BASKING RIDGE, N.J.–(BUSINESS WIRE)–Barnes & Noble Schooling, Inc. (NYSE: BNED), a number one options supplier for the training business, as we speak reported gross sales and earnings for the primary quarter of fiscal 12 months 2022, which ended on July 31, 2021.
Barnes & Noble Schooling is a extremely seasonal enterprise, and the primary quarter is traditionally a interval of low gross sales exercise for the Firm. The Firm’s fiscal 2022 first quarter outcomes benefitted from the reopening of a majority of its campus shops, as in comparison with the 12 months in the past interval when a majority of shops have been closed in response to the onset of the COVID pandemic.
Monetary highlights for the primary quarter 2022:
- Consolidated first quarter GAAP gross sales of $240.Eight million elevated 18.0%, as in comparison with the prior 12 months interval.
- Consolidated first quarter GAAP internet lack of $(44.3) million, in comparison with a GAAP internet lack of $(46.7) million within the prior 12 months interval.
- Consolidated first quarter non-GAAP Adjusted Earnings of $(40.0) million, in comparison with non-GAAP Adjusted Earnings of $(41.7) million within the prior 12 months interval.
- Consolidated first quarter non-GAAP Adjusted EBITDA of $(24.5) million, in comparison with non-GAAP Adjusted EBITDA of $(38.0) million within the prior 12 months interval.
- Retail phase gross comparable retailer gross sales elevated 49.8%. For comparable retailer gross sales reporting functions, emblem and emblematic basic merchandise gross sales fulfilled by FLC and Fanatics are included on a gross foundation. Please see extra detailed definition within the First Quarter Outcomes desk and Retail phase dialogue beneath.
Operational highlights for the primary quarter 2022:
- Reached agreements for 65 campus shops to help the BNC First Day® Full courseware supply program in Fall Time period 2021, representing over 300,000 in whole undergraduate enrollment; up from 12 campus shops and 43,000 in whole undergraduate enrollment in Fall Time period 2020.
- BNC First Day® course supplies supply mannequin year-over-year income elevated 198%.
- Grew DSS income 41% to $8.Three million representing the best greenback income progress recorded for the DSS phase since its formation.
- Generated over 66,000 in new Bartleby gross subscribers, representing greater than 100% progress over the identical interval final 12 months.
- Entered right into a ten-year partnership with the College of Notre Dame underneath which Barnes & Noble School will handle all course supplies, retail, and on-line operations for the College’s campus retail shops starting subsequent 12 months.
“Our individuals, along with our campus companions, are excited to welcome college students again to campus for the 2021-2022 educational 12 months, whereas recognizing the necessity to proceed our joint deal with the well being and security of all we serve,” stated Michael P. Huseby, Chief Govt Officer and Chairman, BNED. “We’re excited to supply many extra college students our enhanced choices, together with superior course materials supply options throughout pupil selection and inclusive entry fashions designed to help improved pupil outcomes by way of entry, comfort and affordability, coupled with a considerably improved basic merchandise providing for all the colleges we serve ensuing from our strategic partnership with Fanatics and Lids. This partnership combines the ability of BNED’s educational options and our established retail experience with Fanatics’ and Lids’ new and progressive in-store and e-commerce retail options, which led to our new long-term partnership with the College of Notre Dame to handle their retail shops and on-line operations efficient after this educational 12 months. We anticipate our progressive educational options choices, unparalleled merchandise assortment and our new best-in-class omnichannel buyer expertise, to supply an unparalleled buyer worth proposition for the establishments we serve and to speed up market share progress.”
|
First Quarter Outcomes for 2022 Outcomes for the 13 weeks of fiscal 2022 and financial 2021 are as follows: |
|||||||||
|
$ in tens of millions |
Chosen Information (unaudited) |
||||||||
|
|
13 Weeks |
|
13 Weeks |
|
|||||
|
Whole Gross sales |
$ |
240.8 |
|
|
$ |
204.0 |
|
|
|
|
Web Loss |
$ |
(44.3 |
) |
|
$ |
(46.7 |
) |
|
|
|
|
|
|
|
|
|||||
|
Non-GAAP(1) |
|||||||||
|
|
|||||||||
|
Adjusted EBITDA |
$ |
(24.5 |
) |
$ |
(38.0 |
) |
|||
|
Adjusted Earnings |
$ |
(40.0 |
) |
|
$ |
(41.7 |
) |
|
|
|
Retail Gross Comparable Retailer Gross sales Variances (2) |
$ |
73.6 |
|
|
$ |
(106.6 |
) |
|
|
| (1) These non-GAAP monetary measures have been reconciled within the hooked up schedules to essentially the most immediately comparable GAAP measure as required underneath SEC guidelines relating to using non-GAAP monetary measures. |
|
(2) Retail Gross Comparable Retailer Gross sales contains gross sales from bodily and digital shops which have been open for a complete fiscal 12 months interval and doesn’t embrace gross sales from closed shops for all intervals introduced. As per our merchandising settlement with Fanatics Lids School, Inc. (“FLC”) and e-commerce settlement with Fanatics, in-store and on-line emblem and emblematic basic merchandise gross sales fulfilled by FLC and Fanatics, respectively, are acknowledged on a internet fee income foundation, as in comparison with the popularity of emblem and emblematic gross sales on a gross foundation within the prior 12 months interval. For Retail Gross Comparable Retailer Gross sales (non-GAAP) functions, gross sales for emblem and emblematic basic merchandise fulfilled by FLC, Fanatics and digital company gross sales are included on a gross foundation. |
The Firm has three reportable segments: Retail, Wholesale and Digital Scholar Options (“DSS”). Unallocated shared-service prices, which embrace numerous company degree bills and different governance capabilities, proceed to be introduced as Company Providers. All materials intercompany accounts and transactions have been eradicated in consolidation.
Retail Section Outcomes
Retail gross sales elevated by $51.7 million, or 32.6%, as in comparison with the prior 12 months interval. Retail Gross Comparable Retailer Gross sales (non-GAAP) elevated 49.8% for the quarter, with comparable textbook gross sales growing 21.9%, as in comparison with a 10.1% decline a 12 months in the past. BNC’s First Day providing, which presents digital textbooks and interactive courseware, continued to exhibit sturdy progress, with gross sales nearly tripling to $27.Zero million throughout the quarter, as in comparison with $9.Zero million within the prior 12 months interval. Retail Gross Comparable Retailer Gross sales for basic merchandise elevated 118.4%, as in comparison with a 68.3% decline a 12 months in the past. Gross sales benefitted from the return of many college students to campus and the reopening of most of our campus shops, the vast majority of which have been closed within the 12 months in the past interval resulting from COVID.
As per our merchandising settlement with Fanatics Lids School, Inc. (“FLC”) and e-commerce settlement with Fanatics, on a consolidated GAAP gross sales foundation, in-store and on-line emblem and emblematic basic merchandise gross sales fulfilled by FLC and Fanatics, respectively, are acknowledged on a internet fee income foundation, as in comparison with the popularity of emblem and emblematic gross sales on a gross foundation within the prior 12 months interval. For comparable gross sales functions, gross sales for emblem and emblematic basic merchandise fulfilled by FLC and Fanatics are included on a gross foundation.
Retail non-GAAP Adjusted EBITDA for the quarter improved by $21.Zero million to $(19.6) million, as in comparison with non-GAAP Adjusted EBITDA of $(40.6) million within the prior 12 months interval. Non-GAAP Adjusted EBITDA benefited from improved gross sales and better gross margin on the favorable gross sales combine, partially offset by larger promoting and administrative bills, which elevated on account of the shop reopenings.
Wholesale Section Outcomes
Wholesale first quarter gross sales of $44.5 million decreased $35.Eight million, or 44.6%, as in comparison with the prior 12 months interval. The gross sales decline was primarily because of the comparability to the 12 months in the past interval when the Firm shifted greater than 300 of its shops to the Customized Retailer Options mannequin to fill distant studying platform pupil orders by way of the wholesale warehouse whereas campus bookstores within the Retail phase have been closed, whereas the gross sales shifted again to the Firm’s campus shops within the present interval. Moreover, there was a decline in general wholesale textbook buyer demand.
Wholesale non-GAAP Adjusted EBITDA for the quarter declined to $6.Four million, as in comparison with non-GAAP Adjusted EBITDA of $13.Zero million within the prior 12 months, declining on the decrease gross sales.
DSS Section Outcomes
DSS first quarter gross sales of $8.Three million elevated $2.Four million, or 41.4%, as in comparison with the prior 12 months interval.
DSS non-GAAP Adjusted EBITDA was $1.7 million for the quarter, primarily in step with the prior 12 months interval, because the elevated gross sales have been offset by larger investments.
Different
Promoting and administrative bills for Company Providers, which incorporates unallocated shared-service prices, equivalent to numerous company degree bills and different governance capabilities, have been $7.Four million for the quarter, in comparison with $5.2 million within the prior interval, primarily resulting from larger compensation-related expense and better working bills.
Intercompany gross margin eliminations of $5.5 million for the quarter have been mirrored in non-GAAP Adjusted EBITDA, in comparison with eliminations of $6.Eight million impacting non-GAAP Adjusted EBITDA within the prior 12 months interval.
Outlook
Whereas it’s troublesome to foretell the continuing results of the COVID virus, together with the Delta variant influence, with any certainty, primarily based on its present views, the Firm expects to generate constructive non-GAAP Adjusted EBITDA in fiscal 12 months 2022, as most colleges return to a standard on-campus setting for studying, occasions and sporting actions. The Firm expects non-GAAP adjusted EBITDA to strategy annual pre-COVID ranges in fiscal 12 months 2023, primarily based on an expectation that campuses will be capable of resume on campus studying, occasions and sporting actions with considerably less-restrictive COVID-related insurance policies and working protocols subsequent 12 months.
Convention Name
A convention name with Barnes & Noble Schooling, Inc. senior administration will probably be webcast at 8:30 a.m. Jap Time on Thursday, September 2, 2021 and might be accessed on the Barnes & Noble Schooling company web site at investor.bned.com or www.bned.com.
Barnes & Noble Schooling expects to report fiscal 2022 second quarter ends in early December 2021.
ABOUT BARNES & NOBLE EDUCATION, INC.
Barnes & Noble Schooling, Inc. (NYSE: BNED) is a number one options supplier for the training business, driving affordability, entry and achievement at a whole bunch of educational establishments nationwide and guaranteeing tens of millions of scholars are outfitted for fulfillment within the classroom and past. By means of its household of manufacturers, BNED presents campus retail companies and educational options, a digital direct-to-student studying ecosystem, wholesale capabilities and extra. BNED is an organization serving all who work to raise their lives by way of training, supporting college students, college and establishments as they make tomorrow a greater, extra inclusive and smarter world. For extra data, go to www.bned.com.
Ahead-Wanting Statements
This press launch comprises sure “forward-looking statements” throughout the that means of the Non-public Securities Litigation Reform Act of 1995 and knowledge referring to us and our enterprise which can be primarily based on the beliefs of our administration in addition to assumptions made by and knowledge presently out there to our administration. When used on this communication, the phrases “anticipate,” “consider,” “estimate,” “anticipate,” “intend,” “plan,” “will,” “forecasts,” “projections,” and comparable expressions, as they relate to us or our administration, establish forward-looking statements. Furthermore, we function in a really aggressive and quickly altering setting. New dangers emerge sometimes. It’s not potential for our administration to foretell all dangers, nor can we assess the influence of all elements on our enterprise or the extent to which any issue, or mixture of things, might trigger precise outcomes to vary materially from these contained in any forward-looking statements we might make, together with any statements made with reference to our response to the COVID-19 pandemic. In gentle of those dangers, uncertainties and assumptions, the long run occasions and tendencies mentioned on this press launch might not happen and precise outcomes might differ materially and adversely from these anticipated or implied within the forward-looking statements. Such statements replicate our present views with respect to future occasions, the end result of which is topic to sure dangers, together with, amongst others: dangers related to COVID-19 and the governmental responses to it, together with its impacts throughout our companies on demand and operations, in addition to on the operations of our suppliers and different enterprise companions, and the effectiveness of our actions taken in response to those dangers; basic aggressive situations, together with actions our opponents and content material suppliers might take to develop their companies; a decline in school enrollment or decreased funding out there for college students; choices by faculties and universities to outsource their bodily and/or on-line bookstore operations or change the operation of their bookstores; implementation of our digital technique might not outcome within the anticipated progress in our digital gross sales and/or profitability; threat that digital gross sales progress doesn’t exceed the speed of funding spend; the efficiency of our on-line, digital and different initiatives, integration of and deployment of, extra services together with new digital channels, and enhancements to larger training digital merchandise, and the shortcoming to attain the anticipated value financial savings; the chance of worth discount or change in format after all supplies by publishers, which might negatively influence revenues and margin; the final financial setting and client spending patterns; decreased client demand for our merchandise, low progress or declining gross sales; the strategic goals, profitable integration, anticipated synergies, and/or different anticipated potential advantages of assorted acquisitions will not be totally realized or might take longer than anticipated; the combination of the operations of assorted acquisitions into our personal may improve the chance of our inner controls being discovered ineffective; modifications to buy or rental phrases, cost phrases, return insurance policies, the low cost or margin on merchandise or different phrases with our suppliers; our means to efficiently implement our strategic initiatives together with our means to establish, compete for and execute upon extra acquisitions and strategic investments; dangers related to operation or efficiency of MBS Textbook Change, LLC’s point-of-sales techniques which can be offered to varsity bookstore clients; technological modifications; dangers related to counterfeit and piracy of digital and print supplies; our worldwide operations might end in extra dangers; our means to draw and retain staff; dangers related to information privateness, data safety and mental property; tendencies and challenges to our enterprise and within the places during which we’ve got shops; non-renewal of managed bookstore, bodily and/or on-line retailer contracts and higher-than-anticipated retailer closings; disruptions to our data know-how techniques, infrastructure and information resulting from laptop malware, viruses, hacking and phishing assaults, leading to hurt to our enterprise and outcomes of operations; disruption of or interference with third celebration internet service suppliers and our personal proprietary know-how; work stoppages or will increase in labor prices; potential will increase in transport charges or interruptions in transport service; product shortages, together with decreases within the used textbook stock provide related to the implementation of publishers’ digital choices and direct to pupil textbook consignment rental applications, in addition to the dangers related to the impacts that public well being crises might have on the power of our suppliers to fabricate or supply merchandise, notably from outdoors of the USA; modifications in home and worldwide legal guidelines or rules, together with U.S. tax reform, modifications in tax charges, legal guidelines and rules, in addition to associated steerage; enactment of legal guidelines or modifications in enforcement practices which can prohibit or prohibit our use of texts, emails, curiosity primarily based internet marketing, recurring billing or comparable advertising and gross sales actions; the quantity of our indebtedness and skill to adjust to covenants relevant to any future debt financing; our means to fulfill future capital and liquidity necessities; our means to entry the credit score and capital markets on the instances and within the quantities wanted and on acceptable phrases; antagonistic outcomes from litigation, governmental investigations, tax-related proceedings, or audits; modifications in accounting requirements; and the opposite dangers and uncertainties detailed within the part titled “Threat Components” in Half I – Merchandise 1A in our Annual Report on Type 10-Ok for the 12 months ended Might 1, 2021. Ought to a number of of those dangers or uncertainties materialize, or ought to underlying assumptions show incorrect, precise outcomes or outcomes might differ materially from these described as anticipated, believed, estimated, anticipated, supposed or deliberate. Subsequent written and oral forward-looking statements attributable to us or individuals appearing on our behalf are expressly certified of their entirety by the cautionary statements on this paragraph. We undertake no obligation to publicly replace or revise any forward-looking statements, whether or not on account of new data, future occasions or in any other case after the date of this press launch.
EXPLANATORY NOTE
Now we have three reportable segments: Retail, Wholesale and DSS as follows:
- The Retail Section operates 1,429 school, college, and Ok-12 faculty bookstores, comprised of 784 bodily bookstores and 645 digital bookstores. Our bookstores sometimes function underneath agreements with the school, college, or Ok-12 faculties to be the official bookstore and the unique vendor after all supplies and provides, together with bodily and digital merchandise. The vast majority of the bodily campus bookstores have school-branded e-commerce websites which we function and which supply college students entry to inexpensive course supplies and affinity merchandise, together with emblematic attire and presents. The Retail Section additionally presents inclusive entry applications, during which course supplies, together with e-content, are supplied at a diminished worth by way of a course supplies price, and delivered to college students on or earlier than the primary day of sophistication. Moreover, the Retail Section presents a set of digital content material and companies to high schools and universities, together with a wide range of open instructional resource-based courseware.
- The Wholesale Section is comprised of our wholesale textbook enterprise and is among the largest textbook wholesalers within the nation. The Wholesale Section centrally sources, sells, and distributes new and used textbooks to roughly 3,200 bodily bookstores (together with our Retail Section’s 784 bodily bookstores) and sources and distributes new and used textbooks to our 645 digital bookstores. Moreover, the Wholesale Section sells {hardware} and a software program suite of purposes that gives stock administration and point-of-sale options to roughly 400 school bookstores.
- The Digital Scholar Options (“DSS”) Section contains direct-to-student services to help college students to check extra successfully and enhance educational efficiency. The DSS Section is comprised of the operations of Scholar Manufacturers, LLC, a number one direct-to-student subscription-based writing companies enterprise, and bartleby®, a direct-to-student subscription-based providing offering textbook options, skilled questions and solutions, writing and tutoring.
Company Providers represents unallocated shared-service prices which embrace company degree bills and different governance capabilities, together with govt capabilities, equivalent to accounting, authorized, treasury, data know-how, and human assets.
