Build-A-Bear Workshop, Inc. Reports Record Pre-Tax Income in Fiscal 2021

By: |  0 Shares     14 Reads

  • Generates total revenues of $411.5 million, an increase of 61.2% versus fiscal 2020 and 21.6% versus fiscal 2019
  • Gross profit margin is 53.0% compared to 38.2% in fiscal 2020 and 45.4% in fiscal 2019
  • Delivers pre-tax income of $50.7 million, the highest in the Company’s history, an improvement of $70.9 million compared to fiscal 2020 and $49.1 million compared to fiscal 2019
  • Net income is $47.3 million, or $2.93 per diluted share, compared to net loss of ($23.0) million, or ($1.54) per diluted share, in fiscal 2020 and net income of $0.3 million, or $0.02 per diluted share, in fiscal 2019
  • Adjusted net income is $38.3 million, or $2.37 per diluted share, compared to adjusted net loss of ($13.7) million, or ($0.92) per diluted share in fiscal 2020 and adjusted net income of $0.1 million, or $0.01 per diluted share, in fiscal 2019
  • Utilized $4.4 million to repurchase shares under the Company’s $25.0 million stock repurchase program adopted by its Board of Directors on November 30, 2021

ST. LOUIS – (BUSINESS WIRE) – Mar. 10, 2022 – Build-A-Bear Workshop, Inc. (NYSE: BBW) today reported results for the fourth quarter and fiscal year 2021 ended January 29, 2022.

Sharon Price John, Build-A-Bear Workshop President and Chief Executive Officer, commented, “We are pleased to report outstanding results for fiscal 2021 including the company’s highest total revenues in more than a decade and record-breaking profitability. We attribute the majority of our positive performance to the cumulative effect of the disciplined execution of a multi-year strategy to elevate and monetize our iconic brand even with external pressures that have reshaped consumer shopping habits. We believe these wide-scale, long-horizon actions significantly contributed to our current success enabling us to evolve into a digitally-driven, diversified omnichannel entity enhanced by a dynamic and efficient vertical retail presence with a solid financial position to invest in growth initiatives.

“As we continue to focus on executing our strategy, we are pleased to have kicked-off our planned year-long celebration of Build-A-Bear’s milestone 25th anniversary in 2022 with positive momentum on a quarter-to-date basis. While we recognize that the external environment remains volatile with ongoing inflationary pressure, we believe we have the building blocks in place to drive further profitable growth to continue to enhance shareholder value,” concluded Ms. John.

Fourth Quarter 2021 Highlights (13 weeks ended January 29, 2022 compared to the 13 weeks ended January 30, 2021 and February 1, 2020):

