BIRMINGHAM, Ala. (March 16, 2004) -- Books-A-Million, Inc. (Nasdaq/NM:BAMM) today announced financial results for the fourth quarter and fiscal year ended January 31, 2004.
Net sales for the 13-week period ended January 31, 2004, increased 5.6% to $145.8 million from sales of $138.1 million for the 13-week period ended February 1, 2003. Comparable store sales for the quarter increased 4.9%. Net income for the quarter was $7.6 million, or $0.45 per diluted share, compared with net income of $5.9 million, or $0.36 per diluted share, in the year-earlier period.
For the 52-week period ended January 31, 2004, net sales increased 5.0% to $460.2 million, compared with $438.2 million in the prior year. Comparable store sales increased 3.3% versus the same 52-week period of the prior year. For fiscal 2004, the Company reported net income of $7.2 million, or $0.43 per diluted share, compared with $1.4 million (after the cumulative effect of a change in accounting principle of $1.2 million) for fiscal 2003, or $0.08 per diluted share. Fiscal 2003 net income before the cumulative effect of an accounting change was $2.6 million, or $0.16 per diluted share.
Commenting on the results, Sandra B. Cochran, Chief Executive Officer and President, said, "We are pleased with our results for the fourth quarter and the year. We posted positive comparable store sales and were able to achieve these results without costly promotional efforts. We also maintained good expense controls and inventory management that led to a dramatic improvement in profitability and reduced debt levels for the year. Blockbuster bestsellers contributed to a strong after-Christmas selling season with titles such as The Purpose Driven Life, The South Beach Diet and The Da Vinci Code driving traffic into stores in January."
The Company is projecting net income for fiscal 2005 in the range of $0.49 to $0.51 per diluted share versus the fiscal 2004 net income of $0.43 per diluted share. Net income for the first quarter of fiscal 2005 is expected to be in the range of $0.01 to $0.03 per diluted share versus last year's net loss of $0.06 per diluted share.
Due to the impact of Harry Potter and the strong title line-up from last fall, earnings for the second and third quarters of fiscal 2005 are expected to decrease when compared with fiscal 2004. However, higher earnings are anticipated in the fourth quarter of fiscal 2005 compared with the same period last year.
Books-A-Million is one of the nation's leading book retailers and sells on the Internet at www.booksamillion.com. The Company presently operates 202 stores in 18 states and the District of Columbia. The Company operates four distinct store formats, including large superstores operating under the names Books-A-Million and Books & Co., traditional bookstores operating under the names Books-A-Million and Bookland, and Joe Muggs Newsstands. The Company's wholesale operations include American Wholesale Book Company and Book$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)
13 Weeks Ended 52 Weeks Ended
---------------------- ----------------------
Jan. 31, Feb. 1, Jan. 31, Feb. 1,
2004 2003 2004 2003
--------- --------- --------- ---------
NET SALES $ 145,849 $ 138,112 $ 460,159 $ 438,215
Cost of sales
(including
warehouse,
distribution and
store occupancy
costs) 102,551 98,688 334,697 320,704
--------- --------- --------- ---------
GROSS PROFIT 43,298 39,424 125,462 117,511
Operating, selling
and administrative
expenses 26,476 24,330 94,530 92,178
Depreciation and
amortization 3,934 4,185 15,712 16,048
--------- --------- --------- ---------
OPERATING INCOME 12,888 10,909 15,220 9,285
Interest expense,
net 445 963 2,909 4,171
--------- --------- --------- ---------
INCOME FROM
CONTINUING
OPERATIONS BEFORE
INCOME TAXES AND
CUMULATIVE EFFECT
OF CHANGE IN
ACCOUNTING
PRINCIPLE 12,443 9,946 12,311 5,114
Income tax provision 4,728 3,780 4,678 1,943
--------- --------- --------- ---------
INCOME FROM
CONTINUING
OPERATIONS BEFORE
CUMULATIVE EFFECT
OF A CHANGE IN
ACCOUNTING
PRINCIPLE 7,715 6,166 7,633 3,171
DISCONTINUED
OPERATIONS:
Loss from
discontinued
operations
(including
impairment charges) (125) (440) (696) (917)
Income tax benefit 47 167 264 348
--------- --------- --------- ---------
LOSS FROM
DISCONTINUED
OPERATIONS (78) (273) (432) (569)
--------- --------- --------- ---------
INCOME BEFORE
CUMULATIVE
EFFECT OF A
CHANGE IN
ACCOUNTING
PRINCIPLE 7,637 5,893 7,201 2,602
Cumulative effect
of a change in
accounting
principle, net of
income taxes -- -- -- (1,201)
--------- --------- --------- ---------
NET INCOME $ 7,637 $ 5,893 $ 7,201 $ 1,401
========= ========= ========= =========
NET INCOME PER
COMMON SHARE:
Basic:
Income from
continuing
operations before
cumulative effect
of a change in
accounting
principle $ 0.47 $ 0.38 $ 0.47 $ 0.20
Loss from
discontinued
operations (0.00) (0.02) (0.03) (0.04)
--------- --------- --------- ---------
Income before
cumulative
effect of a
change in
accounting
principle 0.47 0.36 0.44 0.16
Cumulative effect
of a change in
accounting
principle 0.00 0.00 0.00 (0.07)
--------- --------- --------- ---------
Net income $ 0.47 $ 0.36 $ 0.44 $ 0.09
========= ========= ========= =========
Diluted:
Income from
continuing
operations before
cumulative effect
of a change in
accounting
principle $ 0.45 $ 0.38 $ 0.45 $ 0.19
Loss from
discontinued
operations (0.00) (0.02) (0.02) (0.03)
--------- --------- --------- ---------
Income before
cumulative
effect of a
change in
accounting
principle 0.45 0.36 0.43 0.16
Cumulative effect
of a change in
accounting
principle 0.00 0.00 0.00 (0.08)
--------- --------- --------- ---------
Net income $ 0.45 $ 0.36 $ 0.43 $ 0.08
========= ========= ========= =========
Weighted average
shares outstanding:
Basic 16,371 16,201 16,279 16,190
========= ========= ========= =========
Diluted 17,132 16,432 16,789 16,566
========= ========= ========= =========
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.