ST. LOUIS--(BUSINESS WIRE)--Feb. 16, 2012--
Build-A-Bear Workshop, Inc. (NYSE: BBW), an interactive entertainment
retailer, today reported results for the 2011 fourth quarter and full
year ended December 31, 2011.
Fourth Quarter Fiscal 2011 Highlights:
-
Consolidated net retail sales of $117.1 million represented a 5.8%
decline compared to the fourth quarter of 2010, excluding the impact
of foreign currency;
-
Consolidated comparable store sales declined 4.9% and included a 6.0%
decline in North America and a 0.6% decline in Europe;
-
Consolidated pre-tax income increased 6.3% to $9.8 million;
-
Loss per share of $0.56 compared to earnings per diluted share of
$0.42 in the fourth quarter of 2010. Fourth quarter net loss for 2011
included a $15.6 million non-cash income tax charge, or $0.93 per
share, related to a valuation allowance against net deferred tax
assets; and
-
Adjusted earnings per diluted share were $0.34, compared to adjusted
earnings per diluted share of $0.35 in the fourth quarter of 2010 (See
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)).
Fiscal Year 2011 Highlights
-
Consolidated net retail sales of $387.0 million were essentially flat
with fiscal 2010, excluding the impact of foreign currency;
-
Consolidated comparable store sales declined 2.1% and included a 2.5%
decline in North America and a 0.2% decline in Europe;
-
Loss per share of $0.98 compared to earnings per diluted share of
$0.01 in 2010. Net loss for 2011 included a $15.6 million non-cash
income tax charge, or $0.88 per share, related to a valuation
allowance against net deferred tax assets;
-
Adjusted loss per share of $0.03 compared to adjusted loss per share
of $0.03 in fiscal 2010 (See Reconciliation of Net Income (Loss) to
Adjusted Net Income (Loss)); and
-
Achieved cost savings of $3.0 million.
“While our annual net retail sales were essentially flat with the prior
year, I am disappointed to report a decrease in our fourth quarter sales
after the increases we achieved in the second and third quarters,”
stated Maxine Clark, Build-A-Bear Workshop Chief Executive Bear. “Our
key holiday products tied into major theatrical releases, a strategy
that has been highly successful for us in the past. However, the films
underperformed at the box office, which led to lower consumer demand and
negatively impacted our fourth quarter sales and earnings. On a positive
note, our gift card sales increased in 2011, reflecting the strength of
our experience and the subsequent redemptions have been a benefit for
our post-Christmas business.
“We have demonstrated that we have been able to grow our sales both in
our stores and online when we have the right product, make it easy for
Moms to say yes and deliver our signature Guest experience,” Ms. Clark
continued. “We also continue to focus on increasing the efficiency of
our business and expect to realize approximately $9 million in
additional cost savings in 2012, a portion of which will offset expected
product cost increases and support sales-driving marketing initiatives.
We remain confident that our strategies will drive long term value for
all Build-A-Bear Workshop stakeholders.”
Fiscal 2011 fourth-quarter (13 weeks ended December 31, 2011 compared
to 13 weeks ended January 1, 2011):
-
Total revenues were $119.1 million, compared to $125.8 million in the
fiscal 2010 fourth quarter. The fourth quarter of fiscal 2011 included
$1.5 million in net retail sales due to an adjustment to deferred
revenue related to the loyalty program, compared to a $4.3 million
adjustment in the fourth quarter of fiscal 2010. Excluding the impact
of foreign exchange, total revenues declined 6.0%.
-
Consolidated comparable store sales decreased 4.9%, including a 6.0%
decrease in North America and a 0.6% decrease in Europe.
-
Net retail sales from European operations totaled $27.0 million in the
2011 fourth quarter, compared to $25.5 million in the 2010 fourth
quarter, an increase of 5.9%. Excluding the impact of foreign
exchange, European operations net retail sales increased 6.2%.
-
Consolidated e-commerce sales rose 3.5%, excluding the impact of
foreign exchange.
-
Consolidated pre-tax income of $9.8 million increased 6.3% from $9.2
million in the fiscal 2010 fourth quarter.