  • Total revenues were $130.0 million, an increase of 38.8% from $93.7 million in the fiscal 2020 fourth quarter, and a 24.3% increase from $104.6 million in the fiscal 2019 fourth quarter. The Company noted that the surge in COVID cases in the latter half of January 2022 led to constrained store labor and resulted in temporary store closures in 67 of its locations reducing store operating days in the month of January by 4.0%. The Company estimates its total revenues for the quarter were reduced by approximately $1.0 million as a result;
  • Net retail sales were $125.6 million, a 36.8% increase compared to $91.9 million in the fiscal 2020 fourth quarter and a 24.8% increase compared to $100.7 million in the fiscal 2019 fourth quarter;
  • Consolidated e-commerce demand (orders generated online to be fulfilled from either the Company’s warehouse or its stores) increased 3.5% compared to the fiscal 2020 fourth quarter representing a penetration of 20.7% of net retail sales. E-commerce demand increased 114.7% compared to the fiscal 2019 fourth quarter; and
  • Commercial and international franchise revenues were $4.3 million compared to $1.8 million in the fiscal 2020 fourth quarter and $3.9 million in the fiscal 2019 fourth quarter;
  • Gross profit margin was 53.5% compared to 50.2% in the fiscal 2020 fourth quarter and 50.4% in the fiscal 2019 fourth quarter. Gross profit margin expanded by 330 basis points compared to the fiscal 2020 fourth quarter and 310 basis points versus the fiscal 2019 fourth quarter. Gross profit margin expansion in the 2021 fourth quarter reflected increased leverage on fixed occupancy expense, partially offset by increased product and freight costs;
  • Selling, general and administrative (“SG&A”) expenses were $49.4 million, or 38.0% of total revenues, compared to $36.3 million, or 38.7% of total revenues in the fiscal 2020 fourth quarter and $45.1 million, or 43.1% of total revenues in the fiscal 2019 fourth quarter. The increase in SG&A expenses as compared to the fiscal 2020 fourth quarter was driven by higher labor costs given the lifting of capacity restrictions and expanded operating hours in stores. In addition, the change in SG&A reflected an increase in variable costs driven by sales growth initiatives inclusive of higher marketing spend and performance incentive programs;
  • Pre-tax income was $20.1 million, an improvement of $9.4 million compared to pre-tax income of $10.8 million in the fiscal 2020 fourth quarter, and an improvement of $12.5 million compared to pre-tax income of $7.6 million in the fiscal 2019 fourth quarter;
  • Adjusted pre-tax income was $19.6 million compared to adjusted pre-tax income of $9.3 million in the fiscal 2020 fourth quarter and adjusted pre-tax income of $7.3 million in the fiscal 2019 fourth quarter;
  • Income tax benefit was $4.0 million in the fiscal 2021 fourth quarter reflecting the full reversal of the Company’s tax valuation allowance in North America of $7.8 million offset by $3.8 million of tax expense. This compares to income tax expense of $0.3 million in the fiscal 2020 fourth quarter and an income tax expense of $1.4 million in the fiscal 2019 fourth quarter;
  • Net income was $24.1 million, or $1.48 per diluted share, compared to net income of $10.5 million, or $0.67 per diluted share, in the fiscal 2020 fourth quarter and net income of $6.2 million, or $0.42 per diluted share, in the fiscal 2019 fourth quarter;
  • Adjusted net income was $15.8 million, or $0.97 per diluted share, compared to adjusted net income of $8.9 million, or $0.58 per diluted share, in the fiscal 2020 fourth quarter and adjusted net income of $5.7 million, or $0.39 per diluted share, in the fiscal 2019 fourth quarter; and
  • Earnings before interest, taxes, depreciation and amortization (“EBITDA”) was $23.3 million, an increase of $9.1 million from the fiscal 2020 fourth quarter and an increase of $12.3 million from the fiscal 2019 fourth quarter.

Fiscal Year 2021 Highlights (52 weeks ended January 29, 2022, compared to the 52 weeks ended January 30, 2021 and February 1, 2020):

  • Total revenues were $411.5 million, an increase of 61.2% compared to $255.3 million in fiscal 2020 and an increase of 21.6% from $338.5 million in fiscal 2019;
  • Consolidated net retail sales were $397.7 million, an increase of 59.6% compared to $249.2 million in fiscal 2020 and an increase of 22.9% compared to $323.5 million in fiscal 2019;
  • Consolidated e-commerce demand (orders generated online to be fulfilled from either the Company’s warehouse or its stores) increased 8.5% compared to fiscal 2020, representing a penetration of 18.3% of net retail sales. E-commerce demand increased 156.1% compared to fiscal 2019;
  • Pre-tax income was $50.7 million compared to pre-tax loss of ($20.2) million in fiscal 2020 and pre-tax income of $1.6 million in fiscal 2019;
  • Income tax expense was $3.4 million, reflecting expense of $11.2 million partially offset by a full reversal of the Company’s tax valuation allowance in North America of $7.8 million, compared to expense of $2.8 million in fiscal 2020 and $1.3 million in fiscal 2019;
  • Net income was $47.3 million, or $2.93 per diluted share, compared to net loss of ($23.0) million, or ($1.54) per diluted share, in fiscal 2020 and net income of $0.3 million, or $0.02 per diluted share, in fiscal 2019;
    Adjusted net income was $38.3 million, or $2.37 per diluted share, compared to adjusted net loss of ($13.7) million, or ($0.92) per diluted share, in fiscal 2020, and compared to adjusted net income of $0.1 million, or $0.01 per diluted share, for fiscal 2019;
  • EBITDA was $63.0 million, an increase of $69.9 million from EBITDA of ($6.9) million in fiscal 2020 and an increase of $47.7 million from EBITDA of $15.3 million in fiscal 2019.

Store Activity:

As of January 29, 2022, the Company had 346 corporately-managed stores. The Company maintains a high level of lease optionality with over 75% of locations having a lease event within the next three years.

The Company noted that its third-party retail model showed a return to stability as locations associated with relationships that include Carnival Cruise Lines, Great Wolf Lodge Resorts, Landry’s and Beaches Family Resorts were mostly reopened. Separately, international franchise locations continued to be negatively impacted by COVID and experienced closures or operated under restrictions for a portion of fiscal 2021.

