BIRMINGHAM, Ala. (May 22, 2002) -- Books-A-Million, Inc. (Nasdaq/NM:BAMM) today announced financial results for the first quarter ended May 4, 2002. Net sales for the 13-week period increased 3.8% to $101.2 million from sales of $97.5 million in the year-earlier period. Comparable store sales for the quarter decreased 0.7% when compared with the 13-week period for the prior year. Comparable store sales for all book categories increased 3.1% for the quarter. Earnings before interest, taxes and depreciation for the first quarter decreased 3.0% to $4.3 million from $4.5 million in the year-earlier period. Net loss for the quarter was $366,000, or $0.02 per diluted share, compared with net loss of $415,000, or $0.02 per diluted share, in the year-earlier period.
Commenting on the results, Clyde B. Anderson, Chairman and Chief Executive Officer, said, "During the quarter, our book business continued to show a strong sales trend. Several categories, including fiction, diet and health, history and biography, had solid comparable sales increases. The decrease in non-book sales, driven by our decision to discontinue the sale of music in all stores and by the strong sales in the collector's category in the prior year, contributed to the decrease in total comparable store sales for the quarter."
Anderson continued, "As the summer selling season approaches, we look forward to building on the positive trends in our book business. New releases by Jan Karon, James Patterson, Mary Higgins Clark and the tenth book in the Left Behind series should be among the season's highlights. Our store remodel and reset program is proceeding as planned, and we anticipate completing 50 to 60 remodels and resets combined by the end of this fiscal year. In fiscal 2004, we expect to remodel or reset an additional 50 to 60 stores."
The Company expects to report a net loss of between $0.02 to $0.04 per diluted share for the second quarter of fiscal 2003 versus last year's loss of $0.04 per diluted share. Fiscal 2003 full-year earnings guidance remains in the range of $0.29 to $0.31 per diluted share versus last year's earnings of $0.24 per diluted share.
Books-A-Million is one of the nation's leading book retailers and sells on the Internet at www.booksamillion.com. The Company presently operates 204 stores in 18 states and the District of Columbia. The Company operates four distinct store formats, including large superstores operating under the names Books-A-Million and Books & Co., traditional bookstores and combination book and greeting card stores, both operating under the name Bookland, and Joe Muggs Newsstands. The Company's wholesale operations include American Wholesale Book Company and Book$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)
First Quarter Ended
----------------------
May 4, May 5,
2002 2001
--------- ---------
Net sales $ 101,176 $ 97,490
EBITDA 4,342 4,475
Operating income 344 598
Net loss $ (366) $ (415)
========= =========
Loss per share --Basic and Diluted $ (0.02) $ (0.02)
========= =========
Weighted average shares outstanding -- Basic
and Diluted 16,162 17,321
========= =========
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.
BOOKS-A-MILLION, INC.
Unaudited Consolidated Financial Highlights
(In thousands, except per share data)
First Quarter Ended
----------------------
May 4, May 5,
2002 2001
--------- ---------
Net sales $ 101,176 $ 97,490
Cost of sales (including warehouse,
distribution and store occupancy costs) 75,007 72,004
--------- ---------
GROSS PROFIT 26,169 25,486
Operating, selling and administrative
expenses 21,827 21,011
--------- ---------
EBITDA 4,342 4,475
Depreciation and amortization 3,998 3,877
--------- ---------
OPERATING INCOME 344 598
Interest expense, net 934 1,267
--------- ---------
LOSS BEFORE INCOME TAXES (590) (669)
Income tax benefit (224) (254)
--------- ---------
NET LOSS $ (366) $ (415)
========= =========
Loss per share -- Basic and Diluted $ (0.02) $ (0.02)
========= =========
Weighted average shares outstanding
-- Basic and Diluted 16,162 17,321
========= =========
Contact:
Richard S. Wallington
Chief Financial Officer
(205) 942-3737