DREAMS INC

CIK:0000810829|SEC Filings

Condensed Consolidated Statements Of Operations (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Revenues:
Manufacturing/Distribution	$ 2,751	$ 3,279
Retail	26,697	20,224
Other - Fees	74	28
Total Revenues	29,522	23,531
Expenses:
Cost of sales-mfg/distribution	1,548	1,884
Cost of sales-retail	14,289	10,983
Operating expenses	13,880	12,026
Depreciation and amortization	721	642
Total Expenses	30,438	25,535
(Loss) from operations	(916)	(2,004)
Interest (expense), net	(177)	(124)
(Loss) before income taxes	(1,093)	(2,128)
Provision for income tax benefit	420	856
Net (loss)	(673)	(1,272)
Loss attributable to non-controlling interest	21	26
Net (loss) attributable to Dreams, Inc.	$ (652)	$ (1,246)
(Loss) per share:
Basic: (Loss) per share	$ (0.01)	$ (0.03)
Weighted average shares outstanding - Basic	44,662,586	44,493,881
Diluted: (Loss) per share	$ (0.01)	$ (0.03)
Weighted average shares outstanding - Diluted	45,110,284	45,107,192

Condensed Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Cash Flows from Operating Activities
Net (Loss)	$ (652)	$ (1,246)
Loss attributable to non-controlling interest	(21)	(26)
Adjustments to reconcile net (loss) to net cash used in operating activities:
Depreciation	669	501
Amortization	52	140
Loan cost amortization	16	24
Net loss from sale of property and equipment		20
Stock based compensation	33
Deferred tax benefit, net	(422)	(853)
(Increase) decrease in:
Accounts receivable	6,058	6,042
Inventories	(2,409)	(1,029)
Prepaid expenses and other current assets	(251)	(35)
Increase (decrease) in:
Accounts payable	(9,297)	(8,962)
Accrued liabilities	(4,786)	(4,922)
Deferred revenues	(1,305)	(1,235)
Net cash (used in) operating activities	(12,315)	(11,581)
Cash Flows from Investing Activities
Purchase of property and equipment	(386)	(406)
Proceeds from notes receivable	54
Net cash (used in) investing activities	(332)	(406)
Cash Flows from Financing Activities
Deferred loan costs	(25)
Proceeds from stock option exercise	3	270
Repayment of Capital lease	(137)	(20)
Repayment of Notes payable	(25)	(49)
Net cash provided by financing activities	11,471	11,737
Net (decrease) in cash	(1,176)	(250)
Cash at beginning of period	1,860	440
Cash at end of period	684	190
Cash paid for interest during the period	112	100
Cash paid for taxes during the period	460	369
Supplemental Disclosure of Non Cash Financing Activity
Borrowings on Capital Lease	185
PNC Bank [Member]
Cash Flows from Financing Activities
Proceeds from Line of Credit	47,570
Pay down on Line of Credit	(35,915)
Regions Bank [Member]
Cash Flows from Financing Activities
Proceeds from Line of Credit		39,393
Pay down on Line of Credit		$ (27,857)

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
ASSETS
Cash	$ 684	$ 1,860
Accounts receivable, net	5,532	11,590
Notes receivable, net	107	131
Inventories	47,104	44,695
Prepaid expenses and other current assets	3,311	3,060
Deferred tax asset	1,380	1,396
Total current assets	58,118	62,732
Property and equipment, net	6,697	6,795
Deferred loan costs	194	185
Notes receivable	91	121
Other intangible assets, net	5,686	5,738
Goodwill, net	8,650	8,650
Other assets	9	9
Total assets	79,445	84,230
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	9,589	18,886
Accrued liabilities	5,032	9,818
Current portion of long-term debt	250	275
Borrowings against line of credit	22,155	10,500
Capital lease obligations, current	325	445
Deferred revenues	592	1,897
Total current liabilities	37,943	41,821
Long-term debt, less current portion	1,418	1,418
Capital lease obligation	866	698
Long-term deferred tax liability	3,143	3,581
Total Liabilities	43,370	47,518
Stockholders' equity:
Preferred stock authorized 10,000,000, issued and outstanding -0- shares
Common stock and additional paid-in capital, no par value; authorized 100,000,000 shares; shares issued and outstanding 44,670,304 and 44,662,579 shares as of March 31, 2012 and December 31, 2011, respectively	44,215	44,179
Treasury stock 38,400 issued as of March 31, 2012 and December 31, 2011	(46)	(46)
Accumulated deficit	(8,006)	(7,354)
Non-controlling interest in subsidiaries	(88)	(67)
Total stockholders' equity	36,075	36,712
Total liabilities and stockholders' equity	$ 79,445	$ 84,230