Corporate News Blog - Build-A-Bear Workshop Completes Strategic Review; Announces $20 Million Share Buyback Program
ACCESS Newswire
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:
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on BBW. Go directly to your stock of interest and access today's free coverage at:
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.
About Build-A-Bear
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.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
