Build-A-Bear Workshop 2012 Annual Report Download - page 39

BUILD-A-BEAR WORKSHOP, INC. 2012 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, prior to 2011,
France (Europe) and for our consolidated store base (dollars in thousands):
Fiscal 2012 Fiscal 2011
North
America Europe Total
North
America Europe Total
Net income (loss) $ (13,955) $(35,340) $ (49,295) $ (19,232) $ 2,170 $ (17,062)
Income tax expense (benefit) (85) 951 866 13,607 803 14,410
Interest expense (income) 63 (60) 3 56 (137) (81)
Store depreciation, amortization and impairment(1) 13,436 3,597 17,033 15,233 2,514 17,747
Goodwill impairment(2) — 33,670 33,670 —— —
General and administrative expense(3) 44,154 4,751 48,905 43,867 5,043 48,910
Franchising and commercial contribution(4) (966) — (966) (4,142) — (4,142)
Non-store activity contribution(5) (2,301) (1,094) (3,395) (3,008) (1,109) (4,117)
Store contribution $ 40,346 $ 6,475 $ 46,821 $ 46,381 $ 9,284 $ 55,665
Total revenues from external customers $309,141 $ 71,800 $380,941 $319,810 $74,565 $394,375
Franchising and commercial revenues from external customers (6,388) — (6,388) (7,334) — (7,334)
Revenues from non-store activities(5) (16,848) (3,576) (20,424) (16,765) (3,313) (20,078)
Store location net retail sales $285,905 $ 68,224 $354,129 $295,711 $71,252 $366,963
Store contribution as a percentage of store location
net retail sales 14.1% 9.5% 13.2% 15.7% 13.0% 15.2%
Total net income (loss) as a percentage of total revenues (4.5)% (49.2)% (12.9)% (6.0)% 2.9% (4.3)%
Fiscal 2010
North
America Europe Total
Net income (loss) $ (5,376) $ 5,480 $ 104
Income tax expense (benefit) (3,284) 708 (2,576)
Interest expense (income) (86) (164) (250)
Store depreciation, amortization and impairment(1) 16,222 2,949 19,171
Goodwill impairment(2) —— —
General and administrative expense(3) 48,573 (138) 48,435
Franchising and commercial contribution(4) (4,291) — (4,291)
Non-store activity contribution(5) (3,070) (972) (4,042)
Store contribution $ 48,688 $ 7,863 $ 56,551
Total revenues from external customers $331,392 $70,060 $401,452
Franchising and commercial revenues from external customers (13,699) (590) (14,289)
Revenues from non-store activities(5) (14,345) (2,785) (17,130)
Store location net retail sales $303,348 $66,685 $370,033
Store contribution as a percentage of store location net retail sales 16.1% 11.8% 15.3%
Total net income (loss) as a percentage of total revenues (1.6)% 7.8% 0.0%
(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) Goodwill impairment represents the write-off of the goodwill associated with the UK reporting unit.
(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 and store closing expenses. 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 including asset impairments and excluding 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.
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