Fiscal 2011 full-year (52 weeks ended December 31, 2011 compared to
52 weeks ended January 1, 2011):
-
Total revenues were $394.4 million compared to $401.5 million in the
fiscal 2010. Fiscal 2011 included $1.5 million in net retail sales due
to an adjustment to deferred revenue related to the loyalty program,
compared to a $4.3 million adjustment in fiscal 2010. Fiscal 2010
total revenues included $6.4 million from non-recurring commercial
transactions. Excluding the impact of foreign exchange and the
non-recurring commercial transactions in fiscal 2010, total revenues
declined 1.2%.
-
On a consolidated basis, comparable store sales declined 2.1% and
included a 2.5% decline in North America and a 0.2% decline in Europe.
-
Net retail sales from European operations totaled $74.6 million in
fiscal 2011, compared to $69.5 million in fiscal 2010, an increase of
7.3%. Excluding the impact of foreign exchange, European operations
net retail sales increased 3.9%.
-
Consolidated e-commerce sales rose 8.5%, excluding the impact of
foreign exchange.
-
Consolidated pre-tax loss was $2.7 million, compared to a pre-tax loss
of $2.5 million in fiscal 2010.
At year end the Company operated 346 company-owned stores – 288 in North
America and 58 in Europe, compared to 290 in North America and 54 in
Europe at the end of fiscal 2010. In fiscal 2011, the Company’s
international franchisees opened 16 stores, net of closures, finishing
the year with 79 stores.
Income Tax Valuation Allowance
In the fourth quarter of 2011, the Company recorded a valuation
allowance on its net deferred tax assets in the amount of $15.6 million.
The non-cash charge to establish a valuation allowance does not have any
impact on the Company’s consolidated operating income or cash flow, nor
does such an allowance preclude the Company from using the deferred tax
assets in the future. It is also important to note that the
establishment of this valuation allowance does not reflect a change in
the Company’s long-term outlook.
Balance Sheet
The Company ended the year with a strong balance sheet and no borrowings
under its revolving credit facility. As of December 31, 2011, cash and
cash equivalents totaled $46.4 million, nearly half of which was
domiciled outside the U.S. Inventory at fiscal 2011 year end was $51.9
million, representing a 12.5% increase on a per square foot basis, as
compared to year-end fiscal 2010.
In addition, at year end, the Company renewed its credit facility with
US Bank extending the expiration date from December 31, 2012 to December
31, 2013. Availability under the line of credit remains unchanged at $40
million for the first half of each calendar year with a $50 million
seasonal overline on the line of credit for the second half of each
calendar year.
In 2012, the Company expects to open four to six new stores, relocate
ten to fifteen stores, remodel approximately five stores in a new design
and close fifteen to twenty stores in North America. The Company’s
capital expenditures will be approximately $20 to $25 million in 2012,
compared to capital spending of $12 million in 2011, reflecting this
store activity and other investments in infrastructure. Depreciation and
amortization will be approximately $22 million, compared to $24 million
in 2011.
During fiscal 2011, the Company repurchased approximately 2.5 million
shares of its common stock at a total cost of $15 million. At year end,
the Company had $8.7 million of availability under the current stock
repurchase program.
2012 Objectives
To increase long-term shareholder value, the Company expects to:
-
Improve store productivity and profitability by closing fifteen
to twenty stores during the year, transferring a percentage of the
sales to other stores in the same markets. The Company will also
reduce the square footage of select stores by relocating them within
the same malls.
-
Introduce a new store design to enhance the bear-making
experience and drive store traffic and sales. The Company expects to
open approximately five of these stores in the second half of the year.
-
Increase shopping frequency by increasing new Guest traffic to
its stores, specifically targeting families with children, and by
refreshing its loyalty program to increase Guest retention.
-
Reinforce Build-A-Bear Workshop as the top destination for gifts,
capitalizing on its 15th birthday occasion to take this initiative to
an entirely new level.
-
Increase the Company’s global presence with the planned opening
of ten to twelve additional international franchise locations, net of
closures.
-
Improve cost efficiencies with approximately $9 million in
additional savings expected in fiscal 2012, a portion of which will
offset expected product cost increases and support sales-driving
marketing initiatives.
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. EST today. The audio broadcast may be
accessed at our investor relations Web site, http://IR.buildabear.com.
The call is expected to conclude by 10 a.m EST.
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 noon EST today until midnight EST
on February 23, 2012. The telephone replay is available by calling (858)
384-5517. The access code is 387275.
About Build-A-Bear Workshop, Inc.
