LITTLETON, MA November 9, 2006 Dover Saddlery, Inc. (NASDAQ: DOVR), the largest direct marketer of equestrian products in the United States, today announced its financial results for the third quarter ended September 30, 2006. Revenue for the third quarter of 2006 rose to $17.2 million, an increase of 23%, or $3.2 million, from $14.0 million for the same period in 2005. Net income for the third quarter of 2006 was $198,000, or $0.04 per diluted share, compared with $83,000, or $0.02 per diluted share, for the third quarter a year ago.
Retail sales revenue for the third quarter of 2006 increased 57.9%, or $1.4 million, to $3.8 million compared with the same quarter a year ago. Direct sales channel revenue increased 16.0% or $1.9 million to $13.4 million. Gross profit rose 19.5% to $6.3 million from $5.3 million for the same period in 2005. "Higher retail sales during the third quarter reflected our acquisition of four Dominion Saddlery stores as well as strong same-store sales, which were up 13% over the third quarter last year," said Stephen L. Day, president and chief executive officer of Dover Saddlery. "We are also pleased to report a very successful opening of our first Maryland store. As expected, store traffic at the Grand Opening was significant, and our elegant new store and vast selection of equestrian products provided a first-class retail experience."
For the nine months of 2006, total revenue increased 16.8%, or $7.5 million, to $52.0 million from $44.5 million for the same period in 2005. Revenues from the retail channel increased 31.3% to $8.7 million, while revenues from the direct sales channel increased 14.2%, to $43.3 million, over the same period in 2005. Net income for the nine months of 2006 rose by 32%, or $206,000, to $841,000 from $635,000 for the same period in 2005, and earnings per share, fully diluted, increased to $.16 in 2006 from $.14 in 2005.
Dover Saddlery reaffirms its business outlook for the current year. The Company continues to expect that total 2006 revenue will range from $68 million to $72 million, increases in the range of 9% to 14% over 2005 revenue.
Today's Teleconference and Web cast
Dover Saddlery will be hosting a conference call today at 5:00 p.m. ET to discuss its third quarter financial results. This call will be available live at http://investor.shareholder.com/DOVR/ and will be archived for one year. In addition, a phone replay will be available until midnight, November 16, by dialing 719-457-0820, pass code 8272648.
About Dover Saddlery, Inc.
Dover Saddlery, Inc. (NASDAQ: DOVR) is the largest direct marketer of equestrian products in the United States. Founded in 1975 in Wellesley, Massachusetts, by United States Equestrian team members, Dover Saddlery has grown to become The Source® for equestrian products. Dover offers a broad and distinctive selection of competitively priced, brand-name products for horse and rider through catalogs, the Internet and company-owned retail stores. Dover Saddlery, Inc. serves the English rider and through Smith Brothers, the Western rider. The Source®, Dover Saddlery® and Smith Brothers® are registered marks of Dover Saddlery.
For more information, please call 1-978-952-8062 or visit www.DoverSaddlery.com . Notice Regarding 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 integration of Dominion's business as part of Dover Saddlery's retail store expansion strategy, and maintenance and growth of Dominion's revenues following introduction of some of Dover Saddlery's additional products to Dominion's existing customer base. 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, 2005 and more recent quarterly reports on Form 10Q on file with the Securities and Exchange Commission.
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.