- Total revenue for the quarter, including $3.8 million from etailz for the Post Acquisition Period, decreased 4.0% to $66.3 million compared to $69.1 million for the same period last year. At the end of the quarter, the Company operated 294 stores compared to 309 stores at the same time last year, a 4.9% decline.
- Comparable store sales for the third quarter were down 5% compared to the same quarter last year, as a 27% comp increase in our trend category was offset by an 18% decline in our heritage media categories. The trend category represented 32% of business for the quarter as compared to 23% last year.
- Gross profit for the quarter was $26.9 million, or 40.5% of revenue, compared to $27.8 million, or 40.3% of revenue, for the same period last year. Gross profit as a percentage of revenue excluding the impact of etailz was 41.5% for the quarter, compared to 40.3% for the same period last year, a 120 basis point increase. The increase in gross profit as a percentage of revenue was due primarily to higher margins and increased revenue contribution from the trend category. During the quarter, etailz contributed $940 thousand in gross profit, or 24.6% of etailz revenue for the Post Acquisition Period.
- Selling, general and administrative ("SG&A") expenses including acquisition expenses, increased approximately $2.2 million, or 7.2%, for the quarter to $32.6 million, or 49.1% of revenue, compared to $30.4 million, or 44.0% of revenue, for the same period last year. SG&A in the third quarter included $3.6 million in expenses related to etailz, including $2.5 million in acquisition related expenses. SG&A expenses excluding the impact of etailz, decreased approximately $1.4 million, or 4.6%, for the quarter to $29.0 million, or 46.4% of sales.
- The Company had $5.9 million outstanding under its credit facility at the end of the third quarter and cash and cashs equivalent on hand of $4.7 million. At the end of the third quarter last year, the Company had $74.9 million on hand without any borrowings on its credit facility. The primary use of cash was $64 million related to the acquisition and operations of etailz. Additional uses of cash included the repurchase of shares in previous quarters, investments in new and remodeled stores, technology enhancements; including a new POS implementation and the chain wide rollout of new marketplace fixtures to support the shift in our merchandise assortment.
ALBANY, N.Y., Nov. 17, 2016 (GLOBE NEWSWIRE) -- Trans World Entertainment Corporation (Nasdaq:TWMC) today reported financial results for its third quarter ended October 29, 2016. For the third quarter of 2016, the Company reported a net loss of $8.1 million or $0.26 per diluted share, including $2.7 million in acquisition related expenses, as compared to a net loss of $4.3 million, or $0.14 per diluted share, for the same period last year. Adjusted EBITDA (a non GAAP measure) for the third quarter of 2016 (see note 1) was a loss of $3.2 million, as compared to a loss of $2.6 million for the third quarter of 2015. During the quarter, the Company completed its acquisition of etailz, Inc. ("etailz"), an innovative and leading digital marketplace retail expert. Results for etailz are included in our financial statements beginning October 17, 2016, the date of the closing of the acquisition ("Post Acquisition Period"). The Company is currently in the process of reviewing certain preliminary purchase price allocations as of the acquisition date, specifically related to definite lived intangible assets and deferred taxes. Any updates to the preliminary purchase price allocations identified in advance of the Company's third quarter Form 10-Q will be updated by management in conjunction with the Company filing its Form 10-Q with the Securities and Exchange Commission for the 2016 third quarter. Third Quarter Overview