Design Within Reach, Inc. Reports Preliminary Results for Fourth Quarter and Year-Ended December 30, 2006

Business Wire,  March 29, 2007  

Tags: Company

• E-mail
• Print
• Link

As of December 30, 2006, Design Within Reach had approximately $7.0 million in cash and cash equivalents. The Company recently entered into a new $20 million, five year secured revolving credit facility including letters of credit of up to $5.0 million with Wells Fargo Retail Finance LLC. Borrowings under the facility are based upon a percentage of eligible inventory and accounts receivable less certain reserves. Design Within Reach believes that this expanded credit line, combined with cash on hand, will provide sufficient liquidity to fund operations and anticipated capital expenditures in 2007.

Guidance

Design Within Reach is maintaining its 2007 guidance. The Company expects to achieve approximately $190 million in sales and breakeven earnings.

Conference Call

Design Within Reach, Inc. will host a conference call today, March 29, 2007 at 1:30 p.m. Pacific (4:30 p.m. Eastern). The call, which will be hosted by Ray Brunner, President and Chief Executive Officer, and John Hellmann, Chief Financial Officer, will be broadcast live over the Internet and accessible through the Investor Relations section of the Company's website at www.dwr.com. The webcast will also be archived online within one hour of the completion of the conference call and available at www.dwr.com.

Non-GAAP Financial Information

This press release presents Product Margin, which is a non-GAAP financial measure within the meaning of applicable SEC rules and regulations. The Company believes Product Margin is a useful financial measure as it removes the impact to profitability from shipping revenues. Management believes shipping operations do not reflect the core operations of Design Within Reach's business and do not represent a profit center as shipping margins are expected to trend to zero. For a reconciliation of Product Margin to the most comparable GAAP measure, see the attached Reconciliation of GAAP Gross Margin to Product Margin.

[TABLE OMITTED]

About Design Within Reach, Inc.

Design Within Reach, Inc., founded in 1998 and headquartered in San Francisco, is an integrated multi-channel provider of distinctive modern design furnishings and accessories. The Company markets and sells its products to both residential and commercial customers nationwide through the DWR catalog, studios, website and direct sales force, and a single common "in stock and ready to ship" inventory.

"Design Within Reach" is a registered trademark of Design Within Reach, Inc.