SANTA BARBARA, CA (www.bigdogs.com, www.thewalkingcompany.com),
a developer and retailer of branded, lifestyle consumer products,
today reported its Company name change to The Walking Company
Holdings, Inc. and financial results for the first quarter ended
March 31, 2008.
Corporate Name Change
The Company's Board of Directors has approved the change of the
Company's name to "The Walking Company Holdings, Inc." The
Company's NASDAQ symbol will also be changed from BDOG to WALK. The
change is expected to be effected within the next few days.
Financial Results
For the quarter ended March 31, 2008, consolidated net sales
were $46,378,000, a 5% increase, as compared with $44,224,000 in
the first quarter 2007. Our consolidated net sales increased
primarily due to the addition of 41 net new The Walking Company
("TWC") stores. The Company had a total of 291 stores open (191 TWC
stores and 100 Big Dogs stores) at the end of the period, as
compared with 295 stores open on March 31, 2007 (150 TWC stores and
145 Big Dogs stores.) Comparable retail store sales decreased 1.9%
for the quarter (0.5% decline for TWC chain and 6.6% decline for
the Big Dogs chain.) Total consolidated gross profit for the
quarter decreased to 50.3% of net sales or $23,335,000 as compared
with 52.7% of net sales or $23,300,000 in the first quarter 2007.
Gross margins for TWC and Big Dogs decreased to 50.7% and 48.7%
compared to 52.0% and 54.5%, respectively, for the same period last
year.
Consolidated operating expenses in the first quarter 2008 were
$29,962,000 or 64.6% of sales compared to $29,210,000 or 66.0% in
2007. Consolidated operating loss for the first quarter 2008 was
$6,627,000 compared to $5,910,000 for the first quarter 2007. The
consolidated net loss per share for the first quarter 2008
increased to $.52 per share, as compared with a consolidated net
loss per share of $.44 per share for the first quarter 2007.
Andrew Feshbach, Chief Executive Officer, stated, "Our corporate
name change reflects the main focus of our business, which is the
development and growth of the Walking Company operations. TWC is
now more than twice as large as Big Dogs in sales and number of
stores. Our 1st quarter results reflect a 15% increase in our TWC
sales, all accomplished while reducing our corporate overhead
expenses as compared to last year. Our consolidated gross margin
was lower than last year due to a substantial shift of revenue from
Big Dogs to TWC, as well as a one-time adjustment reflected in our
prior year margin which related to the Steve's Shoes acquisition.
So far our 2nd quarter TWC business is trending stronger than our
1st quarter, and we remain cautiously optimistic about the 2nd
quarter and summer selling season."
Today's Conference Call
Today the Company will host a conference call at 1:30PM PDT to
discuss financial results for the Quarter Ended March 31, 2008.
Dial in information is as follows: U.S. Toll Free: 1-800-434-1335.
Participant code (to be given to the operator): 62679333. In the
event you are unable to attend a recordable copy will be available
two (2) hours after the call has ended. Dial in information to
listen to the recorded call is as follows: 1-800-750-4065,
Participant code: 75472226.
Big Dog Holdings, Inc. consists of The Walking Company and Big
Dogs. The Walking Company is a leading independent specialty
retailer of high quality, technically designed comfort walk wear
and accessories that features premium brands such as ECCO,
Mephisto, Dansko, Keen and MBT 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
199 stores in premium malls across the nation. 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�
brand image is one of quality, value and fun. 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 100 retail stores, Big Dogs
markets its products through its catalogs, corporate sales 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. 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)
March 31,
---------------------------
2008 2007
------------- -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 814,000 $ 789,000
Receivables, net 7,781,000 2,187,000
Inventories, net 77,030,000 74,018,000
Prepaid expenses and other current assets 1,677,000 1,817,000
Deferred income taxes 2,002,000 6,363,000
------------- -------------
Total current assets 89,304,000 85,174,000
PROPERTY AND EQUIPMENT, Net 35,654,000 25,927,000
INTANGIBLE ASSETS, Net 3,580,000 4,016,000
GOODWILL 6,296,000 3,131,000
DEFERRED INCOME TAXES 5,053,000 1,740,000
OTHER ASSETS 418,000 462,000
------------- -------------
TOTAL $ 140,305,000 $ 120,450,000
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings $ 38,673,000 $ 38,774,000
Current portion of long-term debt 3,366,000 2,353,000
Accounts payable 19,261,000 18,004,000
Accrued expenses and other current
liabilities 6,607,000 5,758,000
------------- -------------
Total current liabilities 67,907,000 64,889,000
LONG-TERM CONVERTIBLE DEBT 17,413,000 -
NOTES PAYABLE 3,630,000 2,621,000
CAPITAL LEASE OBLIGATIONS 1,638,000 2,243,000
DEFERRED RENT AND LEASE INCENTIVES 8,228,000 4,850,000
DEFERRED GAIN ON SALE-LEASEBACK 76,000 129,000
------------- -------------
Total liabilities 98,892,000 74,732,000
STOCKHOLDERS' EQUITY 41,413,000 45,718,000
------------- -------------
TOTAL $ 140,305,000 $ 120,450,000
============= =============
BIG DOG HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
--------------------------
2008 2007
------------ ------------
NET SALES $ 46,378,000 $ 44,224,000
COST OF GOODS SOLD 23,043,000 20,924,000
------------ ------------
GROSS PROFIT 23,335,000 23,300,000
------------ ------------
OPERATING EXPENSES:
Selling, marketing and distribution 25,865,000 25,340,000
General and administrative 2,029,000 2,055,000
Depreciation and amortization 2,068,000 1,815,000
------------ ------------
Total operating expenses 29,962,000 29,210,000
------------ ------------
LOSS FROM OPERATIONS (6,627,000) (5,910,000)
INTEREST INCOME 2,000 3,000
INTEREST EXPENSE (1,031,000) (706,000)
------------ ------------
LOSS BEFORE BENEFIT FROM
INCOME TAXES (7,656,000) (6,613,000)
BENEFIT FROM INCOME TAXES (2,680,000) (2,478,000)
------------ ------------
NET LOSS $ (4,976,000) $ (4,135,000)
============ ============
NET LOSS PER SHARE
BASIC $ (0.52) $ (0.44)
============ ============
DILUTED $ (0.52) $ (0.44)
============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 9,481,000 9,336,000
============ ============
DILUTED 9,481,000 9,336,000
============ ============
For Further Information: Big Dog Holdings, Inc. 121 Gray Avenue
Santa Barbara, California 93101 www.bigdogs.com
www.thewalkingcompany.com Investor Information (805) 963-8727, ext.
1360 alexisd@bigdogs.com
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