On Thursday, Build-A-Bear
- Total sales grew 20.8% to $101.5 million, primarily due to new store openings, what with same-store sales falling 5.8% for the quarter. Build-A-Bear also receives fees from franchisees and licensing revenue, but they accounted for less than 1% of sales for the quarter. International franchisees also opened five new stores.
- Earnings fell by half to $0.13 per diluted share, but included a number of charges. One was $0.13 from the recent purchase of U.K.-based Bear Factory; the purchased stores were closed to be converted and rebranded to Build-A-Bear stores. There was also $0.05 in distribution-center transition costs and $0.02 in stock-based compensation not included in last year's quarter.
- Earnings came in ahead of analyst projections of $0.21 per share before charges and $0.11 per share after charges. Nevertheless, the stock traded down almost 6% after earnings were released.
- Management reiterated full-year 2006 guidance for earnings at the low end of a $1.44-$1.53 range. This range includes additional charges like the ones above.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|---|
|
Sales |
$105,950 |
$101,519 |
$84,017 |
20.8% |
|
Net Profit |
-- |
$2,713 |
$5,255 |
(48.4%) |
|
EPS |
$0.21 |
$0.13 |
$0.26 |
(50.0%) |
|
Diluted Shares |
20,438 |
20,235 |
1.0% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
42.2% |
48.0% |
(5.80) |
|
Operating Margin |
4.13% |
9.65% |
(5.52) |
|
Net Margin |
2.67% |
6.25% |
(3.58) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$9,837 |
$51,564 |
(80.9%) |
|
Accounts Rec. |
$8,558 |
$6,240 |
37.1% |
|
Inventory |
$48,112 |
$34,123 |
41.0% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$35,056 |
$17,706 |
98.0% |
|
Long-Term Debt |
$0 |
$0 |
n/a |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
No Data |
$5,087 |
n/a |
|
Capital Expenditures |
$47,501 |
$22,599 |
110.2% |
|
Free Cash Flow |
No Data |
($17,512) |
n/a |
Build-A-Bear didn't include cash flow information in its press release; we'll be able to check out the 10-Q for the numbers when it's filed with the SEC. Find out why Fools always follow the money.
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. The Fool has an ironclad disclosure policy. Feel free to email him with feedback or to discuss any companies mentioned further.
