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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported)
February 16, 2006
Build-A-Bear Workshop, Inc.
-------------------------------------------------
(Exact Name of Registrant as Specified in Its Charter)
Delaware 001-32320 43-1883836
- --------------------- ----------------- -------------------------
(State or Other (Commission (IRS Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
1954 Innerbelt Business Center Drive 63114
St. Louis, Missouri ------------
---------------------------------------- (Zip Code)
(Address of Principal Executive Offices)
(314) 423-8000
------------------------------------------
(Registrant's Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
- ------------------------------------------------------------
On February 16, 2006, Build-A-Bear Workshop, Inc. (the "Company") issued a
press release announcing, among other things, total revenue, net retail sales,
gross margin, net income and diluted earnings per share for the fourth quarter
and full year of fiscal 2005. The press release also included expected revenue
growth, diluted earnings per share, marketing expense and capital spending for
fiscal 2006. The press release also announced that the Company is in discussions
regarding two possible acquisitions. A copy of the press release is furnished as
Exhibit 99.1 hereto and is incorporated by reference herein. The description of
the press release contained herein is qualified in its entirety by the full text
of such exhibit.
Item 7.01 Regulation FD Disclosure.
- ---------------------------------------
The Company has prepared certain financial information which illustrates
the separation of the Company's net retail sales figure between Internet-based
retail sales and other net retail sales for each of the four fiscal quarters of
fiscal year 2004 and fiscal year 2005. The Company had previously reported net
retail sales for each of these periods inclusive of Internet sales.
The Company has also prepared end of period store gross square footage and
store count for fiscal years 1999, 2000, 2001, 2002, 2003, 2004 and 2005. The
Company had previously reported store gross square footage and store count at
the end of the period for fiscal years 2003 and 2004.
The financial information is furnished as Exhibit 99.2 hereto and is
incorporated by reference herein. The description of the financial information
and store data contained herein is qualified in its entirety by the full text of
such exhibit.
This information furnished in Items 2.02 and 7.01, including Exhibits 99.1
and 99.2 attached hereto, is being furnished and shall not be deemed "filed" for
purposes of Section 18 of the Securities and Exchange Act of 1934 (the "Exchange
Act") or otherwise subject to the liabilities of that section, nor shall it be
deemed incorporated by reference in any filing under the Securities Act of 1933,
as amended, or the Exchange Act, regardless of any general incorporation
language in such filing. In addition, this report (including Exhibits 991. and
99.2) shall not be deemed an admission as to the materiality of any information
contained herein that is required to be disclosed solely as a requirement of
this Item.
Item 9.01 Financial Statements and Exhibits.
- ------------------------------------------------
(d) Exhibits
Exhibit Number Description of Exhibit
- -------------- ----------------------
99.1 Press Release dated February 16, 2006
99.2 Unaudited Financial Information and Store Data of
Build-A-Bear Workshop, Inc.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BUILD-A-BEAR WORKSHOP, INC.
Date: February 16, 2006 By: /s/ Tina Klocke
---------------------------------
Name: Tina Klocke
Title: Chief Financial Bear, Secretary
and Treasurer
3
EXHIBIT INDEX
Exhibit Number Description of Exhibit
- -------------- ----------------------
99.1 Press Release dated February 16, 2006
99.2 Unaudited Financial Information and Store Data of
Build-A-Bear Workshop, Inc.
4
Exhibit 99.1
Build-A-Bear Workshop, Inc.
Reports Strong Sales and Net Income Growth in Fiscal 2005 Fourth
Quarter and Full Year; Company Provides Guidance for 2006
ST. LOUIS--(BUSINESS WIRE)--Feb. 16, 2006--Build-A-Bear Workshop,
Inc. (NYSE: BBW):
-- Fourth quarter net income increased 68% to $10.6 million. Full
year net income increased 37%, exceeding company guidance.
-- Fourth quarter diluted EPS were $0.52 vs. $0.32 in fiscal
2004. Full year diluted EPS were $1.35 vs. $1.07 in fiscal
2004.
