Barnes & Noble Reports Comparable Store Sales Increase of 5.4 Percent For First Quarter.NEW YORK--(BUSINESS WIRE)--May 19, 1999-- Retail Net Earnings Meet Analysts' Forecasts barnesandnoble.com Sales Up 259 Percent in March Quarter Barnes Barnes, former municipal borough, SE England. See Richmond upon Thames. & 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 $718.3 million for the first quarter ended May 1, 1999, up 9.3 percent from $657.0 million last year. Barnes & Noble "super" store sales were $621.0 million, up 12.7 percent from $551.0 million in the first quarter of 1998, and accounted for 86 percent of total sales compared to 84 percent for the same period last year. Barnes & Noble "super" store comparable sales increased an industry-leading 5.4 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 flat. As previously announced, sales for barnesandnoble.com increased by 259 percent from the first quarter 1998 (ended March 31) to $32.3 million. Net earnings from the company's retail business increased 14.5 percent to $5.4 million or $0.08 per share in line with analysts' forecasts. The 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 loss for the quarter was ($5.9) million or ($0.09) per share which consisted of net earnings of $0.08 per share from the retail business, a loss of ($0.10) per share from the company's investment in barnesandnoble.com, and a required non-cash accounting charge of ($0.07) 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 13 percent to $282 million from $250 million during the prior year period. In addition, leverage continued to improve as total debt to retail EBITDA for the twelve months ended May 1, 1999 was 1.20, down from 1.43 for the comparable prior year period. "We are very pleased with our first quarter performance," 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 strong comparable store sales coupled with our surging surge v. surged, surg·ing, surg·es v.intr. 1. To rise and move in a billowing or swelling manner. 2. To roll or be tossed about on waves, as a boat. 3. internet business provide evidence that our customers are responding favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to our multi-channel See multichannel. strategy. We believe that online book sales are substantially accretive, and that our Web site serves to increase awareness of our franchise." As of May 1, 1999, the company operated 521 Barnes & Noble stores and 466 B. Dalton stores. During the first quarter, three Barnes & Noble stores were opened and two were closed. B. Dalton closed 23 stores in the first quarter. Accounting Change For the first quarter of 1999, the company was required to adopt SOP 98-5 (Reporting on the Costs of Start-Up Start-up The earliest stage of a new business venture. Activities) which resulted in a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charge of $4.5 million ($0.07) per share. This change in accounting principle required the company to 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. store pre-opening costs as incurred, as compared to the previous practice of amortizing such costs over the respective store's first twelve months of operation. This change is in line with analysts' forecasts. 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). 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 quickly has become one of the world's largest Web sites (ranked 30th) and is 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. retailer. Focused largely on the sale of books 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 A reciprocal understanding, contract, or agreement of any sort usually pertaining to the loan, sale, or exchange of property between two parties, one of whom wants to dispose of an item that the other wants to obtain. books discounted up to 91 percent, the most popular software and magazine titles, as well as gift items for every occasion. 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 finding the site easy, and its Express Lane 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 120,000 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 (Lycos, Inc., Waltham, MA, www.lycos.com) One of the major Web search and content sites on the Web. In 2000, Lycos and Terra Networks, S.A., the leading provider of content and Internet access to the Spanish and Portuguese markets, merged to become Terra 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  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. e-commerce with its unique Business Solutions program. 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. -0-
