StockSelector.com
  Research, Select, & Monitor Monday, November 20, 2017 11:16:08 PM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
Barnes & Noble, Inc.$7.30($.15)(2.01%)

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 Barnes & Noble Reports Fiscal 2016 Year-End Financial Results
   Wednesday, June 22, 2016 4:30:00 PM ET

--Core Comparable Store Sales Increase 0.4%

--Company to Host Investor Day to Discuss Long-Term Objectives

Barnes & Noble, Inc. (BKS ) today reported sales and earnings for its fiscal 2016 fourth quarter and full-year ended April 30, 2016.

Retail sales, which include Barnes & Noble stores and BN.com, were $850 million for the quarter and $4.0 billion for the full year, decreasing 2.2% and 1.9%, respectively. Comparable store sales declined 0.8% for the quarter and were flat for the full year, in-line with Company guidance. "Core" comparable store sales, which exclude sales of NOOK products, declined 0.8% for the quarter, while increasing 0.4% for the full year, slightly below expectations of an approximate 1% increase. Sales for both the quarter and the year were also impacted by store closures and lower online sales.

NOOK sales, which include digital content, devices and accessories, were $42.0 million for the quarter and $191.5 million for the full year, decreasing 20.0% and 27.4%, respectively, due primarily to lower device and content sales.

Consolidated sales were $877 million for the quarter and $4.16 billion for the year, decreasing 3.7% and 3.1%, respectively, as compared to the prior year.

Retail incurred an operating loss of $34.9 million for the quarter and an operating profit of $113.3 million for the year. NOOK generated an operating loss of $23.1 million for the quarter and $98.6 million for the year.

The consolidated fourth quarter net loss from continuing operations was $30.6 million, or $0.42 per share, compared to a loss from continuing operations of $3.0 million, or $0.12 per share, in the prior year. Fiscal 2016 consolidated net earnings from continuing operations were $14.7 million, or $0.05 per share, compared to net earnings from continuing operations of $32.9 million, or $0.15 per share, in the prior year.

For the fourth quarter, Retail incurred an EBITDA loss of $11.1 million, which includes a previously disclosed $20.9 million pension settlement charge related to the termination of the Company’s pension plan. Excluding this charge, Retail EBITDA would have been $9.8 million during the quarter, a decline of $23.3 million versus the prior year, primarily on lower sales, increased promotional activity and higher store wages and benefit costs.

For the full year, Retail generated EBITDA of $215.2 million, inclusive of $35.2 million of charges, including the $20.9 million pension charge noted above, a $10.5 million executive severance charge related to the Barnes & Noble College spin-off and a $3.8 million publishing contract impairment. Excluding these charges, Retail EBITDA would have been $250.4 million for the year, declining $67.3 million primarily on lower sales, increased advertising, higher store wages and expense deleverage.

Fourth quarter NOOK EBITDA losses were $14.9 million, which included approximately $4.0 million of expenses incurred to further rationalize the cost structure of the business. These expenses include transitional costs to outsource certain technology functions, consulting fees, Retail integration costs, and expenses to exit the U.K., apps and video businesses. Excluding these items, NOOK EBITDA losses would have been consistent with the third quarter.

Full year NOOK EBITDA losses were $64.7 million this year as compared to $83.9 million a year ago, a 23% decrease as the Company continues to focus on cost rationalization efforts.

On a consolidated basis, the fourth quarter EBITDA loss was $26.0 million, which includes the $20.9 million pension settlement charge. Excluding the charge, the fourth quarter consolidated EBITDA loss would have been $5.1 million. For the full year, consolidated EBITDA was $150.5 million, which includes the $35.2 million of charges noted above. Excluding the charges, consolidated EBITDA would have been $185.7 million for the full year.

Excluding the charges noted above, the consolidated fourth quarter net loss from continuing operations would have been $17.8 million, or $0.24 per share, and fiscal 2016 consolidated net earnings from continuing operations would have been $36.2 million, or $0.35 per share.

