Crumbs Bake Shop reports smaller loss in quarter
NEW YORK — Sales increased for Crumbs Bake Shop, Inc. in the third quarter ended Sept. 30, but the cupcake specialty store chain still suffered a loss, and Hurricane Sandy, which hit Oct. 29, will affect fourth-quarter results.
Crumbs Bake Shop reported a loss before interest, taxes, depreciation and amortization of $1.2 million in the third quarter, which compared with a loss of $700,000 in the previous year’s third quarter. Net sales increased 12% to $9.9 million from $8.9 million.
“Our results for the third quarter were soft, but similar to our expectations,” said Julian R. Geiger, president and chief executive officer, when financial reports were given Nov. 13.
During and after Hurricane Sandy, Crumbs Bake Shop in total experienced about 230 fully or partially lost operating days across its 45 stores in New England, the Northeast and the Mid-Atlantic regions. With the exception of its store in Westport, Conn., there was no significant damage to any facilities. All locations had resumed normal operations by Nov. 11.
For the fourth quarter Crumbs now expects fourth-quarter total revenues to be about $2 million less than previously estimated. Revenues for fiscal year 2012 now are estimated to be about $44.5 million. The revision reflects the known and lingering effects of Hurricane Sandy, some delayed store openings and business trends.
Through the first nine months of the fiscal year, Crumbs Bake Shop reported a loss before interest, taxes, depreciation and amortization of $1.9 million, which compared with a loss of $110,000 in the same time period of the previous year. Nine-month sales increased to $32.3 million from $28.9 million.
Crumbs Bake Shop currently has 57 locations. In 2013 the company intends to open as many as 25 in-line mall-based stores and mall-based kiosks.
“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,” Mr. Geiger said.