iParty Corp. (IPT) Releases Third Quarter 2012 Financial Results

iParty, a party goods retailer, reported financial results for its third quarter of fiscal year 2012, which ended on September 29, 2012. Third Quarter 2012 highlights include:

• Consolidated revenues of $16.9 million for the third quarter of 2012, which is a 2.6% increase compared to the third quarter of 2011.
• Comparable store sales increase of 1.2% for the third quarter of 2012, and 2.9% for the nine month period then ended, as compared to the applicable prior year periods.
• Consolidated net loss for the third quarter of 2012 was $2.2 million, or $0.09 per basic and diluted share, compared to consolidated net loss of $2.8 million, or $0.12 per basic and diluted share, for the third quarter in 2011.
• Adjusted EBITDA net loss for the third quarter of 2012 of $1.8 million, compared to Adjusted EBITDA net loss in the third quarter of 2011 of $2.0 million, on a non-GAAP basis.
• The opening of one new full line party store in August and one new full line party store immediately after the close of the third quarter.

Operating Results

In addition to the highlights above, consolidated gross profit margin was 34.8% for the third quarter of 2012 compared to a gross profit margin of 34.3% for the same period in 2011. Adjusted EBITDA net loss, which adjusts the EBITDA net loss for the effect in 2011 of the Tropical Storm Irene flood loss, was $1.8 million, compared to $2.0 million in the third quarter of 2011.

As for the nine-month year-to-date period ended September 29, 2012:

• Consolidated revenues were $52.2 million, a 2.0% increase compared to $51.2 million for the first nine months of 2011. Consolidated revenues for the first nine months of 2012 included a 2.9% increase in comparable store sales from the year-ago period.
• Consolidated gross profit margin was 36.6% for the first nine months of 2012, compared to 37.0% for the comparable period in 2011.
• Consolidated net loss was $3.3 million, or $0.14 per basic and diluted share, compared to a consolidated net loss of $4.3 million, or $0.18 per basic and diluted share for the first nine months of 2011.
• EBITDA net loss was $2.2 million compared to an EBITDA net loss of $2.9 million for the first nine months of 2011 on a non-GAAP basis.

Sal Perisano, iParty’s Chairman and Chief Executive Officer, stated, “Historically our third quarter is a loss quarter as we prepare for the Halloween and holiday seasons. We are however pleased with the trends for the quarter which reflect an overall improvement in our business. Our sales, margins and operating expenses were all well within our expectations and our year to date net loss through the third quarter improved by approximately $1 million compared to last year. With our two new store fronts and what we believe to be a strong group of temporary Halloween stores, we have 64 storefronts open this Halloween, leaving us very well positioned entering into the all-important Halloween season and fourth quarter.”

iParty Corp., headquartered in Dedham, Massachusetts, is a party goods retailer that operates 54 iParty retail stores in New England and Florida, as well as an internet site for costume and related goods and party planning. iParty offers consumers a sophisticated, fun, and easy-to-use resource to help customize any party from birthday bashes to summer barbecues.

For more information, please visit www.iparty.com

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