Click here to close now.




















Welcome!

News Feed Item

Dover Saddlery Announces First Quarter 2014 Financial Results

LITTLETON, MA -- (Marketwired) -- 05/08/14 -- Dover Saddlery, Inc. (NASDAQ: DOVR), the leading omni-channel retailer of equestrian products, today reported financial results for the first quarter ended March 31, 2014.

Total revenues for the first quarter of 2014 increased 9.4% to $19.7 million, from $18.0 million achieved in the first quarter of 2013. Revenues in the retail channel increased 21.5% to $8.8 million from $7.2 million, due primarily to the opening of new stores in 2013; while same-store sales for the first quarter of 2014 increased 3.7%.

The net loss for the first quarter of 2014 was $(543,000), or $(0.10) per diluted share, compared to $(538,000) or $(0.10) per diluted share in the first quarter of the prior year.

"I am pleased to report that the three Dover Saddlery stores opened in the fourth quarter of 2013 performed very well in the first quarter of this year. These stores have contributed towards the 22% increase in retail channel revenues," commented Stephen L. Day, president and CEO of Dover Saddlery. "The increase in selling, general and administrative expense was due primarily to increased direct marketing costs and increased labor and lease expenses associated with the new stores."

Adjusted EBITDA for the first quarter of 2014 improved to $(479,000), from $(514,000) in the first quarter of 2013. A reconciliation of the net income calculated in accordance with GAAP and the non-GAAP Adjusted EBITDA measure is provided in the table accompanying this press release.

Business Outlook 2014

Dover Saddlery is planning to open four to six retail stores in 2014. Until there is greater long-term visibility on sustainable economic conditions and consumer behavior, the Company is not providing guidance on other business prospects.

Today's Teleconference and Webcast

Dover Saddlery will be hosting a conference call at 4:30 P.M. EDT today to discuss the first quarter 2014 results. Investors are invited to listen to the earnings conference call over the Internet through the company's website at http://investor.shareholder.com/DOVR/, this web cast will be archived for a year.

About Dover Saddlery, Inc. Dover Saddlery, Inc. (NASDAQ: DOVR) is the leading multichannel retailer of equestrian products in the United States. Founded in 1975 in Wellesley, Massachusetts, by United States Equestrian team members, Dover Saddlery has grown to become The Source® for equestrian products. Dover offers a broad and distinctive selection of competitively priced, brand-name products for horse and rider through catalogs, the Internet and company-owned retail stores. Dover Saddlery, Inc. serves the English rider and through Smith Brothers, the Western rider. The Source®, Dover Saddlery® and Smith Brothers® are registered marks of Dover Saddlery.

For more information, please call 1-978-952-8062 or visit www.DoverSaddlery.com.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation statements made about the Company's business outlook for fiscal 2014, the prospects for overall revenue growth, expense ratios, growth in the retail channel, profitability, and the opening of new stores. All statements other than statements of historical fact included in this press release regarding the company's strategies, plans, objectives, expectations, and future operating results are forward-looking statements. Although Dover believes that the expectations reflected in such forward-looking statements are reasonable at this time, it can give no assurance that such expectations will prove to have been correct. These forward-looking statements involve significant risks and uncertainties, including those discussed in this release and others that can be found in "Item 1A Risk Factors" of Dover Saddlery's Annual Report on Form 10-K for the fiscal year ended December 31, 2013. Dover Saddlery is providing this information as of this date and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise. No forward-looking statement can be guaranteed and actual results may differ materially from those Dover Saddlery projects.



                 DOVER SADDLERY, INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              (In thousands, except share and per share data)
                                (Unaudited)

                                                     Three Months Ended
                                                   March 31,     March 31,
                                                     2014          2013

Revenues, net- direct                            $     10,912  $     10,784
Revenues, net - retail stores                           8,800         7,242
                                                 ------------  ------------
Revenues, net - total                                  19,712  $     18,026
Cost of revenues                                       12,637        11,629
                                                 ------------  ------------
Gross profit                                            7,075         6,400
Selling, general and administrative expenses            8,024         7,265
                                                 ------------  ------------
Loss from operations                                     (949)         (865)
Interest expense, financing and other related
 costs, net                                               142           124
Other investment income (loss), net                        (2)           11
                                                 ------------  ------------
Loss before income tax benefit                         (1,093)         (978)
Benefit for income taxes                                 (550)         (440)
                                                 ------------  ------------
Net loss                                         $       (543) $       (538)
                                                 ============  ============

Net loss per share
Basic                                            $      (0.10) $      (0.10)
                                                 ============  ============
Diluted                                          $      (0.10) $      (0.10)
                                                 ============  ============
Number of shares used in per share calculation
Basic                                               5,352,000     5,338,000
Diluted                                             5,352,000     5,338,000

Other Operating Data:

Number of retail stores(1)                                 22            18
Capital expenditures                                      339           376
Gross profit margin                                      35.9%         35.5%
(1) Includes twenty-one Dover-branded stores and one Smith Brothers store.




                   DOVER SADDLERY, INC. AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
                         (In thousands, unaudited)
                                                     Three Months Ended
                                                   March 31,     March 31,
                                                     2014          2013

Net loss                                         $       (543) $       (538)
                                                 ------------  ------------
Other comprehensive loss net:
  Change in fair value of interest rate swap
   contract, net of tax                                     9            16
                                                 ------------  ------------
Total comprehensive loss                         $       (534) $       (522)
                                                 ============  ============






                   DOVER SADDLERY, INC. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                     (In thousands, except share data)
                                (unaudited)
                                                   March 31,     Dec. 31,
                                                     2014          2013
ASSETS
Current assets:
 Cash and cash equivalents                       $        214  $        319
 Accounts receivable                                      888         1,300
 Inventory                                             26,652        23,633
 Prepaid catalog costs                                  1,744           974
 Prepaid expenses and other current assets              1,971         1,277
 Deferred income taxes                                    369           355
                                                 ------------  ------------

Total current assets                                   31,838        27,858

Net property and equipment                              5,760         5,763

Other assets:
 Deferred income taxes                                  1,346         1,495
 Intangibles and other assets, net                        740           758
                                                 ------------  ------------
Total other assets                                      2,086         2,253
                                                 ------------  ------------
Total assets                                     $     39,684  $     35,874
                                                 ============  ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Current portion of capital lease obligations
  and outstanding checks                         $        347  $        290
 Current portion - term note                              786           786
 Current portion - Capex term loan                        711           630
 Accounts payable                                       1,939         2,352
 Accrued expenses and other current liabilities         5,534         7,201
 Income taxes payable                                       -         1,006
                                                 ------------  ------------
Total current liabilities                               9,317        12,265

Long-term liabilities:
 Revolving line of credit                               7,673            95
 Capex term loan, net of current portion                2,620         2,818
 Term note, net of current portion                      3,928         4,125
 Capital lease obligation, net of current
  portion                                                  86            96
 Interest rate swap contract                              173           189
                                                 ------------  ------------
Total long-term liabilities                            14,480         7,323
Stockholders' equity:
 Common stock, par value $0.0001 per share;
  15,000,000 shares authorized; 6,160,103 and
  6,147,263 issued and 5,364,238 and 5,351,398
  outstanding as of March 31, 2014 and December
  31, 2013, respectively                                    1             1
Additional paid in capital                             46,439        46,304
Treasury stock, 795,865 shares at cost                 (6,082)       (6,082)
Other comprehensive loss                                 (113)         (122)
Accumulated deficit                                   (24,358)      (23,815)
                                                 ------------  ------------
Total stockholders' equity                             15,887        16,285
                                                 ------------  ------------
Total liabilities and stockholders' equity       $     39,684  $     35,874
                                                 ============  ============


Non-GAAP Financial Measures and Information

From time to time, in addition to financial results determined in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company provides financial information determined by methods other than in accordance with GAAP. The Company's management uses these non-GAAP measures in its analysis of the Company's performance and ongoing operations. The Company believes that these non-GAAP operating measures supplement our GAAP financial information and provide useful information to investors for evaluating the Company's operating results and trends that may be affecting the Company's business, as they allow investors to more readily compare our operations to prior financial results and our future performance. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

When we use the term "Adjusted EBITDA," we are referring to net income minus interest income, investment income and other income plus interest expense, income taxes, non-cash stock-based compensation, depreciation, amortization and other investment loss. We present Adjusted EBITDA because we consider it an important measure of our performance, and the Company ties its executive and employee bonus pools directly to this measure. We also believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry.

The following table reconciles net loss to Adjusted EBITDA (in thousands):



                                                     Three Months Ended
                                                   March 31,     March 31,
                                                     2014          2013


Net loss                                         $       (543) $       (538)
Depreciation                                              342           263
Amortization of intangible assets                          18            18
Stock-based compensation                                  110            70
Interest expense, financing and other related
 costs, net                                               142           124
Other investment (income) loss, net                         2           (11)
Benefit for income taxes                                 (550)         (440)
                                                 ------------  ------------
Adjusted EBITDA                                  $       (479) $       (514)
                                                 ============  ============


Janet Nittmann
Email Contact
Tel 978-952-8062 x218

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
Malicious agents are moving faster than the speed of business. Even more worrisome, most companies are relying on legacy approaches to security that are no longer capable of meeting current threats. In the modern cloud, threat diversity is rapidly expanding, necessitating more sophisticated security protocols than those used in the past or in desktop environments. Yet companies are falling for cloud security myths that were truths at one time but have evolved out of existence.
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with ...
The Cloud industry has moved from being more than just being able to provide infrastructure and management services on the Cloud. Enter a new era of Cloud computing where monetization’s services through the Cloud are an essential piece of strategy to feed your organizations bottom-line, your revenue and Profitability. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed how to easily o...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. The DevOps approach is a way to increase business agility through collaboration, communication, and integration across different teams in the IT organization. In his session at DevOps Summit, Chris Van Tuin, Chief Technologist for the Western US at Red Hat, will discuss: The acceleration of application delivery for the business with DevOps