-
Consolidated comparable store sales increases 6.4%
-
Gross margin expands 360 basis points to 40.1% from 36.5% in the
2012 third quarter
-
Pre-tax loss improves to $1.1 million from a pre-tax loss of $4.5
million in the 2012 third quarter
ST. LOUIS--(BUSINESS WIRE)--Oct. 24, 2013--
Build-A-Bear Workshop, Inc. (NYSE:BBW), an interactive entertainment
retailer, today reported results for the third quarter and first nine
months ended September 28, 2013.
Third Quarter 2013 Highlights (13 weeks ended September 28, 2013):
-
Consolidated net retail sales were $83.6 million while operating 31
fewer stores compared to $84.3 million in the fiscal 2012 third
quarter, a decrease of 0.9%, excluding the impact of foreign exchange;
-
Consolidated comparable store sales increased 6.4% and included a 7.6%
increase in North America and a 2.3% increase in Europe;
-
Retail gross margin expanded 360 basis points to 40.1%, compared to
36.5% in the 2012 third quarter;
-
Pre-tax loss improved to $1.1 million, including $0.6 million in
management transition and store closing costs, from a pre-tax loss of
$4.5 million in the 2012 third quarter;
-
Net loss was $1.4 million, or $0.08 per share, an improvement from a
net loss of $4.3 million, or $0.26 per share in the fiscal 2012 third
quarter; and
-
Adjusted net loss was $0.8 million, or $0.05 per share, an improvement
from adjusted net loss of $4.2 million or $0.25 per share in the
fiscal 2012 third quarter. (See Reconciliation of Net Loss to Adjusted
Net Loss.)
Sharon Price John, Build-A-Bear Workshop’s Chief Executive Officer and
Chief President Bear commented, “The third quarter marked our fourth
consecutive period of comparable store sales growth in North America and
our third consecutive increase in Europe. Stronger same store sales
productivity, along with reduced promotions and disciplined expense
management, drove an improvement in our operating performance.
“We have a solid plan in place and I expect to capitalize on the
upcoming holiday season with compelling product and marketing
initiatives. We are establishing a foundation to deliver our stated
objective of sustainable profitable growth and will continue to leverage
the strength of the Build-A-Bear Workshop brand, our core competencies
and infrastructure to increase shareholder value,” Ms. John concluded.
Additional Third Quarter 2013 Details:
-
Total revenues were $84.8 million while operating 31 fewer stores
compared to $86.0 million in the 2012 third quarter, a decrease of
2.0%, excluding the impact of foreign exchange;
-
Consolidated e-commerce sales rose 1.1%, excluding the impact of
foreign exchange;
-
Selling, general and administrative expense (“SG&A”) was $35.8
million, or 42.2% of total revenues, including $0.6 million in
management transition and store closing expenses. This compares to
$36.6 million, or 42.5% of total revenues in the fiscal 2012 third
quarter.
First Nine Months 2013 (39 weeks ended September 28, 2013):
-
Total revenues were $271.0 million while operating 31 fewer stores
compared to $262.8 million in the first nine months of 2012, an
increase of 3.2%, excluding the impact of foreign exchange;
-
Consolidated net retail sales were $266.9 million, compared to $258.5
million in the first nine months of fiscal 2012, an increase of 3.4%,
excluding the impact of foreign exchange;
-
Consolidated comparable store sales increased 8.2% and included a 9.1%
increase in North America and a 4.6% increase in Europe;
-
Consolidated e-commerce sales rose 4.7%, excluding the impact of
foreign exchange;
-
Retail gross margin expanded 230 basis points to 39.6%, compared to
37.3% in the first nine months of 2012;
-
SG&A was $116.5 million, or 43.0% of revenues, including $3.8 million
in management transition and store closing expenses, compared to
$113.8 million, or 43.3% in the first nine months of 2012;
-
Pre-tax loss improved to $7.1 million from a pre-tax loss of $13.9
million in the first nine months of 2012;
-
Net loss was $7.6 million or $0.46 per share, an improvement from a
net loss of $12.8 million, or $0.79 per share in the first nine months
of fiscal 2012; and
-
Adjusted net loss was $3.8 million or $0.23 per share, an improvement
from adjusted net loss of $12.1 million or $0.74 per share in the
fiscal 2012 third period. (See Reconciliation of Net Loss to Adjusted
Net Loss.)
Store Activity
During the quarter, the Company closed six stores and opened three
locations to end the period with 320 company-owned stores – 260 in North
America and 60 in Europe. (See Company-Owned Store Activity Schedule.)
The Company remodeled five stores in its new design format. The
Company’s international franchisees ended the quarter with 85 stores.
The Company expects to close an additional 10 to 25 stores in fiscal
2013 and 2014 and along with opportunistic store openings expects to
reach a store count of approximately 250 stores in North America. These
select store closures are expected to transfer approximately 20% of
sales to other stores in the same markets, which is consistent with the
average transfer rate of the stores closed since 2012.
Balance Sheet
The Company ended the 2013 third quarter with no borrowings under its
revolving credit facility. As of September 28, 2013, cash and cash
equivalents totaled $13.8 million, the majority of which was domiciled
outside the U.S. Total inventory at quarter end was $56.7 million
compared to $54.9 million at quarter end 2012. Inventory per square foot
increased 12.1%, as compared to the prior year period. The $1.8 million
increase was driven by the timing of receipts and additional inventory
to support the Company’s fourth quarter sales plan. In fiscal 2013, the
Company expects capital expenditures to be approximately $20 million to
support the refresh and repositioning of stores and investment in
infrastructure and depreciation and amortization is expected to be
approximately $20 million.
Accomplishments toward Long Term Objectives:
-
Introduce a new store design – At quarter end, the Company
operated 19 newly imagined stores which continued to drive average
comparable store sales increases of nearly 20% in the third quarter.
The Company expects to operate approximately 30 locations in this new
store format by the end of 2013.
-
Improve store productivity and profitability – The Company has
closed 44 stores since the beginning of 2012 transferring over 20% of
those sales to other stores in the same markets. In addition, the
Company reduced the square footage of 19 other stores since the
beginning of 2012 by remodeling and moving them to smaller locations
within the same malls. Organic sales growth along with these
activities have contributed to an approximate 12% increase in sales
per square foot for the nine months ended September 28, 2013, compared
to the nine months ended September 29, 2012.
-
Increase shopping frequency – The Company reintroduced brand
building TV advertising in its U.S. markets beginning in mid-October
2012 and rebalanced the mix of marketing in Europe to drive customer
traffic, further engage existing guests and attract new guests to its
stores. This contributed to the improvement in sales trend with
comparable store sales increasing 9.1% in North America and 4.6% in
Europe in the first nine months of 2013.
-
Reinforce Build-A-Bear Workshop as a top destination for gifts
– The Company capitalized on its brand advertising to drive the “gift
of experience” which led to a 30% increase in the issuance of gift
cards at its stores on a consolidated basis during last year’s peak
fourth quarter gifting period, followed by a 19% increase in the first
nine months of 2013.
-
Optimize the Company’s global presence – The Company’s
franchisees operated 85 international locations as of September 28,
2013. By the end of fiscal 2013, franchisees are expected to have
opened approximately 11 locations offset by select closures.
-
Improve cost efficiencies – The Company expects to realize net
cost savings of approximately $10 million in fiscal 2013, which
include expense reduction initiatives and savings from closed stores.
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 noon ET today until midnight ET on
November 8, 2013. The telephone replay is available by calling (858)
384-5517. The access code is 10000475.
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 fifth year in a row in 2013. Build-A-Bear Workshop (NYSE:
BBW) posted total revenue of $380.9 million in fiscal 2012. For more
information, call 888.560.BEAR (2327) or visit the company's
award-winning Web site at buildabear.com®.
Forward-Looking Statements
The following Management’s Discussion and Analysis of Financial
Condition and Results of Operations contains forward-looking statements
that involve risks and uncertainties. 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 year ended December 29, 2012, 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;
|
|
--
|
|
we may be unable to effectively operate or manage the overall
portfolio of our company-owned stores;
|
|
--
|
|
we may not be able to operate our company-owned stores in the United
Kingdom and Ireland profitably;
|
|
--
|
|
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;
|
|
--
|
|
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;
|
|
--
|
|
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;
|
|
--
|
|
we may improperly obtain or be unable to adequately protect customer
information in violation of privacy or security laws or customer
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 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;
|
|
--
|
|
poor global economic conditions could have a material adverse effect
on our liquidity and capital resources;
|
|
--
|
|
we may have disputes with, or be sued by, third parties for
infringement or misappropriation of their proprietary rights;
|
|
--
|
|
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
|
|
|
|
|
|
|
|
|
|
September 28,
|
|
% of Total
|
|
|
September 29,
|
|
% of Total
|
|
|
|
|
|
|
|
2013
|
|
|
Revenues (1) |
|
2012
|
|
|
Revenues (1) |
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net retail sales
|
$
|
83,580
|
|
|
98.5
|
|
|
$
|
84,263
|
|
|
98.0
|
|
|
Commercial revenue
|
|
451
|
|
|
0.5
|
|
|
|
908
|
|
|
1.1
|
|
|
Franchise fees
|
|
781
|
|
|
0.9
|
|
|
|
800
|
|
|
0.9
|
|
|
Total revenues
|
|
84,812
|
|
|
100.0
|
|
|
|
85,971
|
|
|
100.0
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of merchandise sold
|
|
50,197
|
|
|
59.7
|
|
|
|
53,887
|
|
|
63.3
|
|
|
Selling, general and administrative
|
|
35,819
|
|
|
42.2
|
|
|
|
36,573
|
|
|
42.5
|
|
|
Interest expense (income), net
|
|
(60
|
)
|
|
(0.0
|
)
|
|
|
(36
|
)
|
|
(0.0
|
)
|
|
Total costs and expenses
|
|
85,956
|
|
|
101.3
|
|
|
|
90,424
|
|
|
105.2
|
|
|
Loss before income taxes
|
|
(1,144
|
)
|
|
(1.3
|
)
|
|
|
(4,453
|
)
|
|
(5.2
|
)
|
Income tax expense (benefit)
|
|
210
|
|
|
0.2
|
|
|
|
(201
|
)
|
|
(0.2
|
)
|
|
Net loss
|
$
|
(1,354
|
)
|
|
(1.6
|
)
|
|
$
|
(4,252
|
)
|
|
(4.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
(0.08
|
)
|
|
|
|
$
|
(0.26
|
)
|
|
|
|
Diluted
|
|
|
$
|
(0.08
|
)
|
|
|
|
$
|
(0.26
|
)
|
|
|
Shares used in computing common per share amounts:
|
|
|
|
|
|
Basic
|
|
|
|
|
16,531,240
|
|
|
|
|
|
16,473,114
|
|
|
|
|
Diluted
|
|
|
|
16,531,240
|
|
|
|
|
|
16,473,114
|
|
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39 Weeks
|
|
|
|
|
|
39 Weeks
|
|
|
|
|
|
|
|
|
|
|
Ended
|
|
|
|
|
|
Ended
|
|
|
|
|
|
|
|
|
|
|
September 28,
|
|
% of Total
|
|
|
|
September 29,
|
|
% of Total
|
|
|
|
|
|
|
|
|
2013
|
|
|
Revenues (1) |
|
2012
|
|
|
Revenues (1) |
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net retail sales
|
$
|
266,906
|
|
|
98.5
|
|
|
|
$
|
258,452
|
|
|
98.4
|
|
|
Commercial revenue
|
|
1,674
|
|
|
0.6
|
|
|
|
|
1,989
|
|
|
0.8
|
|
|
Franchise fees
|
|
2,399
|
|
|
0.9
|
|
|
|
|
2,313
|
|
|
0.9
|
|
|
Total revenues
|
|
270,979
|
|
|
100.0
|
|
|
|
|
262,754
|
|
|
100.0
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of merchandise sold
|
|
161,837
|
|
|
60.3
|
|
|
|
|
163,057
|
|
|
62.6
|
|
|
Selling, general and administrative
|
|
116,455
|
|
|
43.0
|
|
|
|
|
113,774
|
|
|
43.3
|
|
|
Interest expense (income), net
|
|
(166
|
)
|
|
(0.1
