DOVR » Topics » Overview

These excerpts taken from the DOVR 10-K filed Mar 31, 2009.
Overview
 
We are the leading specialty retailer and the largest direct marketer of equestrian products in the U.S. For over 30 years, Dover Saddlery has been a premier upscale marketing brand in the English-style riding industry. We sell our products through a multi-channel strategy. This multi-channel strategy has allowed us to use catalogs and our proprietary database of nearly two million names of equestrian enthusiasts as a primary marketing tool to increase catalog sales and to drive additional business to our e-commerce websites and retail stores.
 
In November of 2005, we took Dover Saddlery public using the Open IPO® process. The proceeds of that offering were used to retire debt and launch our retail rollout.
 
Our strategy for growth has been to open additional retail stores using our proprietary mathematical store optimization model to select the sites. Our initial target of 50 retail locations is now 25% complete, with 13 locations up and operating.
 
2008 was a difficult operating environment for our industry as a result of numerous external factors that led to all time historical lows in consumer confidence which resulted in a contraction in specialty retail consumer spending.
 
As a result, the Company has developed several short-term strategies to maintain or expand market share, reduce operating costs and reduce capital expenditures. In order to manage our way through these uncertain times, our retail expansion has been slowed and we will be extremely opportunistic in negotiating leases for the balance of 2009 and 2010. Management believes retail space lease costs will decline by 20% to 30% over the last quarter of 2009 and the first half of 2010. On a 10,000 square foot location, this is likely to lower the lease cost by approximately $5.00 per square foot or $50,000 annually resulting in enhanced store profitability for new stores opened with the lower lease cost.
 
Aggressive cost control has been employed to counter act the contraction in specialty retail consumer spending, which led to a 4.2% decrease in Dover’s total revenues, and a reduction in gross profits of $2.2 million. The result has been that we have been able to preserve a non-GAAP net income of $418,000, or $0.08 per diluted share, for the year ended December 31, 2008. The full year 2008 performance also generated an estimated federal taxable income of $775,000.
 
On a GAAP basis, the prior year 2007’s net income was $825,000 or $0.16 per diluted share and for 2008 a net loss of ($13.8) million or ($2.68) per diluted share The net loss in 2008 was due


31


Table of Contents

entirely to the non-cash, non-deductible goodwill impairment charge of $14.3 million in the fourth quarter. This is a non-cash charge which does not, by itself, impact the Company’s cash flow, future earning power, or ability to service our customers.
 
Below is a table for clarification showing the non-GAAP net income and earnings per share reconciliation. We believe that these non-GAAP measures supplement our GAAP financial information and provide useful measures for evaluating operating results and trends.
 
Overview
 
We are the leading specialty retailer and the largest direct marketer of equestrian products in the U.S. For over 30 years, Dover Saddlery has been a premier upscale marketing brand in the English-style riding industry. We sell our products through a multi-channel strategy. This multi-channel strategy has allowed us to use catalogs and our proprietary database of nearly two million names of equestrian enthusiasts as a primary marketing tool to increase catalog sales and to drive additional business to our e-commerce websites and retail stores.
 
In November of 2005, we took Dover Saddlery public using the Open IPO® process. The proceeds of that offering were used to retire debt and launch our retail rollout.
 
Our strategy for growth has been to open additional retail stores using our proprietary mathematical store optimization model to select the sites. Our initial target of 50 retail locations is now 25% complete, with 13 locations up and operating.
 
2008 was a difficult operating environment for our industry as a result of numerous external factors that led to all time historical lows in consumer confidence which resulted in a contraction in specialty retail consumer spending.
 
As a result, the Company has developed several short-term strategies to maintain or expand market share, reduce operating costs and reduce capital expenditures. In order to manage our way through these uncertain times, our retail expansion has been slowed and we will be extremely opportunistic in negotiating leases for the balance of 2009 and 2010. Management believes retail space lease costs will decline by 20% to 30% over the last quarter of 2009 and the first half of 2010. On a 10,000 square foot location, this is likely to lower the lease cost by approximately $5.00 per square foot or $50,000 annually resulting in enhanced store profitability for new stores opened with the lower lease cost.
 
Aggressive cost control has been employed to counter act the contraction in specialty retail consumer spending, which led to a 4.2% decrease in Dover’s total revenues, and a reduction in gross profits of $2.2 million. The result has been that we have been able to preserve a non-GAAP net income of $418,000, or $0.08 per diluted share, for the year ended December 31, 2008. The full year 2008 performance also generated an estimated federal taxable income of $775,000.
 
On a GAAP basis, the prior year 2007’s net income was $825,000 or $0.16 per diluted share and for 2008 a net loss of ($13.8) million or ($2.68) per diluted share The net loss in 2008 was due


31


Table of Contents

entirely to the non-cash, non-deductible goodwill impairment charge of $14.3 million in the fourth quarter. This is a non-cash charge which does not, by itself, impact the Company’s cash flow, future earning power, or ability to service our customers.
 
Below is a table for clarification showing the non-GAAP net income and earnings per share reconciliation. We believe that these non-GAAP measures supplement our GAAP financial information and provide useful measures for evaluating operating results and trends.
 
