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Second Quarter Results
Total revenues for the second quarter of 2012 increased 3.6% to
Net income for the quarter was
"During the second quarter, we opened our sixteenth Dover Saddlery store, in
This fall,
Year-to-Date Results
For the first six months of 2012, total revenues increased to
Net income for the first six months of 2012 was
A reconciliation of the net income calculated in accordance with GAAP and the non-GAAP adjusted EBITDA measure is provided in the table accompanying this earnings release.
Business Outlook 2012
Until there is greater long-term visibility on sustainable economic conditions and consumer behavior, the Company is not providing guidance on future business prospects.
Today's Teleconference and Webcast
About
For more information, please call 1-978-952-8062 or visit www.DoverSaddlery.com.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation statements made about the Company's business outlook for fiscal 2012, the prospects for overall revenue growth, gross margins and profitability, and the opening of new stores. All statements other than statements of historical fact included in this press release regarding the Company's strategies, plans, objectives, expectations, and future operating results are forward-looking statements. Although Dover believes that the expectations reflected in such forward-looking statements are reasonable at this time, it can give no assurance that such expectations will prove to have been correct. These forward-looking statements involve significant risks and
uncertainties, including those discussed in this release and others that can be found in "Item 1A Risk Factors" of Dover Saddler's Annual Report on Form 10-K for the fiscal year ended
DOVER SADDLERY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2012 2011 2012 2011
Revenues, net - direct $ 11,574 $ 12,172 $ 23,034 $ 24,240
Revenues, net - retail
stores 9,397 8,075 16,225 13,293
---------- ---------- ---------- ----------
Revenues, net - total $ 20,971 $ 20,247 $ 39,259 $ 37,533
Cost of revenues 13,153 12,767 24,381 23,484
---------- ---------- ---------- ----------
Gross profit 7,818 7,480 14,878 14,049
Selling, general and
administrative expenses 7,117 6,306 13,654 12,227
---------- ---------- ---------- ----------
Income from operations 701 1,174 1,224 1,822
Interest expense, financing
and other related costs,
net 153 103 262 477
Other investment income (24) (37) (30) (16)
---------- ---------- ---------- ----------
Income before income tax
provision 572 1,108 992 1,361
Provision for income taxes 268 481 467 609
---------- ---------- ---------- ----------
Net income $ 304 $ 627 $ 525 $ 752
========== ========== ========== ==========
Net income per share
Basic $ 0.06 $ 0.12 $ 0.10 $ 0.14
========== ========== ========== ==========
Diluted $ 0.05 $ 0.12 $ 0.09 $ 0.14
========== ========== ========== ==========
Number of shares used in per
share calculation
Basic 5,333,000 5,288,000 5,333,000 5,287,000
Diluted 5,567,000 5,413,000 5,580,000 5,339,000
Other Operating Data:
Number of retail stores(1) 16 14 16 14
Capital expenditures 679 281 1,121 402
Gross profit margin 37.3% 36.9% 37.9% 37.4%
(1) Includes fifteen Dover-branded stores and one Smith Brothers store.
DOVER SADDLERY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2012 2011 2012 2011
Net income $ 304 $ 627 $ 525 $ 752
-------- -------- -------- --------
Other comprehensive loss:
Change in fair value of interest
rate swap contract, net of tax (20) (103) (10) (103)
-------- -------- -------- --------
Total comprehensive income $ 284 $ 524 $ 515 $ 649
======== ======== ======== ========
DOVER SADDLERY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
June 30, Dec. 31,
2012 2011
ASSETS
Current assets:
Cash and cash equivalents $ 177 $ 313
Accounts receivable 832 811
Inventory 20,140 19,383
Prepaid catalog costs 890 1,273
Prepaid expenses and other current assets 949 896
Deferred income taxes 243 261
--------- ---------
Total current assets 23,231 22,937
Net property and equipment 4,364 3,667
Other assets:
Deferred income taxes 1,099 1,018
Intangibles and other assets, net 655 571
--------- ---------
Total other assets 1,754 1,589
--------- ---------
Total assets $ 29,349 $ 28,193
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capital lease obligations and
outstanding checks $ 643 $ 1,100
Accounts payable 1,313 2,201
Accrued expenses and other current liabilities 4,181 5,741
Income taxes payable - 308
--------- ---------
Total current liabilities 6,137 9,350
Long-term liabilities:
Revolving line of credit 4,554 987
Term note 5,500 5,500
Capital lease obligation, net of current portion 160 16
Interest rate swap contract 341 322
--------- ---------
Total long-term liabilities 10,555 6,825
Stockholders' equity:
Common stock, par value $0.0001 per share;
15,000,000 shares authorized; 5,332,738 issued and
outstanding as of June 30, 2012 and December 31,
2011 1 1
Additional paid in capital 45,840 45,716
Treasury stock, 795,865 shares at cost (6,082) (6,082)
Other comprehensive loss (200) (190)
Accumulated deficit (26,902) (29,427)
--------- ---------
Total stockholders' equity 12,657 12,018
--------- ---------
Total liabilities and stockholders' equity $ 29,349 $ 28,193
========= =========
Non-GAAP Financial Measures and Information
From time to time, in addition to financial results determined in accordance with generally accepted accounting principles in
When we use the term "Adjusted EBITDA", we are referring to net income minus interest income, investment income and other income plus interest expense, income taxes, non-cash stock-based compensation, depreciation, amortization and other investment loss. We present Adjusted EBITDA because we consider it an important measure of our performance, and the Company ties its executive and employee bonus pools directly to this measure. We also believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry.
The following table reconciles net income to Adjusted EBITDA (in thousands):
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2012 2011 2012 2011
Net income
$ 304 $ 627 $ 525* $ 752
Depreciation 217 184 424 365
Amortization of intangible assets _ 2 - 4
Stock-based compensation 62 62 124 124
Interest expense, financing and
other related costs, net 153 103 262 477
Other investment income (24) (37) (30) (16)
Provision for income taxes 268 481 467 609
-------- -------- -------- --------
Adjusted EBITDA
$ 980 $ 1,422 $ 1,772* $ 2,315
======== ======== ======== ========
(*) Includes the cumulative impact of the change in gift card breakage income of
Janet Nittmann Email Contact Tel 978-952-8062 x218
Source:
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