BIRMINGHAM, Ala. (March 22, 2001) -- Books-A-Million, Inc. (Nasdaq/NM:BAMM) today announced financial results for the fourth quarter and fiscal year ended February 3, 2001. Net sales for the 14-week period increased 2.8% to $141.7 million compared with $137.9 million in the 13-week period ended January 29, 2000. Comparable store sales decreased 8.4% when compared with the same 13-week period of fiscal 2000. Excluding the sales of Pokémon collectibles, comparable stores sales decreased 1.4%. Earnings before interest, taxes and depreciation for the fourth quarter decreased 16.3% to $12.6 million from $15.1 million in the year-earlier period. Net income for the fourth quarter of fiscal 2001 was $4.8 million, or $0.27 per diluted share, compared with net income of $6.5 million, or $0.36 per diluted share, in the year-earlier period.
For the 53-week period ended February 3, 2001, net sales increased 3.6% to $418.6 million from sales of $404.1 million for the 52-week period ended January 29, 2001. Comparable store sales decreased 2.9% when compared with the same 52-week period of fiscal 2000. Earnings before interest, taxes and depreciation for the year decreased 11.2% to $24.5 million compared with $27.6 million for the same period of fiscal 2000. The Company reported net income of $3.1 million, or $0.17 per diluted share for fiscal 2001, compared with net income of $5.9 million, or $0.33 per diluted share for fiscal 2000.
"Several factors had an impact on our fourth quarter results, including a difficult retail environment and the continued softness in our collectors category," said, Clyde B. Anderson, Chairman and Chief Executive Officer. "We are encouraged, however, by the performance of our core book business, which posted solid results despite comparing with strong millennium product sales during the period last year. Operationally, the Company responded well to the decline in sales and did an exceptional job of controlling selling, general and administrative expenses.
"Booksamillion.com concluded a successful year," Anderson continued. "Sales exceeded our internal projections and the margin continues to improve. In addition, NetCentral, Inc., our web development company, completed development of our web-based, in-store customer service system, which now is operational in all Books-A-Million locations."
Anderson added, "The integration of the recently acquired Crown Books stores has begun smoothly. Our customers and associates alike are excited that Books-A-Million will continue serving booklovers in Washington, D.C. and Chicago. In addition to the 18 Crown stores, we plan to open five new Books-A-Million stores and eight new Joe Muggs Newsstands in fiscal 2002. Fiscal 2002 earnings per share are projected to improve to $0.23 from $0.17, while we estimate a net loss of $0.02 per share for the first quarter of fiscal 2002 versus net income of $0.03 for the prior-year first quarter. The projected net loss in the first quarter is primarily due to the difficult Pokemon comparisons from the prior year."
Books-A-Million is one of the nation's leading book retailers and sells on the Internet at www.booksamillion.com. The Company presently operates 202 stores in 18 states. The Company operates four distinct store formats, including large superstores operating under the names Books-A-Million and Books & Co., traditional bookstores and combination book and greeting card stores, both operating under the name Bookland, and Joe Muggs Newsstands. The Company’s wholesale operations include American Wholesale Book Company and Book$mart, both based in Florence, Alabama. NetCentral, Inc., an Internet development and service company is located in Nashville, Tennessee. For more information, visit the company’s website at www.booksamillioninc.com.
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
BOOKS-A-MILLION, INC.
Unaudited Consolidated Financial Highlights
(In thousands, except per share data)
Fourth Quarter Ended
Feb. 3, Jan. 29,
2001 2000
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Net sales $141,745 $137,890
Earnings before interest,
taxes and depreciation 12,628 15,096
Operating income 8,909 11,400
Net income $ 4,800 $ 6,537
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Earnings per share:
Basic $ 0.27 $ 0.36
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Diluted $ 0.27 $ 0.36
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Weighted average number
of shares outstanding:
Basic 17,807 17,998
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Diluted 17,860 18,812
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Year Ended
Feb. 3, Jan. 29,
2001 2000
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Net sales $418,606 $404,057
Earnings before interest,
taxes and depreciation 24,542 27,624
Operating income 9,749 13,794
Net income $ 3,066 $ 5,942
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Earnings per share:
Basic $ (0.17) $ (0.33)
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Diluted $ (0.17) $ (0.33)
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Weighted average number
of shares outstanding:
Basic 17,955 17,981
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Diluted 17,991 18,250
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Contact:
Chief Financial Officer
(205) 942-3737