Dreams, Inc., the parent of FansEdge.com, reported revenues were up 30.0% in the third quarter to $19.8 million, compared to $15.2 million generated in the same period last year.
The increase was attributable to our Internet sales of $13.5 million, up 40.0% for the period.
For the quarter ended September 30, 2010, earnings before interest, taxes, depreciation and amortization were a loss of $468,000, compared to an EBITDA loss of $429,000 for the same period in 2009. However, the Ccmpany had one-time charges to operations of $485,000 associated with financings in the period. Without these one-time charges, EBITDA would have been a positive $17,000, a vast improvement from the comparable period.
Net losses were $702,000, a 10.6% improvement from $786,000 in net losses for the same period in 2009.
Nine months ended September 30, 2010
For the nine months ended September 30, 2010, revenues were up 20.0% to $50.7 million, compared to $42.3 million generated in the same period last year. The increase was attributable to our Internet sales of $33.7 million, up 38.5% for the period.
For the nine months ended September 30, 2010, earnings before interest, taxes, depreciation and amortization were a loss of $2.21 million, a 14.3% improvement from $2.58 million in EBITDA losses for the same period in 2009. However, the Company had one-time charges to operations of approximately $690,000 associated with financings in the period. Without these one-time charges, EBITDA loss would have been $1.52 million, a 41% improvement over the comparable period.
For the nine months ended September 30, 2010, net losses were $2.74 million, a slight improvement from $2.84 million in net losses for the same period in 2009.
Ross Tannenbaum, Dreams' president & CEO commented, “We were pleased with the results of our third quarter which had the operations deliver a positive EBITDA, when you back out one-time charges. Our historical business model is cyclical and generates a greater portion of our annual revenues and profits in the holiday quarter (October-December).
“Our continued focus on E-Commerce served us well as our Internet division delivered operating profits for the third quarter with revenues increasing 40.0% to $13.5 million and 38.5% to $33.7 million for the nine months ended September 30, 2010. The E-Commerce channel will continue to be our main focus. This quarter's growth was led by our flagship brand, www.FansEdge.com and our growing web syndication portfolio.
“Our most recent syndication clients include STATS, The University of Miami Hurricanes and the retail giant, Sears. These sites will begin revenue contribution during our fourth quarter of 2010. This places our current web syndication portfolio total at (70) seventy and counting.
“Our corporate financing efforts were noteworthy as we successfully completed a $6,000,000 equity raise from a group led by William Blair & Company, in July; and the refinancing of our senior debt with Regions Bank who provided the Company with a $20,000,000 senior secured credit facility in July, at competitive rates. In fact, our interest expense for the quarter was reduced 45.5% from $413,000 last year, versus $225,000 for the current period.
“Our third quarter and nine month results were on budget and have us on track to achieve our yearly financial goals of delivering over $100 million in consolidated revenues for the first time and with increased profitability,” concluded Tannenbaum.
Other businesses owned by the company include: Mounted Memories, Field of Dreams, Pro Sports Memorabilia, The Greene Organization, Stars Live 365, Unique Images and Malcolm Farley Art.