For the 26-week period ended July 31, 2004, net sales increased 5.2% to $222.6 million from sales of $211.6 million in the year-earlier period. Comparable store sales increased 3.3% when compared with the same period of fiscal 2004. For the 26-week period, the Company reported net income of $2.2 million, or $0.13 per diluted share, compared with net income of $319,000, or $0.02 per diluted share for the year-earlier period.
Commenting on the results, Sandra B. Cochran, President and Chief Executive Officer, said, "We are very pleased with our results for the quarter. Our sales were better than expected despite the difficult comparison to last year due to the success of Harry Potter and the Order of the Phoenix. We were able to exceed our internal projections and achieve flat comparable store sales. Strong sales of Bill Clinton's memoir, My Life, an aggressive promotional plan, and continued strong trends in our cafe business contributed to the good results."
The Company expects to report a net loss of $0.04 to $0.06 per diluted share for the third quarter of fiscal 2005 versus last year's net loss of $0.05 per diluted share. The Company is increasing fiscal 2005 full-year guidance by $0.05 per share to earnings of $0.57 to $0.59 per diluted share versus last year's earnings of $0.43 per diluted share.
Books-A-Million is one of the nation's leading book retailers and sells on the Internet at www.booksamillion.com. The Company presently operates 202 stores in 18 states and the District of Columbia. The Company operates four distinct store formats, including large superstores operating under the names Books-A-Million and Books & Co., traditional bookstores operating under the names Books-A-Million and Bookland, and Joe Muggs Newsstands. The Company's wholesale operations include American Wholesale Book Company and Book$mart, both based in Florence, Alabama.
BOOKS-A-MILLION, INC.
Unaudited Consolidated Statements of Income
(In thousands, except per share data)
13 Weeks Ended 26 Weeks Ended
------------------- -------------------
July 31, August 2, July 31, August 2,
2004 2003 2004 2003
-------- -------- -------- --------
NET SALES $114,065 $113,081 $222,580 $211,586
Cost of sales (including
warehouse, distribution
and store occupancy
costs) 83,618 82,269 162,449 155,837
-------- -------- -------- --------
GROSS PROFIT 30,447 30,812 60,131 55,749
Operating, selling
and administrative
expenses 24,736 23,661 47,919 45,237
Depreciation and
amortization 3,658 3,916 7,649 7,951
-------- -------- -------- --------
OPERATING INCOME 2,053 3,235 4,563 2,561
Interest expense, net 487 848 1,005 1,717
-------- -------- -------- --------
INCOME FROM CONTINUING
OPERATIONS BEFORE
INCOME TAXES 1,566 2,387 3,558 844
Income tax provision 560 905 1,317 318
-------- -------- -------- --------
INCOME FROM CONTINUING
OPERATIONS 1,006 1,482 2,241 526
DISCONTINUED OPERATIONS:
Loss from discontinued
operations (including
loss on disposal) (0) (191) (0) (329)
Income tax benefit (0) 70 (0) 122
-------- -------- -------- --------
LOSS FROM DISCONTINUED
OPERATIONS (0) (121) (0) (207)
-------- -------- -------- --------
NET INCOME $ 1,006 $ 1,361 $ 2,241 $ 319
======== ======== ======== ========
NET INCOME PER COMMON SHARE:
Basic:
Income from continuing
operations $ 0.06 $ 0.09 $ 0.14 $ 0.03
Loss from discontinued
operations (0.00) (0.01) (0.00) (0.01)
-------- -------- -------- --------
Net income $ 0.06 $ 0.08 $ 0.14 $ 0.02
======== ======== ======== ========
Diluted:
Income from continuing
operations $ 0.06 $ 0.09 $ 0.13 $ 0.03
Loss from discontinued
operations (0.00) (0.01) (0.00) (0.01)
-------- -------- -------- --------
Net income $ 0.06 $ 0.08 $ 0.13 $ 0.02
======== ======== ======== ========
Weighted average shares
outstanding:
Basic 16,497 16,248 16,471 16,234
======== ======== ======== ========
Diluted 17,225 16,518 17,220 16,435
======== ======== ======== ========
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