Build-A-Bear Workshop Inc 8-K/A, filed Apr 8, 2021

Build-A-Bear Workshop Inc (BBW)

8-K/A 2021-04-08 For: 2021-03-10

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Added on April 09, 2026

About this 8-K/A

Build-A-Bear Workshop Inc filed this 8-K/A on April 8, 2021, reporting on events of March 10, 2021.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Delaware		001-32320		43-1883836
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

415 South 18th St., St. Louis, Missouri		63103
(Address of Principal Executive Offices)		(Zip Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	BBW	New York Stock Exchange

Summary of Changes (Dollars in thousands, except per share data or otherwise noted)
	Original	Revised	Change
Consolidated Balance Sheet as of January 30, 2021
Accounts payable	$17,784	$17,901	$117
Accrued expenses	20,326	17,551	(2,775)
Other liabilities	1,323	2,354	1,031
Retained earnings	5,315	6,942	1,627

Company’s Consolidated Statements of Operations for the 13 weeks ended January 30, 2021
Cost of merchandise sold – retail	$45,606	$45,483	($123)
Consolidated gross profit	46,925	47,048	123
Selling, general and administrative expense	37,757	36,253	(1,504)
(Loss) income before income taxes	9,164	10,791	1,627
Net (loss) income	8,843	10,470	1,627
(Loss) income per common share
Basic	$0.59	$0.70	$0.11
Diluted	0.57	0.67	0.10

Company’s Consolidated Statements of Operations for the 52 weeks ended January 30, 2021
Cost of merchandise sold – retail	$147,906	$147,783	($123)
Consolidated gross profit	97,286	97,409	123
Selling, general and administrative expense	119,089	117,585	(1,504)
(Loss) income before income taxes	(21,813)	(20,186)	1,627
Net (loss) income	(24,610)	(22,983)	1,627
(Loss) income per common share
Basic	($1.65)	($1.54)	$0.11
Diluted	(1.65)	(1.54)	0.11

	Original	Revised	Change
Selected Financial and Store data – Other financial data for 13 weeks ended January 30, 2021
Retail gross margin ($)	$46,250	$46,373	$123
Retail gross margin (%)	50.4%	50.5%	0.1%

Selected Financial and Store data – Other financial data for 52 weeks ended January 30, 2021
Retail gross margin ($)	$101,304	$101,427	$123

Reconciliation of GAAP to Non-GAAP Results for 13 weeks ended January 30, 2021
Income (loss) before income taxes (pre-tax)	$9,164	$10,791	$1,627
Adjusted income (loss) before income taxes (adjusted pre-tax)	7,638	9,265	1,627

Net (loss) income	$8,843	$10,470	$1,627
Adjusted net (loss) income	7,317	8,944	1,627

Net (loss) income per diluted share (EPS)	$0.57	$0.67	$0.10
Adjusted net (loss) income per diluted share (adjusted EPS)	0.47	0.58	0.11

Reconciliation of GAAP to Non-GAAP Results for 52 weeks ended January 30, 2021
Income (loss) before income taxes (pre-tax)	($21,813)	($20,186)	$1,627
Adjusted income (loss) before income taxes (adjusted pre-tax)	(15,068)	(13,441)	1,627

Net (loss) income	($24,610)	($22,983)	$1,627
Adjusted net (loss) income	(15,366)	(13,739)	1,627

Net (loss) income per diluted share (EPS)	($1.65)	($1.54)	$0.11
Adjusted net (loss) income per diluted share (adjusted EPS)	($1.03)	(0.92)	0.11

	13 Weeks				13 Weeks
	Ended				Ended
	January 30,		% of Total		February 1,			% of Total
	2021		Revenues ⁽¹⁾		2020			Revenues ⁽¹⁾
Revenues:
Net retail sales	$	91,856		98.1	$	100,654			96.3
Commercial revenue		1,370		1.5		3,385			3.2
International franchising		434		0.4		544			0.5
Total revenues		93,660		100.0		104,583			100.0
Cost of merchandise sold:
Cost of merchandise sold - retail ⁽¹⁾		45,483		49.5		49,930			49.6
Store asset impairment		302		0.3		—			0.0
Cost of merchandise sold - commercial ⁽¹⁾		528		38.5		1,545			45.6
Cost of merchandise sold - international franchising ⁽¹⁾		299		68.9		419			77.0
Total cost of merchandise sold		46,612		49.8		51,894			49.6
Consolidated gross profit		47,048		50.2		52,689			50.4

