Dreams Obtains New Credit Facility - Analyst Blog

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

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More