Declares Regular Quarterly Dividend
BIRMINGHAM, Ala. (November 18, 2005) -- Books-A-Million, Inc.(Nasdaq/NM:BAMM) today announced financial results for the third
quarter and nine months ended October 29, 2005. Net sales for the
13-week period increased 3.4% to $107.6 million from sales of $104.1
million in the year-earlier period. Comparable store sales for the
quarter increased 0.6% when compared with the 13-week period for the
prior year. Net loss for the quarter was $873,000, or $0.05 per
diluted share, compared with a net loss of $1.2 million, or $0.07 per
diluted share, in the year-earlier period. The Company's results for
the third quarter included $770,000 in gains, net of taxes, from
insurance recoveries for three stores that were permanently damaged byhurricanes during last fiscal year. This gain reduced net loss for the third quarter by approximately $0.05 per fully diluted share.
For the thirty-nine week period ended October 29, 2005, net sales
increased 5.4% to $343.1 million from sales of $325.5 million in the
year-earlier period. Comparable store sales increased 2.9% when
compared with the same period of fiscal 2005. For the thirty-nine week period, the Company reported net income of $1.9 million, or $0.11 per diluted share, compared with net income of $1.0 million, or $0.06 per diluted share, for the year-earlier period. The Company's results for the thirty-nine weeks included $770,000 in gains, net of taxes, from insurance recoveries for three stores that were permanently damaged by hurricanes during last fiscal year. This gain increased net income for the thirty-nine weeks by approximately $0.04 per fully diluted share.
Commenting on the results, Sandra B. Cochran, President and Chief
Executive Officer, said, "Although the effects of the hurricane season dampened sales at our stores throughout the South, we are pleased with our results for the quarter. We were able to recover quickly and deliver results that exceeded our revised guidance. We are working hard to prepare for the holiday season, with a solid lineup of new books, including several strong movie tie-ins that we believe will create excitement in our stores."
The Company will pay a quarterly cash dividend of $0.05 per
Common Share on December 13, 2005, to shareholders of record at the
close of business on November 29, 2005.
The Company expects to report net income of $0.59 to $0.61 per
diluted share for the fourth quarter of fiscal 2006 versus last year's net income of $0.54 per diluted share. The Company is updating its guidance for fiscal 2006 full-year net income to $0.70 to $0.72 per diluted share from previous guidance of $0.68 to $0.71 per diluted share, versus last year's earnings of $0.59 per diluted share. The estimates for the full fiscal year include the gain of $0.05 per diluted share from insurance recoveries recorded in the third quarter of fiscal 2006.
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 208 stores in 19 states and the District of Columbia. The
Company operates three 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.
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.
Unaudited Consolidated Statements of Income
(In thousands, except per share data)
13 Weeks Ended 39 Weeks Ended
------------------- -------------------
Oct. 29, Oct. 30, Oct. 29, Oct. 30,
2005 2004 2005 2004
-------- -------- -------- --------
NET SALES $107,638 $104,072 $343,060 $325,479
Cost of sales (including
warehouse, distribution
and store occupancy
costs) 79,491 76,247 249,160 236,445
-------- -------- -------- --------
GROSS PROFIT 28,147 27,825 93,900 89,034
Operating, selling and
administrative expenses 26,521 24,748 78,927 72,440
Gain on insurance
recoveries (1,248) -- (1,248) --
Depreciation and
amortization 3,889 4,394 11,915 13,330
-------- -------- -------- --------
OPERATING INCOME (LOSS) (1,015) (1,317) 4,306 3,264
Interest expense, net 379 503 1,178 1,508
-------- -------- -------- --------
INCOME (LOSS) FROM
CONTINUING OPERATIONS
BEFORE INCOME TAXES (1,394) (1,820) 3,128 1,756
Income tax provision
(benefit) (534) (674) 1,198 649
-------- -------- -------- --------
INCOME (LOSS) FROM
CONTINUING OPERATION (860) (1,146) 1,930 1,107
DISCONTINUED OPERATIONS:
Loss from discontinued
operations (including
loss on disposal) (21) (41) (68) (98)
Income tax benefit 8 15 26 36
-------- -------- -------- --------
LOSS FROM DISCONTINUED
OPERATIONS (13) (26) (42) (62)
-------- -------- -------- --------
NET INCOME (LOSS) $ (873) $ (1,172) $ 1,888 $ 1,045
======== ======== ======== ========
NET INCOME (LOSS) PER COMMON SHARE:
Basic:
Income (loss) from
continuing operations $ (0.05) $ (0.07) $ 0.12 $ 0.06
Loss from discontinued
operations -- -- -- --
-------- -------- -------- --------
Net income (loss) $ (0.05) $ (0.07) $ 0.12 $ 0.06
======== ======== ======== ========
Diluted:
Income (loss) from
continuing operations $ (0.05) $ (0.07) $ 0.11 $ 0.06
Loss from discontinued
operations -- -- -- --
-------- -------- -------- --------
Net income (loss) $ (0.05) $ (0.07) $ 0.11 $ 0.06
======== ======== ======== ========
Weighted average shares outstanding:
Basic 16,487 16,578 16,329 16,507
======== ======== ======== ========
Diluted 16,487 16,578 16,924 17,227
======== ======== ======== ========
Safe Harbor Statement Under the Private Securities Litigation Reform
Act of 1995: