87 R স 哈 IGR CONFERENCE 2023 FORWARD LOOKING AND CAUTIONARY STATEMENTS This presentation 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," "inten ...

[Part I Financial Information](index=4&type=section&id=Part%20I%20Financial%20Information) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, cash flows, and accompanying notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$259.8 thousand** as of October 29, 2022, driven by reduced cash, while inventories and stockholders' equity increased Key Balance Sheet Items (in thousands) | Financial Metric | Oct 29, 2022 (Unaudited) | Jan 29, 2022 | Oct 30, 2021 (Unaudited) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $12,023 | $32,845 | $48,501 | | Inventories, net | $88,339 | $71,809 | $61,912 | | Total current assets | $126,635 | $129,998 | $134,387 | | Total Assets | $259,801 | $266,324 | $271,998 | | Total current liabilities | $96,922 | $97,382 | $93,910 | | Total stockholders' equity | $97,098 | $93,683 | $93,064 | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) Q3 2022 total revenues increased to **$104.5 thousand**, with net income rising to **$7.5 thousand** or **$0.51** per diluted share, reflecting strong year-over-year growth Q3 and YTD Performance Summary (in thousands, except per share data) | Metric | Thirteen Weeks Ended Oct 29, 2022 | Thirteen Weeks Ended Oct 30, 2021 | Thirty-nine Weeks Ended Oct 29, 2022 | Thirty-nine Weeks Ended Oct 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $104,480 | $95,139 | $322,827 | $281,560 | | Consolidated gross profit | $54,330 | $49,614 | $166,069 | $148,442 | | Net income | $7,455 | $5,923 | $27,475 | $23,138 | | Diluted EPS | $0.51 | $0.36 | $1.78 | $1.44 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to **$11.2 thousand** for the thirty-nine weeks ended October 29, 2022, primarily due to inventory investments and significant share repurchases Cash Flow Summary for Thirty-nine Weeks Ended (in thousands) | Cash Flow Activity | Oct 29, 2022 | Oct 30, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $11,247 | $17,235 | | Net cash used in investing activities | ($6,752) | ($4,644) | | Net cash (used in) provided by financing activities | ($26,135) | $924 | | (Decrease) increase in cash | ($20,822) | $13,661 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue recognition, segment performance, stock repurchase programs totaling **$75 thousand**, and a credit facility amendment to a SOFR-based interest rate - The Direct-to-Consumer (DTC) segment, including retail stores and e-commerce, is the primary revenue driver, accounting for **95%** of consolidated revenue for the third quarter of fiscal 2022[23](index=23&type=chunk)[69](index=69&type=chunk) Segment Income Before Income Taxes (in thousands) | Segment | Thirteen Weeks Ended Oct 29, 2022 | Thirty-nine Weeks Ended Oct 29, 2022 | | :--- | :--- | :--- | | Direct-to-Consumer | $7,771 | $29,174 | | Commercial | $2,009 | $5,705 | | International Franchising | $108 | $843 | - The company completed a **$25.0 thousand** share buyback program and its Board of Directors authorized a new repurchase program of up to **$50.0 thousand**, effective through August 31, 2025[63](index=63&type=chunk)[64](index=64&type=chunk) - Subsequent to the quarter's end, on November 21, 2022, the company amended its credit agreement to change the interest rate calculation from a LIBOR-based rate to a Secured Overnight Financing Rate (SOFR) based rate[77](index=77&type=chunk)[78](index=78&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 revenue growth driven by North American retail, strategic priorities including digital transformation and retail evolution, and expectations for continued full fiscal year growth despite inflationary pressures [Business Update and Strategy](index=21&type=section&id=Business%20Update%20and%20Strategy) The company's strategy focuses on digital transformation, evolving omnichannel retail, and optimizing financial position, with expansion into non-traditional retail locations and strong e-commerce growth since 2019 - Core strategic priorities are: (1) **accelerating digital transformation**, (2) **evolving