Amazon.com Announces Fourth Quarter Sales up 22% to $21.27 Billion
Amazon.com Announces Fourth Quarter Sales up 22% to $21.27 Billion
Operating income up 56% year-over-year – above high end of guidance
Business Wire
SEATTLE -- January 29, 2013
Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its
fourth quarter ended December 31, 2012.
Operating cash flow increased 7% to $4.18 billion for the trailing twelve
months, compared with $3.90 billion for the trailing twelve months ended
December 31, 2011. Free cash flow decreased 81% to $395 million for the
trailing twelve months, compared with $2.09 billion for the trailing twelve
months ended December 31, 2011. Free cash flow for the trailing twelve months
ended December 31, 2012 includes fourth quarter cash outflows for purchases of
corporate office space and property in Seattle, Washington, of $1.4 billion.
Common shares outstanding plus shares underlying stock-based awards totaled
470 million on December 31, 2012, compared with 468 million one year ago.
Net sales increased 22% to $21.27 billion in the fourth quarter, compared with
$17.43 billion in fourth quarter 2011. Excluding the $178 million unfavorable
impact from year-over-year changes in foreign exchange rates throughout the
quarter, net sales grew 23% compared with fourth quarter 2011.
Operating income increased 56% to $405 million in the fourth quarter, compared
with $260 million in fourth quarter 2011. The favorable impact from
year-over-year changes in foreign exchange rates throughout the quarter on
operating income was $2 million.
Net income decreased 45% to $97 million in the fourth quarter, or $0.21 per
diluted share, compared with $177 million, or $0.38 per diluted share, in
fourth quarter 2011.
“We’re now seeing the transition we’ve been expecting,” said Jeff Bezos,
founder and CEO of Amazon.com. “After 5 years, eBooks is a multi-billion
dollar category for us and growing fast – up approximately 70% last year. In
contrast, our physical book sales experienced the lowest December growth rate
in our 17 years as a book seller, up just 5%. We're excited and very grateful
to our customers for their response to Kindle and our ever expanding ecosystem
and selection.”
Full Year 2012
Net sales increased 27% to $61.09 billion, compared with $48.08 billion in
2011. Excluding the $854 million unfavorable impact from year-over-year
changes in foreign exchange rates throughout the year, net sales grew 29%
compared with 2011.
Operating income decreased 22% to $676 million, compared with $862 million in
2011. The unfavorable impact from year-over-year changes in foreign exchange
rates throughout the year on operating income was $14 million.
Net loss was $39 million, or $0.09 per diluted share, compared with net income
of $631 million, or $1.37 per diluted share, in 2011.
Highlights
* For the second year in a row, Amazon’s tablet was the most popular item
for customers – Kindle Fire HD continued its run as the #1 best-selling,
most gifted, and most wished for product across the millions of items
available on Amazon worldwide. At year-end, Kindle Fire HD, Kindle Fire,
Kindle Paperwhite and Kindle held the top four spots on the Amazon
worldwide best seller charts since launch.
* Amazon announced the launch of AutoRip, a new service that gives customers
free MP3 versions of CDs they purchase from Amazon. Additionally,
customers who have purchased AutoRip CDs at any time since Amazon first
opened its Music Store in 1998 will find MP3 versions of those albums in
their Cloud Player libraries – also automatically and for free.
* Amazon introduced Kindle FreeTime Unlimited, bringing together for the
first time all of the types of content kids and parents love – books,
games, educational apps, movies and TV shows – into one simple, unlimited,
easy-to-use service for kids ages 3-8.
* Amazon’s digital media selection has grown to over 23 million movies, TV
shows, songs, magazines, books, audiobooks, and popular apps and games in
2012, an increase from 19 million at year-end 2011.
* Amazon.com announced new licensing agreements with Turner Broadcasting,
Warner Bros. Domestic Television Distribution, and A+E Networks, for
popular television series including Falling Skies, The Closer, Pawn Stars,
Storage Wars, and Dance Moms, expanding its catalog of title offerings for
Prime Instant Video to more than 36,000 movies and television episodes.
* Amazon launched Kindle Stores for Brazil, Canada, China, and Japan, with a
large selection of the most popular books, including thousands of
local-language books.
* Amazon announced that 23 KDP authors each sold over 250,000 copies of
their books in 2012, and that over 500 KDP Select books have reached the
top 100 Kindle best seller lists around the world.
