iParty Corp. (NYSE Amex: IPT), a party goods retailer, today
reported financial results for its first quarter of fiscal year
2010, which ended on March 27, 2010.
First Quarter 2010 Highlights
- Improvements to top line and
bottom line in the first quarter of 2010 compared to the first
quarter of 2009.
- Consolidated revenues of $14.8
million for the first quarter of 2010, a 1.8% increase compared to
the first quarter of 2009.
- Comparable store sales increase
for the first quarter of 2010 of 1.3%.
- Net loss of $1.5 million for the
first quarter of 2010, compared to a net loss of $1.7 million for
the first quarter of 2009.
- EBITDA net loss for the first
quarter of 2010 of $976 thousand compared to an EBITDA net loss in
the first quarter of 2009 of $1,043 thousand. (See accompanying
schedule for reconciliation of non-GAAP EBITDA to net loss for the
period).
Sal Perisano, iParty’s Chairman and Chief Executive Officer,
stated, “We were pleased to see a modest increase in sales at our
comparable stores during the first quarter of 2010, following seven
consecutive quarters of negative comp store sales results prior to
this quarter. Also, by continuing to operate on a lower expense
base, we were able to translate that modest sales increase into an
improved bottom line compared to the first quarter of 2009.”
Mr. Perisano further stated, “We are also happy to report
that we expect to grow the company in 2010. Our plans include
further development of our urban store concept and expanding the
temporary Halloween store side of our business. In late 2009, we
opened our first urban store in Boston. We plan to open an
additional store in another prime Boston retail location before the
upcoming 2010 Halloween season. We are also actively reviewing
sites for an expanded number of temporary Halloween stores.”
Operating Results
For the first quarter of 2010, consolidated revenues were $14.84
million, a 1.8% increase compared to $14.57 million for the first
quarter in 2009. Comparable store sales in the first quarter of
2010 increased 1.3% compared to the year-ago period. Consolidated
gross profit margin was 35.7% for the first quarter of 2010
compared to a gross profit margin of 35.6% for the same period in
2009. Consolidated net loss for the first quarter of 2010 was $1.49
million, or $0.07 per basic and diluted share, compared to
consolidated net loss of $1.72 million, or $0.08 per basic and
diluted share, for the first quarter in 2009. On a non-GAAP basis,
net loss for the first quarter of 2010 before interest, taxes,
depreciation and amortization (“EBITDA”) was $976,324,
compared to EBITDA net loss of $1,042,790 for the first quarter in
2009. EBITDA is calculated as net income (loss), as reported under
United States generally accepted accounting principles
(“GAAP”), plus net interest expense, depreciation and
amortization and income taxes. The schedule accompanying this
release provides the reconciliation of net loss for the first
quarter of 2010 and 2009, under GAAP to a non-GAAP, EBITDA
basis.
About iParty Corp.
Headquartered in Dedham, Massachusetts, iParty Corp. is a party
goods retailer that operates 51 iParty retail stores and licenses
the operation of an Internet site for party goods and party
planning at www.iparty.com. iParty’s aim is to make throwing a
successful event both stress-free and fun. With over 20,000 party
supplies and costumes and an online party magazine and
party-related content, iParty offers consumers a sophisticated, yet
fun and easy-to-use, resource with an extensive assortment of
products to customize any party, including birthday bashes, Easter
get-togethers, graduation parties, summer barbecues, and, of
course, Halloween. iParty aims to offer reliable, time-tested
knowledge of party-perfect trends, and superior customer service to
ensure convenient and comprehensive merchandise selections for
every occasion. Please visit our site at www.iparty.com.
Non-GAAP Financial Measures
Pursuant to the requirements of Regulation G, we have provided
below reconciliations of any non-GAAP financial measures we use in
this press release to the most directly comparable GAAP financial
measures. We believe that our presentation of EBITDA, which is a
non-GAAP financial measure, is an important supplemental measure of
operating performance to investors. The discussion below defines
this term, why we believe it is a useful measure of our
performance, and explains certain limitations on the use of
non-GAAP financial measures such as our use of EBITDA.
EBITDA
EBITDA is a commonly used measure of performance in our industry
which we believe, when considered with measures calculated in
accordance with United States generally accepted accounting
principles ("GAAP"), gives investors a more complete
understanding of operating results before the impact of investing
and financing transactions and income taxes and facilitates
comparisons between us and our competitors. EBITDA is a non-GAAP
financial measure and has been presented in this release because
our management and the audit committee of our board of directors
use this financial measure in monitoring and evaluating our ongoing
financial results and trends. Our management and audit committee
believe that this non-GAAP operating performance measure is useful
for investors because it enhances investors' ability to analyze
trends in our business and compare our financial and operating
performance to that of our peers.
Limitations on the Use of Non-GAAP Measures
The use of EBITDA has certain limitations. Our presentation of
EBITDA may be different from the presentation used by other
companies and therefore comparability may be limited. Depreciation
expense for various long-term assets, interest expense, income
taxes and other items have been and will be incurred and are not
reflected in the presentation of EBITDA. Each of these items should
also be considered in the overall evaluation of our results.
Additionally, EBITDA does not consider capital expenditures and
other investing activities and should not be considered as a
measure of our liquidity. In particular, we have opened new stores
through the expenditure of capital funded with borrowings under our
bank line of credit. Our results of operations, therefore, reflect
significant charges for depreciation, amortization and interest
expense. EBITDA, which excludes these expenses, provides helpful
information about the operating performance of our business, but
EBITDA does not purport to represent operating income or cash flow
from operating activities, as those terms are defined under GAAP,
and should not be considered as an alternative to those
measurements as an indicator of our performance.
