Earnings Call Excerpt
The Parent Company (KIDS)
Wall Street Analyst Forum
March 27, 2008 9:10 am ET
Executives
Barry Hollingsworth - VP and CFO
Helen Baud - Wall Street Analyst Forum
Presentation
Helen Baud
Good morning. My name is [Helen Baud] and I am the host in this room for the day. The first company we have presenting is The Parent Company. The Parent Company, formerly BabyUniverse Incorporated, is a leading commerce, content and new media company for growing family. The Parent Company provides comprehensive e-commerce and e-content resources to help families plan, play and grow. And presenting this morning, is Barry Hollingsworth, the Chief Financial Officer.
Barry Hollingsworth
Thank you and good morning everyone. We are the Parent Company and we've got an exciting story to tell today. Before we get started, I have to show you our Safe Harbor statements. Certain matters in this presentation may be forward-looking. So please refer to the risk factors published in our 10-Q in December.
The Parent Company was formed by the merger of eToys Direct, a private company and BabyUniverse, a public company in October of 2007. We've adopted the fiscal year end of eToys Direct, which is the closest Saturday to January 31st, and our fourth quarter ended on February 2nd. We are going to be reporting Q4 on April 10th.
This merger for accounting purposes was structured such that the historical results included the business of eToys Direct, and the results of BabyUniverse side of the business are included only from the merger date and going forward. We are traded under the NASDAQ ticker KIDS. And we chose that ticker because it represents what is important to parents; their kids. Our consensus top line estimates for 2008 is $162 million, with EBITDA estimates at $3 million for the year.
We have 24.2 million shares of common stock outstanding. We've got about 0.5 million options outstanding at the moment, and we have no preferred shares. We have over 50 million visits per year to our sites.
We merged the two companies to extend the audience. We wanted to grab that customer before childhood in the pregnancy space, with some of our content sites, such as e-pregnancy.com. We've got the opportunity to extend the customer's lifetime value with adjacent categories. We'll leverage some of our existing infrastructure and improve gross margin along the way via best practices, and we've eliminated over $6 million in expenses by looking at redundant costs between the two companies.
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