* Amazon announced that for the eighth consecutive year, the company ranks
#1 in customer satisfaction during the holiday shopping season according
to the ForeSee annual Holiday E-Retail Satisfaction Index. ForeSee
surveyed over 24,000 customers between Thanksgiving and Christmas, asking
them to rate their satisfaction with the top 100 retailers. For the second
year in a row, Amazon’s score of 88 is the highest ever attained by any
retailer in the study.
* Amazon Web Services (AWS) announced the launch of its newest Asia Pacific
Region in Sydney, Australia, now available for multiple services including
Amazon Elastic Compute Cloud (EC2), Amazon Simple Storage Service (S3),
and Amazon Relational Database Service (RDS). Sydney joins Singapore and
Tokyo as the third Region in Asia Pacific and the ninth Region worldwide.
* AWS announced that SAP Business Suite is now certified to run on the AWS
cloud platform. Enterprises running SAP Business Suite can now leverage
the on-demand, pay as you go AWS platform to support thousands of
concurrent users in production without making costly capital expenditures
for their underlying infrastructure. AWS also announced that SAP HANA,
SAP’s in-memory database and platform, is certified to run on AWS and is
available for purchase via AWS Marketplace.
* AWS continued its rapid pace of innovation by launching 159 new services
and features in 2012. This is nearly double the services and features
launched in 2011.
* AWS has lowered prices 24 times since it launched in 2006, including 10
price reductions in 2012.
Financial Guidance
The following forward-looking statements reflect Amazon.com’s expectations as
of January 29, 2013. Our results are inherently unpredictable and may be
materially affected by many factors, such as fluctuations in foreign exchange
rates, changes in global economic conditions and consumer spending, world
events, the rate of growth of the Internet and online commerce and the various
factors detailed below.
First Quarter 2013 Guidance
* Net sales are expected to be between $15.0 billion and $16.6 billion, or
to grow between 14% and 26% compared with first quarter 2012.
* Operating income (loss) is expected to be between $(285) million and $65
million, compared to $192 million in the prior year period.
* This guidance includes approximately $285 million for stock-based
compensation and amortization of intangible assets, and it assumes, among
other things, that no additional business acquisitions or investments are
concluded and that there are no further revisions to stock-based
compensation estimates.
A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET, and will
be available for at least three months at www.amazon.com/ir. This call will
contain forward-looking statements and other material information regarding
the Company’s financial and operating results.
These forward-looking statements are inherently difficult to predict. Actual
results could differ materially for a variety of reasons, including, in
addition to the factors discussed above, the amount that Amazon.com invests in
new business opportunities and the timing of those investments, the mix of
products sold to customers, the mix of net sales derived from products as
compared with services, the extent to which we owe income taxes, competition,
management of growth, potential fluctuations in operating results,
international growth and expansion, the outcomes of legal proceedings and
claims, fulfillment and data center optimization, risks of inventory
management, seasonality, the degree to which the Company enters into,
maintains and develops commercial agreements, acquisitions and strategic
transactions, and risks of fulfillment throughput and productivity. Other
risks and uncertainties include, among others, risks related to new products,
services and technologies, system interruptions, government regulation and
taxation, payments and fraud. In addition, the current global economic climate
amplifies many of these risks. More information about factors that potentially
could affect Amazon.com’s financial results is included in Amazon.com’s
filings with the Securities and Exchange Commission (“SEC”), including its
most recent Annual Report on Form 10-K and subsequent filings.
Our investor relations website is www.amazon.com/ir and we encourage investors
to use it as a way of easily finding information about us. We promptly make
available on this website, free of charge, the reports that we file or furnish
with the SEC, corporate governance information (including our Code of Business
Conduct and Ethics), and select press releases and social media postings.
About Amazon.com
Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle,
opened on the World Wide Web in July 1995 and today offers Earth’s Biggest
Selection. Amazon.com, Inc. seeks to be Earth’s most customer-centric company,
where customers can find and discover anything they might want to buy online,
and endeavors to offer its customers the lowest possible prices. Amazon.com
and other sellers offer millions of unique new, refurbished and used items in
categories such as Books; Movies, Music & Games; Digital Downloads;
Electronics & Computers; Home & Garden; Toys, Kids & Baby; Grocery; Apparel,
Shoes & Jewelry; Health & Beauty; Sports & Outdoors; and Tools, Auto &
Industrial. Amazon Web Services provides Amazon’s developer customers with
access to in-the-cloud infrastructure services based on Amazon’s own back-end
technology platform, which developers can use to enable virtually any type of
business. Kindle Paperwhite is the most-advanced e-reader ever constructed
with 62% more pixels and 25% increased contrast, a patented built-in front
light for reading in all lighting conditions, extra-long battery life, and a
thin and light design. The new latest generation Kindle, the lightest and
smallest Kindle, now features new, improved fonts and faster page turns.
