Iparty (AMEX:IPT)
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iParty Corp. (AMEX: IPT
- news), a party goods
retailer that operates 51 iParty retail stores, today reported financial
results for its third quarter of fiscal year 2006, which ended on
September 30, 2006.
For the quarter, consolidated revenues were $17.2 million, a 16.2%
increase compared to $14.8 million for the third quarter of 2005. The
increase in third quarter revenues from the year-ago period was due to a
7.0% increase in comparable store sales from stores open more than one
year, sales from five stores that opened during the third quarter of
2005, as well as sales from one store that was acquired during the third
quarter 2006. Consolidated gross profit margin was 40.4% for the quarter
compared to a margin of 39.1% for the same period in 2005. Consolidated
net loss for the quarter was $1.5 million, or $0.07 per share, compared
to consolidated net loss of $2.4 million, or $0.11 per share, for the
third quarter in 2005. On a non-GAAP basis, net loss for the quarter
before interest, taxes, depreciation and amortization (“EBITDA”)
was $0.9 million compared to an EBITDA net loss of $2.0 million for the
third quarter in 2005. Net loss on an EBITDA basis is calculated as net
loss, as reported under United States generally accepted accounting
principles (“GAAP”),
plus net interest expense, plus depreciation and amortization. The
schedule accompanying this release provides the reconciliation of net
loss for the third quarters of 2006 and 2005 under GAAP to non-GAAP net
loss on an EBITDA basis.
For the nine-month year-to-date period, consolidated revenues were $49.4
million, a 10.9% increase compared to $44.5 million for the first nine
months of 2005. This year’s nine-month
year-to-date consolidated revenues included a 2.6% increase in
comparable store sales. Consolidated gross profit margin was 39.9% for
the nine-month period compared to 39.9% for the same period in 2005. For
the nine-month period, consolidated net loss was $3.5 million, or $0.16
per share, compared to consolidated net loss of $4.1 million, or $0.19
per share, for the same period in 2005. On a non-GAAP basis, EBITDA net
loss for the nine-month period was $2.0 million compared to an EBITDA
net loss of $3.0 million for the same period in 2005. Net loss on an
EBITDA basis is calculated as net loss, as reported under GAAP, plus net
interest expense, plus depreciation and amortization. The schedule
accompanying this release provides the reconciliation of net loss for
the nine-month periods in 2006 and 2005 under GAAP to net loss for the
same nine-month periods on a non-GAAP, EBITDA basis.
In addition, iParty today announced that pursuant to its Supply
Agreement with Amscan Inc., dated August 7, 2006, it had elected to
convert $1,143,896 of extended payables originally due to Amscan as of
August 8, 2006, and that it and Amscan had agreed to convert an
additional $675,477 of iParty payables due to Amscan as of September 28,
2006 into a single subordinated promissory note in the total principal
amount of $1,819,373. The note will bear interest at the rate of 11.0%
per annum and will be payable in thirty-six (36) equal monthly
installments of principal and interest of $59,562.48 commencing on
November 1, 2006, and on the first day of each month thereafter until
October 1, 2009, when the entire remaining principal balance and all
accrued interest shall be due and payable.
Sal Perisano, Chairman and Chief Executive Officer of iParty Corp.,
commented, “We made significant progress in
the third quarter in a number of key areas which contributed to the
improvement in our overall performance. First, we acquired a high volume
store from Party City that performed very well for us in the third
quarter. Second, we realized a 7.0% increase in comparable store sales
that reflects our continued efforts to increase same store sales. Third,
we realized a higher gross profit margin as a percentage of sales and
lower general and administrative expenses. All of this resulted in a
$1.5 million net loss for the third quarter, which is $0.9 million
improvement over last year’s third quarter net
loss.”
Mr. Perisano further commented, “We plan to
continue to increase our comparable store sales and control expenses in
the fourth quarter which includes our Halloween season sales which is
our single most important sales period.”
About iParty Corp.
Headquartered in Dedham, Massachusetts, iParty Corp. (AMEX: IPT
- news) is a party goods
retailer that operates 51 iParty retail stores and licenses the
operation of an Internet site for party goods and party planning at www.iparty.com.
iParty’s aim is to make throwing a successful
event both stress-free and fun. With over 20,000 party supplies and
costumes and an online party magazine and party-related content, iParty
offers consumers a sophisticated, yet fun and easy-to-use, resource with
an extensive assortment of products to customize any party, including
birthday bashes, Easter get-togethers, graduation parties, summer
barbecues, and, of course, Halloween. iParty aims to offer 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.
Non-GAAP Financial Measures
Regulation G, “Conditions for Use of Non-GAAP
Financial Measures,” prescribes the
conditions for use of non-GAAP financial information in public
disclosures. For purposes of Regulation G, a non-GAAP financial measure
is a numerical measure of a company’s
historical or future financial performance, financial position or cash
flows that excludes amounts, or is subject to adjustments that have the
effect of excluding amounts, that are included in the most directly
comparable measure calculated and presented in accordance with GAAP in
the statements of operations, balance sheets, or statement of cash flows
of the company; or includes amounts, or is subject to adjustments that
have the effect of including amounts, that are excluded from the most
directly comparable measure so calculated and presented. Pursuant to the
requirements of Regulation G, we have provided reconciliations of any
non-GAAP financial measures we use to the most directly comparable GAAP
financial measures. We believe that our presentation of EBITDA, which is
a non-GAAP financial measure, is an important supplemental measure of
operating performance to investors. The discussion below defines this
term, why we believe it is a useful measure of our performance, and
explains certain limitations on the use of non-GAAP financial measures
such as our use of EBITDA.
EBITDA
Earnings before interest, taxes, depreciation and amortization (“EBITDA”)
is a commonly used measure of performance in our industry which we
believe, when considered with measures calculated in accordance with
United States generally accepted accounting principles (“GAAP”),
gives investors a more complete understanding of operating results
before the impact of investing and financing transactions and income
taxes and facilitates comparisons between us and our competitors. EBITDA
is a non-GAAP financial measure and has been presented in this release
because our management and the audit committee of our board of directors
use this financial measure in monitoring and evaluating our ongoing
financial results and trends. Our management and audit committee believe
that this non-GAAP operating performance measure is useful for investors
because it enhances investors’ ability to
analyze trends in our business and compare our financial and operating
performance to that of our peers.
Limitations on the Use of Non-GAAP
Measures
The use of EBITDA has certain limitations. Our presentation of EBITDA
may be different from the presentation used by other companies and
therefore comparability may be limited. Depreciation expense for various
long-term assets, interest expense, income taxes and other items have
been and will be incurred and are not reflected in the presentation of
EBITDA. Each of these items should also be considered in the overall
evaluation of our results. Additionally, EBITDA does not consider
capital expenditures and other investing activities and should not be
considered as a measure of our liquidity. In particular, we have opened
new stores through the expenditure of large amounts of capital funded
with borrowings under our bank line of credit. Our results of
operations, therefore, reflect significant charges for depreciation,
amortization and interest expense. EBITDA, which excludes these
expenses, provides helpful information about the operating performance
of our business, but EBITDA does not purport to represent operating
income (loss) or cash flow from operating activities, as those terms are
defined under GAAP, and should not be considered as an alternative to
those measurements as an indicator of our performance.
Accordingly, EBITDA should be used in addition to and in conjunction
with results presented in accordance with GAAP and should not be
considered as an alternative to net income, operating income, or any
other operating performance measure prescribed by GAAP, nor should these
measures be relied upon to the exclusion of GAAP financial
measures. EBITDA reflects additional ways of viewing our operations that
we believe, when viewed with our GAAP results and the reconciliations to
the corresponding GAAP financial measures, provide a more complete
understanding of factors and trends affecting our business than could be
obtained absent this disclosure. We strongly encourage investors to
review our financial information in its entirety and not to rely on a
single financial measure.