Return of Capital

During the quarter, the Company returned $21.5 million in cash to its shareholders, including $11.3 million in dividends and $10.2 million through share repurchases. The Company acquired approximately 964,000 shares at an average price of $10.61 during the quarter under its share repurchase program.

Outlook

"As we look ahead to fiscal 2017 and beyond, we are focusing on executing a number of initiatives to grow bookstore and online sales, reduce Retail and NOOK expenses and grow our Membership base," said Ron Boire, Chief Executive Officer of Barnes & Noble, Inc. "We believe our marketing, merchandising and Membership initiatives will lead to increased traffic and conversion in our stores. We are also excited about our plans to open four new concept stores opening later this year, beginning with the first store opening this October in Eastchester, NY. We look forward to discussing these initiatives at our Investor Day."

For fiscal year 2017, the Company expects comparable bookstore sales to be approximately flat to an increase of approximately 1%. The Company also expects full year consolidated EBITDA to be in a range of $200 million to $250 million, with Retail EBITDA of $240 million to $280 million and NOOK EBITDA losses declining to a range of $30 million to $40 million, including previously announced transitional costs.

Investor Day Webcast

The Company’s senior management will host an investor conference beginning at 9:00 A.M. ET on Thursday, June 23, 2016 to discuss the Company’s financial results, business strategy and longer-term outlook. The webcast of this investor conference can be accessed on Barnes & Noble, Inc.’s corporate website at www.barnesandnobleinc.com/webcasts.

Barnes & Noble, Inc. will report fiscal 2017 first quarter results on or about September 8, 2016.

About Barnes & Noble, Inc.

Barnes & Noble, Inc. (BKS ) is a Fortune 500 company, the nation’s largest retail bookseller, and a leading retailer of content, digital media and educational products. The Company operates 640 Barnes & Noble bookstores in 50 states, and one of the Web’s premier e-commerce sites, BN.com (www.bn.com). The NOOK Digital business offers a lineup of popular NOOK (www.nook.com) tablets and eReaders and an expansive collection of digital reading and entertainment content through the NOOK Store(R). The NOOK Store features more than 4 million digital books in the US plus periodicals, comics, apps, movies and TV shows, and offers the ability to enjoy content across a wide array of popular devices through Free NOOK Reading Apps(TM) available for Android(TM), iOS(R) and Windows(R).

General information on Barnes & Noble, Inc. can be obtained by visiting the Company’s corporate website at www.barnesandnobleinc.com.

Forward-Looking Statements

This press release contains certain forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) and information relating to Barnes & Noble that are based on the beliefs of the management of Barnes & Noble as well as assumptions made by and information currently available to the management of Barnes & Noble. When used in this communication, the words "anticipate," "believe," "estimate," "expect," "intend," "plan," "will," "forecasts," "projections," and similar expressions, as they relate to Barnes & Noble or the management of Barnes & Noble, identify forward-looking statements.

Such statements reflect the current views of Barnes & Noble with respect to future events, the outcome of which is subject to certain risks, including, among others, the general economic environment and consumer spending patterns, decreased consumer demand for Barnes & Noble’s products, low growth or declining sales and net income due to various factors, including store closings, higher-than-anticipated or increasing costs, including with respect to store closings, relocation, occupancy (including in connection with lease renewals) and labor costs, the effects of competition, the risk of insufficient access to financing to implement future business initiatives, risks associated with data privacy and information security, risks associated with Barnes & Noble’s supply chain, including possible delays and disruptions and increases in shipping rates, various risks associated with the digital business, including the possible loss of customers, declines in digital content sales, risks and costs associated with ongoing efforts to rationalize the digital business and the digital business not being able to perform its obligations under the Samsung commercial agreement and the consequences thereof, the risk that financial and operational forecasts and projections are not achieved, the performance of Barnes & Noble’s initiatives including but not limited to its new store concept and e-commerce initiatives, unanticipated adverse litigation results or effects, potential infringement of Barnes & Noble’s intellectual property by third parties or by Barnes & Noble of the intellectual property of third parties, and other factors, including those factors discussed in detail in Item 1A, "Risk Factors," in Barnes & Noble’s Annual Report on Form 10-K for the fiscal year ended May 2, 2015, and in Barnes & Noble’s other filings made hereafter from time to time with the SEC.

Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described as anticipated, believed, estimated, expected, intended or planned. Subsequent written and oral forward-looking statements attributable to Barnes & Noble or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements in this paragraph. Barnes & Noble undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this communication.

                                                                                                                                                                 BARNES & NOBLE, INC. AND SUBSIDIARIES
                                                                                                                                                                 Consolidated Statements of Operations
                                                                                                                                                                 (In thousands, except per share data)
                                                                                                                                                                              (Unaudited)
                                                                                                                                         
------------------------------------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------- ------------------------------------------------------------------------ ----------------------------------------------------
                                                                      13 weeks ended                                      13 weeks ended                                         52 weeks ended                                        52 weeks ended
                                                                                         April 30, 2016                                        May 2, 2015                                                                                April 30, 2016                                          May 2, 2015
                                                                       ---------------------------------------------------------------------- --------------------------------------------------                                          ------------------------------------------------------------------------ ----------------------------------------------------
                                                                                                                                                                                                                                                                                                                    
Sales                                                                                     $ 876,684                                                              $ 910,079                                                                                   $ 4,163,844                                                              $ 4,297,108
Cost of sales and occupancy                                              610,926                          610,272                                               2,836,547                          2,871,184  
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
   Gross profit                                                          265,758                          299,807                                               1,327,297                          1,425,924  
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
Selling and administrative expenses                                                         291,715                                                                280,986                                                                                     1,176,778                                                                1,192,065
Depreciation and amortization                                             31,999                           33,715                                                 135,863                            143,665  
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
   Operating profit (loss)                                                                  (57,956 )                                                              (14,894 )                                                                                      14,656                                                                   90,194
Interest expense, net                                                      1,537                            2,955                                                   8,770                             17,678  
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
    Income (loss) before taxes                                                              (59,493 )                                                              (17,849 )                                                                                       5,886                                                                   72,516
Income taxes                                                             (28,885 )                                           (14,830 )                                                                   (8,814 )                                              39,644  
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
     Net income (loss) from continuing operations                                           (30,608 )                                                               (3,019 )                                                                                      14,700                                                                   32,872
Net income (loss) from discontinued operations                                 -                          (16,402 )                                                                  (39,146 )                                               3,724  
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
     Net income (loss)                                                                    $ (30,608 )                                                            $ (19,421 )                                                                                 $   (24,446 )                                                            $    36,596  
                                                                       ==================== ======= ====================                      ==================== ======= ====================                                           ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                    
Basic income (loss) per common share:
     Income (loss) from continuing operations                                             $   (0.42 )                                                            $   (0.12 )                                                                                 $      0.05                                                              $      0.15
     Income (loss) from discontinued operations                             0.00                            (0.26 )                                                                    (0.54 )                                                0.06  
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
   Basic income (loss) per common share                                                   $   (0.42 )                                                            $   (0.37 )                                                                                 $     (0.49 )                                                            $      0.21  
                                                                       ==================== ======= ====================                      ==================== ======= ====================                                           ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                    
Diluted income (loss) per common share:
     Income (loss) from continuing operations                                             $   (0.42 )                                                            $   (0.12 )                                                                                 $      0.05                                                              $      0.15
     Income (loss) from discontinued operations                             0.00                            (0.26 )                                                                    (0.54 )                                                0.06  
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
   Diluted income (loss) per common share                                                 $   (0.42 )                                                            $   (0.37 )                                                                                 $     (0.49 )                                                            $      0.21  
                                                                       ==================== ======= ====================                      ==================== ======= ====================                                           ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                    
Weighted average common shares outstanding:
   Basic                                                                                     73,680                                                                 63,198                                                                                        72,410                                                                   60,842
   Diluted                                                                                   73,680                                                                 63,198                                                                                        72,542                                                                   60,928
                                                                                                                                                                                                                                                                                                                    