Build-A-Bear Workshop, Inc. is the only global company that offers an
interactive make-your-own stuffed animal retail-entertainment
experience. There are more than 400 Build-A-Bear Workshop stores
worldwide, including company-owned stores in the U.S., Puerto Rico,
Canada, the United Kingdom and Ireland, and franchise stores in Europe,
Asia, Australia, Africa, the Middle East, Mexico and South America.
Founded in St. Louis in 1997, Build-A-Bear Workshop is the leader in
interactive retail. Brands include make-your-own Major League Baseball®
mascot in-stadium locations, and Build-A-Dino® stores. Build-A-Bear
Workshop extends its in-store interactive experience online with its
award winning virtual world Web site at bearville.com®.
The company was named to the FORTUNE 100 Best Companies to Work For®
list for the fourth year in a row in 2012. Build-A-Bear Workshop (NYSE:
BBW) posted total revenue of $394.4 million in fiscal 2011. For more
information, call 888.560.BEAR (2327) or visit the company's
award-winning Web site at buildabear.com®.
Forward-Looking Statements
This press release contains "forward-looking statements" (within the
meaning of the federal securities laws) which represent Build-A-Bear
Workshop expectations or beliefs with respect to future events. Our
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
our annual report on Form 10-K for the fiscal year ended January 1,
2011, as filed with the SEC, and the following: general global economic
conditions may continue to 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 be unable to generate
comparable store sales growth; the availability and costs of our
products could be adversely affected by risks associated with
international manufacturing and trade, including foreign currency
fluctuation; 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 be
unable to effectively manage the operations, growth and profitability of
our company-owned stores; we are susceptible to disruption in our
inventory flow due to our reliance on a few vendors; high petroleum
products prices could increase our inventory transportation costs and
adversely affect our profitability; we may be unable to effectively
manage our international franchises or laws relating to those franchises
may change; fluctuations in our quarterly results of operations could
cause the price of our common stock to substantially decline; 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; 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 improperly obtain or be unable to
protect information from our guests in violation of privacy or security
laws or expectations; we may suffer negative publicity or be sued due to
violations of labor laws or unethical practices by manufacturers of our
merchandise; 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; we may lose key personnel, be unable to
hire qualified additional personnel, or experience turnover of our
management team; we may be unable to operate our company-owned
distribution center efficiently or our third-party distribution center
providers may perform poorly; our market share could be adversely
affected by a significant, or increased, number of competitors; we may
fail to renew, register or otherwise protect our trademarks or other
intellectual property; we may have disputes with, or be sued by, third
parties for infringement or misappropriation of their proprietary
rights; and poor global economic conditions could have a material
adverse effect on our liquidity and capital resources. These risks,
uncertainties and other factors may adversely affect our business,
growth, financial condition or profitability, or subject us to potential
liability, and cause our actual results, performance or achievements to
be materially different from those expressed or implied by our
forward-looking statements. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
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 Ended December 31, 2011
|
|
% of Total Revenues(1)
|
|
|
13 Weeks Ended January 1, 2011
|
|
% of Total Revenues(1)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Net retail sales
|
|
$
|
117,112
|
|
|
98.3
|
|
$
|
123,200
|
|
|
97.9
|
|
Commercial revenue
|
|
|
941
|
|
|
0.8
|
|
|
1,658
|
|
|
1.3
|
|
Franchise fees
|
|
|
1,079
|
|
|
0.9
|
|
|
931
|
|
|
0.7
|
|
|
|
Total revenues
|
|
|
119,132
|
|
|
100.0
|
|
|
125,789
|
|
|
100.0
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of merchandise sold
|
|
|
66,504
|
|
|
56.3
|
|
|
67,405
|
|
|
54.0
|
|
Selling, general and administrative
|
|
|
42,714
|
|
|
35.9
|
|
|
48,863
|
|
|
38.8
|
|
Store preopening
|
|
|
156
|
|
|
0.1
|
|
|
365
|
|
|
0.3
|
|
Interest expense (income), net
|
|
|
(40
|
)
|
|
(0.0)
|
|
|
(59
|
)
|
|
(0.0)
|
|
|
|
Total costs and expenses
|
|
|
109,334
|
|
|
91.8
|
|
|
116,574
|
|
|
92.7
|
|
|
|
Income before income taxes
|
|
|
9,798
|
|
|
8.2
|
|
|
9,215
|
|
|
7.3
|
Income tax expense
|
|
|
18,787
|
|
|
15.8
|
|
|
935
|
|
|
0.7
|
|
|
|
Net income (loss)
|
|
$
|
(8,989
|
)
|
|
(7.5)
|
|
$
|
8,280
|
|
|
6.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.56
|
)
|
|
|
|
$
|
0.42
|
|
|
|
|
Diluted
|
|
$
|
(0.56
|
)
|
|
|
|
$
|
0.42
|
|
|
|
Shares used in computing common per share amounts:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
16,139,430
|
|
|
|
|
|
18,138,037
|
|
|
|
|
Diluted
|
|
|
16,139,430
|
|
|
|
|
|
18,178,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Selected statement of operations data expressed as a percentage of
total revenues, except cost of merchandise sold which is expressed
as a percentage of net retail sales and commercial revenue.
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52 Weeks Ended December 31, 2011
|
|
% of Total Revenues (1) |
|
|
52 Weeks Ended January 1, 2011
|
|
% of Total Revenues (1) |
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Net retail sales
|
$
|
387,041
|
|
|
98.1
|
|
$
|
387,163
|
|
|
96.4
|
|
Commercial revenue
|
|
3,943
|
|
|
1.0
|
|
|
11,246
|
|
|
2.8
|
|
Franchise fees
|
|
3,391
|
|
|
0.9
|
|
|
3,043
|
|
|
0.8
|
|
|
|
Total revenues
|
|
394,375
|
|
|
100.0
|
|
|
401,452
|
|
|
100.0
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of merchandise sold
|
|
234,227
|
|
|
59.9
|
|
|
239,556
|
|
|
60.1
|
|
Selling, general and administrative
|
|
162,334
|
|
|
41.2
|
|
|
163,910
|
|
|
40.8
|
|
Store preopening
|
|
547
|
|
|
0.1
|
|
|
708
|
|
|
0.2
|
|
Interest expense (income), net
|
|
(81
|
)
|
|
(0.0)
|
|
|
(250
|
)
|
|
(0.1)
|
|
|
|
Total costs and expenses
|
|
397,027
|
|
|
100.7
|
|
|
403,924
|
|
|
100.6
|
|
|
|
Loss before income taxes
|
|
(2,652
|
)
|
|
(0.7)
|
|
|
(2,472
|
)
|
|
(0.6)
|
Income tax expense (benefit)
|
|
14,410
|
|
|
3.7
|
|
|
(2,576
|
)
|
|
(0.6)
|
|
|
|
Net income (loss)
|
$
|
(17,062
|
)
|
|
(4.3)
|
|
$
|
104
|
|
|
(0.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.98
|
)
|
|
|
|
$
|
0.01
|
|
|
|
|
Diluted
|
$
|
(0.98
|
)
|
|
|
|
$
|
0.01
|
|
|
|
Shares used in computing common per share amounts:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
17,371,315
|
|
|
|
|
|
18,601,465
|
|
|
|
|
Diluted
|
|
17,371,315
|
|
|
|
|
|
18,653,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Selected statement of operations data expressed as a percentage of
total revenues, except cost of merchandise sold which is expressed
as a percentage of net retail sales and commercial revenue.
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 per share data)
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2011
|
|
January 1, 2011
|
ASSETS
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
46,367
|
|
|
$
|
58,755
|
|
Inventories
|
|
|
|
|
51,860
|
|
|
|
46,475
|
|
Receivables
|
|
|
|
|
7,878
|
|
|
|
7,923
|
|
Prepaid expenses and other current assets
|
|
|
|
|
17,854
|
|
|
|
18,425
|
|
Deferred tax assets
|
|
|
|
|
419
|
|
|
|
7,465
|
|
Total current assets
|
|
|
|
|
124,378
|
|
|
|
139,043
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
77,445
|
|
|
|
88,029
|
|
Goodwill
|
|
|
|
|
32,306
|
|
|
|
32,407
|
|
Other intangible assets, net
|
|
|
|
|
655
|
|
|
|
1,444
|
|
Other assets, net
|
|
|
|
|
6,787
|
|
|
|
14,871
|
|
Total Assets
|
|
|
|
$
|
241,571
|
|
|
$
|
275,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
41,032
|
|
|
$
|
36,325
|
|
Accrued expenses
|
|
|
|
|
12,128
|
|
|
|
15,488
|
|
Gift cards and customer deposits
|
|
|
|
|
28,323
|
|
|
|
28,880
|
|
Deferred revenue
|
|
|
|
|
5,285
|
|
|
|
6,679
|
|
Total current liabilities
|
|
|
|
|
86,768
|
|
|
|
87,372
|
|
|
|
|
|
|
|
|
Deferred franchise revenue
|
|
|
|
|
1,436
|
|
|
|
1,706
|
|
Deferred rent
|
|
|
|
|
23,867
|
|
|
|
28,642
|
|
Other liabilities
|
|
|
|
|
257
|
|
|
|
361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Common stock, par value $0.01 per share
|
|
|
|
|
174
|
|
|
|
196
|
|
Additional paid-in capital
|
|
|
|
|
65,400
|
|
|
|
76,582
|
|
Accumulated other comprehensive loss
|
|
|
|
|
(10,165
|
)
|
|
|
(9,959
|
)
|
Retained earnings
|
|
|
|
|
73,834
|
|
|
|
90,894
|
|
Total stockholders' equity
|
|
|
|
|
129,243
|
|
|
|
157,713
|
|
Total Liabilities and Stockholders' Equity
|
|
|
|
$
|
241,571
|
|
|
$
|
275,794
|
|
|
|
|
|
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES Unaudited
Selected Financial and Store Data (dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended December 31, 2011
|
|
|
13 Weeks Ended January 1, 2011
|
|
|
52 Weeks Ended December 31, 2011
|
|
|
52 Weeks Ended January 1, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail gross margin ($) (1)
|
|
$
|
50,735
|
|
|
$
|
56,331
|
|
|
$
|
154,468
|
|
|
$
|
155,128
|
|
|
Retail gross margin (%) (1)
|
|
|
43.3
|
%
|
|
|
45.7
|
%
|
|
|
39.9
|
%
|
|
|
40.1
|
%
|
|
E-commerce sales
|
|
$
|
5,800
|
|
|
$
|
5,611
|
|
|
$
|
13,216
|
|
|
$
|
12,120
|
|
|
Capital expenditures, net (2)
|
|
$
|
2,254
|
|
|
$
|
4,441
|
|
|
$
|
12,150
|
|
|
$
|
14,649
|
|
|
Depreciation and amortization
|
|
$
|
5,617
|
|
|
$
|
6,638
|
|
|
$
|
24,231
|
|
|
$
|
26,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store data (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of company-owned stores at end of period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
|
|
|
|
288
|
|
|
|
290
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
58
|
|
|
|
54
|
|
|
|
Total stores
|
|
|
|
|
|
|
|
|
346
|
|
|
|
344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of franchised stores at end of period
|
|
|
|
|
|
|
|
|
79
|
|
|
|
63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-owned store square footage at end of period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
|
|
|
|
830,437
|
|
|
|
841,600
|
|
|
|
Europe (4)
|
|
|
|
|
|
|
|
|
84,022
|
|
|
|
77,870
|
|
|
|
Total square footage
|
|
|
|
|
|
|
|
|
914,459
|
|
|
|
919,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net retail sales per gross square foot - North America (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store Age > 5 years (220 stores in 2011, 194 stores in 2010)
|
|
|
|
|
|
|
$
|
362
|
|
|
$
|
370
|
|
|
|
Store Age 3-5 years (56 stores in 2011, 71 stores in 2010)
|
|
|
|
|
|
|
$
|
315
|
|
|
$
|
321
|
|
|
|
Store Age <3 years (4 stores in 2011, 21 stores in 2010)
|
|
|
|
|
|
|
$
|
369
|
|
|
$
|
317
|
|
|
|
Stores open for the entire period
|
|
|
|
|
|
|
|
$
|
354
|
|
|
$
|
356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable store sales change - North America (%) (6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store Age > 5 years (220 stores in 2011, 194 stores in 2010)
|
|
|
|
|
|
|
|
(2.1
|
)%
|
|
|
(0.4
|
)%
|
|
|
Store Age 3-5 years (56 stores in 2011, 71 stores in 2010)
|
|
|
|
|
|
|
|
(5.1
|
)%
|
|
|
(3.3
|
)%
|
|
|
Store Age <3 years (4 stores in 2011, 21 stores in 2010)
|
|
|
|
|
|
|
|
1.0
|
%
|
|
|
(3.8
|
)%
|
|
|
Total comparable store sales change
|
|
|
(6.0
|
)%
|
|
|
(2.9
|
)%
|
|
|
(2.5
|
)%
|
|
|
(1.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable store sales change - Europe (%) (6)
|
|
|
(0.6
|
)%
|
|
|
(7.0
|
)%
|
|
|
(0.2
|
)%
|
|
|
(5.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable store sales change - Consolidated (%) (6)
|
|
|
(4.9
|
)%
|
|
|
(3.7
|
)%
|
|
|
(2.1
|
)%
|
|
|
(2.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, net represents cash paid for property,
equipment, other assets and other intangible assets.