RECONCILIATION OF NON-GAAP MEASURES
For the quarter ended
For the nine months ended
Sep 30, 2006
Sep 24, 2005
Sep 30, 2006
Sep 24, 2005
Net loss, as reported under GAAP
$
(1,472,328)
$
(2,410,661)
$
(3,508,753)
$
(4,122,552)
plus, Interest expense, net
222,285
150,960
549,806
382,540
plus, Depreciation and amortization
360,159
293,473
938,038
785,693
EBITDA, non-GAAP
$
(889,884)
$
(1,966,228)
$
(2,020,909)
$
(2,954,319)
Safe harbor statement under the Private Securities Litigation
Reform Act of 1995: This release contains forward-looking
statements that are based on our current expectations, beliefs,
assumptions, estimates, forecasts and projections, including those about
future store openings, future expectations of comparable store sales
growth, improved gross margins, profitability and the industry and
markets in which iParty operates. The statements contained in this
release are not guarantees of future performance and involve certain
risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially from what
is expressed in such forward-looking statements, and such statements
should not be relied upon as representing iParty’s
expectations or beliefs as of any date subsequent to the date of this
press release. Important factors that may affect future operating
results include, but are not limited to, economic and other developments
such as unseasonable weather, that affect consumer confidence or
consumer spending patterns, particularly those impacting the New England
region, where 46 of our 51 stores our located, and particularly during
the Halloween season, which is our single most important season; intense
competition from other party supply stores and stores that merchandise
and market party supplies, including big discount retailers, dollar
store chains, and temporary Halloween merchandisers; the failure of any
of our systems, including, without limitation, our newly-installed
point-of-sale system and our existing merchandise management system, the
latter of which was developed by a vendor who is no longer in business
and which we are considering replacing in 2007; the success or failure
of our efforts to implement our business growth and marketing
strategies; our inability to obtain additional financing, if required,
on terms and conditions acceptable to us; rising oil and gas prices
which impact prices of petroleum-based/plastic products, which are a key
raw material in much of our merchandise, affect our freight costs and
those of our suppliers, and affect consumer confidence and spending
patterns; third-party suppliers’ failure to
fulfill their obligations to us; our ability or inability to meet our
material contractual obligations with third parties; the availability of
retail store space on reasonable lease terms; compliance with evolving
federal securities, accounting, and stock exchange rules and regulations
applicable to publicly-traded companies listed on the American Stock
Exchange. For a discussion of these and other risks and uncertainties
which could cause actual results to differ from those contained in the
forward-looking statements, see Item 1A, “Risk
Factors” of iParty’s
most recently filed Annual Report on Form 10-K for the fiscal year ended
December 31, 2005, and its subsequently filed Quarterly Reports on Form
10-Q.
iPARTY CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended
For the nine months ended
Sep 30, 2006
Sep 24, 2005
Sep 30, 2006
Sep 24, 2005
Revenues
$
17,240,535
$
14,839,051
$
49,373,503
$
44,516,336
Operating costs:
Cost of products sold
10,266,805
9,042,165
29,662,875
26,752,342
Marketing and sales
6,583,780
6,204,540
17,931,894
16,316,817
General and administrative
1,639,993
1,852,047
4,737,681
5,187,189
Operating loss
(1,250,043)
(2,259,701)
(2,958,947)
(3,740,012)
Interest expense, net
(222,285)
(150,960)
(549,806)
(382,540)
Net loss
$
(1,472,328)
$
(2,410,661)
$
(3,508,753)
$
(4,122,552)
Loss per share:
Basic and diluted
$
(0.07)
$
(0.11)
$
(0.16)
$
(0.19)
Weighted-average shares outstanding:
Basic and diluted
22,555,333
22,147,063
22,549,026
22,123,289
iPARTY CORP.
CONSOLIDATED BALANCE SHEETS
Sep 30, 2006
Dec 31, 2005
ASSETS
Current assets:
Cash and cash equivalents
$
1,045,214
$
699,194
Restricted cash
797,428
651,617
Accounts receivable
971,586
1,246,545
Inventory, net
16,775,354
13,251,307
Prepaid expenses and other assets
2,103,304
548,114
Total current assets
21,692,886
16,396,777
Property and equipment, net
4,831,461
5,187,099
Intangible assets, net
2,267,986
-
Other assets
105,646
133,200
Total assets
$
28,897,979
$
21,717,076
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
11,622,217
$
4,695,094
Accrued expenses
2,844,659
2,532,238
Current portion of capital lease obligations
449,311
442,358
Current notes payable
541,514
-
Borrowings under line of credit
5,306,358
6,635,874
Total current liabilities
20,764,059
14,305,564
Long-term liabilities:
Capital lease obligations, net of current portion
65,867
426,995
Notes payable
3,781,254
-
Other liabilities
836,058
669,003
Total long-term liabilities
4,683,179
1,095,998
Commitments and contingencies
Convertible preferred stock
13,808,650
13,816,101
Common stock
22,564
22,537
Additional paid-in capital
51,623,060
50,971,656
Accumulated deficit
(62,003,533)
(58,494,780)
Total stockholders' equity
3,450,741
6,315,514
Total liabilities and stockholders' equity
$
28,897,979
$
21,717,076
iParty Corp. (AMEX: IPT - news), a party goods retailer that
operates 51 iParty retail stores, today reported financial results for
its third quarter of fiscal year 2006, which ended on September 30,
2006.
