Barnes & Noble Comparable Store Sales Increase 5.9 Percent in Third Quarter.NEW YORK--(BUSINESS WIRE)--Nov. 18, 1999-- Barnes Barnes, former municipal borough, SE England. See Richmond upon Thames. & Noble Reports Third-Quarter Profit of $0.05 Per Share Compared with $0.07 Loss for Prior Year Babbage's Etc. Third-Quarter Comparable Store Sales up 55 Percent Acquisition Completed Barnes & Noble, Inc. (NYSE NYSE See: New York Stock Exchange : BKS BKS Barracks BKS Best Kept Secret (gaming) BKS Bildung, Kultur Und Sport (German) BKS Brookside (city) BKS Bergen Kirurgiske Sykehus (Bergen, Norway) ), the nation's largest bookseller, today reported sales of $715.9 million for the third quarter ended October October: see month. 30, 1999, up 9.0 percent from $656.8 million last year. Barnes & Noble "super" store sales were $622.3 million, up 12.3 percent from $554.0 million in the third quarter of 1998, and accounted for 86.9 percent of total sales compared with 84.3 percent for the same period last year. Barnes & Noble "super" store comparable sales increased 5.9 percent while B. Dalton Dalton, city (1990 pop. 21,761), seat of Whitfield co., extreme NW Ga., in the Appalachian valley; inc. 1847. It is a highly industrialized city in a farm area. comparable store sales were down (0.8) percent. The sales for the quarter do not include results from the Babbage's Etc. acquisition. Sales were strong across all book categories, particularly children's books (the three "Harry Potter A potter is someone who makes pottery. Potter may also refer to: People
Thomas Leo Clancy Jr. (born April 12 1947), better known as Tom Clancy , Tom Wolfe, Nicholas Sparks Nicholas Sparks may refer to:
Stephen Edwin King (born September 21, 1947) is an American author of over 200 stories including over 50 bestselling horror and , James Patterson
non-fiction n → Sachbücher pl adj (book) → Sach-; ( (Frank McCourt's 'Tis, Edmund Edmund, 921–46, king of Wessex (939–46), half brother and successor of Athelstan. Immediately after his accession he had to face an invasion of Irish vikings led by Olaf Guthfrithson. Morris's Dutch, John McCain's Faith of My Fathers) and educational books (teaching aids teaching aids npl → materiales mpl pedagógicos teaching aids npl → supports mpl pédagogiques teaching aids teach npl and workbooks for the growing home school market), as well as music and cafes. Comparable store sales also benefited from the roll-out of the BookMaster system, which resulted in a significant increase in customer orders. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net earnings for the quarter were $3.4 million, or $0.05 per share (based on 71.5 million shares) as compared with a consolidated net loss of ($4.6) million or ($0.07) per share (based on 68.6 million shares) for the same period last year. Earnings from the company's retail business increased 14.1 percent to $8.6 million or $0.12 per share (based on 71.5 million shares). Consolidated net earnings for the quarter consisted of net earnings of $0.12 per share from the retail business and a non-cash loss of $0.07 per share (based on 71.5 million shares) from the company's investment in barnesandnoble.com. Since barnesandnoble.com has nearly $600 million in cash and does not have any debt, the losses of barnesandnoble.com continue to represent a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. to Barnes & Noble, Inc. earnings. The company continues to generate strong cash flow from its retail business. Over the past 12 months, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become from the retail business was $294 million, resulting in free cash flow of $144 million. Barnes & Noble completed its acquisition of Babbage's Etc. on October 28, 1999. While results for the third quarter do not reflect the acquisition, Babbage's Etc.'s third-quarter comparable store sales increased 55 percent. As expected, sales growth was driven by new platform and title introductions. Babbage's Etc. is one of the nation's largest operators of video game and entertainment software stores, with 502 stores under the Babbage's, Software Etc. and GameStop GameStop Corporation (NYSE: GME), headquartered in Grapevine, Texas, a suburb of Dallas, is the world's largest video game and entertainment software retailer. The company operates over 4,900 retail stores throughout Japan, U.S. names, and a Web site, gamestop.com. The acquisition is expected to be accretive to Barnes & Noble's earnings by $0.10 per share for fourth quarter 1999. "Barnes & Noble had a strong third quarter. Our store performance continues to be excellent and, by meeting customer needs and providing an extensive selection of books and related products, we are in position to have a strong holiday season," said Leonard Leon·ard , Ray Charles Known as "Sugar Ray." Born 1956. American boxer who won the 1976 Olympic light welterweight title. He held five world titles as both a welterweight and middleweight between 1979 and 1987. Noun 1. Riggio, chairman and chief executive officer of Barnes & Noble, Inc. "Babbage's Etc. further extends our selection of products into an exciting new area of tremendous growth, as evidenced by their extraordinary comparable store sales." Other Highlights - On November November: see month. 