iParty Corp. Reports Q4 Net Profit, 14% Same Store Sales Increase.Business EditorsBOSTON--(BUSINESS WIRE)--Feb. 28, 2002 iParty Corp. (AMEX AMEX See: American Stock Exchange : IPT IPT - IP Telephony ), the nation's premier multi-channel See multichannel. retailer for party goods with 33 iParty retail stores and iParty.com, a destination site for party goods and party planning, today reported financial results for its fourth quarter and fiscal year 2001. For the quarter, iParty Corp. reported consolidated revenues of $16.4 million from the Company's retail stores and its online website, www.iparty.com, compared to $14.6 million for the fourth quarter of 2000. The Company reported consolidated net income of $464,000 or $0.03 per share compared to a consolidated net loss of $6.7 million or $0.56 per share for the fourth quarter of 2000. Consolidated gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. for the quarter was 40.9% compared to a margin of 41.3% for the fourth quarter of 2000. The number of common shares outstanding at December December: see month. 29, 2001 was 15,122,675. For the year ended December 29, 2001, iParty Corp. reported consolidated revenues of $48.0 million from the Company's retail stores and its online website, www.iparty.com, compared to $18.6 million for 2000. iParty Corp. acquired its retail stores in the third quarter of 2000. The Company reported a consolidated net loss of $2.4 million or $0.18 per share compared to a consolidated net loss of $20.9 million or $2.05 per share for 2000. Consolidated gross profit margin for the year was 39.6% compared to a margin of 37.0% for 2000. Sal Perisano, Chief Executive Officer of iParty Corp., commented, "Last year was the turning point for iParty Corp. and we are very proud of these results. Achieving a 14% same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of increase in the last thirteen weeks of the year compared to the same period last year in this difficult retail environment is a tremendous vote of confidence from our customers. We feel that this sales increase was the result of improvements to our product assortment assortment /as·sort·ment/ (ah-sort´ment) the random distribution of nonhomologous chromosomes to daughter cells in metaphase of the first meiotic division. as·sort·ment n. , customer service and marketing. It is also obvious that we are benefiting from the so-called so-called adj. 1. Commonly called: "new buildings ... in so-called modern style" Graham Greene. 2. cocooning co·coon·ing n. Retreat into the seclusion of one's own home during leisure time, as for privacy or escape: "The harassments of daily life effect where families are placing a renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. emphasis on the home and the celebration of life's milestones. "We are also very pleased with our net profit for the quarter. Throughout the year, we made continual efforts to streamline streamline, path of a fluid flowing steadily and without appreciable turbulence. A body is said to be streamlined if its shape offers the least possible resistance to a current of air, water, or other fluid. operations, manage inventory levels and control expenses and we are now starting to see the benefit of those efforts fall to the bottom line. Although there was a slight decrease in margin for the fourth quarter compared to the fourth quarter of 2000, we have been able to realize progressively better pricing from our vendors which will result in better margins next year. "Looking ahead to 2002, we are confident that we will continue to see healthy increases in same store sales. We are also on track to open at least two new stores with internally generated funds. The first new store, located in Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. , is scheduled to open by the end of March. In 2002, we expect to be cash flow neutral for the year. We will continue to find ways to reduce our expenses, improve supply chain management and increase our margins. We are also encouraged by the fact that year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. sales have exceeded our expectations." About iParty Corp. Headquartered in Boston, Massachusetts “Boston” redirects here. For other uses, see Boston (disambiguation). Boston is the capital and most populous city of Massachusetts.[3] The largest city in New England, Boston is considered the unofficial economic and cultural center of the entire New , iParty Corp. (AMEX: IPT), is a premier multi-channel party supply and party planning company that includes 33 iParty retail stores and iParty.com, an online destination, that makes throwing a successful event both stress-free and fun. From over 20,000 party supplies and costumes to an online party magazine and party related content, iParty offers consumers a sophisticated yet fun and easy-to-use resource with a definitive assortment of products to customize any party, including birthday bashes, Easter Easter [A.S. Eastre, name of a spring goddess], chief Christian feast, commemorating the resurrection of Jesus after his crucifixion. In the West, Easter is celebrated on the Sunday following the full moon next after the vernal equinox (see calendar); thus, it get-togethers, graduation Graduation is the action of receiving or conferring an academic degree or the associated ceremony. The date of event is often called degree day. The event itself is also called commencement, convocation or invocation. parties, summer barbecues, and, of course, Halloween Halloween (hăl'əwēn`, häl'–), Oct. 31, the eve of All Saints' Day, observed with traditional games and customs. The word comes from medieval England's All Hallows' eve (Old Eng. hallow="saint"). . iParty offers reliable, time-tested knowledge of party-perfect trends, and superior customer service to ensure convenient and comprehensive merchandise selections for every occasion. Please visit our site at www.iparty.com. Certain information included in this news release (as well as information included in oral statements or other written statements made or to be made by iParty.com) contains statements that are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. , such as statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc anticipated future revenues of the company and the success of current product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made by or on behalf of iParty Corp.