All materials intercompany accounts and transactions have been eradicated in consolidation.
|
BARNES & NOBLE EDUCATION, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (In 1000’s, besides per share information) (Unaudited) |
|||||||||
|
13 weeks ended |
|||||||||
|
|
July 31, |
|
August 1, |
||||||
|
Gross sales: |
|
|
|
||||||
|
Product gross sales and different |
$ |
227,770 |
|
|
|
$ |
193,210 |
|
|
|
Rental revenue |
13,024 |
|
|
|
10,804 |
|
|
||
|
Whole gross sales |
240,794 |
|
|
|
204,014 |
|
|
||
|
Value of gross sales: |
|
|
|
||||||
|
Product and different value of gross sales (a) |
174,161 |
|
|
|
165,765 |
|
|
||
|
Rental value of gross sales |
6,604 |
|
|
|
7,387 |
|
|
||
|
Whole value of gross sales |
180,765 |
|
|
|
173,152 |
|
|
||
|
Gross revenue |
60,029 |
|
|
|
30,862 |
|
|
||
|
Promoting and administrative bills |
86,235 |
|
|
|
70,043 |
|
|
||
|
Depreciation and amortization expense |
12,624 |
|
|
|
14,063 |
|
|
||
|
Restructuring and different expenses (a) |
2,623 |
|
|
|
5,671 |
|
|
||
|
Working loss |
(41,453 |
) |
|
|
(58,915 |
) |
|
||
|
Curiosity expense, internet |
2,494 |
|
|
|
2,653 |
|
|
||
|
Loss earlier than revenue taxes |
(43,947 |
) |
|
|
(61,568 |
) |
|
||
|
Revenue tax expense (profit) |
399 |
|
|
|
(14,916 |
) |
|
||
|
Web loss |
$ |
(44,346 |
) |
|
|
$ |
(46,652 |
) |
|
|
|
|
|
|
||||||
|
Loss per widespread share: |
|
|
|
||||||
|
Primary |
$ |
(0.86 |
) |
|
|
$ |
(0.96 |
) |
|
|
Diluted |
$ |
(0.86 |
) |
|
|
$ |
(0.96 |
) |
|
|
Weighted common widespread shares excellent: |
|
|
|
||||||
|
Primary |
51,474 |
|
|
|
48,411 |
|
|
||
|
Diluted |
51,474 |
|
|
|
48,411 |
|
|
||
|
|
|
|
|
||||||
|
(a) For added data, see the Notes within the Non-GAAP disclosure data of this Press Launch. |
|||||||||
|
|
13 weeks ended |
||||
|
|
July 31, |
|
August 1, |
||
|
Proportion of gross sales: |
|
|
|
||
|
Gross sales: |
|
|
|
||
|
Product gross sales and different |
94.6 |
% |
|
94.7 |
% |
|
Rental revenue |
5.4 |
% |
|
5.3 |
% |
|
Whole gross sales |
100.0 |
% |
|
100.0 |
% |
|
Value of gross sales: |
|
|
|
||
|
Product and different value of gross sales (a) |
76.5 |
% |
|
85.8 |
% |
|
Rental value of gross sales (a) |
50.7 |
% |
|
68.4 |
% |
|
Whole value of gross sales |
75.1 |
% |
|
84.9 |
% |
|
Gross revenue |
24.9 |
% |
|
15.1 |
% |
|
Promoting and administrative bills |
35.8 |
% |
|
34.3 |
% |
|
Depreciation and amortization expense |
5.2 |
% |
|
6.9 |
% |
|
Restructuring and different expenses |
1.1 |
% |
|
2.8 |
% |
|
Working loss |
(17.2) |
% |
|
(28.9) |
% |
|
Curiosity expense, internet |
1.0 |
% |
|
1.3 |
% |
|
Loss earlier than revenue taxes |
(18.2) |
% |
|
(30.2) |
% |
|
Revenue tax expense (profit) |
0.2 |
% |
|
(7.3) |
% |
|
Web loss |
(18.4) |
% |
|
(22.9) |
% |
|
|
|
|
|
||
|
(a) Represents the proportion these prices bear to the associated gross sales, as a substitute of whole gross sales. |
|||||
|
BARNES & NOBLE EDUCATION, INC. AND SUBSIDIARIES Condensed Consolidated Steadiness Sheets (In 1000’s, besides per share information) (Unaudited) |
|||||||||
|
July 31, |
|
August 1, |
|||||||
|
ASSETS |
|
|
|
||||||
|
Present belongings: |
|
|
|
||||||
|
Money and money equivalents |
$ |
7,649 |
|
|
|
$ |
7,471 |
|
|
|
Receivables, internet |
118,254 |
|
|
|
107,522 |
|
|
||
|
Merchandise inventories, internet |
472,461 |
|
|
|
575,246 |
|
|
||
|
Textbook rental inventories |
6,657 |
|
|
|
16,482 |
|
|
||
|
Pay as you go bills and different present belongings |
64,724 |
|
|
|
22,415 |
|
|
||
|
Whole present belongings |
669,745 |
|
|
|
729,136 |
|
|
||
|
Property and tools, internet |
91,080 |
|
|
|
94,102 |
|
|
||
|
Working lease right-of-use belongings |
289,102 |
|
|
|
320,287 |
|
|
||
|
Intangible belongings, internet |
146,035 |
|
|
|
170,466 |
|
|
||
|
Goodwill |
4,700 |
|
|
|
4,700 |
|
|
||
|
Deferred tax belongings, internet |
23,248 |
|
|
|
8,459 |
|
|
||
|
Different noncurrent belongings |
27,405 |
|
|
|
33,646 |
|
|
||
|
Whole belongings |
$ |
1,251,315 |
|
|
|
$ |
1,360,796 |
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||||
|
Present liabilities: |
|
|
|
||||||
|
Accounts payable |
$ |
331,055 |
|
|
|
$ |
291,496 |
|
|
|
Accrued liabilities |
92,061 |
|
|
|
75,084 |
|
|
||
|
Present working lease liabilities |
135,937 |
|
|
|
131,525 |
|
|
||
|
Brief-term borrowings |
50,000 |
|
|
|
— |
|
|
||
|
Whole present liabilities |
609,053 |
|
|
|
498,105 |
|
|
||
|
Lengthy-term working lease liabilities |
179,540 |
|
|
|
209,867 |
|
|
||
|
Different long-term liabilities |
52,427 |
|
|
|
45,986 |
|
|
||
|
