EXHIBIT 99.1
Books-A-Million, Inc. News Release
402 Industrial Lane
Birmingham, AL 35211
205-942-3737
Contact: Richard S. Wallington
Chief Financial Officer
(205) 942-3737
BOOKS-A-MILLION, INC. ANNOUNCES SECOND QUARTER FINANCIAL RESULTS
--------------------------------
Quarterly Earnings Exceed Expectations
BIRMINGHAM, Ala. (August 17, 2004) -- Books-A-Million, Inc.
(Nasdaq/NM:BAMM) today announced financial results for the second quarter and
six months ended July 31, 2004. Net sales for the 13-week period increased 0.9%
to $114.1 million from sales of $113.1 million in the year-earlier period.
Comparable store sales for the quarter were flat when compared with the 13-week
period for the prior year. Net income for the quarter was $1.0 million, or $0.06
per diluted share, compared with net income of $1.4 million, or $0.08 per
diluted share, in the year-earlier period.
For the 26-week period ended July 31, 2004, net sales increased 5.2% to
$222.6 million from sales of $211.6 million in the year-earlier period.
Comparable store sales increased 3.3% when compared with the same period of
fiscal 2004. For the 26-week period, the Company reported net income of $2.2
million, or $0.13 per diluted share, compared with net income of $319,000, or
$0.02 per diluted share for the year-earlier period.
Commenting on the results, Sandra B. Cochran, President and Chief Executive
Officer, said, "We are very pleased with our results for the quarter. Our sales
were better than expected despite the difficult comparison to last year due to
the success of Harry Potter and the Order of the Phoenix. We were able to exceed
our internal projections and achieve flat comparable store sales. Strong sales
of Bill Clinton's memoir, My Life, an aggressive promotional plan, and continued
strong trends in our cafe business contributed to the good results."
The Company expects to report a net loss of $0.04 to $0.06 per diluted
share for the third quarter of fiscal 2005 versus last year's net loss of $0.05
per diluted share. The Company is increasing fiscal 2005 full-year guidance by
$0.05 per share to earnings of $0.57 to $0.59 per diluted share versus last
year's earnings of $0.43 per diluted share.
Books-A-Million is one of the nation's leading book retailers and sells on
the Internet at www.booksamillion.com. The Company presently operates 202 stores
in 18 states and the District of Columbia. The Company operates four distinct
store formats, including large superstores operating under the names
Books-A-Million and Books & Co., traditional bookstores operating under the
names Books-A-Million and Bookland, and Joe Muggs Newsstands. The Company's
wholesale operations include American Wholesale Book Company and Book$mart, both
based in Florence, Alabama.
BOOKS-A-MILLION, INC.
Unaudited Consolidated Statements of Income
(In thousands, except per share data)
13 Weeks Ended 26 Weeks Ended
-------------------------- --------------------------
July 31, August 2, July 31, August 2,
2004 2003 2004 2003
----------- ---------- ----------- -----------
NET SALES $ 114,065 $ 113,081 $ 222,580 $ 211,586
Cost of sales (including warehouse, distribution
and store occupancy costs) 83,618 82,269 162,449 155,837
----------- ---------- ----------- -----------
GROSS PROFIT 30,447 30,812 60,131 55,749
Operating, selling and administrative expenses 24,736 23,661 47,919 45,237
Depreciation and amortization 3,658 3,916 7,649 7,951
----------- ---------- ----------- -----------
OPERATING INCOME 2,053 3,235 4,563 2,561
Interest expense, net 487 848 1,005 1,717
----------- ---------- ----------- -----------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 1,566 2,387 3,558 844
Income tax provision 560 905 1,317 318
----------- ---------- ----------- -----------
INCOME FROM CONTINUING OPERATIONS 1,006 1,482 2,241 526
DISCONTINUED OPERATIONS:
Loss from discontinued operations (including loss
on disposal) (0) (191) (0) (329)
Income tax benefit (0) 70 (0) 122
------------ ---------- ------------ -----------
LOSS FROM DISCONTINUED OPERATIONS (0) (121) (0) (207)
----------- ---------- ----------- -----------
NET INCOME $ 1,006 $ 1,361 $ 2,241 $ 319
=========== ========== =========== ===========
NET INCOME PER COMMON SHARE:
Basic:
Income from continuing operations $ 0.06 $ 0.09 $ 0.14 $ 0.03
Loss from discontinued operations (0.00) (0.01) (0.00) (0.01)
----------- ---------- ---------- -----------
Net income $ 0.06 $ 0.08 $ 0.14 $ 0.02
=========== ========== ========== ===========
Diluted:
Income from continuing operations $ 0.06 $ 0.09 $ 0.13 $ 0.03
Loss from discontinued operations (0.00) (0.01) (0.00) (0.01)
----------- ---------- ---------- -----------
Net income $ 0.06 $ 0.08 $ 0.13 $ 0.02
=========== ========== ========== ===========
Weighted average shares outstanding:
Basic 16,497 16,248 16,471 16,234
=========== ========== =========== ===========
Diluted 17,225 16,518 17,220 16,435
=========== ========== =========== ===========
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.