Dividends declared per common share                                                       $    0.15                                                              $       -                                                                                   $      0.60                                                              $         -
                                                                                                                                                                                                                                                                                                                    
Percentage of sales:
Sales                                                                                         100.0 %                                                                100.0 %                                                                                       100.0 %                                                                  100.0 %
Cost of sales and occupancy                                                 69.7 %                                              67.1 %                                                                     68.1 %                                                66.8 %
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
   Gross profit                                                             30.3 %                                              32.9 %                                                                     31.9 %                                                33.2 %
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
Selling and administrative expenses                                                            33.3 %                                                                 30.9 %                                                                                        28.3 %                                                                   27.7 %
Depreciation and amortization                                                3.7 %                                               3.7 %                                                                      3.3 %                                                 3.3 %
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
   Operating profit (loss)                                                                     -6.6 %                                                                 -1.6 %                                                                                         0.4 %                                                                    2.1 %
Interest expense, net                                                        0.2 %                                               0.3 %                                                                      0.2 %                                                 0.4 %
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
    Income (loss) before taxes                                                                 -6.8 %                                                                 -2.0 %                                                                                         0.1 %                                                                    1.7 %
Income taxes                                                                -3.3 %                                              -1.6 %                                                                     -0.2 %                                                 0.9 %
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
     Net income (loss) from continuing operations                                              -3.5 %                                                                 -0.3 %                                                                                         0.4 %                                                                    0.8 %
Net income (loss) from discontinued operations                               0.0 %                                              -1.8 %                                                                     -0.9 %                                                 0.1 %
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
     Net income (loss)                                                                         -3.5 %                                                                 -2.1 %                                                                                        -0.6 %                                                                    0.9 %
                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                       BARNES & NOBLE, INC. AND SUBSIDIARIES
                                                                                                                                                                                Segment Information
                                                                                                                                                                                  (In thousands)
                                                                                                                                                                                    (Unaudited)
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                              
                                                                                                    13 weeks ended                                                         13 weeks ended                                                                               52 weeks ended                                                           52 weeks ended
                                                                                                    April 30, 2016                                        May 2, 2015                                                                                April 30, 2016                                          May 2, 2015
                                                                                  ---------------------------------------------------------------------- --------------------------------------------------                                          ------------------------------------------------------------------------ ----------------------------------------------------
                                                                                                                                                                                                                                                                                                                               
