Exhibit 99.2
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(dollars in thousands, except share and per share data)
March 29, June 28, September 27, January 3,
2003 2003 2003 2004
-------------- ------------- -------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $8,563 $3,685 $4,027 $20,601
Inventories 20,684 21,613 19,286 22,573
Receivables 635 1,843 2,745 2,163
Prepaid expenses and other current
assets 994 926 2,908 4,215
Deferred tax assets 1,999 1,981 2,213 1,531
-------------- ------------- -------------- --------------
Total current assets 32,875 30,048 31,179 51,083
Property and equipment, net 62,516 67,809 72,919 73,635
Goodwill 197 297 97 97
Other intangible assets 1,245 1,241 1,254 1,493
Other assets, net 1,583 1,693 1,827 1,902
-------------- ------------- -------------- --------------
Total Assets $98,416 $101,088 $107,276 $128,210
============== ============= ============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $14,106 $15,403 $15,348 $21,822
Accrued expenses 3,887 2,468 2,794 6,366
Other current liabilities 8,050 7,978 8,437 12,432
-------------- ------------- -------------- --------------
Total current liabilities 26,043 25,849 26,579 40,620
-------------- ------------- -------------- --------------
Deferred franchise revenue 938 989 1,530 1,957
Deferred rent 17,600 19,777 22,863 23,801
Other liabilities - - - 877
Deferred tax liabilities 2,399 2,719 3,824 3,220
Minority interest 5 5 - -
Redeemable preferred stock, at
redemption price 36,412 36,905 37,397 37,890
Stockholders' equity:
Nonredeemable preferred stock, at par
value 94 94 94 94
Common stock, par value $0.01 per
share. 5 5 5 5
Additional paid-in capital 10,843 10,866 10,895 10,918
Retained earnings 5,828 5,653 5,887 10,649
Notes receivable from officers (1,751) (1,774) (1,798) (1,821)
-------------- ------------- -------------- --------------
Total stockholders' equity 15,019 14,844 15,083 19,845
-------------- ------------- -------------- --------------
Total Liabilities and Stockholders'
Equity $98,416 $101,088 $107,276 $128,210
============== ============= ============== ==============
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(dollars in thousands, except share and per share data)
13 Weeks 13 Weeks 13 Weeks 14 Weeks
Ended Ended Ended Ended
March 29, June 28, September 27, January 3,
2003 2003 2003 2004
------------- ------------- -------------- -------------
(restated)
Revenues:
Net retail sales $47,810 $44,678 $47,904 $73,035
Franchise fees 48 48 59 90
------------- ------------- -------------- -------------
Total revenues 47,858 44,726 47,963 73,125
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Costs and expenses:
Costs of merchandise sold 26,255 25,536 27,418 37,078
Selling, general, and administrative 18,920 17,164 17,846 27,161
Store preopening 478 1,495 1,514 372
Interest expense (income), net (36) (18) (7) 3
------------- ------------- -------------- -------------
Total costs and expenses 45,617 44,177 46,771 64,614
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Income before income taxes 2,241 549 1,192 8,511
Income tax expense 920 232 466 3,257
------------- ------------- -------------- -------------
Net income 1,321 317 726 5,254
Cumulative dividends and accretion of
redeemable preferred stock 493 492 493 492
Cumulative dividends of nonredeemable
preferred stock 114 114 114 113
------------- ------------- -------------- -------------
Net income available to common and
participating preferred stockholders $714 $(289) $119 $4,649
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Net income allocated to common stockholders $16 $(289) $3 $104
============= ============= ============== =============
Net income allocated to participating
preferred stockholders $698 $- $116 $4,545
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Earnings per common share:
Basic $0.07 $(1.33) $0.01 $0.48
============= ============= ============== =============
Diluted $0.07 $(1.33) $0.01 $0.30
============= ============= ============== =============
Shares used in computing common per share amounts:
Basic 217,519 217,519 217,519 217,519
Diluted 11,585,795 217,519 9,365,119 17,759,083
Store data
(1):
Number of stores at end of period 109 123 143 150
Store square footage at end of period 347,486 388,853 443,142 462,484
Comparable store sales change (%) (2) (17.4)% (15.6)% (19.0)% (12.5)%
(1) Excludes our webstore and seasonal and event-based locations.
(2) Comparable store sales percentage changes are based on net retail sales and
stores are considered comparable beginning in their thirteenth full month
of operation.