|
)
|
|
|
|
(185
|
)
|
|
(0.1
|
)
|
|
Total costs and expenses
|
|
278,126
|
|
|
102.6
|
|
|
|
|
276,646
|
|
|
105.3
|
|
|
Loss before income taxes
|
|
(7,147
|
)
|
|
(2.6
|
)
|
|
|
|
(13,892
|
)
|
|
(5.3
|
)
|
Income tax expense (benefit)
|
|
412
|
|
|
0.2
|
|
|
|
|
(1,072
|
)
|
|
(0.4
|
)
|
|
Net loss
|
$
|
(7,559
|
)
|
|
(2.8
|
)
|
|
|
$
|
(12,820
|
)
|
|
(4.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
(0.46
|
)
|
|
|
|
|
$
|
(0.79
|
)
|
|
|
|
Diluted
|
|
|
$
|
(0.46
|
)
|
|
|
|
|
$
|
(0.79
|
)
|
|
|
Shares used in computing common per share amounts:
|
|
|
|
|
|
Basic
|
|
|
|
|
16,407,668
|
|
|
|
|
|
|
16,323,630
|
|
|
|
|
Diluted
|
|
|
|
16,407,668
|
|
|
|
|
|
|
16,323,630
|
|
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 28,
|
|
December 29,
|
|
September 29,
|
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
13,802
|
|
|
|
$
|
45,171
|
|
|
|
$
|
22,145
|
|
|
Inventories
|
|
56,671
|
|
|
|
|
46,904
|
|
|
|
|
54,885
|
|
|
Receivables
|
|
10,515
|
|
|
|
|
9,428
|
|
|
|
|
4,721
|
|
|
Prepaid expenses and other current assets
|
|
14,602
|
|
|
|
|
14,216
|
|
|
|
|
13,569
|
|
|
Deferred tax assets
|
|
269
|
|
|
|
|
987
|
|
|
|
|
487
|
|
|
Total current assets
|
|
95,859
|
|
|
|
|
116,706
|
|
|
|
|
95,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
69,562
|
|
|
|
|
71,459
|
|
|
|
|
73,754
|
|
Goodwill
|
|
-
|
|
|
|
|
-
|
|
|
|
|
33,876
|
|
Other intangible assets, net
|
|
571
|
|
|
|
|
633
|
|
|
|
|
510
|
|
Other assets, net
|
|
3,025
|
|
|
|
|
3,304
|
|
|
|
|
7,218
|
|
Total Assets
|
$
|
169,017
|
|
|
|
$
|
192,102
|
|
|
|
$
|
211,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
$
|
33,517
|
|
|
|
$
|
38,984
|
|
|
|
$
|
35,151
|
|
|
Accrued expenses
|
|
9,162
|
|
|
|
|
11,570
|
|
|
|
|
5,981
|
|
|
Gift cards and customer deposits
|
|
23,092
|
|
|
|
|
30,849
|
|
|
|
|
21,180
|
|
|
Deferred revenue
|
|
4,935
|
|
|
|
|
4,800
|
|
|
|
|
5,455
|
|
|
Total current liabilities
|
|
70,706
|
|
|
|
|
86,203
|
|
|
|
|
67,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred franchise revenue
|
|
1,000
|
|
|
|
|
1,177
|
|
|
|
|
1,238
|
|
Deferred rent
|
|
19,050
|
|
|
|
|
20,843
|
|
|
|
|
20,955
|
|
Other liabilities
|
|
492
|
|
|
|
|
742
|
|
|
|
|
257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
Common stock, par value $0.01 per share
|
|
174
|
|
|
|
|
171
|
|
|
|
|
174
|
|
|
Additional paid-in capital
|
|
68,460
|
|
|
|
|
66,112
|
|
|
|
|
66,782
|
|
|
Accumulated other comprehensive loss
|
|
(7,843
|
)
|
|
|
|
(7,683
|
)
|
|
|
|
(7,020
|
)
|
|
Retained earnings
|
|
16,978
|
|
|
|
|
24,537
|
|
|
|
|
61,012
|
|
|
Total stockholders' equity
|
|
77,769
|
|
|
|
|
83,137
|
|
|
|
|
120,948
|
|
Total Liabilities and Stockholders' Equity
|
$
|
169,017
|
|
|
|
$
|
192,102
|
|
|
|
$
|
211,165
|
|
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
|
Unaudited Selected Financial and Store Data
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks
|
|
13 Weeks
|
|
|
39 Weeks
|
|
39 Weeks
|
|
|
|
|
Ended
|
|
Ended
|
|
|
Ended
|
|
Ended
|
|
|
|
|
September 28,
|
|
September 29,
|
|
|
September 28,
|
|
September 29,
|
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial data:
|
|
|
|
|
|
|
|
|
|
|
Retail gross margin ($) (1) |
$
|
33,545
|
|
$
|
30,771
|
|
|
$
|
105,797
|
|
$
|
96,448
|
|
|
Retail gross margin (%) (1) |
|
40.1
|
%
|
|
36.5
|
%
|
|
|
39.6
|
%
|
|
37.3
|
%
|
|
E-commerce sales
|
$
|
2,269
|
|
$
|
2,256
|
|
|
$
|
7,897
|
|
$
|
7,572
|
|
|
Capital expenditures, net (2) |
$
|
5,677
|
|
$
|
5,103
|
|
|
$
|
14,693
|
|
$
|
13,407
|
|
|
Depreciation and amortization
|
$
|
4,722
|
|
$
|
5,196
|
|
|
$
|
14,399
|
|
$
|
15,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store data (3):
|
|
|
|
|
|
|
|
|
|
|
Number of company-owned stores at end of period
|
|
|
|
|
|
|
|
|
|
|
North America - Traditional
|
|
|
|
|
|
|
254
|
|
|
283
|
|
|
|
North America - Non-traditional
|
|
|
|
|
|
|
6
|
|
|
10
|
|
|
|
Total North America
|
|
|
|
|
|
|
260
|
|
|
293
|
|
|
|
Europe
|
|
|
|
|
|
|
60
|
|
|
58
|
|
|
|
Total stores
|
|
|
|
|
|
|
320
|
|
|
351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of franchised stores at end of period
|
|
|
|
|
|
|
85
|
|
|
87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-owned store square footage at end of period
|
|
|
|
|
|
|
|
|
|
|
North America - Traditional
|
|
|
|
|
|
|
721,528
|
|
|
808,925
|
|
|
|
North America - Non-traditional
|
|
|
|
|
|
|
9,759
|
|
|
14,160
|
|
|
|
Total North America
|
|
|
|
|
|
|
731,287
|
|
|
823,085
|
|
|
|
Europe (4) |
|
|
|
|
|
|
86,331
|
|
|
83,631
|
|
|
|
Total square footage
|
|
|
|
|
|
|
817,618
|
|
|
906,716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable store sales change (%) (5) |
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
7.6
|
%
|
|
(11.8
|
)%
|
|
|
9.1
|
%
|
|
(3.4
|
)%
|
|
|
Europe
|
|
2.3
|
%
|
|
(7.9
|
)%
|
|
|
4.6
|
%
|
|
(6.7
|
)%
|
|
|
Consolidated
|
|
6.4
|
%
|
|
(11.1
|
)%
|
|
|
8.2
|
%
|
|
(4.0
|
)%
|
(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)
|
|
North American stores are located in the United States, Canada and
Puerto Rico. In Europe, stores are located in the United Kingdom
and Ireland. Non-traditional stores include a ballpark, zoo,
hospital, airport and temporary locations. The Company's webstores
are excluded from store count.
|
(4)
|
|
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 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 Loss to Adjusted Net Loss
|
|
(dollars in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks
|
|
13 Weeks
|
|
|
39 Weeks
|
|
|
39 Weeks
|
|
|
|
|
|
|
|
|
|
Ended
|
|
Ended
|
|
|
Ended
|
|
|
Ended
|
|
|
|
|
|
|
|
|
|
September 28,
|
|
September 29,
|
|
|
September 28,
|
|
|
September 29,
|
|
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
Net loss
|
|
|
|
$
|
(1,354
|
)
|
|
$
|
(4,252
|
)
|
|
|
$
|
(7,559
|
)
|
|
|
$
|
(12,820
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management transition costs(1) |
|
397
|
|
|
|
-
|
|
|
|
|
2,673
|
|
|
|
|
-
|
|
|
|
Store closing costs (2) |
|
|
166
|
|
|
|
90
|
|
|
|
|
1,080
|
|
|
|
|
219
|
|
|
|
Losses from investment in affiliate(3) |
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
475
|
|
|
Adjusted net loss
|
|
$
|
(791
|
)
|
|
$
|
(4,162
|
)
|
|
|
$
|
(3,806
|
)
|
|
|
$
|
(12,126
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks
|
|
13 Weeks
|
|
|
39 Weeks
|
|
|
39 Weeks
|
|
|
|
|
|
|
|
|
|
Ended
|
|
Ended
|
|
|
Ended
|
|
|
Ended
|
|
|
|
|
|
|
|
|
|
September 28,
|
|
September 29,
|
|
|
September 28,
|
|
|
September 29,
|
|
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
Net loss per share
|
|
$
|
(0.08
|
)
|
|
$
|
(0.26
|
)
|
|
|
$
|
(0.46
|
)
|
|
|
$
|
(0.79
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management transition costs(1) |
|
0.02
|
|
|
|
-
|
|
|
|
|
0.16
|
|
|
|
|
-
|
|
|
|
Store closing costs (2) |
|
|
0.01
|
|
|
|
0.01
|
|
|
|
|
0.07
|
|
|
|
|
0.02
|
|
|
|
Losses from investment in affiliate(3) |
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
0.03
|
|
|
Adjusted net loss per share
|
|
$
|
(0.05
|
)
|
|
$
|
(0.25
|
)
|
|
|
$
|
(0.23
|
)
|
|
|
$
|
(0.74
|
)
|
(1)
|
|
Represents management transition costs related to the change in
Chief Executive. Costs include severance, along with benefits and
related taxes, executive search fees, signing bonus and professional
fees.
