Build-A-Bear Workshop(BBW) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter revenues reached $150.4 million, a 0.8% increase on a GAAP basis, and a 5.7% increase when excluding the extra week of operations in the fourth quarter of 2023[4] - Pre-tax income for the fourth quarter was $27.5 million, reflecting a 5.1% year-over-year increase, and a 15.8% increase when excluding the extra week of operations in the fourth quarter of 2023[4] - For fiscal year 2024, total revenues were $496.4 million, a 2.1% increase on a GAAP basis, and a 3.6% increase when excluding the extra week of operations in fiscal 2023[12] - Total revenues for the 52 weeks ended February 1, 2025, were $496,404 thousand, compared to $486,114 thousand for the 53 weeks ended February 3, 2024[29] - Net income for the 13 weeks ended February 1, 2025, was $21,678 thousand, compared to $22,273 thousand for the same period in 2024, reflecting a decrease of 2.7%[27] - Adjusted net income for the year ended February 1, 2025, was $51,349 million, up from $49,546 million in the previous year, representing a growth of 3.6%[37] - Adjusted net income per diluted share (adjusted EPS) increased to $3.77 in 2025 from $3.42 in 2024, marking an increase of 10.3%[37] - Net income for Q1 2025 was $21,678 million, slightly down from $22,273 million in Q1 2024, a decrease of 2.7%[37] Shareholder Returns - The company returned $42.0 million to shareholders in fiscal 2024 through share repurchases and dividends, including a 10% increase in quarterly dividend to $0.22 per share[4] Growth and Expansion - Build-A-Bear opened 64 net new retail units in fiscal 2024, expanding its international presence to over 25 countries[2] - The company had net new unit growth of 24 global experience locations in the fourth quarter, totaling 589 locations at year-end[9] - The company expects mid-single-digit revenue growth and pre-tax income to range from a low-single-digit decline to low-single-digit growth for fiscal 2025[17] Capital Expenditures - Capital expenditures for fiscal 2025 are projected to be between $20 million and $25 million[17] - Capital expenditures for the 13 weeks ended February 1, 2025, were $9,746 thousand, an increase from $7,171 thousand in the prior year[33] Cash and Assets - At fiscal year-end, cash and cash equivalents totaled $27.8 million, down from $44.3 million the previous year, impacted by higher inventory investment[10] - Total current assets decreased to $126,298 thousand as of February 1, 2025, from $127,772 thousand a year earlier[31] E-commerce and Franchise Performance - Consolidated e-commerce demand decreased by 11.6% in the fourth quarter, while commercial and international franchise revenues increased by 20.5%[8] - Net retail sales accounted for $139,499 thousand, representing 92.7% of total revenues for the 13 weeks ended February 1, 2025[27] Profitability Metrics - Consolidated gross profit for the 13 weeks ended February 1, 2025, was $85,144 thousand, up from $84,217 thousand in the previous year[27] - The company reported a retail gross margin of 56.9% for the 13 weeks ended February 1, 2025, slightly up from 56.7% in the previous year[33] - Adjusted income before income taxes for Q1 2025 was $27,486 million, compared to $23,729 million in Q1 2024, reflecting a year-over-year increase of 15.5%[37] - EBITDA for Q1 2025 was reported at $31,138 million, compared to $29,861 million in Q1 2024, indicating a growth of 4.3%[38] - Adjusted EBITDA for the year ended February 1, 2025, was $81,052 million, up from $76,637 million in 2024, reflecting a year-over-year increase of 5.0%[38] Tax and Interest Expenses - The company recorded a valuation allowance of $436 million on its net deferred tax assets in the UK for the year ended February 1, 2025[37] - The interest expense for the year ended February 1, 2025, was $(861) million, compared to $(929) million in 2024, showing a decrease of 7.3%[37] Other Financial Impacts - The impact of the 53rd week on income was estimated at $(2,420) million, affecting both EBITDA and adjusted EBITDA calculations[38] - The company undertook international restructuring, which had a tax impact of $1,102 million in the previous year[37]