SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|Date of Report (Date of Earliest Event Reported):||March 27, 2006|
Dover Saddlery, Inc.
(Exact name of registrant as specified in its charter)
(State or other jurisdiction
|of incorporation)||File Number)||Identification No.)|
|525 Great Road, P.O. Box 1100, Littleton, Massachusetts||01460|
(Address of principal executive offices)
|Registrants telephone number, including area code:||978-952-8062|
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On March 27, 2006, Dover Saddlery, Inc. issued a press release reporting its financial results for its fiscal quarter and fiscal year ended December 31, 2005. A copy of the press release is attached and is being furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
99.1 March 27, 2006 Press Release
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|Dover Saddlery, Inc.|
|March 27, 2006||By:||
/s/ Michael W. Bruns
|Name: Michael W. Bruns|
|Title: Chief Financial Officer|
Tel 978 952 8062 x218
For Immediate Release
Dover Saddlery Announces Fourth-Quarter and Full-Year 2005 Results
LITTLETON, MA March 27, 2006 Dover Saddlery, Inc. (Nasdaq: DOVR), the largest direct marketer of equestrian products in the United States, today reported financial results for the fourth quarter and fiscal year-ended December 31, 2005, highlighted by strong revenues and gross margins. Revenues for the fourth quarter of 2005 were $18.1 million, an 8.7% increase over the fourth quarter of 2004.
For the full year, Dovers revenues for the year-ended December 31, 2005 grew to $62.7 million, up 6.7% compared to revenues of $58.7 million for 2004. Gross margin for 2005 was 37.3%.
As the first pure-play equestrian products company to go public, were pleased with our accomplishments during 2005, said Stephen L. Day, president and CEO of Dover Saddlery. We made significant inroads in building out our multi-channel sales, retail and product-mix strategies throughout the year, and continued to invest in our infrastructure to leverage and maximize our future growth potential. At the same time, we were able to hold our gross profit margin for the year at a solid 37.3%, compared with 37.2% for the prior year. We believe that we have a strong brand and compelling long-term growth opportunities, and we look forward to furthering our strategic goals in 2006.
Revenues for the fourth quarter of fiscal 2005 were $18.1 million compared with $16.7 million for the fourth quarter of 2004, an increase of 8.7%, and an increase of 29% from $14.0 million for the third quarter of 2005. Higher fourth-quarter 2005 revenues were driven by increased retail activity and catalog orders, despite a continued challenging retail environment.
Direct sales revenue through the companys catalog and Internet sales channels for the fourth quarter of 2005 contributed $15.5 million, or 85% of total revenue, while retail sales through the companys storefront operations continued to expand, contributing $2.7 million, or 15% of total revenue.
Operating income was $1.1 million, below prior year by $123,000. Net income for the fourth quarter of 2005 was $191,000, or $0.04 per diluted share, compared with $266,000, or $0.06, for the same quarter a year earlier.
For full-year 2005, total revenues were $62.7 million, up 6.7% from $58.7 million for 2004 due primarily to a 42.3% growth in our retail channel. Operating income was $3.6 million, below the prior years $4.2 million. Net income for 2005 was $826,000, or $0.18 per diluted share, compared with net income of $1.4 million, or $0.31 per share, for the prior year.
Cash, cash equivalents and short-term investments at December 31, 2005, totaled $2.9 million, up from $0.1 million at December 31, 2004, primarily reflecting proceeds from the companys November initial public offering, after utilizing the majority of the proceeds to temporarily reduce debt in preparation for the planned retail expansion.
Dover Saddlery also announced today its business outlook for the current year. The company currently expects that total 2006 revenues will range from $68 million to $72 million, increases in the range of 9% to 14%, respectively
Dover Saddlery will be ringing the bell to open Nasdaq Thursday March 30 at 9.30 am ET. This event can be viewed over the web http://www.nasdaq.com/reference/marketsite_about.stm This will be followed by Stephen Day and Olympic gold medalist, David OConnor, on horseback in Times Square in front of the Nasdaq building.
Todays Teleconference and Webcast
Dover Saddlery plans to host its first quarterly teleconference today at 5:00 p.m. ET/4:00 p.m. CT/3:00 p.m. MT/2:00 p.m. PT. This call will be available live on the companys website at http://investor.shareholder.com/DOVR/ and will be archived for one year. In addition, a replay of the call will be available until March 31 st Dial-in (719) 457-0820, Pass code 1337264.
About Dover Saddlery, Inc.
Dover Saddlery, Inc. (Nasdaq: DOVR) is the largest direct marketer 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 .
Notice Regarding 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 companys strategic goals for fiscal 2006, and ability to leverage its Internet, catalog and storefront operations to achieve growth. All statements other than statements of historical fact included in this press release regarding the companys 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 the Risk Factors section of Dover Saddlerys Registration Statement on Form S-1 on file with the Securities and Exchange Commission.
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.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Dollar amounts in thousands, except per share data)
Three months ended
Twelve months ended
DOVER SADDLERY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents
Prepaid catalog costs
Prepaid expenses and other current assets
Income tax receivable
Furniture and fixtures
Office and other equipment
Less accumulated depreciation and amortization
Deferred tax assets
Other assets, net
Current portion of capital lease obligations
and short term bank borrowings
Accrued expenses and other current liabilities
Income tax payable
Deferred tax liability
Revolving line of credit
Subordinated notes payable
Capital lease obligation, net of current portion
Redeemable convertible preferred stock, $0.0001 par value; 1,449,690 shares authorized,
1,337,661 issued and outstanding at redemption value as of December 31, 2004
Put rights available to preferred stock holders
Put rights available to common stock holders
Employee notes receivable in exchange for option exercise
Common Stock, par value $0.0001 per share;
15,000,000 shares authorized, 5,074,344 as of
December 31, 2005 and 3,023,263 as of
December 31, 2004
Accumulated other comprehensive income (loss)
Total liabilities and stockholders equity
DOVER SADDLERY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS