Borders Group Reports Record 2001 Sales; 2002 Outlook Points to 12% Consolidated Annual Earnings Growth and Q1 EPS Of Approximately 3 to 4 Cents per Share.Business Editors ANN ARBOR Ann Arbor, city (1990 pop. 109,592), seat of Washtenaw co., S Mich., on the Huron River; inc. 1851. It is a research and educational center, with a large number of government and industrial research and development firms, many in high-technology fields such as , Mich.--(BUSINESS WIRE)--Jan. 31, 2002 Borders Group (NYSE NYSE See: New York Stock Exchange :BGP (Border Gateway Protocol) The routing protocol that is used to span autonomous systems on the Internet. It is a robust, sophisticated and scalable protocol that was developed by the Internet Engineering Task Force (IETF). ) today reported record sales for the fourth quarter and fiscal 2001, which ended Jan. 27. Consolidated sales, which include Borders domestic superstores This is a list of superstores by country. Multi-national
Sales at Borders stores were $741.7 million for the fourth quarter and $2.23 billion for the full year. At Waldenbooks, sales for the fourth quarter were $375.3 million and $901.5 million for the full year. Sales within the company's International operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. for the fourth quarter were $86.8 million and $251.7 million for the full year. Consolidated sales increased by 5.6% for the comparable fourth quarter period and by 5.1% for the comparable full year. Borders' sales were up 6.8% for the comparable fourth quarter period and 7.6% for the comparable full year. Waldenbooks' sales were up 0.2% for the comparable fourth quarter period and down 3.1% for the comparable full year. The company's International operations increased sales by 22.6% for the comparable fourth quarter period and 15.9% for the comparable full year. All of these percent changes exclude the extra week present in fiscal 2000. Comparable store sales in Borders stores for the fourth quarter were 3.3% and 2.0% for the full year. Comparable store sales at Waldenbooks in the fourth quarter were 1.9% and -1.6% for the full year. The company now projects earnings per share at the upper end of the guidance range issued Jan. 10. Excluding one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. items, Borders Group expects earnings per share of $1.33 to $1.34 for the fourth quarter of 2001 and $1.31 to $1.32 for the full year. Management anticipates that fourth quarter profits will be up over last year in all business segments. "Through the focus and dedication of our team enterprise wide, we drove record sales and improved profits. Borders Group was particularly successful with focused marketing and promotional efforts, as well as the successful application of category management techniques," said Borders Group President and Chief Executive Officer Greg GREG Great Egg Harbor National Scenic and Recreational River (US National Park Service) Josefowicz. "Both were effective at generating customer traffic and increasing average transaction size. As we move into 2002, these programs will continue to provide the foundation for further sales and earnings growth." The company's projected results are exclusive of one-time items. Borders Group expects one-time items in the fourth quarter to include an 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. gain of approximately $2 million related to the property loss of the Borders World Trade Center location. The company also expects to record an after-tax fourth quarter charge of approximately $3.5 million to impair im·pair tr.v. im·paired, im·pair·ing, im·pairs To cause to diminish, as in strength, value, or quality: an injury that impaired my hearing; a severe storm impairing communications. certain under-performing Waldenbooks stores 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 FASB Statement FASB Statement A standard set by the Financial Accounting Standards Board regarding a financial accounting and reporting method. Essentially, FASB statements determine the acceptable accounting practices that Certified Public Accountants use in reporting No. 121. As previously reported, Borders Group took a first quarter 2001 after-tax charge of $18.1 million primarily related to its alliance with Ingram
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Borders Group expects to report record cash flow in 2001 resulting from the strong fourth quarter, improved management of working capital and disciplined capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. . Management estimates having net cash on hand at year end of approximately $65 million. This compares to net debt of $100 million a year ago. Q1 2002 Outlook Borders Group anticipates achieving first quarter 2002 earnings per share in the range of 3 to 4 cents, which compares to the one penny per share -- exclusive of one-time items -- earned in the first quarter of 2001. Comparable store sales for Borders are projected to be approximately 2% for the first quarter. Waldenbooks is expected to generate comparable store sales of approximately -2% for the period and total International sales growth is expected to be approximately 20% to 25% for the quarter. Full Year 2002 Outlook Borders Group projects earnings per share in the range of $1.44 to $1.48 for the full year including an approximate 3-cent benefit from a change in accounting for goodwill. This range represents an increase of approximately 12% over fiscal 2001. Comparable store sales at Borders superstores in 2002 are expected to be approximately 3%. Waldenbooks is anticipated to generate -2% comparable store sales for the year. The International segment is expected to increase total sales by approximately 20% for the year. Borders Group projects it will generate a profit in all four quarters of 2002. Management anticipates full-year profit growth of approximately 20% at Borders superstores. Borders Group projects a 40% to 50% reduction in the net loss within its International segment as the company moves toward its goal of achieving full-year profitability in fiscal 2003. Waldenbooks' profit is expected to decline by approximately 10%. Borders Group will issue final fourth quarter and full-year 2001 results after market close March 14. About Borders Group Borders Group, Inc., (NYSE: BGP) is a leading global retailer of books, music, video and other information [pilcrow (paragraph sign)] and entertainment items with stores in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , United Kingdom, Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. , Singapore, and the commonwealth of Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. . A FORTUNE 500 company headquartered in Ann Arbor, Mich., Borders Group employs 32,000 worldwide and operates over 360 Borders domestic superstores, 22 international Borders stores, 36 Books etc. locations and approximately 825 Waldenbooks stores. Teamed with Amazon.com, the company also offers online shopping through Borders.com (www.borders.com). More detailed information for journalists is available at www.bgimediacenter.com. Financial data is hosted on www.bordersgroupinc.com and information on Borders stores is available through www.bordersstores.com. 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 This release contains 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 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. One can identify these forward-looking statements by the use of words such as "expects," "anticipates," "guidance," "projects," "will," estimates," "points to," "goal" and other words of similar meaning. One can also identify them by the fact that they do not relate strictly to historical or current facts. These statements are likely to address matters such as the company's future financial performance (including sales and earnings guidance). These statements are subject to risks and uncertainties that could cause actual results and plans to differ materially from those included in the company's forward-looking statements. These risks and uncertainties include, but are not limited to, consumer demand for the company's products, particularly during the holiday season, which is believed to be related to general economic conditions, weather and other factors; an unexpected increase in competition; the continued availability of adequate capital to fund the company's operations; the timing and amount of insurance recoveries relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the former Borders store at the World Trade Center; higher than anticipated interest costs; energy shortages or higher than anticipated energy costs; unanticipated adverse litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. expenses or results; unanticipated work stoppages or increased labor costs; higher than anticipated merchandise or occupancy costs Occupancy costs are the whole life costs of buildings and their associated land from occupancy until disposal. These costs may be incurred on a regular or irregular basis. Occupancy costs are those costs related to occupying a space including; rent, real estate taxes, personal ; the performance of the company's strategic initiatives, including international expansion; the stability and capacity of the company's information systems; and changes in foreign currency exchange rates. Exhibit 99.1 to the company's Form 10-Q Form 10-Q See 10-Q. Report for the quarter ended Oct. 28, 2001 filed with the Securities and Exchange Commission sets forth a more detailed discussion of these and other risk factors that could cause actual results and plans to differ materially from those included in the forward-looking statements, and that discussion is incorporated herein by reference. The company does not undertake any obligation to update forward-looking statements. Note: A table recapping sales data is below.
Borders Group, Inc. Financial Statements
(dollars in millions)
Unaudited Sales Summary
13 Weeks 14 Weeks
Ended Ended
January 27, January 28, 13-Week %
2002 2001 % Change(a) Change(b)
---------- ---------- ---------- ---------
Borders(c) $ 741.7 $ 729.8 6.8% 1.6%
Waldenbooks 375.3 388.8 0.2% -3.5%
International 86.8 73.5 22.6% 18.1%
---------- ---------- ---------- ---------
Total sales $ 1,203.8 $ 1,192.1 5.6% 1.0%
========== ========== ========== =========
Comparable Store Sales
Borders 3.3% 1.8%
Waldenbooks 1.9% (3.7%)
52 Weeks 53 Weeks
Ended Ended
January 27, January 28, 52-Week %
2002 2001 % Change(a) Change(b)
---------- ---------- ---------- ---------
Borders(c) $ 2,234.1 $ 2,107.7 7.6% 6.0%
Waldenbooks 901.5 944.3 -3.1% -4.5%
International 251.7 219.2 15.9% 14.8%
---------- ---------- ---------- ---------
Total sales $ 3,387.3 $ 3,271.2 5.1% 3.5%
========== ========== ========== =========
Comparable Store Sales
Borders 2.0% 2.3%
Waldenbooks (1.6%) (2.9%)
(a) 13-week % change excludes the first week of Q4 2000. 52-week %
change excludes the first week of fiscal 2000.
(b) Quarterly and annual % changes include the additional week in
2000.
(c) As of Aug. 1, 2001, no sales from Borders.com. As of Sept. 11,
2001, no sales from World Trade Center location.
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