New York & Company, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended October 28, 2017. Net sales were $214,182,000 against $213,901,000 a year ago. Operating income was $618,000 against loss of $2,103,000 a year ago. Income before income taxes was $457,000 against loss of $2,423,000 a year ago. Net income was $352,000 or $0.01 per basic and diluted share against loss of $2,532,000 or $0.04 per basic and diluted share a year ago. Non-GAAP as adjusted operating income was $1,261,000 against loss of $2,576,000 a year ago. Non-GAAP as adjusted net income was $995,000 or $0.02 per diluted share against loss of $3,005,000 or $0.05 per diluted share a year ago. Capital expenditures for the quarter were $3.1 million, as compared to $4.1 million in last year's third quarter, primarily reflecting investments for two new stores with short-term leases under attractive terms, investments to refresh existing real estate, and investments in the Company's information technology infrastructure to support its growing omni-channel business.

For the nine months, the company reported income before income taxes of $1,244,000 against loss of $7,086,000 a year ago. Net sales were $648,155,000 against $662,758,000 a year ago. Operating income was $1,922,000 against loss of $6,161,000 a year ago. Net income was $928,000 or $0.01 per basic and diluted share against loss of $7,303,000 or $0.12 per basic and diluted share a year ago. Net cash used in operating activities was $8,617,000 against net cash provided by operating activities of $8,523,000 a year ago. Capital expenditures were $7,794,000 against $13,332,000 a year ago. Non-GAAP as adjusted operating income was $2,442,000 against loss of $6,634,000 a year ago. Non-GAAP as adjusted net income was $1,448,000 or $0.02 per diluted share against loss of $7,776,000 or $0.12 per share a year ago.

For the fourth quarter of fiscal 2017, capital expenditures are projected to be between $4.0 million and $6.0 million, as compared to $5.0 million of capital expenditures in the fourth quarter of last year. Depreciation expense is estimated to be approximately $5.0 million. Operating income is expected to be between $2 million and $4 million as compared to an operating loss of $9.2 million in the prior year's fourth quarter. The company continues to remain focused on EBITDA. And for the fourth quarter, it is expected to generate $8 million to $10 million of positive EBITDA, resulting in more than $25 million of EBITDA for the full fiscal year. Net sales and comparable store sales are expected to be up by a low single-digit percentage due to positive comparable store sales and the inclusion of the 53rd week in the fiscal year calendar, partially offset by decreases in store counts. Gross margin is expected to be up approximately 200 basis points to 250 basis points from the prior year's fourth quarter rate, reflecting improvements in product margin, combined with continued benefits from Project Excellence through increased royalties, reductions in agents expenses and occupancy costs, partially offset by increased shipping costs associated with the significant growth in the eCommerce business.