Revenue during the quarter dropped 10.85 percent to $487.80 million from $547.14 million in the previous year period. Gross margin for the quarter contracted 200 basis points over the previous year period to 19.52 percent. Operating margin for the quarter stood at negative 3.51 percent as compared to a negative 1.81 percent for the previous year period.

Operating loss for the quarter was $17.11 million, compared with an operating loss of $9.90 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at negative $11.51 million compared to negative $4.57 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 2.36 percent for the quarter compared to negative 0.84 percent in the last year period.

Will Powell, chief executive officer and president, said, "In the third quarter, we continued to focus on our long-term, transformational initiatives. These included launching our Hometown segment transactional websites one quarter early in advance of the holiday season on October 27, 2016, converting an additional 137 stores to our America's Appliance Experts ("AAE") program, and launching an enhanced consumer lease-to-own program including a new agreement with a third-party provider. We are also progressing with our IT transformation initiative in accordance with our previously disclosed timetable, and we expect to transition our human resources systems and a part of our finance and accounting systems in the fourth quarter of 2016. This will give us the ability to execute purchases directly from vendors on SHO purchase orders. Our associates, dealers, and franchisees continue to offer our customers exceptional service through our "Say Yes" program, as we experienced another year-over-year increase in our customer satisfaction metrics, as well as positive on-line review feedback. Finally, we amended and extended our revolving credit facility on November 1, 2016."