Selling, general and administrative expense		36,253		38.7		45,107			43.1
Interest (income) expense, net		4		0.0		(6	)		(0.0	)
(Loss) income before income taxes		10,791		11.5		7,588			7.3
Income tax expense		321		0.3		1,426			1.4
Net (loss) income	$	10,470		11.2	$	6,162			5.9

(Loss) Income per common share:
Basic	$	0.70			$	0.42
Diluted	$	0.67			$	0.42
Shares used in computing common per share amounts:
Basic		14,999,786				14,752,560
Diluted		15,524,340				14,808,984

	52 Weeks						52 Weeks
	Ended						Ended
	January 30,			% of Total			February 1,		% of Total
	2021			Revenues ⁽¹⁾			2020		Revenues ⁽¹⁾
Revenues:
Net retail sales	$	249,210			97.6		$	323,491		95.6
Commercial revenue		4,426			1.7			11,892		3.5
International franchising		1,674			0.7			3,160		0.9
Total revenues		255,310			100.0			338,543		100.0
Costs and expenses:
Cost of merchandise sold - retail ⁽¹⁾		147,783			59.3			176,652		54.6
Store asset impairment ⁽²⁾		7,346			2.9			—		—
Cost of merchandise sold - commercial⁽¹⁾		1,837			41.5			5,432		45.7
Cost of merchandise sold - international franchising⁽¹⁾		935			55.9			2,836		89.7
Total cost of merchandise sold		157,901			61.8			184,920		54.6
Consolidated gross profit		97,409			38.2			153,623		45.4

Selling, general and administrative expense		117,585			46.1			152,047		44.9
Interest expense, net		10			0.0			15		0.0
Income (loss) before income taxes		(20,186	)		(7.9	)		1,561		0.5
Income tax expense (benefit)		2,797			1.1			1,300		0.4
Net income (loss)	$	(22,983	)		(9.0	)	$	261		0.1

Income (loss) per common share:
Basic	$	(1.54	)				$	0.02
Diluted	$	(1.54	)				$	0.02
Shares used in computing common per share amounts:
Basic		14,923,304						14,711,334
Diluted		14,923,304						14,759,810

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

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

(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, other assets and other intangible assets.
(3)	Excludes e-commerce. North American stores are located in the United States, Canada and Puerto Rico. In Europe, stores are located in the United Kingdom, Ireland and Denmark. In Asia, the store is located in China. 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.

Fiscal 2023 forecast reconciliation of Non-GAAP figure
(dollars in millions)

Income before before income taxes (pre-tax)	$7 - $17
Interest		-
Depreciation and Amortization		13
Earnings before interest, taxes, depreciation and amortization (EBITDA)	$20 - $30

(1)	Represents the business grants received 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-19 pandemic.
(2)	Represents COVID-19 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.
(4)	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 and February 1, 2020.
(5)	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 February 1, 2020
(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)	As a result of the Company's full, global valuation allowance, the Company cannot realize an income tax benefit on these adjustments for the fourth quarter or full year fiscal 2020.
(9)	Represents the aggregate tax impact of the pre-tax adjustments for the fourth quarter and full year fiscal 2019.
(10)	Represents the impact of the technical correction related to qualified leasehold improvements resulting from the CARES Act occurring in the first quarter of fiscal 2020
(11)	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.

Exhibit Number	Description of Exhibit

104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

	BUILD-A-BEAR WORKSHOP, INC.



Date: April 8, 2021	By:	/s/ Voin Todorovic
	Name:	Voin Todorovic
		Title: Chief Financial Officer

	January 30,			February 1,
	2021			2020
ASSETS
Current assets:
Cash and cash equivalents	$	34,840		$	26,726
Inventories, net		46,947			53,381
Receivables, net		8,295			11,526
Prepaid expenses and other current assets		10,111			7,117
Total current assets		100,193			98,750

Operating lease right-of-use asset		104,825			126,144
Property and equipment, net		52,973			65,855
Deferred tax assets		-			3,411
Other assets, net		3,381			3,102
Total Assets	$	261,372		$	297,262

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	17,901		$	15,680
Accrued expenses		17,551			16,536
Operating lease liability short term		32,402			30,912
Gift cards and customer deposits		19,029			20,231
Deferred revenue and other		2,445			2,605
Total current liabilities		89,328			85,964

Operating lease liability long term		101,462			119,625
Deferred franchise revenue		920			1,325
Other liabilities		2,354			1,717

Stockholders' equity:
Common stock, par value $0.01 per share		159			152
Additional paid-in capital		72,822			70,633
Accumulated other comprehensive loss		(12,615	)		(12,079	)
Retained earnings		6,942			29,925
Total stockholders' equity		67,308			88,631
Total Liabilities and Stockholders' Equity	$	261,372		$	297,262