Barnes & Noble Comparable Store Sales Increase 6.6 Percent in Second Quarter.NEW YORK--(BUSINESS WIRE)--Aug. 19, 1999-- Barnes & Noble Reports Consolidated EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of $0.33 For Second Quarter Compared with an $0.08 Loss for Prior Year Barnes & Noble Stores Now Connected To Vast Online Inventory 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 $727.2 million for the second quarter ended July July: see month. 31, 1999, up 9.8 percent from $662.5 million last year. Barnes & Noble "super" store sales were $633.5 million, up 13.7 percent from $557.1 million in the second quarter of 1998, and accounted for 87 percent of total sales compared with 84 percent for the same period last year. Barnes & Noble "super" store comparable sales increased an industry-leading 6.6 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 (0.5) percent. Sales were strong across many categories, in particular fiction (led by Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs Harris' "Hannibal Hannibal, Carthaginian general Hannibal (hăn`əbəl), b. 247 B.C., d. 183 or 182 B.C. Carthaginian general, an implacable and formidable enemy of Rome. "), political science (led by Clinton-related books such as George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). Stephanopoulos' "All Too Human," Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. Isikoff's "Uncovering Clinton Clinton. 1 Town (1990 pop. 12,767), Middlesex co., S Conn., on Long Island Sound; settled 1663, set off from Killingworth and inc. 1838. The school that later became Yale opened here in 1702. " and others), religion (Dalai Dalai means ocean in Mongolian or may refer to:
Potter may also refer to: People
As previously announced, sales for barnesandnoble.com increased by 243 percent from the second quarter 1998 (ended June June: see month. 30) to $39.1 million. Cumulative customer accounts increased by more than 506,000 during the second quarter, to over 2.2 million as of June 30, 1999. "We are extremely pleased with our second quarter results," 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. "Our comparable store sales are strong and continue to lead the industry. The success of our multi-channel See multichannel. strategy is clearly reflected in the strong performances of our retail and online businesses. We are providing our customers with any title and at any location they choose, online or in store, while we continue to strengthen our franchise." Consolidated net earnings for the quarter were $23.5 million, or $0.33 per share, as compared with a consolidated net loss of ($5.7) million or ($0.08) per share for the same period last year. Earnings before taxes from the company's retail business excluding non-recurring items increased 16.1 percent to $15.5 million or $0.13 per share after tax. Consolidated net earnings for the quarter consisted of net earnings of $0.13 per share from the retail business, a loss of ($0.05) per share from the company's 40 percent investment in barnesandnoble.com, and a net non-recurring gain of $0.25 per share (see below). The company's retail cash flow for the past twelve months (as measured by 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 ) increased 9.9 percent to $289 million from $263 million during the prior year period. In addition, the company generated free cash flow of $126 million over the past twelve months. Increasing cash flow and free cash flow led to improving leverage as total debt to retail EBITDA for the twelve months ended July 31, 1999 was 1.20, down from 1.50 for the comparable prior year period. In addition, total debt was down 12.1 percent while our sales were up 9.8 percent quarter over quarter. "The completion of the rollout of BookMaster, our in-store system, marks another milestone," said Alan A`lan´ n. 1. A wolfhound. Kahn Kahn , Louis Isadore 1901-1974. Estonian-born American architect whose bold monumental designs include the Yale University Art Gallery (1954) and the Kimbell Art Museum in Fort Worth, Texas (1972). Noun 1. , chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Barnes & Noble, Inc. "With this rollout, we have brought 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 technology into our stores, connecting over 500 Barnes & Noble stores to the complete inventory of our Web site. Our store customers now have access to the same number of titles as our online customers ready for immediate delivery to their home, office or to the store. With the BookMaster system, we can do all this in the same time frame as our Internet competitors. As a result, customer orders are up significantly on a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis." The company recorded a second quarter gain of $31 million pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern or $0.25 per share after tax comprised of the following non-recurring items: - a $25 million pretax gain ($0.20 per share after tax) from the receipt of $25 million from Bertelsmann For the foundation, see . Bertelsmann AG is a transnational media corporation founded in 1835, based in Gütersloh, Germany. The company operates in 63 countries and employs over 100,000 workers (as of June 30, 2007). In 2006 the company reported a € 19. as a result of the barnesandnoble.com initial public offering (IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. ); - an $11 million pretax gain ($0.09 per share after tax) resulting from the partial sale of the company's investment in Chapters Inc., Canada's largest bookseller; and - a pretax charge of $5 million ($0.04 per share after tax) associated with the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of certain expenses of the company in connection with its termination of the Ingram
Ingram may mean: In geography:
acquisition. As of July 31, 1999, the company operated 521 Barnes & Noble stores and 448 B. Dalton stores. During the second quarter, nine Barnes & Noble stores were opened and nine were closed. B. Dalton closed 18 stores in the second 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: bn). Barnes & Noble 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.
