EBITDA improved $1.7 million, or 71% for the quarter to a loss of $680,000 from last year’s loss of $2.4 million. Year-to-date, EBITDA improved $10.6 million to earnings of $3.4 million, compared to last year’s loss of $7.2 million.

Our gross margin rate for the quarter increased 90 basis points to 37.9% of sales from 37% of sales last year. The increase in gross profit as a percentage of sales was due to higher margin rates across the majority of our product categories.

SG&A expenses were $35.4 million, a reduction of 18% from last year’s third quarter. SG&A expenses as a percent of sales were 38.6%, as compared to 39.1% for the same period last year. The decrease in SG&A expenses was driven by the closing of underperforming stores and continued focus on effective expense management.

Net interest expense was $513,000 in the quarter versus $774,000 last year as we are realizing the benefit of our amended credit facility.

We ended the quarter with cash of $60 million compared to $90 million last year and did not require any borrowings under our line of credit at any point during the year. Year-over-year, we have lowered our inventory by $45 million and finished the quarter with $178 million in inventory, 20% below last year’s $223 million.

We ended the quarter with 376 stores and 2.3 million square feet in operation, versus last year’s 440 stores and 2.9 million square feet, a 15% decline in store count.

Now, I’ll turn it back over to Bob.

Bob Higgins - Chairman & Chief Executive Officer

Thanks, John. We continue to improve our operating results during the third quarter. Year-to-date, we’ve reduced our net loss by approximately $13 million or 91%. We continue to make significant progress and our results reflect that.

Our comp sales were driven by a strong performance in Video and continued improvement in our Electronics and Trend categories.

The improvement in our operating results have been driven by continued higher gross margin rates in the majority of our merchandise categories and through reductions in operating expenses. We’ve been able to reduce operating expenses by challenging each and every component of our business to improve and become more efficient, while at the same time investing in people, technology and merchandise to support our future.

We continue to streamline operations, improve processes and reduce expenses. Year-to-date, we’ve opened or relocated eight stores. In 2013, we expect to capitalize on additional new store opening opportunities. As John mentioned, we ended the quarter with cash of $60 million, more than triple our cash balance last year and without any borrowings on our line of credit at any point this year.

As we focus on our all important holiday season, our strategy is to continuing to challenge every aspect of our business to improve and to deliver better value and an exceptional shopping experience to our customers. In addition, we will continue to invest in our growth categories and to aggressively seize opportunities to drive our sales and operating profits. We’re moving in the right direction and look forward to the holiday season and beyond.

Now, I’d like to open up the call to questions. Howard, could you do that for us?

Question-and-Answer Session
Operator

Yes, Sir. (Operator Instructions). Our first question or comment comes from the line of William Myers. Your line is open.

William Myers - Miller Asset Management

Hi, and congratulations on the quarter.

Bob Higgins - Chairman & Chief Executive Officer

Thank you.