2, 1999, Barnes & Noble announced an investment in iUniverse iUniverse, founded in October 1999, is one of the largest self-publishing companies in the United States. The company uses print-on-demand technology and publishes more than 5,000 new titles each year. iUniverse has offices in New York City, Shanghai and Lincoln, Nebraska. .com, the world's largest publishing portal. This investment opens a new era of opportunity for the millions of talented new writers around the world and the millions of books that are out of print. - On October 28, 1999, barnesandnoble.com announced sales for the third quarter ended September September: see month. 30, 1999 of $49.1 million, an increase of 215 percent from $15.6 million for the third quarter of 1998. The number of first-time customers was a record 581,000 during the third quarter, bringing the cumulative customer account total to 2.9 million as of September 30, 1999. As of October 30, 1999, the company operated 528 Barnes & Noble stores and 444 B. Dalton stores. During the third quarter, 12 Barnes & Noble stores were opened and five were closed. B. Dalton closed four stores in the third quarter. About Barnes & Noble, Inc. Barnes & Noble stores stock an authoritative selection of book titles and provide access to more than one million titles. They offer books from more than 50,000 publisher imprints with an emphasis on small, independent publishers and university presses. Barnes & Noble is one of the world's largest booksellers on the World Wide Web (http://www.bn.com), and the exclusive bookseller on America Online See AOL. (Keyword (1) A word used in a text search. (2) A word in a text document that is used in an index to best describe the contents of the document. (3) A reserved word in a programming or command language. 1. : bn). The company also publishes books under its own imprint im·print tr.v. im·print·ed, im·print·ing, im·prints 1. To produce (a mark or pattern) on a surface by pressure. 2. To produce a mark on (a surface) by pressure. 3. for exclusive sale through its retail stores, mail-order mail order n. An order for goods to be shipped through the mail.  -or catalogs, and
Web site. Barnes & Noble recently acquired Babbage's Etc., one
of nation's largest operators of video game and entertainment
software stores.
SAFE HARBOR Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. This release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding expectations of the company. These statements are based on currently available information and represent the beliefs of the management of the company. The future events which are the subject of such statements are subject to certain risks, including those set forth in the company's annual, quarterly and periodic reports on file with the Securities and Exchange Commission. -0-
BARNES & NOBLE, INC. AND SUBSIDIARIES
Selected Segment Information
(thousands of dollars, except per share data)
(unaudited)
For the 13 Weeks Ended
---------------------------------------------
October 30, 1999 October 31, 1998
---------------- ----------------
($000's) EPS effect(a) ($000's) EPS effect(b)
(pretax) (pretax)
Barnes & Noble
Retail Business
Retail Earnings 14,477 0.12 12,690 0.11
Investing Activities
Equity in net
loss of
barnesandnoble.com (8,736) (0.07) (20,472) (0.18)
------- ------ ------- ------
Consolidated
Barnes & Noble, Inc.
and Subsidiaries
Earnings 5,741 0.05 (7,782) (0.07)
======= ====== ======= ======
(a) Based on 71,461,000 shares outstanding
(b) Based on 68,597,000 shares outstanding
BARNES & NOBLE, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(thousands of dollars, except per share data)
October 30, October 31, January 30,
1999 1998 1999
-------------- -------------- ------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 19,234 10,614 31,081
Receivables, net 76,470 65,399 57,523
Merchandise inventories 1,275,167 1,055,676 945,073
Prepaid expenses
and other current assets 59,118 56,534 54,634
-------------- -------------- ------------
Total current assets 1,429,989 1,188,223 1,088,311
-------------- -------------- ------------
Property and equipment:
Land and land improvements 3,247 3,197 3,197
Buildings and
leasehold improvements 402,581 371,323 383,292
Fixtures and equipment 549,403 413,214 440,488
-------------- -------------- ------------
955,231 787,734 826,977
Less accumulated
depreciation
and amortization 398,029 298,374 316,631
-------------- -------------- ------------
Net property
and equipment 557,202 489,360 510,346
-------------- -------------- ------------
Intangible assets, net 287,447 87,795 86,980
Investment in
barnesandnoble.com 255,767 43,124 82,307
Other noncurrent assets 45,049 40,507 39,653
-------------- -------------- ------------
Total assets $ 2,575,454 1,849,009 1,807,597
============== ============== ============
