Andrew Feshbach, CEO, stated, "We had a $1,000,000 increase in our operating loss, or $600,000 EBITDA decrease, this quarter versus last year which is primarily the result of an increase in depreciation, the decline in our Big Dogs business, and initial losses relating to our Steve Shoes acquisition. It should be noted that our first quarter results do not include sales generated by the Easter Holiday since the holiday fell in April and in our second quarter. Our second quarter business continues to reflect a similar trend as experienced in the first quarter."
The company recently signed a 10 year lease on a build to suit 229,500 square foot distribution center just outside of Charlotte, North Carolina. The facility is scheduled to come on line and transition our current 143,000 square foot distribution center located in Santa Fe Springs, California during the fourth quarter 2006.
The company will begin shipping from its new distribution center in January 2007 and is estimating a $4 million capital expenditures budget for this project. It will provide additional capacity for the company's continued growth as well as achieve cost efficiencies not available in our current distribution center.
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.
marketing@alchempro.com
