Improved Performance Across All Segments
All four operating segments delivered improved performance in the third quarter, with each achieving higher operating income and operating margin compared to the prior year period.
Gross Profit and Margin Increase
Gross profit for the quarter increased by $1.2 million or 3.4% to $38.3 million. Gross margin increased by 410 basis points to 34% from 29.9% in the prior year period.
Net Income and EPS Improvement
Net income was approximately $5.4 million for the quarter, and diluted EPS was $1.24 compared with a net loss of approximately $2.9 million and a loss per share of $0.91 in the prior year period.
Adjusted EBITDA Increase
Adjusted EBITDA for the quarter was approximately $13.2 million, an increase of approximately $7.1 million compared to the prior year period.
Retail Entertainment Segment Growth
Retail Entertainment segment revenue increased by $2.5 million or 15.2% to approximately $19 million, primarily due to increased consumer demand for new products.
Cost Reduction Initiatives Success
General and administrative expenses decreased by approximately $3.8 million or 12.6%, and sales and marketing expenses decreased approximately $1.8 million or 31.5%, primarily due to targeted cost reduction initiatives.