|
(2)
|
|
Represents the net impact related to the closing of stores,
including asset impairment and disposal charges and severance costs
along with adjustments to lease related liabilities.
|
(3)
|
|
Represents non-recurring charge related to the Company's investment
in Ridemakerz.
|
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
|
Company-Owned Store Activity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirty-nine Weeks Ended September 28, 2013
|
|
Fifty-two Weeks Ended December 28, 2013 - Projected
|
|
|
|
December 29,
|
|
|
|
|
September 28,
|
|
December 29,
|
|
|
|
|
December 28,
|
|
|
|
2012
|
|
Opened
|
|
Closed
|
|
2013
|
|
2012
|
|
Opened
|
|
Closed
|
|
2013
|
|
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional
|
283
|
|
3
|
|
(32
|
)
|
|
254
|
|
283
|
|
4
|
|
(34
|
)
|
|
253
|
|
Non-traditional
|
8
|
|
-
|
|
(2
|
)
|
|
6
|
|
8
|
|
3
|
|
(2
|
)
|
|
9
|
|
|
|
291
|
|
3
|
|
(34
|
)
|
|
260
|
|
291
|
|
7
|
|
(36
|
)
|
|
262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
60
|
|
-
|
|
-
|
|
|
60
|
|
60
|
|
-
|
|
(1
|
)
|
|
59
|
|
Total
|
|
351
|
|
3
|
|
(34
|
)
|
|
320
|
|
351
|
|
7
|
|
(37
|
)
|
|
321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirty-nine Weeks Ended September 29, 2012
|
|
Fifty-two Weeks Ended December 29, 2012
|
|
|
|
December 31,
|
|
|
|
|
September 29,
|
|
December 31,
|
|
|
|
|
December 29,
|
|
|
|
2011
|
|
Opened
|
|
Closed
|
|
2012
|
|
2011
|
|
Opened
|
|
Closed
|
|
2012
|
|
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional
|
287
|
|
1
|
|
(5
|
)
|
|
283
|
|
287
|
|
2
|
|
(6
|
)
|
|
283
|
|
Non-traditional
|
11
|
|
1
|
|
(2
|
)
|
|
10
|
|
11
|
|
1
|
|
(4
|
)
|
|
8
|
|
|
|
298
|
|
2
|
|
(7
|
)
|
|
293
|
|
298
|
|
3
|
|
(10
|
)
|
|
291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
58
|
|
-
|
|
-
|
|
|
58
|
|
58
|
|
2
|
|
-
|
|
|
60
|
|
Total
|
|
356
|
|
2
|
|
(7
|
)
|
|
351
|
|
356
|
|
5
|
|
(10
|
)
|
|
351
|
The Company's long term real estate goal is to bring its stores
back to best in class productivity and profitability. The Company
currently expects to have approximately 310 Build-A-Bear Workshop
stores, 250 in North America and 60 in the United Kingdom and
Ireland, at the end of fiscal 2014. The Company currently expects
to reach this level with the closure of 10 to 25 additional stores
through 2014, primarily in North America, along with limited,
opportunistic store openings. Locations to close and the timing of
the closures are subject to ongoing negotiations and overall
economic considerations as market repositioning and optimization
plans are continually reevaluated.
|

Source: Build-A-Bear Workshop, Inc.
Build-A-Bear Workshop Investors: Tina Klocke, 314.423.8000 x5210 Media:
Jill Saunders, 314.423.8000 x5293
|