BIRMINGHAM, Ala. (September 09, 2005) -- Books-A-Million, Inc. (Nasdaq/NM:BAMM) today announced that it is lowering earnings guidance previously issued for the third quarter and fiscal 2006 full year to reflect the expected impact of reduced sales resulting from Hurricane Katrina that affected the southeastern United States. The Company has experienced lower-than-expected sales as a result of the effects of Hurricane Katrina related to temporary closings of approximately 15 stores for periods ranging from two to ten days. In addition, significant comparable store sales decreases occurred in stores that were not closed due to the hurricane. The impact of Hurricane Katrina on the southeastern region and the resulting focus of media attention on the hurricane and related events combined to contribute to the difficult sales environment.
"We are proud of our associates who have responded to the challenges of this storm with dedication and generosity," commented Sandra B. Cochran, President and Chief Executive Officer. "Many of our associates were personally affected by the storm and its aftermath. We are doing all we can to get them aid and back to work as soon as possible. In addition, we are raising funds in our stores for the Salvation Army to provide aid to the victims of Hurricane Katrina."
As a result of the effects of this storm, the earnings estimate for the third quarter has been reduced to a net loss of $0.06 to $0.09 per diluted share from the previous estimate of a net loss of $0.01 to $0.03 per diluted share. Last year’s third-quarter net loss was $0.07 per diluted share. The earnings estimate for the full-year fiscal 2006 has been reduced to net earnings of $0.68 to $0.71 per diluted share from the previous estimate of $0.73 to $0.77 per diluted share. Last year’s net income was $0.59 per diluted share. As previously reported the revised estimates for the third quarter and for the full fiscal year include a gain from insurance recoveries estimated at $0.03 to $0.05 per diluted share.
Books-A-Million is one of the nation's leading book retailers and sells on the Internet at www.booksamillion.com. The Company presently operates 207 stores in 19 states and the District of Columbia. The Company operates four distinct store formats, including large superstores operating under the names Books-A-Million and Books & Co., traditional bookstores operating under the names Books-A-Million and Bookland, and Joe Muggs Newsstands. The Company’s wholesale operations include American Wholesale Book Company and Book$mart, both based in Florence, Alabama.
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.