Barnes & Noble Retail Business E.P.S. More Than Doubles in Third Quarter.NEW YORK--(BUSINESS WIRE)--November 19, 1998-- barnesandnoble.com Sales Up 330 Percent barnesandnoble.com Joint Venture with 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. Closes 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 world's largest bookseller, today announced 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: sales of $674.1 million for its third quarter ended October October: see month. 31, 1998, up 9.6% from $614.8 million a year ago. Barnes & Noble "super" store sales increased 10.9% to $554.0 million from $499.7 million and accounted for over 82% of consolidated sales. For the third quarter, Barnes & Noble stores comparable store sales increased 4.5%, while comparable store sales at 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. decreased (1%). Sales at barnesandnoble.com rose to $17.2 million, up 330% over the comparable period last year, and a 38% increase from the second quarter of 1998. The company's retail business reported a record third quarter operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $19.6 million, up 25.6% from last year's operating profit of $15.6 million. Retail net earnings more than doubled to $7.5 million, or $0.11 per share, compared to $0 .05 per share for the third quarter of 1997. Expanding gross margins due to the realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. of further distribution center efficiencies and continued leverage on occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy expenses combined with solid sales growth were the major drivers of the record third quarter operating results. barnesandnoble.com's operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the quarter was ($20.5) million, which resulted in a net loss of ($12.1) million or ($0.18) per share. On a consolidated basis, the company's loss for the quarter was ($4.6) million, or ($0.07) per share (based on 68.6 million shares). Inventories increased 12.7% to $1,056 million from $937 million last year. This increase is in line with the company's year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. 10.2% sales growth, the opening of 47 Barnes & Noble stores over the last twelve months, and the strategic increase in its distribution center standing inventory to over 750,000 titles. The inventory expansion allowed the company to increase its offering of titles for in-store customers' special orders to over one million titles which are available for rapid customer delivery. The increase in inventories was financed by a proportionate pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. increase in accounts payable. Debt levels, which rose $43 million, also supported the distribution center inventory expansion as well as capital expenditures for new store openings, and ongoing strategic initiatives including the company's significant investment in barnesandnoble.com. Strong cash flow from the company's retail business was the primary source of cash for all operating activities, capital expenditures and strategic investments. Through October 31, barnesandnoble.com had more than 930,000 customers in 177 countries, a 29% increase over the number of customers at the end of the second quarter. Sales from repeat customers were 51% of third quarter sales. The 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. continues to grow, with the number of sites at approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 37,000, including new affiliates such as Blue Mountain Arts, the number one shopping site on the World Wide Web, 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 Metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. , and Salon Salon, annual exhibition of art works chosen by jury and presented by the French Academy since 1737; it was originally held in the Salon d'Apollon of the Louvre. By the mid-19th cent. the Salon had become an expression of conservative, established tastes in art. Magazine, one of the Web's premiere content sites. barnesandnoble.com now offers 4.6 million titles, more than any other online bookseller. Its in-stock inventory now stands at over 750,000 titles, which are available for shipping within 24 hours. "Our record third quarter retail earnings were fueled by industry leading-comparable store sales and illustrate our ability to execute in this market sector," 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.. "We are pleased with the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. trends in barnesandnoble.com's sales growth, customer counts and increasing number of relationships with preeminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae affiliates. We are now the number three shopping site on the World Wide Web, according to Media Metrics." On November November: see month. 12, the company completed its previously announced joint venture with Bertelsmann A.G. for a 50% stake in barnesandnoble.com. Under the terms of the agreement, Bertelsmann is the sole source of $200 million in capital contributions to barnesandnoble.com. Barnes & Noble, Inc. contributed the net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. of barnesandnoble.com, and received cash proceeds of $75 million in the sale of a portion of its interest in barnesandnoble.com, which was used to repay outstanding debt. Barnes & Noble, Inc. expects to record a fourth quarter pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain of approximately $64 million (or $0.52 per share after tax) on the sale of that interest in barnesandnoble.com. Beginning in fiscal 1998's fourth quarter, Barnes & Noble, Inc. will report its proportionate (currently 50%) share of barnesandnoble.com's results as a single pre-tax line item on its Consolidated Statement of Operations See Income statement. , in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the equity method of accounting. As a result of this transaction, the strong cash flows generated from Barnes & Noble, Inc.'s retail business, which had been a source of funding for barnesandnoble.com, will be fully available to support additional strategic initiatives. Barnes & Noble, Inc. (NYSE: BKS) operates 504 Barnes & Noble bookstores and 507 B. Dalton bookstores. Barnes & Noble stores stock an authoritative selection of book titles and provide access to more than one million titles from Barnes & Noble's state-of-the-art distribution center. They offer books from more than 50,000 publisher imprints with an emphasis on small, independent publishers and university presses. Barnes & Noble is the world's largest bookseller on the World Wide Web (http://www.barnesandnoble.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 the Barnes & Noble 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.
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/.