Kindle Fire HD features a stunning custom high-definition display, exclusive
Dolby audio with dual stereo speakers, high-end, laptop-grade Wi-Fi with
dual-band support, dual-antennas and MIMO for faster streaming and downloads,
enough storage for HD content, and the latest generation processor and
graphics engine—and it is available in two display sizes—7” and 8.9”. The
large-screen Kindle Fire HD is also available with 4G wireless, and comes with
a groundbreaking $49.99 introductory 4G LTE data package. The all-new Kindle
Fire features a 20% faster processor, 40% faster performance, twice the
memory, and longer battery life.
Amazon and its affiliates operate websites, including www.amazon.com,
www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr,
www.amazon.ca, www.amazon.cn, www.amazon.it, www.amazon.es and
www.amazon.com.br. As used herein, “Amazon.com,” “we,” “our” and similar terms
include Amazon.com, Inc., and its subsidiaries, unless the context indicates
otherwise.
AMAZON.COM, INC.
Consolidated Statements of Cash Flows
(in millions)
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
(unaudited)
CASH AND CASH
EQUIVALENTS, $ 2,980 $ 2,823 $ 5,269 $ 3,777
BEGINNING OF
PERIOD
OPERATING
ACTIVITIES:
Net income 97 177 (39 ) 631
(loss)
Adjustments to
reconcile net
income to net
cash from
operating
activities:
Depreciation of
property and
equipment,
including
internal-use 662 359 2,159 1,083
software and
website
development, and
other
amortization
Stock-based 235 159 833 557
compensation
Other operating
expense 36 43 154 154
(income), net
Losses (gains)
on sales of (1 ) - (9 ) (4 )
marketable
securities, net
Other expense 100 (16 ) 253 (56 )
(income), net
Deferred income (148 ) 67 (265 ) 136
taxes
Excess tax
benefits from (239 ) (1 ) (429 ) (62 )
stock-based
compensation
Changes in
operating assets
and liabilities:
Inventories (974 ) (1,260 ) (999 ) (1,777 )
Accounts
receivable, net (1,024 ) (1,077 ) (861 ) (866 )
and other
Accounts payable 4,926 4,684 2,070 2,997
Accrued expenses 1,412 1,076 1,038 1,067
and other
Additions to 545 358 1,796 1,064
unearned revenue
Amortization of
previously (546 ) (300 ) (1,521 ) (1,021 )
unearned revenue
Net cash
provided by
(used in) 5,081 4,269 4,180 3,903
operating
activities
INVESTING
ACTIVITIES:
Purchases of
property and
equipment,
including (2,025 ) (550 ) (3,785 ) (1,811 )
internal-use
software and
website
development
Acquisitions,
net of cash (35 ) (49 ) (745 ) (705 )
acquired, and
other
Sales and
maturities of
marketable 506 912 4,237 6,843
securities and
other
investments
Purchases of
marketable
securities and (1,528 ) (1,782 ) (3,302 ) (6,257 )
other
investments
Net cash
provided by
(used in) (3,082 ) (1,469 ) (3,595 ) (1,930 )
investing
activities
FINANCING
ACTIVITIES:
Excess tax
benefits from 239 1 429 62
stock-based
compensation
Common stock - (277 ) (960 ) (277 )
repurchased
Proceeds from
long-term debt 3,083 47 3,378 177
and other
Repayments of
long-term debt,
capital lease, (156 ) (104 ) (588 ) (444 )
and finance
lease
obligations
Net cash
provided by
(used in) 3,166 (333 ) 2,259 (482 )
financing
activities
Foreign-currency
effect on cash (61 ) (21 ) (29 ) 1
and cash
equivalents
Net increase
(decrease) in 5,104 2,446 2,815 1,492
cash and cash
equivalents
CASH AND CASH
EQUIVALENTS, END $ 8,084 $ 5,269 $ 8,084 $ 5,269
OF PERIOD
SUPPLEMENTAL
CASH FLOW
INFORMATION:
Cash paid for
interest on $ 10 $ 4 $ 31 $ 14
long-term debt
Cash paid for
income taxes 52 15 112 33
(net of refunds)
Property and
equipment 239 187 802 753
acquired under
capital leases
Property and
equipment
acquired, net, (17 ) 39 29 259
under
build-to-suit
leases
AMAZON.COM, INC.
Consolidated Statements of Operations
(in millions, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
(unaudited)
Net product $ 18,147 $ 15,309 $ 51,733 $ 42,000
sales (1)
Net services 3,121 2,122 9,360 6,077
sales (2)
Net sales 21,268 17,431 61,093 48,077
Operating
expenses (3):
Cost of sales 16,136 13,830 45,971 37,288
Fulfillment 2,258 1,659 6,419 4,576
Marketing 851 593 2,408 1,630
Technology and 1,345 862 4,564 2,909
content
General and 235 184 896 658
administrative
Other
operating 38 43 159 154
expense
(income), net
Total
operating 20,863 17,171 60,417 47,215
expenses
Income from 405 260 676 862
operations
Interest 9 14 40 61
income
Interest (28 ) (20 ) (92 ) (65 )
expense
Other income (49 ) 19 (80 ) 76
(expense), net
Total
non-operating (68 ) 13 (132 ) 72
income
(expense)
Income before 337 273 544 934
income taxes
Provision for (194 ) (86 ) (428 ) (291 )
income taxes
Equity-method
investment (46 ) (10 ) (155 ) (12 )
activity, net
of tax
Net income $ 97 $ 177 $ (39 ) $ 631
(loss)
Basic earnings $ 0.21 $ 0.39 $ (0.09 ) $ 1.39
per share
Diluted
earnings per $ 0.21 $ 0.38 $ (0.09 ) $ 1.37
share
Weighted
average shares
used in
computation of
earnings per
share:
Basic 454 455 453 453
Diluted 461 462 453 461
(1) Represents
revenue from
the sale of
products and
related
shipping fees
and digital
content where
we are the
seller of
record.
(2) Represents
third-party
seller fees
earned
(including
commissions)
and related
shipping fees,
digital
content
subscriptions,
and non-retail
activities.
(3) Includes
stock-based
compensation
as follows:
Fulfillment $ 62 $ 42 $ 212 $ 133
Marketing 18 12 61 39
Technology and 124 80 434 292
content
General and 31 25 126 93
administrative
AMAZON.COM, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
(unaudited)
Net income (loss) $ 97 $ 177 $ (39 ) $ 631
Other
comprehensive
income (loss):
Foreign currency
translation
adjustments, net 60 (77 ) 76 (123 )
of tax of $(12),
$3, $(30), and $20
Net change in
unrealized gains
on
available-for-sale
securities:
Unrealized gains
(losses), net of (1 ) 1 8 (1 )
tax of $1, $0,
$(3), and $1
Reclassification
adjustment for
losses (gains)
included in net (1 ) - (7 ) (2 )
income, net of tax
effect of $0, $0,
$3, and $1
Net unrealized
gains (losses) on (2 ) 1 1 (3 )
available-for-sale
securities
Total other
comprehensive 58 (76 ) 77 (126 )
income (loss)
Comprehensive $ 155 $ 101 $ 38 $ 505
income
AMAZON.COM, INC.
Segment Information
(in millions)
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
(unaudited)
North America
Net sales $ 12,175 $ 9,902 $ 34,813 $ 26,705
Segment
operating 11,567 9,617 33,221 25,772
expenses (1)
Segment
operating $ 608 $ 285 $ 1,592 $ 933
income
International
Net sales $ 9,093 $ 7,529 $ 26,280 $ 21,372
Segment
operating 9,023 7,352 26,204 20,732
expenses (1)
Segment
operating $ 70 $ 177 $ 76 $ 640
income
Consolidated
Net sales $ 21,268 $ 17,431 $ 61,093 $ 48,077
Segment
operating 20,590 16,969 59,425 46,504
expenses (1)
Segment
operating 678 462 1,668 1,573
income
Stock-based (235 ) (159 ) (833 ) (557 )
compensation
Other
operating
income (38 ) (43 ) (159 ) (154 )
(expense),
net
Income from 405 260 676 862
operations
Total
non-operating (68 ) 13 (132 ) 72
income
(expense)
Provision for (194 ) (86 ) (428 ) (291 )
income taxes
Equity-method
investment (46 ) (10 ) (155 ) (12 )
activity, net
of tax
Net income $ 97 $ 177 $ (39 ) $ 631
(loss)
Segment
Highlights:
Y/Y net sales
growth:
North America 23 % 37 % 30 % 43 %
International 21 31 23 38
Consolidated 22 35 27 41
Y/Y segment
operating
income growth
(decline):
North America 114 % (4 ) % 71 % (2 ) %
International (61 ) (46 ) (88 ) (35 )
Consolidated 47 (26 ) 6 (19 )
Net sales
mix:
North America 57 % 57 % 57 % 56 %
International 43 43 43 44
100 % 100 % 100 % 100 %
(1) Represents operating expenses, excluding stock-based compensation and "Other
operating expense (income), net," which are not allocated to segments.
AMAZON.COM, INC.
Supplemental Net Sales Information
(in millions)
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
(unaudited)
North America
Media $ 2,903 $ 2,562 $ 9,189 $ 7,959
Electronics
and other 8,503 6,881 23,273 17,315
general
merchandise
Other (1) 769 459 2,351 1,431
Total North $ 12,175 $ 9,902 $ 34,813 $ 26,705
America
International
Media $ 3,611 $ 3,447 $ 10,753 $ 9,820
Electronics
and other 5,431 4,032 15,355 11,397
general
merchandise
Other (1) 51 50 172 155
Total $ 9,093 $ 7,529 $ 26,280 $ 21,372
International
Consolidated
Media $ 6,514 $ 6,009 $ 19,942 $ 17,779
Electronics
and other 13,934 10,913 38,628 28,712
general
merchandise
Other (1) 820 509 2,523 1,586
Total $ 21,268 $ 17,431 $ 61,093 $ 48,077
Consolidated
Y/Y Net Sales
Growth:
North America:
Media 13 % 8 % 15 % 16 %
Electronics
and other 24 51 34 57
general
merchandise
Other 68 62 64 73
Total North 23 37 30 43
America
International:
Media 5 % 20 % 9 % 23 %
Electronics
and other 35 42 35 55
general
merchandise
Other 4 32 11 24
Total 21 31 23 38
International
Consolidated:
Media 8 % 15 % 12 % 19 %
Electronics
and other 28 48 35 56
general
merchandise
Other 61 58 59 66
Total 22 35 27 41
Consolidated
Y/Y Net Sales
Growth
Excluding
Effect of
Exchange
Rates:
International:
Media 7 % 18 % 12 % 16 %
Electronics
and other 37 41 40 47
general
merchandise
Other 5 31 15 18
Total 23 29 27 31
International
Consolidated:
Media 10 % 14 % 14 % 16 %
Electronics
and other 29 47 36 53
general
merchandise
Other 61 58 59 66
Total 23 34 29 37
Consolidated
Consolidated
Net Sales Mix:
Media 31 % 34 % 33 % 37 %
Electronics
and other 65 63 63 60
general
merchandise
Other 4 3 4 3
100 % 100 % 100 % 100 %
(1) Includes sales from non-retail activities, such as AWS in the North America
segment, advertising services, and our co-branded credit card agreements in both
segments.
AMAZON.COM, INC.
Consolidated Balance Sheets
(in millions, except per share data)
December 31, December 31,
2012 2011
ASSETS
Current assets:
Cash and cash equivalents $ 8,084 $ 5,269
Marketable securities 3,364 4,307
Inventories 6,031 4,992
Accounts receivable, net and 3,364 2,571
other
Deferred tax assets 453 351
Total current assets 21,296 17,490
Property and equipment, net 7,060 4,417
Deferred tax assets 123 28
Goodwill 2,552 1,955
Other assets 1,524 1,388
Total assets $ 32,555 $ 25,278
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 13,318 $ 11,145
Accrued expenses and other 5,684 3,751
Total current liabilities 19,002 14,896
Long-term debt 3,084 255
Other long-term liabilities 2,277 2,370
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par
value:
Authorized shares — 500
Issued and outstanding shares — - -
none
Common stock, $0.01 par value:
Authorized shares — 5,000
Issued shares — 478 and 473
Outstanding shares — 454 and 455 5 5
Treasury stock, at cost (1,837 ) (877 )
Additional paid-in capital 8,347 6,990
Accumulated other comprehensive (239 ) (316 )
loss
Retained earnings 1,916 1,955
Total stockholders' equity 8,192 7,757
Total liabilities and $ 32,555 $ 25,278
stockholders' equity
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except per share data)
(unaudited)
Y/Y %
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Change
Cash Flows
and Shares
Operating
cash flow --
trailing $ 3,903 $ 3,051 $ 3,222 $ 3,368 $ 4,180 7 %
twelve months
(TTM)
Purchases of
property and
equipment
(incl.
internal-use $ 1,811 $ 1,899 $ 2,123 $ 2,310 $ 3,785 109 %
software &
website
development)
-- TTM
Free cash
flow
(operating
cash flow
less $ 2,092 $ 1,152 $ 1,099 $ 1,058 $ 395 (81 %)
purchases of
property and
equipment) --
TTM
Free cash
flow -- TTM (17 %) (39 %) (40 %) (31 %) (81 %) N/A
Y/Y growth
(decline)
Invested $ 9,680 $ 10,006 $ 10,250 $ 10,392 $ 11,181 16 %
capital (1)
Return on
invested 22 % 12 % 11 % 10 % 4 % N/A
capital (2)
Common shares
and
stock-based 468 464 468 469 470 0 %
awards
outstanding
Common shares 455 450 452 453 454 0 %
outstanding
Stock-based
awards 14 13 16 16 16 17 %
outstanding
Stock-based
awards
outstanding 3.0 % 2.9 % 3.6 % 3.6 % 3.5 % N/A
-- % of
common shares
outstanding
Results of
Operations
Worldwide
(WW) net $ 17,431 $ 13,185 $ 12,834 $ 13,806 $ 21,268 22 %
sales
WW net sales
-- Y/Y 34 % 34 % 32 % 30 % 23 % N/A
growth,
excluding F/X
WW net sales $ 48,077 $ 51,404 $ 54,325 $ 57,256 $ 61,093 27 %
-- TTM
WW net sales
-- TTM Y/Y 37 % 37 % 35 % 33 % 29 % N/A
growth,
excluding F/X
Operating $ 260 $ 192 $ 107 $ (28 ) $ 405 56 %
income (loss)
Operating
income -- Y/Y
growth (48 %) (38 %) (34 %) (137 %) 59 % N/A
(decline),
excluding F/X
Operating
margin -- % 1.5 % 1.5 % 0.8 % (0.2 %) 1.9 % N/A
of WW net
sales
Operating $ 862 $ 732 $ 637 $ 531 $ 676 (22 %)
income -- TTM
Operating
income -- TTM
Y/Y growth (44 %) (50 %) (50 %) (48 %) (15 %) N/A
(decline),
excluding F/X
Operating
margin -- TTM 1.8 % 1.4 % 1.2 % 0.9 % 1.1 % N/A
% of WW net
sales
Net income $ 177 $ 130 $ 7 $ (274 ) $ 97 (45 %)
(loss)
Net income
(loss) per $ 0.38 $ 0.28 $ 0.01 $ (0.60 ) $ 0.21 (45 %)
diluted share
Net income $ 631 $ 561 $ 377 $ 40 $ (39 ) (106 %)
(loss) -- TTM
Net income
(loss) per $ 1.37 $ 1.22 $ 0.82 $ 0.09 $ (0.09 ) (106 %)
diluted share
-- TTM
Segments
North America
Segment:
Net sales $ 9,902 $ 7,427 $ 7,326 $ 7,884 $ 12,175 23 %
Net sales --
Y/Y growth, 37 % 36 % 36 % 33 % 23 % N/A
excluding F/X
Net sales -- $ 26,705 $ 28,667 $ 30,587 $ 32,540 $ 34,813 30 %
TTM
Operating $ 285 $ 349 $ 344 $ 291 $ 608 114 %
income
Operating
margin -- %
of North 2.9 % 4.7 % 4.7 % 3.7 % 5.0 % N/A
America net
sales
Operating $ 933 $ 991 $ 1,120 $ 1,268 $ 1,592 71 %
income -- TTM
Operating
income -- TTM
Y/Y growth (2 %) 2 % 14 % 34 % 71 % N/A
(decline),
excluding F/X
Operating
margin -- TTM
% of North 3.5 % 3.5 % 3.7 % 3.9 % 4.6 % N/A
America net
sales
International
Segment:
Net sales $ 7,529 $ 5,758 $ 5,508 $ 5,922 $ 9,093 21 %
Net sales --
Y/Y growth, 29 % 32 % 28 % 27 % 23 % N/A
excluding F/X
Net sales -- $ 21,372 $ 22,737 $ 23,738 $ 24,716 $ 26,280 23 %
TTM
Net sales --
TTM % of WW 44 % 44 % 44 % 43 % 43 % N/A
net sales
Operating $ 177 $ 49 $ 16 $ (59 ) $ 70 (61 %)
income (loss)
Operating
margin -- %
of 2.4 % 0.9 % 0.3 % (1.0 %) 0.8 % N/A
International
net sales
Operating $ 640 $ 515 $ 359 $ 183 $ 76 (88 %)
income -- TTM
Operating
income -- TTM
Y/Y growth (41 %) (49 %) (57 %) (68 %) (77 %) N/A
(decline),
excluding F/X
Operating
margin -- TTM