Balance Sheet:

As of January 29, 2022, cash and cash equivalents totaled $32.8 million compared to $34.8 million as of January 30, 2021. During the fourth quarter, the Company returned $24.4 million in value to shareholders through $4.4 million of repurchases of common stock and payment of a $20.0 million special dividend. The ending cash balance also reflected increased investment in working capital. The Company ended the fiscal year with no borrowings under its revolving credit facility.

Total inventory at year-end was $73.6 million, an increase of $26.7 million from fiscal 2020 year-end and an increase of $20.2 million from fiscal 2019 year-end. The majority of the increase was related to in-transit inventory due to strategically planned accelerated purchases used to partially mitigate inflationary and supply chain COVID-related pressures and anticipated continued increases in product and freight costs. For fiscal 2021, capital expenditures totaled $8.1 million and depreciation and amortization was $12.3 million.

Share Repurchase Program:

As of January 29, 2022, the Company utilized $4.4 million in cash to repurchase 245,554 shares under its $25.0 million program that was authorized by its Board of Directors on November 30, 2021. As of March 9, 2022, the Company had utilized a total of $5.0 million under the program and currently has $20.0 million available.

2022 Outlook:

The Company noted that its positive momentum has continued into its fiscal 2022 first quarter and is providing guidance for total revenues and profit for the period. The Company expects to provide guidance on these metrics for the fiscal year at a future date as it monitors the evolving external environment, assesses ongoing inflationary pressure and the potential impact of stimulus on consumer spending in the prior year. For the first quarter of fiscal 2022, the Company currently expects:

Total revenue to exceed first quarter of fiscal 2021; and
Pretax income and EBITDA to exceed the record profitability of first quarter of fiscal 2021.

In addition, for fiscal 2022, the Company currently expects capital expenditures to approximate $10 to $15 million and for depreciation and amortization to be in the range of $12 to $14 million. The Company expects an income tax rate of approximately 25% in fiscal 2022.

Note Regarding 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 income and income 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 on-going operating results. These measures should not be considered a substitute for or superior to GAAP results. These non-GAAP financial measures are defined and reconciled to the most comparable GAAP measure later in this document.

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 website 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 website for one year. A telephone replay will be available beginning at approximately noon ET today until midnight ET on March 17, 2022.

Forward-Looking Statements

This press release contains certain statements that are, or may be considered to be, “forward-looking statements” for the purpose of federal securities laws, including, but not limited to, statements that reflect our current views with respect to future events and financial performance. We generally identify these statements by words or phrases such as “may,” “might,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “intend,” “predict,” “future,” “potential” or “continue,” the negative or any derivative of these terms and other comparable terminology. All of the information concerning our future liquidity, future revenues, margins and other future financial performance and results, achievement of operating of financial plans or forecasts for future periods, sources and availability of credit and liquidity, future cash flows and cash needs, success and results of strategic initiatives and other future financial performance or financial position, as well as our assumptions underlying such information, constitute forward-looking information.

These statements are based only on our current expectations and projections about future events. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by these forward-looking statements, including those factors discussed under the caption entitled “Risks Related to Our Business” and “Forward-Looking Statements” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on April 16, 2020 and other periodic reports filed with the SEC which are incorporated herein.

All of our forward-looking statements are as of the date of this Press Release only. In each case, actual results may differ materially from such forward-looking information. We can give no assurance that such expectations or forward-looking statements will prove to be correct. An occurrence of or any material adverse change in one or more of the risk factors or other risks and uncertainties referred to in this Press Release or included in our other public disclosures or our other periodic reports or other documents or filings filed with or furnished to the SEC could materially and adversely affect our continuing operations and our future financial results, cash flows, available credit, prospects and liquidity. Except as required by law, the Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

All other brand names, product names, or trademarks belong to their respective holders.




































BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(dollars in thousands, except share and per share data)
     
   

13 Weeks

 

 

 

 

13 Weeks

 

 

   

Ended

 

 

 

 

Ended

 

 

   

January 29,

 

% of Total

 

 

January 30,

 

% of Total

   

2022

 

Revenues (1)

 

 

2021

 

Revenues (1)

Revenues:                  
Net retail sales $

125,638

 

 

96.7

  $

91,856

 

98.1

Commercial revenue  

3,701

 

 

2.8

   

1,370

 

1.5

International franchising  

623

 

 

0.5

   

434

 

0.5

Total revenues  

129,962

 

 

100.0

   

93,660

 

100.1

Cost of merchandise sold:      

 

       

 

Cost of merchandise sold – retail (1)  

57,694

 

 

45.9

   

45,483

 

49.5

Store asset impairment  

 

 

0.0

   

302

 

0.3

Cost of merchandise sold – commercial (1)  

2,398

 

 

64.8

   

528

 

38.5

Cost of merchandise sold – international franchising (1)  

357

 

 

57.3

   

299

 

68.9

Total cost of merchandise sold  

60,449

 

 

46.5

   

46,612

 

49.8

Consolidated gross profit  

69,513

 

 

53.5

   

47,048

 

50.2

       

 

       

 

Selling, general and administrative expense  

49,380

 

 

38.0

   

36,253

 

38.7

Interest (income) expense, net  

(16

)

 

(0.0)

   

4

 

0.0

Income before income taxes  

20,149

 

 

15.5

   

10,791

 

11.5

Income tax (benefit) expense  

(3,978

)

 

(3.1)

   

321

 

0.3

Net income $

24,127

 

 

18.6

  $

10,470

 

11.2

                   
Income per common share:                  
Basic $

1.53

 

      $

0.70

   
Diluted $

1.48

 

      $

0.67

   
Shares used in computing common per share amounts:                  
Basic  

15,804,481

 

       

14,999,786

   
Diluted  

16,294,679

 

       

15,524,340

   




(1)

  Selected statement of operations data expressed as a percentage of total revenues, except cost of merchandise sold – retail, cost of merchandise sold – commercial and cost of merchandise sold – international franchising that are expressed as a percentage of net retail sales, commercial revenue and international franchising, respectively. Percentages will not total due to cost of merchandise sold being expressed as a percentage of net retail sales, commercial revenue or international franchising and immaterial rounding.

 




































BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(dollars in thousands, except share and per share data)
       
     

52 Weeks

 

 

 

 

52 Weeks

 

 

     

Ended

 

 

 

 

Ended

 

 

     

January 29,

 

% of Total

 

 

January 30,

 

% of Total

     

2022

 

Revenues (1)

 

 

2021

 

Revenues (1)

Revenues:                    
Net retail sales   $

397,690

 

 

96.6

  $

249,210

 

 

97.6

Commercial revenue    

11,505

 

 

2.8

   

4,426

 

 

1.7

International franchising    

2,327

 

 

0.6

   

1,674

 

 

0.7

Total revenues    

411,522

 

 

100.0

   

255,310

 

 

100.0

Costs and expenses:        

 

       

 

Cost of merchandise sold – retail (1)    

186,382

 

 

46.9

   

147,783

 

 

59.3

Store asset impairment (2)    

 

 

0.0

   

7,346

 

 

2.9

Cost of merchandise sold – commercial (1)    

5,648

 

 

49.1

   

1,837

 

 

41.5

Cost of merchandise sold – international franchising (1)    

1,537

 

 

66.1

   

935

 

 

55.9

Total cost of merchandise sold    

193,567

 

 

47.0

   

157,901

 

 

61.8

Consolidated gross profit    

217,955

 

 

53.0

   

97,409

 

 

38.2

         

 

       

 

Selling, general and administrative expense    

167,250

 

 

40.6

   

117,585

 

 

46.1

Interest (income) expense, net    

(5

)

 

(0.0)

   

10

 

 

0.0

Income (loss) before income taxes    

50,710

 

 

12.3

   

(20,186

)

 

(7.9)

Income tax expense    

3,445

 

 

0.8

   

2,797

 

 

1.1

Net income (loss)   $

47,265

 

 

11.5

  $

(22,983

)

 

(9.0)

                     
Income (loss) per common share:                    
Basic   $

3.06

 

      $

(1.54

)

   
Diluted   $

2.93

 

      $

(1.54

)

   
Shares used in computing common per share amounts:                    
Basic    

15,460,634

 

       

14,923,304

 

   
Diluted    

16,122,583

 

       

14,923,304

 

   






(1)

  Selected statement of operations data expressed as a percentage of total revenues, except cost of merchandise sold – retail, cost of merchandise sold – commercial and cost of merchandise sold – international franchising that are expressed as a percentage of net retail sales, commercial revenue and international franchising, respectively. Percentages will not total due to cost of merchandise sold being expressed as a percentage of net retail sales, commercial revenue or international franchising and immaterial rounding.
     

