Build-A-Bear Workshop 2009 Annual Report Download - page 62

BUILD-A-BEAR WORKSHOP, INC. 2009 FORM 10-K
Notes to Consolidated Financial Statements (continued)
interest at LIBOR plus 2.05%. Financial covenants include
maintaining a minimum tangible net worth, maintaining a
minimum fixed charge cover ratio (as defined in the credit
agreement) and not exceeding a maximum funded debt to
earnings before interest, depreciation and amortization ratio.
As of January 2, 2010, there were no borrowings under our
line of credit and there was a standby letter of credit of
approximately $1.1 million outstanding under the credit
agreement. Giving effect to this standby letter of credit, there
was approximately $38.9 million available for borrowing
under the line of credit.
(10) COMMITMENTS AND CONTINGENCIES
(a) Operating Leases
The Company leases its retail stores and corporate offices
under agreements which expire at various dates through
2030. The majority of leases contain provisions for base rent
plus contingent payments based on defined sales as well as
scheduled escalations. Total office and retail store base rent
expense was $45.9 million, $49.8 million and $45.8 million,
and contingent rents were $0.9 million, $1.2 million and
$1.8 million for 2009, 2008 and 2007, respectively.
Future minimum lease payments at January 2, 2010,
were as follows (in thousands):
2010 $ 50,651
2011 47,107
2012 42,345
2013 35,469
2014 31,319
Subsequent to 2014 75,686
$282,577
(b) Litigation
In the normal course of business, the Company is subject
to certain claims or lawsuits. Management is not aware of any
claims or lawsuits that will have a material adverse effect on
the consolidated financial position or results of operations of
the Company.
(11) EARNINGS (LOSS) PER SHARE
The following table sets forth the computation of basic and
diluted earnings per share (in thousands, except share and
per share date):
2009 2008 2007
Net income (loss) $ (12,473) $ 4,564 $ 22,509
Weighted average
number of
common shares
outstanding 18,874,352 19,153,123 20,256,847
Effect of dilutive
securities:
Stock options —36,366 141,355
Restricted stock —34,784 50,591
Weighted average
number of
common shares
outstanding –
dilutive 18,874,352 19,224,273 20,448,793
Earnings (loss) per
share:
Basic: $ (0.66) $ 0.24 $ 1.11
Diluted $ (0.66) $ 0.24 $ 1.10
In calculating diluted earnings per share for fiscal 2009,
options to purchase 805,347 shares of common stock were
outstanding at the end of the period, but were not included in
the computation of diluted earnings per share due to their anti-
dilutive effect. An additional 1,450,308 shares of restricted
common stock were outstanding at the end of the period, but
excluded from the calculation of diluted earnings per share
due to their anti-dilutive effect under provisions of ASC
260-10.
In calculating diluted earnings per share for fiscal 2008,
options to purchase 328,772 shares of common stock were
outstanding at the end of the period, but were not included in
the computation of diluted earnings per share due to their anti-
dilutive effect. An additional 702,493 shares of restricted
common stock were outstanding at the end of the period, but
excluded from the calculation of diluted earnings per share
due to their anti-dilutive effect.
In calculating diluted earnings per share for fiscal 2007,
options to purchase 137,856 shares of common stock were
outstanding at the end of the period, but were not included in
the computation of diluted earnings per share due to their anti-
dilutive effect. An additional 328,784 shares of restricted
common stock were outstanding at the end of the period, but
excluded from the calculation of diluted earnings per share
due to their anti-dilutive effect.
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