For the quarter, consolidated revenues were $17.2 million, a 16.2%
increase compared to $14.8 million for the third quarter of 2005. The
increase in third quarter revenues from the year-ago period was due to
a 7.0% increase in comparable store sales from stores open more than
one year, sales from five stores that opened during the third quarter
of 2005, as well as sales from one store that was acquired during the
third quarter 2006. Consolidated gross profit margin was 40.4% for the
quarter compared to a margin of 39.1% for the same period in 2005.
Consolidated net loss for the quarter was $1.5 million, or $0.07 per
share, compared to consolidated net loss of $2.4 million, or $0.11 per
share, for the third quarter in 2005. On a non-GAAP basis, net loss
for the quarter before interest, taxes, depreciation and amortization
("EBITDA") was $0.9 million compared to an EBITDA net loss of $2.0
million for the third quarter in 2005. Net loss on an EBITDA basis is
calculated as net loss, as reported under United States generally
accepted accounting principles ("GAAP"), plus net interest expense,
plus depreciation and amortization. The schedule accompanying this
release provides the reconciliation of net loss for the third quarters
of 2006 and 2005 under GAAP to non-GAAP net loss on an EBITDA basis.
For the nine-month year-to-date period, consolidated revenues were
$49.4 million, a 10.9% increase compared to $44.5 million for the
first nine months of 2005. This year's nine-month year-to-date
consolidated revenues included a 2.6% increase in comparable store
sales. Consolidated gross profit margin was 39.9% for the nine-month
period compared to 39.9% for the same period in 2005. For the
nine-month period, consolidated net loss was $3.5 million, or $0.16
per share, compared to consolidated net loss of $4.1 million, or $0.19
per share, for the same period in 2005. On a non-GAAP basis, EBITDA
net loss for the nine-month period was $2.0 million compared to an
EBITDA net loss of $3.0 million for the same period in 2005. Net loss
on an EBITDA basis is calculated as net loss, as reported under GAAP,
plus net interest expense, plus depreciation and amortization. The
schedule accompanying this release provides the reconciliation of net
loss for the nine-month periods in 2006 and 2005 under GAAP to net
loss for the same nine-month periods on a non-GAAP, EBITDA basis.
In addition, iParty today announced that pursuant to its Supply
Agreement with Amscan Inc., dated August 7, 2006, it had elected to
convert $1,143,896 of extended payables originally due to Amscan as of
August 8, 2006, and that it and Amscan had agreed to convert an
additional $675,477 of iParty payables due to Amscan as of September
28, 2006 into a single subordinated promissory note in the total
principal amount of $1,819,373. The note will bear interest at the
rate of 11.0% per annum and will be payable in thirty-six (36) equal
monthly installments of principal and interest of $59,562.48
commencing on November 1, 2006, and on the first day of each month
thereafter until October 1, 2009, when the entire remaining principal
balance and all accrued interest shall be due and payable.
Sal Perisano, Chairman and Chief Executive Officer of iParty
Corp., commented, "We made significant progress in the third quarter
in a number of key areas which contributed to the improvement in our
overall performance. First, we acquired a high volume store from Party
City that performed very well for us in the third quarter. Second, we
realized a 7.0% increase in comparable store sales that reflects our
continued efforts to increase same store sales. Third, we realized a
higher gross profit margin as a percentage of sales and lower general
and administrative expenses. All of this resulted in a $1.5 million
net loss for the third quarter, which is $0.9 million improvement over
last year's third quarter net loss."
Mr. Perisano further commented, "We plan to continue to increase
our comparable store sales and control expenses in the fourth quarter
which includes our Halloween season sales which is our single most
important sales period."
About iParty Corp.
Headquartered in Dedham, Massachusetts, iParty Corp. (AMEX: IPT -
news) is a party goods retailer that operates 51 iParty retail stores
and licenses the operation of an Internet site for party goods and
party planning at www.iparty.com. iParty's aim is to make throwing a
successful event both stress-free and fun. With over 20,000 party
supplies and costumes and an online party magazine and party-related
content, iParty offers consumers a sophisticated, yet fun and
easy-to-use, resource with an extensive assortment of products to
customize any party, including birthday bashes, Easter get-togethers,
graduation parties, summer barbecues, and, of course, Halloween.
iParty aims to offer 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.