Sales              
----------------- ------------------------------------------
                  Retail                                                                             $ 850,024                                                              $ 869,360                                                                                   $ 4,028,614                                                              $ 4,108,243
                  NOOK                                                                                  41,952                                                                 52,431                                                                                       191,520                                                                  263,833
                  Elimination                                                       (15,292 )                                           (11,712 )                                                                  (56,290 )                                             (74,968 )
                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
Total                                                                                                $ 876,684                                           $ 910,079                                                                $ 4,163,844                                           $ 4,297,108  
                                                                                  ==================== ======= ====================                      ==================== ======= ====================                                           ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                               
Gross Profit
-------------------------------------------------------------
                  Retail                                                                             $ 248,807                                                              $ 268,444                                                                                   $ 1,258,405                                                              $ 1,309,397
                  NOOK                                                               16,951                           31,363                                                  68,892                            116,527  
                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
Total                                                                                                $ 265,758                                           $ 299,807                                                                $ 1,327,297                                           $ 1,425,924  
                                                                                  ==================== ======= ====================                      ==================== ======= ====================                                           ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                               
Selling and Administrative Expenses
-------------------------------------------------------------
                  Retail                                                                             $ 259,868                                                              $ 235,307                                                                                   $ 1,043,221                                                              $   991,669
                  NOOK                                                               31,847                           45,679                                                 133,557                            200,396  
                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
Total                                                                                                $ 291,715                                           $ 280,986                                                                $ 1,176,778                                           $ 1,192,065  
                                                                                  ==================== ======= ====================                      ==================== ======= ====================                                           ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                               
EBITDA
-------------------------------------------------------------
                  Retail                                                                             $ (11,061 )                                                            $  33,137                                                                                   $   215,184                                                              $   317,728
                  NOOK                                                              (14,896 )                                           (14,316 )                                                                  (64,665 )                                             (83,869 )
                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
Total                                                                                                $ (25,957 )                                                            $  18,821                                                                $   150,519                                           $   233,859  
                                                                                  ==================== ======= ====================                      ==================== ======= ====================                                           ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                               
Depreciation and Amortization
-------------------------------------------------------------
                  Retail                                                                             $ (23,809 )                                                            $ (24,420 )                                                                                 $  (101,888 )                                                            $  (104,373 )
                  NOOK                                                               (8,190 )                                            (9,295 )                                                                  (33,975 )                                             (39,292 )
                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
Total                                                                                                $ (31,999 )                                                            $ (33,715 )                                                                                 $  (135,863 )                                                            $  (143,665 )
                                                                                  ==================== ======= ====================                      ==================== ======= ====================                                           ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                               
Operating Profit (Loss)
-------------------------------------------------------------
                  Retail                                                                             $ (34,870 )                                                            $   8,717                                                                                   $   113,296                                                              $   213,355
                  NOOK                                                              (23,086 )                                           (23,611 )                                                                  (98,640 )                                            (123,161 )
                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
Total                                                                                                $ (57,956 )                                                            $ (14,894 )                                                                                 $    14,656                                           $    90,194  
                                                                                  ==================== ======= ====================                      ==================== ======= ====================                                           ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                               
Net Income (Loss)
-------------------------------------------------------------
                  Operating profit (loss)                                                            $ (57,956 )                                                            $ (14,894 )                                                                                 $    14,656                                                              $    90,194
                  Interest expense, net                                                                 (1,537 )                                                               (2,955 )                                                                                      (8,770 )                                                                (17,678 )
                  Income taxes                                                                          28,885                                                                 14,830                                                                                         8,814                                                                  (39,644 )
                  Income (loss) from discontinued operations                              -                          (16,402 )                                                                  (39,146 )                                               3,724  
                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
Total                                                                                                $ (30,608 )                                                            $ (19,421 )                                                                                 $   (24,446 )                                                            $    36,596  
                                                                                  ==================== ======= ====================                      ==================== ======= ====================                                           ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                               
Percentage of sales:
                                                                                                                                                                                                                                                                                                                               
Gross Margin
-------------------------------------------------------------
                  Retail                                                                                  29.3 %                                                                 30.9 %                                                                                        31.2 %                                                                   31.9 %
                  NOOK                                                                 63.6 %                                              77.0 %                                                                     50.9 %                                                61.7 %
                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
Total                                                                                                     30.3 %                                                                 32.9 %                                                                                        31.9 %                                                                   33.2 %
                                                                                                                                                                                                                                                                                                                               
Selling and Administrative Expenses
-------------------------------------------------------------
                  Retail                                                                                  30.6 %                                                                 27.1 %                                                                                        25.9 %                                                                   24.1 %
                  NOOK                                                                119.5 %                                             112.2 %                                                                     98.8 %                                               106.1 %
                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
Total                                                                                                     33.3 %                                                                 30.9 %                                                                                        28.3 %                                                                   27.7 %
                                                                                                                                                                                                                                                                                                                               
EBITDA
-------------------------------------------------------------
                  Retail                                                                                  -1.3 %                                                                  3.8 %                                                                                         5.3 %                                                                    7.7 %
                  NOOK                                                                -55.9 %                                             -35.2 %                                                                    -47.8 %                                               -44.4 %
                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
Total                                                                                                     -3.0 %                                                                  2.1 %                                                                                         3.6 %                                                                    5.4 %
                                                                                                                                                                                                                                                                                                                               
Depreciation and Amortization
-------------------------------------------------------------
                  Retail                                                                                  -2.8 %                                                                 -2.8 %                                                                                        -2.5 %                                                                   -2.5 %
                  NOOK                                                                -30.7 %                                             -22.8 %                                                                    -25.1 %                                               -20.8 %
                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
Total                                                                                                     -3.7 %                                                                 -3.7 %                                                                                        -3.3 %                                                                   -3.3 %
                                                                                                                                                                                                                                                                                                                               
