BIRMINGHAM, Ala. (August 21, 2002) -- Books-A-Million, Inc. (Nasdaq/NM:BAMM) today announced financial results for the second quarter ended August 3, 2002. Net sales for the second quarter of fiscal 2003 increased 0.6% to $104.7 million from $104.0 million in the year-earlier period. Comparable store sales for the quarter decreased 1.2%. Comparable store sales for all book categories increased 0.3% when compared with the same 13-week period last year. Earnings before interest, taxes and depreciation for the second quarter decreased 1.3% to $3.9 million from $4.0 million in the year-earlier period. Net loss for the quarter was $667,000, or $0.04 per diluted share, compared with a net loss of $676,000, or $0.04 per diluted share, in the year-earlier period.
For the 26-week period ended August 3, 2002, net sales increased 2.2% to $205.8 million from sales of $201.5 million for the 26-week period ended August 4, 2001. Comparable store sales decreased 1.0% when compared with the same period of fiscal 2002. Comparable store sales for all book categories increased 1.6% versus the same period of last year. Earnings before interest, taxes and depreciation for the year decreased 2.2% to $8.2 million compared with $8.4 million for the same period of fiscal 2002. For the 26-week period of fiscal 2003, the Company reported net loss of $1.0 million, or $0.06 per diluted share, compared with a net loss of $1.1 million, or $0.06 per diluted share for the year-earlier period.
Commenting on the results, Clyde B. Anderson, Chairman and Chief Executive Officer, said, "Sales were softer overall than we anticipated during the second quarter. However, we did have several sales highlights as a number of book categories, our magazine department and the Joe Muggs cafes performed well during the quarter. Fiction, social science, entertainment and our Kids-A-Million children's department were among the strongest sales categories.
"Our store remodel program is progressing well." Anderson continued. "We have completed 26 stores so far this year and are on target to complete a total of 50 to 60 during this fiscal year. We are pleased with the progress the completed stores have shown, as their overall performance is outpacing the chain."
The Company is projecting a net loss in the range of $0.11 to $0.09 per diluted share for the third quarter of fiscal 2003 versus last year's loss of $0.11 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 $0.24 per diluted share.
Books-A-Million is one of the nation's leading book retailers and sells on the Internet at www.booksamillion.com. The Company presently operates 205 stores in 18 states and the District of Columbia. The Company operates four distinct store formats, including large superstores operating under the names Books-A-Million and Books & Co., traditional bookstores and combination book and greeting card stores, both operating under the name Bookland, and Joe Muggs Newsstands. The Company's wholesale operations include American Wholesale Book Company and Book$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 3, August 4,
2002 2001
--------- ---------
Net sales $ 104,669 $ 104,011
Earnings before interest, taxes and
depreciation 3,896 3,948
Operating income (loss) (76) 52
Net loss $ (667) $ (676)
========= =========
Loss per share - basic and diluted $ (0.04) $ (0.04)
========= =========
Weighted average number of shares
outstanding:
Basic 16,199 16,773
========= =========
Diluted 16,199 16,773
========= =========
Twenty-six Weeks Ended
August 3, August 4,
2002 2001
--------- ---------
Net sales $ 205,845 $ 201,501
Earnings before interest, taxes and
depreciation 8,238 8,423
Operating income 268 650
Net loss $ (1,033) $ (1,091)
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Loss per share - basic and diluted $ (0.06) $ (0.06)
========= =========
Weighted average number of shares
outstanding:
Basic 16,181 17,047
========= =========
Diluted 16,181 17,047
========= =========
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.
Consolidated Statements of Income
For Thirteen and Twenty-six Weeks Ended
August 3, 2002 and August 4, 2001
(In thousands, except per share data)
(UNAUDITED)
13 Weeks Ended 26 Weeks Ended
---------------------- ----------------------
August 3, August 4, August 3, August 4,
2002 2001 2002 2001
--------- --------- --------- ---------
NET SALES $ 104,669 $ 104,011 $ 205,845 $ 201,501
Cost of sales
(including warehouse,
distribution and
store occupancy
costs) 77,872 77,169 152,879 149,173
--------- --------- --------- ---------
GROSS PROFIT 26,797 26,842 52,966 52,328
Operating, selling
and administrative
expenses 22,901 22,894 44,728 43,905
--------- --------- --------- ---------
EBITDA 3,896 3,948 8,238 8,423
Depreciation and
amortization 3,972 3,896 7,970 7,773
--------- --------- --------- ---------
OPERATING INCOME
(LOSS) (76) 52 268 650
Interest expense,
net 1,000 1,142 1,934 2,409
--------- --------- --------- ---------
LOSS BEFORE INCOME
TAXES (1,076) (1,090) (1,666) (1,759)
Income tax benefit (409) (414) (633) (668)
--------- --------- --------- ---------
NET LOSS $ (667) $ (676) $ (1,033) $ (1,091)
========= ========= ========= =========
Basic and diluted
loss per share $ (0.04) $ (0.04) $ (0.06) $ (0.06)
========= ========= ========= =========
Weighted average
shares outstanding
-- basic and
diluted 16,199 16,773 16,181 17,047
========= ========= ========= =========
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