Books-A-Million, Inc. Announces Preliminary Fourth Quarter Results.Business Editors BIRMINGHAM, Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--March 31, 2003 Books-A-Million, Inc. (Nasdaq/NM:BAMM BAMM British Association of Medical Managers BAMM Bay Area Model Mugging (now Impact Bay Area) BAMM Beta and Advection Model - Medium BAMM Bay Area Math Meet (San Francisco, CA) ) today announced preliminary financial results for the fourth quarter and fiscal year ended February 1, 2003. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the 13-week period were $139.6 million. Net income for the quarter was $6.1 million, or $0.37 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. For the 52-week period ended February 1, 2003, net sales were $442.7 million. Net income for the year was $2.7 million, or $0.16 per diluted share. These results are preliminary as the Company has decided to change the accounting treatment of its Millionaire's Club Card. Because the Company's previous independent auditors Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. have ceased operations, the Company will be required to re-audit and restate re·state tr.v. re·stat·ed, re·stat·ing, re·states To state again or in a new form. See Synonyms at repeat. re·state its fiscal 2001 and fiscal 2002 financial statements. Due to the pending re-audit, comparisons of fiscal 2003 results to prior periods are omitted from this press release. The Company will amortize amortize To write off gradually and systematically a given amount of money within a specific number of time periods. For example, an accountant amortizes the cost of a long-term asset by deducting a portion of that cost against income in each period. the revenue from its Millionaire's Club card based on the usage of the card over the 12-month life. Such revenue has previously been recorded when received. While the estimated impact of the change in accounting treatment is immaterial Not essential or necessary; not important or pertinent; not decisive; of no substantial consequence; without weight; of no material significance. immaterial adj. to the Company's financial condition and liquidity, the Company, with the concurrence CONCURRENCE, French law. The equality of rights, or privilege which several persons-have over the same thing; as, for example, the right which two judgment creditors, Whose judgments were rendered at the same time, have to be paid out of the proceeds of real estate bound by them. Dict. de Jur. h.t. of its new independent auditors, Deloitte & Touche LLP LLP - Lower Layer Protocol , has decided to restate fiscal 2001 and fiscal 2002 results to adjust for the change in accounting treatment as of the beginning of fiscal 2001. The cumulative after-tax reduction for all periods from 1991 to the beginning of fiscal 2001 will be reflected as an adjustment of approximately $885,000 to retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. on the balance sheet at the beginning of fiscal 2001. The after-tax reduction to earnings for fiscal 2001 and fiscal 2002 operating results is expected to be $44,000 and $60,000, respectively. The after-tax reduction to earnings for fiscal 2003 is expected to be $35,000 and has been reflected in the preliminary results for fiscal 2003 stated above. In addition, results for fiscal 2003 may be affected by the adoption of Emerging Issues Task Force ("EITF EITF Emerging Issues Task Force EITF Edinburgh International Television Festival EITF Europe International Taekwon-Do Federation ") No. 02-16, Accounting by a Customer (including a reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. ) for Certain Consideration Received from a Vendor. The EITF is a body of the Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). (FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). ). In its March 20, 2003 meeting, the EITF provided companies the option of adopting certain provisions of EITF No. 02-16 as a cumulative effect of a change in accounting principle or applying EITF 02-16 prospectively to applicable new vendor arrangements entered into or modified after January 1, 2003. If the Company chooses to adopt EITF No. 02-16 as a cumulative effect of a change in accounting principle, the after-tax reduction to earnings for fiscal 2003 is expected to be in the range of $900,000 to $1.3 million, or $0.05 to $0.08 per diluted share. Commenting on the quarterly results, Clyde B. Anderson, Chairman and Chief Executive Officer, said, "Sales in the book categories were impacted by several factors, including a weakened economy, difficult sales in our children's categories and the poor performance of some best selling authors. Categories that performed well during the quarter were Diet and Health, Entertainment and the Collectors category, led by strong sales of Yu-Gi-Oh trading cards." Anderson continued, "We are disappointed with our earnings results. During the quarter, however, we were able to counter the weaker-than-expected sales with strong expense control measures. In addition, our balance sheet continues to reflect the long-term strength of the Company." The Company anticipates it will release audited financial results in May and will host a conference call at that time to discuss the results. While the Company believes there will be no further material impact on the financial results for the past three years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time re-audit of fiscal 2001 and fiscal 2002 may result in additional changes that may have a material effect on its fiscal 2001 and 2002 financial statements, as well as its fiscal 2003 financial results.
BOOKS-A-MILLION, INC.
Unaudited Consolidated Financial Highlights
(In thousands, except per share data)
13 Weeks
Ended
February 1,
2003
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Net sales $139,615
Earnings before interest, taxes and depreciation 15,097
Operating income 10,850
Net income $ 6,130
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Earnings per share - basic $ 0.38
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Earnings per share - diluted $ 0.37
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Weighted average number of shares outstanding:
Basic 16,201
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Diluted 16,432
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52 Weeks
Ended
February 1,
2003
----------
Net sales $442,654
Earnings before interest, taxes and depreciation 24,815
Operating income 8,484
Net income $ 2,674
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Earnings per share - basic $ 0.17
========
Earnings per share - diluted $ 0.16
========
Weighted average number of shares outstanding:
Basic 16,191
========
Diluted 16,566
========
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. Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This document contains certain 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. within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. A number of factors could cause actual results, performance, achievements of the Company, or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, changes to the Company's fiscal 2001, 2002 and 2003 financial statements as a result of the re-audit in addition to those currently contemplated with respect to the Millionaires Club Card, which additional changes could be material to the Company's financial condition, results of operations or liquidity for annual and quarterly periods; unexpected effects of the re-audit on the Company's financial position, results of operations or liquidity; (negative reactions in the marketplace (and from our lenders and creditors) from the delay in issuing our financial statements as a result of the re-audit); the competitive environment in the book retail industry in general and in the Company's specific market area; inflation; economic conditions in general and in the Company's specific market areas; the number of store openings and closings; the profitability of certain product lines, capital expenditures and future liquidity; liability and other claims asserted against the Company; uncertainties related to the Internet and the Company's Internet initiative. In addition, such forward-looking statements are necessarily dependent upon assumptions, estimates and dates that may be incorrect or imprecise im·pre·cise adj. Not precise. im  pre·cise ly adv. and involve known
and unknown risks, uncertainties and other factors. Accordingly, any
forward-looking statements included herein do not purport To convey, imply, or profess; to have an appearance or effect.The purport of an instrument generally refers to its facial appearance or import, as distinguished from the tenor of an instrument, which means an exact copy or duplicate. PURPORT, pleading. to be predictions of future events or circumstances and may not be realized. Given these uncertainties, shareholders and prospective investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligations to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments. |
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