Build-A-Bear Workshop, Inc. Again Raises Guidance for Expected Fiscal 2021 Financial Results
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Build-A-Bear Workshop, Inc. Again Raises Guidance for Expected Fiscal 2021 Financial Results

Company to present at ICR Conference 2022 Tuesday, January 11th at 3:30 p.m. EST

ST. LOUIS - (BUSINESS WIRE) - Jan. 11, 2022 -  Build-A-Bear Workshop, Inc. (NYSE: BBW) updated its financial guidance for the 2021 fiscal year in advance of its participation at the ICR Conference 2022. The Company believes that its projected results reflect continued progress in its strategic initiatives including the acceleration of its digital transformation, the rapid evolution of its omnichannel capabilities and the ability to leverage its financial strength to drive profitable growth. The Company expects its fiscal 2021 results to reflect the highest profitability in its nearly 25-year history.

On a preliminary basis for the 2021 fiscal year (52 weeks ending January 29, 2022 compared to the 52 weeks ended January 30, 2021), the Company currently expects:

  • Total revenues for the fiscal year to be in the range of $408 million to $412 million, an increase from its previous expectation for total revenues in the range of $390 million to $400 million. The Company reported total revenues of $255.3 million in the 2020 fiscal year and $338.5 million in the 2019 fiscal year;
  • Pre-tax income to be in the range of $49 million to $51 million compared to pre-tax loss of ($20.2) million in fiscal 2020 and pre-tax income of $1.6 million in fiscal 2019;
  • Earnings before interest, taxes, depreciation and amortization (EBITDA) in fiscal 2021 to be in the range of $61.5 million to $63.5 million, an increase from its previous expectation for EBITDA in the range of $55 million to $60 million. The Company reported EBITDA of ($7.0) million in the 2020 fiscal year and $15.3 million in the 2019 fiscal year; and
  • Capital expenditures to be in the range of $7 million to $8 million and depreciation and amortization to be approximately $12.5 million in fiscal 2021.

The Company notes that its updated guidance assumes no additional material COVID impact either in its supply chain or store operations.

Sharon Price John, Build-A-Bear Workshop President and Chief Executive Officer commented, “We have continued to see positive momentum in our business throughout the current fourth quarter and combined with our record-breaking profit in the first nine-month period, we expect fiscal 2021 to deliver the Company’s highest profitability as it enters its 25th year of operations. We also expect to deliver growth in total revenues including the strongest digital demand in our history, reaching nearly 20% of net retail sales. We have remained focused on the disciplined execution of our strategic initiatives even with ongoing external volatility and COVID impacts. We believe that we have fundamentally evolved our company and built a solid foundation to further advance our digital transformation, expand our omnichannel capabilities and leverage our positive financial position to support investments intended to drive future growth.”

The Company is scheduled to participate at the ICR Conference 2022 being held virtually on January 10, 2022 and January 11, 2022. The Company expects to conduct a fireside chat presentation on Tuesday, January 11, 2022, at 3:30 p.m. EST. 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 2021 year in March 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 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.

* Non-GAAP Financial Measures                
                 
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Results
(dollars in millions)
           
                 
    New
Projected
2021
  Previous
Projected
2021
  Actual
2020
  Actual
2019
Income (loss) before income taxes (pre-tax)  

 $49.0 - $51.0 

 

 $42.0 - $46.0 

 

$

(20.2)

 

$

1.6

Interest expense (income), net  

-

 

-

 

 

-

 

 

-

Depreciation & Amortization  

12.5

 

13 - 14 

 

 

13.2

 

 

 14

Earnings before interest, taxes, depreciation and amortization (EBITDA)  

 $61.5 - $63.5 

 

 $55.0 - $60.0 

 

$

(7.0)

 

$

15.3

SOURCE Build-A-Bear

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