New York / NY. (cbs) Crumbs Bake Shop Inc., the largest cupcake specialty store chain in the U.S., reported financial results for the year ended December 31, 2013.
Fourth Quarter 2013 Highlights as Compared to Fourth Quarter 2012:
- Net sales increased 5,4 percent to 11,4 million USD.
- Store operating weeks increased 32,4 percent to 973 from 735.
- Gross profit increased 5,3 percent to 6,0 million USD.
- GAAP net loss attributable to controlling and non-controlling interests was (5,8) million USD compared to a net loss attributable to controlling and non-controlling interests of (6,4) million USD.
- Adjusted Ebitda, a non GAAP measure, was (2,7) million USD compared to (1,8) million USD.
Edward M. Slezak, Chief Executive Officer, said «We have known for quite some time now that we needed to evolve our business model. During the fourth quarter we took the necessary steps to put ourselves in position to do just that. Our focus for 2014 will be on executing our initiatives and strategies of licensing our brand for complimentary product categories, positioning ourselves to move toward a franchise store model, and continuing to close under-performing stores. We believe these actions will put our business on a trajectory toward increased growth and vitality in the future».
Fourth Quarter 2013 Financial Results
Net sales increased 5,4 percent to 11,4 million USD from 10,8 million USD for the same period last year. Store operating weeks increased 32,4 percent to 973 from 735 for the fourth quarter of 2013 as compared to fourth quarter of 2012. Cost of sales was 5,3 million USD compared to 5,1 million USD for the same period last year and remained relatively flat at 47,1 percent as a percentage of net sales. Gross profit increased 5,3 percent to 6,0 million USD from 5,7 million USD for the fourth quarter of 2012. Staff expenses were 4,1 million USD compared to 5,4 million USD for the same period last year. Occupancy expenses were 3,0 million USD compared to 2,7 million USD for the fourth quarter of 2012. General and administrative expenses were 1,0 million USD, or 9,1 percent of net sales, compared to 0,9 million USD, or 8,6 percent of net sales, for the same period last year. Adjusted Ebitda was (2,7) million USD compared to (1,8) million USD for the fourth quarter of 2012. See financial tables for a reconciliation of adjusted Ebitda (earnings before interest, taxes, depreciation and amortization), a non-GAAP measure, to GAAP results. The GAAP net loss attributable to the controlling and non-controlling interests was (5,8) million USD compared to a net loss of (6,4) million USD for the fourth quarter of 2012.
Store Closings
While Crumbs opened one store in the fourth quarter of 2013, it closed nine under-performing stores in that same period. Year to date for 2014, Crumbs has closed an additional six under-performing stores. The Company hopes to complete the process of closing under-performing stores before the end of third quarter of 2014. The Company currently has 65 locations in twelve states and the District of Columbia.