-- Fourth quarter net retail sales increased 18.0% to $116.7
million. Full year net retail sales increased 19.4% to $358.9
million.
-- Full year fiscal 2006 diluted EPS expected to be in the range
of $1.57 to $1.63, including stock-based compensation expense
of approximately $0.08 per diluted share and distribution
center transition costs of approximately $0.04 per diluted
share.
-- New international expansion plans move forward; new franchisee
agreements in place for India and Thailand.
Build-A-Bear Workshop, Inc. (NYSE: BBW), an interactive
entertainment retailer of customized stuffed animals, announced that
total revenue for the fiscal 2005 fourth quarter (13 weeks ended Dec.
31, 2005) increased 18.7% to $118.0 million, compared to $99.4 million
in the prior year's fourth quarter (13 weeks ended Jan. 1, 2005). For
the full year fiscal 2005 (52 weeks ended Dec. 31, 2005), total
revenue increased 19.9% to $361.8 million, compared to $301.7 million
in fiscal 2004 (52 weeks ended Jan. 1, 2005).
Fourth quarter net income increased 68.1% to $10.6 million or
$0.52 per diluted share on 20.3 million diluted shares outstanding.
This compares to net income of $6.3 million or $0.32 per diluted share
on 19.7 million diluted shares outstanding in last year's fourth
quarter. For the full year fiscal 2005, net income increased 36.6% to
$27.3 million or $1.35 per diluted share on 20.2 million diluted
shares outstanding. This compares to net income of $20.0 million or
$1.07 per diluted share on 18.6 million diluted shares outstanding in
fiscal 2004.
"Our performance in both the quarter and for the year demonstrates
that our business model is solid and predictable, and perhaps of more
importance, that we have momentum moving into fiscal 2006," said
Maxine Clark, chairman and chief executive bear. "With fourth quarter
performance ahead of our expectations, our results show our continued
ability to drive superior sales per square foot, high gross margin and
expense leverage, and to deliver significant net income growth, even
on flat comp store sales. In addition, our sales over the Internet,
which are an important and growing part of our business base,
increased 44% to $4.0 million in the quarter, and for the year
contributed $8.7 million to our sales."
Fiscal 2005 Fourth Quarter
Fiscal 2005 fourth quarter total revenue includes net retail sales
of $116.7 million, an increase of $17.8 million or 18.0% compared to
last year's fourth quarter. Net retail sales growth was primarily
driven by new stores opened during the past twelve months. Comparable
store sales declined 0.6%. Fourth quarter total revenue includes
revenue from international franchise fees totaling $829,000, an
increase of $481,000 compared to last year's fourth quarter, and
licensing revenue totaling $545,000, an increase of $300,000 compared
to last year's fourth quarter.
Fourth quarter net income growth of $4.3 million, compared to the
fiscal 2004 fourth quarter, was primarily driven by higher new store
and Internet sales, lower performance-based bonus expense, lower
stock-based compensation expense, increased interest income and lower
store preopening expense. Gross margin rate declined slightly to 52.1%
down from 53.0% in the fiscal 2004 fourth quarter as higher
transportation costs offset purchasing and distribution cost
efficiencies. Selling, general and administrative expense as a percent
of total revenue decreased to 38.1% from 41.9% primarily due to lower
performance-based bonus and stock-based compensation expenses.
Fiscal 2005 fourth quarter results include the impact of
stock-based compensation expense of $0.4 million pretax ($0.3 million
net of tax or $0.01 per diluted share). Fiscal 2004 fourth quarter
results include the impact of stock-based compensation expense of $1.4
million pretax ($1.0 million net of tax or $0.05 per diluted share).
The stock-based compensation expense recorded in 2004 relates to stock
options granted during the first half of 2004 which became fully
vested as a result of the company's initial public offering.
During the fourth quarter, the company opened seven new
Build-A-Bear Workshop (BABW) retail stores in the United States and
Canada, compared with opening six BABW stores during the same period
last year.
