A21 SuperStock Posts $4.7MM Loss for 2005
A21 Group, owner of SuperStock, PureStock, and Ingram Publishing, reported its 2005 full-year results, posting a net loss of $4.8MM on revenue of $9.6MM. Compared to adjusted(*) figures for 2004, this represents a 7% increase in the company’s gross sales and a near doubling of its net loss. The company’s gross profit margin decreased from 70% to 68% as its cost of revenue rose at a faster rate than revenue. Management attributes this relative increase in the cost of revenue to the normal fluctuations in the proportions of higher vs. lower commission imagery it licenses. Conversely, Selling General and Administrative expenses dropped as a percentage of revenue leading to a relatively flat negative EBITDA of $928K in 2005 vs. an adjusted $834K in 2004.
A21 SuperStock Results in $000s
Full year Ended*: 12/31/05 % 12/31/04 %
Gross Sales $9,563 100 $8,970 100
Cost of Revenue $3,090 32 $2,689 30
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Gross Profit $6,473 68 $6, 280 70
SG&A Expenses $7,401 77 $7,114 79
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EBITDA (Loss) ($928) -10 ($834) -9
[* Please Note: A21 purchased SuperStock in February of 2004. Therefore, the actual figures for 2004 apply to only ten months of operations. For the sake of this article and in order make more useful comparisons between 2005 and 2004 results, we adjusted the 2004 figures by dividing them by ten and multiplying them by twelve.]
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