Lengthy-term borrowings |
153,700 |
|
|
|
234,560 |
|
|
||
|
Whole liabilities |
994,720 |
|
|
|
988,518 |
|
|
||
|
Commitments and contingencies |
— |
|
|
|
— |
|
|
||
|
Stockholders’ fairness: |
|
|
|
||||||
|
Most popular inventory, $0.01 par worth; approved, 5,000 shares; issued and excellent, none |
— |
|
|
|
— |
|
|
||
|
Widespread inventory, $0.01 par worth; approved, 200,000 shares; issued, 53,665 and 52,654 shares, respectively; excellent, 51,587 and 48,633 shares, respectively |
536 |
|
|
|
526 |
|
|
||
|
Further paid-in-capital |
735,376 |
|
|
|
734,474 |
|
|
||
|
Accrued deficit |
(458,960 |
) |
|
|
(329,479 |
) |
|
||
|
Treasury inventory, at value |
(20,357 |
) |
|
|
(33,243 |
) |
|
||
|
Whole stockholders’ fairness |
256,595 |
|
|
|
372,278 |
|
|
||
|
Whole liabilities and stockholders’ fairness |
$ |
1,251,315 |
|
|
|
$ |
1,360,796 |
|
|
|
BARNES & NOBLE EDUCATION, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Money Move (Unaudited) (In 1000’s, besides per share information) |
||||||||||
|
|
13 weeks ended |
|||||||||
|
|
|
July 31, 2021 |
|
August 1, 2020 |
||||||
|
Money flows from working actions: |
|
|
|
|
||||||
|
Web loss |
|
$ |
(44,346 |
) |
|
|
$ |
(46,652 |
) |
|
|
Changes to reconcile internet loss to internet money flows from working actions: |
|
|
|
|
||||||
|
Depreciation and amortization expense |
|
12,624 |
|
|
|
14,063 |
|
|
||
|
Content material amortization expense |
|
1,275 |
|
|
|
1,164 |
|
|
||
|
Amortization of deferred financing prices |
|
362 |
|
|
|
270 |
|
|
||
|
Merchandise stock loss (a) |
|
434 |
|
|
|
— |
|
|
||
|
Deferred taxes |
|
— |
|
|
|
(654 |
) |
|
||
|
Inventory-based compensation expense |
|
1,122 |
|
|
|
1,521 |
|
|
||
|
Adjustments in different long-term belongings and liabilities, internet |
|
1,814 |
|
|
|
1,424 |
|
|
||
|
Adjustments in working lease right-of-use belongings and liabilities |
|
(10,464 |
) |
|
|
(6,770 |
) |
|
||
|
Adjustments in different working belongings and liabilities, internet |
|
19,717 |
|
|
|
(17,515 |
) |
|
||
|
Web money movement utilized in working actions |
|
(17,462 |
) |
|
|
(53,149 |
) |
|
||
|
Money flows from investing actions: |
|
|
|
|
||||||
|
Purchases of property and tools |
|
(11,370 |
) |
|
|
(7,055 |
) |
|
||
|
Web change in different noncurrent belongings |
|
350 |
|
|
|
(85 |
) |
|
||
|
Web money movement utilized in investing actions |
|
(11,020 |
) |
|
|
(7,140 |
) |
|
||
|
Money flows from financing actions: |
|
|
|
|
||||||
|
Proceeds from borrowings underneath Credit score Settlement |
|
71,720 |
|
|
|
186,700 |
|
|
||
|
Repayments of borrowings underneath Credit score Settlement |
|
(45,620 |
) |
|
|
(126,840 |
) |
|
||
|
Buy of treasury shares |
|
(1,215 |
) |
|
|
(342 |
) |
|
||
|
Web money flows supplied by financing actions |
|
24,885 |
|
|
|
59,518 |
|
|
||
|
Web lower in money, money equivalents and restricted money |
|
(3,597 |
) |
|
|
(771 |
) |
|
||
|
Money, money equivalents and restricted money at starting of interval |
|
16,814 |
|
|
|
9,008 |
|
|
||
|
Money, money equivalents and restricted money at finish of interval |
|
$ |
13,217 |
|
|
|
$ |
8,237 |
|
|
|
Adjustments in different working belongings and liabilities, internet: |
|
|
|
|
||||||
|
Receivables, internet |
|
$ |
2,818 |
|
|
|
$ |
(16,671 |
) |
|
|
Merchandise inventories |
|
(191,783 |
) |
|
|
(146,307 |
) |
|
||
|
Textbook rental inventories |
|
22,035 |
|
|
|
24,228 |
|
|
||
|
Pay as you go bills and different present belongings |
|
(6,012 |
) |
|
|
(6,238 |
) |
|
||
|
Accounts payable and accrued liabilities |
|
192,659 |
|
|
|
127,473 |
|
|
||
|
Adjustments in different working belongings and liabilities, internet |
|
$ |
19,717 |
|
|
|
$ |
(17,515 |
) |
|
|
|
|
|
|
|
||||||
|
(a) For added data, see the Notes within the Non-GAAP disclosure data of this Press Launch. |
||||||||||
|
BARNES & NOBLE EDUCATION, INC. AND SUBSIDIARIES Gross sales Info (Unaudited) |
||||||||||
|
Whole Gross sales |
||||||||||
|
The parts of the gross sales variances for the 13 week intervals are as follows: |
||||||||||
|
{Dollars} in tens of millions |
|
13 weeks ended |
||||||||
|
|
|
July 31, 2021 |
|
August 1, 2020 |
||||||
|
Retail Gross sales |
|
|
|
|
||||||
|
New shops (a) (b) |
|
$ |
10.3 |
|
|
|
$ |
7.9 |
|
|
|
Closed shops (a) |
|
(4.5 |
) |
|
|
(5.1 |
) |
|
||
|
Comparable shops (b) |
|
44.6 |
|
|
|
(106.6 |
) |
|
||
|
Textbook rental deferral |
|
0.2 |
|
|
|
(6.4 |
) |
|
||
|
Service income (c) |
|
2.3 |
|
|
|
(4.7 |
) |
|
||
|
Different (d) |
|
(1.2 |
) |
|
|
(1.0 |
) |
|
||
|