Overview


 



We are the leading specialty retailer and the largest direct
marketer of equestrian products in the U.S. For over
30 years, Dover Saddlery has been a premier upscale
marketing brand in the English-style riding industry. We sell
our products through a multi-channel strategy. This
multi-channel strategy has allowed us to use catalogs and our
proprietary database of nearly two million names of equestrian
enthusiasts as a primary marketing tool to increase catalog
sales and to drive additional business to our
e-commerce
websites and retail stores.


 



In November of 2005, we took Dover Saddlery public using the
Open
IPO®

process. The proceeds of that offering were used to retire debt
and launch our retail rollout.


 



Our strategy for growth has been to open additional retail
stores using our proprietary mathematical store optimization
model to select the sites. Our initial target of 50 retail
locations is now 25% complete, with 13 locations up and
operating.


 



2008 was a difficult operating environment for our industry
as a result of numerous external factors that led to all time
historical lows in consumer confidence which resulted in a
contraction in specialty retail consumer spending.


 



As a result, the Company has developed several short-term
strategies to maintain or expand market share, reduce operating
costs and reduce capital expenditures. In order to manage our
way through these uncertain times, our retail expansion has been
slowed and we will be extremely opportunistic in negotiating
leases for the balance of 2009 and 2010. Management believes
retail space lease costs will decline by 20% to 30% over the
last quarter of 2009 and the first half of 2010. On a
10,000 square foot location, this is likely to lower the
lease cost by approximately $5.00 per square foot or $50,000
annually resulting in enhanced store profitability for new
stores opened with the lower lease cost.


 



Aggressive cost control has been employed to counter act the
contraction in specialty retail consumer spending, which led to
a 4.2% decrease in Dover’s total revenues, and a reduction
in gross profits of $2.2 million. The result has been that
we have been able to preserve a non-GAAP net income of $418,000,
or $0.08 per diluted share, for the year ended December 31,
2008. The full year 2008 performance also generated an estimated
federal taxable income of $775,000.


 



On a GAAP basis, the prior year 2007’s net income was
$825,000 or $0.16 per diluted share and for 2008 a net loss of
($13.8) million or ($2.68) per diluted share The net loss
in 2008 was due





31





Table of Contents






entirely to the non-cash, non-deductible goodwill impairment
charge of $14.3 million in the fourth quarter. This is a
non-cash charge which does not, by itself, impact the
Company’s cash flow, future earning power, or ability to
service our customers.


 



Below is a table for clarification showing the non-GAAP net
income and earnings per share reconciliation. We believe that
these non-GAAP measures supplement our GAAP financial
information and provide useful measures for evaluating operating
results and trends.


 




Overview


 



We are the leading specialty retailer and the largest direct
marketer of equestrian products in the U.S. For over
30 years, Dover Saddlery has been a premier upscale
marketing brand in the English-style riding industry. We sell
our products through a multi-channel strategy. This
multi-channel strategy has allowed us to use catalogs and our
proprietary database of nearly two million names of equestrian
enthusiasts as a primary marketing tool to increase catalog
sales and to drive additional business to our
e-commerce
websites and retail stores.


 



In November of 2005, we took Dover Saddlery public using the
Open
IPO®

process. The proceeds of that offering were used to retire debt
and launch our retail rollout.


 



Our strategy for growth has been to open additional retail
stores using our proprietary mathematical store optimization
model to select the sites. Our initial target of 50 retail
locations is now 25% complete, with 13 locations up and
operating.


 



2008 was a difficult operating environment for our industry
as a result of numerous external factors that led to all time
historical lows in consumer confidence which resulted in a
contraction in specialty retail consumer spending.


 



As a result, the Company has developed several short-term
strategies to maintain or expand market share, reduce operating
costs and reduce capital expenditures. In order to manage our
way through these uncertain times, our retail expansion has been
slowed and we will be extremely opportunistic in negotiating
leases for the balance of 2009 and 2010. Management believes
retail space lease costs will decline by 20% to 30% over the
last quarter of 2009 and the first half of 2010. On a
10,000 square foot location, this is likely to lower the
lease cost by approximately $5.00 per square foot or $50,000
annually resulting in enhanced store profitability for new
stores opened with the lower lease cost.


 



Aggressive cost control has been employed to counter act the
contraction in specialty retail consumer spending, which led to
a 4.2% decrease in Dover’s total revenues, and a reduction
in gross profits of $2.2 million. The result has been that
we have been able to preserve a non-GAAP net income of $418,000,
or $0.08 per diluted share, for the year ended December 31,
2008. The full year 2008 performance also generated an estimated
federal taxable income of $775,000.


 



On a GAAP basis, the prior year 2007’s net income was
$825,000 or $0.16 per diluted share and for 2008 a net loss of
($13.8) million or ($2.68) per diluted share The net loss
in 2008 was due





31





Table of Contents






entirely to the non-cash, non-deductible goodwill impairment
charge of $14.3 million in the fourth quarter. This is a
non-cash charge which does not, by itself, impact the
Company’s cash flow, future earning power, or ability to
service our customers.


 



Below is a table for clarification showing the non-GAAP net
income and earnings per share reconciliation. We believe that
these non-GAAP measures supplement our GAAP financial
information and provide useful measures for evaluating operating
results and trends.


 




EXCERPTS ON THIS PAGE:

10-K (4 sections)
Mar 31, 2009
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki