Crumbs Bake Shop, Inc. (“Crumbs”) (NASDAQ: CRMB), the largest cupcake specialty store chain in the U.S., today reported financial results for the quarter ended September 30, 2012. In addition, the Company provided a business update in the aftermath of Hurricane Sandy as well as an update to its outlook for 2012, while reiterating its outlook for 2013.
Third Quarter 2012 Highlights as Compared to Third Quarter 2011 Highlights:
- Net sales increased 11.5% to $9.9 million; gross profit increased 6.7% to $5.5 million.
- Store operating weeks increased 44.7% to 677 from 468.
- Net loss attributable to stockholders was $(1.3) million, or $(0.23) per diluted share, compared to a net loss of $(0.9) million, or $(0.17) per diluted share.
- Net loss attributable to the controlling and non-controlling interests was $(2.1) million compared to a net loss of $(1.6) million.
- Adjusted EBITDA 1, a non GAAP measure, was $(1.2) million compared to $(0.7) million.
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, said, “Our results for the third quarter were soft, but similar to our expectations. I believe that we are continuing to make progress in implementing each of our six strategic initiatives, which should have a positive impact on our sales and profitability.”
Geiger continued, “Having successfully completed raising additional capital, with net proceeds of about $9.3 million, Crumbs now has the requisite financial resources to move forward with its aggressive mall based expansion strategy in 2013 and beyond.”