Big Dog Holdings, Inc. Announces Third Quarter 2003 Results.Business Editors SANTA BARBARA Santa Barbara (săn'tə bär`brə, –bərə), city (1990 pop. 85,571), seat of Santa Barbara co., S Calif., on the Pacific Ocean; inc. 1850. , Calif.--(BUSINESS WIRE)--Nov. 6, 2003 Big Dog Holdings, Inc. (Nasdaq:BDOG) (www.bigdogs.com), a developer, marketer and retailer of branded, lifestyle consumer products, today reported the financial results for the third quarter ended September September: see month. 30, 2003. Results for the Quarter Ended September 30, 2003 Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $29.5 million for the third quarter 2003, as compared with $30.1 million for third quarter 2002. The decrease in sales resulted from the closing of several of the Company's unprofitable stores. Comparative stores sales increased slightly by 0.2% for the quarter. Gross margin for the third quarter decreased to 57.1%, as compared with 57.8% for the same period last year. Net income increased to $1.9 million, as compared with $1.7 million for the third quarter 2002, and earnings per share increased to $.24, as compared with $.21 for the third quarter last year. The increase in net income was a result of a decrease in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , relating primarily to the closure of unprofitable stores. Commenting on the results, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Andrew Feshbach stated, "The third quarter began with slower store sales and consumer traffic through July July: see month. . Similar with other retailers, we experienced a general increase in our business during the summer and this trend has continued into the fourth quarter. We believe we are well positioned for a solid holiday selling season." Big Dog Holdings, Inc. 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 Big Dogs, based in Santa Barbara, California, is a chain of stores in the United States which features clothing and apparel holding the "Big Dogs" brand name. The Company brand image is one of quality, fun and a sense of humor Noun 1. sense of humor - the trait of appreciating (and being able to express) the humorous; "she didn't appreciate my humor"; "you can't survive in the army without a sense of humor" sense of humour, humor, humour . The BIG DOGS brand is designed to appeal to people of all ages and demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data. , particularly baby boomers See generation X. and their kids, big and tall customers, and pet owners. The Company is in the process of extending its brand equity through selective licensing, cross promotions and the building of an Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the enterprise for its market. In addition to its 198 retail stores at September 30, 2003, Big Dogs markets its products through its catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. , better wholesale accounts and Internet sales. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Under the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Act 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a number of risks and uncertainties. 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.
BIG DOG HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30,
-------------------------
2003 2002
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $576,000 $851,000
Receivables, net 257,000 379,000
Inventories 33,319,000 32,510,000
Prepaid expenses and other current assets 1,238,000 1,607,000
Deferred income taxes 1,928,000 2,001,000
------------ ------------
Total current assets 37,318,000 37,348,000
PROPERTY AND EQUIPMENT, Net 4,404,000 5,616,000
INTANGIBLE ASSETS, Net 115,000 133,000
OTHER ASSETS 285,000 336,000
------------ ------------
TOTAL $42,122,000 $43,433,000
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings $2,873,000 $5,323,000
Accounts payable 4,397,000 5,974,000
Income taxes payable - 91,000
Accrued expenses and other current
liabilities 2,579,000 2,614,000
------------ ------------
Total current liabilities 9,849,000 14,002,000
DEFERRED RENT 627,000 752,000
DEFERRED GAIN ON SALE-LEASEBACK 314,000 367,000
------------ ------------
Total liabilities 10,790,000 15,121,000
STOCKHOLDERS' EQUITY 31,332,000 28,312,000
------------ ------------
TOTAL $42,122,000 $43,433,000
============ ============
BIG DOG HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- -------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
NET SALES $29,487,000 $30,114,000 $69,049,000 $73,423,000
COST OF GOODS SOLD 12,658,000 12,697,000 29,899,000 31,732,000
------------ ------------ ------------ ------------
GROSS PROFIT 16,829,000 17,417,000 39,150,000 41,691,000
------------ ------------ ------------ ------------
OPERATING EXPENSES:
Selling,
marketing and
distribution 12,390,000 13,117,000 35,584,000 37,295,000
General and
administrative 1,189,000 1,289,000 3,723,000 3,740,000
------------ ------------ ------------ ------------
Total operating
expenses 13,579,000 14,406,000 39,307,000 41,035,000
------------ ------------ ------------ ------------
INCOME (LOSS) FROM
OPERATIONS 3,250,000 3,011,000 (157,000) 656,000
INTEREST INCOME - (1,949,000) (1,000) (1,949,000)
INTEREST EXPENSE 75,000 2,137,000 240,000 2,368,000
------------ ------------ ------------ ------------
INCOME (LOSS)
BEFORE PROVISION
(BENEFIT) FOR
INCOME TAXES 3,175,000 2,823,000 (396,000) 237,000
PROVISION
(BENEFIT) FOR
INCOME TAXES 1,228,000 1,087,000 (151,000) 91,000
------------ ------------ ------------ ------------
NET INCOME (LOSS) $1,947,000 $1,736,000 $(245,000) $146,000
============ ============ ============ ============
NET INCOME (LOSS)
PER SHARE
BASIC AND DILUTED $0.24 $0.21 $(0.03) $0.02
============ ============ ============ ============
WEIGHTED AVERAGE SHARES
OUTSTANDING:
BASIC 8,264,000 8,393,000 8,328,000 8,415,000
============ ============ ============ ============
DILUTED 8,265,000 8,393,000 8,328,000 8,415,000
============ ============ ============ ============
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