- Third Quarter Revenues Increase Year-over-Year to $107.3 Million and Net
Loss Decreases to $0.02 per Share - Company Expects to More Than Double Adjusted EBITDA in Fourth Quarter of
2007
BELLEVUE, Wash., Oct. 22 /PRNewswire-FirstCall/ -- drugstore.com, inc. (Nasdaq: DSCM), a leading online provider of health, beauty, vision, and pharmacy products, today announced its financial results for the third quarter ended September 30, 2007. The company reported quarterly net sales of $107.3 million and a net loss of $2.4 million, or $0.02 per share. The company achieved record performance across a number of key financial metrics: gross margins reached 23.2%, adjusted EBITDA was approximately $2.1 million and operating cash flow was $4.4 million. Adjusted EBITDA is a non-GAAP financial measure defined as earnings before interest, taxes, depreciation, and amortization of intangible assets and non-cash marketing expense, adjusted to exclude the impact of stock-based compensation expense.
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"In the seasonally challenging third quarter, we continued to grow our
OTC business, reported strong gross margin improvement and record adjusted
EBITDA," said Dawn Lepore, chief executive officer and chairman of the
board of drugstore.com, inc. "OTC revenues increased by 20% year-over-year
with a number of our key growth initiatives rolling out later in the
quarter. Gross margins increased 170 basis points year-over-year leading to
record adjusted EBITDA of $2.1 million, an improvement of over 57% from the
same period in
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