BIG DOG HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30
2006       2005
ASSETS
CURRENT ASSETS:      
Cash and cash equivalents
$949,000
      
$390,000
Receivables, net
1,623,000
      
529,000
Inventories
71,329,000
      
58,573,000
Prepaid expenses and other current assets
3,774,000
      
1,478,000
Deferred income taxes
2,914,000
      
1,923,000
Total current assets
80,589,000
      
62,893,000
PROPERTY AND EQUIPMENT, Net
17,811,000
      
10,756,000
GOODWILL AND INTANGIBLE ASSETS, Net
7,343,000
      
7,811,000
DEFERRED INCOME TAXES
2,072,000
      
1,613,000
OTHER ASSETS
395,000
      
360,000
TOTAL
$108,210,000
      
$83,433,000
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:      
Short-term borrowings
Current portion of long-term debt
Accounts payable
$ 31,951,000
1,797,000
17,749,000
      
$12,191,000
1,616,000
14,577,000
Income taxes payable
41,000
      
1,006,000
Accrued expenses and other current liabilities
5,063,000
      
4,533,000
Total current liabilities
56,601,000
      
33,923,000
NOTES PAYABLE
CAPITAL LEASE OBLIGATIONS
2,996,000
2,000
      
4,736,000
83,000
DEFERRED RENT AND LEASE INCENTIVES
DEFERRED GAIN ON SALE-LEASEBACK
2,783,000
156,000
      
1,376,000
208,000
Total liabilities
62,538,000
      
40,326,000
STOCKHOLDERS' EQUITY
45,672,000
      
43,107,000
TOTAL
$108,210,000
      
$83,433,000

BIG DOG HOLDINGS, INC. AND SUBSIDIARIES
  
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
  
Three Months Ended
  
Nine Months Ended
  
September 30
September 30
  
2006   2005 2006   2005
NET SALES $54,127,000   $44,909,000 $145,975,000   $119,695,000
COST OF GOODS SOLD 25,145,000   19,623,000 67,513,000   53,502,000
GROSS PROFIT 28,982,000   25,286,000 78,462,000   66,193,000
OPERATING EXPENSES:  
Selling, marketing and distribution 23,945,000   19,168,000 69,695,000   55,052,000
General and administrative
Depreciation and amortization		 2,042,000
1,669,000		   2,092,000
1,002,000		 6,164,000
4,526,000		   5,909,000
2,924,000
Total operating expenses 27,656,000   22,262,000 80,385,000   63,885,000
INCOME (LOSS) FROM OPERATIONS
1,326,000
  
3,024,000
(1,923,000)
  
2,308,000
INTEREST INCOME 2,000   1,000 6,000   42,000
INTEREST EXPENSE (573,000)   (170,000) (1,358,000)   (618,000)
INCOME (LOSS) BEFORE PROVISION  
FOR (BENEFIT FROM) INCOME TAXES 755,000   2,855,000 (3,275,000)   (1,732,000)
PROVISION FOR (BENEFIT FROM) INCOME TAXES 284,000   1,085,000 (1,227,000)   658,000
NET INCOME (LOSS) $471,000   $1,770,000 $(2,048,000)   $1,074,000
NET INCOME (LOSS) PER SHARE:
BASIC $ 0.05   $ 0.19 $ (0.22)   $ 0.12
DILUTED $ 0.05   $ 0.18 $ (0.22)   $ 0.11
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 9,211,000   9,141,000 9,159,000   9,169,000
DILUTED 10,331,000   9,680,000 9,159,000   9,736,000
EBITDA:
INCOME (LOSS) FROM OPERATIONS
Add: Depreciation and amortization		 1,326,000
1,669,000		   3,024,000
1,002,000		 (1,923,000)
4,526,000		   2,308,000
2,924,000
EBITDA 2,995,000   4,026,000 2,603,000   5,232,000