Books-A-Million, Inc. operates as a book retailer primarily located in the eastern United States. The company operates both superstores and traditional bookstores. Segments The company operates in three segments: Retail trade, Electronic Commerce Trade, and Real Estate Development and Management. In the Retail Trade segment, the company is primarily engaged in the retail sale of books, magazines and general merchandise, including gifts, cards, games, toys, collectibles, music, DVDs, electronic devices and accessories at its retail stores. The retail trade segment includes its distribution center operations, which predominantly supply merchandise to its retail stores, as well as Yogurt Mountain owned stores and franchises. In the Electronic Commerce Trade segment, the company is engaged in the retail sale of books and general merchandise over the Internet. The Real Estate Development and Management segment is managed separately from the retail trade and electronic commerce trade segments, with a focus on developing and leasing commercial retail real estate for purposes of earning rental income. Retail Stores The company’s superstores are designed to be a receptive and open environment conducive to browsing, reading and shopping and include ample space for promotional events open to the public, including book autograph sessions and children’s storytelling. The company operated 196 superstores, as of January 31, 2015. Each of its superstores offers a selection of books, magazines and general merchandise, including gifts, cards, games, toys, collectibles, music, DVDs, electronic devices and accessories. The majority of its superstores also include either a Joe Muggs café, serving Joe Muggs coffee and assorted pastries and other edible items, or a Yogurt Mountain, serving frozen yogurt with self-serve toppings. The company operated 60 traditional stores, as of January 31, 2015. The company’s Yogurt Mountain locations offer self serve frozen yogurt and toppings. Yogurt Mountain stores are located in strip shopping centers, although some are located within its superstore locations. As of January 31, 2015, there were 25 owned locations, of which 14 were located within its superstores. The company also manages 17 franchise locations. The company promotes its bookstores principally through the use of traditional direct mail, e-mail and online advertising, as well as through point-of-sale materials posted and distributed in its stores. Internet Operations On booksamillion.com, the company sells a selection of books, magazines and general merchandise, including gifts, cards, games, toys, collectibles, music, DVDs, electronic devices and accessories and other products similar to those sold in its superstores. The company’s Internet operations also include bulk sales to businesses. Real Estate Development and Management The real estate development and management segment of the company’s business is focused on developing and leasing commercial real estate properties. As of January 31, 2015, the company owned four commercial real estate properties. Suppliers The company purchases the majority of its collectors’ supplies from Anderson Press, Inc. and substantially all of its magazines from Anderson Media Corporation. Seasonality The company’s business is seasonal, with the highest retail sales, gross profit and net income historically occurring in its fourth quarter. This seasonal pattern reflects the increased demand for books and gifts during the year-end holiday selling season. Working capital requirements are generally at their highest during the third quarter and the early part of the fourth quarter due to the seasonality of its business. Consequently, its results of operations depend significantly upon net sales generated during the fourth quarter, and any significant adverse trend in the net sales of such period would likely have a material adverse effect on its results of operations for the full year. Trademarks The primary trademarks of the company are as follows: Books-A-Million, BAM!, BAM! Books-A-Million, Bookland, Books & Co., 2nd & Charles, Books are Just the Beginning, Millionaire’s Club, Sweet Water Press, Thanks-A-Million, Up All Night Reader, Read & Save Rebate, Readables Accessories for Readers, Kids-A-Million, Toys-A-Million, Teachers First, The Write Price, Bambeanos, Hold That Thought, Book$mart, BAMM, BAMM.com, BOOKSAMILLION.com, BAM.com, BOOKSAMILLION.COM, Chillatte, Joe Muggs Newsstand, Page Pets, JOEMUGGS.com, FAITHPOINT, Joe Muggs, Snow Joe, Summer Says, On the John University, OTJU, American Wholesale Book Company, AWBC, PROTECTIT and NetCentral. Competition The company faces direct competition from other superstores, such as Barnes & Noble, and it also faces competition from mass merchandisers, such as Wal-Mart and Costco, and online retailers, such as Amazon.com, Barnes & Noble and Wal-Mart. The company’s Internet operations face competition from online retailers, such as Amazon.com, Barnes & Noble and Wal-Mart. History Books-A-Million, Inc. was founded in 1917. The company was incorporated under the laws of the state of Alabama in 1964 and reincorporated in Delaware in 1992.
books-a-million inc (BAMM:NASDAQ GS)
402 Industrial Lane
Birmingham, AL 35211
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