|
(3)
|
Excludes our webstore and seasonal and event-based locations. 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, prior to 2011, France.
|
(4)
|
Square footage for stores located in Europe is estimated selling
square footage.
|
(5)
|
Net retail sales per gross square foot represents net retail sales
from stores open throughout the entire period divided by the total
gross square footage of such stores. Calculated on an annual basis
only.
|
(6)
|
Comparable store sales percentage changes are based on net retail
sales and stores are considered comparable beginning in their
thirteenth full month of operation.
|
|
|
* 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 earnings (loss) and earnings (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 share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended December 31, 2011
|
|
13 Weeks Ended January 1, 2011
|
|
52 Weeks Ended December 31, 2011
|
|
52 Weeks Ended January 1, 2011
|
Net income (loss)
|
|
$
|
(8,989
|
)
|
|
$
|
8,280
|
|
|
$
|
(17,062
|
)
|
|
$
|
104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax asset valuation allowance(1) |
|
|
15,565
|
|
|
|
|
|
15,565
|
|
|
|
|
Store asset impairment (2) |
|
|
285
|
|
|
|
455
|
|
|
|
285
|
|
|
|
455
|
|
|
Consulting project costs(3) |
|
|
-
|
|
|
|
-
|
|
|
|
1,692
|
|
|
|
-
|
|
|
Deferred revenue adjustment(4) |
|
|
(915
|
)
|
|
|
(2,635
|
)
|
|
|
(915
|
)
|
|
|
(2,635
|
)
|
|
France closing costs (5) |
|
|
-
|
|
|
|
770
|
|
|
|
-
|
|
|
|
1,605
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss)
|
|
$
|
5,946
|
|
|
$
|
6,870
|
|
|
$
|
(435
|
)
|
|
$
|
(471
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents non-cash charge to record a valuation allowance on all
U.S. net deferred tax assets
|
|
(2)
|
These impairments were due to poor perfomance of individual stores
|
|
(3)
|
Represents consulting fees related to the Company's cost reduction
initiatives undertaken in 2011
|
|
(4)
|
Represents adjustment to deferred revenue for changes in redemption
patterns in the customer loyalty program
|
|
(5)
|
Represents expenses incurred due to the closure of our three stores
in France in fiscal 2010 and includes asset impairment and disposal
charges, severance, lease termination and other fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended December 31, 2011
|
|
13 Weeks Ended January 1, 2011
|
|
52 Weeks Ended December 31, 2011
|
|
52 Weeks Ended January 1, 2011
|
Net income (loss)
|
|
$
|
(0.56
|
)
|
|
$
|
0.42
|
|
|
$
|
(0.98
|
)
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax asset valuation allowance(1) |
|
|
0.93
|
|
|
|
-
|
|
|
|
0.88
|
|
|
|
-
|
|
|
Store asset impairment (2) |
|
|
0.02
|
|
|
|
0.02
|
|
|
|
0.02
|
|
|
|
0.02
|
|
|
Consulting project costs(3) |
|
|
-
|
|
|
|
-
|
|
|
|
0.10
|
|
|
|
-
|
|
|
Deferred revenue adjustment(4) |
|
|
(0.05
|
)
|
|
|
(0.13
|
)
|
|
|
(0.05
|
)
|
|
|
(0.14
|
)
|
|
France closing costs (5) |
|
|
-
|
|
|
|
0.04
|
|
|
|
-
|
|
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss)
|
|
$
|
0.34
|
|
|
$
|
0.35
|
|
|
$
|
(0.03
|
)
|
|
$
|
(0.03
|
)
|

Source: Build-A-Bear Workshop, Inc.
Build-A-Bear Workshop Investors: Tina Klocke,
314-423-8000 x5210 or Media: Jill Saunders,
314-423-8000 x5293
|