About barnesandnoble.com Since launching its online business in May 1997, barnesandnoble.com (Nasdaq: BNBN) quickly has become one of the world's largest Web sites and the fourth largest E-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. site, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Media Metrix. Focused largely on the sale of books, music and related products, the company has capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. on the recognized brand value of the Barnes & Noble name to become the second-largest, and one of the fastest growing, online distributors of books. Customers can choose from millions of new and out-of-print titles and enjoy a variety of related content such as author chats, book synopses and reader reviews. The site also offers thousands of bargain books discounted up to 91 percent, the most popular software and magazine titles, music and gift items for every occasion. barnesandnoble.com recently launched its music store which includes the first online classical music superstore su·per·store n. A very large retail store that stocks highly diversified merchandise, such as groceries, toys, and camera equipment, or a wide variety of mechandise in a specific product line, such as computers or sporting goods. . With access to Barnes & Noble's more than 750,000 in-stock titles, barnesandnoble.com has the largest standing inventory of any online bookseller ready for immediate delivery. The URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. , http://www.bn.com, makes the site easy to find, and its Express Lane(SM) single-click ordering process ensures fast and convenient purchasing. The barnesandnoble.com affiliate network An affiliate network acts as an intermediary between publishers (affiliates) and (merchant) affiliate programs. It allows publishers to find affiliate programs, which are suitable for their website and it helps websites offering affiliate programs reach its target audience. has more than 160,000 members and the company maintains strategic alliances with major Web portals See portal. and content sites, such as AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. , Lycos and MSN (1) (MicroSoft Network) A family of Internet-based services from Microsoft, which includes a search engine, e-mail (Hotmail), instant messaging (Windows Live Messaging) and a general-purpose portal with news, information and shopping (MSN Directory). . The company is also a leader in business-to-business E-commerce with its unique Business Solutions program. 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 and quarterly reports on file with the Securities and Exchange Commission. General financial information on Barnes & Noble, Inc. can be obtained via the Internet 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/. -0-
BARNES & NOBLE, INC. AND SUBSIDIARIES
Selected Segment Information
(thousands of dollars, except per share data)
(unaudited)
For the 13 weeks ended
-----------------------------------------
-----------------------------------------
July 31, 1999 August 1, 1998
------------------ ------------------
($000's) EPS ($000's) EPS
-------- -------- -------- --------
(pretax) effect(a) (pretax) effect(b)
Barnes & Noble
Retail Business
Retail Earnings $ 15,460 0.13 13,321 0.12
Non-recurring Items
Gain on formation of
barnesandnoble.com 25,000 0.20
Gain on the partial sale
of Chapters Inc. 10,975 0.09
Write-off of Ingram Book
Group acquisition costs (5,000) (0.04)
--------------------
Total Non-recurring Items 30,975 0.25
Investing Activities
Equity in net loss of
barnesandnoble.com (6,532) (0.05) (23,003) (0.20)
-------------------- --------------------
Consolidated Barnes &
Noble, Inc. and
Subsidiaries
Earnings $ 39,903 0.33 (9,682) (0.08)
==================== ====================
(a) Based on 71,826,000 shares outstanding
(b) Based on 68,354,000 shares outstanding
BARNES & NOBLE, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(thousands of dollars, except per share data)
(unaudited)
13 weeks ended 26 weeks ended
---------------------- ----------------------
July 31, Aug 1, July 31, Aug 1,
1999 1998 1999 1998
---------- ---------- ---------- ----------
Sales $ 727,165 662,507 1,445,501 1,319,483
Cost of sales and
occupancy 527,890 482,663 1,053,855 967,252
---------- ---------- ---------- ----------
Gross profit 199,275 179,844 391,646 352,231
---------- ---------- ---------- ----------
Selling and
administrative
expenses(a) 155,691 136,779 307,623 272,336
Depreciation and
amortization 26,594 21,175 52,393 41,703
Pre-opening expenses 1,525 2,280 2,326 4,884
---------- ---------- ---------- ----------
Operating profit 15,465 19,610 29,304 33,308
Interest expense, net (5,005) (6,289) (9,747) (12,039)
Equity in net loss of
barnesandnoble.com (6,532) (23,003) (18,076) (36,606)
Gain on formation of
barnesandnoble.com 25,000 25,000
