Books-A-Million, Inc. Announces Fourth Quarter and Annual Results

  Books-A-Million, Inc. Announces Fourth Quarter and Annual Results

               Operating Income Increases 22.0% in the Quarter

                   Annual Net Income Increases $5.0 Million

Business Wire

BIRMINGHAM, Ala. -- March 27, 2013

Books-A-Million, Inc. (NASDAQ:BAMM) today announced financial results for the
14-week and 53-week periods ended February 2, 2013. This quarter reflects an
extra week in fiscal 2013, creating a 53-week fiscal year that occurs
approximately every six years in the accounting cycle for most retailing
companies. Net sales for the 14-week period ended February 2, 2013 decreased
0.8% to $165.6 million compared with sales of $166.9 million in the 13-week
year-earlier period. Comparable store sales for the fourth quarter, which
include comparable 13-week periods this year and last year, decreased 6.1%
compared with the same period last year. Operating income increased 22.0% to
$14.7 million for the 14-week period ended February 2, 2013, compared with
$12.0 million in the 13-week period ended January 28, 2012. Net income from
continuing operations for the current year fourth quarter was $8.1 million, or
$0.52 per diluted share, compared with net income from continuing operations
of $7.6 million, or $0.48 per diluted share, in the 13-week year-earlier
period.

For the 53-week period ended February 2, 2013, net sales increased 7.5% to
$503.8 million from net sales of $468.5 million in the 52-week year-earlier
period. Comparable store sales, which include comparable 52-week periods this
year and last year, declined 3.6%. Operating income was $6.9 million for the
53-week period ended February 2, 2013, compared with a loss of $4.0 million in
the 52-week period ended January 28, 2012. For the 53-week period ended
February 2, 2013, the Company reported net income from continuing operations
of $2.5million, or $0.16 per diluted share, compared to a net loss from
continuing operations of $2.5million, or $0.16 per diluted share, in the
52-week year-earlier period.

Commenting on the results, Terrance G. Finley, Chief Executive Officer and
President, said, “We were pleased with our results for the quarter and the
fiscal year. Our core book business stabilized, our general merchandise
categories performed well and we experienced a significant change in the
digital arena, with device sales weaker than expected and digital content
sales growing at a markedly slower rate. We are adjusting our merchandising
strategy to reflect the fast changing industry dynamics and focusing on
growing our business by offering the best value and customer experience in
books, toys, tech and more.”

ABOUT BOOKS-A-MILLION, INC.

Books-A-Million, Inc. is one of the nation’s leading book retailers and also
sells on the Internet at www.booksamillion.com. The Company presently operates
253 stores in 32 states and the District of Columbia. The Company operates
large superstores under the names Books-A-Million (BAM!), Books & Co. and 2nd
& Charles and traditional bookstores operating under the names Bookland and
Books-A-Million. The common stock of Books-A-Million, Inc. is traded on the
NASDAQ Global Select Market under the symbol BAMM. For more information, visit
the Company’s corporate website at www.booksamillioninc.com.

Follow Books-A-Million on Twitter (www.twitter.com/booksamillion) and like us
on Facebook (www.facebook.com/booksamillion).





BOOKS-A-MILLION, INC.
Unaudited Consolidated Financial Highlights
(In thousands, except per share data and share amounts)

                                                
                   Fiscal Quarter Ended              Fiscal Year Ended
                   February 2,      January 28,      February 2,      January 28,
                                                                 
                   2013             2012 (a)         2013             2012 (a)
                   14 Weeks         13 Weeks         53 Weeks         52 Weeks
                                                                      
Net sales        $ 165,551        $ 166,935        $ 503,787        $ 468,521
Cost of
products sold,
including
warehouse          111,606         116,235         357,997         335,791    
distribution
and store
occupancy
costs
Gross profit       53,945           50,700           145,790          132,730
Operating,
selling and        34,813           34,156           122,032          120,426
administrative
expenses
Depreciation
and                4,441           4,507           16,847          16,301     
amortization
Operating
income (loss)
from               14,691           12,037           6,911            (3,997     )
continuing
operations
Interest           396             399             1,725           1,341      
expense, net
Income (loss)
from
continuing         14,295           11,638           5,186            (5,338     )
operations,
before Income
taxes
Income tax
expense            5,621           3,465           1,859           (3,144     )
(benefit)
Net income
(loss) from
continuing
operations         8,674            8,173            3,327            (2,194     )
before equity
method
investment
Net loss on
equity method      (531       )     (609       )     (782       )     (300       )
investment
Net income
(loss) from        8,143            7,564            2,545            (2,494     )
continuing
operations
Loss from
discontinued       --              (22        )     --              (329       )
operations
Net income       $ 8,143         $ 7,542         $ 2,545         $ (2,823     )
(loss)
                                                                      
                                                                      
Net income
(loss) per
share (b):
Basic:
Net income
(loss) from      $ 0.52           $ 0.48           $ 0.16           $ (0.16      )
continuing
operations
Net income
(loss) from        --              --              --              (0.02      )
discontinued
operations
Net income
(loss) per       $ 0.52          $ 0.48          $ 0.16          $ (0.18      )
common share
Weighted
average number     15,008,092      15,719,355      15,245,892      15,729,406 
of shares
outstanding
Diluted:
Net income
(loss) from      $ 0.52           $ 0.48           $ 0.16           $ (0.16      )
continuing
operations
Net income
(loss) from        --              --              --              (0.02      )
discontinued
operations
Net income
(loss) per       $ 0.52          $ 0.48          $ 0.16          $ (0.18      )
common share
Weighted
average number     15,008,101      15,719,409      15,245,905      15,729,406 
of shares
outstanding

(a) The results for 13-weeks and 52-weeks ended January 28, 2012, contain certain
insignificant reclassifications necessary to conform to the presentation of the
14-weeks and 53-weeks ended February 2, 2013.
(b) Basic and diluted net income per share amounts were calculated using the
two-class method. Net income used in these calculations is exclusive of
undistributed earnings allocated to non-vested shareholders of $273,256 for the
fiscal quarter ended February 2, 2013 and $90,932 for the fiscal year ended
February 2, 2013.




Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995:

This document contains certain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 that involve a number
of risks and uncertainties. A number of factors could cause actual results,
performance, achievements of the Company or industry results to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. These factors include, but are not
limited to, the competitive environment in the book retail industry in general
and in the Company's specific market area; inflation; economic conditions in
general and in the Company's specific market areas; the number of store
openings and closings; the profitability of certain product lines, capital
expenditures and future liquidity; liability and other claims asserted against
the Company; uncertainties related to the Internet and the Company's Internet
initiative; and the impact of the availability of e-content and the e-reader
market. In addition, such forward-looking statements are necessarily dependent
upon assumptions, estimates and dates that may be incorrect or imprecise and
involve known and unknown risks, uncertainties and other factors. Accordingly,
any forward-looking statements included herein do not purport to be
predictions of future events or circumstances and may not be realized. Given
these uncertainties, stockholders and prospective investors are cautioned not
to place undue reliance on such forward-looking statements. Please refer to
the Company’s annual, quarterly and periodic reports on file with the SEC for
a more detailed discussion of these and other risks that could cause results
to differ materially. The Company disclaims any obligations to update any such
factors or to publicly announce the results of any revisions to any of the
forward-looking statements contained herein to reflect future events or
developments.

Contact:

Books-A-Million, Inc.
R. Todd Noden, Chief Financial Officer, 205-942-4808
 
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