BIRMINGHAM, Ala. (November 20, 2002) -- Books-A-Million, Inc. (Nasdaq/NM:BAMM) today announced financial results for the third quarter and nine months ended November 2, 2002. Net sales for the third quarter of fiscal 2003 decreased 0.6% to $97.2 million from $97.8 million in the year-earlier period. Comparable store sales for the quarter decreased 2.6%. Comparable book sales for all book categories increased 1.6% when compared with the same 13-week period last year. Earnings before interest, taxes and depreciation decreased 27.1% to $1.5 million for the third quarter of fiscal 2003 compared with $2.0 million in the year-earlier period. Net loss for the quarter was $2.4 million, or $0.15 per diluted share, compared with a net loss of $1.9 million, or $0.11 per diluted share, in the year-earlier period.
For the 39-week period ended November 2, 2002, net sales increased 1.2% to $303.0 million from sales of $299.3 million. Comparable store sales decreased 1.5% when compared with the same period of fiscal 2002. Comparable book sales for all book categories increased 1.6% when compared with the same 39-week period last year. Earnings before interest, taxes and depreciation for the year decreased 7.0% to $9.7 million from $10.5 million in the year-earlier period. For the 39-week period, the Company reported a net loss of $3.5 million, or $0.21 per diluted share, compared with a net loss of $3.0 million, or $0.18 per diluted share for the year-earlier period.
Commenting on the results, Clyde B. Anderson, Chairman and Chief Executive Officer, said, "Non-book categories continue to be softer than expected, resulting in lower overall comparable sales and the net loss for the quarter. However, book categories once again performed well during the quarter. The fiction category posted solid increases with titles by well-known authors such as Tom Clancy, Stephen King and Nicholas Sparks. The diet/health and children's categories were also strong during the quarter."
However, based on the anticipation of continued weakness in consumer demand, the Company continues to expect fourth quarter earnings to be lower than previously issued guidance. Since the Company is unable to quantify the impact at this time, no revised guidance is being provided.
Books-A-Million is one of the nation's leading book retailers and sells on the Internet at www.booksamillion.com. The Company presently operates 209 stores in 18 states and the District of Columbia. The Company operates four distinct store formats, including large superstores operating under the names Books-A-Million and Books & Co., traditional bookstores and combination book and greeting card stores, both operating under the name Bookland, and Joe Muggs Newsstands. The Company's wholesale operations include American Wholesale Book Company and Book$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)
Third Quarter Ended
----------------------
Nov. 2, Nov. 3,
2002 2001
--------- ---------
Net sales $ 97,194 $ 97,812
Earnings before interest, taxes and
depreciation 1,480 2,030
Operating loss (2,634) (1,878)
Net loss $ (2,423) $ (1,866)
========= =========
Loss per share - basic and diluted $ (0.15) $ (0.11)
========= =========
Weighted average number of shares outstanding:
Basic 16,200 16,417
========= =========
Diluted 16,200 16,417
========= =========
Thirty-Nine Weeks Ended
-----------------------
Nov. 2, Nov. 3,
2002 2001
--------- ---------
Net sales $ 303,039 $ 299,313
Earnings before interest, taxes and
depreciation 9,718 10,453
Operating loss (2,366) (1,228)
Net loss $ (3,456) $ (2,957)
========= =========
Loss per share - basic and diluted $ (0.21) $ (0.18)
========= =========
Weighted average number of shares outstanding:
Basic 16,187 16,837
========= =========
Diluted 16,187 16,837
========= =========
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 Thirty-nine Weeks Ended November 2, 2002
and November 3, 2001
(In thousands, except per share data)
(UNAUDITED)
13 Weeks Ended 39 Weeks Ended
---------------------- ----------------------
Nov. 2, Nov. 3, Nov. 2, Nov. 3,
2002 2001 2002 2001
--------- --------- --------- ---------
NET SALES $ 97,194 $ 97,812 $ 303,039 $ 299,313
Cost of sales
(including
warehouse,
distribution
and store
occupancy costs) 74,566 73,605 227,445 222,778
--------- --------- --------- ---------
GROSS PROFIT 22,628 24,207 75,594 76,535
Operating, selling
and
administrative
expenses 21,148 22,177 65,876 66,082
--------- --------- --------- ---------
EBITDA 1,480 2,030 9,718 10,453
Depreciation and
amortization 4,114 3,908 12,084 11,681
--------- --------- --------- ---------
OPERATING LOSS (2,634) (1,878) (2,366) (1,228)
Interest expense,
net 1,274 1,133 3,208 3,542
--------- --------- --------- ---------
LOSS BEFORE INCOME
TAXES (3,908) (3,011) (5,574) (4,770)
Income tax benefit (1,485) (1,145) (2,118) (1,813)
--------- --------- --------- ---------
NET LOSS $ (2,423) $ (1,866) $ (3,456) $ (2,957)
========= ========= ========= =========
Basic and diluted
loss per share $ (0.15) $ (0.11) $ (0.21) $ (0.18)
========= ========= ========= =========
Weighted average
shares outstanding:
basic and diluted 16,200 16,417 16,187 16,837
========= ========= ========= =========
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