Company to present at ICR conference today
at 3:30 p.m. EST
Build-A-Bear Workshop, Inc. (NYSE: BBW) today shared its
financial expectations for the fourth quarter and fiscal year 2020,
in advance of its planned presentation at the 23rd Annual ICR
Conference. The Company noted that its projected results reflect
ongoing progress from the disciplined execution on its strategy
including the acceleration of its digital transformation
initiatives. In addition, the Company noted its retail store
operations continued to be negatively impacted from local
restrictions in response to the COVID-19 pandemic with the
disruptions escalating as the fourth quarter progressed. Despite
this impact, the Company expects to deliver a significant increase
in e-commerce sales, strong gross profit and an increase in cash
and equivalents on its balance sheet at quarter-end compared to the
prior year’s results.
For the fiscal 2020 fourth quarter (13 weeks ending January 30,
2021 compared to the 13 weeks ended February 1, 2020), the Company
expects:
- Total revenues in the range of $88.0 million to $92.0 million
compared to $104.6 million in the fiscal 2019 fourth quarter. The
Company had a significant reduction in store traffic during the
nine-week holiday period ending January 2, 2021 driven by local
COVID-19 restrictions which led to an 18% reduction in store
operating days (including a decline of 10% in North America and 66%
in the United Kingdom). In addition, retail store sales were
negatively impacted by a reduction in operating hours as well as
limitations on store capacity due to government mandates during the
key days leading up to the holiday;
- E-commerce demand to increase in the range of 90 - 100%
compared to the fiscal 2019 fourth quarter;
- Earnings before interest and taxes (“EBIT”) to be in the range
of $4.0 million to $6.0 million, compared to $7.6 million in the
fiscal 2019 fourth quarter; and
- Cash and cash equivalents at quarter end to be between $32 and
$37 million, an increase of approximately $5 to $10 million from
the prior year’s quarter end and it expects to have no borrowings
under its revolving credit facility at the end of the period.
Sharon Price John, Build-A-Bear Workshop President and Chief
Executive Officer, commented, “We continue to focus on accelerating
our strategy including initiatives to drive our digital
transformation, evolve our retail channels and capabilities and
maintain solid financial health and liquidity. Our team has
continued to adapt to the constant changes in our operating
environment driven by ongoing disruption from COVID-19 while
leveraging the power and consumer affinity for our brand. We expect
to deliver a profitable fiscal 2020 fourth quarter with strong
e-commerce growth even as our retail store operations were
negatively impacted by crowd size restrictions and governmentally
mandated temporary closures, which have been particularly difficult
in our UK market.
“We expect to begin fiscal 2021 with an improved cash position
compared to the prior year as we remain focused on expense
management and preserving liquidity. We anticipate that the actions
we have taken to rapidly respond to the evolving circumstances in
2020 combined with our disciplined focus on accelerating key
strategic initiatives for future benefit put our company in a
position to achieve our stated goal of delivering profitable growth
after the macro-environment stabilizes,” concluded Ms. John.
The Company is scheduled to present at the 23rd Annual ICR
Conference today, Monday, January 11, 2021, at 3:30 p.m. EST. The
presentation will be broadcast over the internet and can be
accessed at the Company’s investor relations website,
http://IR.buildabear.com. A replay of the broadcast will remain on
the Company’s investor relations website for one year.
The Company noted that it expects to report full results for the
fourth quarter and fiscal 2020 year in March, 2021.
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 projected and historic EBIT, which
is a non-GAAP financial measure. These projections and 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
core 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.
About Build-A-Bear
Build-A-Bear is a multi-generational global brand focused on
“adding a little more heart to life” appealing to a wide array of
consumer groups who enjoy the personal expression in making their
own “furry friends” to celebrate and commemorate life moments. The
500+ interactive brick-and-mortar retail locations provide guests
of all ages an interactive entertaining experience, which often
fosters a lasting and emotional brand connection. The company also
offers an engaging e-commerce/digital purchasing activity called
the “Bear-Builder” at www.buildabear.com. In addition, the company
leverages its brand’s power and equity beyond retail through
entertaining content, wholesale products and non-plush consumer
product categories via licensing agreements with leading
manufacturers. Build-A-Bear Workshop, Inc. (NYSE: BBW) posted total
revenue of $338.5 million in fiscal 2019. 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 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.
* Non-GAAP Financial Measures BUILD-A-BEAR
WORKSHOP, INC. AND SUBSIDIARIES Reconciliation of GAAP to
Non-GAAP Results (dollars in millions)
Projected
Actual
Q4
Q4
2020
2019
Income before income taxes (pre-tax) $4.0-$6.0
$
7.6
Income before income taxes adjustments: Interest expense (income),
net
-
-
Earnings before interest and taxes (EBIT) $4.0-$6.0
$
7.6
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version on businesswire.com: https://www.businesswire.com/news/home/20210111005231/en/
Investors: Voin Todorovic Build-A-Bear Workshop 314.423.8000
x5221
Media: Public Relations PR@buildabear.com
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