BIRMINGHAM, Ala. (May 22, 2001) -- Books-A-Million, Inc. (Nasdaq/NM:BAMM) today announced financial results for the first quarter ended May 5, 2001. Net sales for the first quarter of fiscal 2002 increased 4.7% to $97.5 million from $93.1 million in the year-earlier period. Comparable store sales for the quarter decreased 6.8%. Excluding the effects of Pokémon sales, comparable store sales increased 0.2% for the quarter. Earnings before interest, taxes and depreciation for the first quarter decreased 17.8% to $4.5 million from $5.4 million in the year-earlier period. Net loss for the first three months of fiscal 2002 was $415,000, or $0.02 per diluted share, compared with net income of $471,000, or $0.03 per diluted share, in the year-earlier period.
Commenting on the results, Clyde B. Anderson, Chairman and Chief Executive Officer, said, "The first quarter was a solid one for our core book business. Several categories performed well, including fiction, history and children’s books. The religious book category was particularly strong led by sales of The Prayer of Jabez and Secrets of the Vine in the Breakthrough Series. Booksamillion.com completed another successful quarter. Internet sales once again exceeded our internal projections and we continue to see improvements in our margins."
Anderson continued, "During the quarter, we also began the process of integrating the recently acquired Crown Books stores in Washington, D.C. and Chicago. We moved quickly to improve inventories and now are working on making the necessary changes to the physical appearance of the stores, including improvements in the floor plan, signage and merchandise mix.
"Comparable store sales results continue to reflect comparisons with the strong sales of Pokémon collectibles and related gifts in the prior year. We expect to continue to fight this trend through the second quarter. We are projecting a net loss for the second quarter in the range of $0.06 to $0.04 per diluted share versus a net loss of $0.03 per diluted share in the prior-year period. The Company’s earnings expectations for fiscal 2002 remain at an approximate 30% increase when compared with fiscal 2001."
Books-A-Million is one of the nation's leading book retailers and sells on the Internet at www.booksamillion.com. The Company presently operates 201 stores in 18 states. The Company operates four distinct store formats, including large superstores operating under the names Books-A-Million and Books & Co., traditional bookstores and combination book and greeting card stores, both operating under the name Bookland, and Joe Muggs Newsstands. The Company’s wholesale operations include American Wholesale Book Company and Book$mart, both based in Florence, Alabama. NetCentral, Inc., an Internet development and service Company is located in Nashville, Tennessee.
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)
First Quarter Ended
Apr. 29, May 5,
2001 2000
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Net sales $97,490 $93,099
Earnings before interest,
taxes and depreciation 4,475 5,443
Operating income 598 1,793
Net income (loss) $(415) $ 471
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Earnings (loss) per share:
Basic $ (0.02) $ 0.03
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Diluted $ (0.02) $ 0.03
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Weighted average number
of shares outstanding:
Basic 17,321 18,005
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Diluted 17,321 18,083
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Contact:
Chief Financial Officer
(205) 942-3737