-
Second quarter consolidated comparable store sales increase 8.7%
-
Retail gross margin expands 450 basis points to 43.5% from 39.0%
in the 2014 second quarter
-
First six months net income rises by $5.5 million to $6.2 million
ST. LOUIS--(BUSINESS WIRE)--Aug. 6, 2015--
Build-A-Bear Workshop, Inc. (NYSE:BBW) today reported results for the
2015 second quarter and twenty-six weeks ended July 4, 2015.
Second Quarter Fiscal 2015 Highlights (13 weeks ended July 4, 2015,
compared to the 13 weeks ended June 28, 2014):
-
Consolidated net retail sales increased to $80.3 million compared to
$75.4 million in the 2014 second quarter driven by improved comparable
stores sales, partially offset by a $1.6 million negative impact of
foreign exchange;
-
Consolidated comparable store sales increased 8.7% and included a 6.5%
increase in North America and an 18.2% increase in Europe. Second
quarter 2015 comparable store sales are compared to the thirteen-week
period ended July 5, 2014;
-
Retail gross margin expanded 450 basis points to 43.5% from 39.0% in
the 2014 second quarter;
-
Pre-tax loss was $438,000, a $3.5 million improvement from the 2014
second quarter; and
-
Net loss was $628,000, or $0.04 per share, a $3.7 million improvement
from a net loss of $4.3 million, or $0.25 per share in the 2014 second
quarter.
Sharon Price John, Build-A-Bear Workshop’s Chief Executive Officer
commented, “The disciplined management of our business combined with the
successful execution of our stated strategy drove strong sales growth
and improved profitability for the second quarter, marking our tenth
consecutive quarter of enhanced operating performance. We delivered
positive comparable store sales across geographies, increased retail
gross margin and achieved $6.6 million in pre-tax profit at the halfway
point of the year, the highest level since 2007, giving us solid
momentum going into the back half. We also opened the first store in our
new design as well as our first store in a true outlet concept as we
continue to update and evolve our real estate portfolio.
“We remain focused on our goal of sustained profitable growth with the
ongoing execution of our initiatives to make continuous improvement
throughout the business while establishing the foundation for strategic
expansion,” concluded Ms. John.
Additional Second Quarter Fiscal 2015 Highlights (13 weeks ended July
4, 2015, compared to the 13 weeks ended June 28, 2014):
-
Total revenues increased to $81.0 million compared to $76.2 million in
the 2014 second quarter, driven by improved comparable stores sales,
partially offset by a $1.6 million negative impact of foreign exchange;
-
Consolidated e-commerce sales rose 11.4% excluding the impact of
foreign exchange;
-
Selling, general and administrative expense (“SG&A”) totaled $35.9
million, or 44.4% of total revenues compared to $34.0 million, or
44.6% of total revenues in the 2014 second quarter; and
-
Adjusted net loss was $0.9 million or $0.05 per share, an improvement
from an adjusted net loss of $4.1 million, or $0.24 per share in the
2014 second quarter. (See Reconciliation of Net Income (Loss) to
Adjusted Net Income (Loss).)
First Six Months Fiscal 2015 Highlights (26 weeks ended July 4, 2015,
compared to the 26 weeks ended June 28, 2014):
-
Total revenues were $174.4 million compared to $174.2 million in the
first six months of 2014;
-
Consolidated net retail sales were $171.9 million, compared to $172.2
million in the first six months of 2014, as improved comparable stores
sales were offset by the negative impact of the one-week calendar
shift due to the 53rd week in fiscal 2014 and a $3.5 million dollar
negative foreign exchange impact. Excluding the impact of foreign
exchange, net retail sales increased 1.9% compared to the first six
months of 2014;
-
Consolidated comparable store sales increased 5.0% and included a 2.7%
increase in North America and a 15.7% increase in Europe. Comparable
store sales for the first six months of 2015 are compared to the
twenty-six week period ended July 5, 2014;
-
Consolidated e-commerce sales rose 9.9% excluding the impact of
foreign exchange;
-
Retail gross margin expanded 360 basis points to 45.2% from 41.6% in
the first six months of 2014;
-
SG&A was $73.2 million, or 42.0% of total revenues compared to $71.8
million, or 41.2% of total revenues in the first six months of 2014;
-
Pre-tax income was $6.6 million, an improvement from $1.3 million in
the first six months of 2014;
-
Net income was $6.2 million or $0.35 per diluted share, an improvement
from $722,000, or $0.04 per diluted share in the first six months of
2014; and
-
Adjusted net income was $7.1 million or $0.41 per diluted share, an
improvement from $1.0 million, or $0.06 per diluted share in the first
six months of 2014. (See Reconciliation of Net Income (Loss) to
Adjusted Net Income (Loss).)
Store Activity
During the quarter, the Company closed four stores and opened two to end
the period with 315 company-owned stores, including 255 in North America
and 60 in Europe. The Company’s international franchisees ended the 2015
second quarter with 67 stores in 12 countries.
Balance Sheet
The Company ended the 2015 second quarter with cash and cash equivalents
totaling $41.8 million and no borrowings under its revolving credit
facility. Total inventory at quarter end was $50.4 million. Inventory
per square foot increased 17.5% versus a 6.7% decrease at the end of the
second quarter of the prior year.
In 2015, the Company continues to expect capital expenditures to be
between $20 million and $25 million to support the refresh and opening
of stores, as well as investment in infrastructure. Depreciation and
amortization is expected to be between $16 million and $18 million.
Share Repurchase Activity
During the second quarter the Company repurchased approximately 373,000
shares of its common stock for an aggregate amount of $6.2 million,
leaving approximately $800,000 available under the $10 million share
repurchase program that was adopted by the Company’s Board of Directors
in February 2015.
On July 7, 2015, the Board adopted a new repurchase program, which
authorizes the Company to repurchase an incremental $10 million of its
common stock.
2015 Key Strategic Objectives:
To increase shareholder value, the Company expects to continue to
execute its “MORE x 4” strategic plan which includes continuous
improvement and strategic expansion initiatives in four areas with the
progress outlined below:
Expanding into More Places
The Company intends to continue to improve its real estate model by
strategically evolving its store portfolio to align with market trends
while selectively opening new locations and systematically refreshing
its store base. To this end, the Company opened the first store in its
new design in Salt Lake City, Utah which was developed to increase
productivity, optimize space and update the brand look. In addition, the
Company recently opened its first store in an outlet format in Rehoboth
Beach, Delaware and plans to add an additional six outlet stores in
North America and Europe in the back half of the year. The Company also
advanced its strategy to add non-traditional stores with its ongoing
partnership with Macy’s and expects to add at least six shop-in-shops
for the holiday season.
The Company expects to strategically expand its international presence
by leveraging the improving strength in its company-owned stores to
restructure and extend its international footprint. Select international
franchisees have started to apply the Company’s successful real estate
approach including opening pop up stores and adding shop-in-shops with
key partners and are expected to open between ten and fifteen
non-traditional stores in fiscal 2015.
Targeting More People
The Company intends to have continuous growth in its business with the
core three to twelve year-old consumer segment which represents a
majority of current revenue. The Company will focus on initiatives that
drive trial and increase repeat visits with an evolved segmentation,
product development and marketing strategy. The Company successfully
reached its older girl segment with the launch of its new proprietary
Promise Pets collection, expanded its offering to boys with additional
products from Marvel’s Avengers and introduced a line of Minions in
conjunction with Universal Studio’s film release which appealed across
all consumer segments.
The Company expects to strategically grow sales to consumers over twelve
years-old with a focus on key categories including gift-giving, affinity
and collectibles. This consumer segment currently represents over 20% of
sales and has a tendency to over-index on less price-sensitive
“gift-able” and on-line purchases. Therefore, the Company intends to
leverage its e-commerce business to efficiently target these consumers.
In the quarter, in advance of the introduction of the Company’s Star
Wars collection, it offered on-line exclusive pre-sale of select
products targeting the over-twelve affinity segment.
Developing More Products
The Company intends to make continuous improvements to its products by
developing high impact product stories coupled with integrated marketing
programs that tend to garner higher price points, drive add-on purchases
and create “play beyond the plush”. In conjunction with the successful
launch of its proprietary Promise Pets collection, the Company
introduced a mobile app that allows the child to virtually bring their
furry friend to life and enhances overall brand engagement. Since its
launch, users have engaged in over 350,000 play sessions.
The Company also plans to strategically expand its presence and create
new revenue and profit streams by launching an out-bound licensing
program to leverage its strong brand equity. Out-bound licensing will
enable the Company to extend its brand reach with new offerings in
relevant categories and will provide consumers with “products beyond the
plush”. To this end, the Company has completed agreements in several
categories including confections, snack food, e-cards and premium
children’s apparel.
Driving More Profitability
The Company intends to make continuing improvements in its value
engineering initiatives to further enhance product margins while
implementing new systems that should facilitate sales growth, increase
efficiency and improve long term profitability. Through these efforts,
the Company delivered pre-tax income of $6.6 million for the first six
months of fiscal 2015, an increase of $5.3 million over the prior year,
driven by a 360 basis point improvement in retail gross margin and an
increase in consolidated comparable store sales of 5.0% for the first
half of the year.
The Company expects to strategically expand its profitability by
prioritizing incremental growth initiatives, like those discussed above,
that leverage existing infrastructure, are primarily royalty-based,
and/or allow for discrete pricing and are therefore comparatively
margin-accretive.
Today’s Conference Call Webcast
Build-A-Bear Workshop will host a live Internet webcast of its quarterly
investor conference call at 9 a.m. ET today. The audio broadcast may be
accessed at the Company’s investor relations Web site, http://IR.buildabear.com.
The call is expected to conclude by 10 a.m. ET.
A replay of the conference call webcast will be available in the
investor relations Web site for one year. A telephone replay will be
available beginning at approximately 12 p.m. ET on August 6, 2015, until
12 a.m. ET on August 6, 2016. The telephone replay is available by
calling (858) 384-5517. The access code is 13614494.
About Build-A-Bear Workshop, Inc.:
Founded in St. Louis in 1997, Build-A-Bear Workshop, Inc. is the only
global company that offers an interactive make-your-own stuffed animal
retail-entertainment experience. There are approximately 400
Build-A-Bear Workshop stores worldwide, including company-owned stores
in the U.S., Puerto Rico, Canada, the United Kingdom, Ireland and
Denmark, and franchise stores in Europe, Asia, Australia, Africa, the
Middle East, and Mexico. The Company was named to the FORTUNE 100 Best
Companies to Work For list for the seventh year in a row in 2015.
Build-A-Bear Workshop (NYSE: BBW) posted total revenue of $392.4 million
in fiscal 2014. For more information, call 888.560.BEAR (2327) or visit
the Investor Relations section of its Web site at buildabear.com.
Forward-Looking Statements:
This press release contains forward looking statements that involve
risks and uncertainties and the Company’s actual results may differ
materially from the results discussed in the forward-looking statements.
These risks and uncertainties include, without limitation, those
detailed under the caption “Risk Factors” in the Company’s annual report
on Form 10-K for the year ended January 3, 2015, as filed with the SEC,
and the following:
-
general global economic conditions may deteriorate, which could lead
to disproportionately reduced consumer demand for our products, which
represent relatively discretionary spending;
-
customer traffic may decrease in the shopping malls where we are
located, on which we depend to attract guests to our stores;
-
we may be unable to generate interest in and demand for our
interactive retail experience, or to identify and respond to consumer
preferences in a timely fashion;
-
our marketing and on-line initiatives may not be effective in
generating sufficient levels of brand awareness and guest traffic;
-
we may improperly obtain or be unable to adequately protect customer
information in violation of privacy or security laws or customer
expectations;
-
we may be unable to generate comparable store sales growth;
-
we may be unable to effectively operate or manage the overall
portfolio of our company-owned stores;
-
we may be unable to renew or replace our store leases, or enter into
leases for new stores on favorable terms or in favorable locations, or
may violate the terms of our current leases;
-
we may not be able to operate our international company-owned
profitably;
-
the availability and costs of our products could be adversely affected
by risks associated with international manufacturing and trade,
including foreign currency fluctuation;
-
our products could become subject to recalls or product liability
claims that could adversely impact our financial performance and harm
our reputation among consumers;
-
we may lose key personnel, be unable to hire qualified additional
personnel, or experience turnover of our management team;
-
we are susceptible to disruption in our inventory flow due to our
reliance on a few vendors;
-
we may be unable to effectively manage our international franchises or
laws relating to those franchises may change;
-
we may fail to renew, register or otherwise protect our trademarks or
other intellectual property;
-
we are subject to risks associated with technology and digital
operations;
-
we may suffer negative publicity or be sued due to violations of labor
laws or unethical practices by manufacturers of our merchandise;
-
we may be unable to operate our company-owned distribution center
efficiently or our third-party distribution center providers may
perform poorly;
-
high petroleum products prices could increase our inventory
transportation costs and adversely affect our profitability;
-
our plans to leverage the Build-A-Bear brand to drive strategic
expansion may not be successful;
-
our market share could be adversely affected by a significant, or
increased, number of competitors;
-
we may suffer negative publicity or negative sales if the
non-proprietary toy products we sell in our stores do not meet our
quality or sales expectations;
-
poor global economic conditions could have a material adverse effect
on our liquidity and capital resources;
-
fluctuations in our quarterly results of operations could cause the
price of our common stock to substantially decline; and
-
we may be unable to repurchase shares of our common stock at the times
or in the amounts we currently anticipate or the results of the share
repurchase program may not be as beneficial as we currently anticipate.
