Build-A-Bear Workshop, Inc. Completes Review of Strategic Alternatives
August 21 2017 - 6:45AM
Business Wire
Board Adopts Share Repurchase Program of up
to $20 Million
Build-A-Bear Workshop, Inc. (NYSE:BBW) today announced that its
Board of Directors has completed its previously announced review of
strategic alternatives. After an extensive analysis and careful
consideration of a broad range of strategic alternatives by the
Board of Directors in consultation with its financial and legal
advisors, the Board of Directors has authorized a share repurchase
program of up to $20 million.
“The process conducted by our Board of Directors was very
comprehensive,” said Sharon Price John, President and Chief
Executive Officer, Build-A-Bear Workshop. “Adoption of the share
repurchase program reflects our belief that our stock represents an
attractive investment opportunity. Because our company has returned
to sustained profitability and has strong cash flow and a flexible
capital structure, we believe Build-A-Bear Workshop will have the
capacity to repurchase our stock while still deploying capital to
facilitate the attainment of our next stated objective of sustained
profitable growth. The Board’s decision to adopt a share repurchase
program is a testament to our confidence and optimism in the
strength of our evolved business model and our continued commitment
to increase shareholder value.”
“In the course of our review process, we carefully evaluated our
business and its opportunities,” said Ms. John. “Although our
formal review of a broad range of strategic alternatives is
complete, we continue to prioritize the initiatives that will allow
us to achieve our long-term business goals.”
Increased Share Repurchase Program
Under the share repurchase program authorized by the Board, the
Company currently intends to purchase up to $20 million of its
common stock in the open market (including through 10b5-1 trading
plans), or through privately negotiated transactions. The primary
source of funding for the program is expected to be cash on hand.
The timing and amount of share repurchases, if any, will depend on
price, market conditions, applicable regulatory requirements, and
other factors. The program authorizes the Company to repurchase
shares through September 30, 2020, does not require the Company to
repurchase any specific number of shares, and may be modified,
suspended or terminated at any time without prior notice. Shares
repurchased under the program will be subsequently retired.
About Build-A-Bear
Celebrating 20 years of business in 2017, Build-A-Bear is a
global brand kids love and parents trust that seeks to add a little
more heart to life. Build-A-Bear Workshop has approximately 400
stores worldwide where guests can create customizable furry
friends, including company-owned stores in the United States,
Canada, Denmark, Ireland, Puerto Rico, the United Kingdom and
China, and franchise stores in Africa, Asia, Australia, Europe,
Mexico and the Middle East. The Company was named to the FORTUNE
100 Best Companies to Work For® list for the eighth year in a row
in 2016. Build-A-Bear Workshop, Inc. (NYSE:BBW) posted a total
revenue of $364.2 million in fiscal 2016. For more information,
visit the Investor Relations section of buildabear.com.
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 the effect on our business of the
announcement of the completion of the strategic review process and
the authorization of the share repurchase program, our ability to
repurchase shares at all or at the times or in the amounts we
currently anticipate, or to otherwise effectively implement the
share repurchase program, 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 March 16, 2017 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170821005173/en/
Investors:Build-A-Bear WorkshopVoin Todorovic, 314.423.8000
x5221orMedia:Build-A-Bear WorkshopBeth
Kerleybethk@buildabear.com
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