Non-GAAP Financial Measures
Regulation G, "Conditions for Use of Non-GAAP Financial Measures,"
prescribes the conditions for use of non-GAAP financial information in
public disclosures. For purposes of Regulation G, a non-GAAP financial
measure is a numerical measure of a company's historical or future
financial performance, financial position or cash flows that excludes
amounts, or is subject to adjustments that have the effect of
excluding amounts, that are included in the most directly comparable
measure calculated and presented in accordance with GAAP in the
statements of operations, balance sheets, or statement of cash flows
of the company; or includes amounts, or is subject to adjustments that
have the effect of including amounts, that are excluded from the most
directly comparable measure so calculated and presented. Pursuant to
the requirements of Regulation G, we have provided reconciliations of
any non-GAAP financial measures we use to the most directly comparable
GAAP financial measures. We believe that our presentation of EBITDA,
which is a non-GAAP financial measure, is an important supplemental
measure of operating performance to investors. The discussion below
defines this term, why we believe it is a useful measure of our
performance, and explains certain limitations on the use of non-GAAP
financial measures such as our use of EBITDA.
EBITDA
Earnings before interest, taxes, depreciation and amortization
("EBITDA") is a commonly used measure of performance in our industry
which we believe, when considered with measures calculated in
accordance with United States generally accepted accounting principles
("GAAP"), gives investors a more complete understanding of operating
results before the impact of investing and financing transactions and
income taxes and facilitates comparisons between us and our
competitors. EBITDA is a non-GAAP financial measure and has been
presented in this release because our management and the audit
committee of our board of directors use this financial measure in
monitoring and evaluating our ongoing financial results and trends.
Our management and audit committee believe that this non-GAAP
operating performance measure is useful for investors because it
enhances investors' ability to analyze trends in our business and
compare our financial and operating performance to that of our peers.
Limitations on the Use of Non-GAAP Measures
The use of EBITDA has certain limitations. Our presentation of
EBITDA may be different from the presentation used by other companies
and therefore comparability may be limited. Depreciation expense for
various long-term assets, interest expense, income taxes and other
items have been and will be incurred and are not reflected in the
presentation of EBITDA. Each of these items should also be considered
in the overall evaluation of our results. Additionally, EBITDA does
not consider capital expenditures and other investing activities and
should not be considered as a measure of our liquidity. In particular,
we have opened new stores through the expenditure of large amounts of
capital funded with borrowings under our bank line of credit. Our
results of operations, therefore, reflect significant charges for
depreciation, amortization and interest expense. EBITDA, which
excludes these expenses, provides helpful information about the
operating performance of our business, but EBITDA does not purport to
represent operating income (loss) or cash flow from operating
activities, as those terms are defined under GAAP, and should not be
considered as an alternative to those measurements as an indicator of
our performance.
Accordingly, EBITDA should be used in addition to and in
conjunction with results presented in accordance with GAAP and should
not be considered as an alternative to net income, operating income,
or any other operating performance measure prescribed by GAAP, nor
should these measures be relied upon to the exclusion of GAAP
financial measures. EBITDA reflects additional ways of viewing our
operations that we believe, when viewed with our GAAP results and the
reconciliations to the corresponding GAAP financial measures, provide
a more complete understanding of factors and trends affecting our
business than could be obtained absent this disclosure. We strongly
encourage investors to review our financial information in its
entirety and not to rely on a single financial measure.
-0-
*T
RECONCILIATION OF NON-GAAP MEASURES
For the quarter ended For the nine months ended
------------------------- -------------------------
Sep 30, 2006 Sep 24, 2005 Sep 30, 2006 Sep 24, 2005
------------ ------------ ------------ ------------
Net loss, as
reported under
GAAP $(1,472,328) $(2,410,661) $(3,508,753) $(4,122,552)
plus, Interest
expense, net 222,285 150,960 549,806 382,540
plus, Depreciation
and amortization 360,159 293,473 938,038 785,693
------------ ------------ ------------ ------------
EBITDA, non-GAAP $ (889,884) $(1,966,228) $(2,020,909) $(2,954,319)
============ ============ ============ ============
*T
Safe harbor statement under the Private Securities Litigation
Reform Act of 1995: This release contains forward-looking statements
that are based on our current expectations, beliefs, assumptions,
estimates, forecasts and projections, including those about future
store openings, future expectations of comparable store sales growth,
improved gross margins, profitability and the industry and markets in
which iParty operates. The statements contained in this release are
not guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially from what
is expressed in such forward-looking statements, and such statements
should not be relied upon as representing iParty's expectations or
beliefs as of any date subsequent to the date of this press release.