(2)

  Due to the charges primarily in the 52 weeks ended January 30, 2020, a separate line item was disclosed and expressed as a percentage of net retail sales.

 












































BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(dollars in thousands, except per share data)
             
   

January 29,

 

January 30,

 

February 1,

   

2022

 

2021

 

2020

ASSETS
Current assets:            
Cash, cash equivalents and restricted cash  

$

32,845

 

 

$

34,840

 

 

$

26,726

 

Inventories, net  

 

73,609

 

 

 

46,947

 

 

 

53,381

 

Receivables, net  

 

13,316

 

 

 

8,295

 

 

 

11,526

 

Prepaid expenses and other current assets  

 

12,852

 

 

 

10,111

 

 

 

7,117

 

Total current assets  

 

132,622

 

 

 

100,193

 

 

 

98,750

 

             
Operating lease right-of-use asset  

 

77,671

 

 

 

104,825

 

 

 

126,144

 

Property and equipment, net  

 

48,966

 

 

 

52,973

 

 

 

65,855

 

Deferred tax assets  

 

7,613

 

 

 

 

 

 

3,411

 

Other assets, net  

 

2,077

 

 

 

3,381

 

 

 

3,102

 

Total Assets  

$

268,949

 

 

$

261,372

 

 

$

297,262

 

             
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:            
Accounts payable  

$

25,264

 

 

$

17,901

 

 

$

15,680

 

Accrued expenses  

 

25,543

 

 

 

17,551

 

 

 

16,536

 

Operating lease liability short term  

 

24,455

 

 

 

32,402

 

 

 

30,912

 

Gift cards and customer deposits  

 

20,937

 

 

 

19,029

 

 

 

20,231

 

Deferred revenue and other  

 

3,808

 

 

 

2,445

 

 

 

2,605

 

Total current liabilities  

 

100,007

 

 

 

89,328

 

 

 

85,964

 

             
Operating lease liability long term  

 

73,307

 

 

 

101,462

 

 

 

119,625

 

Deferred franchise revenue  

 

734

 

 

 

920

 

 

 

1,325

 

Other liabilities  

 

1,218

 

 

 

2,354

 

 

 

1,717

 

             
Stockholders’ equity:            
Common stock, par value $0.01 per share  

 

162

 

 

 

159

 

 

 

152

 

Additional paid-in capital  

 

75,490

 

 

 

72,822

 

 

 

70,633

 

Accumulated other comprehensive loss  

 

(12,470

)

 

 

(12,615

)

 

 

(12,079

)

Retained earnings/(deficit)  

 

30,501

 

 

 

6,942

 

 

 

29,925

 

Total stockholders’ equity  

 

93,683

 

 

 

67,308

 

 

 

88,631

 

Total Liabilities and Stockholders’ Equity  

$

268,949

 

 

$

261,372

 

 

$

297,262

 

             

 

































BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Selected Financial and Store Data
(dollars in thousands)
                     
     

13 Weeks

 

13 Weeks

 

 

52 Weeks

 

52 Weeks

     

Ended

 

Ended

 

 

Ended

 

Ended

     

January 29,

 

January 30,

 

 

January 29,

 

January 30,

     

2022

 

2021

 

 

2022

 

2021

                     
Other financial data:                  
                     
  Retail gross margin ($) (1) $

67,944

 

$

46,373

 

  $

211,308

 

$

101,427

 

  Retail gross margin (%) (1)  

54.1

%

 

50.5

%

   

53.1

%

 

40.7

%

  Capital expenditures (2) $

3,537

 

$

1,017

 

  $

8,130

 

$

5,046

 

  Depreciation and amortization $

3,124

 

$

3,332

 

  $

12,276

 

$

13,237

 

                     
Store data (3):                  
  Number of corporately-managed retail locations at end of period                  
  North America            

305

 

 

305

 

  Europe            

41

 

 

48

 

  Asia            

 

 

1

 

  Total corporately-managed retail locations            

346

 

 

354

 

                     
  Number of franchised stores at end of period            

72

 

 

77

 

                     
  Corporately-managed store square footage at end of period (4)                  
  North America            

711,768

 

 

712,287

 

  Europe            

61,090

 

 

71,609

 

  Asia            

 

 

1,750

 

  Total square footage            

772,858

 

 

785,646

 







(1)

  Retail gross margin represents net retail sales less cost of merchandise sold – retail. Retail gross margin percentage represents retail gross margin divided by net retail sales. Store impairment is excluded from retail gross margin.

