For Further Information: EXHIBIT 99.1
Big Dog Holdings, Inc.
121 Gray Avenue
Santa Barbara, California 93101
www.bigdogs.com
www.walkingcompany.com
CONTACT:
Laura Russell
Investor Information
(805) 963-8727, ext. 1360
laurar@bigdogs.com
For Immediate Release:
July 29, 2005
Big Dog Holdings, Inc. Announces Second Quarter 2005 Financial Results
Santa Barbara, California - July 29, 2005...Big Dog Holdings, Inc.
(NASDAQ:BDOG; www.bigdogs.com; www.thewalkingcompany.com), a developer and
retailer of branded, lifestyle consumer products, today reported the
financial results for the second quarter ended June 30, 2005.
For the quarter ended June 30, 2005, consolidated net sales were $43,441,000 as
compared with $41,044,000 in the second quarter 2004. Our consolidated retail
sales increased 6%, primarily due to comparative store sales increase of 7%.
Comparative store sales declined 2.5% for the Big Dogs chain and increased 18.3%
for the TWC chain. Consolidated gross profit increased to $24,680,000 in the
second quarter 2005 as compared with $23,031,000 in the second quarter 2004. The
overall increase in consolidated gross profit is the result of increased sales
as well as an increase in margin contribution from Big Dog and TWC. Big Dogs'
margin contribution for the period increased to 61.7% as compared to last year's
margin contribution of 60.5% and the gross margin for the TWC chain increased to
51.8% as compared to 50.5% for 2004.
Consolidated operating expenses in the second quarter 2005 were $21,613,000 or
49.8% of sales compared to $20,813,000 or 50.7% in the second quarter 2004. The
decrease in such expenses as a percentage of sales is attributable to leveraging
these expenses over a larger revenue base. The consolidated fully diluted net
income per share for the second quarter 2005 increased to $.18 per share, as
compared with a consolidated fully diluted net income per share of $.14 for the
second quarter 2004.
Andrew Feshbach, Chief Executive Officer, stated, "We are very pleased with the
results of our 2nd quarter and improvements over last year and continue to see
this trend going into our 3rd quarter for both chains."
Other Business:
As previously announced, the Company signed a definitive agreement to purchase
the assets of Footworks, a division of the privately held shoe retailer, Bianca
of Nevada, Inc. for approximately $10 million. Footworks operates a chain of 8
retail stores selling comfort shoes and accessories. This transaction is working
toward completion and is expected to close in August.
Big Dog Holdings, Inc. consists of Big Dogs and The Walking Company. Big Dogs
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(R) brand image is one of
quality, value and fun. The BIG DOGS(R) 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 181 retail stores, Big Dogs
markets its products through its catalog, licensing and corporate sales accounts
and Internet sales. The Walking Company is a leading independent specialty
retailer of high-quality, technically designed comfort footwear and accessories
that features premium brands such as ECCO, Mephisto, Dansko, Birkenstock and
Merrell among many others. These products have particular appeal to one of the
largest and most rapidly growing demographics in the nation. The Walking Company
operates 77 stores in premium malls across the nation.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of
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. The actual future sales and other results of the Company
could differ significantly from those statements. 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)
June 30,
--------------------------------------------
2005 2004
-------------------- --------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 594,000 $ 1,525,000
Receivables, net 767,000 229,000
Inventories 44,407,000 41,653,000
Prepaid expenses and other current assets 1,965,000 1,111,000
Deferred income taxes 1,855,000 1,559,000
-------------------- --------------------
Total current assets 49,588,000 46,077,000
PROPERTY AND EQUIPMENT, Net 9,988,000 10,673,000
INTANGIBLE ASSETS, Net 172,000 217,000
DEFERRED INCOME TAXES 1,690,000 1,394,000
OTHER ASSETS 309,000 448,000
-------------------- --------------------
TOTAL $ 61,747,000 $ 58,809,000
==================== ====================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings $ 7,384,000 $ 8,496,000
Current portion of long-term debt 246,000 261,000
Accounts payable 5,006,000 5,055,000
Income taxes payable 72,000 83,000
Accrued expenses and other current liabilities 5,376,000 5,696,000
-------------------- --------------------
Total current liabilities 18,084,000 19,591,000
NOTE PAYABLE 109,000 487,000
CAPITAL LEASE OBLIGATIONS 152,000 351,000
DEFERRED RENT AND LEASE INCENTIVES 1,333,000 690,000
DEFERRED GAIN ON SALE-LEASEBACK 222,000 274,000
-------------------- --------------------
Total liabilities 19,900,000 21,393,000
STOCKHOLDERS' EQUITY 41,847,000 37,416,000
-------------------- --------------------
TOTAL $ 61,747,000 $ 58,809,000
==================== ====================
BIG DOG HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------------------------- ---------------------------------------
2005 2004 2005 2004
------------------- ----------------- ------------------ -----------------
NET SALES $ 43,441,000 $ 41,043,000 $ 74,786,000 $ 62,924,000
COST OF GOODS SOLD 18,761,000 18,013,000 33,879,000 28,672,000
------------------- ----------------- ------------------ -----------------
GROSS PROFIT 24,680,000 23,030,000 40,907,000 34,252,000
------------------- ----------------- ------------------ -----------------
OPERATING EXPENSES:
Selling, marketing and distribution 19,327,000 18,875,000 37,594,000 33,008,000
General and administrative 2,286,000 1,936,000 4,029,000 3,733,000
------------------- ----------------- ------------------ -----------------
Total operating expenses 21,613,000 20,811,000 41,623,000 36,741,000
------------------- ----------------- ------------------ -----------------
INCOME(LOSS) FROM OPERATIONS 3,067,000 2,219,000 (716,000) (2,489,000)
OTHER INCOME - 82,000 - 82,000
INTEREST INCOME 1,000 64,000 41,000 70,000
INTEREST EXPENSE (297,000) (347,000) (448,000) (477,000)
------------------- ----------------- ------------------ -----------------
INCOME(LOSS) BEFORE PROVIS
(BENEFIT) FOR INCOME TAXES 2,771,000 2,018,000 (1,123,000) (2,814,000)
PROVISION(BENEFIT) FOR INCOME
TAXES 1,053,000 767,000 (427,000) (1,069,000)
------------------- ----------------- ------------------ -----------------
NET INCOME (LOSS) $ 1,718,000 $ 1,251,000 $ (696,000) $ (1,745,000)
=================== ================= ================== =================
NET INCOME (LOSS) PER SHARE
BASIC $ 0.19 $ 0.15 $ (0.08) $ (0.21)
=================== ================= ================== ================
DILUTED $ 0.18 $ 0.14 $ (0.08) $ (0.21)
=================== ================= ================== =================
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 9,182,000 8,261,000 9,181,000 8,252,000
=================== ================= ================== =================
DILUTED 9,756,000 8,907,000 9,181,000 8,252,000
=================== ================= ================== =================