Retail Gross sales subtotal: |
|
$ |
51.7 |
|
|
|
$ |
(115.9 |
) |
|
|
Wholesale Gross sales: |
|
$ |
(35.8 |
) |
|
|
$ |
8.0 |
|
|
|
DSS Gross sales |
|
$ |
2.4 |
|
|
|
$ |
0.5 |
|
|
|
Eliminations (e) |
|
$ |
18.5 |
|
|
|
$ |
(8.2 |
) |
|
|
Whole gross sales variance |
|
$ |
36.8 |
|
|
|
$ |
(115.6 |
) |
|
| (a) |
The next is a retailer depend abstract for bodily shops and digital shops: |
|
|
13 weeks ended |
||||||||||
|
|
July 31, 2021 |
|
August 1, 2020 |
||||||||
|
Variety of Shops: |
Bodily |
|
Digital |
|
Bodily |
|
Digital |
||||
|
Variety of shops at starting of interval |
769 |
|
|
648 |
|
|
772 |
|
|
647 |
|
|
Shops opened |
30 |
|
|
23 |
|
|
24 |
|
|
40 |
|
|
Shops closed |
15 |
|
|
26 |
|
|
24 |
|
|
17 |
|
|
Variety of shops at finish of interval |
784 |
|
|
645 |
|
|
772 |
|
|
670 |
|
| (b) |
In December 2020, we entered into merchandising partnership with Fanatics Retail Group Achievement, LLC, Inc. (“Fanatics”) and Fanatics Lids School, Inc. (“FLC”) (collectively referred to herein because the “FLC Partnership”). Efficient April 2021, as contemplated by the FLC Partnership’s merchandising settlement, emblem and emblematic basic merchandise gross sales have been fulfilled by FLC. Throughout the first quarter of Fiscal 2022, as contemplated by the FLC Partnership’s e-commerce settlement, we started to transition sure of our e-commerce websites to Fanatics e-commerce websites for emblem and emblematic merchandise. As the brand and emblematic basic merchandise gross sales are fulfilled by FLC and Fanatics, we acknowledge fee income earned for these gross sales on a internet foundation in our condensed consolidated monetary statements, as in comparison with the popularity of emblem and emblematic gross sales on a gross foundation within the prior 12 months interval. For Retail Gross Comparable Retailer Gross sales (non-GAAP) particulars, see beneath. |
|
| (c) |
Service income contains model partnerships, transport and dealing with, and income from different applications. |
|
| (d) |
Different contains stock liquidation gross sales to 3rd events, market gross sales and sure accounting adjusting gadgets associated to return reserves, and different deferred gadgets. |
|
| (e) |
Eliminates Wholesale gross sales and repair charges to Retail and Retail commissions earned from Wholesale. |
|
Retail Gross Comparable Retailer Gross sales (non-GAAP) |
||||||||||||||||
|
Comparable retailer gross sales (non-GAAP) variances by class for the 13 week intervals are as follows: |
||||||||||||||||
|
{Dollars} in tens of millions |
13 weeks ended |
|
||||||||||||||
|
|
July 31, 2021 |
|
August 1, 2020 |
|
||||||||||||
|
Textbooks (Course Supplies) |
$ |
23.1 |
|
|
21.9 |
% |
|
$ |
(11.3 |
) |
|
|
(10.1 |
) |
% |
|
|
Normal Merchandise |
48.6 |
|
|
118.4 |
% |
|
(87.6 |
) |
|
|
(68.3 |
) |
% |
|
||
|
Commerce Books |
1.9 |
|
|
151.1 |
% |
|
(7.7 |
) |
|
|
(85.2 |
) |
% |
|
||
|
Whole Retail Gross Comparable Retailer Gross sales (non-GAAP) |
$ |
73.6 |
|
|
49.8 |
% |
|
$ |
(106.6 |
) |
|
|
(42.8 |
) |
% |
|
To complement the Whole Gross sales desk introduced above in accordance with typically accepted accounting ideas (“GAAP”), the Firm makes use of the non-GAAP monetary measure of Retail Gross Comparable Retailer Gross sales. Retail Gross Comparable Retailer Gross sales (non-GAAP) contains gross sales from bodily and digital shops which have been open for a complete fiscal 12 months interval and doesn’t embrace gross sales from closed shops for all intervals introduced. As contemplated by the FLC Partnership’s merchandising settlement and the e-commerce settlement, we started to transition the success of emblem and emblematic merchandise gross sales to FLC and Fanatics. As the brand and emblematic basic merchandise gross sales are fulfilled by FLC and Fanatics, we acknowledge fee income earned for these gross sales on a internet foundation in our condensed consolidated monetary statements, as in comparison with the popularity of emblem and emblematic basic merchandise gross sales on a gross foundation within the prior 12 months interval. For Retail Gross Comparable Retailer Gross sales (non-GAAP), gross sales for emblem and emblematic basic merchandise fulfilled by FLC, Fanatics and digital company gross sales are included on a gross foundation. We consider the present Retail Gross Comparable Retailer Gross sales (non-GAAP) calculation methodology displays the way during which administration views comparable gross sales, in addition to the seasonal nature of our enterprise.
