Press Release
Build-A-Bear Workshop, Inc. Reports Fiscal 2009 Third Quarter Results
-
Revenue from European operations, excluding the impact of foreign
exchange, increased 7% to
$18 million in third quarter 2009 vs. third quarter 2008. -
Cost reduction plans ahead of schedule -- year-to-date pre-tax cost
savings total
$18 million ; now expect full year savings of approximately$20 million . -
Company renews bank line of credit; balance sheet remains debt-free
with consolidated cash balance of
$27 million .
In addition, the company reported that cost reduction plans are
progressing ahead of schedule. The company now expects to generate
approximately
“Our third quarter results include solid progress toward our goals and
reflect a steady improvement in our comparable store sales trend,
continued cost savings, and a strong balance sheet,” said
“We continue to be diligent about cost control; year-to-date we have
achieved
Fiscal 2009 third-quarter (13 weeks ended
-
Total revenues were
$91.7 million compared to$107.2 million in the fiscal 2008 third quarter (13 weeks endedSeptember 27, 2008 ). Consolidated comparable store sales declined 12.9% including a 2.5% increase inEurope and a 16.0% decrease inNorth America (third quarter comparable store sales are compared to the 13 week period endedOctober 4, 2008 ). -
The net loss was
$4.8 million , or$0.25 per diluted share, compared to the fiscal 2008 third quarter net loss of$2.0 million or$0.11 per diluted share. -
The net loss for the third quarter of fiscal 2009 included a non-cash
charge of
$2.3 million , or$0.12 per diluted share, resulting from the allocation of losses related to the company’s minority investment inRidemakerz, LLC , and costs of$0.1 million or$0.01 per diluted share, for the Friends 2B Made concept closure.
Fiscal 2009 first nine months (39 weeks ended
-
Total revenues were
$271.5 million compared to$325.7 million in the fiscal 2008 first nine months (39 weeks endedSeptember 27, 2008 ). Consolidated comparable store sales declined 15.0% including a 5.3% increase inEurope and an 18.2% decrease inNorth America (first nine month comparable store sales are compared to the 39 week period endedOctober 4, 2008 ). -
The net loss was
$11.6 million , or$0.61 per diluted share compared to the fiscal 2008 first nine months net loss of$0.4 million , or$0.02 per diluted share. -
The net loss for the first nine months of fiscal 2009 included, a
non-cash charge of
$2.8 million , or$0.15 per diluted share, resulting from the allocation of losses related to the company’s minority investment inRidemakerz, LLC , and costs of$0.5 million , or$0.03 per diluted share charge for the Friends 2B Made concept closure.
Fiscal 2009 Third-Quarter
Fiscal 2009 third quarter total revenues include net retail sales of
European operations net retail sales were
Fiscal 2008 third-quarter net loss included costs of
Year-to-date Financial Results
Fiscal 2009 first nine month total revenues include net retail sales of
European operations net retail sales were
The 2008 first nine month net loss included
Stores
During the 2008 third quarter the company opened 11 new stores – 10 in
Other Costs
In the 2009 third quarter, the company recorded a non-cash, net-of-tax
charge of
In the 2009 third quarter the company also completed the closure of the
Friends 2B Made concept and recorded a net-of-tax charge of
Today’s Conference Call Webcast
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
About
Forward-Looking Statements
This press release contains "forward-looking statements" (within the
meaning of the federal securities laws) which represent
(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 | 13 Weeks | |||||||||||||||
Ended | Ended | |||||||||||||||
October 3, | % of Total | September 27, | % of Total | |||||||||||||
2009 | Revenues (1) | 2008 | Revenues (1) | |||||||||||||
Revenues: | ||||||||||||||||
Net retail sales | $ | 89,731 | 97.8 | $ | 105,786 | 98.6 | ||||||||||
Franchise fees | 945 | 1.0 | 982 | 0.9 | ||||||||||||
Licensing revenue | 1,064 | 1.2 | 478 | 0.5 | ||||||||||||
Total revenues |
91,740 | 100.0 | 107,246 | 100.0 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of merchandise sold | 57,024 | 63.5 | 63,471 | 60.0 | ||||||||||||
Selling, general and administrative | 39,255 | 42.8 | 43,491 | 40.6 | ||||||||||||
Store preopening | 73 | 0.1 | 871 | 0.8 | ||||||||||||
Store closing | 250 | 0.3 | 2,916 | 2.7 | ||||||||||||
Equity losses from investment in affiliate | 4,592 | 5.0 | — | — | ||||||||||||
Interest expense (income), net | (44 | ) | (0.0 | ) | (135 | ) | (0.1 | ) | ||||||||
Total costs and expenses | 101,150 | 110.3 | 110,614 | 103.1 | ||||||||||||
Loss before income taxes | (9,410 | ) | (10.3 | ) | (3,368 | ) | (3.1 | ) | ||||||||
Income tax benefit | (4,647 | ) | (5.1 | ) | (1,353 | ) | (1.3 | ) | ||||||||
Net loss | $ | (4,763 | ) | (5.2 | ) | $ | (2,015 | ) | (1.9 | ) | ||||||
Loss per common share: | ||||||||||||||||
Basic | $ | (0.25 | ) | $ | (0.11 | ) | ||||||||||
Diluted | $ | (0.25 | ) | $ | (0.11 | ) | ||||||||||
Shares used in computing common per share amounts: | ||||||||||||||||
Basic | 18,876,697 | 18,815,996 | ||||||||||||||
Diluted | 18,876,697 | 18,815,996 | ||||||||||||||
(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) | ||||||||||||||||||||
39 Weeks | 39 Weeks | |||||||||||||||||||
Ended | Ended | |||||||||||||||||||
October 3, | % of Total | September 27, | % of Total | |||||||||||||||||
2009 | Revenue (1) | 2008 | Revenue (1) | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Net retail sales | $ | 267,354 | 98.5 | $ | 321,108 | 98.6 | ||||||||||||||
Franchise fees | 2,153 | 0.8 | 3,055 | 0.9 | ||||||||||||||||
Licensing revenue | 1,978 | 0.7 | 1,585 | 0.5 | ||||||||||||||||
Total revenues | 271,485 | 100.0 | 325,748 | 100.0 | ||||||||||||||||
Costs and expenses: | ||||||||||||||||||||
Cost of merchandise sold | 172,663 | 64.6 | 191,640 | 59.7 | ||||||||||||||||
Selling, general and administrative | 113,683 | 41.9 | 130,492 | 40.1 | ||||||||||||||||
Store preopening | 90 | 0.0 | 2,046 | 0.6 | ||||||||||||||||
Store closing | 981 | 0.4 | 2,916 | 0.9 | ||||||||||||||||
Equity losses from investment in affiliate | 5,125 | 1.9 | — | — | ||||||||||||||||
Interest expense (income), net | (92 | ) | 0.0 | (774 | ) | (0.2 | ) | |||||||||||||
Total costs and expenses | 292,450 | 107.7 | 326,320 | 100.2 | ||||||||||||||||
Loss before income taxes | (20,965 | ) | (7.7 | ) | (572 | ) | (0.2 | ) | ||||||||||||
Income tax benefit | (9,408 | ) | (3.5 | ) | (159 | ) | (0.0 | ) | ||||||||||||
Net loss | $ | (11,557 | ) | (4.3 | ) | $ | (413 | ) | (0.1 | ) | ||||||||||
Loss per common share: | ||||||||||||||||||||
Basic | $ | (0.61 | ) | $ | (0.02 | ) | ||||||||||||||
Diluted | $ | (0.61 | ) | $ | (0.02 | ) | ||||||||||||||
Shares used in computing common per share amounts: | ||||||||||||||||||||
Basic | 18,844,009 | 19,299,301 | ||||||||||||||||||
Diluted | 18,844,009 | 19,299,301 | ||||||||||||||||||
(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 per share data) | ||||||||||||
October 3, | January 3, | |||||||||||
2009 | 2009 | |||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 27,043 | $ | 47,000 | ||||||||
Inventories | 48,457 | 50,586 | ||||||||||
Receivables | 5,124 | 8,288 | ||||||||||
Prepaid expenses and other current assets | 21,545 | 16,151 | ||||||||||
Deferred tax assets | 4,243 | 3,839 | ||||||||||
Total current assets | 106,412 | 125,864 | ||||||||||
Property and equipment, net | 107,616 | 123,193 | ||||||||||
Goodwill | 33,247 | 30,480 | ||||||||||
Other intangible assets, net | 4,037 | 3,903 | ||||||||||
Investment in affiliate | 3,159 | 7,721 | ||||||||||
Other assets, net | 10,584 | 8,991 | ||||||||||
Total Assets | $ | 265,055 | $ | 300,152 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 28,134 | $ | 37,547 | ||||||||
Accrued expenses | 4,795 | 12,593 | ||||||||||
Gift cards and customer deposits | 21,157 | 29,210 | ||||||||||
Deferred revenue | 7,811 | 7,634 | ||||||||||
Total current liabilities | 61,897 | 86,984 | ||||||||||
Deferred franchise revenue | 2,102 | 2,033 | ||||||||||
Deferred rent | 36,298 | 41,714 | ||||||||||
Other liabilities | 1,222 | 1,696 | ||||||||||
Stockholders' equity: | ||||||||||||
Common stock, par value $0.01 per share | 204 | 195 | ||||||||||
Additional paid-in capital | 78,871 | 76,852 | ||||||||||
Accumulated other comprehensive loss | (7,247 | ) | (12,585 | ) | ||||||||
Retained earnings | 91,708 | 103,263 | ||||||||||
Total stockholders' equity | 163,536 | 167,725 | ||||||||||
Total Liabilities and Stockholders' Equity | $ | 265,055 | $ | 300,152 |
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 | |||||||||||||
October 3, | September 27, | October 3, | September 27, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Other financial data: | ||||||||||||||||
Gross margin ($) (1) | $ | 32,707 | $ | 42,315 | $ | 94,691 | $ | 129,468 | ||||||||
Gross margin (%) (1) | 36.5 | % | 40.0 | % | 35.4 | % | 40.3 | % | ||||||||
Capital expenditures, net (2) | $ | 2,938 | $ | 5,656 | $ | 6,651 | $ | 20,372 | ||||||||
Depreciation and amortization | $ | 7,025 | $ | 7,383 | $ | 21,114 | $ | 21,626 | ||||||||
Sales over the Internet | $ | 1,731 | $ | 2,024 | $ | 5,966 | $ | 6,893 | ||||||||
Store data (3): | ||||||||||||||||
Number of company-owned stores at end of period | ||||||||||||||||
North America | 291 | 288 | ||||||||||||||
Europe | 54 | 53 | ||||||||||||||
Total stores | 345 | 341 | ||||||||||||||
Number of franchised stores at end of period | 61 | 60 | ||||||||||||||
Company-owned store square footage at end of period | ||||||||||||||||
North America | 843,382 | 844,220 | ||||||||||||||
Europe (4) | 77,520 | 75,981 | ||||||||||||||
Total square footage | 920,902 | 920,201 | ||||||||||||||
Comparable store sales change (%) (5) (6) | ||||||||||||||||
North America | (16.0 | )% | (14.4 | )% | (18.2 | )% | (15.8 | )% | ||||||||
Europe | 2.5 | % | 8.2 | % | 5.3 | % | 8.3 | % | ||||||||
Consolidated | (12.9 | )% | (11.6 | )% | (15.0 | )% | (13.1 | )% | ||||||||
(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, 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, Ireland and France. | ||||||||||||||
(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. | ||||||||||||||
(6 | ) | Comparable store sales percentage changes for 2009 are based on net retail sales as compared to the 13 and 39 week periods ended October 4, 2008. | ||||||||||||||
Source:
Build-A-Bear Workshop, Inc.
Investors:
Molly Salky,
314-423-8000 x5353
or
Media:
Jill Saunders, 314-423-8000
x5293