(2)

  Capital expenditures represents cash paid for property, equipment, and other assets.

(3)

  Excludes e-commerce. North American stores are located in the United States and Canada. In Europe, stores are located in the United Kingdom and Ireland. Seasonal locations not included in store count.

(4)

  Square footage for stores located in North America is leased square footage. Square footage for stores located in Europe is estimated selling square footage. Seasonal locations not included in the store count.

 









































* Non-GAAP Financial Measures                          
                           
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Results
(dollars in thousands, except per share data)
                     
                           
   

13 Weeks

 

13 Weeks

 

13 Weeks

 

 

52 Weeks

 

52 Weeks

 

52 Weeks

   

Ended

 

Ended

 

Ended

 

 

Ended

 

Ended

 

Ended

   

January 29,

 

January 30,

 

February 1,

 

 

January 29,

 

January 30,

 

February 1,

   

2022

 

2021

 

2020

 

 

2022

 

2021

 

2020

Income (loss) before income taxes (pre-tax)  

$

20,149

 

 

$

10,791

 

 

$

7,588

 

   

$

50,710

 

 

$

(20,186

)

 

$

1,561

 

Income (loss) before income tax adjustments:                          
United Kingdom Lockdown Business & Restart Grants (1)  

 

10

 

 

 

(756

)

 

 

 

   

 

(842

)

 

 

(756

)

 

 

 

COVID activity (2)  

 

26

 

 

 

30

 

 

 

 

   

 

70

 

 

 

142

 

 

 

 

Ohio Bureau of Workers’ Compensation Dividend (3)  

 

 

 

 

(332

)

 

 

 

   

 

 

 

 

(332

)

 

 

 

Impairment, bad debt, and lease modification (4)(5)  

 

(1,107

)

 

 

328

 

 

 

(244

)

   

 

(1,054

)

 

 

7,956

 

 

 

(1,016

)

Foreign exchange (gains) losses (6)  

 

498

 

 

 

(798

)

 

 

(261

)

   

 

521

 

 

 

(601

)

 

 

71

 

Other (7)  

 

 

 

 

2

 

 

 

202

 

   

 

 

 

 

336

 

 

 

370

 

Adjusted income (loss) before income taxes (adjusted pre-tax)  

 

19,576

 

 

 

9,265

 

 

 

7,285

 

   

 

49,405

 

 

 

(13,441

)

 

 

986

 

                           
                           
Income tax (expense) benefit  

 

3,978

 

 

 

(321

)

 

 

(1,426

)

   

 

(3,445

)

 

 

(2,797

)

 

 

(1,300

)

Tax adjustments:                          
Income tax impact: adjustments (8)(9)  

 

56

 

 

 

 

 

 

(132

)

   

 

78

 

 

 

 

 

 

(53

)

Income tax impact: CARES Act (10)  

 

 

 

 

 

 

 

 

   

 

 

 

 

(773

)

 

 

 

Valuation allowance (11)(12)  

 

(7,761

)

 

 

 

 

 

 

   

 

(7,761

)

 

 

3,272

 

 

 

449

 

Adjusted income tax (expense) benefit  

 

(3,727

)

 

 

(321

)

 

 

(1,558

)

   

 

(11,128

)

 

 

(298

)

 

 

(904

)

                           
Net income (loss)  

 

24,127

 

 

 

10,470

 

 

 

6,162

 

   

 

47,265

 

 

 

(22,983

)

 

 

261

 

Adjustments  

 

(8,278

)

 

 

(1,526

)

 

 

(435

)

   

 

(8,988

)

 

 

9,244

 

 

 

(179

)

Adjusted net income (loss)  

$

15,849

 

 

$

8,944

 

 

$

5,727

 

   

$

38,277

 

 

$

(13,739

)

 

$

82

 

                           
                           
                           
Net income (loss) per diluted share (EPS)  

$

1.48

 

 

$

0.67

 

 

$

0.42

 

   

$

2.93

 

 

$

(1.54

)

 

$

0.02

 

                           
Adjusted net income (loss) per diluted share (adjusted EPS)  

$

0.97

 

 

$

0.58

 

 

$

0.39

 

   

$

2.37

 

 

$

(0.92

)

 

$

0.01

 















(1)

 

Represents the business grants received and adjusted from the United Kingdom government for business in the retail, hospitality and leisure sectors. These grants were provided on a per-property basis to support businesses through the latest lockdown restrictions as a result of the COVID pandemic and to resume business when restrictions were eased.