BARNES & NOBLE, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(thousands of dollars, except per share data)
(unaudited)
13 Weeks Ended 39 Weeks Ended
-----------------------------------------------
October 31, November 1, October 31, November 1,
1998 1997 1998 1997
---------- ----------- ----------- -----------
Sales $ 674,073 614,831 2,015,426 1,828,310
Cost of sales and
occupancy 487,712 450,317 1,472,552 1,357,469
---------- ----------- ----------- -----------
Gross profit 186,361 164,514 542,874 470,841
Selling and administrative
expenses 160,525 131,691 470,691 383,581
Depreciation and
amortization 24,662 19,746 69,423 56,419
Pre-opening expenses 2,013 3,076 6,897 10,297
---------- ----------- ----------- -----------
Operating profit (loss) (839) 10,001 (4,137) 20,544
Interest expense, net 6,943 9,889 18,982 29,293
Provision (benefit) for
income taxes (3,186) 47 (9,479) (3,587)
---------- ----------- ----------- -----------
Net earnings (loss) $ (4,596) 65 (13,640) (5,162)
========== =========== =========== ===========
Net earnings (loss)
per common share:
Basic $ (0.07) 0.00 (0.20) (0.08)
Diluted $ (0.07) 0.00 (0.20) (0.08)
Weighted average common
shares outstanding:
Basic 68,597,000 67,789,000 68,351,000 67,017,000
Diluted 68,597,000 70,517,000 68,351,000 67,017,000
Percentage of sales:
Sales 100.0% 100.0% 100.0% 100.0%
Cost of sales and occupancy 72.4 73.2 73.1 74.2
---------- --------- ---------- ----------
Gross margin 27.6 26.8 26.9 25.8
---------- --------- ---------- ----------
Selling and administrative
expenses 23.8 21.4 23.4 21.0
Depreciation and amortization 3.6 3.2 3.4 3.1
Pre-opening expenses 0.3 0.5 0.3 0.6
---------- --------- ---------- ----------
Operating margin (0.1) 1.6 (0.2) 1.1
Interest expense, net 1.0 1.6 1.0 1.6
Provision (benefit)
for income taxes (0.4) 0.0 (0.5) (0.2)
----------- --------- ---------- ----------
Net earnings (loss) (0.7)% 0.0% (0.7)% (0.3)%
=========== ========= ========== ==========
Note: Certain reclassifications of prior year balances have been
made to conform to the 1998 presentation.
BARNES & NOBLE, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(thousands of dollars, except per share data)
October 31, 1998 November 1, 1997 January 31, 1998
(unaudited) (unaudited) (audited)
ASSETS
Current assets:
Cash and cash
equivalents $ 10,614 11,753 12,697
Receivables, net 66,168 63,501 43,858
Merchandise
inventories 1,056,443 936,923 852,107
Prepaid expenses and
other current assets 72,906 88,908 68,902
----------------------------------------------
Total current assets 1,206,131 1,101,085 977,564
----------------------------------------------
Property and equipment:
Land and land
improvements 3,197 681 681
Buildings and leasehold
improvements 371,323 341,562 347,598
Fixtures and equipment 454,769 345,927 378,058
----------------------------------------------
829,289 688,170 726,337
Less accumulated
depreciation and
amortization 304,782 230,067 244,207
----------------------------------------------
Net property and
equipment 524,507 458,103 482,130
----------------------------------------------
Intangible assets, net 87,795 91,052 90,237
Other noncurrent assets 40,824 59,391 41,240
===============================================
Total assets $1,859,257 1,709,631 1,591,171
===============================================
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 623,913 555,614 459,795
Accrued liabilities 182,011 218,160 253,050
-----------------------------------------------
Total current
liabilities 805,924 773,774 712,845
-----------------------------------------------
Long-term debt 447,900 405,200 284,800
Other long-term
liabilities 72,162 57,866 61,771
Shareholders' equity
Common stock; $.001 par
value; 300,000,000
shares authorized;
68,619,224,
67,875,339 and
67,921,830 shares
issued and outstanding,
respectively 69 68 68
Additional paid-in
capital 484,015 468,227 468,860
Retained earnings 49,187 4,496 62,827
----------------------------------------------
Total shareholders'
equity 533,271 472,791 531,755
----------------------------------------------
Commitments and
contingencies - - -
==============================================
Total liabilities and
shareholders'
equity $1,859,257 1,709,631 1,591,171
==============================================
BARNES & NOBLE, INC. AND SUBSIDIARIES
Selected Segment Information
(thousands of dollars, except per share data)
(unaudited)
13 Weeks Ended 39 Weeks Ended
---------------------------------------------------
October 31 November 1, October 31, November 1,
1998 1997 1998 1997
----------------------- -------------------------
Barnes & Noble
Retail Business
Sales $ 656,837 610,826 1,976,320 1,821,922
Operating profit $ 19,633 15,601 52,941 28,635
Earnings (loss)
per share $ 0.11 0.05 0.29 (0.01)
barnesandnoble.com
Sales $ 17,236 4,005 39,106 6,388
Operating loss $ (20,472) (5,600) (57,078) (8,091)
Loss per share $ (0.18) (0.05) (0.49) (0.07)
Consolidated Barnes
& Noble, Inc.
and Subsidiaries
Sales $ 674,073 614,831 2,015,426 1,828,310
Operating
profit (loss) $ (839) 10,001 (4,137) 20,544
Earnings (loss)
per share $ (0.07) 0.00 (0.20) (0.08)
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