LITTLETON, MA - November 8, 2007 - Dover Saddlery, Inc. (NASDAQ:DOVR), the leading multi-channel retailer of equestrian products, today reported financial results for the third quarter ended September 30, 2007.
Total revenues for the third quarter increased 15.8% to $19.9 million, compared to $17.2 million for the same period in 2006. Retail store revenues increased 49%, or $1.8 million, to $5.6 million. Same store sales increased 8.5% compared with the third quarter of 2006.
Net income for the third quarter of 2007 increased 124% to $444,000, or $0.08 per diluted share, compared to $198,000 or $0.04 per diluted share for the third quarter of 2006. Gross profit as a percentage of revenues increased to 37.0% from 36.6% in the third quarter of the prior year.
"We are pleased with the results of the third quarter of 2007. We now have a total of ten stores opened and are pleased to report that our store location model is being proven by healthy store sales. We had an extremely successful Grand Opening of our new Dallas store in mid-September and this store is performing very well," said Stephen L. Day, president and CEO of Dover Saddlery. "We are currently considering new store locations with the plan to open between four and six stores in 2008."
For the first nine months of 2007, total revenue increased 12.4 % to $58.5 million and revenues from the retail channel increased 62.8% to $14.2 million. After adjustment for cannibalization, same store sales increased 7.1% over the first nine months of 2006. Net loss for the first nine months of 2007 was ($94,000) or ($0.02) per diluted share, compared to a net income of $841,000 or $0.16, per diluted share for the first nine months of 2006. This change of $935,000 is largely attributable to the cumulative after-tax impact of $600,000 from the Goldsmith Agio Helms settlement and related legal costs. During the first nine months of 2007, Dover Saddlery opened four stores, compared with one new store opening in the first nine months of 2006.
Business Outlook 2007
The Company currently expects that total 2007 revenues will range from $79 million to $83 million. Increased revenues are expected to come mainly from the retail channel.
Conference Call and Webcast
Dover Saddlery will hold a conference call and webcast today at 5:00 p.m. Eastern Standard Time (EST) to discuss its third quarter results. To access the webcast via the Internet, please go to http://investor.shareholder.com/DOVR/events.cfm and click on the webcast icon. A telephone replay will be available from 8:00 p.m. November 8 until midnight, November 15, by dialing 719/457-0820 and entering pass code 5148605.
About Dover Saddlery, Inc.
Dover Saddlery, Inc. (NASDAQ:DOVR - News) is the leading multi-channel retailer 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 the prospects for overall revenue growth and the opening of and revenue growth from 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, 2006 on file with the Securities and Exchange Commission and in subsequent periodic reports filed with the SEC.
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.
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