Accordingly, EBITDA should be used in addition to and in
conjunction with results presented in accordance with GAAP and
should not be considered as an alternative to net income, operating
income, or any other operating performance measure prescribed by
GAAP, nor should these measures be relied upon to the exclusion of
GAAP financial measures. EBITDA reflects additional ways of viewing
our operations that we believe, when viewed with our GAAP results
and the reconciliations to the corresponding GAAP financial
measures, provides a more complete understanding of factors and
trends affecting our business than could be obtained absent this
disclosure. We strongly encourage investors to review our financial
information in its entirety and not to rely on a single financial
measure.
RECONCILIATION OF NON-GAAP MEASURES
For the quarter ended Mar 27,
2010 Mar 28, 2009 Net loss, as
reported under GAAP $ (1,485,134 ) $ (1,715,271 ) plus,
Interest expense, net 66,163 136,524 plus, Depreciation and
amortization 442,647 535,957 plus, Income taxes
- - EBITDA
net loss, non-GAAP
$ (976,324
) $ (1,042,790
)
Safe harbor statement under the Private Securities Litigation
Reform Act of 1995
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
as contained in Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. You can
identify these statements by the fact that they use words such as
"anticipate," "believe," "estimate," "expect," "intend," "project,"
"plan," "outlook," and other words and terms of similar meaning.
These statements involve a number of risks and uncertainties that
could cause actual results to differ materially from the potential
results discussed in the forward-looking statements. Among the
factors that could cause actual results and outcomes to differ
materially from those contained in such forward-looking statements
are the following: changes in consumer confidence and consumer
spending patterns, particularly those impacting the New England
region and Florida, which may result from, among other factors,
rising or sustained high levels of unemployment, access to consumer
credit, mortgage foreclosures, credit market turmoil, declines in
the stock market, general feelings and expectations about the
overall economy, and unseasonable weather; the successful
implementation of our growth and marketing strategies; our ability
to access our existing credit line or to obtain additional
financing, if required, on acceptable terms and conditions; rising
commodity prices, especially oil and gas prices; our relationships
with our third party suppliers; the failure of our inventory
management system and our point of sale system; competition from
other party supply stores and stores that merchandise and market
party supplies, including big discount retailers, dollar store
chains, and temporary Halloween merchandisers; the availability of
retail store space on reasonable lease terms; and compliance with
evolving federal securities, accounting, and stock exchange rules
and regulations applicable to publicly-traded companies listed on
the NYSE Amex. For a more detailed discussion of risks and
uncertainties which could cause actual results to differ from those
contained in the forward-looking statements, see Item 1A, "Risk
Factors" of iParty's most recently filed Annual Report on Form 10-K
for the fiscal year ended December 26, 2009 and our other periodic
reports filed with the SEC. iParty is providing this information as
of this date, and does not undertake to update the information
included in this press release, whether as a result of new
information, future events or otherwise.
iPARTY CORP. CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited) For the quarter
ended Mar 27, 2010 Mar 28,
2009 Revenues $ 14,836,379 $ 14,568,407 Operating costs:
Cost of products sold 9,534,769 9,382,066 Marketing and sales
4,936,767 4,979,318 General and administrative
1,783,814 1,785,770
Operating loss (1,418,971 ) (1,578,747 ) Interest
expense, net
(66,163 )
(136,524 ) Net loss
$
(1,485,134 ) $
(1,715,271 ) Loss per share: Basic
and diluted
$ (0.07 )
$ (0.08 )
Weighted-average shares outstanding: Basic and diluted
22,798,647 22,731,667
iPARTY CORP. CONSOLIDATED
BALANCE SHEETS Mar 27, 2010
(Unaudited) Dec 26, 2009
ASSETS Current assets: Cash and cash equivalents $ 60,950 $
61,050 Restricted cash 480,369 1,056,525 Accounts receivable
783,645 688,506 Inventories, net 14,021,289 13,048,104 Prepaid
expenses and other assets 358,448 174,752 Deferred income tax asset
- current
70,997
70,997 Total current assets 15,775,698
15,099,934 Property and equipment, net 2,749,866 2,892,835
Intangible assets, net 1,438,558 1,606,585 Other assets 328,062
349,378 Deferred income tax asset
343,690
343,690 Total assets
$ 20,635,874 $
20,292,422 LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and
book overdrafts $ 6,059,144 $ 3,885,062 Accrued expenses 1,866,435
2,649,468 Current portion of capital lease obligations 9,228 9,228
Current notes payable 600,000 600,000 Borrowings under line of
credit
2,922,565
2,526,982 Total current liabilities 11,457,372
9,670,740 Long-term liabilities: Capital lease obligations,
net of current portion 11,534 13,841 Other liabilities
1,527,350 1,529,257
Total long-term liabilities 1,538,884 1,543,098 Commitments
and contingencies Convertible preferred stock 13,589,491
13,589,491 Common stock 22,799 22,799 Additional paid-in capital
52,357,227 52,311,059 Accumulated deficit
(58,329,899 )
(56,844,765 ) Total stockholders' equity
7,639,618 9,078,584
Total liabilities and stockholders' equity
$ 20,635,874 $
20,292,422
Iparty (AMEX:IPT)
Historical Stock Chart
From Sep 2024 to Oct 2024
Iparty (AMEX:IPT)
Historical Stock Chart
From Oct 2023 to Oct 2024