SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 20, 2003
----------------
BOOKS-A-MILLION, INC.
---------------------
(Exact name of registrant as specified in its charter)
DELAWARE 0-20664 63-0798460
- -------------------- ------- ----------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
402 Industrial Lane, Birmingham, Alabama 35211
---------------------------------------- --------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (205) 942-3737
--------------
Item 7. Financial Statements and Exhibits.
(c) Exhibits
This exhibit is furnished pursuant to Item 12 and shall not be deemed
to be "filed".
Exhibit No. Description
----------- -----------
99.1 Press Release Dated August 20, 2003
Item 12. Results of Operations and Financial Condition.
On August 20, 2003, Books-A-Million, Inc. issued a press release
announcing its financial results for the quarter ended August 2, 2003. A copy of
the press release is attached as Exhibit 99.1.
The information in this Report, including the exhibit attached hereto,
is furnished solely pursuant to Item 12 of this Form 8-K. Consequently, it is
not deemed "filed" for the purposes of Section 18 of the Securities Exchange Act
of 1934, or otherwise subject to the liabilities of that section. It may only be
incorporated by reference in another filing under the Exchange Act or Securities
Act of 1933 if such subsequent filing specifically references this Form 8-K.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: August 20, 2003 BOOKS-A-MILLION, INC.
By:/s/ Richard S. Wallington
----------------------
Richard S. Wallington
Chief Financial Officer
EXHIBIT INDEX
Exhibit No. Description
----------- -----------
99.1 Press Release Dated August 20, 2003
Exhibit 99.1
BOOKS-A-MILLION, INC. ANNOUNCES SECOND QUARTER RESULTS
COMPARABLE STORE SALES INCREASE 6.0%,
NET INCOME INCREASES $1.8 MILLION
BIRMINGHAM, Ala. (August 20, 2003) -- Books-A-Million, Inc. (Nasdaq/NM:BAMM)
today announced financial results for the second quarter and six-months ended
August 2, 2003. Net sales for the second quarter of fiscal 2004 increased 9.1%
to $113.5 million from $104.0 million in the year-earlier period. Comparable
store sales for the quarter increased 6.0%. Net income for the quarter was $1.4
million, or $0.08 per diluted share, compared with a net loss of $425,000, or
$0.03 per diluted share, in the year-earlier period.
For the 26-week period ended August 2, 2003, net sales increased 3.7%
to $212.3 million from sales of $204.7 million. Comparable store sales increased
1.7% when compared with the same period of fiscal 2003. For the 26-week period,
the Company reported net income of $319,000, or $0.02 per diluted share,
compared with a net loss of $1.7 million, or $0.11 per diluted share for the
year-earlier period. Last year's net loss included a decrease to earnings to
reflect the cumulative effect of a change in accounting principle of $1.2
million after tax, or $0.08 per diluted share. Before the change in accounting
principle, the Company reported a loss of $536,000, or $0.03 per diluted share.
Commenting on the results, Clyde B. Anderson, Chairman and Chief
Executive Officer, said, "The publication of Harry Potter and the Order of the
Phoenix was an unprecedented event for our industry and, combined with the
success of bestsellers in the biography, diet and health and fiction categories,
resulted in the improvement in comparable store sales. In addition to the strong
performance of the book categories, our gift categories, collectors products and
cafes continued to post positive results. Joe Muggs cafe sales benefited from
the introduction of our new Frappe brand frozen drinks.
Anderson continued, "The fall lineup is one of the strongest in years
and includes excellent selections from many well-known authors such as Tom
Clancy, Patricia Cornwell, John Grisham, Bill O'Reilly, Jan Karon, Stephen King
and Nicholas Sparks. Current bestsellers, such as The South Beach Diet and The
Da Vinci Code, continue to sell well and promise to contribute to a successful
fall season for books."