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 756,928 621,626 498,237
Accrued liabilities 210,534 174,050 274,085
-------------- -------------- ------------
Total current liabilities 967,462 795,676 772,322
-------------- -------------- ------------
Long-term debt 575,000 447,900 249,100
Deferred income taxes 117,552 - 32,449
Other long-term liabilities 84,779 72,162 74,937
Shareholders' equity
Common stock; $.001 par
value; 300,000,000 shares
authorized; 69,442,074,
68,619,224 and 68,759,111
shares issued and outstanding,
respectively 69 69 69
Additional paid-in capital 653,037 484,015 523,517
Accumulated other
comprehensive earnings 1,366 - -
Retained earnings 176,189 49,187 155,203
-------------- -------------- ------------
Total shareholders'
equity 830,661 533,271 678,789
-------------- -------------- ------------
Commitments
and contingencies - - -
-------------- -------------- ------------
Total liabilities
and shareholders'
equity $ 2,575,454 1,849,009 1,807,597
============== ============== ============
BARNES & NOBLE, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(thousands of dollars, except per share data)
(unaudited)
13 Weeks Ended 39 Weeks Ended
------------------------ -------------------------
October 30, October 31, October 30, October 31,
1999 1998 1999 1998
----------- ----------- ----------- -----------
Sales $ 715,903 656,837 2,161,404 1,976,320
Cost of sales
and occupancy 515,413 473,870 1,569,268 1,441,122
--------- ----------- ----------- -----------
Gross profit 200,490 182,967 592,136 535,198
Selling and
administrative
expenses(a) 150,520 138,537 458,143 410,873
Depreciation
and amortization 27,751 22,784 80,144 64,487
Pre-opening expenses 2,137 2,013 4,463 6,897
--------- ----------- ----------- -----------
Operating profit 20,082 19,633 49,386 52,941
Interest expense,
net (5,605) (6,943) (15,352) (18,982)
Equity in net loss of
barnesandnoble.com (8,736) (20,472) (26,812) (57,078)
Gain on formation of
barnesandnoble.com - - 25,000 -
Gain on the partial
sale of Chapters Inc. - - 10,975 -
--------- ----------- ----------- -----------
Earnings (loss)
before income taxes
and cumulative
effect of a change
in accounting
principle 5,741 (7,782) 43,197 (23,119)
Income taxes 2,354 (3,186) 17,711 (9,479)
--------- ----------- ----------- -----------
Earnings (loss)
before cumulative
effect of a change
in accounting
principle 3,387 (4,596) 25,486 (13,640)
Cumulative effect of
a change in
accounting principle,
net of tax
benefit of $3,125 - - (4,500) -
--------- ----------- ----------- -----------
Net earnings (loss) $ 3,387 (4,596) 20,986 (13,640)
========= =========== =========== ===========
Earnings (loss) per
common share:
Basic
Earnings (loss)
before cumulative
effect of a change
in accounting
principle $ 0.05 (0.07) 0.37 (0.20)
Cumulative effect
of a change in
accounting
principle,
net of tax $ - - (0.07) -
Net earnings (loss) $ 0.05 (0.07) 0.30 (0.20)
Diluted
Earnings (loss)
before cumulative
effect of a change
in accounting
principle $ 0.05 (0.07) 0.35 (0.20)
Cumulative effect
of a change in
accounting
principle,
net of tax $ - - (0.06) -
Net earnings (loss) $ 0.05 (0.07) 0.29 (0.20)
Weighted average
common shares
outstanding
Basic 69,417,000 68,597,000 69,235,000 68,351,000
Diluted 71,461,000 68,597,000 71,772,000 68,351,000
Percentage of sales:
Sales 100.0% 100.0% 100.0% 100.0%
Cost of sales
and occupancy 72.0% 72.1% 72.6% 72.9%
--------- ----------- ----------- -----------
Gross profit 28.0% 27.9% 27.4% 27.1%
--------- ----------- ----------- -----------
Selling and
administrative
expenses 21.0% 21.1% 21.2% 20.8%
Depreciation
and amortization 3.9% 3.5% 3.7% 3.3%
Pre-opening expenses 0.3% 0.3% 0.2% 0.3%
--------- ----------- ----------- -----------
Operating profit 2.8% 3.0% 2.3% 2.7%
Interest expense, net -0.8% -1.1% -0.7% -1.0%
Equity in net loss
of barnesandnoble.com -1.2% -3.1% -1.2% -2.9%
Gain on formation
of barnesandnoble.com - - 1.2% -
Gain on the partial
sale of Chapters Inc. - - 0.5% -
--------- ----------- ----------- -----------
Earnings (loss)
before income taxes
and cumulative
effect of a change
in account principle 0.8% -1.2% 2.0% -1.2%
Income taxes 0.3% -0.5% 0.8% -0.5%
--------- ----------- ----------- -----------
Earnings (loss)
before cumulative
effect of a change
in accounting
principle 0.5% -0.7% 1.2% -0.7%
Cumulative effect of
a change in
accounting principle,
net of tax
benefit of $3,125 - - -0.2% -
--------- ----------- ----------- -----------
Net earnings (loss) 0.5% -0.7% 1.0% -0.7%
========= =========== =========== ===========
(a) Includes $5 million write-off of Ingram Book Group acquisition
costs for the 39 weeks ended October 30, 1999
General financial information on Barnes & Noble, Inc. can be obtained via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the by visiting the company's investor relations Investor relations The process by which the corporation communicates with its investors. Web site: http//www.shareholder.com/bks/. |
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