BIG DOG HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31
2006       2005
ASSETS
CURRENT ASSETS:      
Cash and cash equivalents
$3,587,000
      
$3,530,000
Receivables, net
2,511,000
      
894,000
Inventories
58,608,000
      
44,518,000
Prepaid expenses and other current assets
1,170,000
      
1,046,000
Deferred income taxes
2,741,000
      
1,681,000
Total current assets
68,617,000
      
51,669,000
PROPERTY AND EQUIPMENT, Net
24,174,000
      
11,931,000
INTANGIBLE ASSETS, Net
4,125,000
      
4,473,000
GOODWILL
3,131,000
      
3,131,000
DEFERRED INCOME TAXES
2,221,000
      
1,187,000
OTHER ASSETS
393,000
      
362,000
TOTAL
$102,661,000
      
$72,753,000
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:      
Short-term borrowings
Current portion of long-term debt
Accounts payable
$ 25,722,000
1,769,000
8,690,000
      
$2,796,000
1,775,000
7,478,000
Income taxes payable
1,511,000
      
1,367,000
Accrued expenses and other current liabilities
8,335,000
      
6,615,000
Total current liabilities
46,027,000
      
20,031,000
NOTES PAYABLE
CAPITAL LEASE OBLIGATIONS
2,829,000
26,000
      
4,565,000
47,000
DEFERRED RENT AND LEASE INCENTIVES
DEFERRED GAIN ON SALE-LEASEBACK
4,508,000
143,000
      
1,468,000
195,000
Total liabilities
53,533,000
      
26,306,000
STOCKHOLDERS' EQUITY
49,128,000
      
46,447,000
TOTAL
$102,661,000
      
$72,753,000

BIG DOG HOLDINGS, INC. AND SUBSIDIARIES
  
CONSOLIDATED STATEMENTS OF OPERATIONS
  
Three Months Ended
  
Year Ended
  
December 31,
(Unaudited)
December 31,
 
  
2006   2005 2006   2005
NET SALES $72,628,000   $59,420,000 $218,604,000   $179,115,000
COST OF GOODS SOLD 34,209,000   26,809,000 101,723,000   80,311,000
GROSS PROFIT 38,419,000   32,611,000 116,881,000   98,804,000
OPERATING EXPENSES:  
Selling, marketing and distribution 28,215,000   22,080,000 97,910,000   77,132,000
General and administrative
Depreciation and amortization		 2,653,000
1,998,000		   3,041,000
1,249,000		 8,817,000
6,524,000		   8,950,000
4,173,000
Total operating expenses 32,866,000   26,370,000 113,251,000   90,255,000
INCOME FROM OPERATIONS
5,553,000
  
6,241,000
3,630,000
  
8,549,000
INTEREST INCOME 2,000   2,000 8,000   44,000
INTEREST EXPENSE (726,000)   (358,000) (2,084,000)   (976,000)
INCOME BEFORE PROVISION  
FOR INCOME TAXES 4,829,000   5,885,000 1,554,000   7,617,000
PROVISION FOR INCOME TAXES 1,810,000   2,236,000 583,000   2,894,000
NET INCOME $3,019,000   $3,649,000 $971,000   $4,723,000
NET INCOME PER SHARE:
BASIC $ 0.33   $ 0.40 $ 0.11   $ 0.52
DILUTED $ 0.31   $ 0.38 $ 0.10   $ 0.49
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 9,236,000   9,075,000 9,180,000   9,145,000
DILUTED 9,885,000   9,664,000 9,531,000   9,726,000