Barnes & Noble Reports Fiscal 2013 Year-End Financial Results

Barnes & Noble, Inc. (NYSE: BKS) today reported sales and earnings for its fiscal 2013 fourth quarter and full year ended April 27, 2013.

Fourth quarter consolidated revenues decreased 7.4% to $1.3 billion as compared to the prior year. The consolidated fourth quarter earnings before interest, taxes, depreciation and amortization (EBITDA) loss was $122.0 million, as compared to a loss of $9.7 million in the prior year. The consolidated fourth quarter net loss was $118.6 million, as compared to the prior year net loss of $56.9 million. Fourth quarter net losses were $2.11 per share as compared to a net loss of $1.06 per share a year ago.

For fiscal 2013, consolidated revenues decreased 4.1% to $6.8 billion as compared to the prior year. Fiscal 2013 consolidated EBITDA was $10.3 million, as compared to $176.7 million a year ago. Fiscal 2013 consolidated net losses were $154.8 million, or $2.97 per share, as compared to $65.6 million, or $1.35 per share in the prior year.

Fourth quarter and full-year results were adversely impacted by NOOK inventory charges as discussed in the NOOK section below.

The company ended the fiscal year with cash of $160.5 million and borrowings of $77 million under its $1 billion revolving credit facility, as compared to a net debt position of $270 million a year ago.

The company is currently in the process of evaluating certain prior year amounts, which may result in a revision to the financial statements. The company's analysis is ongoing, but it does not believe these amounts will be material to the financial statements. Accordingly, the financial information presented in this press release is unaudited and remains subject to change based on this process.

Fourth Quarter 2013 Results from Operations

Segment results for the fiscal 2013 and fiscal 2012 fourth quarters are as follows:
                   
Revenues EBITDA
$ in millions Increase/(Decrease) Increase/(Decrease)
Q4 2013 Q4 2012 $ % Q4 2013 Q4 2012 $ %
Retail $ 948 $ 1,053 (105 ) -10.0 % $ 51 $ 67 (16 ) -23.9 %
College 252 228 24 10.7 % 4 0 4 n/a
NOOK 108 164 (56 ) -34.0 % (177 ) (77 ) (100 ) -129.8 %
Elimination (1)   (31 )   (64 ) 33   -52.0 %   n/a     n/a   n/a  

n/a
 
Total $ 1,277   $ 1,380   (103 ) -7.4 % $ (122 ) $ (10 ) (112 )

n/a

 
 
      (1)  

Represents the elimination of intercompany sales from NOOK to Barnes & Noble Retailand Barnes & Noble College on a sell through basis.
 

Fiscal 2013 Results from Operations

Segment results for fiscal year 2013 and fiscal year 2012 are as follows:
                   
Revenues EBITDA
$ in millions Increase/(Decrease) Increase/(Decrease)
Fiscal 2013 Fiscal 2012 $ % Fiscal 2013 Fiscal 2012 $ %
Retail $ 4,568 $ 4,853 (285 ) -5.9 % $ 374 $ 322 52 16.0 %
College 1,763 1,744 20 1.1 % 111 116 (4 ) -3.9 %
NOOK 776 933 (157 ) -16.8 % (475 ) (262 ) (214 ) 81.7 %
Elimination (1)   (269 )   (401 ) 132   -33.0 %   n/a     n/a   n/a   n/a  
Total $ 6,839   $ 7,129   (290 ) -4.1 % $ 10   $ 177   (166 ) -94.2 %
 
      (1)  

Represents the elimination of intercompany sales from NOOK to Barnes & Noble Retail and Barnes & NobleCollege on a sell through basis.
 

Retail

The Retail segment, which consists of the Barnes & Noble bookstores and BN.com businesses, had revenues of $948 million for the quarter and $4.6 billion for the full year, decreasing 10.0% for the quarter and 5.9% for the fiscal year. The sales decreases were attributable to comparable store sales decreases of 8.8% for the quarter and 3.4% for the full year, store closures and lower online sales. Fourth quarter comparable bookstore sales decreased as a result of lower NOOK unit volume and a stronger title lineup in the prior year period including The Hunger Games and Fifty Shades of Grey trilogies. Core comparable bookstore sales, which exclude sales of NOOK products, decreased 5.8% for the quarter and were essentially flat for the full year.

As a result of the sales decline, fourth quarter Retail EBITDA decreased 23.9%, from $67 million a year ago to $51 million. However, for fiscal 2013, Retail EBITDA increased 16.0% to $374 million, as the sales decline was mitigated by a higher sales mix of higher margin core products and lower expenses.

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