Build-A-Bear Workshop 2011 Annual Report Download - page 39

BUILD-A-BEAR WORKSHOP, INC. 2011 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 United Kingdom, Ireland and France (Europe) and
for our consolidated store base (dollars in thousands):
Fiscal 2011 Fiscal 2010
North
America Europe Total
North
America Europe Total
Net income (loss) $ (19,232) $ 2,170 $ (17,062) $ (5,376) $ 5,480 $ 104
Income tax expense (benefit) 13,607 803 14,410 (3,284) 708 (2,576)
Interest expense (income) 56 (137) (81) (86) (164) (250)
Store depreciation, amortization and impairment(1) 15,233 2,514 17,747 16,222 2,949 19,171
Store preopening expense 226 321 547 526 182 708
Losses from investment in affiliate(2) —— — —— —
General and administrative expense(3) 43,641 4,722 48,363 48,047 (320) 47,727
Franchising and commercial contribution(4) (4,142) — (4,142) (4,291) — (4,291)
Non-store activity contribution(5) (3,008) (1,109) (4,117) (3,070) (972) (4,042)
Store contribution $ 46,381 $ 9,284 $ 55,665 $ 48,688 $ 7,863 $ 56,551
Total revenues from external customers $319,810 $74,565 $394,375 $331,392 $70,060 $401,452
Franchising and commercial revenues from external customers (7,334) — (7,334) (13,699) (590) (14,289)
Revenues from non-store activities(5) (16,765) (3,313) (20,078) (14,345) (2,785) (17,130)
Store location net retail sales $295,711 $71,252 $366,963 $303,348 $66,685 $370,033
Store contribution as a percentage of store location
net retail sales 15.7% 13.0% 15.2% 16.1% 11.8% 15.3%
Total net income (loss) as a percentage of total revenues (6.0)% 2.9% (4.3)% (1.6)% 7.8% 0.0%
Fiscal 2009
North
America Europe Total
Net income (loss) $ (14,384) $ 1,911 $ (12,473)
Income tax expense (benefit) (9,434) (1,933) (11,367)
Interest expense (income) (93) (50) (143)
Store depreciation, amortization and impairment(1) 20,159 5,314 25,473
Store preopening expense 90 — 90
Losses from investment in affiliate(2) 9,615 — 9,615
General and administrative expense(3) 38,572 3,508 42,080
Franchising and commercial contribution(4) (4,328) — (4,328)
Non-store activity contribution(5) (2,282) (783) (3,065)
Store contribution $ 37,915 $ 7,967 $ 45,882
Total revenues from external customers $323,386 $72,520 $395,906
Franchising and commercial revenues from external customers (7,354) — (7,354)
Revenues from non-store activities(5) (15,058) (2,391) (17,449)
Store location net retail sales $300,974 $70,129 $371,103
Store contribution as a percentage of store location net retail sales 12.6% 11.4% 12.4%
Total net income (loss) as a percentage of total revenues (4.4)% 2.6% (3.2)%
(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) Losses from investment in affiliate represent the Company’s losses related to its investment in Ridemakerz.
(3) 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 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 television advertising, virtual world costs and
direct mail catalogs, which are included in store contribution.
(4) Franchising and commercial contribution includes franchising and commercial revenues and all expenses attributable to the international franchising and
commercial 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 commercial activities is included in the interest
expense (income) caption.
(5) Non-store activities include our webstores, temporary locations and seasonal and event-based locations as well as intercompany transfer pricing charges.
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