All other brand names, product names, or trademarks belong to their
respective holders.
|
|
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
|
Unaudited Condensed Consolidated Statements of Operations
|
(dollars in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks
|
|
|
|
|
13 Weeks
|
|
|
|
|
|
|
Ended
|
|
|
|
|
Ended
|
|
|
|
|
|
|
July 4,
|
|
% of Total
|
|
|
June 28,
|
|
% of Total
|
|
|
|
|
2015
|
|
Revenues (1) |
|
|
2014
|
|
Revenues (1) |
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Net retail sales
|
|
|
$
|
80,279
|
|
|
99.1
|
|
$
|
75,351
|
|
|
98.8
|
Franchise fees
|
|
|
|
548
|
|
|
0.7
|
|
|
487
|
|
|
0.6
|
Commercial revenue
|
|
|
|
187
|
|
|
0.2
|
|
|
410
|
|
|
0.5
|
Total revenues
|
|
|
|
81,014
|
|
|
100.0
|
|
|
76,248
|
|
|
100.0
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of merchandise sold - retail (1) |
|
|
|
45,378
|
|
|
56.5
|
|
|
45,938
|
|
|
61.0
|
Cost of merchandise sold - commercial (1) |
|
|
|
183
|
|
|
97.9
|
|
|
161
|
|
|
39.3
|
Selling, general and administrative
|
|
|
|
35,933
|
|
|
44.4
|
|
|
34,044
|
|
|
44.6
|
Interest (income) expense, net
|
|
|
|
(42
|
)
|
|
(0.1)
|
|
|
64
|
|
|
0.1
|
Total costs and expenses
|
|
|
|
81,452
|
|
|
100.5
|
|
|
80,207
|
|
|
105.2
|
Loss before income taxes
|
|
|
|
(438
|
)
|
|
(0.5)
|
|
|
(3,959
|
)
|
|
(5.2)
|
Income tax expense
|
|
|
|
190
|
|
|
0.2
|
|
|
343
|
|
|
0.4
|
Net loss
|
|
|
$
|
(628
|
)
|
|
(0.8)
|
|
$
|
(4,302
|
)
|
|
(5.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.04
|
)
|
|
|
|
$
|
(0.25
|
)
|
|
|
Diluted
|
|
|
$
|
(0.04
|
)
|
|
|
|
$
|
(0.25
|
)
|
|
|
Shares used in computing common per share amounts:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
16,861,458
|
|
|
|
|
|
17,024,598
|
|
|
|
Diluted
|
|
|
|
16,861,458
|
|
|
|
|
|
17,024,598
|
|
|
|
|
|
|
|
|
(1)
|
|
Selected statement of operations data expressed as a percentage of
total revenues, except cost of merchandise sold - retail and cost of
merchandise sold - commercial that are expressed as a percentage of
net retail sales and commercial revenue, respectively. Percentages
will not total due to cost of merchandise sold being expressed as a
percentage of net retail sales and commercial revenue and immaterial
rounding.
