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57th Street General Acquisition Corp. (the “Company”) (NASDAQ: CRMB), owner of Crumbs Holdings LLC (“Crumbs”), a national neighborhood bakery and the largest U.S.-based retailer of cupcakes, today announced financial results for the second quarter and year-to-date periods ended June 30, 2011. The Company also raised its 2011 development outlook to 16-18 new store openings from 14-16, reaffirmed its commitment to have 200 stores in operation by year-end 2014 and provided a general financial outlook.
Second Quarter Highlights as Compared to Year Ago Period Include:
Net sales increased 30.1% to $10.3 million; gross profit increased 27.5% to $5.9 million.
Store operating weeks increased 40.0% to 455 from 325.
Comparable store sales decreased 6.0%.
GAAP net loss before non-controlling interest of ($0.5 million), net loss attributable to stockholders of ($0.3 million) or ($0.05) per share, basic and diluted.
Adjusted EBITDA, a non GAAP measure, of $0.1 million compared to $0.8 million (*).
One new store opened in New York City.
Year-to-Date Highlights as Compared to Year Ago Period Include:
Net sales increased 33.1% to $20.0 million; gross profit increased 30.4% to $11.6 million.
Store operating weeks increased 37.2% to 892 from 650.
Comparable store sales decreased 2.1%.
GAAP net loss before non-controlling interest of ($0.4 million), net loss attributable to stockholders of ($0.3 million) or ($0.05) per share, basic and diluted.
Adjusted EBITDA of $0.6 million compared to $1.6 million (*).
Two new stores opened, Newark Liberty Airport and New York City.
*See financial tables for a reconciliation of adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), a non-GAAP measure, to GAAP results.
Jason Bauer, Co-Founder of Crumbs and CEO and President of the Company stated, “Second quarter growth in revenue and gross profit was driven by a significant increase in store operating weeks offset by softness in comparable store sales. The decline in comparable store sales was largely a function of our small store base and our intent to cannibalize several of our highest performing locations. For that reason, we continue to believe that total revenue growth, store operating week expansion, and store-level returns are a more accurate measure of our progress.” Bauer continued, “To that point, our unit-level economics and key metrics continue to justify our rapid expansion and we’re pleased to increase our development target for 2011 while reiterating our goal of 200 stores in operation by the end of 2014. Our new-found balance sheet strength is a true competitive advantage during this multi-year expansion phase, allowing us to invest in numerous initiatives that we believe will solidify our position as our country’s favorite neighborhood bakery and largest retailer of cupcakes.”