ST. LOUIS–(BUSINESS WIRE)–Construct-A-Bear Workshop, Inc. (NYSE: BBW) at present reported outcomes for the fourth quarter and financial 12 months 2021 ended January 29, 2022.
Sharon Worth John, Construct-A-Bear Workshop President and Chief Government Officer, commented, “We’re happy to report excellent outcomes for fiscal 2021 together with the corporate’s highest whole revenues in additional than a decade and record-breaking profitability. We attribute the vast majority of our constructive efficiency to the cumulative impact of the disciplined execution of a multi-year technique to elevate and monetize our iconic model even with exterior pressures which have reshaped client procuring habits. We consider these wide-scale, long-horizon actions considerably contributed to our present success enabling us to evolve right into a digitally-driven, diversified omnichannel entity enhanced by a dynamic and environment friendly vertical retail presence with a strong monetary place to spend money on development initiatives.
“As we proceed to concentrate on executing our technique, we’re happy to have kicked-off our deliberate year-long celebration of Construct-A-Bear’s milestone twenty fifth anniversary in 2022 with constructive momentum on a quarter-to-date foundation. Whereas we acknowledge that the exterior setting stays unstable with ongoing inflationary stress, we consider we’ve the constructing blocks in place to drive additional worthwhile development to proceed to boost shareholder worth,” concluded Ms. John.
Fourth Quarter 2021 Highlights (13 weeks ended January 29, 2022 in comparison with the 13 weeks ended January 30, 2021 and February 1, 2020):
Complete revenues had been $130.0 million, a rise of 38.8% from $93.7 million within the fiscal 2020 fourth quarter, and a 24.3% improve from $104.6 million within the fiscal 2019 fourth quarter. The Firm famous that the surge in COVID circumstances within the latter half of January 2022 led to constrained retailer labor and resulted in short-term retailer closures in 67 of its areas lowering retailer working days within the month of January by 4.0%. The Firm estimates its whole revenues for the quarter had been diminished by roughly $1.0 million consequently;
Web retail gross sales had been $125.6 million, a 36.8% improve in comparison with $91.9 million within the fiscal 2020 fourth quarter and a 24.8% improve in comparison with $100.7 million within the fiscal 2019 fourth quarter;
Consolidated e-commerce demand (orders generated on-line to be fulfilled from both the Firm’s warehouse or its shops) elevated 3.5% in comparison with the fiscal 2020 fourth quarter representing a penetration of 20.7% of web retail gross sales. E-commerce demand elevated 114.7% in comparison with the fiscal 2019 fourth quarter; and
Business and worldwide franchise revenues had been $4.3 million in comparison with $1.8 million within the fiscal 2020 fourth quarter and $3.9 million within the fiscal 2019 fourth quarter;
Gross revenue margin was 53.5% in comparison with 50.2% within the fiscal 2020 fourth quarter and 50.4% within the fiscal 2019 fourth quarter. Gross revenue margin expanded by 330 foundation factors in comparison with the fiscal 2020 fourth quarter and 310 foundation factors versus the fiscal 2019 fourth quarter. Gross revenue margin growth within the 2021 fourth quarter mirrored elevated leverage on fastened occupancy expense, partially offset by elevated product and freight prices;
Promoting, basic and administrative (“SG&A”) bills had been $49.4 million, or 38.0% of whole revenues, in comparison with $36.3 million, or 38.7% of whole revenues within the fiscal 2020 fourth quarter and $45.1 million, or 43.1% of whole revenues within the fiscal 2019 fourth quarter. The rise in SG&A bills as in comparison with the fiscal 2020 fourth quarter was pushed by larger labor prices given the lifting of capability restrictions and expanded working hours in shops. As well as, the change in SG&A mirrored a rise in variable prices pushed by gross sales development initiatives inclusive of upper advertising and marketing spend and efficiency incentive packages;
Pre-tax revenue was $20.1 million, an enchancment of $9.4 million in comparison with pre-tax revenue of $10.8 million within the fiscal 2020 fourth quarter, and an enchancment of $12.5 million in comparison with pre-tax revenue of $7.6 million within the fiscal 2019 fourth quarter;
Adjusted pre-tax revenue was $19.6 million in comparison with adjusted pre-tax revenue of $9.3 million within the fiscal 2020 fourth quarter and adjusted pre-tax revenue of $7.3 million within the fiscal 2019 fourth quarter;
Revenue tax profit was $4.0 million within the fiscal 2021 fourth quarter reflecting the total reversal of the Firm’s tax valuation allowance in North America of $7.8 million offset by $3.8 million of tax expense. This compares to revenue tax expense of $0.3 million within the fiscal 2020 fourth quarter and an revenue tax expense of $1.4 million within the fiscal 2019 fourth quarter;
Web revenue was $24.1 million, or $1.48 per diluted share, in comparison with web revenue of $10.5 million, or $0.67 per diluted share, within the fiscal 2020 fourth quarter and web revenue of $6.2 million, or $0.42 per diluted share, within the fiscal 2019 fourth quarter;
Adjusted web revenue was $15.8 million, or $0.97 per diluted share, in comparison with adjusted web revenue of $8.9 million, or $0.58 per diluted share, within the fiscal 2020 fourth quarter and adjusted web revenue of $5.7 million, or $0.39 per diluted share, within the fiscal 2019 fourth quarter; and
Earnings earlier than curiosity, taxes, depreciation and amortization (“EBITDA”) was $23.3 million, a rise of $9.1 million from the fiscal 2020 fourth quarter and a rise of $12.3 million from the fiscal 2019 fourth quarter.
