IParty Corp. Announces Third Quarter 2011 Financial Results And Extension Of Revolving Credit Facility
iParty Corp. (NYSE Amex: IPT - news), a party goods retailer, today reported financial results for its third quarter of fiscal year 2011, which ended on September 24, 2011. In addition, the Company announced the signing of a five year extension on improved economic terms to its revolving credit facility with Wells Fargo Capital Finance, part of Wells Fargo & Company (NYSE: WFC) (“ Wells Fargo”).
Third Quarter 2011 Highlights
- Consolidated revenues of $16.5 million for the third quarter of 2011, a 2.6% decrease compared to the third quarter of 2010.
- Comparable store sales decrease of 5.7% for the third quarter of 2011, and 4.4% for the nine month period then ended, as compared to the applicable prior year periods.
- Net loss of $2.8 million for the third quarter of 2011, including an extraordinary loss of $393 thousand related to a flood casualty from Tropical Storm Irene, compared to net loss of $1.9 million for the third quarter of 2010.
- Adjusted EBITDA net loss for the third quarter of 2011 of $2.0 million, compared to Adjusted EBITDA net loss in the third quarter of 2010 of $1.4 million (See accompanying schedule for reconciliation of non-GAAP Adjusted EBITDA to net loss for the period).
- The opening of eleven temporary Halloween stores in September, bringing the number of iParty storefronts this Halloween season to 63 from 62 last year.
- Five year extension on improved economic terms to the Company’s existing revolving credit facility, including lower margins on borrowings and reduced reserves.
Sal Perisano, iParty’s Chairman and Chief Executive Officer, stated, "Our third quarter results continue to reflect the effects of a sluggish retail environment. The bottom line in the third quarter was also impacted by a significant flood loss in our West Lebanon, NH store caused by Tropical Storm Irene, which is temporarily closed during repairs to the store and shopping center that are expected to last three months. This same storm caused a disruption in business to several stores during the week after it hit New England."
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