Fiscal 2005 Full Year
Fiscal 2005 total revenue includes net retail sales of $358.9
million, an increase of $58.4 million or 19.4% compared to fiscal
2004. Net retail sales growth was driven by new stores -- 30 new BABW
stores and three new friends 2B made(R) (F2BM) locations opened during
the year --and an increase in Internet sales of 38.8% to $8.7 million.
Comparable store sales for the year decreased slightly by 0.2%. Fiscal
2005 total revenue includes revenue from international franchise fees
totaling $2.0 million, an increase of $1.1 million compared to fiscal
2004, and licensing revenue totaling $932,000, an increase of $585,000
compared to fiscal 2004.
Fiscal 2005 net income growth of $7.3 million, compared to fiscal
2004, was driven primarily by higher net retail sales and by
maintaining a retail gross margin rate of 49.7%. Lower
performance-based bonus expense, higher interest income and lower
stock-based compensation expense, partially offset by higher store
preopening expenses, also contributed to net income growth. The
abovementioned store preopening expense included costs associated with
the New York City flagship store and cafe opening totaling $2.0
million ($1.2 million net of tax, or $0.06 per diluted share).
Fiscal 2005 full year results include the impact of stock-based
compensation expense of $0.8 million pretax ($0.5 million net of tax
or $0.02 per diluted share). Fiscal 2004 full year results include the
impact of stock-based compensation expense of $2.0 million pretax
($1.4 million net of tax or $0.08 per diluted share).
Total store square footage in fiscal 2005 increased 19.5% to
615,194 gross square feet. During fiscal 2004 the company opened 21
BABW stores and two F2BM locations ending the year with total store
square footage of 514,986 gross square feet.
During fiscal 2005, international franchisees opened 18 new stores
ending the year with 30 stores located in Australia (5 stores),
Denmark (4 stores), France (1 store), Japan (5 stores), the
Netherlands (1 store), South Korea (1 store), Sweden (1 store), Taiwan
(1 store) and the United Kingdom (11 stores).
New International Expansion Plans
Build-A-Bear Workshop is continuing to pursue its international
strategies in selected markets. In that regard, the company is in
discussions with The Hamleys Group, Ltd. regarding a possible
acquisition of its Bear Factory subsidiary. Bear Factory is a United
Kingdom-based stuffed animal retailer owned by The Hamleys Group, Ltd.
The company also announced that it is in discussions to acquire
Amsbra, Ltd., its franchisee in the U.K. No definitive agreements have
been reached nor can the company assure that these discussions will
lead to completed transactions. Build-A-Bear Workshop does not
contemplate making any further announcement unless discussions are
terminated or result in completion of definitive agreements.
In addition, the company recently completed agreements with The
Murjani Group in India and Central Department Stores in Thailand as
new international franchisees. India and Thailand are the 13th and
14th countries to join the Build-A-Bear Workshop international
franchisee program.
"Our brand clearly has worldwide appeal," said Ms. Clark. "We
opened our first international store in the United Kingdom in November
2003. Today our franchisees operate 30 stores in nine countries. The
exceptional value and family-focused experience we offer, combined
with the worldwide appeal of stuffed animals, makes Build-A-Bear
Workshop a brand that communicates fun in any language. We are pleased
with the partnerships we have established in India and Thailand and
look forward to the exciting growth these two countries can help us
achieve."
The Murjani Group is led by its Chairman, Mohan Murjani and
Managing Director, Vijay Murjani. In 1976 The Murjani Group launched
Gloria Vanderbilt followed by Tommy Hilfiger in 1984 and became the
first Indian company to develop and market designer brands in the
international market place. Central Department Store Limited, led by
President Yuwadee Bhicharnchitr, is a division of the Central Group of
Companies, and is the largest department store chain in Thailand. The
Central Group of Companies is involved in retail, real estate, brand
development, hotels and resorts, and food service and is one of
Thailand's five largest conglomerates.
Company-Owned Distribution Center in Columbus, Ohio
The company previously announced that it will build a
350,000-square-foot distribution center near Columbus, Ohio. The
center will replace an existing third-party distribution center; the
new location in Columbus will serve as the primary distribution center
for the company's North America store operations.
"Our new distribution center is an important building block for
the future growth of Build-A-Bear Workshop and friends 2B made(R),"
said Barry Erdos, president and chief operating officer bear. "Once
the transition is complete, we expect the new center to improve
inventory control and management, and enhance operating efficiencies."
The facility is expected to become fully operational beginning in
fall 2006. To help ensure a smooth transition, the company will
utilize its third-party distribution center services and operate the
new center for a period of approximately three months. These one-time
transition costs are expected to be approximately $1.4 million pretax
($0.9 million net of tax or $0.04 per diluted share).
Outlook For 2006
The company expects fiscal 2006 (52 weeks ended Dec. 30, 2006)
diluted earnings per share (EPS) to be in the range of $1.57 to $1.63.
This guidance includes the anticipated impact of expensing stock-based
compensation as required by SFAS 123R of approximately $2.7 million
pretax ($1.7 million net of tax or $0.08 per diluted share) and
distribution center transition costs of approximately $1.4 million
pretax ($0.9 million net of tax or $0.04 per diluted share). This
guidance does not include the potential impact of transactions under
discussion with The Hamleys Group, Ltd. and Amsbra, Ltd.
The company's earnings model is based upon the following business
drivers:
-- Total revenue growth of approximately 20%, including
comparable store sales in the flat to low single digit growth
range.
-- Maintenance of high sales per square foot in excess of $600.
-- Maintenance of gross profit margins through strong merchandise
margins and minimal markdowns and product returns while
incurring transition costs related to the new company-owned
distribution center.
-- Increased brand awareness and store traffic through integrated
marketing programs. The company expects to spend approximately
$33 million, or 7.6% of total revenue (up from $27 million, or
7.5% of total revenue in fiscal 2005), on marketing programs
in fiscal 2006.
-- The addition of approximately 30 new BABW stores in the United
States and Canada.
-- Continued expansion of new initiatives with approximately five
new F2BM locations, two new ball park stores and the first
store in a zoo.
-- The opening of 20 to 25 new stores by international
franchisees in fiscal 2006.
-- Capital expenditures in 2006 of an anticipated $47 to $52
million, with the new distribution center accounting for
approximately $22 million of the total projected investment.
New stores and technology-based infrastructure projects
comprise the remainder of the capital spending dollars.
Today's Conference Call Webcast
Today at 10:00 a.m. EDT, Build-A-Bear Workshop will host a live
audio webcast of its discussion with the investment community
regarding the company's fiscal 2005 fourth quarter and full year
results. The webcast can be accessed at http://ir.buildabear.com. A
replay of the webcast will be available following the live webcast,
and available until the company's next quarterly conference call.
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. Founded in St. Louis in 1997, the company currently
operates more than 200 stores in the United States and Canada. The
addition of franchise stores in Europe, Asia and Australia make
Build-A-Bear Workshop the leader in interactive retail. In November
2004, the company expanded the make-your-own concept from stuffed
animals to dolls with the opening of its first friends 2B made(R), in
which Guests can make their own dolls. Build-A-Bear Workshop (NYSE:
BBW) posted total revenue of $362 million in fiscal 2005. For more
information, call 888.560.BEAR (2327) or visit the company's
award-winning Web sites at www.buildabear.com and
www.friends2bmade.com.
Forward-Looking Statements
This press release contains "forward-looking statements" (within
the meaning of the federal securities laws) which represent the
Company's expectations or beliefs with respect to future events. These
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from those anticipated. Those factors include, without limitation: we
may be unable to generate comparable store sales growth; our marketing
initiatives may not generate sufficient brand awareness and sales; we
may be unable to effectively manage our international franchises or
comply with changing laws relating thereto; we may be unable to
generate demand for our retail experience, or to respond to consumer
preferences; customer mall traffic may decrease, as a result of
various factors, including a reduction of consumer confidence because
of terrorism or war; general economic conditions may worsen; our
market share could be adversely affected by competitors; we may lose
key personnel, or be unable to hire qualified additional personnel;
vendor deliveries may be disrupted; the availability and costs of our
products could be impacted by international manufacturing and trade
issues; our warehousing and distribution vendors may perform poorly;
we may fail to protect our intellectual property and may have
infringement, misappropriation or other disputes or litigation with
third parties; we may be unable to open new stores, renew or replace
our store leases, enter into leases for new stores on favorable terms,
or continue to comply with our current leases; we may experience
communications or information systems failures; we may suffer negative
publicity or be sued due to alleged violations of labor laws, employee
regulations or unethical practices, either by the Company or its
merchandise manufacturers; and we may violate or be accused of
violating privacy or security laws by reason of improperly obtaining
or failing to adequately protect Guest information. These and other
applicable risks, cautionary statements and factors that could cause
actual results to differ from the Company's forward-looking statements
are included in the Company's filings with the SEC, specifically as
described in the Company's annual report on Form 10-K for the fiscal
year ended January 1, 2005. The Company undertakes no obligation to
update or revise any forward- looking statements to reflect subsequent
events or circumstances even if experience or future changes make it
clear that any projected results expressed or implied therein will not
be realized.
(Financial Tables Follow)
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(dollars in thousands, except share and per share data)
13 Weeks % of 13 Weeks % of
Ended Total Ended Total
Dec. 31, Revenues Jan. 1, Revenues
2005 (1) 2005 (1)
----------- --------- ----------- --------
Revenues:
Net retail sales $ 116,660 98.8% $ 98,836 99.4%
Franchise fees 829 0.7 348 0.3
Licensing revenue 545 0.5 245 0.2
--------------- -------- ----------- --------
Total revenues 118,034 100.0 99,429 100.0
--------------- -------- ----------- --------
Costs and expenses:
Cost of merchandise
sold 55,909 47.9 46,491 47.0
Selling, general and
administrative 45,012 38.1 41,707 41.9
Store preopening 414 0.4 714 0.7
Interest expense
(income), net (530) (0.4) (129) (0.1)
--------------- -------- ----------- --------
Total costs
and expenses 100,805 85.4 88,783 89.3
--------------- -------- ----------- --------
Income before
income taxes 17,229 14.6 10,646 10.7
Income tax expense 6,633 5.6 4,344 4.4
--------------- -------- ----------- --------
Net income 10,596 9.0 6,302 6.3
Cumulative dividends
and accretion of
redeemable preferred
stock -- 125
--------------- -----------
Net income
available to
common and
participating
preferred
stockholders $ 10,596 $ 6,177
=============== ===========
Net income allocated to
common stockholders $ 10,596 $ 6,177
=============== ===========
Net income allocated to
participating
preferred stockholders $ -- $ --
=============== ===========
Earnings per common
share:
Basic $ 0.53 $ 0.45
=============== ===========
Diluted $ 0.52 $ 0.32
=============== ===========
Shares used in
computing common per
share amounts:
Basic 19,989,177 13,870,389
Diluted 20,319,086 19,650,953
(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.
Percentages will not total due to cost of merchandise sold
being expressed as a percentage of net retail sales and
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 % of 52 Weeks % of
Ended Total Ended Total
Dec. 31, Revenue Jan. 1, Revenue
2005 (1) 2005 (1)
---------- ------- ---------- -------
Revenues:
Net retail sales $ 358,901 99.2% $ 300,469 99.6%
Franchise fees 1,976 0.5 846 0.3
Licensing revenue 932 0.3 347 0.1
---------------- -------- ----------- -------
Total revenues 361,809 100.0 301,662 100.0
---------------- -------- ----------- -------
Costs and expenses:
Cost of merchandise
sold 180,373 50.3 150,903 50.2
Selling, general and
administrative 133,921 37.0 115,939 38.4
Store preopening 4,812 1.3 2,186 0.7
Interest expense
(income), net (1,710) (0.5) (299) (0.1)
---------------- -------- ----------- -------
Total costs
and expenses 317,396 87.7 268,729 89.1
---------------- -------- ----------- -------
Income before
income taxes 44,413 12.3 32,933 10.9
Income tax expense 17,099 4.7 12,934 4.3
---------------- -------- ----------- -------
Net income 27,314 7.5 19,999 6.6
Cumulative dividends
and accretion of
redeemable preferred
stock -- 1,262
Cumulative dividends of
nonredeemable
preferred stock -- 263
---------------- -----------
Net income
available to
common and
participating
preferred
stockholders $ 27,314 $ 18,474
================ ===========
Net income allocated to
common stockholders $ 27,314 $ 8,519
================ ===========
Net income allocated to
participating
preferred stockholders $ -- $ 9,955
================ ===========
Earnings per common
share:
Basic $ 1.38 $ 2.30
================ ===========
Diluted $ 1.35 $ 1.07
================ ===========
Shares used in
computing common per
share amounts:
Basic 19,735,067 3,702,365
Diluted 20,225,341 18,616,435
(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.
Percentages will not total due to cost of merchandise sold
being expressed as a percentage of net retail sales and
rounding.
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance
Sheets
(dollars in thousands, except share and per
share data)
December 31, January 1,
2005 2005
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 90,950 $ 67,327
Inventories 40,157 30,791
Receivables 6,629 3,792
Prepaid expenses and other current assets 6,839 5,320
Deferred tax assets 3,232 2,725
-------- --------
Total current assets 147,807 109,955
Property and equipment, net 89,973 75,815
Note receivable from franchisee 4,518 -
Other intangible assets, net 1,454 1,411
Other assets, net 2,356 2,056
-------- --------
Total Assets $246,108 $189,237
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 34,996 $ 25,767
Accrued expenses 15,792 13,966
Other current liabilities 30,373 22,222
-------- --------
Total current liabilities 81,161 61,955
-------- --------
Deferred franchise revenue 2,306 2,075
Deferred rent 30,687 26,426
Other liabilities 586 732
Deferred tax liabilities 1,011 2,539
Stockholders' equity:
Common stock, par value $0.01 per share 201 196
Additional paid-in capital 85,259 77,708
Retained earnings 46,700 19,386
Notes receivable from officers (151) (1,770)
Unearned compensation (1,652) (10)
-------- --------
Total stockholders' equity 130,357 95,510
-------- --------
Total Liabilities and Stockholders' Equity $246,108 $189,237
======== ========
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Cash
Flows
(dollars in thousands)
52 Weeks 52 Weeks
Ended Ended
Dec. 31, Jan. 1,
2005 2005
-------- --------
Cash flows from operating activities:
Net income $ 27,314 $ 19,999
Adjustments to reconcile net income to
net cash from operating activities:
Depreciation and amortization 17,592 14,948
Deferred taxes (2,035) (1,875)
Tax benefit from stock option exercises 3,091 410
Loss on disposal of property and equipment 526 533
Impairment of goodwill - 97
Impairment charge (credit) - (54)
Stock-based compensation 795 1,974
Change in assets and liabilities:
Inventories (9,366) (8,218)
Receivables (2,804) (1,629)
Prepaid expenses and other assets (1,612) (1,105)
Accounts payable 9,229 3,998
Accrued expenses and other liabilities 11,912 19,449
-------- --------
Net cash provided by operating activities 54,642 48,527
-------- --------
Cash flows from investing activities:
Purchases of property and equipment (31,083) (16,494)
Purchases of other assets (1,569) (1,238)
Issuance of note receivable to franchisee (4,425) -
-------- --------
Net cash used in investing activities (37,077) (17,732)
-------- --------
Cash flows from financing activities:
Payment of cash dividend - (10,000)
Exercise of employee stock options and employee
stock purchases 4,413 52
Collection of note receivable from officer 1,645 144
Proceeds from initial public offering, net of
offering costs - 25,735
-------- --------
Net cash provided by financing activities 6,058 15,931
-------- --------
Net increase in cash and cash equivalents 23,623 46,726
Cash and cash equivalents, beginning of period 67,327 20,601
-------- --------
Cash and cash equivalents, end of period $ 90,950 $ 67,327
======== ========
BUILD-A-BEAR WORKSHOP, INC. AND
SUBSIDIARIES
Unaudited Selected Financial and Store Data
(dollars in thousands, except
square foot data)
13 Weeks 13 Weeks 52 Weeks 52 Weeks
Ended Ended Ended Ended
Dec. Jan. Dec. Jan.