Fiscal Yr 2021 Highlights (52 weeks ended January 29, 2022, in comparison with the 52 weeks ended January 30, 2021 and February 1, 2020):
Complete revenues had been $411.5 million, a rise of 61.2% in comparison with $255.3 million in fiscal 2020 and a rise of 21.6% from $338.5 million in fiscal 2019;
Consolidated web retail gross sales had been $397.7 million, a rise of 59.6% in comparison with $249.2 million in fiscal 2020 and a rise of twenty-two.9% in comparison with $323.5 million in fiscal 2019;
Consolidated e-commerce demand (orders generated on-line to be fulfilled from both the Firm’s warehouse or its shops) elevated 8.5% in comparison with fiscal 2020, representing a penetration of 18.3% of web retail gross sales. E-commerce demand elevated 156.1% in comparison with fiscal 2019;
Pre-tax revenue was $50.7 million in comparison with pre-tax lack of ($20.2) million in fiscal 2020 and pre-tax revenue of $1.6 million in fiscal 2019;
Revenue tax expense was $3.4 million, reflecting expense of $11.2 million partially offset by a full reversal of the Firm’s tax valuation allowance in North America of $7.8 million, in comparison with expense of $2.8 million in fiscal 2020 and $1.3 million in fiscal 2019;
Web revenue was $47.3 million, or $2.93 per diluted share, in comparison with web lack of ($23.0) million, or ($1.54) per diluted share, in fiscal 2020 and web revenue of $0.3 million, or $0.02 per diluted share, in fiscal 2019;
Adjusted web revenue was $38.3 million, or $2.37 per diluted share, in comparison with adjusted web lack of ($13.7) million, or ($0.92) per diluted share, in fiscal 2020, and in comparison with adjusted web revenue of $0.1 million, or $0.01 per diluted share, for fiscal 2019;
EBITDA was $63.0 million, a rise of $69.9 million from EBITDA of ($6.9) million in fiscal 2020 and a rise of $47.7 million from EBITDA of $15.3 million in fiscal 2019.
As of January 29, 2022, the Firm had 346 corporately-managed shops. The Firm maintains a excessive degree of lease optionality with over 75% of areas having a lease occasion inside the subsequent three years.
The Firm famous that its third-party retail mannequin confirmed a return to stability as areas related to relationships that embrace Carnival Cruise Traces, Nice Wolf Lodge Resorts, Landry’s and Seashores Household Resorts had been largely reopened. Individually, worldwide franchise areas continued to be negatively impacted by COVID and skilled closures or operated underneath restrictions for a portion of fiscal 2021.
As of January 29, 2022, money and money equivalents totaled $32.8 million in comparison with $34.8 million as of January 30, 2021. In the course of the fourth quarter, the Firm returned $24.4 million in worth to shareholders via $4.4 million of repurchases of frequent inventory and fee of a $20.0 million particular dividend. The ending money stability additionally mirrored elevated funding in working capital. The Firm ended the fiscal 12 months with no borrowings underneath its revolving credit score facility.
Complete stock at year-end was $73.6 million, a rise of $26.7 million from fiscal 2020 year-end and a rise of $20.2 million from fiscal 2019 year-end. The vast majority of the rise was associated to in-transit stock resulting from strategically deliberate accelerated purchases used to partially mitigate inflationary and provide chain COVID-related pressures and anticipated continued will increase in product and freight prices. 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 Firm utilized $4.4 million in money to repurchase 245,554 shares underneath its $25.0 million program that was licensed by its Board of Administrators on November 30, 2021. As of March 9, 2022, the Firm had utilized a complete of $5.0 million underneath this system and at present has $20.0 million accessible.
The Firm famous that its constructive momentum has continued into its fiscal 2022 first quarter and is offering steerage for whole revenues and revenue for the interval. The Firm expects to supply steerage on these metrics for the fiscal 12 months at a future date because it screens the evolving exterior setting, assesses ongoing inflationary stress and the potential impression of stimulus on client spending within the prior 12 months. For the primary quarter of fiscal 2022, the Firm at present expects:
Complete income to exceed first quarter of fiscal 2021; and
Pretax revenue and EBITDA to exceed the report profitability of first quarter of fiscal 2021.