Important factors that may affect future operating results include,
but are not limited to, economic and other developments such as
unseasonable weather, that affect consumer confidence or consumer
spending patterns, particularly those impacting the New England
region, where 46 of our 51 stores our located, and particularly during
the Halloween season, which is our single most important season;
intense competition from other party supply stores and stores that
merchandise and market party supplies, including big discount
retailers, dollar store chains, and temporary Halloween merchandisers;
the failure of any of our systems, including, without limitation, our
newly-installed point-of-sale system and our existing merchandise
management system, the latter of which was developed by a vendor who
is no longer in business and which we are considering replacing in
2007; the success or failure of our efforts to implement our business
growth and marketing strategies; our inability to obtain additional
financing, if required, on terms and conditions acceptable to us;
rising oil and gas prices which impact prices of
petroleum-based/plastic products, which are a key raw material in much
of our merchandise, affect our freight costs and those of our
suppliers, and affect consumer confidence and spending patterns;
third-party suppliers' failure to fulfill their obligations to us; our
ability or inability to meet our material contractual obligations with
third parties; the availability of retail store space on reasonable
lease terms; compliance with evolving federal securities, accounting,
and stock exchange rules and regulations applicable to publicly-traded
companies listed on the American Stock Exchange. For a discussion of
these and other risks and uncertainties which could cause actual
results to differ from those contained in the forward-looking
statements, see Item 1A, "Risk Factors" of iParty's most recently
filed Annual Report on Form 10-K for the fiscal year ended December
31, 2005, and its subsequently filed Quarterly Reports on Form 10-Q.
-0-
*T
iPARTY CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended For the nine months ended
-------------------------- -------------------------
Sep 30, 2006 Sep 24, 2005 Sep 30, 2006 Sep 24, 2005
------------- ------------ ------------ ------------
Revenues $ 17,240,535 $14,839,051 $49,373,503 $44,516,336
Operating costs:
Cost of products
sold 10,266,805 9,042,165 29,662,875 26,752,342
Marketing and
sales 6,583,780 6,204,540 17,931,894 16,316,817
General and
administrative 1,639,993 1,852,047 4,737,681 5,187,189
------------- ------------ ------------ ------------
Operating loss (1,250,043) (2,259,701) (2,958,947) (3,740,012)
Interest expense,
net (222,285) (150,960) (549,806) (382,540)
------------- ------------ ------------ ------------
Net loss $ (1,472,328) $(2,410,661) $(3,508,753) $(4,122,552)
============= ============ ============ ============
Loss per share:
Basic and
diluted $ (0.07) $ (0.11) $ (0.16) $ (0.19)
============= ============ ============ ============
Weighted-average
shares
outstanding:
Basic and
diluted 22,555,333 22,147,063 22,549,026 22,123,289
============= ============ ============ ============
*T
-0-
*T
iPARTY CORP.
CONSOLIDATED BALANCE SHEETS
Sep 30, 2006 Dec 31, 2005
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 1,045,214 $ 699,194
Restricted cash 797,428 651,617
Accounts receivable 971,586 1,246,545
Inventory, net 16,775,354 13,251,307
Prepaid expenses and other assets 2,103,304 548,114
------------- -------------
Total current assets 21,692,886 16,396,777
Property and equipment, net 4,831,461 5,187,099
Intangible assets, net 2,267,986 -
Other assets 105,646 133,200
------------- -------------
Total assets $ 28,897,979 $ 21,717,076
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 11,622,217 $ 4,695,094
Accrued expenses 2,844,659 2,532,238
Current portion of capital lease
obligations 449,311 442,358
Current notes payable 541,514 -
Borrowings under line of credit 5,306,358 6,635,874
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Total current liabilities 20,764,059 14,305,564
Long-term liabilities:
Capital lease obligations, net of
current portion 65,867 426,995
Notes payable 3,781,254 -
Other liabilities 836,058 669,003
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Total long-term liabilities 4,683,179 1,095,998
Commitments and contingencies
Convertible preferred stock 13,808,650 13,816,101
Common stock 22,564 22,537
Additional paid-in capital 51,623,060 50,971,656
Accumulated deficit (62,003,533) (58,494,780)
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Total stockholders' equity 3,450,741 6,315,514
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Total liabilities and stockholders' equity $ 28,897,979 $ 21,717,076
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*T