(2)

 

Represents COVID related expenses at our stores, warehouse, and headquarters.

(3)

 

Represent a dividend distribution received from the Ohio Bureau of Workers’ Compensation in the fourth quarter of fiscal 2020.

(4)

 

Represents the lease modification impacts of exercising early termination options in leases offset by non-cash impairment charges related to store fixed assets, receivables, and inventory in the 13 and 52 weeks ended January 29, 2022 and February 1, 2020

(5)

 

Represents non-cash adjustments including asset impairment charges related to store fixed assets and right-of-use operating lease assets and bad debt expense in the 13 and 52 weeks ending January 30, 2021.

(6)

 

Represents the consolidated impact of foreign exchange rates on the re-measurement of balance sheet items not denominated in functional currency recorded under the provisions of U.S. GAAP. This does not include any impact on margin associated with the translation of revenues or the foreign subsidiaries’ purchase of inventory in U.S. dollars.

(7)

 

Represents severance and other non-recurring changes in reserves and charges.

(8)

 

Represents the aggregate tax impact of the pre-tax adjustments for North American adjustments for the 13 and 52 weeks ended January 29, 2022 and February 1, 2020. Europe had a full valuation allowance and did not realized an income tax effects on these adjustments for the 13 and 52 weeks ended January 29, 2022 and February 1, 2020.

(9)

 

As a result of the Company’s full, global valuation allowance recorded in the first quarter of fiscal year 2020, the Company did not realize an income tax effects on these adjustments for the 13 and 52 weeks ended January 30, 2021.

(10)

 

Represents the impact of the technical correction related to qualified leasehold improvements resulting from the CARES Act occuring in the first quarter of fiscal 2020

(11)

 

Represents the reversal of the full valuation allowance on its net deferred tax assets in North America in the fourth quarter of fiscal 2021.

(12)

 

Represents the valuation allowance recorded on its net deferred tax assets in North America in the first quarter of fiscal 2020 and the United Kingdom in the fourth quarter of fiscal 2019.

 





























Reconciliation of GAAP to Non-GAAP figures
(dollars in thousands)
             
   

13 Weeks

 

13 Weeks

 

13 Weeks

   

Ended

 

Ended

 

Ended

   

January 29,

 

January 30,

 

February 1,

   

2022

 

2021

 

2020

Income before income taxes (pre-tax)  

 $

         20,149

 

 

 $

         10,791

 

 

 $

           7,588

 

Interest (income) expense, net  

 

                 (16

)

 

 

                    4

 

 

 

                   (6

)

Depreciation and amortization expense  

 

              3,124

 

 

 

              3,332

 

 

 

              3,346

 

Earnings before interest, taxes, depreciation and amortization (EBITDA)  

 $

         23,257

 

 

 $

         14,127

 

 

 $

         10,928

 

Adjustments  

 

               (573

)

 

 

             (1,526

)

 

 

               (303

)

Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA)  

 $

         22,684

 

 

 $

         12,601

 

 

 $

         10,625

 

             
             
             
   

52 Weeks

 

52 Weeks

 

52 Weeks

   

Ended

 

Ended

 

Ended

   

January 29,

 

January 30,

 

February 1,

   

2022

 

2021

 

2020

Income (loss) before income taxes (pre-tax)  

 $

         50,710

 

 

 $

        (20,186

)

 

 $

           1,561

 

Interest (income) expense, net  

 

                   (5

)

 

 

                  10

 

 

 

                  15

 

Depreciation and amortization expense  

 

            12,276

 

 

 

            13,237

 

 

 

            13,705

 

Earnings (loss) before interest, taxes, depreciation and amortization (EBITDA)  

 $

         62,981

 

 

 $

          (6,939

)

 

 $

         15,281

 

Adjustments  

 

             (1,305

)

 

 

              6,745

 

 

 

               (575

)

Adjusted earnings (loss) before interest, taxes, depreciation and amortization (adjusted EBITDA)  

 $

         61,676

 

 

 $

            (194

)

 

 $

         14,706

 

SOURCE Build-A-Bear

###

Comments:


comments powered by



Source link