|
BARNES & NOBLE EDUCATION, INC. AND SUBSIDIARIES Consolidated Non-GAAP Info (In 1000’s) (Unaudited) |
|||||||||
| Adjusted Earnings (non-GAAP) |
13 weeks ended |
||||||||
|
|
July 31, 2021 |
|
August 1, 2020 |
||||||
|
Web loss |
$ |
(44,346 |
) |
|
|
$ |
(46,652 |
) |
|
|
Reconciling gadgets, after-tax (beneath) |
4,332 |
|
|
|
4,936 |
|
|
||
|
Adjusted Earnings (non-GAAP) |
$ |
(40,014 |
) |
|
|
$ |
(41,716 |
) |
|
|
|
|
|
|
||||||
|
Reconciling gadgets, pre-tax |
|
|
|
||||||
|
Merchandise stock loss (a) |
$ |
434 |
|
|
|
$ |
— |
|
|
|
Content material amortization (non-cash) (b) |
1,275 |
|
|
|
1,164 |
|
|
||
|
Restructuring and different expenses (c) |
2,623 |
|
|
|
5,671 |
|
|
||
|
Reconciling gadgets, pre-tax |
4,332 |
|
|
|
6,835 |
|
|
||
|
Much less: Professional forma revenue tax influence (d) |
— |
|
|
|
1,899 |
|
|
||
|
Reconciling gadgets, after-tax |
$ |
4,332 |
|
|
|
$ |
4,936 |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
||||||
|
Adjusted EBITDA (non-GAAP) |
13 weeks ended |
||||||||
|
|
July 31, 2021 |
|
August 1, 2020 |
||||||
|
Web loss |
$ |
(44,346 |
) |
|
|
$ |
(46,652 |
) |
|
|
Add: |
|
|
|
||||||
|
Depreciation and amortization expense |
12,624 |
|
|
|
14,063 |
|
|
||
|
Curiosity expense, internet |
2,494 |
|
|
|
2,653 |
|
|
||
|
Revenue tax expense (profit) |
399 |
|
|
|
(14,916 |
) |
|
||
|
Merchandise stock loss (a) |
434 |
|
|
|
— |
|
|
||
|
Content material amortization (non-cash) (b) |
1,275 |
|
|
|
1,164 |
|
|
||
|
Restructuring and different expenses (c) |
2,623 |
|
|
|
5,671 |
|
|
||
|
Adjusted EBITDA (non-GAAP) |
$ |
(24,497 |
) |
|
|
$ |
(38,017 |
) |
|
| (a) |
As contemplated by the FLC Partnership’s merchandising settlement, we offered our emblem and emblematic basic merchandise stock to FLC and acquired proceeds of $41,773, and acknowledged a merchandise stock loss on the sale of $10,262 in value of products offered throughout the 52 weeks ended Might 1, 2021 for the Retail Section. The ultimate stock sale worth was decided throughout the first quarter of Fiscal 2022. Throughout the 13 weeks ended July 31, 2021, we acquired extra proceeds of $1,906, and acknowledged a merchandise stock loss on the sale of $434 in value of products offered for the Retail Section. |
|
| (b) |
Represents amortization of content material improvement prices (non-cash) recorded in value of products offered within the consolidated monetary statements. |
|
| (c) |
Throughout the 13 weeks ended July 31, 2021 and August 1, 2020, we acknowledged restructuring and different expenses totaling $2,623 and $5,671, respectively, comprised primarily of severance and different worker termination and profit prices related to the elimination of assorted positions as a part of value discount goals, {and professional} service prices for restructuring, course of enhancements, shareholder activist actions, and prices associated to improvement and integration related to the FLC Partnership. |
|
| (d) |
Represents the revenue tax results of the non-GAAP gadgets. |
|
BARNES & NOBLE EDUCATION, INC. AND SUBSIDIARIES Consolidated Non-GAAP Info (In 1000’s) (Unaudited) |
|||||||||
|
Free Money Move (non-GAAP) |
13 weeks ended |
||||||||
|
|
July 31, 2021 |
|
August 1, 2020 |
||||||
|
Adjusted EBITDA (non-GAAP) |
$ |
(24,497 |
) |
|
|
$ |
(38,017 |
) |
|
|
Much less: |
|
|
|
||||||
|
Capital expenditures (a) |
11,370 |
|
|
|
7,055 |
|
|
||
|
Money curiosity paid |
1,682 |
|
|
|
1,960 |
|
|
||
|
Money taxes paid (refund) |
254 |
|
|
|
5,937 |
|
|
||
|
Free Money Move (non-GAAP) |
$ |
(37,803 |
) |
|
|
$ |
(52,969 |
) |
|
|
|
|
|
|
||||||
|
(a) Purchases of property and tools are additionally known as capital expenditures. Our investing actions consist principally of capital expenditures for contractual capital investments related to renewing present contracts, new retailer development, digital initiatives and enhancements to inner techniques and our web site. The next desk offers the parts of whole purchases of property and tools: |
|||||||||
|
|
|
|
|
||||||
|
|
|
|
|
||||||
|
Capital Expenditures |
13 weeks ended |
||||||||
|
|
July 31, 2021 |
|
August 1, 2020 |
||||||
|
Bodily retailer capital expenditures |
$ |
3,893 |
|
|
|
$ |
3,137 |
|
|
|
Product and system improvement |
3,624 |
|
|
|
2,325 |
|
|
||
|
Content material improvement prices |
2,847 |
|
|
|
1,076 |
|
|
||
|
Different |
1,006 |
|
|
|
517 |
|
|
||
|
Whole Capital Expenditures |
$ |
11,370 |
|
|
|
$ |
7,055 |
|
|
|
BARNES & NOBLE EDUCATION, INC. AND SUBSIDIARIES Section Info (In 1000’s, besides percentages) (Unaudited) |
|||||
| Section Info (a) |
13 weeks ended |
||||
|
|
July 31, 2021 |
|
August 1, 2020 |
||
|
Gross sales |
|
|
|
||
|
Retail (b) |
$ |
210,469 |
|
$ |
158,776 |
|
Wholesale |
44,484 |
|
80,294 |
||
|
DSS |
8,303 |
|
5,872 |
||
|
Eliminations |
(22,462) |
|
(40,928) |
||
|
Whole |
$ |
240,794 |
|
$ |
204,014 |
|
|
|
|
|
||
|
Gross revenue |
|
|
|
||
|
Retail (c) |
$ |
48,743 |
|
$ |
16,345 |
|
Wholesale |
10,405 |
|
16,757 |
||
|
DSS (c) |
8,139 |
|
5,700 |
||
|
Eliminations |
(5,549) |
|
(6,776) |
||
|
Whole |
$ |
61,738 |
|
$ |
32,026 |
|
|
|
|
|
||
|
Promoting and administrative bills |
|
|
|
||
|
Retail |
$ |
68,365 |
|
$ |
56,985 |
|
Wholesale |
3,991 |
|
3,791 |
||
|
DSS |
6,447 |
|
4,036 |
||
|
Company Providers |
7,444 |
|
5,244 |
||
|
Eliminations |
(12) |
|
(13) |
||
|
Whole |
$ |
86,235 |
|
$ |
70,043 |
|
|
|
|
|
||
|
Adjusted EBITDA (non-GAAP) (d) |
|
|
|
||
|
Retail |
$ |
(19,622) |
|
$ |
(40,640) |
|
Wholesale |
6,414 |
|
12,966 |
||
|
DSS |
1,692 |
|
1,664 |
||
|
Company Providers |
(7,444) |
|
(5,244) |
||
|
Eliminations |
(5,537) |
|
(6,763) |
||
|
Whole |
$ |
(24,497) |
|
$ |
(38,017) |
| (a) |
See Explanatory Be aware on this Press Launch for Section descriptions. |
|
| (b) |
