After considering all these items, our consolidated adjusted EBITDA was $0.7 million in the third quarter 2011,
which decreased slightly from $1.1 million reported in the same period of the prior year. For the third quarter, our net loss totaled $1.8 million or $0.14 per basic and diluted share, compared to a net loss of approximately $1.9 million or $0.16
per basic and diluted share for the same period last year.
Net loss for the third quarter of 2011 included net income of about $20,000 from discontinued operations related to eCOST.com, which we sold in February, compared to a net loss of $0.3 million from
discontinued operations for the same period last year. In addition, the prior year loss included a $0.7 million executive disability benefit.
As we look ahead to the fourth quarter, note that due to our increase in mix of direct-to-consumer related clients, the holiday season
is expected to generate our strongest quarterly period of service fee revenue and profitability. We believe we will continue to experience very strong topline growth in our Service Fee business in the fourth quarter. In addition, as Mark stated, we
continue to target an adjusted EBITDA performance for the year of more than $6 million. In order to achieve that objective, our fourth quarter adjusted EBITDA will need to be at least $3.8 million. Obviously, a large increase from the $0.7 million
reported in the September quarter, but a target we believe is achievable based on our current outlook.
From a balance sheet perspective, we continue to maintain a solid financial position with total cash and restricted cash as of September 30, 2011 of approximately $20 million. Our banking
relationships remain strong and we are pleased to report that we have finalized a new $2.5 million equipment loan financing agreement with Comerica to support some of our capital expenditure need.
Now Id like to turn the call back over to Mark for some
Mark C. Layton,
Chairman & Chief Executive Officer
you, Tom. I hope that our prepared remarks today have given you more insight into the field that all of us here at PFSweb have regarding our business and the excitement that we are experiencing. Seeing the success in the launch of great names
like Carters and Clarins and Salomons and so many others and watching many of these clients businesses experience strong growth as a result of the new technology and marketing activities that weve undertaken together is very rewarding
for all of us here at PFSweb. Its truly exciting times for PFS, the e-commerce industry as a whole and particularly the manufacturer direct-to-consumer segment which is continuing to grow rapidly.
With that information that concludes our prepared comments for
today. Operator, well now be available for questions.