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IParty Corp. Reports Fiscal 2011 And Fourth Quarter Financial Results

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; disruptions to our most important selling season, Halloween; 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; effect of Chinese inflation on our suppliers and product pricing; 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; risks related to e-commerce; 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 25, 2010 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 three months ended For the twelve months ended
Dec 31, 2011 Dec 25, 2010 Dec 31, 2011 Dec 25, 2010
Revenues $ 29,710,785 $ 29,491,967 $ 80,882,751 $ 81,291,429
Operating costs:
Cost of products sold and occupancy costs 16,912,576 16,908,670 49,147,010 49,023,399
Marketing and sales 8,082,924 8,032,949 25,509,559 24,927,511
General and administrative 1,649,697 1,604,661 6,827,196 6,850,321
Flood loss   5,715     -     398,751     -  
 
Operating income (loss) 3,059,873 2,945,687 (999,765 ) 490,198
 
Change in fair value of warrant liability - 10,833 10,000 10,833
Interest expense, net   (56,847 )   (41,161 )   (305,530 )   (249,195 )
 
Income (loss) before income taxes 3,003,026

 

2,915,359

 

(1,295,295 )

 

251,836
 
Income taxes (benefit)   19,343     (2,613 )   19,343     (2,613 )
 
Net income (loss) $ 2,983,683  

 

$ 2,917,972  

 

$ (1,314,638 )

 

$ 254,449  
 

Income (loss) per share:

Basic

$ 0.08   $ 0.08   $ (0.05 ) $ 0.01  

Diluted

$ 0.08   $ 0.07   $ (0.05 ) $ 0.01  

 

 
Weighted-average shares outstanding:
Basic   38,930,281     38,358,472     24,386,220     38,251,888  
Diluted   39,201,487     39,392,056     24,386,220     39,281,252  
 

iPARTY CORP.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
         
Dec 31, 2011 Dec 25, 2010
ASSETS
Current assets:
Cash $ 63,650 $ 62,650
Restricted cash 819,604 616,742
Accounts receivable 1,377,234 626,181
Inventories 15,965,507 14,950,933
Prepaid expenses and other assets 1,415,780 253,749
Deferred income tax asset - current   46,761   95,163
Total current assets 19,688,536 16,605,418
Property and equipment, net 2,664,086 3,000,798
Intangible assets, net 626,900 934,477
Other assets 333,731 264,179
Deferred income tax asset   540,842   476,354
Total assets $ 23,854,095 $ 21,281,226
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and book overdrafts $ 5,970,014 $ 4,572,147
Accrued expenses 2,295,467 2,254,049
Current portion of capital lease obligations 4,614 9,228
Current note payable and warrant liability - 10,000
Borrowings under line of credit   5,366,512   3,102,213
Total current liabilities 13,636,607 9,947,637
 
Long-term liabilities:
Capital lease obligations, net of current portion - 4,613
Deferred rent   1,504,973   1,517,157
Total long-term liabilities 1,504,973 1,521,770
 
Commitments and contingencies
 
Convertible preferred stock 13,012,668 13,024,721
Common stock 24,409 24,294
Additional paid-in capital 52,987,574 52,760,302
Accumulated deficit   (57,312,136 )   (55,997,498 )

Total stockholders' equity

  8,712,515     9,811,819
 
Total liabilities and stockholders' equity $ 23,854,095 $ 21,281,226
 




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