JACKSONVILLE, Fla, April 4, 2005. a21, Inc. ("a21") (OTCBB: ATWO), a leading online digital content marketplace for creative professionals, today reported financial results for the fourth quarter and fiscal year ended December 31, 2004.
Gross revenue for the fourth quarter of 2004 was $2.1 million, compared to $0 for the same period in 2003. The increase in gross revenue reflects a21's acquisition of SuperStock, Inc. in February 2004. Prior to the acquisition, SuperStock generated gross revenue of $2.2 million for the fourth quarter of 2003. Net loss for the fourth quarter of 2004 was $377,000, or $0.01 per share, versus net loss of $254,000, or $0.02 per share, for the same period in 2003. Earnings per share for the fourth quarter of 2004 is calculated on the basis of 38.1 million weighted average shares outstanding, compared to 16.7 million weighted average shares outstanding for the same period in 2003.
Gross revenue for the year ended December 31, 2004 was $7.5 million, compared to $0 for the same period in 2003. The increase in gross revenue reflects ten months of sales following a21's acquisition of SuperStock. Had the acquisition of SuperStock occurred at the beginning of fiscal 2004, gross revenue for the year ended December 31, 2004 would have been $9.0 million. Net loss for the year ended December 31, 2004 was $2.1 million, or $0.06 per share, versus net loss of $1.3 million, or $0.08 per share, for the same period in 2003. Earnings per share for the year ended December 31, 2004 is calculated on the basis of 35.0 million weighted average shares outstanding, compared to 16.7 million weighted average shares outstanding for the same period in 2003.
"In our first year of operating SuperStock, we have repositioned the company as a viable and valuable alternative for creative professionals by focusing on making significant operational improvements in content, technology, sales, marketing, and copyright protection," said Albert H. Pleus, Chairman and CEO of a21. "We nearly doubled our content in the past year and recently surpassed the one million image mark, solidifying our place as one of the top image providers worldwide. We redesigned and updated our website and e-commerce engine, www.superstock.com, while introducing innovative features such as 'SuperSelects' and 'Show More Like This' that greatly enhance the accessibility and search capabilities for our customers. We have also strengthened our global distribution network such that we are now available in 100 countries while generating increased awareness of the SuperStock brand. In addition, we have aggressively pursued copyright protection to track and prevent unauthorized use of our images."
"During the year, we added significant strength to our management team with the addition, among others, of seasoned technology and marketing executive Tom Butta as CEO of SuperStock and President of a21. Tom has brought discipline and focus to our core business while positioning the company for success in this rapidly changing industry. We improved our overall working capital by unlocking value in non-core assets including the $7.7 million sale and leaseback of our headquarters building and the subsequent $3.5mm six year sublease transaction of our underutilized space. Through all capital transactions, we have minimized dilution to our shareholders.
"The company is now well positioned to take advantage of the tremendous opportunities our expanding markets afford," Pleus concluded. "We believe that the creativity, professionalism and enthusiasm of our people assure our continued progress."
About a21/SuperStock
a21 (http://www.a21group.com) is a leading digital content marketplace for the professional creative community. Through SuperStock (http://www.superstock.com), a21 delivers high quality images and exceptional customer service. Together a21 and SuperStock provide a whole new level of image access to the best photographers, artists, photography agencies and customers in the business, offering a valuable and viable choice in the stock image industry.
The statements contained in this press release contain certain forward-looking statements, including statements regarding a21, Inc. expectations, intentions, strategies and beliefs regarding the future. All statements contained herein are based upon information available to a21, Inc. management as of the date hereof and actual results may vary based upon future events, both within and without the control of a21, Inc. management.
