Build-A-Bear Workshop Inc. Q4 2008 Earnings Call Transcript

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2009-02-19 10:58:24.0

Tags: Credit Suisse First Boston, Build-A-Bear Workshop Inc., Impairment, Cash Flow, Call Transcript, U.K., Earnings, Operational Accounting, Personal Finance, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions). Your first question comes from Paul LeJuez – Credit Suisse.

Paul LeJuezCredit Suisse

Just a couple of housekeeping questions, can you share with us the, what you got in the extra week in both sales and earnings and then maybe explain that U.K. impairment charge it seems larger than the overall company charge I think because it was internal, just trying to understand that? What was free cash flow for the year and your expectations for '09 and the comp that you're reporting in the European business, is that constant currency or is that in dollars?

Tina Klocke

Okay Paul, what we identified was that the 53rd week was the last week of the year and just as a reminder in our, we're a calendar year-end, so that week is the last week of December and it is usually between Christmas and New Years and this week is always included in our fiscal year and it's an important revenue week for our kids as they're out of school and gift card redemptions are high.

So it is meaningful, but we're not going to break it out separately because it would be difficult to isolate or extract this week from our results since it occurs every year.


The cash flow, while we're not completed with our cash flow analysis and we typically do not include the cash flow statement in our earnings release, but based upon preliminary results we looked at that are cash flow from operations is positive for the year.

And when you look at the U.K., the U.K. the other charges that we talked about in our release totaled $3 million and it includes some impairment and it also includes a intercompany charge related to royalty from the U.K. to the U.S. from a tax perspective. So it's not all active impairment, just to be clear about that.

Maxine Clark

And the comp in Europe, the dollars account.

Tina Klocke

The comps in Europe are computed based on constant currency.

Paul LeJuezCredit Suisse

Got you, do you have that number what it is in dollars?

Tina Klocke

Well it would be the same because you'd convert, if you looked at it in pounds, it's the number and then if you convert it, you convert it at the current year rate so it would be consistent.

Paul LeJuezCredit Suisse

Okay and do you foresee having to borrow on your credit facility this year?

 

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