MAIN NEWS HEADLINES
April 3 – April 10, 2008 Edition
Quarterly Sales Up,
Annual Figures Down
BIRMINGHAM, AL/03/26/08 — Books-A-Million, Inc. reported a 3% increase in net sales for the fourth quarter of 2008, while comparable store sales fell 1.6% compared with fourth quarter sales for 2007.
For the fiscal year 2008, net sales increased 5.1% to $535.1 million when compared with $509.3 million in net sales during the 2007 fiscal year. Comparable store sales for the 2008 fiscal year increased 1.4% when compared with the same 52-week period in the 2007 fiscal year.
Net income for the 2008 fourth quarter was $11.9 million, or $0.76 per diluted share, compared with net income of $13.1 million, or $0.78 per diluted share, on a 13-week operating basis during the 2007 fourth quarter. Net income for the 2008 fiscal year was $16.5 million, or $1.01 per diluted share, compared with net income of $16.8 million, or $1.00 per diluted share, on a 52-week operating basis during the 2007 fiscal year.
The company said the latest figures were impacted by the fact that 2007 fourth quarter included one more week than the 2008 fourth quarter. This additional week at the end of the 2007 fourth quarter and fiscal year produced an additional $9.0 million in net sales. In addition, during the 2007 fourth quarter and fiscal year, the Company produced one-time additional sales income of $2.2 million, $1.5 million net of taxes, related to the recognition of gift card breakage from prior years.
For the 13-week period ended February 2, 2008, net sales decreased 3.6% to $168.3 million from sales of $174.6 million for the 14-week period ended February 3, 2007. Net income for the 2008 13-week fourth quarter was $11.9 million, or $0.76 per diluted share, compared with net income of $15.1 million, or $0.90 per diluted share, in the 2007 14-week fourth quarter.
For the 52-week fiscal year ended February 2, 2008, net sales increased 2.8% to $535.1 million from sales of $520.4 million in the 53-week fiscal year ended February 3, 2007. For the 2008 52-week fiscal year, the Company reported net income of $16.5 million, or $1.01 per diluted share, compared with net income of $18.9 million, or $1.12 per diluted share, for the 2007 53-week fiscal year. The Company’s results for the 2007 fiscal year included one more week of sales than the 2008 fiscal year, plus the 2007 fiscal year included an additional $1.5 million in income, net of taxes, related to the recognition of gift card breakage from prior years. Gift card breakage refers to aged gift cards that are not expected to be redeemed and are subsequently recognized in revenue.
Commenting on the results, Sandra B. Cochran, President and Chief Executive Officer, said, “Our focus on the fundamentals of our business, including gross margin, inventory management, and discipline in cost control delivered solid earnings in spite of the difficult economic conditions in the fourth quarter.”
The Board of Directors has declared the Company’s quarterly cash dividend of $0.09 per common share. The dividend will be paid on April 23, 2008, to shareholders of record at the close of business on April 9, 2008.
Books-A-Million is one of the nation’s leading book retailers and sells on the Internet at www.booksamillion.com. The Company presently operates 208 stores in 20 states and the District of Columbia. The Company operates large superstores under the names Books-A-Million and Books & Co. and traditional bookstores operating under the name Bookland, Books-A-Million and Joe Muggs Newsstands. The common stock of Books-A-Million, Inc. is traded on the NASDAQ Global Select Market under the symbol BAMM.