Corporate News Blog - Build-A-Bear Workshop Completes Strategic Review; Announces $20 Million Share Buyback Program
LONDON, UK / ACCESSWIRE / August 23, 2017 /Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Build-A-Bear Workshop, Inc. (NYSE: BBW) ("Build-A-Bear"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=BBW. The Company announced on August 21, 2017, that its Board of Directors has concluded its review of strategic alternatives. The Company stated that post an extensive analysis and careful consideration of a broad range of strategic alternatives by its Board of Directors, Build-A-Bear's has authorized a share repurchase program of up to $20 million. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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The Rationale for Share Repurchase
Build-A-Bear noted that adoption of the share repurchase program reflects the Company's belief that its stock represents an attractive investment opportunity. Build-A-Bear has returned to sustained profitability and has strong cash flow and a flexible capital structure, and the Company feels that it will have the capacity to repurchase its stock while still deploying capital to facilitate the attainment of its next stated objective of sustained profitable growth. The Board's cited the decision to adopt a share repurchase program is a statement of confidence and optimism in the strength of the Company's evolved business model and its continued commitment to increase shareholder value.
"In the course of our review process, we carefully evaluated our business and its opportunities,"said Chief Executive Sharon Price John, "Although our formal review of a broad range of strategic alternatives is complete, we continue to prioritize the initiatives that will allow us to achieve our long-term business goals."
For its second quarter 2017 operating results announced on July 27, 2017, Build-A-Bear recorded total revenues of $77.2 million, an increase of 2.8% compared to $75.1 million in Q2 2016. The Company's net loss narrowed to $1.5 million, or $0.10 per share, compared to a net loss of $4.3 million, or $0.28 per share, in the prior year's corresponding quarter. The Company ended the reported quarter with cash and cash equivalents totaling $12.6 million and no borrowings under its revolving credit facility.
Increased Share Repurchase Program
Under the share repurchase program authorized by the Board, Build-A-Bear intends to purchase up to $20 million of its common stock in the open market (including through 10b5-1 trading plans), or through privately negotiated transactions. The primary source of funding for the program is expected to be cash on hand. The Company stated that the timing and amount of share repurchases, if any, will depend on price, market conditions, applicable regulatory requirements, and other factors. The program authorizes Build-A-Bear to repurchase shares through September 30, 2020, and does not require the Company to repurchase any specific number of shares, and may be modified, suspended, or terminated at any time without prior notice. Shares repurchased under the program will be subsequently retired.
Celebrating 20 years of business in 2017, Build-A-Bear operates as a specialty retailer of plush animals and related products. Build-A-Bear Workshop has approximately 400 stores worldwide where guests can create customizable furry friends, including company-owned stores in the United States, Canada, Denmark, Ireland, Puerto Rico, the United Kingdom and China, and franchise stores in Africa, Asia, Australia, Europe, Mexico, and Middle-East. The Company was named to the FORTUNE 100 Best Companies to Work For® list for the eighth year in a row in 2016.
Last Close Stock Review
On Tuesday, August 22, 2017, Build-A-Bear Workshop's stock closed the trading session at $8.15, slipping 2.98% from its previous closing price of $8.40. A total volume of 410.96 thousand shares were exchanged during the session, which was above the 3-month average volume of 83.47 thousand shares. Shares of the Company have a PE ratio of 38.44 and currently have a market cap of $129.91 million.
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