Commenting on the results, Sandra B. Cochran, President and Chief Executive Officer, said, "We are very pleased with our results for the quarter, which were driven by strong sales in almost all of our key book categories. Among the best performing categories were fiction, children's, cooking, inspirational, teen interest and humor. Bestselling titles included Nicholas Spark's True Believer, Rick Warren's The Purpose Driven Life, Joel Osteen's Your Best Life Now and James Patterson's Honeymoon. Bargain books, our Joe Muggs cafes and our gift category also registered positive comparable store sales gains for the quarter.
"The second quarter should prove exciting with the release of Harry Potter and The Half Blood Prince on July 16th," Cochran continued. "Our entire team is working hard to build on the positive trends of recent months, to maintain fiscal and operational discipline, and to remain focused on our goals to improve margins and inventory management for the year."
The Company expects to report net income of $0.08 to $0.10 per diluted share for the second quarter of fiscal 2006 versus last year's second quarter net income of $0.06 per diluted share. Excluding the gain from insurance recoveries that will be recorded in fiscal 2006, the Company is increasing its earnings guidance for fiscal 2006 to $0.69 to $0.71 per diluted share from the previous guidance of $0.67 to $0.69 per diluted share. Projected net income for the year, including the one-time insurance gain, is $0.72 to $0.76 per diluted share.
Books-A-Million is one of the nation's leading book retailers and sells on the Internet at www.booksamillion.com. The Company presently operates 207 stores in 19 states and the District of Columbia. The Company operates four distinct store formats, including large superstores operating under the names Books-A-Million and Books & Co., traditional bookstores operating under the names Books-A-Million and Bookland, and Joe Muggs Newsstands. The Company's wholesale operations include American Wholesale Book Company and Book$mart, both based in Florence, Alabama.
BOOKS-A-MILLION, INC.
Unaudited Consolidated Financial Highlights
(In thousands, except per share data)
13 Weeks Ended
----------------------
April 30, May 1,
2005 2004
--------- ---------
NET SALES $ 113,004 $ 107,913
Cost of sales (including warehouse,
distribution and store occupancy costs) 81,342 77,725
--------- ---------
GROSS PROFIT 31,662 30,188
Operating, selling and administrative
expenses 25,596 23,070
Depreciation and amortization 3,938 4,623
--------- ---------
OPERATING INCOME 2,128 2,495
Interest expense, net 384 518
--------- ---------
INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES 1,744 1,977
Income tax provision 663 752
--------- ---------
INCOME FROM CONTINUING OPERATIONS 1,081 1,225
DISCONTINUED OPERATIONS:
(Loss) income from discontinued operations
(including loss on disposal) (34) 4
Income tax benefit (provision) 13 (1)
--------- ---------
(LOSS) INCOME FROM DISCONTINUED OPERATIONS (21) 3
--------- ---------
NET INCOME $ 1,060 $ 1,228
========= =========
NET INCOME PER COMMON SHARE:
Basic:
Income from continuing operations $ 0.07 $ 0.07
Loss from discontinued operations (0.00) (0.00)
--------- ---------
Net income $ 0.07 $ 0.07
========= =========
Diluted:
Income from continuing operations $ 0.06 $ 0.07
Loss from discontinued operations (0.00) (0.00)
--------- ---------
Net income $ 0.06 $ 0.07
========= =========
Weighted average shares outstanding:
Basic 16,201 16,445
========= =========
Diluted 16,922 17,213
========= =========
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.