omnichannel retail experiences**, and (3) **optimizing the company's strong financial position**[87](index=87&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) - The company is expanding its retail footprint beyond traditional malls, with approximately **35%** of locations now in non-traditional settings, expecting to open approximately **20** new locations in fiscal 2022[89](index=89&type=chunk) - While Q3 e-commerce sales declined year-over-year, they were up **105%** compared to the third quarter of fiscal 2019, prior to key digital initiatives[87](index=87&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Q3 2022 total revenues increased **9.8%** to **$104.5 million**, driven by retail sales growth, partially offset by digital declines and currency impacts, while gross margin improved quarterly but declined year-to-date due to freight costs Q3 2022 vs. Q3 2021 Revenue Growth (in millions) | Revenue Stream | Q3 2022 | Q3 2021 | % Change | | :--- | :--- | :--- | :--- | | Net retail sales | $99.2 | $91.6 | +8.3% | | Commercial revenue | $4.2 | $2.8 | +50.0% | | International franchising | $1.1 | $0.8 | +37.5% | | **Total revenues** | **$104.5** | **$95.1** | **+9.8%** | - The increase in retail revenue was primarily driven by higher demand in existing physical stores (**$17.2 million** increase), which offset a decline in digital sales (**$7.0 million** decrease) and negative foreign currency effects (**$2.5 million** decrease)[101](index=101&type=chunk) - Retail gross margin rate increased by **30 basis points** in Q3 2022 due to leverage on fixed costs but decreased by **120 basis points** for the thirty-nine week period due to significant freight cost increases[102](index=102&type=chunk)[106](index=106&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) As of October 29, 2022, cash stood at **$12.0 thousand**, with operating cash flow decreasing to **$11.2 thousand** due to inventory investments and **$24.2 thousand** in share repurchases, while a new **$50.0 thousand** buyback program was authorized - Cash and cash equivalents stood at **$12.0 thousand** as of October 29, 2022[117](index=117&type=chunk) - The company repurchased **$24.2 thousand** of its common stock in the thirty-nine weeks ended October 29, 2022[119](index=119&type=chunk)[125](index=125&type=chunk) - On August 31, 2022, a new share repurchase program of up to **$50.0 thousand** was authorized, effective through August 31, 2025[126](index=126&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the company's market risk disclosures have occurred since the last annual report - There have been no material changes to the company's market risk disclosures since the last annual report[132](index=132&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of October 29, 2022, with no material changes to internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were effective as of October 29, 2022[133](index=133&type=chunk) - No material changes to internal control over financial reporting were identified during the quarter[135](index=135&type=chunk) [Part II Other Information](index=30&type=section&id=Part%20II%20Other%20Information) [Risk Factors](index=30&type=section&id=Item%201A.Risk%20Factors) No material changes to the company's previously disclosed risk factors were reported since the last annual report - No material changes to risk factors were reported since the last Annual Report on Form 10-K[136](index=136&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **336,935** shares at an average price of **$14.21** per share during Q3, as part of publicly announced buyback programs Issuer Purchases of Equity Securities (Q3 2022) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July 31 - Aug 27, 2022 | 80,558 | $15.96 | | Aug 28 - Oct 1, 2022 | 256,377 | $13.66 | | Oct 2 - Oct 29, 2022 | - | - | | **Total** | **336,935** | **$14.21** | [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q report, including required CEO and CFO certifications under the Sarbanes-Oxley Act - The report includes required certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[140](index=140&type=chunk)

Build-A-Bear Workshop, Inc. (NYSE:BBW) Q3 2022 Results Conference Call November 30, 2022 9:00 AM ET Company Participants Allison Malkin - ICR Sharon John - CEO Voin Todorovic - CFO Conference Call Participants Eric Beder - SCC Research William Zolezzi - Divisadero David Kanen - Kanen Wealth Management Operator Greetings. Welcome to the Build-A-Bear Workshop Third Quarter 2022 Earnings Call. At this time, all participants will be in listen-only mode. A brief question-and-answer session will follow the forma ...

Financial Data and Key Metrics Changes - Total revenues for Q2 2022 were $100.7 million, a 6.3% increase from $94.7 million in Q2 2021 [32] - For the first half of 2022, total revenues reached $218.3 million, representing a record-setting performance with a 17% increase over the prior year [8][36] - Pretax income for Q2 2022 was $7.6 million, impacted by approximately $4 million in incremental freight expenses [8][31] - EBITDA for Q2 2022 was $10.7 million, a decrease from $12.5 million in Q2 2021 [35] - Net income for the first half of 2022 was $20 million, or $1.27 per diluted share, compared to $17.2 million, or $1.08 per diluted share in the first half of 2021 [36] Business Line Data and Key Metrics Changes - Retail stores and the Commercial and International Franchise segment saw revenue growth of over 40% compared to the prior year [32] - E-commerce demand declined by 8.4% compared to Q2 2021, but increased by almost 150% compared to Q2 2019 [32][33] - The gross profit margin for Q2 2022 was 49.6%, down from 53.2% in Q2 2021, reflecting the impact of higher freight and product inflation [33] Market Data and Key Metrics Changes - The company opened 12 new retail workshops year-to-date, aiming for approximately 20 new locations by the end of the fiscal year [20] - Approximately 35% of total retail locations are now in non-traditional settings, which have outperformed traditional retail locations [21] Company Strategy and Development Direction - The company is focused on a multi-year digital transformation, evolving retail experiences, and leveraging omnichannel capabilities to drive growth [9][10] - Plans to enter the metaverse with NFTs and expand into digital gaming platforms are part of the strategy to engage younger consumers [25][26] - The company aims to enhance its product offerings, including a new line of pet toys and family matching pajamas, to capture market trends [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial goals for the year despite macroeconomic uncertainties and inflationary pressures [8][31] - The company reaffirmed its annual guidance, expecting total revenues between $440 million and $460 million for fiscal 2022 [39][40] - Management highlighted the importance of the upcoming holiday season and the 25th anniversary celebrations to drive consumer engagement and sales [23][24] Other Important Information - The company completed a $25 million share repurchase program and announced a new program of up to $50 million [9][37] - Cash and cash equivalents at the end of Q2 2022 were $14.4 million, down from $51.1 million a year prior, reflecting strategic investments and share repurchases [37] Q&A Session Summary Question: Can you discuss your ability to pass along inflationary pressures to consumers? - Management indicated that they have selectively increased prices to offset inflation while maintaining accessibility for a broad range of consumers [45][47] Question: What has been the response to in-store parties? - The company noted a gradual increase in party bookings since their launch, with a goal to reach pre-pandemic levels [50][51] Question: Can you provide details on the new pet toys deal? - The pet toys will be available in 1,600 PetSmart locations, with some exclusivity for the season, but not necessarily long-term [55][57] Question: What are the expectations for freight costs in the second half of the year? - Management expects to see a sequential improvement in freight costs in Q3 and Q4, although Q3 costs may still be higher than Q2 [60] Question: Can you elaborate on the new product launches? - Exciting new products include 25th anniversary collectibles and seasonal items, with an expectation of slightly higher average price points [72][74]

Build-A-Bear Workshop, Inc. (NYSE:BBW) Q1 2022 Earnings Conference Call May 26, 2022 9:00 AM ET Company Participants Allison Malkin - ICR Sharon John - CEO Voin Todorovic - CFO Conference Call Participants Eric Beder - SCC Research David Kanen - Kanen Wealth Management William Zolezzi - Divisadero Street Capital Justin Adelipour - Capstone Equities Gary Schnierow - RiverPark Funds Operator Greetings, and welcome to the Build-A-Bear Workshop’s First Quarter 2022 Earnings Conference. At this time, all partici ...

Build-A-Bear Workshop, Inc. (NYSE:BBW) Q4 2021 Earnings Conference Call March 10, 2022 9:00 AM ET Company Participants Allison Malkin - ICR Sharon John - CEO Voin Todorovic - CFO Conference Call Participants Eric Beder - SCC Research David Kanen - Kanen Wealth Management Robert Sussman - Bentley Capital Management Operator Greetings. Welcome to the Build-A-Bear Workshop Fourth Quarter 2021 Earnings Call. At this time, all participants will be in a listen-only mode. A question and answer session will follow ...