iPARTY CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended For the year ended
Dec. 29, Dec. 30, Dec. 29, Dec. 30,
2001 2000 2001 2000
Revenues $ 16,429,653 $ 14,565,140 $ 47,983,404 $ 18,619,877
Operating costs:
Cost of products
sold 9,714,649 8,555,307 28,966,573 11,734,011
Amortization of
partner warrant -- 3,399,698 -- 4,532,930
Marketing and
sales 4,561,028 5,912,138 14,843,500 13,058,710
Product and technology
development 595,218 548,096 2,134,390 5,173,828
General and
administrative 899,621 1,647,347 3,762,617 3,725,704
Restructuring
expenses (18,794) 1,093,328 (141,328) 1,093,328
Loss resulting
from abandonment
of assets -- 5,784 -- 5,784
Non-cash compensation
expense 35,255 88,777 320,373 812,510
Operating
profit/(loss) 642,676 (6,685,335) (1,902,721) (21,516,928)
Interest income 7,209 88,991 117,431 733,163
Interest expense (186,078) (138,346) (651,016) (149,346)
Net income/(loss) $ 463,807 $ (6,734,690) $ (2,436,306)$ (20,933,111)
Loss per share:
Basic $ 0.03 $ (0.56) $ (0.18) $ (2.05)
Diluted $ 0.01 $ (0.56) $ (0.18) $ (2.05)
Weighted average shares outstanding:
Basic 14,323,955 11,944,365 13,411,866 11,321,578
Diluted 37,952,755 11,944,365 13,411,866 11,321,578
iPARTY CORP.
CONSOLIDATED BALANCE SHEETS
December 29, December 30,
ASSETS 2001 2000
Current assets:
Cash and cash equivalents $ 2,399,084 $ 5,002,254
Cash, restricted 667,957 635,000
Accounts receivable 541,703 948,292
Inventory 9,282,852 8,226,560
Prepaid expenses and other
current assets 337,997 69,812
Total current assets 13,229,593 14,881,918
Property and equipment, net 979,042 903,849
Other assets 324,583 557,286
Total assets $ 14,533,218 $ 16,343,053
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,636,160 $ 2,415,679
Accrued expenses 2,396,760 3,209,617
Line of credit 3,354,977 2,800,790
Total current liabilities 8,387,897 8,426,086
Long-term liabilities 836,752 492,465
Total liabilities 9,224,649 8,918,551
Commitments and contingencies
Stockholders' equity:
Preferred stock 3,274 3,569
Common stock 15,123 12,175
Additional paid in capital 64,484,707 64,166,987
Accumulated deficit (59,194,535) (56,758,229)
Total stockholders' equity 5,308,569 7,424,502
Total liabilities and
stockholders' equity $ 14,533,218 $ 16,343,053
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