Big Dog Holdings Inc. Announces Second-Quarter Results, $0.06 vs. $0.03 and Agreement With Hartbreak Films to Develop TV Series for Big Dog Character.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)--July 29, 1999-- Big Dog Holdings Inc. (Nasdaq:BDOG) (www.bigdogs.com), a developer, marketer and retailer of branded, lifestyle consumer products, Thursday reported the financial results for the second quarter ended June 30, 1999. Big Dog also announced a significant step forward in its corporatewide effort to expand brand exposure in signing an agreement with Hartbreak Films Inc. to develop a television series for the Big Dog character. Financial Results For the quarter ended June 30, 1999, net income increased 124.5% to a second-quarter record of $734,000, as compared with $327,000 for the second quarter 1998. Earnings per share doubled to 6 cents, as compared with 3 cents for the same period last year. 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 increased to $24,093,000, as compared with $22,389,000 in the second quarter 1998. The substantial improvement in net income is attributable to a 290-basis-point improvement in operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. and the increase in revenues. EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). in the second quarter increased 153.5% to $1,204,000, as compared with the $475,000 reported for the second quarter of 1998. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the period increased to $2,266,000, a 64.2% increase over the $1,380,000 in the second quarter 1998. At the close of the quarter, the company had 181 retail stores, representing a net increase of 16 stores since June 30, 1998. Comparable-store growth was 1.7%. Growth in sales of the company's big-size apparel continued to outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, other merchandise categories. "We are happy with our financial results for the quarter," said 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. "Operations are proceeding very smoothly. We have better cash flow, are turning inventory faster and have increased operating leverage. We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op for the balance of the year." Big Dog Goes Hollywood: Agreement With Hartbreak Films to Develop Television Series for the Big Dog Character Big Dog Holdings also announced Thursday a significant advancement in its effort to expand Big Dog brand exposure worldwide. In a deal brokered by the Creative Artists Agency Creative Artists Agency (CAA) is a talent and literary agency which represents a vast array of actors, musicians, writers, directors, and athletes, as well as a variety of companies and their products. (CAA Caa See CCC. ), Big Dog Holdings has entered into an exclusive relationship with Hartbreak Films to develop a television series for the Big Dog character. The agreement between the two CAA clients is to develop jointly a live-action, prime-time network television series for the Big Dog character, but may also include feature films, home videos and animated productions. The significant public exposure that such a series would be expected to bring to the Big Dog character and brands should both fuel demand for Big Dog merchandise domestically and significantly expand the company's licensing and foreign distribution opportunities. Hartbreak Films, founded in 1994 by its president, Paula Hart, is a producer of highly successful, family-oriented programming. Hart is credited with an impressive array of television productions, including the hit family series "Sabrina the Teenage Witch," for which she is executive producer. Airing at primetime on Disney's (NYSE NYSE See: New York Stock Exchange :DIS) ABC ABC in full American Broadcasting Co. Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. network, "Sabrina the Teenage Witch" has captured the No. 1 slot in the Friday night family entertainment line-up. Currently, "Sabrina" is in its fourth season. Commenting on this agreement, Hart said: "We are very excited to have an opportunity to bring the affable af·fa·ble adj. 1. Easy and pleasant to speak to; approachable. 2. Gentle and gracious: an affable smile. , audacious Big Dog character alive for the viewing public. As a champion of family-oriented programming, I believe that Big Dog lends itself perfectly to wholesome whole·some adj. whole·som·er, whole·som·est 1. Conducive to sound health or well-being; salutary: simple, wholesome food; a wholesome climate. 2. family entertainment and will be welcomed into millions of American households." "Paula Hart is in many ways an ideal partner for us in bringing Big Dog to television," said Jacki Blum, senior vice president entertainment and licensing of Big Dog Holdings. "We are excited to partner with a producer with a proven track record of success in attracting star talent and developing successful shows. The networks are looking to Paula Hart to develop family-oriented programming, and we believe her involvement substantially enhances the prospects of success for the show." Internet Enterprise Progress Report During the quarter, the company completed the first phase of its Internet Enterprise, bringing the entire 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. online. The full range of Big Dog product is now available online, the site is profitable and the company is pleased with the initial results to date. The company is now deploying the second phase of this project, in which it will upgrade the site into a sophisticated and entertaining shopping experience conveying the fun and excitement of the Big Dog brand and character. This second phase is targeted to be rolled out in the fourth quarter in order to capture holiday 1999 business. The company is also pursuing other near-term Internet opportunities to leverage the brand further. Big Dog Holdings 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 Dog 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 . 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 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 enterprise for its market. In addition to its 181 retail stores, Big Dogs markets its products through its catalog, 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 news 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. The actual future results of the company could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to, the ability to successfully develop the subsequent phases of the Internet site, to successfully develop the television show and have it air and the ability to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the show through licensing and other activities. 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. -0-
BIG DOG HOLDINGS INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30,
1999 1998
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,622,000 $ 1,101,000
Accounts receivable, net 829,000 909,000
Inventories 25,879,000 26,098,000
Prepaid expenses and other
current assets 1,392,000 2,192,000
Deferred income taxes 1,788,000 1,483,000
Total current assets 32,510,000 31,783,000
PROPERTY AND EQUIPMENT, Net 13,978,000 12,662,000
INTANGIBLE ASSETS, Net 27,000 64,000
OTHER ASSETS 547,000 517,000
TOTAL $47,062,000 $45,026,000
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 4,071,000 $ 4,886,000
Income taxes payable 144,000 --
Accrued expenses and other
current liabilities 2,008,000 1,784,000
Total current liabilities 6,223,000 6,670,000
DEFERRED RENT 810,000 797,000
Total liabilities 7,033,000 7,467,000
STOCKHOLDERS' EQUITY 40,029,000 37,559,000
TOTAL $47,062,000 $45,026,000
BIG DOG HOLDINGS INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
NET SALES $24,093,000 $22,389,000 $40,836,000 $36,601,000
COST OF GOODS SOLD 9,533,000 8,816,000 17,389,000 15,378,000
GROSS PROFIT 14,560,000 13,573,000 23,447,000 21,223,000
OPERATING EXPENSES:
Selling, marketing
and distribution 12,107,000 11,766,000 23,430,000 22,216,000
General and
administrative 1,249,000 1,332,000 2,464,000 2,482,000
Total operating
expenses 13,356,000 13,098,000 25,894,000 24,698,000
INCOME (LOSS)
FROM OPERATIONS 1,204,000 475,000 (2,447,000) (3,475,000)
INTEREST INCOME, NET -- (56,000) (94,000) (307,000)
INCOME (LOSS) BEFORE
PROVISION (BENEFIT)
FOR INCOME TAXES 1,204,000 531,000 (2,353,000) (3,168,000)
PROVISION (BENEFIT)
FOR INCOME TAXES 470,000 204,000 (917,000) (1,216,000)
NET INCOME (LOSS) $ 734,000 $ 327,000 $(1,436,000) $(1,952,000)
NET INCOME (LOSS)
PER SHARE BASIC
AND DILUTED $ 0.06 $ 0.03 $ (0.12) $ (0.15)
WEIGHTED AVERAGE
SHARES
OUTSTANDING:
BASIC 12,029,000 12,476,000 12,064,000 12,811,000
DILUTED 12,160,000 12,532,000 12,064,000 12,811,000
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion