BIRMINGHAM, Ala. (August 21, 2001) -- Books-A-Million, Inc. (Nasdaq/NM:BAMM) today announced financial results for the second quarter ended August 4, 2001. Net sales for the second quarter of fiscal 2002 increased 11.1% to $104.0 million from $93.6 million in the year-earlier period. Comparable store sales for the quarter decreased 1.5%. Excluding the effects of Pokemon sales, comparable store sales increased 1.6% for the quarter. Earnings before interest, taxes and depreciation for the second quarter decreased 1.2% to $3.9 million from $4.0 million in the year-earlier period. Net loss for the quarter was $676,000, or $0.04 per diluted share, compared with a net loss of $568,000, or $0.03 per diluted share, in the year-earlier period.
For the 26-week period ended August 4, 2001, net sales increased 7.9% to $201.5 million from sales of $186.7 million for the 26-week period ended July 29, 2000. Comparable store sales decreased 4.2% when compared with the same period of fiscal 2001. Excluding the effects of Pokemon sales, comparable store sales increased 1.0% for the period. Earnings before interest, taxes and depreciation for the year decreased 10.7% to $8.4 million compared with $9.4 million for the same period of fiscal 2001. For the 26-week period, the Company reported a net loss of $1.1 million, or $0.06 per diluted share, compared with a net loss of $97,000, or $0.01 per diluted share for the year-earlier period.
Commenting on the results, Clyde B. Anderson, Chairman and Chief Executive Officer, said, "We are very pleased that, for the first time in four quarters, we are reporting positive comparable store sales when the effect of Pokemon is excluded. The improved comparable store sales trends in our core book business continued in the second quarter. Several categories performed well, including history, humor and literature. The strong demand for religious books also continued, led by sales of The Prayer of Jabez and Secrets of the Vine in the Breakthrough series. Booksamillion.com sales growth also remained strong, and we continue to see margin improvement in this segment of our business."
Anderson continued, "During the quarter we made substantial progress toward converting the Crown stores in Washington and Chicago to the Books-A-Million format. We plan grand opening events in both cities during the third quarter. In addition, we opened two new Joe Muggs Newsstands, including a new prototype store at the Summit Retail Center in Birmingham, Alabama."
The Company anticipates that the impact of sales of Pokemon merchandise in the prior year on comparable store sales trends will lessen in the second half of fiscal 2002. The Company is projecting a net loss for the third quarter in the range of $0.11 to $0.09 per diluted share versus a net loss of $0.09 per diluted share in the prior-year period. The Company expects net earnings for the fourth quarter to be in the range of $0.36 to $0.40 per diluted share versus net earnings of $0.27 per diluted share for the year-earlier period.
Books-A-Million is one of the nation's leading book retailers and sells on the Internet at www.booksamillion.com. The Company presently operates 202 stores in 18 states and the District of Columbia. The Company operates four distinct store formats, including large superstores operating under the names Books-A-Million and Books & Co., traditional bookstores and combination book and greeting card stores, both operating under the name Bookland, and Joe Muggs Newsstands. The Company's wholesale operations include American Wholesale Book Company and Book$mart, both based in Florence, Alabama. NetCentral, Inc., an Internet development and service Company is located in Nashville, Tennessee.
BOOKS-A-MILLION, INC.
Unaudited Consolidated Financial Highlights
(In thousands, except per share data)
Second Quarter Ended
August 4, July 29,
2001 2000
--------- ---------
Net sales $ 104,011 $ 93,629
Earnings before interest, taxes and
depreciation 3,948 3,994
Operating income 52 342
Net loss $ (676) $ (568)
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Loss per share - basic and diluted $ (0.04) $ (0.03)
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Weighted average number of shares outstanding:
Basic 16,773 18,010
Diluted 16,773 18,010
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Twenty-six Weeks Ended
August 4, July 29,
2001 2000
--------- ---------
Net sales $ 201,501 $ 186,728
Earnings before interest, taxes and
depreciation 8,423 9,437
Operating income 650 2,135
Net loss $ (1,091) $ (97)
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Loss per share - basic and diluted $ (0.06) $ (0.01)
========= =========
Weighted average number of shares
outstanding:
Basic 17,047 18,008
Diluted 17,047 18,008
========= =========
Safe Harbor Statement Under the Private Securities Litigation
Reform
Act of 1995:
This document contains certain forward-looking statements
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, 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
and involve known and unknown risks, uncertainties and other
factors.
Accordingly, any forward-looking statements included herein do
not
purport 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.
Richard S. Wallington
Chief Financial Officer
(205) 942-3737