Books-A-Million is one of the nation's leading book retailers and sells
on the Internet at www.booksamillion.com. The Company presently operates 202
stores in 18 states and the District of Columbia. The Company operates three
distinct store formats, including large superstores operating under the names
Books-A-Million and Books & Co., traditional bookstores, operating under the
name Bookland and Books-A-Million, and Joe Muggs Newsstands. The Company's
wholesale operations include American Wholesale Book Company and Book$mart, both
based in Florence, Alabama. NetCentral, Inc., an Internet development and
service Company is located in Nashville, Tennessee.
BOOKS-A-MILLION, INC.
Unaudited Consolidated Statements of Income
(In thousands, except per share data)
13 Weeks Ended 26 Weeks Ended
-------------------------- --------------------------
August 3, August 2, August 3, August 2,
2003 2002 2003 2002
----------- ---------- ----------- -----------
NET SALES $ 113,473 $ 104,023 $ 212,318 $ 204,732
Cost of sales (including warehouse, distribution and
store occupancy costs) 82,575 75,971 156,386 149,211
----------- ---------- ----------- -----------
GROSS PROFIT 30,898 28,052 55,932 55,521
Operating, selling and administrative expenses 23,746 23,758 45,409 46,481
Depreciation and amortization 3,949 3,929 8,017 7,888
----------- ---------- ----------- -----------
OPERATING INCOME 3,203 365 2,506 1,152
Interest expense, net 848 1,000 1,717 1,934
----------- ---------- ----------- -----------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CUMULATIVE
EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 2,355 (635) 789 (782)
Income tax provision (benefit) 895 (241) 300 (297)
----------- ---------- ----------- -----------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE CUMULATIVE EFFECT OF A CHANGE IN
ACCOUNTING PRINCIPLE 1,460 (394) 489 (485)
DISCONTINUED OPERATIONS:
Loss from discontinued operations (including loss
on disposal) (160) (50) (275) (83)
Income tax provision (benefit) (61) (19) (105) (32)
----------- ---------- ----------- -----------
LOSS FROM DISCONTINUED OPERATIONS (99) (31) (170) (51)
----------- ---------- ----------- -----------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT
OF A CHANGE IN ACCOUNTING PRINCIPLE 1,361 (425) 319 (536)
Cumulative effect of a change in accounting principle,
net of income taxes -- -- -- (1,201)
----------- ---------- ----------- -----------
NET INCOME (LOSS) $ 1,361 $ (425) $ 319 $ (1,737)
=========== ========== =========== ===========
NET INCOME (LOSS) PER COMMON SHARE:
Basic:
Income (loss) from continuing operations before
cumulative effect of a change in accounting principle $ 0.09 $ (0.03) $ 0.03 $ (0.03)
Loss from discontinued operations (0.01) -- (0.01) --
----------- ---------- ---------- -----------
Income (loss) before cumulative effect of a change in
accounting principle 0.08 (0.03) 0.02 (0.03)
Cumulative effect of a change in accounting principle -- -- -- (0.08)
----------- ---------- ----------- -----------
Net income (loss) $ 0.08 $ (0.03) $ 0.02 $ (0.11)
=========== ========== ========== ===========
Diluted:
Income (loss) from continuing operations before
effect of a change in accounting principle $ 0.09 $ (0.03) $ 0.03 $ (0.03)
Loss from discontinued operations (0.01) -- (0.01) --
----------- ---------- ---------- -----------
Income (loss) before cumulative effect of a change in
accounting principle 0.08 (0.03) 0.02 (0.03)
Cumulative effect of a change in accounting principle -- -- -- (0.08)
----------- ---------- ----------- -----------
Net income (loss) $ 0.08 $ (0.03) $ 0.02 $ (0.11)
=========== ========== ========== ===========
Weighted average shares outstanding:
Basic 16,248 16,199 16,234 16,181
=========== ========== =========== ===========
Diluted 16,518 16,199 16,435 16,181
=========== ========== =========== ===========
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. 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, shareholders and prospective investors are cautioned not to place
undue reliance on such forward-looking statements. 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.