A partnership with the city of Miami to sell off Orange Bowl memorabilia helped stem the tide of operating losses at sports memorabilia power Dreams, Inc. Revenues were up.
Dreams, Inc., parent company of Mounted Memories, Pro Sports Memorabilia and Fans Edge, has announced its financial results for the quarter ended March 31, 2008.
Revenues were up 26% to a record $18.5 million, over revenues of $14.6 million for the same quarter in 2007. Net losses for the period were down 46% to $240,000 for the quarter ended March 31, 2008, compared to net losses of $447,000 for the same quarter last year.
Historically, Dreams business has been highly seasonal with a greater portion of revenues and operating profits occurring in the fourth quarter thanks to holiday shopping. The quarter ending March 31 has then traditionally been a challenging one for the company.
"We were pleased with our 26% growth in revenue and 46% improvement in net losses over the comparable quarter. Our financial results were better than budget with growth fueled by the high profile Orange Bowl Stadium project, where Dreams was selected as the City of Miami’s asset recovery partner," said Ross Tannenbaum, Dreams’ President & CEO.
"Our team at Mounted Memories designed, manufactured and marketed a series of "one-of-a-kind" Orange Bowl Stadium items along with dozens of uniquely designed authentic collectibles commemorating the 70 historic years of Orange Bowl memories."
Tannenbaum said the increase in revenues was the continued success the company is experiencing with on-line sales of its products. The Internet division was up 49%, primarily through FansEdge.com.
Tannenbaum reported the company’s manufacturing/distribution segment, led by Mounted Memories, experienced a record quarter with more than $1.2 million in operating profits, versus $266,000 in operating profits for the same quarter last year.
"We are particularly encouraged by the 56% increase of inter-company sales to $1.2 million in the period, versus $791,000 for the same quarter last year," he said in a news release.
"Our overall objective of establishing a market leading totally licensed, sports and entertainment products enterprise and true multi-channel retailer is well served by the investments made and strategic initiatives taken by the Company these past few years. We expect to open our first FansEdge brick & mortar retail outlet in the next few weeks in the Chicago area and remain on track for further FansEdge store expansions in Chicago later this year.