% of 3.0 % 2.3 % 1.5 % 0.7 % 0.3 % N/A
International
net sales
Consolidated
Segments:
Operating $ 16,969 $ 12,787 $ 12,474 $ 13,574 $ 20,590 21 %
expenses (3)
Operating
expenses -- $ 46,504 $ 49,899 $ 52,846 $ 55,805 $ 59,425 28 %
TTM (3)
Operating $ 462 $ 398 $ 360 $ 232 $ 678 47 %
income
Operating
margin -- %
of 2.7 % 3.0 % 2.8 % 1.7 % 3.2 % N/A
Consolidated
sales
Operating $ 1,573 $ 1,505 $ 1,480 $ 1,451 $ 1,668 6 %
income -- TTM
Operating
income -- TTM
Y/Y growth (21 %) (22 %) (21 %) (15 %) 7 % N/A
(decline),
excluding F/X
Operating
margin -- TTM
% of 3.3 % 2.9 % 2.7 % 2.5 % 2.7 % N/A
Consolidated
net sales
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except inventory turnover, accounts payable days and employee data)
(unaudited)
Y/Y %
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Change
Supplemental
Supplemental
North America
Segment Net
Sales:
Media $ 2,562 $ 2,197 $ 1,874 $ 2,215 $ 2,903 13 %
Media -- Y/Y
growth, 8 % 17 % 18 % 15 % 13 % N/A
excluding F/X
Media -- TTM $ 7,959 $ 8,270 $ 8,559 $ 8,847 $ 9,189 15 %
Electronics
and other $ 6,881 $ 4,772 $ 4,937 $ 5,061 $ 8,503 24 %
general
merchandise
Electronics
and other
general
merchandise 51 % 44 % 41 % 39 % 24 % N/A
-- Y/Y
growth,
excluding F/X
Electronics
and other
general $ 17,315 $ 18,784 $ 20,226 $ 21,652 $ 23,273 34 %
merchandise
-- TTM
Electronics
and other
general
merchandise 65 % 66 % 66 % 67 % 67 % N/A
-- TTM % of
North America
net sales
Other $ 459 $ 458 $ 515 $ 608 $ 769 68 %
Other -- TTM $ 1,431 $ 1,613 $ 1,802 $ 2,041 $ 2,351 64 %
Supplemental
International
Segment Net
Sales:
Media $ 3,447 $ 2,513 $ 2,245 $ 2,385 $ 3,611 5 %
Media -- Y/Y
growth, 18 % 22 % 12 % 12 % 7 % N/A
excluding F/X
Media -- TTM $ 9,820 $ 10,261 $ 10,431 $ 10,590 $ 10,753 9 %
Electronics
and other $ 4,032 $ 3,203 $ 3,224 $ 3,497 $ 5,431 35 %
general
merchandise
Electronics
and other
general
merchandise 41 % 42 % 42 % 39 % 37 % N/A
-- Y/Y
growth,
excluding F/X
Electronics
and other
general $ 11,397 $ 12,314 $ 13,139 $ 13,956 $ 15,355 35 %
merchandise
-- TTM
Electronics
and other
general
merchandise 53 % 54 % 55 % 56 % 58 % N/A
-- TTM % of
International
net sales
Other $ 50 $ 42 $ 39 $ 40 $ 51 4 %
Other -- TTM $ 155 $ 162 $ 168 $ 170 $ 172 11 %
Supplemental
Worldwide Net
Sales:
Media $ 6,009 $ 4,710 $ 4,119 $ 4,600 $ 6,514 8 %
Media -- Y/Y
growth, 14 % 19 % 15 % 14 % 10 % N/A
excluding F/X
Media -- TTM $ 17,779 $ 18,531 $ 18,990 $ 19,437 $ 19,942 12 %
Electronics
and other $ 10,913 $ 7,975 $ 8,161 $ 8,558 $ 13,934 28 %
general
merchandise
Electronics
and other
general
merchandise 47 % 43 % 42 % 39 % 29 % N/A
-- Y/Y
growth,
excluding F/X
Electronics
and other
general $ 28,712 $ 31,098 $ 33,365 $ 35,608 $ 38,628 35 %
merchandise
-- TTM
Electronics
and other
general 60 % 60 % 61 % 62 % 63 % N/A
merchandise
-- TTM % of
WW net sales
Other $ 509 $ 500 $ 554 $ 648 $ 820 61 %
Other -- TTM $ 1,586 $ 1,775 $ 1,970 $ 2,211 $ 2,523 59 %
Balance Sheet
Cash and
marketable $ 9,576 $ 5,715 $ 4,970 $ 5,248 $ 11,448 20 %
securities