Operating Profit (Loss)
-------------------------------------------------------------
                  Retail                                                                                  -4.1 %                                                                  1.0 %                                                                                         2.8 %                                                                    5.2 %
                  NOOK                                                                -86.6 %                                             -58.0 %                                                                    -72.9 %                                               -65.2 %
                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------
Total                                                                                                     -6.6 %                                                                 -1.6 %                                                                                         0.4 %                                                                    2.1 %
                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                              
                                                                                         BARNES & NOBLE, INC. AND SUBSIDIARIES
                                                                                              Consolidated Balance Sheets
                                                                                                    (In thousands)
                                                                                                      (Unaudited)
                                                                                       
------------------------------------------------------------------ -------------------- ------------------------------------------------------------------------- -----------------------------------------------------
                                                                                        April 30, 2016                                           May 2, 2015
                                                                                        -----------------------------------------------------                     -----------------------------------------------------
                                                                                                                                                                   
         ASSETS
Current assets:
   Cash and cash equivalents                                                                               $     13,838                                                              $     14,646
   Receivables, net                                                                                             124,917                                                                    60,265
   Merchandise inventories, net                                                                                 933,723                                                                   995,738
   Prepaid expenses and other current assets                                                                    105,912                                                                    93,965
Short-term deferred taxes                                                                                             -                                                                         -
Current assets of discontinued operations                                                          -                             447,626  
                                                                                        -------------------- ---------- --------------------                      -------------------- ---------- --------------------
        Total current assets                                                                                  1,178,390                                                                 1,612,240
                                                                                                                                                                   
Property and equipment:
   Land and land improvements                                                                                     2,541                                                                     2,541
   Buildings and leasehold improvements                                                                       1,058,452                                                                 1,057,975
   Fixtures and equipment                                                                  1,560,005                           1,531,315  
                                                                                        -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                                                                              2,620,998                                                                 2,591,831
   Less accumulated depreciation and amortization                                          2,322,418                           2,250,096  
                                                                                        -------------------- ---------- --------------------                      -------------------- ---------- --------------------
      Net property and equipment                                                             298,580                             341,735  
                                                                                        -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                                                                                                                                   
Goodwill                                                                                                        211,276                                                                   215,197
Intangible assets, net                                                                                          310,904                                                                   315,653
Other noncurrent assets                                                                                          13,632                                                                     7,905
Noncurrent assets of discontinued operations                                                       -                             619,701  
                                                                                        -------------------- ---------- --------------------                      -------------------- ---------- --------------------
   Total assets                                                                                            $  2,012,782                                           $  3,112,431  
                                                                                        ==================== ========== ====================                      ==================== ========== ====================
                                                                                                                                                                   
          LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
   Accounts payable                                                                                        $    480,574                                                              $    484,574
   Accrued liabilities                                                                                          360,194                                                                   326,660
Gift card liabilities                                                                                           353,103                                                                   358,146
   Current liabilities of discontinued operations                                                  -                             303,613  
                                                                                        -------------------- ---------- --------------------                      -------------------- ---------- --------------------
      Total current liabilities                                                            1,193,871                           1,472,993  
                                                                                        -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                                                                                                                                   
Long-term debt                                                                                                   47,200                                                                         -
Deferred taxes                                                                                                   54,017                                                                    15,795
Other long-term liabilities                                                                                     114,184                                                                   162,209
Noncurrent liabilities of discontinued operations                                                                     -                                                                    76,017
                                                                                                                                                                   
Redeemable Preferred Shares                                                                                           -                                                                   196,059
                                                                                                                                                                   
Preferred Member Interests in NOOK Media, LLC                                                                         -                                                                         -
                                                                                                                                                                   