|
|
|
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
|
Unaudited Condensed Consolidated Statements of Operations
|
(dollars in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26 Weeks
|
|
|
|
|
26 Weeks
|
|
|
|
|
|
|
Ended
|
|
|
|
|
Ended
|
|
|
|
|
|
|
July 4,
|
|
% of Total
|
|
|
June 28,
|
|
% of Total
|
|
|
|
|
2015
|
|
Revenues (1) |
|
|
2014
|
|
Revenues (1) |
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Net retail sales
|
|
|
$
|
171,943
|
|
|
98.6
|
|
$
|
172,191
|
|
98.9
|
Franchise fees
|
|
|
|
1,099
|
|
|
0.6
|
|
|
1,156
|
|
0.7
|
Commercial revenue
|
|
|
|
1,364
|
|
|
0.8
|
|
|
842
|
|
0.5
|
Total revenues
|
|
|
|
174,406
|
|
|
100.0
|
|
|
174,189
|
|
100.0
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of merchandise sold - retail (1) |
|
|
|
94,170
|
|
|
54.8
|
|
|
100,638
|
|
58.4
|
Cost of merchandise sold - commercial (1) |
|
|
|
542
|
|
|
39.7
|
|
|
359
|
|
42.6
|
Selling, general and administrative
|
|
|
|
73,173
|
|
|
42.0
|
|
|
71,844
|
|
41.2
|
Interest (income) expense, net
|
|
|
|
(93
|
)
|
|
(0.1)
|
|
|
2
|
|
0.0
|
Total costs and expenses
|
|
|
|
167,792
|
|
|
96.2
|
|
|
172,843
|
|
99.2
|
Income before income taxes
|
|
|
|
6,614
|
|
|
3.8
|
|
|
1,346
|
|
0.8
|
Income tax expense
|
|
|
|
420
|
|
|
0.2
|
|
|
624
|
|
0.4
|
Net income
|
|
|
$
|
6,194
|
|
|
3.6
|
|
$
|
722
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.36
|
|
|
|
|
$
|
0.04
|
|
|
Diluted
|
|
|
$
|
0.35
|
|
|
|
|
$
|
0.04
|
|
|
Shares used in computing common per share amounts:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
16,917,272
|
|
|
|
|
|
16,863,160
|
|
|
Diluted
|
|
|
|
17,162,024
|
|
|
|
|
|
17,097,263
|
|
|
|
|
|
|
(1)
|
|
Selected statement of operations data expressed as a percentage of
total revenues, except cost of merchandise sold - retail and cost of
merchandise sold - commercial that are expressed as a percentage of
net retail sales and commercial revenue, respectively. Percentages
will not total due to cost of merchandise sold being expressed as a
percentage of net retail sales and commercial revenue and immaterial
rounding.
|
|
|
|
|
|
|
|
|
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
|
|
|
Unaudited Condensed Consolidated Balance Sheets
|
|
|
(dollars in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 4,
|
|
|
January 3,
|
|
|
June 28,
|
|
|
|
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
|
|
ASSETS
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
41,813
|
|
|
|
$
|
65,389
|
|
|
|
$
|
41,762
|
|
|
|
Inventories
|
|
|
|
|
50,359
|
|
|
|
|
51,939
|
|
|
|
|
43,463
|
|
|
|
Receivables
|
|
|
|
|
7,693
|
|
|
|
|
11,461
|
|
|
|
|
9,307
|
|
|
|
Prepaid expenses and other current assets
|
|
|
|
|
14,173
|
|
|
|
|
15,611
|
|
|
|
|
10,394
|
|
|
|
Deferred tax assets
|
|
|
|
|
1,706
|
|
|
|
|
1,378
|
|
|
|
|
1,193
|
|
|
|
Total current assets
|
|
|
|
|
115,744
|
|
|
|
|
145,778
|
|
|
|
|
106,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
58,439
|
|
|
|
|
62,766
|
|
|
|
|
63,185
|
|
|
|
Other intangible assets, net
|
|
|
|
|
382
|
|
|
|
|
304
|
|
|
|
|
397
|
|
|
|
Other assets, net
|
|
|
|
|
3,019
|
|
|
|
|
3,206
|
|
|
|
|
3,630
|
|
|
|
Total Assets
|
|
|
|
$
|
177,584
|
|
|
|
$
|
212,054
|
|
|
|
$
|
173,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
23,140
|
|
|
|
$
|
38,107
|
|
|
|
$
|
25,447
|
|
|
|
Accrued expenses
|
|
|
|
|
13,269
