NEW YORK, Nov. 14, 2000 (PRIMEZONE) --iParty Corp. (AMEX:IPT), owners and operators of iParty.com, a premier destination for party goods and party planning and 33 iParty retail stores, today reported results for its third quarter 2000 and nine months ended September 30, 2000.
For the quarter, iParty Corp. reported consolidated revenues of $3.6 million from the Company's online website, www.iparty.com, and its retail stores, which were acquired during the third quarter 2000, from The Big Party chain of party supply retail stores. Revenues from the online division were $350,000, a 34% sequential increase over the second quarter. The Company reported a consolidated net loss of $3.6 million. Due to the Company's limited operating history, comparable results for the prior year are not meaningful. The weighted average number of common shares outstanding for the quarter were 11,136,107.
Sal Perisano, Chief Executive Officer of iParty Corp., commented, "iParty Corp. is continuing its evolution into a complete multi-channel retail provider. The acquired Big Party stores will be re-branded "iParty" by the end of the year, ultimately enabling iParty to cross promote its various distribution channels under a single brand name. Furthermore, this will allow us to offer additional products and services to our customers, while simultaneously providing iParty with a solid platform for revenue growth."
Commenting on the third quarter and future outlook, Mr. Perisano stated, "We have started to reduce the costs related to running our Internet business and we now plan to consolidate our divisions by relocating our New York office to Boston by year end. This move will allow us to leverage overheads and establish a clearer path-to-profitability. Additionally, we believe that the 33 retail stores will be cash flow positive on an operating basis in 2001 and the consolidated company will be cash flow positive on an operating basis by the fourth quarter 2002."
About iParty Corp.
Headquartered in New York City, iParty.com, owned and operated by iParty Corp. (AMEX:IPT), is a premier multi-channel party supply and party planning company that includes an online destination, offline national catalog and retail stores, that all make throwing a successful event both stress-free and fun. From over 11,000 party supplies and costumes to an online party magazine and party related content, iParty.com 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 get-togethers, graduation parties, summer barbecues, and, of course, Halloween. iParty.com offers reliable, time-tested knowledge of party-perfect trends, superior customer service and distribution 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, such as statements relating to 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 made by or on behalf of iParty Corp.
iPARTY CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the For the
Three months ended Nine months ended
September 30, September 30,
2000 1999 2000 1999
----------- ----------- ------------ -----------
Revenues $ 3,648,105 $ 4,257 $ 4,054,791 $ 4,257
----------- ----------- ------------ -----------
Operating costs:
Cost of
products sold 2,685,984 5,107 3,178,704 5,107
Amortization of
fulfillment
partner
warrant 377,744 379,262 1,133,233 379,262
Marketing and
sales 2,160,959 632,442 7,176,081 878,372
Product and
technology
development 1,068,973 399,143 4,510,562 893,466
General and
administrative 1,000,144 725,653 2,079,287 1,528,614
Loss resulting
from abandonment
of assets -- 92,924 -- 366,212
Non-cash
compensation
expense 88,777 531,900 723,733 761,303
----------- ----------- ------------ -----------
Operating loss (3,734,476) (2,762,174) (14,746,809) (4,808,079)
Interest income 144,039 41,141 644,172 42,688
Interest Expense (11,000) (763,463) (11,000) (1,004,452)
----------- ----------- ------------ -----------
Net loss before
income taxes (3,601,437) (3,484,496) (14,113,637) (5,769,843)
Provision for
income
taxes -- -- 84,784 --
----------- ----------- ------------ -----------
Net loss $(3,601,437) $(3,484,496) $(14,198,421) $(5,769,843)
=========== =========== ============ ===========
Loss per share:
Basic and
diluted $ (0.53) $ (1.72) $ (1.48) $ (1.93)
=========== =========== ============ ===========
Weighted Average
Shares Outstanding:
Basic and
diluted 11,136,107 11,005,691 11,114,326 11,005,691
=========== =========== ============ ===========
iPARTY CORP.
CONSOLIDATED BALANCE SHEET
(Unaudited)
September 30, December 31,
2000 1999
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 7,522,327 $ 18,673,304
Marketable securities -- 973,877
Inventory 6,315,000 --
Prepaid expenses and other
current assets 587,579 579,133
------------ ------------
Total current assets 14,424,906 20,226,314
Property and equipment, net 1,091,246 860,457
Intangible Assets 4,578,466 6,119,734
Other assets 213,961 50,245
------------ ------------
Total assets $ 20,308,579 $ 27,256,750
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,834,185 $ 1,749,806
Accrued expenses 1,348,247 452,876
------------ ------------
Total current liabilities 4,182,432 2,202,682
Other Liabilities:
Line of Credit 1,601,000 --
Deferred Payables 453,022 --
Commitments and contingencies -- --
------------ ------------
Total Liabilities 6,236,454 2,202,682
============ ============
Stockholders' Equity:
Preferred stock 3,672 2,395
Common stock 11,137 11,006
Additional paid in capital 64,080,855 58,616,431
Accumulated deficit (50,023,539) (33,575,764)
------------ ------------
Total stockholders' equity 14,072,125 25,054,068
------------ ------------
Total liabilities and
stockholders' equity $ 20,308,579 $ 27,256,750
============ ============