BARNES & NOBLE, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(thousands of dollars, except per share data)
May 1, May 2, January 30,
1999 1998 1999
-----------------------------------------
(unaudited)
ASSETS
Current assets:
Cash and cash
equivalents $ 15,815 10,801 31,081
Receivables, net 43,226 29,452 57,523
Merchandise inventories 940,321 855,938 945,073
Prepaid expenses and
other current assets 74,731 81,944 54,634
------- ------- ------
Total current assets 1,074,093 978,135 1,088,311
---------- -------- ---------
Property and equipment:
Land and land
improvements 3,247 681 3,197
Buildings and leasehold
improvements 389,296 352,083 383,292
Fixtures and equipment 462,936 361,663 440,488
-------- -------- -------
855,479 714,427 826,977
Less accumulated
depreciation and
amortization 339,756 261,649 316,631
-------- -------- -------
Net property and equipment 515,723 452,778 510,346
-------- -------- -------
Intangible assets, net 86,166 89,423 86,980
Investment in
barnesandnoble.com llc 70,763 34,060 82,307
Other noncurrent assets 50,646 40,607 39,653
------- ------- ------
Total assets $ 1,797,391 1,595,003 1,807,597
============ ========== =========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 439,520 429,832 498,237
Accrued liabilities 225,076 206,794 274,085
-------- -------- -------
Total current liabilities 664,596 636,626 772,322
-------- -------- -------
Long-term debt 340,000 358,600 249,100
Deferred income taxes 32,449 - 32,449
Other long-term liabilities 78,108 65,381 74,937
Shareholders' equity
Common stock; $.001 par value;
300,000,000 shares authorized;
69,092,730, 68,235,489 and
68,759,111 shares issued and
outstanding, respectively 69 68 69
Additional paid-in capital 532,910 474,836 523,517
Retained earnings 149,259 59,492 155,203
-------- ------- -------
Total shareholders' equity 682,238 534,396 678,789
-------- -------- -------
Commitments and contingencies - - -
-- -- --
Total liabilities and
shareholders' equity $ 1,797,391 1,595,003 1,807,597
============ ========== =========
BARNES & NOBLE, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(thousands of dollars, except per share data)
(unaudited)
13 Weeks Ended
-----------------------------
May 1, 1999 May 2, 1998
-------------- ------------
Sales $ 718,336 656,976
Cost of sales
and occupancy 525,965 484,589
-------- -------
Gross profit 192,371 172,387
-------- -------
Selling and
administrative expenses 151,932 135,557
Depreciation and
amortization 25,799 20,528
Pre-opening expenses 801 2,604
---- -----
Operating profit 13,839 13,698
Interest expense, net 4,742 5,750
Equity in net loss of
barnesandnoble.com llc 11,544 13,603
------- ------
Loss before benefit for
income taxes and cumulative
effect of a change in
accounting principle (2,447) (5,655)
Benefit for income taxes (1,003) (2,320)
------- -------
Loss before cumulative effect
of a change in accounting principle (1,444) (3,335)
Cumulative effect of a change in
accounting principle, net of tax
benefit of $3,125 (4,500) -
------- --
Net loss $ (5,944) (3,335)
========= =======
Loss per common share
Basic
Loss before cumulative effect
of a change in accounting principle $ (0.02) (0.05)
Cumulative effect of a change in
accounting principle, net of tax $ (0.07) -
Net loss $ (0.09) (0.05)
Diluted
Loss before cumulative effect
of a change in accounting principle $ (0.02) (0.05)
Cumulative effect of a change in
accounting principle, net of tax $ (0.07) -
Net loss $ (0.09) (0.05)
Weighted average common
shares outstanding
Basic 68,931,000 68,100,000
Diluted 68,931,000 68,100,000
Percentage of sales:
Sales 100.0% 100.0%
Cost of sales and occupancy 73.2% 73.8%
-------------- ------------
-------------- ------------
Gross profit 26.8% 26.2%
-------------- ------------
Selling and administrative expenses 21.2% 20.6%
Depreciation and amortization 3.6% 3.1%
Pre-opening expenses 0.1% 0.4%
-------------- ------------
Operating profit 1.9% 2.1%
Interest expense, net 0.7% 0.9%
Equity in net loss
barnesandnoble.com llc 1.6% 2.1%
-------------- ------------
Loss before benefit for income
taxes and cumulative effect of
a change in accounting principle -0.3% -0.9%
Benefit for income taxes -0.1% -0.4%
-------------- ------------
Loss before cumulative effect
of a change in accounting principle -0.2% -0.5%
Cumulative effect of a change
in accounting principle -0.6% 0.0%
-------------- ------------
Net loss -0.8% -0.5%
============== ============
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/. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion