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
SUBSIDIARIESUnaudited Condensed Consolidated Statements of
Operations(dollars in thousands, except share and per share
data)
13
WeeksEndedDecember 31,2011
% of
TotalRevenues(1)
13 WeeksEndedJanuary 1,2011
% of
TotalRevenues(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 SUBSIDIARIESUnaudited Condensed Consolidated
Statements of Operations(dollars in thousands, except share and
per share data)
52
WeeksEndedDecember 31,2011 % of
TotalRevenues (1) 52
WeeksEndedJanuary 1,2011 % of
TotalRevenues (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 SUBSIDIARIESUnaudited 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 SUBSIDIARIESUnaudited Selected Financial and Store
Data(dollars in thousands)
13
WeeksEndedDecember 31,2011
13 WeeksEndedJanuary 1,2011 52
WeeksEndedDecember 31,2011
52 WeeksEndedJanuary 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
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
Build A Bear Workshop (NYSE:BBW)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Build A Bear Workshop (NYSE:BBW)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024