Dawn Zier, President and CEO, said, “We are pleased with the continued progress of our turnaround. The year-over-year growth in acquisition revenues and customer starts across all channels for the quarter is a strong sign that our strategy is beginning to take hold. The sophisticated segmentation and targeting methodologies implemented over the past year not only attracted and reactivated more customers in the third quarter, but also increased length of stay and the corresponding lifetime value. And, the bottom line continues to reflect adjusted gross margin improvement as well as increased operating leverage."
The company is projecting fourth quarter earnings per share in the range
of ($0.02) to $0.02, and expects year-over-year revenue growth in the mid-single digits in the fourth quarter.
The following are financial highlights for the 3rd quarter ended Sept. 30, 2013:
* Revenues for the quarter were $85.4 million, an increase of 5% from revenues of %81.3 million in the 3rd quarter a year ago.
* Supplier dispute over a historical contract was settled, resulting in a one-time charge reducing gross margin by $5 million and earnings per share by $0.14.
* Adjusted operating income, which is defined as operating income excluding the one-time supplier dispute charge,
* Adjusted net income for the quarter was $4.3 million or $0.15 per share versus $2.9 million or $0.10 per share in the third quarter of 2012. Net income for the quarter was $356,000 or $0.01 per share.
* Cash, cash equivalents and short term investments were $41 million at Sept. 30, 2013.