|
|
|
|
|
24,058
|
|
|
|
|
11,961
|
|
|
|
Gift cards and customer deposits
|
|
|
|
|
29,746
|
|
|
|
|
34,268
|
|
|
|
|
27,547
|
|
|
|
Deferred revenue
|
|
|
|
|
2,596
|
|
|
|
|
2,654
|
|
|
|
|
4,243
|
|
|
|
Deferred tax liability
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
856
|
|
|
|
Total current liabilities
|
|
|
|
|
68,751
|
|
|
|
|
99,087
|
|
|
|
|
70,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred franchise revenue
|
|
|
|
|
836
|
|
|
|
|
945
|
|
|
|
|
1,064
|
|
|
|
Deferred rent
|
|
|
|
|
11,700
|
|
|
|
|
13,353
|
|
|
|
|
14,073
|
|
|
|
Other liabilities
|
|
|
|
|
1,113
|
|
|
|
|
1,044
|
|
|
|
|
602
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, par value $0.01 per share
|
|
|
|
|
170
|
|
|
|
|
174
|
|
|
|
|
176
|
|
|
|
Additional paid-in capital
|
|
|
|
|
60,536
|
|
|
|
|
69,362
|
|
|
|
|
70,730
|
|
|
|
Accumulated other comprehensive loss
|
|
|
|
|
(8,503
|
)
|
|
|
|
(8,698
|
)
|
|
|
|
(6,515
|
)
|
|
|
Retained earnings
|
|
|
|
|
42,981
|
|
|
|
|
36,787
|
|
|
|
|
23,147
|
|
|
|
Total stockholders' equity
|
|
|
|
|
95,184
|
|
|
|
|
97,625
|
|
|
|
|
87,538
|
|
|
|
Total Liabilities and Stockholders' Equity
|
|
|
|
$
|
177,584
|
|
|
|
$
|
212,054
|
|
|
|
$
|
173,331
|
|
|
|
|
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
|
Unaudited Selected Financial and Store Data
|
(dollars in thousands, except square foot data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks
|
|
|
13 Weeks
|
|
|
|
26 Weeks
|
|
|
26 Weeks
|
|
|
|
|
Ended
|
|
|
Ended
|
|
|
|
Ended
|
|
|
Ended
|
|
|
|
|
July 4,
|
|
|
June 28,
|
|
|
|
July 4,
|
|
|
June 28,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail gross margin ($) (1) |
|
|
$
|
34,901
|
|
$
|
29,413
|
|
|
$
|
77,773
|
|
$
|
71,553
|
Retail gross margin (%) (1) |
|
|
|
43.5%
|
|
|
39.0%
|
|
|
|
45.2%
|
|
|
41.6%
|
E-commerce sales
|
|
|
$
|
2,412
|
|
$
|
2,233
|
|
|
$
|
5,660
|
|
$
|
5,304
|
Capital expenditures, net (2) |
|
|
$
|
3,202
|
|
$
|
2,066
|
|
|
$
|
6,080
|
|
$
|
3,171
|
Depreciation and amortization
|
|
|
$
|
4,015
|
|
$
|
4,469
|
|
|
$
|
8,233
|
|
$
|
8,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store data (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of company-owned retail locations at end of period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
|
|
|
|
|
|
255
|
|
|
254
|
Europe
|
|
|
|
|
|
|
|
|
|
|
60
|
|
|
59
|
Total company-owned retail locations
|
|
|
|
|
|
|
|
|
|
|
315
|
|
|
313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of franchised stores at end of period
|
|
|
|
|
|
|
|
|
|
|
67
|
|
|
75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-owned store square footage at end of period (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
|
|
|
|
|
|
693,384
|
|
|
708,545
|
Europe
|
|
|
|
|
|
|
|
|
|
|
86,188
|
|
|
84,789
|
Total square footage
|
|
|
|
|
|
|
|
|
|
|
779,572
|
|
|
793,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable store sales change (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
6.5%
|
|
|
(4.0)%
|
|
|
|
2.7%
|
|
|
(2.8)%
|
Europe
|
|
|
|
18.2%
|
|
|
(8.1)%
|
|
|
|
15.7%
|
|
|
(5.5)%
|
Consolidated
|
|
|
|
8.7%
|
|
|
(4.9)%
|
|
|
|
5.0%
|
|
|
(3.4)%
|
|
|
|
|
(1)
|
|
Retail gross margin represents net retail sales less retail cost of
merchandise sold. Retail gross margin percentage represents retail
gross margin divided by net retail sales.
