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

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

                        Bookstore Sales Trends Improve

Business Wire

BIRMINGHAM, Ala. -- March 20, 2014

Books-A-Million, Inc. (NASDAQ:BAMM) today announced financial results for the
13-week and 52-week periods ended February 1, 2014. Revenues for the 13-week
period ended February 1, 2014 decreased 3.7% to $157.9 million, compared with
revenues of $163.9 million in the 14-week year-earlier period. Comparable
store sales for the fourth quarter, which include comparable 13-week periods
this year and last year declined 1.8%, compared with the same period last
year. Operating income decreased 7.5% to $13.5 million for the 13-week period
ended February 1, 2014, compared with operating income of $14.6 million in the
14-week period ended February 2, 2013. Net income from continuing operations
for the fourth quarter was $11.2 million, or $0.77 per diluted share, compared
with net income from continuing operations of $8.1 million, or 0.52 per
diluted share, in the year-earlier period.

For the 52-week period ended February 1, 2014, revenues decreased 5.6% to
$470.3 million from net revenues of $498.4 million in the 53-week year-earlier
period. Comparable store sales, which include comparable 52-week periods this
year and last year, declined 6.8%. Operating loss was $1.5 million for the
52-week period ended February 1, 2014, compared with operating income of $7.0
million in the 53-week period ended February 2, 2013. For the 52-week period
ended February 1, 2014, the Company reported a net loss from continuing
operations of $8.7 million, or $0.54 per diluted share, compared with net
income from continuing operations of $2.6 million, or $0.16 per diluted share,
in the year-earlier period.

Commenting on the results, Terrance G. Finley, Chief Executive Officer and
President, said, "We were pleased with our performance in the fourth quarter.
We saw our core book business improve from the trends we experienced earlier
in the year driven by a strong lineup of new titles. Our new business
initiatives also performed well supported by consumer enthusiasm in pop
culture, movies and media. Our team executed our plan admirably despite the
challenges presented by the weather in both December and January.”

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 256
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 43 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
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BOOKS-A-MILLION, INC.
Unaudited Consolidated Financial Highlights
(In thousands, except per share data and share amounts)

                      Fiscal Quarter Ended           Fiscal Year Ended
                       February 1,       February      February      February
                                        2,            1,           2,
                       2014
                                         2013 (a)      2014          2013 (a)
                       13 Weeks          14 Weeks      52 Weeks      53 Weeks
Revenue
Net sales           $  157,297        $  163,663     $ 468,420     $ 497,946
Other revenue          609              275          1,881        493     
Total revenues         157,906           163,938       470,301       498,439
Cost of products
sold, including
warehouse              106,998          110,223      333,791      353,447 
distribution and
store occupancy
costs
Gross profit           50,908            53,715        136,510       144,992
Operating,
selling and            32,555            34,698        119,638       121,267
administrative
expenses
Depreciation and       4,868            4,423        18,351       16,765  
amortization
Operating income
(loss) from            13,485            14,594        (1,479  )     6,960
continuing
operations
Interest               567              400          2,079        1,729   
expense, net
Income (loss)
from continuing
operations,            12,918            14,194        (3,558  )     5,231
before income
Taxes
Income tax
expense                1,803            5,586        5,289        1,874   
(benefit)
Net income
(loss) from
continuing
operations             11,115            8,608         (8,847  )     3,357
before equity
method
investment
Net income
(loss) on equity       44               (531    )     157          (782    )
method
investment
Net income
(loss) from            11,159            8,077         (8,690  )     2,575
continuing
operations
Income (loss)
from                   (6       )        66           (130    )     (30     )
discontinued
operations
Net income          $  11,153         $  8,143       $ (8,820  )   $ 2,545
(loss)
Less net loss
attributable to        (562     )        --           (779    )     --      
noncontrolling
interest
Net income
(loss)              $  11,715        $  8,143      $ (8,041  )   $ 2,545   
attributable to
Books-A-Million
                                                                     
Net income
(loss) per
share:
Basic
Net income
(loss) from
continuing          $  0.77           $  0.52        $ (0.54   )   $ 0.16
operations
attributable to
Books-A-Million
Net income
(loss) from
discontinued           (0.00    )        0.00         (0.01   )     (0.00   )
operations
attributable to
Books-A-Million
Net income
(loss) per
common share        $  0.77          $  0.52       $ (0.55   )   $ 0.16    
attributable to
Books-A-Million
Weighted average
number of shares       14,659           15,008       14,708       15,246  
outstanding
Diluted
Net income
(loss) from
continuing          $  0.77           $  0.52        $ (0.54   )   $ 0.16
operations
attributable to
Books-A-Million
Net income
(loss) from
discontinued           (0.00    )        0.00         (0.01   )     (0.00   )
operations
attributable to
Books-A-Million
Net income
(loss) per
common share        $  0.77          $  0.52       $ (0.55   )   $ 0.16    
attributable to
Books-A-Million
Weighted average
number of shares       14,659           15,008       14,708       15,246  
outstanding

(a) The results for the 14-weeks and 53-weeks ended February 2, 2013, contain
certain reclassifications for discontinued operations and other insignificant
reclassifications necessary to conform to the presentation of the 13-weeks and
52-weeks ended February 1, 2014.
(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 $0.5 million
and $0.3 million for the fiscal quarters ended February 1, 2014 and February
2, 2013, respectively, and $0.1 million 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, 205-909-4808
Chief Financial Officer
 
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