Dover Saddlery Inc. (DOVR, Financial) filed Quarterly Report for the period ended 2010-03-31.
Dover Saddlery Inc. has a market cap of $17.1 million; its shares were traded at around $3.3 with a P/E ratio of 19.4 and P/S ratio of 0.2. DOVR is in the portfolios of Chuck Royce of Royce& Associates.
Our total revenues were $16.2 million for the three months ended March 31, 2010, down from $16.4 million for the corresponding period in 2009, a decrease of $0.2 million or 1.1%. Revenues in our direct market channel were $11.7 million, in line with the corresponding period in 2009. Revenues in our retail market channel decreased $0.2 million, or 3.3%, to $4.5 million. The small decrease in our direct market channel revenue represents some improvements in consumer spending, with fewer catalogs mailed. The decrease in revenues from our retail market channel was due primarily to continued softness in same store sales as the economy begins to recover. Same store sales decreased 4.3% over prior year, attributable to the lingering effects of the recession and severe winter weather which forced a significant number of store closings.
The net loss for the first quarter of 2010 improved 67% to $(193,000), compared to $(590,000) in the first quarter of 2009. This reduction in the net loss of 67% was due primarily to improved margins and substantial reductions in SG&A spending. The resulting quarterly loss per share improved to $(0.04) in the first quarter of 2010 compared to $(0.11) per share for the corresponding period in 2009.
Cash utilized in our operating activities for the three months ended March 31, 2010 was $1.3 million compared to $2.3 million for the corresponding period in 2009. For the three months ended March 31, 2010, cash outflows consisted primarily of seasonal increases in prepaid catalogs and other current assets of $0.6 million, inventory increases of $0.4 million, as well as reductions in accrued expenses, other current liabilities and income taxes payable of $0.7 million. The results of operations consisted of the net loss, non-cash expenses of depreciation, amortization, non-cash interest and other expenses, totaling $0.1 million of cash. For the three months ended March 31, 2009, cash utilized by our operating activities was $2.3 million. Cash outflows consisted primarily of seasonal increases in prepaid catalogs and other current assets of $1.3 million, inventory increases of $1.1 million due to seasonal expansion and the opening of one new store, as well as reductions in accrued expenses, other current liabilities and income taxes payable of $0.5 million. The results of operations consisted of the net loss, non-cash expenses of depreciation, amortization, non-cash interest and other expenses, generating $0.1 million of cash.
Net cash provided by our financing activities was $1.1 million for the three months ended March 31, 2010, compared to $2.3 million provided in the corresponding period in 2009. For the three months ended March 31, 2010, we funded our seasonal operating activities and investing activities with net borrowings of $1.3 million under our revolving credit facility. For the three months ended March 31, 2009, we funded our seasonal operating and investing activities with net borrowings of $2.3 million under our revolving credit facility.
On March 27, 2009, the Company amended its senior revolving credit facility with RBS Citizens Bank N.A. to adjust various covenant levels for fiscal year 2009, due to the on-going impact of the economic recession. In addition, the maximum amount to be borrowed was reduced from $18,000,000 to $14,000,000 in 2009, through June 2010, and will then reduce to $13,000,000 on June 30, 2010. As of March 31, 2010, the revolving credit facility borrowing limit was $14,000,000, subject to certain covenants, and the amount outstanding under the credit facility was $4,300,000 at the net revolver rate of 3.19%, and the unused amount available was $9,700,000. Borrowings are secured by substantially all of the Companys assets. Under the terms of this credit facility, the Company is subject to various covenants. At March 31, 2010, the Company was in compliance with all of the original covenants under the credit facility. The Company and the bank amended the senior revolving credit agreement on May 10, 2010 to extend the loan, originally due in full in January 2011, to May, 2011.
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Dover Saddlery Inc. has a market cap of $17.1 million; its shares were traded at around $3.3 with a P/E ratio of 19.4 and P/S ratio of 0.2. DOVR is in the portfolios of Chuck Royce of Royce& Associates.
Highlight of Business Operations:
The Company reported a net loss in the first quarter of 2010 of $(193,000) or $(0.04) per share, compared to a loss of $(590,000) or $(0.11) per share for the corresponding period in 2009, an improvement of 67%.Our total revenues were $16.2 million for the three months ended March 31, 2010, down from $16.4 million for the corresponding period in 2009, a decrease of $0.2 million or 1.1%. Revenues in our direct market channel were $11.7 million, in line with the corresponding period in 2009. Revenues in our retail market channel decreased $0.2 million, or 3.3%, to $4.5 million. The small decrease in our direct market channel revenue represents some improvements in consumer spending, with fewer catalogs mailed. The decrease in revenues from our retail market channel was due primarily to continued softness in same store sales as the economy begins to recover. Same store sales decreased 4.3% over prior year, attributable to the lingering effects of the recession and severe winter weather which forced a significant number of store closings.
The net loss for the first quarter of 2010 improved 67% to $(193,000), compared to $(590,000) in the first quarter of 2009. This reduction in the net loss of 67% was due primarily to improved margins and substantial reductions in SG&A spending. The resulting quarterly loss per share improved to $(0.04) in the first quarter of 2010 compared to $(0.11) per share for the corresponding period in 2009.
Cash utilized in our operating activities for the three months ended March 31, 2010 was $1.3 million compared to $2.3 million for the corresponding period in 2009. For the three months ended March 31, 2010, cash outflows consisted primarily of seasonal increases in prepaid catalogs and other current assets of $0.6 million, inventory increases of $0.4 million, as well as reductions in accrued expenses, other current liabilities and income taxes payable of $0.7 million. The results of operations consisted of the net loss, non-cash expenses of depreciation, amortization, non-cash interest and other expenses, totaling $0.1 million of cash. For the three months ended March 31, 2009, cash utilized by our operating activities was $2.3 million. Cash outflows consisted primarily of seasonal increases in prepaid catalogs and other current assets of $1.3 million, inventory increases of $1.1 million due to seasonal expansion and the opening of one new store, as well as reductions in accrued expenses, other current liabilities and income taxes payable of $0.5 million. The results of operations consisted of the net loss, non-cash expenses of depreciation, amortization, non-cash interest and other expenses, generating $0.1 million of cash.
Net cash provided by our financing activities was $1.1 million for the three months ended March 31, 2010, compared to $2.3 million provided in the corresponding period in 2009. For the three months ended March 31, 2010, we funded our seasonal operating activities and investing activities with net borrowings of $1.3 million under our revolving credit facility. For the three months ended March 31, 2009, we funded our seasonal operating and investing activities with net borrowings of $2.3 million under our revolving credit facility.
On March 27, 2009, the Company amended its senior revolving credit facility with RBS Citizens Bank N.A. to adjust various covenant levels for fiscal year 2009, due to the on-going impact of the economic recession. In addition, the maximum amount to be borrowed was reduced from $18,000,000 to $14,000,000 in 2009, through June 2010, and will then reduce to $13,000,000 on June 30, 2010. As of March 31, 2010, the revolving credit facility borrowing limit was $14,000,000, subject to certain covenants, and the amount outstanding under the credit facility was $4,300,000 at the net revolver rate of 3.19%, and the unused amount available was $9,700,000. Borrowings are secured by substantially all of the Companys assets. Under the terms of this credit facility, the Company is subject to various covenants. At March 31, 2010, the Company was in compliance with all of the original covenants under the credit facility. The Company and the bank amended the senior revolving credit agreement on May 10, 2010 to extend the loan, originally due in full in January 2011, to May, 2011.
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