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

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

Business Wire

BIRMINGHAM, Ala. -- November 26, 2013

Books-A-Million, Inc. (NASDAQ:BAMM) today announced financial results for the
13-week and 39-week periods ended November 2, 2013. Revenues for the 13-week
period ended November 2, 2013 decreased 3.5% to $100.4 million, compared with
revenues of $104.0 million in the year-earlier period. Comparable store sales
for the third quarter declined 8.5%, compared with the 13-week period in the
prior year. Net loss from continuing operations for the third quarter was $7.1
million, or $0.47 per diluted share, compared with net loss from continuing
operations of $2.7 million, or $0.18 per diluted share, in the year-earlier
period.

For the 39-week period ended November 2, 2013, revenues decreased 6.6% to
$313.6 million from net revenues of $335.8 million in the year-earlier period.
Comparable store sales declined 9.2%, compared with the same period in the
prior year. For the 39-week period ended November 2, 2013, the Company
reported a net loss from continuing operations of $19.7 million, or $1.33 per
diluted share, compared with net loss from continuing operations of $5.4
million, or $0.36 per diluted share, in the year-earlier period.

Commenting on the results, Terrance G. Finley, Chief Executive Officer and
President, said, “Our third quarter results are an improvement over the very
difficult comparisons in the first half of the year. Comparable store sales
improved throughout the quarter, and we are encouraged by the book and
merchandise lineup as we prepare for the holiday season.”

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 258
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. Also included in the Company’s retail operations is the
operation of Yogurt Mountain Holding, LLC, a retailer and franchisor of
self-serve frozen yogurt stores with 41 locations. The Company also develops
and manages commercial real estate investments through its subsidiary,
Preferred Growth Properties. 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              Thirty-Nine Weeks Ended
                            November        October           November        October
                            2,            27,               2,            27,
                            2013            2012              2013            2012
                                            (a)                               (a)
    Revenue
    Net sales             $ 99,888        $ 103,904         $ 312,299       $ 335,563
    Other revenue           478            79               1,275          218     
    Total revenues          100,366         103,983           313,574         335,781
    Cost of
    products sold,
    including
    warehouse               74,119         76,511           227,709        244,189 
    distribution
    and store
    occupancy costs
    Gross profit            26,247          27,472            85,865          91,592
    Operating,
    selling and             28,686          27,697            87,294          86,789
    administrative
    expenses
    Depreciation
    and                     4,765          4,114            13,492         12,352  
    amortization
    Operating loss
    from continuing         (7,204  )       (4,339  )         (14,921 )       (7,549  )
    operations
    Interest                620            440              1,512          1,330   
    expense, net
    Loss from
    continuing
    operations,             (7,824  )       (4,779  )         (16,433 )       (8,879  )
    before income
    taxes
    Income tax
    expense                 (596    )       (2,256  )         3,422          (3,684  )
    (benefit)
    Net loss from
    continuing
    operations              (7,228  )       (2,523  )         (19,855 )       (5,195  )
    before equity
    method
    investment
    Net income
    (loss) on               113            (171    )         112            (252    )
    equity method
    investment
    Net loss from
    continuing              (7,115  )       (2,694  )         (19,743 )       (5,447  )
    operations
    Loss from
    discontinued            (22     )       (81     )         (229    )       (151    )
    operations
    Net loss              $ (7,137  )     $ (2,775  )       $ (19,972 )     $ (5,598  )
    Less net loss
    attributable to         (197    )       --               (218    )       --      
    noncontrolling
    interest
    Net loss
    attributable to       $ (6,940  )     $ (2,775  )       $ (19,754 )     $ (5,598  )
    Books-A-Million
                                                                              
    Net loss per
    share:
    Basic and
    Diluted
    Net loss from
    continuing
    operations            $ (0.47   )     $ (0.18   )       $ (1.33   )     $ (0.36   )
    attributable to
    Books-A-Million
    Net loss from
    discontinued
    operations              (0.00   )       (0.00   )         (0.01   )       (0.01   )
    attributable to
    Books-A-Million
    Net loss per
    common share          $ (0.47   )     $ (0.18   )       $ (1.34   )     $ (0.37   )
    attributable to
    Books-A-Million
    Weighted
    average number
    of shares               14,657         15,286           14,725         15,331  
    outstanding –
    basic and
    diluted
                                                                              
    The results for the 13-weeks and 39-weeks ended October 27, 2012, contain certain
(a) reclassifications for discontinued operations and other insignificant
    reclassifications necessary to conform to the presentation of the 13-weeks and
    39-weeks ended November 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, 205-909-4808
Chief Financial Officer
 
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