Dreams Obtains New Credit Facility - Analyst Blog
30 12월 2011 - 5:15PM
Zacks
Plantation, Florida-based
Dreams, Inc (DRJ) recently signed a secured line
of credit agreement worth $35 million. The new credit facility
replaces the company’s prior $27.5 million credit facility.
The new facility has been financed
by PNC Bank, a member of The PNC Financial Services Group,
Inc (PNC) and bears a time period of three years. PNC Bank
has also provided an advance of $5 million to ensure smooth
business transactions for the upcoming fourth quarter of
2011.
The company believes that the new
credit facility will strengthen its financial position and offer
future investment opportunities. Moreover, the new facility
increases the company’s available fund and reduces the burden of
interest expense.
In the recently concluded third
quarter 2011, Dreams reported loss of 2 cents per share, a penny
better than the Zacks Consensus Estimate. However, total revenue
jumped 23% to $24.4 million, benefiting from solid organic growth
from owned sites and growing Web syndication portfolio.
At quarter end, the company had
cash of $0.2 million. The long-term debt, less current portion of
the company as of September 30, 2011, was $1.4 million compared
with $1.7 million at December 31, 2010.
Dreams together with its
subsidiaries, engages in the manufacturing, distributing,
retailing, and selling sports licensed products, memorabilia, and
acrylic display cases through various channels, including Internet,
brick and mortar, catalogue, kiosks, and trade shows in North
America.
Dreams currently retain a Zacks #3
Rank, which translates into a short-term Hold rating. We are also
maintaining our long-term Neutral recommendation on the stock. One
of its competitors, Build-A-Bear Workshop Inc.
(BBW) holds a Zacks #1 Rank, implying a short-term Strong
Buy Rating.
BUILD-A-BEAR WK (BBW): Free Stock Analysis Report
DREAMS INC (DRJ): Free Stock Analysis Report
PNC FINL SVC CP (PNC): Free Stock Analysis Report
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