Build-A-Bear Workshop, Inc. Reports Fiscal 2007 Fourth-Quarter and Full-Year Results.* Fourth quarter total revenue increased 3% to $147.4 million. Full-year total revenue increased 9% to $474.4 million. * Sales from European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations increased 49% to $23.5 million and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 55% to $5.1 million in fourth quarter 2007 vs. fourth quarter 2006. * Fourth quarter diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. are $0.48 including costs associated with an inventory write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of $0.08 per share and expenses associated with the review of strategic alternatives of $0.01 per share. * Full year diluted EPS were $1.10 including costs associated with an inventory write-off of $0.08 per share and expenses associated with the review of strategic alternatives of $0.03 per share. ST. LOUIS -- Build-A-Bear Workshop Build-A-Bear Workshop (NYSE: BBW) is an American retailer that sells customizable teddy bears and other stuffed animals. Build-A-Bear is the largest of the create-your-own animal chains with the other companies in the business consisting of regional and/or locally-owned , Inc. (NYSE NYSE See: New York Stock Exchange : BBW BBW Big Beautiful Women BBW Big Black Women BBW Beautiful Black Women BBW Broadband Wireless BBW Bath & Body Works BBW Big Bad Wolf BBW Buyer Beware BBW Broken Bow, Nebraska (Airport Code) BBW Brake-By-Wire ), an interactive entertainment retailer of customized stuffed animals
A stuffed animal is toy animal stuffed with straw, beans, cotton or other similar materials. Some stuffed animals are very old – home made cloth dolls stuffed with straw go back to at least the , today reported results for the 2007 fourth quarter and full year. Fiscal 2007 fourth quarter (13 weeks ended Dec. 29, 2007) total revenue increased 3% to $147.4 million, compared to $143.3 million in the fiscal 2006 fourth quarter (13 weeks ended Dec. 30, 2006). Fiscal 2007 full year (52 weeks ended Dec. 29, 2007) total revenue increased 9% to $474.4 million, compared to $437.1 million in the fiscal 2006 full year (52 weeks ended Dec. 30, 2006). "Our 2007 results reflect the current challenges in the retail environment," said Build-A-Bear Workshop Chairman and Chief Executive Bear, Maxine Clark. "Our 2008 plan balances our long term business goals while recognizing these near term challenges. While our full market potential in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. remains more than 350 stores, we will slow new store growth this year to approximately 20 stores, down from 39 new stores in 2007. This allows us to focus on building our long term brand value with the addition of our virtual world, buildabearville.com. Our strategy has always been to put our brand wherever families and children go to have fun and our investment in buildabearville.com recognizes the emerging trend of kids' interaction and play in the online space. We believe we are strongly positioned to lead in this space with over 60 million stuffed animals sold and over 24 million households in our database. In addition to leveraging buildabearville.com to bring traffic to our stores, our ongoing marketing and merchandise plans balance initiatives to attract new Guests and retain existing Guests. While our near term sales trends reflect the continuing decline in consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. , we believe that our business plan, superior store economic model, strong cash flow, and flexible capital structure will deliver long term sales and earnings growth." As announced in June 2007, the Company retained Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. to assist it and the Board of Directors in an analysis and consideration of a broad range of strategic alternatives to enhance long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. shareholder value. This review of potential strategic alternatives is continuing. "While we hoped to have concluded this process by now, its timing has been complicated by a significant tightening of the financing markets and the general weakness in the retail environment," added Clark. However, we currently expect that the Board will conclude its review by the end of the first quarter." There is no assurance that the conclusion of this process will result in any changes to the Company's current business plans or lead to any specific action or transaction. As before, the Company does not expect to disclose further developments regarding its review of potential strategic alternatives until the review has been completed. Fiscal 2007 Fourth Quarter Financial Results Fiscal 2007 fourth quarter total revenue includes net retail sales of $144.8 million, an increase of $3.5 million or 2% compared to last year's fourth quarter. Net retail sales growth benefited from new stores opened during the past 12 months in North America, an increase in sales from European operations of $7.7 million, and an increase in Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the sales of 9% to $5.2 million. Comparable store sales in North America declined 12.6% compared to a decline of 10.4% in the 2006 fourth quarter. Net retail sales from European operations totaled $23.5 million in the 2007 fourth quarter, compared to $15.8 million in the 2006 fourth quarter, an increase of 49%. Operating income from European operations totaled $5.1 million in the 2007 fourth quarter, compared to $3.3 million in the 2006 fourth quarter, an increase of 55%. "We are pleased with the growth and improvement delivered by our European operations," said Clark. "We are gaining positive traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. in the United Kingdom; our brand building and store operation strategies are delivering results." Fiscal 2007 fourth quarter net income was $9.9 million, or $0.48 per diluted share. The 2007 fourth quarter net income includes costs associated with an inventory write-off of $1.6 million and costs associated with the review of strategic alternatives of $0.3 million. Fiscal 2006 fourth quarter net income was $15.4 million or $0.75 per diluted share. The 2006 fourth quarter benefited from an adjustment to the Company's loyalty program of $3.1 million. During the 2007 fourth quarter, the company opened eight new Build-A-Bear Workshop (BABW BABW Build-A-Bear Workshop ) retail stores in North America, as planned, compared with opening six new BABW stores and one new friends 2B made[R] store during the 2006 fourth quarter. The company also opened three new stores in the United Kingdom and one new store in France in the 2007 fourth quarter. During 2007 the company opened 50 new stores - 39 in North America, eight in the United Kingdom and three in France ending the year with a total of 272 company-owned stores in North America and 49 in Europe. Fiscal 2007 Full Year Results Fiscal 2007 total revenue includes net retail sales of $468.2 million, an increase of $35.6 million, or 8 % compared to fiscal 2006. Net retail sales growth benefited from new stores opened during the past 12 months in North America, an increase in sales from European operations of $26.3 million, and an increase in Internet sales of 13% to $12.2 million. Comparable store sales in North America declined 9.9% compared to a decline of 6.5% in fiscal 2006. Net retail sales from European operations totaled $59.0 million in the 2007 full year, compared to $32.7 million in the 2006 full year, an increase of 80%. Operating income from European operations totaled $0.7 million in 2007 fiscal year compared to a loss of $1.5 million in 2006 fiscal year. Fiscal 2007 full year net income was $22.5 million, or $1.10 per diluted share. The 2007 full year net income includes costs associated with an inventory write-off of $1.5 million and costs associated with the review of strategic alternatives of $0.7 million. Fiscal 2006 full year net income was $29.5 million, or $1.44 per diluted share. The 2006 full year net income included distribution center transition costs of $1.0 million and benefited from an adjustment to the Company's loyalty program of $2.2 million. On April 2, 2006 the company completed the acquisition of The Bear Factory Limited, a United Kingdom-based stuffed animal retailer, and the acquisition of Amsbra, Ltd., the company's former franchisee in the United Kingdom. Therefore, the Company's results for fiscal 2006 reflect the impact of this acquisition for only a portion of the period. Furthermore, during the 2007 third quarter the Company opened its first company-owned stores in France. International Franchising During fiscal 2007 fourth quarter, international franchisees opened seven new stores. For the 2007 full year franchisees opened 22 new stores and closed three stores, ending the year with 53 stores located in 15 countries. The Company currently has franchise agreements covering 21 countries and anticipates franchisees will open 15 to 20 new stores in 2008. Fiscal 2008 Outlook The Company's policy is to not provide forward looking guidance until the Board's review of potential strategic alternatives is complete. However, the fiscal 2008 (53 weeks ended Jan. 3, 2009) business plan is based upon the following plans and assumes a continued challenging economic environment with modest improvement expected in the second half of the year. * Slower new store growth compared to fiscal 2007 while continuing to grow total revenues through the addition of approximately 25 new company-owned stores - approximately 20 new stores in North America (vs. 39 new stores in 2007) and approximately five new stores in Europe (vs. 11 new stores in 2007) -- and an additional week in fiscal 2008 (53- week year). * Opening 15 to 20 new stores by international franchisees. * Continued investment of 7.0% to 7.5% of total revenues in marketing programs aimed at increasing brand awareness and store traffic, including programs supporting the Build-A-Bear Workshop retail stores and brand, our Stuff Fur Stuff[R] club loyalty program, and our buildabearville.com virtual world. * Investment in development and ongoing support of our buildabearville.com virtual world. * Capital expenditures in the range of $25 to $30 million. 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 EST electroshock therapy. EST abbr. electroshock therapy today. The broadcast may be accessed at our investor relations Investor relations The process by which the corporation communicates with its investors. Web site, http://IR.buildabear.com. The call is expected to conclude by 10 a.m. 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 on Feb. 28, 2008. The telephone replay is available by calling (617) 801-6888. The access code is 55848039. 