EXHIBIT 99.1
BOOKS-A-MILLION 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 THIRD QUARTER FINANCIAL RESULTS
BIRMINGHAM, Ala. (November 16, 2004) -- Books-A-Million, Inc.
(Nasdaq/NM:BAMM) today announced financial results for the third quarter and
nine months ended October 30, 2004. Net sales for the 13-week period increased
1.8% to $104.3 million from sales of $102.4 million in the year-earlier period.
Comparable store sales for the quarter increased 0.6% when compared with the
13-week period for the prior year. Net loss for the quarter was $1.1 million, or
$0.07 per diluted share, compared with a net loss of $0.8 million, or $0.05 per
diluted share, in the year-earlier period.
For the 39-week period ended October 30, 2004, net sales increased 4.1% to
$326.1 million from sales of $313.3 million in the year-earlier period.
Comparable store sales increased 2.4% when compared with the same period of
fiscal 2004. For the 39-week period, the Company reported net income of $1.1
million, or $0.06 per diluted share, compared with a net loss of $0.4 million,
or $0.03 per diluted share, for the year-earlier period.
Commenting on the results, Sandra B. Cochran, President and Chief Executive
Officer, said, "Although the effects of the hurricane season dampened sales at
our stores throughout the South, we are pleased with our results for the
quarter. We were able to recover and deliver results consistent with our revised
guidance. We are working hard to prepare for the holiday season, with a solid
lineup of new books, including several strong movie tie-ins that we believe will
create excitement in our stores.
The Company will pay a quarterly cash dividend of $0.03 per Common Share on
December 14, 2004, to shareholders of record at the close of business on
November 30, 2004.
The Company expects to report net income of $0.49 to $0.51 per diluted
share for the fourth quarter of fiscal 2005 versus last year's net income of
$0.45 per diluted share. The Company's guidance for fiscal 2005 full-year net
income remains as previously reported at $0.55 to $0.57 per diluted share versus
last year's earnings of $0.43 per diluted share.
Books-A-Million is one of the nation's leading book retailers and sells on
the Internet at www.booksamillion.com. The Company presently operates 203 stores
in 18 states and the District of Columbia. The Company operates four distinct
store formats, including large superstores operating under the names
Books-A-Million and Books & Co., traditional bookstores operating under the
names Books-A-Million and Bookland, and Joe Muggs Newsstands. The Company's
wholesale operations include American Wholesale Book Company and Book$mart, both
based in Florence, Alabama.
BOOKS-A-MILLION, INC.
Unaudited Consolidated Statements of Income
(In thousands, except per share data)
13 Weeks Ended 39 Weeks Ended
-------------------------- --------------------------
Oct. 30, Nov. 1, Oct. 30, Nov. 1,
2004 2003 2004 2003
----------- ---------- ----------- -----------
NET SALES $ 104,286 $ 102,418 $ 326,091 $ 313,308
Cost of sales (including warehouse, distribution and
store occupancy costs) 77,064 76,058 238,928 231,338
----------- ---------- ----------- -----------
GROSS PROFIT 27,222 26,360 87,163 81,970
Operating, selling and administrative expenses 24,792 22,748 72,566 67,831
Depreciation and amortization 3,698 3,809 11,310 11,710
----------- ---------- ----------- -----------
OPERATING INCOME (LOSS) (1,268) (197) 3,287 2,429
Interest expense, net 503 747 1,508 2,464
----------- ---------- ----------- -----------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (1,771) (944) 1,779 (35)
Income tax provision (benefit) (655) (362) 659 (20)
----------- ---------- ----------- -----------
INCOME (LOSS) FROM CONTINUING OPERATIONS (1,116) (582) 1,120 (15)
DISCONTINUED OPERATIONS:
Loss from discontinued operations (including loss
on disposal) (42) (275) (34) (669)
Income tax provision (benefit) (16) (102) (13) (248)
----------- ---------- ----------- -----------
LOSS FROM DISCONTINUED OPERATIONS (26) (173) (21) (421)
----------- ---------- ----------- -----------
NET INCOME (LOSS) $ (1,142) $ (755) $ 1,099 $ (436)
=========== ========== =========== ===========
NET INCOME (LOSS) PER COMMON SHARE:
Basic:
Income (loss) from continuing operations $ (0.07) $ (0.04) $ 0.07 $ --
Loss from discontinued operations -- (0.01) -- (0.03)
----------- ---------- ----------- -----------
Net income (loss) $ (0.07) $ (0.05) $ 0.07 $ (0.03)
=========== ========== =========== ===========
Diluted:
Income (loss) from continuing operations $ (0.07) $ (0.04) $ 0.06 $ --
Loss from discontinued operations -- (0.01) -- (0.03)
----------- ---------- ----------- -----------
Net income (loss) $ (0.07) $ (0.05) $ 0.06 $ (0.03)
=========== ========== =========== ===========
Weighted average shares outstanding:
Basic 16,578 16,278 16,507 16,249
=========== ========== =========== ===========
Diluted 16,578 16,278 17,186 16,249
=========== ========== =========== ===========
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.