As well as, for fiscal 2022, the Firm at present expects capital expenditures to approximate $10 to $15 million and for depreciation and amortization to be within the vary of $12 to $14 million. The Firm expects an revenue tax charge of roughly 25% in fiscal 2022.
Observe Relating to Non-GAAP Monetary Measures
On this press launch, the Firm’s monetary outcomes are supplied each in accordance with usually accepted accounting rules (GAAP) and utilizing sure non-GAAP monetary measures. Particularly, the Firm supplies historic revenue and revenue per diluted share adjusted to exclude sure prices and accounting changes, that are non-GAAP monetary measures. These outcomes are included as a complement to outcomes supplied in accordance with GAAP as a result of administration believes these non-GAAP monetary measures assist establish underlying developments within the Firm’s enterprise and supply helpful data to each administration and buyers by excluding sure objects that will not be indicative of the Firm’s on-going working outcomes. These measures shouldn’t be thought-about an alternative to or superior to GAAP outcomes. These non-GAAP monetary measures are outlined and reconciled to probably the most comparable GAAP measure later on this doc.
At the moment’s Convention Name Webcast:
Construct-A-Bear Workshop will host a dwell web webcast of its quarterly investor convention name at 9 a.m. ET at present. The audio broadcast could also be accessed on the Firm’s investor relations web site, http://IR.buildabear.com. The decision is predicted to conclude by 10 a.m. ET.
A replay of the convention name webcast will probably be accessible within the investor relations web site for one 12 months. A phone replay will probably be accessible starting at roughly midday ET at present till midnight ET on March 17, 2022. The phone replay is offered by calling (844) 512-2921. The entry code is: 13726940.
Construct-A-Bear is a multi-generational world model targeted on its mission to “add just a little extra coronary heart to life” interesting to a big selection of client teams who benefit from the private expression in making their very own “furry associates” to have fun and commemorate life moments. Practically 500 interactive brick-and-mortar retail areas operated via a wide range of codecs present friends of all ages a hands-on entertaining expertise, which regularly fosters a long-lasting and emotional model connection. The corporate additionally affords participating e-commerce/digital buying experiences on www.buildabear.com together with its on-line “Bear-Builder”, the animated “Bear Builder 3D Workshop” and its age-gated adult-focused “Bear Cave”. As well as, extending its model energy past retail, Construct-A-Bear Leisure, a subsidiary of Construct-A-Bear Workshop, Inc., is devoted to creating participating content material for youths and adults that fulfills the corporate’s mission, whereas the corporate additionally affords merchandise at wholesale and in non-plush client classes by way of licensing agreements with main producers. Construct-A-Bear Workshop, Inc. (NYSE: BBW) posted whole income of $411.5 million in fiscal 2021. For extra data, go to the Investor Relations part of buildabear.com.
This press launch accommodates sure statements which can be, or could also be thought-about to be, “forward-looking statements” for the aim of federal securities legal guidelines, together with, however not restricted to, statements that mirror our present views with respect to future occasions and monetary efficiency. We usually establish these statements by phrases or phrases corresponding to “could,” “may,” “ought to,” “count on,” “plan,” “anticipate,” “consider,” “estimate,” “intend,” “predict,” “future,” “potential” or “proceed,” the adverse or any by-product of those phrases and different comparable terminology. The entire data regarding our future liquidity, future revenues, margins and different future monetary efficiency and outcomes, achievement of working of monetary plans or forecasts for future durations, sources and availability of credit score and liquidity, future money flows and money wants, success and outcomes of strategic initiatives and different future monetary efficiency or monetary place, in addition to our assumptions underlying such data, represent forward-looking data.
These statements are based mostly solely on our present expectations and projections about future occasions. As a result of these forward-looking statements contain dangers and uncertainties, there are vital elements that might trigger our precise outcomes, degree of exercise, efficiency or achievements to vary materially from the outcomes, degree of exercise, efficiency or achievements expressed or implied by these forward-looking statements, together with these elements mentioned underneath the caption entitled “Dangers Associated to Our Enterprise” and “Ahead-Trying Statements” in our Annual Report on Type 10-Okay filed with the Securities and Trade Fee (“SEC”) on April 16, 2020 and different periodic stories filed with the SEC that are integrated herein.
All of our forward-looking statements are as of the date of this Press Launch solely. In every case, precise outcomes could differ materially from such forward-looking data. We may give no assurance that such expectations or forward-looking statements will show to be appropriate. An incidence of or any materials hostile change in a number of of the chance elements or different dangers and uncertainties referred to on this Press Launch or included in our different public disclosures or our different periodic stories or different paperwork or filings filed with or furnished to the SEC may materially and adversely have an effect on our persevering with operations and our future monetary outcomes, money flows, accessible credit score, prospects and liquidity. Besides as required by legislation, the Firm doesn’t undertake to publicly replace or revise its forward-looking statements, whether or not on account of new data, future occasions or in any other case.
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