Build-A-Bear Workshop 2009 Annual Report Download - page 41

BUILD-A-BEAR WORKSHOP, INC. 2009 FORM 10-K
The following table sets forth a reconciliation of store contribution to net income for our company-owned stores located in the
United States, Canada and Puerto Rico (North America), stores located in the U.K., Ireland and France (Europe) and for our
consolidated store base (dollars in thousands):
Fiscal 2009 Fiscal 2008
North
America Europe Total
North
America Europe Total
Net income (loss) $ (14,384) $ 1,911 $ (12,473) $ 4,150 $ 414 $ 4,564
Income tax expense (benefit) (9,434) (1,933) (11,367) 1,806 857 2,663
Interest expense (income) (93) (50) (143) (494) (305) (799)
Store depreciation, amortization and impairment(1) 20,159 5,314 25,473 18,813 4,264 23,077
Store preopening expense 90 — 90 1,832 578 2,410
Store closing expense(2) 981 — 981 2,952 — 2,952
Losses from investment in affiliate(3) 9,615 — 9,615 —— —
General and administrative expense(4) 37,591 3,508 41,099 42,334 3,953 46,287
Franchising and licensing contribution(5) (4,328) — (4,328) (5,114) — (5,114)
Non-store activity contribution(6) (2,282) (783) (3,065) (4,166) (553) (4,719)
Store contribution $ 37,915 $ 7,967 $ 45,882 $ 62,113 $ 9,208 $ 71,321
Total revenues from external customers $321,855 $72,520 $394,375 $392,368 $75,493 $467,861
Franchising and licensing revenues from external customers (5,823) — (5,823) (6,898) — (6,898)
Revenues from non-store activities(6) (15,058) (2,391) (17,449) (14,540) (1,616) (16,156)
Store location net retail sales $300,974 $70,129 $371,103 $370,930 $73,877 $444,807
Store contribution as a percentage of store location net retail
sales 12.6% 11.4% 12.4% 16.7% 12.5% 16.0%
Total net income (loss) as a percentage of total revenues -4.5% 2.6% -3.2% 1.1% 0.5% 1.0%
Fiscal 2007
North
America Europe Total
Net income $ 21,849 $ 660 $ 22,509
Income tax expense 12,514 — 12,514
Interest expense (income) (1,314) (217) (1,531)
Store depreciation, amortization and impairment(1) 19,286 2,662 21,948
Store preopening expense 3,436 980 4,416
Store closing expense(2) —— —
General and administrative expense(4) 42,123 3,033 45,156
Franchising and licensing contribution(5) (4,495) — (4,495)
Non-store activity contribution(6) (3,250) (499) (3,749)
Store contribution $ 90,149 $ 6,619 $ 96,768
Total revenues from external customers $415,359 $59,004 $474,363
Franchising and licensing revenues from external customers (6,193) — (6,193)
Revenues from non-store activities(6) (16,321) (1,149) (17,470)
Store location net retail sales $392,845 $57,855 $450,700
Store contribution as a percentage of store location net retail sales 22.9% 11.4% 21.5%
Total net income as a percentage of total revenues 5.3% 1.1% 4.7%
(1) Store depreciation, amortization and impairment includes depreciation and amortization of all capitalized assets in store locations, including leasehold
improvements, furniture and fixtures, and computer hardware and software and store asset impairment charges.
(2) Store closing expense represents asset impairment and other charges related to the closure of the Friends 2B Made concept.
(3) Losses from investment in affiliate represent the Company’s portion of losses of Ridemakerz.
(4) General and administrative expenses consist of non-store, central office general and administrative functions such as management payroll and related benefits,
travel, information systems, accounting, purchasing and legal costs as well as the depreciation and amortization of central office leasehold improvements,
furniture and fixtures, computer hardware and software, including assets related to the virtual world, and intellectual property. General and administrative
expenses also include a central office marketing department, primarily payroll and related benefits expense, but exclude advertising expenses, such as direct mail
catalogs and television advertising, which are included in store contribution.
(5) Franchising and licensing contribution includes franchising and licensing revenues and all expenses attributable to the international franchising and licensing and
entertainment segments other than depreciation, amortization and interest expense/income. Depreciation and amortization related to franchising and licensing is
included in the general and administrative expense caption. Interest expense/income related to franchising and licensing is included in the interest expense
(income) caption.
(6) Non-store activities include our webstores and seasonal and event-based locations as well as intercompany transfer pricing charges.
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