For the first eleven months of fiscal 2001, sales increased 1.9% to $379.1 million from $372.2 million in the year-earlier period. Comparable store sales for the first eleven months of fiscal 2001 decreased 2.6%. The final results for the year ending February 3, 2001, will be released as scheduled in mid-March.
Commenting on the results, Clyde B. Anderson, Chairman and Chief Executive Officer, said, "We were comparing against a very strong holiday season last year which was driven by a number of factors, including the Pokemon craze, the turn of the Millennium and a very strong economy. This season saw no equivalent trends develop, and sales were below last year as a result. Management expects that comparable store comparisons will continue to be adversely affected by the Pokemon collectibles sales through the second quarter of fiscal 2002."
Anderson continued, "We are encouraged, however, by the general strength of the core book business and the continued growth of our e-commerce businesses. We estimate that net income for the fourth quarter will be approximately $0.27 to $0.30 per diluted share compared with $0.36 per diluted share for the same period last year. Despite the downturn in earnings for the quarter, our balance sheet continues to reflect the Company's overall financial strength."
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 188 stores in 17 states. The Company operates four distinct store formats, including large superstores operating under the names Books-A-Million and Books & Co., traditional bookstores and combination book and greeting card stores, both operating under the name Bookland, and Joe Muggs Newsstands.
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