Big Dog Holdings, Inc. Announces First Quarter 2006 Financial Results
SANTA BARBARA, CA -- (MARKET WIRE) -- May 2, 2006 - Big Dog Holdings, Inc. (NASDAQ: BDOG; www.bigdogs.com; www.thewalkingcompany.com), a developer and retailer of branded, lifestyle consumer products, today reported the financial results for the first quarter ended March 31, 2006.
For the quarter ended March 31, 2006, consolidated net sales were $38,671,000, a 23% increase, as compared with $31,345,000 in the first quarter 2005. Our consolidated net sales increased primarily due to the addition of 63 new Walking Company stores which includes 45 Steve Shoes stores, an acquisition that closed in January this quarter. The Company had a total of 304 stores opened (167 Big Dog stores and 137 TWC stores) at the end of the period, as compared with 254 stores opened on March 31, 2005 (180 Big Dog stores and 74 TWC stores.) Comparable retail store sales increased .8% for the quarter (7.8% increase for TWC chain and 7.4% decline for the Big Dog chain.) Total consolidated gross profit for the quarter increased to 52.0% of net sales or $20,097,000 as compared with 51.8% of net sales or $16,227,000 in the first quarter 2005. The overall dollar increase and percentage increase in consolidated gross profit is the result of contributions from TWC chain.
Consolidated operating expenses in the first quarter 2006 were $24,886,000 or 64.4% of sales compared to $20,010,000 or 63.8% in 2005. The percentage increase in consolidated operating expenses primarily relates to the Big Dog’s smaller revenue base, increase in depreciation and amortization and the Steve’s Shoes acquisition. Consolidated operating loss for the first quarter 2006 was $4,789,000 compared to $3,783,000 for the first quarter 2005. The consolidated net loss per share for the first quarter 2006 increased to $.35 per share, as compared with a consolidated net loss of $.26 per share for the first quarter 2005.
Andrew Feshbach, Chief Executive Officer, stated, "We had a $1,000,000 increase in our operating loss, or $600,000 EBITDA decrease, this quarter versus last year which is primarily the result of the decline in our Big Dog’s business, increased depreciation expense and additional expenses relating to our Steve Shoes acquisition." It should be noted that our first quarter results do not include sales generated by the Easter Holiday since the holiday fell in April and in our second quarter. Our second quarter business continues to reflect a similar trend as experienced in the first quarter."
New Distribution Center
The Company recently signed a 10 year lease on a build to suit 229,500 square foot distribution center just outside of Charlotte, North Carolina. The facility is scheduled to come on line and transition our current 143,000 square foot distribution center located in Santa Fe Springs, California during the fourth quarter 2006. The Company will begin shipping from its new distribution center in January 2007 and is estimating a $4 million capital expenditures budget for this project. The new facility will provide additional capacity for the Company’s continued growth as well as achieve cost efficiencies not available in our current distribution center.
Big Dog Holdings, Inc. consists of Big Dogs and The Walking Company. Big Dogs develops, markets and retails a branded, lifestyle collection of unique, high-quality, popular-priced consumer products, including activewear, casual sportswear, accessories and gifts. The BIG DOGS® brand image is one of quality, value and fun. The BIG DOGS® brand is designed to appeal to people of all ages and demographics, particularly baby boomers and their kids, big and tall customers, and pet owners. In addition to its 167 retail stores, Big Dogs markets its products through its catalogs, corporate sales accounts and Internet sales. The Walking Company is a leading independent specialty retailer of high quality, technically designed comfort walk wear and accessories that features premium brands such as ECCO, Mephisto, Dansko, Birkenstock and Merrell among many others. These products have particular appeal to one of the largest and most rapidly growing demographics in the nation. The Walking Company operates 137 stores in premium malls across the nation.
Safe Harbor Statement Under the Private Securities Litigation Act 1995- With the exception of historical information, the matters discussed in this press release are forward looking statements that involve a number of risks and uncertainties. The actual future sales and other results of the Company could differ significantly from those statements. Further information on the Company’s risk factors is contained in the Company’s quarterly and annual reports as filed with the Securities and Exchange Commission.
For Further Information:
Big Dog Holdings, Inc.
121 Gray Avenue
Santa Barbara, California 93101
www.bigdogs.com
www.thewalkingcompany.com
Contact:
Alexis Dilg
Investor Information
(805) 963-8727, ext. 1216
alexisd@bigdogs.com
For Immediate Release:
May 2, 2006