Efficient April 2021, as contemplated by the FLC Partnership’s merchandising settlement, emblem and emblematic basic merchandise gross sales have been fulfilled by FLC. Throughout the first quarter of Fiscal 2022, as contemplated by the FLC Partnership’s e-commerce settlement, we started to transition sure of our e-commerce websites to Fanatics e-commerce websites for emblem and emblematic merchandise. As the brand and emblematic basic merchandise gross sales are fulfilled by FLC and Fanatics, we acknowledge fee income earned for these gross sales on a internet foundation in our condensed consolidated monetary statements, as in comparison with the popularity of emblem and emblematic basic merchandise gross sales on a gross foundation within the prior 12 months interval. |
|
| (c) |
For the 13 weeks ended July 31, 2021, gross margin excludes a merchandise stock lack of $434 within the Retail Section associated to the sale of our emblem and emblematic basic merchandise stock beneath value to FLC. For added data, see Be aware (a) within the Non-GAAP disclosure data of this Press Launch. Moreover, gross margin for the Retail Section excludes amortization expense (non-cash) associated to content material improvement prices of $166 and $210 for the 13 weeks ended July 31, 2021 and August 1, 2020, respectively. |
|
|
Gross margin for the DSS Section excludes amortization expense (non-cash) associated to content material improvement prices of $1,109 and $954 for the 13 weeks ended July 31, 2021 and August 1, 2020, respectively. |
||
| (d) |
For added data, see “Use of Non-GAAP Monetary Info” within the Non-GAAP disclosure data of this Press Launch. |
|
Proportion of Section Gross sales |
13 weeks ended |
||||
|
|
July 31, 2021 |
|
August 1, 2020 |
||
|
Gross margin |
|
|
|
||
|
Retail |
23.2 |
% |
|
10.3 |
% |
|
Wholesale |
23.4 |
% |
|
20.9 |
% |
|
DSS |
98.0 |
% |
|
97.1 |
% |
|
Elimination |
24.7 |
% |
|
16.6 |
% |
|
Whole gross margin |
25.6 |
% |
|
15.7 |
% |
|
|
|
|
|
||
|
Promoting and administrative bills |
|
|
|
||
|
Retail |
32.5 |
% |
|
35.9 |
% |
|
Wholesale |
9.0 |
% |
|
4.7 |
% |
|
DSS |
77.6 |
% |
|
68.7 |
% |
|
Company Providers |
N/A |
|
N/A |
||
|
Elimination |
N/A |
|
N/A |
||
|
Whole promoting and administrative bills |
35.8 |
% |
|
34.3 |
% |
Use of Non-GAAP Monetary Info – Adjusted Earnings, Adjusted EBITDA and Free Money Move
To complement the Firm’s consolidated monetary statements introduced in accordance with typically accepted accounting ideas (“GAAP”), within the Press Launch hooked up hereto as Exhibit 99.1, the Firm makes use of the non-GAAP monetary measures of Adjusted Earnings (outlined as internet revenue adjusted for sure reconciling gadgets), Adjusted EBITDA (outlined by the Firm as earnings earlier than curiosity, taxes, depreciation and amortization, as adjusted for extra gadgets subtracted from or added to internet revenue) and Free Money Move (outlined by the Firm as Adjusted EBITDA much less capital expenditures, money curiosity and money taxes).
These non-GAAP monetary measures are usually not supposed as substitutes for and shouldn’t be thought-about superior to measures of monetary efficiency ready in accordance with GAAP. As well as, the Firm’s use of those non-GAAP monetary measures could also be completely different from equally named measures utilized by different corporations, limiting their usefulness for comparability functions.
The Firm’s administration evaluations these non-GAAP monetary measures as inner measures to guage the Firm’s efficiency and handle the Firm’s operations. The Firm’s administration believes that these measures are helpful efficiency measures that are utilized by the Firm to facilitate a comparability of on-going working efficiency on a constant foundation from period-to-period. The Firm’s administration believes that these non-GAAP monetary measures present for a extra full understanding of things and tendencies affecting the Firm’s enterprise than measures underneath GAAP can present alone, because it excludes sure gadgets that don’t replicate the unusual earnings of its operations. The Firm’s Board of Administrators and administration additionally use Adjusted EBITDA as one of many major strategies for planning and forecasting general anticipated efficiency, for evaluating on a quarterly and annual foundation precise outcomes towards such expectations, and as a measure for efficiency incentive plans. The Firm’s administration believes that the inclusion of Adjusted EBITDA and Adjusted Earnings outcomes offers buyers helpful and necessary data relating to the Firm’s working outcomes. The Firm believes that Free Money Move offers helpful extra data regarding money movement out there to fulfill future debt service obligations and dealing capital necessities and assists buyers of their understanding of the Firm’s working profitability and liquidity because the Firm manages to the enterprise to maximise margin and cashflow.
The non-GAAP measures included within the Press Launch hooked up hereto as Exhibit 99.1 has been reconciled to the comparable GAAP measures as required underneath Securities and Change Fee (the “SEC”) guidelines relating to using non-GAAP monetary measures. The entire gadgets included within the reconciliations beneath are both (i) non-cash gadgets or (ii) gadgets that administration doesn’t think about in assessing the Firm’s on-going working efficiency. The Firm urges buyers to rigorously overview the GAAP monetary data included as a part of the Firm’s Type 10-Ok dated Might 1, 2021 filed with the SEC on June 30, 2021, which incorporates consolidated monetary statements for every of the three years for the interval ended Might 1, 2021, Might 2, 2020 and April 27, 2019 (Fiscal 2021, Fiscal 2020, and Fiscal 2019, respectively).