(Bloomberg) -- Photo products retailer Shutterfly LLC released preliminary third-quarter earnings that reflected steeper losses, according to people with knowledge of the private results.

The Apollo Global Management-backed company booked a preliminary loss of $45 million to $55 million before interest, taxes, depreciation and amortization, said the people, who asked not to be identified because they weren’t authorized to speak publicly. That compares to a $41 million loss in the same period last year, the people said.

For the last twelve months, Shutterfly’s revenue was between $338 million and $348 million, they said. A measure of earnings that allows the company to add back certain costs and make other adjustments was in the $345 million to $355 million range, according to the people.

Shutterfly’s business is highly seasonal. The company, which sells personalized frames and photo albums online, earns the vast majority of its free cash flows in the final quarter of the calendar year, S&P Global Ratings said in an Oct. 7 note.

The company may face tight liquidity as the cost of its floating-rate debt rises and consumers pull back on discretionary spending in a potential recession, S&P said in the note. The company’s debt load may become unsustainable in a recession, according to the credit grader. 

At end of September, Shutterfly’s revolver was fully drawn, putting liquidity at $65 million to $70 million, one of the people said. 

The company’s first-lien term loan due 2026 is quoted at around 62 cents on the dollar, down from roughly 70 cents on Sept. 28, according to data compiled by Bloomberg. 

A representative for Shutterfly didn’t immediately provide a comment. Apollo declined to comment.

Apollo’s private equity arm acquired Shutterfly in a 2019 leveraged buyout and later combined the company with Snapfish. Shutterfly raised roughly $1.1 billion of debt to finance the acquisition of home decor marketplace Spoonflower last summer. 

Reorg earlier reported on Shutterfly’s results.

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