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. The company currently operates more than 370 Build-A-Bear Workshop stores worldwide, including company-owned stores in the U.S., Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. , Canada, the United Kingdom, Ireland and France, and franchise stores in Europe, Asia, Australia and Africa. Founded in St. Louis in 1997, Build-A-Bear Workshop is the leader in interactive retail. Brands include make-your-own Major League Baseball "MLB" and "Major Leagues" redirect here. For other uses, see MLB (disambiguation) and Major Leagues (disambiguation). Major League Baseball (MLB) is the highest level of play in North American professional baseball. [R] mascot MASCOT - Modular Approach to Software Construction Operation and Test: a method for software design aimed at real-time embedded systems from the Royal Signals and Research Establishment, UK. in-stadium locations, Build-A-Dino[R] stores and friends 2B made[R] doll locations. In December 2007, Build-A-Bear Workshop extended its in-store interactive experience online with the launch of its virtual world at www.buildabearville.com. Build-A-Bear Workshop (NYSE: BBW) posted total revenue of $474 million in fiscal 2007. 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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. 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 interest in and demand for our interactive retail experience, or to identify and respond to consumer preferences in a timely fashion; we do not know the results of the strategic alternatives evaluation process announced on June 28, 2007 or whether the process will result in any changes to the company's current business plans or lead to any specific action or transaction; our marketing and on-line initiatives may not be effective in generating sufficient levels of brand awareness and guest traffic; we may be unable to generate comparable store sales growth; we may be unable to open new stores or may be unable to effectively manage our growth; we may be unable to effectively manage our international franchises or laws relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc those franchises may change; we may be unable to realize some of the expected benefits of the acquisition of Amsbra and Bear Factory including making these operations profitable; customer traffic may decrease in the shopping malls where we are located, on which we depend to attract guests to our stores; general economic conditions may deteriorate de·te·ri·o·rate v. 1. To grow worse in function or condition. 2. To weaken or disintegrate. , which could lead to disproportionately dis·pro·por·tion·ate adj. Out of proportion, as in size, shape, or amount. dis  pro·por reduced consumer
demand for our products, which represent relatively discretionary
spending; our market share could be adversely affected by a significant,
or increased, number of competitors; we may lose key personnel, be
unable to hire qualified additional personnel, or experience turnover of
our management team; the ability of our principal vendors to deliver
merchandise may be disrupted dis·rupt tr.v. dis·rupt·ed, dis·rupt·ing, dis·rupts 1. To throw into confusion or disorder: Protesters disrupted the candidate's speech. 2. ; the availability and costs of our products could be adversely affected by risks associated with international manufacturing and trade; high petroleum products prices could increase our inventory transportation costs and adversely affect our profitability; we may be unable to realize the anticipated benefits from our company-owned distribution center; fluctuations in our quarterly results of operations could cause the price of our common stock to substantially decline; 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 The encroachment, breach, or violation of a right, law, regulation, or contract. The term is most frequently used in reference to the invasion of rights secured by Copyright, patent, or trademark. or misappropriation misappropriation n. the intentional, illegal use of the property or funds of another person for one's own use or other unauthorized purpose, particularly by a public official, a trustee of a trust, an executor or administrator of a dead person's estate, or by any of their proprietary rights; we may be unable to renew or replace our store leases, or enter into leases for new stores on favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms or in favorable locations, or may violate the terms of our current leases; we may suffer negative publicity or be sued due to violations of labor laws labor law, legislation dealing with human beings in their capacity as workers or wage earners. The Industrial Revolution, by introducing the machine and factory production, greatly expanded the class of workers dependent on wages as their source of income. or unethical unethical said of conduct not conforming with professional ethics. practices by manufacturers of our merchandise; and we may improperly im·prop·er adj. 1. Not suited to circumstances or needs; unsuitable: improper shoes for a hike; improper medical treatment. 2. obtain or be unable to protect information from our guests in violation of privacy or security laws or expectations. 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, including as described in the Company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December 30, 2006. 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. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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