|
|
(2)
|
|
Capital expenditures represents cash paid for property, equipment,
other assets and other intangible assets.
|
|
(3)
|
|
Excludes our webstores. North American stores are located in the
United States, Canada and Puerto Rico. In Europe, stores are located
in the United Kingdom and Ireland and, beginning in 2015, Denmark.
|
|
(4)
|
|
Square footage for stores located in North America is leased square
footage. Square footage for stores located in Europe is estimated
selling square footage.
|
|
(5)
|
|
Comparable store sales percentage changes are based on net retail
sales and exclude the impact of foreign exchange. Stores are
considered comparable beginning in their thirteenth full month of
operation. Comparable store sales percentage changes for 2015 are
based on net retail sales as compared to the thirteen and
twenty-six-week periods ended July 5, 2014.
|
|
|
|
|
|
* Non-GAAP Financial Measures
|
|
|
|
|
In this press release, the Company’s financial results are provided
both in accordance with generally accepted accounting principles
(GAAP) and using certain non-GAAP financial measures. In particular,
the Company provides historic income (loss) and income (loss) per
diluted share adjusted to exclude certain costs and accounting
adjustments, which are non-GAAP financial measures. These results
are included as a complement to results provided in accordance with
GAAP because management believes these non-GAAP financial measures
help identify underlying trends in the Company’s business and
provide useful information to both management and investors by
excluding certain items that may not be indicative of the Company’s
core operating results. These measures should not be considered a
substitute for or superior to GAAP results.
|
|
|
|
|
|
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
|
|
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)
|
|
(dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks
|
|
|
13 Weeks
|
|
|
26 Weeks
|
|
|
26 Weeks
|
|
|
|
|
|
Ended
|
|
|
Ended
|
|
|
Ended
|
|
|
Ended
|
|
|
|
|
|
July 4,
|
|
|
June 28,
|
|
|
July 4,
|
|
|
June 28,
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Net income (loss)
|
|
|
|
$
|
(628
|
)
|
|
|
$
|
(4,302
|
)
|
|
|
$
|
6,194
|
|
|
$
|
722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange (gains) losses (1) |
|
|
|
|
(509
|
)
|
|
|
|
35
|
|
|
|
|
551
|
|
|
|
(164
|
)
|
|
Management transition costs(2) |
|
|
|
|
224
|
|
|
|
|
213
|
|
|
|
|
378
|
|
|
|
454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss)
|
|
|
|
$
|
(913
|
)
|
|
|
$
|
(4,054
|
)
|
|
|
$
|
7,123
|
|
|
$
|
1,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks
|
|
|
13 Weeks
|
|
|
26 Weeks
|
|
|
26 Weeks
|
|
|
|
|
|
Ended
|
|
|
Ended
|
|
|
Ended
|
|
|
Ended
|
|
|
|
|
|
July 4,
|
|
|
June 28,
|
|
|
July 4,
|
|
|
June 28,
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Net income (loss) per share
|
|
|
|
$
|
(0.04
|
)
|
|
|
$
|
(0.25
|
)
|
|
|
$
|
0.35
|
|
|
$
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange (gains) losses (1)
|
|
|
|
|
(0.02
|
)
|
|
|
|
0.00
|
|
|
|
|
0.03
|
|
|
|
(0.01
|
)
|
|
Management transition costs(2) |
|
|
|
|
0.01
|
|
|
|
|
0.01
|
|
|
|
|
0.03
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) per share
|
|
|
|
$
|
(0.05
|
)
|
|
|
$
|
(0.24
|
)
|
|
|
$
|
0.41
|
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Represents the impact of foreign exchange rates on the
re-measurement of balance sheet items not denominated in functional
currency. Amounts are presented net of applicable income tax.
|
|
|
|
(2)
|
|
Represents transition costs related to changes in executive
management. Costs include severance, along with benefits and related
taxes, relocation, executive search fees, signing bonus and
professional fees. Amounts are presented net of applicable income
tax.
|
|
|
|
|
|
|
|

View source version on businesswire.com: http://www.businesswire.com/news/home/20150806005410/en/
Source: Build-A-Bear Workshop, Inc.
Investors: Build-A-Bear Workshop Voin Todorovic, 314-423-8000
x5221
|