Crumbs Bake Shop, Inc. (“Crumbs”) (NASDAQ: CRMB), a national neighborhood bakery and the largest U.S.-based cupcake specialty store chain, today reported financial results for the fourth quarter ended December 31, 2011.
Fourth Quarter Highlights as Compared to the Previous Year:
- Net sales increased 28.8% to $11.0 million; gross profit increased 28.3% to $6.2 million.
- Store operating weeks increased 59.4% to 574 from 360.
- Net loss attributable to stockholders was $(2.5) million or $(0.45) per diluted share.
- Net loss attributable to the controlling and non-controlling interests was $(4.3) million, which included $2.3 million in cash and non-cash expenses related to the CEO transition and $0.8 million in non-cash loss on impairment of leasehold improvements. This compares to a net loss attributable to stockholders in 2010 of $(134,000) or $(0.03) per diluted share.
- Adjusted EBITDA 1, a non GAAP measure, of $(0.5) million compared to $0.3 million.
- 9 new stores opened in New York, Chicago and Washington, D.C.
1. See financial tables for a reconciliation of adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), a non-GAAP measure, to GAAP results.
Julian R. Geiger, President and Chief Executive Officer of Crumbs said, “Our results for the fourth quarter were certainly unsatisfactory, and highlight the need for substantive changes that will help us stabilize the business in 2012. We have already identified the most important areas to address, and have begun to implement new policies and approaches to improve our structure, our operating model and our merchandising. We believe that these initiatives will position Crumbs for better financial performance in the second half of the year when compared to both the second half of 2011 and the first half of 2012. We also believe that these changes, and others that we envision in the coming months, will lead to more significant growth in 2013.”