Gain on the partial
sale of Chapters Inc. 10,975 10,975
---------- ---------- ---------- ----------
Earnings (loss) before
income taxes and
cumulative effect of
a change in
accounting principle 39,903 (9,682) 37,456 (15,337)
Income taxes 16,360 (3,973) 15,357 (6,293)
---------- ---------- ---------- ----------
Earnings (loss) before
cumulative effect of
a change in
accounting principle 23,543 (5,709) 22,099 (9,044)
Cumulative effect of a
change in accounting
principle, net of tax
benefit of $3,125 (4,500)
---------- ---------- ---------- ----------
Net earnings
(loss) $ 23,543 (5,709) 17,599 (9,044)
========== ========== ========== ==========
Earnings (loss) per
common share:
Basic
Earnings (loss)
before cumulative
effect of a change
in accounting
principle $ 0.34 (0.08) 0.32 (0.13)
Cumulative effect
of a change in
accounting
principle, net of
tax $ 0.00 0.00 (0.07) 0.00
Net earnings (loss) $ 0.34 (0.08) 0.25 (0.13)
Diluted
Earnings (loss)
before cumulative
effect of a change
in accounting
principle $ 0.33 (0.08) 0.31 (0.13)
Cumulative effect
of a change in
accounting
principle, net of
tax $ 0.00 0.00 (0.06) 0.00
Net earnings (loss) $ 0.33 (0.08) 0.25 (0.13)
Weighted average
common shares
outstanding
Basic 69,356,000 68,354,000 69,143,000 68,227,000
Diluted 71,826,000 68,354,000 71,928,000 68,227,000
Percentage of sales:
Sales 100.0% 100.0% 100.0% 100.0%
Cost of sales and
occupancy 72.6% 72.9% 72.9% 73.3%
---------- ---------- ---------- ----------
Gross profit 27.4% 27.1% 27.1% 26.7%
---------- ---------- ---------- ----------
Selling and
administrative
expenses 21.4% 20.6% 21.3% 20.6%
Depreciation and
amortization 3.7% 3.2% 3.6% 3.2%
Pre-opening expenses 0.2% 0.3% 0.2% 0.4%
---------- ---------- ---------- ----------
Operating profit 2.1% 3.0% 2.0% 2.5%
Interest expense, net -0.7% -0.9% -0.7% -0.9%
Equity in net loss of
barnesandnoble.com -0.9% -3.5% -1.3% -2.8%
Gain on formation of
barnesandnoble.com 3.4% 0.0% 1.7% 0.0%
Gain on the partial
sale of Chapters Inc. 1.5% 0.0% 0.8% 0.0%
---------- ---------- ---------- ----------
Earnings (loss)
before income taxes
and cumulative
effect of a change
in accounting principle 5.5% -1.5% 2.6% -1.2%
Income taxes 2.2% -0.6% 1.1% -0.5%
---------- ---------- ---------- ----------
Earnings (loss)
before cumulative
effect of a change
in accounting
principle 3.2% -0.9% 1.5% -0.7%
Cumulative effect of a
change in accounting
principle 0.0% 0.0% -0.3% 0.0%
---------- ---------- ---------- ----------
Net earnings (loss) 3.2% -0.9% 1.2% -0.7%
========== ========== ========== ==========
(a) Includes $5 million write-off of Ingram Book Group acquisition
costs in the 13 and 26 weeks ended July 31, 1999
BARNES & NOBLE, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(thousands of dollars, except per share data)
July 31, August 1, January 30,
1999 1998 1999
---------- ---------- ----------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 9,558 9,615 31,081
Receivables, net 54,069 38,738 57,523
Merchandise inventories 913,617 820,707 945,073
Prepaid expenses and other
current assets 76,543 81,609 54,634
---------- ---------- ----------
Total current assets 1,053,787 950,669 1,088,311
---------- ---------- ----------
Property and equipment:
Land and land improvements 3,247 3,197 3,197
Buildings and leasehold
improvements 394,192 359,703 383,292
Fixtures and equipment 489,763 387,063 440,488
---------- ---------- ----------
887,202 749,963 826,977
Less accumulated depreciation
and amortization 357,513 281,188 316,631
---------- ---------- ----------
Net property and equipment 529,689 468,775 510,346
---------- ---------- ----------
Intangible assets, net 85,364 88,609 86,980
Investment in barnesandnoble.com 264,502 35,213 82,307
Other noncurrent assets 48,791 42,235 39,653
---------- ---------- ----------
Total assets $1,982,133 1,585,501 1,807,597
========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 394,403 390,370 498,237
Accrued liabilities 210,376 194,220 274,085
---------- ---------- ----------
Total current liabilities 604,779 584,590 772,322
---------- ---------- ----------
Long-term debt 347,400 395,200 249,100
Deferred income taxes 119,898 -- 32,449
Other long-term liabilities 80,662 68,666 74,937
Shareholders' equity
Common stock; $.001 par value;
300,000,000 shares authorized;
69,390,807, 68,578,373 and
68,759,111 shares issued and
outstanding, respectively 69 69 69
Additional paid-in capital 651,918 483,193 523,517
Accumulated other comprehensive
income 4,605 -- --
Retained earnings 172,802 53,783 155,203
---------- ---------- ----------
Total shareholders' equity 829,394 537,045 678,789
---------- ---------- ----------
Commitments and contingencies -- -- --
---------- ---------- ----------
Total liabilities and
shareholders' equity $1,982,133 1,585,501 1,807,597
========== ========== ==========
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