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Fourth Quarter 2013 Highlights as Compared to Fourth Quarter 2012 Highlights:
Fourth Quarter 2013 Financial Results
Net sales increased 5.4% to
Cost of sales was
Staff expenses were
Occupancy expenses were
General and administrative expenses were
Adjusted EBITDA was
The GAAP net loss attributable to the controlling and non-controlling interests was
Store Closings
While Crumbs opened one store in the fourth quarter of 2013, it closed 9 underperforming stores in that same period. Year to date for 2014, Crumbs has closed an additional 6 underperforming stores. The Company hopes to complete the process of closing under-performing stores before the end of third quarter of 2014.
Earnings Call
Crumbs will host an earnings call to discuss fourth quarter 2013 financial results on
The conference call can be accessed live over the phone by dialing 877-407-4018 or for international callers by dialing 201-689-8471. 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 13578545. The replay will be available until
The call will also be webcast live from the Company's Web site at www.crumbs.com under the Investor Relations/Events & Presentations section. An archived webcast will be available beginning approximately one hour after the end of the call.
About
The first Crumbs bake shop opened in
Forward Looking Statements
Some of the statements in this press release constitute forward-looking statements within the meaning of the federal securities laws. Words such as "anticipate," "expect," "project," "intend," "plan," "believe," "target," "aim," "will" and words and terms of similar substance and any financial projections used in connection with any discussion of future plans, strategies, objectives, actions, or events identify forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. These statements are based on the beliefs of our management as well as assumptions made by and information currently available to us and reflect our current views concerning future events. As such, they are subject to
risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, among many others: the risk that the businesses of
Non-GAAP Information
This press release includes certain numerical measures that are or may be considered "non-GAP financial measures" under the
The Company is providing Adjusted EBITDA information, which is defined as net income of the combined company, including net income attributable to any non-controlling interest, determined in accordance with all applicable and effective GAAP pronouncements up to
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Three Months Ended Years Ended 2013 2012 2013 2012 Net sales $ 11,352 $ 10,776 $ 47,203 $ 43,029 Cost of sales 5,349 5,076 21,707 19,059 Gross profit 6,003 5,700 25,496 23,970 Operating expenses Selling expenses 615 395 2,302 1,377 Staff expenses 4,183 5,447 16,368 15,517 Occupancy expenses 3,041 2,720 12,739 10,026 General and administrative 1,029 930 3,995 3,332 New store expenses 3 129 431 452 Depreciation and amortization 731 524 2,637 1,916 Loss on disposal of property and equipment 959 4 1,098 18 Loss on impairment of assets 1,322 1,869 1,322 1,869 11,883 12,018 40,892 34,507 Loss from operations (5,880) (6,318) (15,396) (10,537) Other income (expense) Interest expense (163) - (403) - Interest and other income 2 3 37 22 Abandoned projects (7) - (136) (111) Change in fair value of warrant liability 273 (109) 55 273 105 (106) (447) 184 Loss before income tax benefit (5,775) (6,424) (15,843) (10,353) Income tax benefit (expense) - - (2,386) 7 Net loss attributable to the controlling and non-controlling interests (5,775) (6,424) (18,229) (10,346) Less: Net loss attributable to non-controlling interest 933 1,063 2,968 2,651 Net loss attributable to stockholders $ (4,842) $ (5,361) $ (15,261) $ (7,695) Net loss per common share, basic and diluted $ (0.42) $ (0.49) $ (1.32) $ (1.12) Weighted average number of common shares outstanding, basic and diluted 11,631 10,908 11,600 6,864
CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) December 31, December 31, 2013 2012 ASSETS Current assets Cash $ 893 $ 6,270 Trade receivables 321 259 Inventories 418 559 Prepaid rent - 600 Other current assets 424 410 Total current assets 2,056 8,098 Property and equipment, net 14,598 13,128 Other assets Deferred tax asset - 4,774 Restricted certificates of deposit 673 673 Intangible assets, net 846 448 Capitalized lease costs 754 - Deposits 239 289 Debt issuance costs 838 477 Total other assets 3,350 6,661 $ 20,004 $ 27,887 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $ 3,785 $ 2,080 Payroll liabilities 365 357 Sales tax payable 182 110 Deferred licensing royalties 17 Gift cards and certificates outstanding 258 234 Total current liabilities 4,607 2,781 Long-term liabilities Deferred rent 4,066 3,791 Payable to related parties pursuant to tax receivable agreement - 2,387 Warrant liability 327 382 Convertible notes payable 10,000 - Total liabilities 19,000 9,341 Commitments and contingencies Stockholders' equity Preferred stock, 234 shares issued and outstanding at 390 shares issued and outstanding at - - Common stock, 13,392 shares issued, 11,798 outstanding at 7,100 shares issued, 5,506 outstanding at 1 1 Additional paid-in capital 39,805 39,117 Accumulated deficit (25,037) (9,776) Treasury stock, at cost (15,914) (15,914) (1,145) 13,428 Non-controlling interest 2,149 5,118 Total stockholders' equity 1,004 18,546 $ 20,004 $ 27,887
RECONCILIATION OF ADJUSTED EBITDA TO NEAREST COMPARABLE GAAP MEASURE (in thousands) Three Months Ended Years Ended 2013 2012 2013 2012 Net income (loss) attributed to the controlling and non-controlling interest $ (5,775) $ (6,424) $ (18,229) $ (10,346) Non-recurring expenses - - (20) - Stock-based compensation 107 1,974 523 2,256 Deferred rent 97 134 713 758 Depreciation and amortization 731 524 2,637 1,916 Loss on disposal of property and equipment 959 4 1,098 18 Loss on impairment of assets 1,322 1,869 1,322 1,869 Interest expense 163 - 403 - Interest income (1) - (5) (3) Abandoned projects 7 - 136 111 Change in fair value of warrant liability (273) 109 (55) (273) Income tax benefit - - 2,386 (7) Adjusted EBITDA $ (2,663) $ (1,810) $ (9,091) $ (3,701)
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