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
13 Weeks 26 Weeks 39 Weeks 53 Weeks
Ended Ended Ended Ended
March 29, June 28, September 27, January 3,
2003 2003 2003 2004
-------------- -------------- ------------------------------
(restated) (restated)
Cash flows from operating activities:
Net income $1,321 $1,638 $2,364 $7,618
Adjustments to reconcile net income to
net cash from operating activities:
Depreciation and amortization 2,745 5,701 8,949 12,840
Deferred taxes 105 442 1,315 1,394
Loss on disposal of property and equipment 63 63 159 340
Impairment of goodwill - - 200 200
Change in assets and liabilities:
Inventories 886 (42) 2,284 (1,002)
Receivables 1,577 368 (533) 49
Prepaid expenses and other current assets (175) (107) (324) (3,397)
Accounts payable (3,233) (1,936) (1,991) 4,483
Accrued expenses and other liabilities (5,713) (4,976) (2,329) 9,245
-------------- -------------- ------------------------------
Net cash provided by operating activities (2,424) 1,151 10,094 31,770
-------------- -------------- ------------------------------
Cash flows from investing activities:
Purchases of property and equipment (4,534) (12,517) (20,690) (24,917)
Purchases of other assets (243) (615) (1,043) (1,918)
Purchase of minority interest in subsidiary (100) (200) (200) (200)
-------------- -------------- ------------------------------
Net cash used in investing activities (4,877) (13,332) (21,933) (27,035)
-------------- -------------- ------------------------------
Cash flows from financing activities:
-------------- -------------- ------------------------------
Net cash provided by financing activities - - - -
-------------- -------------- ------------------------------
Net increase in cash and cash equivalents (7,301) (12,181) (11,839) 4,735
Cash and cash equivalents, beginning of period 15,866 15,866 15,866 15,866
-------------- -------------- ------------------------------
Cash and cash equivalents, end of period $8,565 $3,685 $4,027 $20,601
============== ============== ==============================
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(dollars in thousands, except share and per share data)
April 3, July 3, October 2, January 1,
2004 2004 2004 2005
--------------- ------------- --------------- --------------
(restated) (restated)
ASSETS
Current assets:
Cash and cash equivalents $28,623 $26,315 $15,745 $67,327
Inventories 19,484 29,948 29,435 30,791
Receivables 1,061 1,875 3,124 3,792
Prepaid expenses and other current
assets 3,617 4,501 5,180 5,320
Deferred tax assets 1,754 2,030 2,192 2,725
--------------- ------------- --------------- --------------
Total current assets 54,539 64,669 55,676 109,955
Property and equipment, net 72,777 73,079 74,694 75,815
Goodwill 97 97 97 -
Other intangible assets 1,486 1,484 1,442 1,411
Other assets, net 1,926 1,989 2,041 2,056
--------------- ------------- --------------- --------------
Total Assets $130,825 $141,318 $133,950 $189,237
=============== ============= =============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $18,088 $21,367 $17,694 $25,767
Accrued expenses 10,111 9,981 9,995 13,966
Other current liabilities 11,473 11,675 12,485 22,222
--------------- ------------- --------------- --------------
Total current liabilities 39,672 43,023 40,174 61,955
--------------- ------------- --------------- --------------
Deferred franchise revenue 1,905 1,864 2,152 2,075
Deferred rent 22,187 24,372 25,567 26,426
Other liabilities 840 803 768 732
Deferred tax liabilities 3,175 3,362 3,403 2,539
Redeemable preferred stock, at
redemption price 38,382 38,875 39,032 -
Stockholders' equity:
Nonredeemable preferred stock, at
par value 94 94 94 -
Common stock, par value $0.01 per
share. 5 7 7 196
Additional paid-in capital 10,967 10,928 12,831 77,708
Retained earnings 15,442 19,858 13,203 19,386
Notes receivable from officers (1,844) (1,868) (1,891) (1,770)
Unearned compensation - - (1,390) (10)
--------------- ------------- --------------- --------------
Total stockholders' equity 24,664 29,019 22,854 95,510
--------------- ------------- --------------- --------------
Total Liabilities and Stockholders'
Equity $130,825 $141,318 $133,950 $189,237
=============== ============= =============== ==============
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(dollars in thousands, except share and per share data)
13 Weeks 13 Weeks 13 Weeks 13 Weeks
Ended Ended Ended Ended
April 3, July 3, October 2, January 1,
2004 2004 2004 2005
-------------- ------------- -------------- ---------------
(restated)
Revenues:
Net retail sales $69,495 $65,924 $66,214 $98,836
Franchise fees 117 190 191 348
Licensing revenue - - 102 245
-------------- ------------- -------------- ---------------
Total revenues 69,612 66,114 66,507 99,429
-------------- ------------- -------------- ---------------
Costs and expenses:
Cost of merchandise sold 35,922 34,124 34,822 46,720
Selling, general, and administrative 24,993 23,638 25,145 41,532
Store preopening 212 493 767 714
Impairment charge (credit) - - - (54)
Interest expense (income), net (39) (59) (72) (129)
-------------- ------------- -------------- ---------------
Total costs and expenses 61,088 58,196 60,662 88,783
-------------- ------------- -------------- ---------------
Income before income taxes 8,524 7,918 5,845 10,646
Income tax expense 3,239 3,009 2,342 4,344
-------------- ------------- -------------- ---------------
Net income 5,285 4,909 3,503 6,302
Cumulative dividends and accretion of
redeemable preferred stock 492 493 152 125
Cumulative dividends of nonredeemable
preferred stock 114 114 35 -
-------------- ------------- -------------- ---------------
Net income available to common
and
participating preferred
stockholders $4,679 $4,302 $3,316 $6,177
============== ============= ============== ===============
Net income allocated to common
stockholders $104 $155 $140 $6,177
============== ============= ============== ===============
Net income allocated to participating
preferred stockholders $4,575 $4,147 $3,176 $-
============== ============= ============== ===============
Earnings per common share:
Basic $0.48 $0.44 $0.34 $0.45
============== ============= ============== ===============
Diluted $0.30 $0.27 $0.19 $0.32
============== ============= ============== ===============
Shares used in computing common per share amounts:
Basic 217,519 354,931 419,218 13,870,389
Diluted 17,858,276 18,021,047 18,528,825 19,650,953
Store data
(1):
Number of stores at end of period 151 # 157 164 170
Store square footage at end of period 464,972 # 479,042 497,385 514,986
Comparable store sales change (%) (2) 14.8% 12.9% 18.8% 23.3%
(1) Excludes our webstore and seasonal and event-based locations.
(2) Comparable store sales percentage changes are based on net retail sales and
stores are considered comparable beginning in their thirteenth full month
of operation.
BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
13 Weeks 26 Weeks 39 Weeks 52 Weeks
Ended Ended Ended Ended
April 3, July 3, October 2, January 1,
2004 2004 2004 2005
-------------- -------------- -----------------------------
(restated) (restated)
Cash flows from operating activities:
Net income $5,285 $10,194 $13,697 $19,999
Adjustments to reconcile net income
to net cash from operating activities:
Depreciation and amortization 3,543 7,125 10,817 14,948
Deferred taxes (268) (357) (478) (1,875)
Tax benefit from exercise of non-
qualified options - 410 410 410
Loss on disposal of property and
equipment - 142 269 533
Impairment of goodwill - - - 97
Impairment charge (credit) - - - (54)
Stock-based compensation 26 94 584 1,974
Change in assets and liabilities:
Inventories 3,089 (7,375) (6,862) (8,218)
Receivables 1,102 288 (961) (1,629)
Prepaid expenses and other
current assets 598 (286) (965) (1,105)
Accounts payable (3,734) (455) (4,128) 3,998
Accrued expenses and other
liabilities 1,083 2,723 4,994 19,449
-------------- -------------- -----------------------------
Net cash provided by operating
activities 10,724 12,503 17,377 48,527
-------------- -------------- -----------------------------
Cash flows from investing activities:
Purchases of property and equipment (2,403) (6,132) (11,278) (16,494)
Purchases of other assets (299) (657) (955) (1,238)
-------------- -------------- -----------------------------
Net cash used in investing
activities (2,702) (6,789) (12,233) (17,732)
-------------- -------------- -----------------------------
Cash flows from financing activities:
Payment of cash dividend - - (10,000) (10,000)
Exercise of employee stock options - - - 52
Collection of note receivable from
officer - - - 144
Proceeds from initial public
offering, net of offering costs - - - 25,735
-------------- -------------- -----------------------------
Net cash provided by financing
activities - - (10,000) 15,931
-------------- -------------- -----------------------------
Net increase in cash and cash
equivalents 8,022 5,714 (4,856) 46,726
Cash and cash equivalents, beginning of
period 20,601 20,601 20,601 20,601
-------------- -------------- -----------------------------
Cash and cash equivalents, end of
period $28,623 $26,315 $15,745 $67,327
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