LITTLETON, MA--(MARKET WIRE)--Mar 30, 2010 -- Dover Saddlery, Inc. (NasdaqCM:DOVR - News), the leading multichannel retailer of equestrian products, today announced financial results for the fourth quarter and fiscal year ended December 31, 2009.
Fourth quarter results
Total revenues for the fourth quarter of 2009 increased 3.7% to $22.1 million and same-store sales increased 3.1% over the same period in the prior year. Retail store channel revenues increased 10.7% to $6.8 million, due to improved same store sales and the opening of new stores in 2008 and 2009.
Net income for the quarter increased to $882,000, from a loss of $(13.9) million in the corresponding quarter of the prior year. This improvement was due to increased revenues and gross profit, and the non-recurrence of the prior year goodwill impairment charge. Earnings increased to $0.17 per diluted share in the fourth quarter of 2009 compared to a loss of $(2.68) per diluted share for the corresponding period in 2008.
Full Year Results
Total revenues for the fiscal year 2009 were $76.2 million compared to $78 million for 2008. Retail store channel revenues increased 12.3% to $24.9 million due primarily to the opening of new Dover Saddlery retail stores in 2008 and 2009, partially offset by a decline in same store sales of 2.3%. The decline in total revenue, while improved in the fourth quarter, is attributable to the recession in the first three quarters of the year.
Net income for fiscal 2009 was $904,000, compared to a loss of ($13.8) million for the fiscal year 2008. This improvement in net income was due to increased gross profit, cost savings in selling, general and administrative expenses, and the non-recurrence of the prior year goodwill impairment charge. Resulting earnings increased to $0.17 per diluted share for the fiscal year 2009 compared to a loss of $(2.68) per diluted share in 2008.
"We are very pleased with our financial results for 2009," commented Stephen L. Day, president and CEO of Dover Saddlery. "Our focus on reducing costs and inventory levels, while maintaining outstanding customer service and optimal in-stock levels, has been rewarded with improved profitability and excellent operating cash flow. As a result, we have strengthened our balance sheet by reducing our bank borrowings from $8.3 million at the end of 2008, to $3.0 million at the end of 2009. During 2010 we will be exploring opportunities to open new retail stores, taking advantage of extremely favorable lease rates."
Adjusted EBITDA for the fiscal year 2009 increased 24 % to $4.1 million from $3.3 million achieved in 2008. The company opened one store in North Kingstown, RI in February 2009, bringing the total number of retail stores to thirteen.
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 press release.
Business Outlook 2010
Until there is greater long-term visibility on the economic recovery and consumer expectations and sentiment, the Company is not providing guidance on business prospects in 2010.
Today's Teleconference and Webcast
Dover Saddlery will be hosting a conference call at 8:30 A.M. ET today to discuss the fourth quarter and full year 2009 results. Investors are invited to listen to the earnings conference call over the Internet through the company's website at http://investor.shareholder.com/DOVR/. This webcast will be archived for a year.
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 2010, the prospects for overall revenue growth 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 Saddlery's Annual Report on Form 10-K for the fiscal year ended December 31, 2008. Dover Saddlery is providing this information as of this date and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise. No forward-looking statement can be guaranteed and actual results may differ materially from those Dover Saddlery projects.
Non-GAAP Financial Measures and Information
From time to time, in addition to financial results determined in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company provides financial information determined by methods other than in accordance with GAAP. The Company's management uses these non-GAAP measures in its analysis of the Company's performance and ongoing operations. The Company believes that these non-GAAP operating measures supplement our GAAP financial information and provide useful information to investors for evaluating the Company's operating results, and trends that may be affecting the Company's business, as they allow investors to more readily compare our operations to prior financial results, and our future performance. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
When we use the term "Adjusted EBITDA," we are referring to net income minus interest income and other income plus interest expense, income taxes, non-cash stock-based compensation, non-cash goodwill impairment charge, depreciation, amortization and other investment loss. We present Adjusted EBITDA because we consider it an important measure of our performance and believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry.
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