Inventory, $ 4,992 $ 4,255 $ 4,380 $ 5,065 $ 6,031 21 %
net -- ending
Inventory
turnover, 10.3 10.4 10.1 9.7 9.3 (10 %)
average --
TTM
Fixed assets, $ 4,417 $ 4,653 $ 5,097 $ 5,662 $ 7,060 60 %
net
Accounts
payable -- $ 11,145 $ 6,886 $ 7,072 $ 8,369 $ 13,318 20 %
ending
Accounts
payable days 74 62 68 75 76 2 %
-- ending
Other
WW shipping $ 531 $ 461 $ 469 $ 517 $ 832 57 %
revenue
WW shipping $ 1,466 $ 1,129 $ 1,054 $ 1,153 $ 1,798 23 %
costs
WW net
shipping $ 935 $ 668 $ 585 $ 636 $ 966 3 %
costs
WW net
shipping 5.4 % 5.1 % 4.6 % 4.6 % 4.5 % N/A
costs -- % of
WW net sales
Employees
(full-time
and
part-time; 56,200 65,600 69,100 81,400 88,400 57 %
excludes
contractors &
temporary
personnel)
(1) Average Total Assets minus Current Liabilities (excluding current portion of Long Term Debt) over five quarter
ends.
(2) TTM Free Cash Flow divided by Invested Capital.
(3) Represents cost of sales, fulfillment, marketing, technology and content, and general and administrative
operating expenses, excluding stock-based compensation.
Amazon.com, Inc.
Certain Definitions
Customer Accounts
* References to customers mean customer accounts, which are unique e-mail
addresses, established either when a customer places an order or when a
customer orders from other sellers on our websites. Customer accounts
exclude certain customers, including customers associated with certain of
our acquisitions, Amazon Payments customers, Amazon Web Services
customers, and the customers of select companies with whom we have a
technology alliance or marketing and promotional relationship. Customers
are considered active when they have placed an order during the preceding
twelve-month period.
Seller Accounts
* References to sellers means seller accounts, which are established when a
seller receives an order from a customer account. Sellers are considered
active when they have received an order from a customer during the
preceding twelve-month period.
Registered Developers
* References to registered developers mean cumulative registered developer
accounts, which are established when potential developers enroll with
Amazon Web Services and receive a developer access key.
Units
* References to units mean physical and digital units sold (net of returns
and cancellations) by us and sellers at Amazon domains worldwide – for
example www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp,
www.amazon.fr, www.amazon.ca, www.amazon.cn, www.amazon.it, www.amazon.es,
www.amazon.com.br, www.diapers.com, www.shopbop.com and www.zappos.com –
as well as Amazon-owned items sold through non-Amazon domains. Units sold
are paid units and do not include units associated with certain
acquisitions, rental businesses, web services or advertising businesses,
or Amazon gift certificates.
Contact:
Amazon.com, Inc.
Investor Relations:
Sean Boyle, 206-266-2171
www.amazon.com/ir
or
Public Relations:
Ty Rogers, 206-266-7180
The story has been truncated,
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