31, 1, 31, 1,
2005 2005 2005 2005
------------------------------------
Other financial data:
Gross margin ($) (1) $ 60,751 52,345 $178,528 149,566
Gross Margin (%) (1) 52.08% 52.96% 49.74% 49.78%
Capital expenditures (2) $ 8,484 5,216 $ 31,083 16,494
Depreciation and amortization $ 4,771 4,131 $ 17,592 14,948
Store data (3):
Number of stores at end of
period 200 170
Store square footage at end
of period 615,194 514,986
Net retail sales per gross
square foot (4) $ 615 602
Comparable store sales change
(%) (5) (0.6)% 23.3% (0.2)% 18.1%
(1) Gross margin represents net retail sales less cost of
merchandise sold. Gross margin percentage represents gross
margin divided by net retail sales.
(2)Capital expenditures consist of leasehold improvements,
furniture and fixtures, and computer equipment and software
purchases.
(3)Excludes our webstore and seasonal and event-based
locations.
(4)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.
(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.
CONTACT: Build-A-Bear Workshop, Inc., St. Louis
Investors:
Molly Salky, 314-423-8000 x5353
or
Media:
Jill Saunders, 314-423-8000 x5293
Exhibit 99.2
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Selected Financial Data
(dollars in thousands)
13 Weeks 13 Weeks 13 Weeks 13 Weeks
Ended Ended Ended Ended
April 2, July 2, October 1, December 31,
2005 2005 2005 2005
------------ ------------ ------------ ------------
Revenues:
Net retail sales (excluding Internet sales) $ 83,596 $ 71,995 $ 81,887 $ 112,692
Internet
sales 2,127 1,284 1,352 3,968
Total net retail sales $ 85,723 $ 73,279 $ 83,239 $ 116,660
Franchise fees 306 334 507 829
Licensing revenue 30 86 271 545
------------ ------------ ------------ ------------
Total revenues $ 86,059 $ 73,699 $ 84,017 $ 118,034
------------ ------------ ------------ ------------
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Selected Financial Data
(dollars in thousands)
13 Weeks 13 Weeks 13 Weeks 13 Weeks
Ended Ended Ended Ended
April 3, July 3, October 2, January 1,
2004 2004 2004 2005
------------ ------------ ------------ ------------
Revenues:
Net retail sales (excluding Internet sales) $ 67,944 $ 64,832 $ 65,316 $ 96,085
Internet sales 1,551 1,093 897 2,751
Total net retail sales $ 69,495 $ 65,925 $ 66,213 $ 98,836
Franchise fees 117 190 191 348
Licensing revenue - - 102 245
------------ ------------ ------------ ------------
Total revenues $ 69,612 $ 66,115 $ 66,506 $ 99,429
------------ ------------ ------------ ------------
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Selected Store Data
Gross Store Square
Fiscal Year Period Ending Footage at End of Period Store Count
- ---------------------------------------------------------------------
1999 1/1/2000 43,791 14
2000 12/30/2000 123,277 39
2001 12/29/2001 232,644 71
2002 12/28/2002 344,318 108
2003 1/3/2004 462,484 150
2004 1/1/2005 514,986 170
2005 12/31/2005 615,194 200