LuxeYard Reports Third Quarter 2012 Results
-Decrease in operating expenses with focus on profitable divisions moving forward-
-Chairman Amir Mireskandari appointed interim CEO by Board of Directors-
LOS ANGELES, Nov. 20, 2012 /PRNewswire/ -- Luxury style and living flash sale online retailer, LuxeYard, Inc., (OTCQB: LUXR)reported its results for the third quarter ended September 30, 2012, detailing a move towards greater operational efficiencies.
"LuxeYard's third quarter was pivotal for our future development," said LuxeYard, Inc. COO Jerry Wilkerson. "After evaluating the operating metrics of the company's numerous divisions, we have been able to refocus our efforts on those verticals which are both profitable and consistent with our core strengths. LuxeYard is dedicated to reducing our operational burn while increasing internal efficiencies to boost revenue, margins, and shareholder value."
Third Quarter 2012 Financial Results and Fourth Quarter 2012 Outlook
Total revenue for the third quarter was $574,381, a decrease of 19% from the prior quarter, due to the termination of our Management Service Agreements with Jaxon International, LLC and Ferris Holdings Co. Total Operating expenses were $3,247,076 million in Q3, compared to $7,622,999 in Q2, due primarily to decreased SG&A costs, which included expenses related to: payroll, advertising, and decreases in the fair market value of stock issued for services provided by various vendors. Additionally, the Company recognized $6.05 million in gains on derivatives, triggered by a decrease in the market value of its common shares, as required by GAAP. Giving effect to these items, net income was $3.59 million, equal to $(0.04) per diluted share.
The Company's third quarter 2012 was focused on improving internal efficiencies to reduce operational burn, while continuing to provide customers with access to a deep product-mix and a robust shopping experience. To this end, the Company enacted the following changes to further increase profitability:
- Reduced its workforce to decrease payroll liability
- Appointment of Amir Mireskandari (Chairman of LuxeYard, Inc. Board of Directors) as interim CEO
- Appointment of two new members to the Board of Directors
- Termination of Management Service Agreements, and related acquisition plans of unprofitable entities
- Shifting focus to Home Furnishings, Decor, Accessories, and Art
- Increasing product offerings within the home vertical by combining static categories and flash sale events
- Removal of membership requirement for retail consumer purchases
- Developing a high-end, private label LY Brand line of upholstery items to supplement the product-mix
- Expanding TradeYardUSA.com (B2B division) and the TradeYard brand
"We are confident LuxeYard will continue to attract customer sales within a saturated landscape by offering retail consumers high-quality, customizable items at competitive prices, along with our standard flash-sale events" added LuxeYard, Inc. COO Jerry Wilkerson. "Moreover, we are also excited about expanding the company's B2B division, TradeYard, which has positioned itself as the first to market provider of on-trend container goods to regional brick-and-mortar home furnishing stores and national ecommerce providers alike."
ABOUT LUXEYARD, INC.
LuxeYard is an e-commerce website for luxury home furnishings and decor that offers access to unique products sourced from an experienced team at prices up to 70 percent off retail. LuxeYard is the pioneer of Concierge Buying, which gives members the power to determine the items sold on the site, and Group Buy that allows them to lower the price by sharing sale items with friends. With a veteran retail, e-commerce and digital marketing management team, LuxeYard partners with trendsetters and industry insiders to deliver interactivity and content on its pages. Please visit www.luxeyard.com for more information.
This press release contains forward-looking statements regarding LuxeYard, which involve risks and uncertainties, and actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the factors included under the heading "Risk Factors" on Form S-1/A, filed with the Securities and Exchange Commission on September 21, 2012, a copy of which may be obtained by visiting the SEC's web site at www.sec.gov. LuxeYard's actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance.
Investors can register to receive news releases by visiting: http://www.luxeyard.com/investors/signup.php.
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SOURCE LuxeYard, Inc.