sales$8,426 $7,141
GMS Total revenue in auctions closed and Business to Business
transactions
Cancellations Auctions that will not be shipped due to credit and other
issues
Backlog Auctions & orders pending review in credit & approved
orders at warehouse pending shipment
GAAP Entry Entry required to eliminate sales under revenue sharing
and commission arrangements under accounting principles
generally accepted in the United States of America
("GAAP")
Returns Credits issued to customers for return products and
customer satisfaction and related reserves
Over the same period, the Company's non-GAAP principles gross sales
through the uBid.com website and other sources totaled $19,654,000. Based on
GAAP principals, the Company generated $8,426,000 in net sales, and total
losses for the quarter equaled $2,977,000.
While the previous administration may have been focused on achieving
better short-term results, Enable Holdings, Inc. Chief Executive Officer Jeff
Hoffman and his administration are focused on achieving a long-term leadership
position in the market, and the Company's initiatives will reflect that going
forward.
"Our previous business model did not allow us to win in the market," said
Hoffman. "Through the restructuring process and the introduction of our new
business model, we are re-building our company and giving ourselves a chance
to win in a fairly untapped market as a comprehensive excess inventory
solutions provider. It's a very exciting time for us, and we're ready to start
winning."
For more information please visit http://www.enableholdings.com.
About Enable Holdings, Inc.
Enable Holdings, Inc. is the world's leading excess inventory solutions
company that links brand name sellers with customers around the globe. Enable
Holdings, Inc. does this through its multi-channel asset-recovery solution
that includes an online auction platform located at http://www.ubid.com,
upcoming fixed-price commerce solution RedTag.com, offline excess inventory
solution RedTag Live!, online business-to-business solution Dibu Trading
Company, and upcoming private auction software company Commerce Innovations.
Brand name sellers are able to reduce excess inventory more efficiently and
profitably than ever before. And however they choose to buy, shoppers now have
an inside connection to the world's most trusted brands at prices far below
retail. Enable Holdings, Inc. boasts more than 10 years experience in online
commerce and is headquartered in Chicago, Illinois.
SEC Filings and Forward-Looking Statements
Additional information about Enable Holdings, Inc. is in the company's
annual report on Form 10-K, filed with the Securities and Exchange Commission.
Certain statements made in this release are "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, including
statements using terminology such as "anticipate," "believe," "estimate,"
"expect," "intend," "may," "could," "possible," "plan," "project," "should,"
"will," "forecast," and similar words or expressions. Enable Holdings, Inc.
intends that all forward-looking statements be subject to the safe harbor
provisions of the Private Securities Litigation Reform Act. Forward-looking
statements are based on the then-current expectations, beliefs, assumptions,
estimates and forecasts about the business of Enable Holdings, Inc. and the
industries and markets in which Enable Holdings, Inc. operates. These
statements are not guarantees of future performance and involve risks,
uncertainties and assumptions, which are difficult to predict. Therefore,
actual outcomes and results may differ materially from what is expressed or
implied by these forward-looking statements. Factors which may affect the
forward looking statement identified above and Enable Holdings, Inc.'s
business, financial condition and operating results generally include the
effects of adverse changes in the economy, reductions in consumer spending,
declines in the financial markets and the industries in which Enable Holdings,
Inc. and its partners operate, adverse changes affecting the Internet and e-
commerce, the ability of Enable Holdings, Inc. to develop and maintain
relationships with strategic partners and suppliers and the timing of its
establishment or extension of its relationships with strategic partners, the
ability of Enable Holdings, Inc. to timely and successfully develop, maintain
and protect its technology and product and service offerings and execute
operationally, the ability of Enable Holdings, Inc. to attract and retain
qualified personnel, the ability of Enable Holdings, Inc. to successfully
integrate its acquisitions of other businesses, if any, and the performance of
acquired businesses. Enable Holdings, Inc. expressly disclaims any intent or
obligation to update these forward-looking statements, except as otherwise
specifically stated by Enable Holdings, Inc.
SOURCE Enable Holdings, Inc.
