8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 10, 2022

Build-A-Bear Workshop, Inc.

(Exact Name of Registrant as Specified in Its Charter)

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

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

(314) 423-8000

(Registrant’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company     ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ☐

Item 2.02.
Results of Operations and Financial Condition.

On March 10, 2022, Build-A-Bear Workshop, Inc. (the “Company”) issued a press release setting forth results for the Company’s 2021 fourth fiscal quarter and full 2021 fiscal year ended January 29, 2022.  A copy of the Company’s press release is being furnished as Exhibit 99.1 and hereby incorporated by reference.

* * * * *

The Company reports its financial results in accordance with generally accepted accounting principles (“GAAP”).  In the press release furnished as Exhibit 99.1 hereto, the Company has supplemented the reporting of its financial information determined in accordance with GAAP with certain 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 core operating results.  These measures should not be considered as a substitute for or superior to GAAP results.

The information furnished in, contained, or incorporated by reference into Item 2.02 above, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 (the “Securities Act”), as amended, or the Exchange Act, regardless of any general incorporation language in such filing.  In addition, this report (including Exhibit 99.1) shall not be deemed an admission as to the materiality of any information contained herein that is required to be disclosed solely as a requirement of Item 2.02.

This Current Report on Form 8-K and the press release attached hereto as Exhibit 99.1 contain certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. All statements in this report and in such exhibit not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this report and in such exhibit are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things: statements regarding the Company’s goals, intentions, and expectations; business plans and growth strategies; estimates of the Company’s risks and future costs and benefits; forecasted demographic and economic trends relating to the Company’s industry; and other risk factors referred to from time to time in filings made by the Company with the Securities and Exchange Commission. Forward-looking statements speak only as to the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. The Company disclaims any intent or obligation to update these forward-looking statements.

2

Item 9.01
Financial Statements and Exhibits.

(d)  Exhibits

Exhibit Number	Description of Exhibit
99.1	Press Release dated March 10, 2022
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BUILD-A-BEAR WORKSHOP, INC.
Date: March 10, 2022	By:	/s/ Voin Todorovic
	Name:	Voin Todorovic
		Title:  Chief Financial Officer

3

EX-99.1

Exhibit 99.1

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

• 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)--March 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 25^th 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, http://IR.buildabear.com. 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. The telephone replay is available by calling (844) 512-2921. The access code is: 13726940.

About Build-A-Bear

Build-A-Bear is a multi-generational global brand focused on its mission to “add 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. Nearly 500 interactive brick-and-mortar retail locations operated through a variety of formats provide guests of all ages a hands-on entertaining experience, which often fosters a lasting and emotional brand connection. The company also offers engaging e-commerce/digital purchasing experiences on www.buildabear.com including its online “Bear-Builder”, the animated “Bear Builder 3D Workshop” and its age-gated adult-focused “Bear Cave”. In addition, extending its brand power beyond retail, Build-A-Bear Entertainment, a subsidiary of Build-A-Bear Workshop, Inc., is dedicated to creating engaging content for kids and adults that fulfills the company’s mission, while the company also offers products at wholesale and in non-plush consumer categories via licensing agreements with leading manufacturers. Build-A-Bear Workshop, Inc. (NYSE: BBW) posted total revenue of $411.5 million in fiscal 2021. 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.

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

Contacts

Investors:
Voin Todorovic
Build-A-Bear Workshop
314.423.8000 x5221

Media:
Public Relations
PR@buildabear.com

XML

Document and Entity Information	Mar. 10, 2022
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Mar. 10, 2022
Entity Registrant Name	Build-A-Bear Workshop, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-32320
Entity Tax Identification Number	43-1883836
Entity Address, Address Line One	415 South 18th St.
Entity Address, City or Town	St. Louis
Entity Address, State or Province	MO
Entity Address, Postal Zip Code	63103
City Area Code	314
Local Phone Number	423-8000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001113809
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	BBW
Security Exchange Name	NYSE