Based upon actual results through the first half of 2013 along with its revised outlook for the balance of the year, Crumbs is lowering its annual expectations to net sales of approximately $53 million from $57 million and adjusted EBITDA of approximately $(4.9) million from $(3.9) million. The Company’s updated sales projection reflects continued weakness at street-level stores that is being only partially offset by positive contributions from newer mall-based stores and kiosks. Any additional store closures would also further impact both sales and adjusted EBITDA.
See financial tables for a reconciliation of projected adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), a non-GAAP measure, to projected GAAP results.
The Company has opened 21 mall-based stores and kiosks within its current geographic footprint in 2013 and anticipates opening one additional location by the end of the year.Earnings Call Crumbs will host an earnings call to discuss second quarter 2013 financial results today at 5:00 PM Eastern Time. Hosting the call will be Julian R. Geiger, President and Chief Executive Officer, and John D. Ireland, Senior VP of Finance, Chief Financial Officer and Treasurer. The conference call can be accessed live over the phone by dialing 888-208-1812 or for international callers by dialing 719-325-2481. A replay will be available one hour after the call and can be accessed by dialing 877-870-5176 or 858-384-5517 for international callers; the password is 6013500. The replay will be available until August 22, 2013. The call will also be webcast live from the Company’s Web site at www.crumbs.com under the Investor Relations section. An archived webcast will be available beginning approximately one hour after the end of the call. About Crumbs Bake Shop, Inc. The first Crumbs bake shop opened in March 2003 on the Upper West Side of Manhattan and is well known for its innovative and oversized gourmet cupcakes. The Company currently has 78 locations in 12 states and the District of Columbia.