Revenue during the quarter grew 12.04 percent to $117.15 million from $104.57 million in the previous year period. Gross margin for the quarter contracted 209 basis points over the previous year period to 31.56 percent. Total expenses were 87.64 percent of quarterly revenues, up from 85.44 percent for the same period last year. That has resulted in a contraction of 219 basis points in operating margin to 12.36 percent.

Operating income for the quarter was $14.48 million, compared with $15.22 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $18.48 million compared with $17.25 million in the prior year period. At the same time, adjusted EBITDA margin contracted 72 basis points in the quarter to 15.77 percent from 16.49 percent in the last year period.

Christopher J. Munyan, chief executive officer and president commented, "As expected, sales were strong for the quarter, increasing 12% over the prior year, and year to date sales now exceed the prior year. We continued to see some unusual costs associated with our two warehouse consolidation projects in the first half of the quarter, but they are now essentially complete. We also continued executing on our strategy of growing our presence in the craft, seasonal and celebrations markets with the McCall acquisition during the quarter. As we start the integration of McCall, we remain excited about the efficiencies and revenue enhancement opportunities we expect to realize."