EX-99.1 PRESS RELEAS 2 form3q2003.txt PRESSRELEASE3Q2003 EX-99.1 For Further Information: Big Dog Holdings, Inc. 121 Gray Avenue Santa Barbara, California 93101 www.bigdogs.com CONTACT: Liz Gates Investor Information (805) 963-8727, extension 1216 For Immediate Release: November 6, 2003 Big Dog Holdings, Inc. Announces Third Quarter 2003 Results Santa Barbara, California -November 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 30, 2003. Results for the Quarter Ended September 30, 2003 Net sales 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, relating primarily to the closure of unprofitable stores. Commenting on the results, CEO Andrew Feshbach stated, "The third quarter began with slower store sales and consumer traffic through July. 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 brand image is one of quality, fun and a sense of humor. 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 198 retail stores at September 30, 2003, Big Dogs markets its products through its catalog, better wholesale accounts and Internet sales. 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. Further information on the Company's risk factors is contained in the Companys 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 ditribution 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 ----------- ----------- ----------- ---------- ----------- ----------- ----------- ----------