Books-A-Million, Inc. Announces Second Quarter Results

  Books-A-Million, Inc. Announces Second Quarter Results

Business Wire

BIRMINGHAM, Ala. -- August 27, 2013

Books-A-Million, Inc. (NASDAQ:BAMM) today announced financial results for the
13-week and 26-week periods ended August 3, 2013. Net revenues for the 13-week
period ended August 3, 2013 decreased 8.6% to $109.2 million, compared with
revenues of $119.5 million in the year-earlier period. Comparable store sales
for the second quarter declined 12.0%, compared with the 13-week period in the
prior year. Net loss from continuing operations for the second quarter was
$9.0 million, or $0.61 per diluted share, compared with net loss from
continuing operations of $0.9 million, or $0.06 per diluted share, in the
year-earlier period.

For the 26-week period ended August 3, 2013, net revenues decreased 8.0% to
$213.2 million from net revenues of $231.8 million in the year-earlier period.
Comparable store sales declined 9.5%, compared with the same period in the
prior year. For the 26-week period ended August 3, 2013, the Company reported
a net loss from continuing operations of $12.6 million, or $0.86 per diluted
share, compared with net loss from continuing operations of $2.8 million, or
$0.18 per diluted share, in the year-earlier period.

The results for the 13-week and 26-week periods ended August 3, 2013 include
higher income tax expense due to the recording of a non-cash valuation
allowance and the reversal of related Q1 tax benefits. These adjustments were
required by accounting guidance due to cumulative losses in recent years. The
impact of these adjustments on second quarter results was $7.3 million or
$0.50 per diluted share. Excluding this tax item, the loss for the 13-week and
26-week periods ended August 3, 2013 would have been $0.11 per diluted share
and $0.36 per diluted share, respectively.

Commenting on the results, Terrance G. Finley, Chief Executive Officer and
President, said, "Results for the quarter reflect the very tough comparisons
to the prior year due to the unprecedented success of the Hunger Games series
and the Fifty Shades of Grey trilogy. In addition we continued to see
softening in sales of e-reading devices and slower growth of digital content.
Our general merchandise categories and internet business performed well in the
quarter.”

ABOUT BOOKS-A-MILLION, INC.

Books-A-Million, Inc. is one of the nation’s leading book retailers and sells
on the Internet at www.booksamillion.com. The Company presently operates 255
stores in 33 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 (http://twitter.com/booksamillion) and like
us on Facebook (http://facebook.com/booksamillion).

                                                    
    BOOKS-A-MILLION, INC.

    Unaudited Consolidated Financial Highlights

    (In thousands, except per share data)
                                                           
                           Thirteen Weeks Ended            Twenty-Six Weeks Ended
                           August 3,     July 28,        August 3,     July 28,
                           2013            2012            2013            2012
                                           (a)                             (a)
    Net sales            $ 109,225       $ 119,536       $ 213,239       $ 231,798
    Cost of products
    sold, including
    warehouse              78,160         86,088         153,620        167,678 
    distribution and
    store occupancy
    costs
    Gross profit           31,065          33,448          59,619          64,120
    Operating,
    selling and            29,270          30,368          58,608          59,092
    administrative
    expenses
    Depreciation and       4,448          4,105          8,727          8,238   
    amortization
    Operating loss
    from continuing        (2,653  )       (1,025  )       (7,716  )       (3,210  )
    operations
    Interest               430            452            893            890     
    expense, net
    Loss from
    continuing
    operations,            (3,083  )       (1,477  )       (8,609  )       (4,100  )
    before income
    taxes
    Income tax
    expense                6,054          (602    )       4,017          (1,428  )
    (benefit)^(c)
    Net loss from
    continuing
    operations             (9,137  )       (875    )       (12,626 )       (2,672  )
    before equity
    method
    investment
    Net income
    (loss) on equity       144            21             (2      )       (81     )
    method
    investment
    Net loss from
    continuing             (8,993  )       (854    )       (12,628 )       (2,753  )
    operations
    Loss from
    discontinued           (138    )       (27     )       (207    )       (70     )
    operations
    Net loss             $ (9,131  )     $ (881    )     $ (12,835 )     $ (2,823  )
    Less net loss
    attributable to        (21     )       --             (21     )       --      
    noncontrolling
    interest^(b)
    Net loss
    attributable to      $ (9,110  )     $ (881    )     $ (12,814 )     $ (2,823  )
    Books-A-Million
                                                                           
    Net loss per
    share
    attributable to
    Books-A-Million:
    Basic and
    Diluted
    Net loss from
    continuing           $ (0.61   )     $ (0.06   )     $ (0.86   )     $ (0.18   )
    operations
    Net loss from
    discontinued           (0.01   )       (0.00   )       (0.01   )       (0.00   )
    operations
    Net loss per         $ (0.62   )     $ (0.06   )     $ (0.87   )     $ (0.18   )
    common share
    Weighted average
    number of shares
    outstanding –          14,673         15,365         14,758         15,354  
    basic and
    diluted
                                                                                   
    The results for the 13-weeks and 26-weeks ended July 28, 2012, contain certain
(a) reclassifications for discontinued operations and other insignificant
    reclassifications necessary to conform to the presentation of the 13-weeks and
    26-weeks ended August 3, 2013.
    Noncontrolling interest has been recognized as a result of the acquisition and
(b) subsequent consolidation of a controlling interest in Yogurt Mountain Holding,
    LLC.
    Income tax expense for the 13-weeks and 26-weeks ended August 3, 2013 includes
(c) non-cash adjustments of $7.3 million for valuation allowance and current year
    tax benefit reversals.
    

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, 205-909-4808
Chief Financial Officer
 
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