Shareholders’ equity:
   Common stock; $0.001 par value; 300,000 shares authorized;
    111,228 and 98,115 shares issued, respectively                                                                  112                                                                        98
   Additional paid-in capital                                                                                 1,738,034                                                                 1,927,997
   Accumulated other comprehensive loss                                                                             151                                                                   (16,533 )
   Retained earnings                                                                                            (24,349 )                                                                 357,512
   Treasury stock, at cost, 37,941 and 34,841 shares, respectively                        (1,110,438 )                                           (1,079,716 )
                                                                                        -------------------- ---------- --------------------                      -------------------- ---------- --------------------
      Total shareholders’ equity                                                             603,510                           1,189,358  
                                                                                        -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Commitments and contingencies                                                                      -                                   -  
                                                                                        -------------------- ---------- --------------------                      -------------------- ---------- --------------------
   Total liabilities and shareholders’ equity                                                              $  2,012,782                                           $  3,112,431  
                                                                                        ==================== ========== ====================                      ==================== ========== ====================
                                                                                                                                                                                                   
                                                                                                                                                                                                   
                                                                                                                                                                 BARNES & NOBLE, INC. AND SUBSIDIARIES
                                                                                                                                                                       Earnings (Loss) Per Share
                                                                                                                                                                 (In thousands, except per share data)
                                                                                                                                                                              (Unaudited)
                                                                                                                                                              
-------------------------------------------------------------------------- -------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------
                                                                                                                                                                                                                                        
                                                                                                                  13 weeks ended                                                         13 weeks ended                                                         52 weeks ended                                                         52 weeks ended
                                                                                                                  April 30, 2016                                                           May 2, 2015                                                          April 30, 2016                                                           May 2, 2015
                                                                                                --------------------------------------------------                     --------------------------------------------------                     --------------------------------------------------                     --------------------------------------------------
Numerator for basic income (loss) per share:
Net income (loss) from continuing operations attributable to Barnes                                                $ (30,608 )                                                            $  (3,019 )                                                            $  14,700                                                              $  32,872
& Noble, Inc.
     Inducement fee paid upon conversion of Series J preferred stock                                                       -                                                                      -                                                                 (3,657 )                                                                    -
     Preferred stock dividends                                                                                             -                                                                 (3,942 )                                                                    -                                                                (15,767 )
     Preferred stock dividends paid in shares                                                                              -                                                                      -                                                                 (1,783 )                                                                    -
     Accretion of dividends on preferred stock                                                                             -                                                                   (315 )                                                               (4,204 )                                                               (7,339 )
     Less allocation of dividends to participating securities                                                           (220 )                                                                    -                                                                 (1,219 )                                                                    -
     Less allocation of undistributed earnings to participating securities                              -                                -                                -                             (535 )
                                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Net income (loss) from continuing operations available to common                                                     (30,828 )                                                               (7,276 )                                                                3,837                                                                  9,231
shareholders
Net income (loss) from discontinued operations attributable to                                                             -                                                                (16,402 )                                                              (39,146 )                                                                3,724
Barnes & Noble, Inc.
     Less allocation of undistributed earnings to participating securities                              -                                -                                -                             (204 )
                                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Net income (loss) from discontinued operations available to common                                      -                          (16,402 )                                           (39,146 )                                             3,520  
shareholders
                                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Net income (loss) available to common shareholders                                                                 $ (30,828 )                                                            $ (23,678 )                                                            $ (35,309 )                                                            $  12,751  
                                                                                                ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                      
Numerator for diluted income (loss) per share:
Net income (loss) from continuing operations available to common                                                   $ (30,828 )                                                            $  (7,276 )                                                            $   3,837                                                              $   9,231
shareholders
     Preferred stock dividends (a)                                                                                         -                                                                      -                                                                      -                                                                      -
     Accretion of dividends on preferred stock (a)                                                                         -                                                                      -                                                                      -                                                                      -
     Allocation of undistributed earnings to participating securities                                                      -                                                                      -                                                                      -                                                                    535
     Less diluted allocation of undistributed earnings to participating                                 -                                -                                -                             (534 )
     securities
                                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Net income (loss) from continuing operations available to common                                                     (30,828 )                                                               (7,276 )                                                                3,837                                                                  9,232
shareholders
Net income (loss) from discontinued operations available to common                                                         -                                                                (16,402 )                                                              (39,146 )                                                                3,520
shareholders
     Allocation of undistributed earnings to participating securities                                                      -                                                                      -                                                                      -                                                                    204
     Less diluted allocation of undistributed earnings to participating                                 -                                -                                -                             (204 )
     securities
                                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Net income (loss) from discontinued operations available to common                                      -                          (16,402 )                                           (39,146 )                                             3,520  
shareholders
                                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Net income (loss) available to common shareholders                                                                 $ (30,828 )                                                            $ (23,678 )                                                            $ (35,309 )                                                            $  12,752  
                                                                                                ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                      
Denominator for basic income (loss) per share:
Basic weighted average common shares                                                                                  73,680                                                                 63,198                                                                 72,410                                                                 60,842
                                                                                                                                                                                                                                                                                                                      
Denominator for diluted income (loss) per share:
Basic weighted average common shares                                                                                  73,680                                                                 63,198                                                                 72,410                                                                 60,842
     Preferred shares (a)                                                                                                  -                                                                      -                                                                      -                                                                      -
     Average dilutive options                                                                                              -                                                                      -                                                                    118                                                                     86
     Average dilutive non-participating securities                                                      -                                -                               14                                -  
                                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Diluted weighted average common shares                                                             73,680                           63,198                           72,542                           60,928  
                                                                                                ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                      
Basic income (loss) per common share:
                                                                                                                   $   (0.42 )                                                            $   (0.12 )                                                            $    0.05                                                              $    0.15
     Income (loss) from continuing operations
                                                                                                        -                            (0.26 )                                             (0.54 )                                              0.06  
     Income (loss) from discontinued operations
                                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Basic income (loss) per common share                                                                               $   (0.42 )                                                            $   (0.37 )                                                            $   (0.49 )                                                            $    0.21  
                                                                                                ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
 
Diluted income (loss) per common share:
                                                                                                                   $   (0.42 )                                                            $   (0.12 )                                                            $    0.05                                                              $    0.15
     Income (loss) from continuing operations
                                                                                                        -                            (0.26 )                                             (0.54 )                                              0.06  
     Income (loss) from discontinued operations
                                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Diluted income (loss) per common share                                                                             $   (0.42 )                                                            $   (0.37 )                                                            $   (0.49 )                                                            $    0.21  
                                                                                                ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
 
                                                                                                                                                                                                                                                                                                                      
(a) Although the Company was in a net income position during the
52 weeks ended April 30, 2016 and May 2, 2015, the dilutive effect
of the Company’s convertible preferred shares was excluded from
the calculation of income per share using the two-class method
because the effect would be antidilutive.
 
 
                                                                                        BARNES & NOBLE, INC. AND SUBSIDIARIES
                                                                                  Forward Looking Statement Non-GAAP Reconciliation
                                                                                                    (In millions)
                                                                                                     (Unaudited)
                                                  
-------------------- ----------------------------- -------------------- -------------------- --------------------------------------------------------------------- -------------------------------------------------
                                                                                                         
                                                                                                                                                                    
                                                                                                                                              Forward Looking Range
                                                                                             -----------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                    
EBITDA
---------------------------------------------------
                     Retail                                                                                     $    240                                                              $    280
                     NOOK                                                                         (40 )                                              (30 )
                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------
Total                                                                                                           $    200                                           $    250  
                                                                                             ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                    
Operating Profit
                     EBITDA                                                                                     $    200                                                              $    250
                     Depreciation and amortization                                               (120 )                                             (120 )
                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------
Total                                                                                                           $     80                                           $    130  
                                                                                             ==================== ====== ====================                      ==================== ====== ====================

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160622006404r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160622006404/en/

SOURCE: Barnes & Noble, Inc.

Barnes & Noble, Inc. 
Media: 
Mary Ellen Keating, 212-633-3323 
Senior Vice President 
Corporate Communications 
mkeating@bn.com 
or 
Investor: 
Andy Milevoj, 212-633-3489 
Vice President, Investor Relations 
amilevoj@bn.com


Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2017 StockSelector.com. All rights reserved.