BOOKS-A-MILLION(R) 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 FIRST QUARTER RESULTS
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Earnings Increase to $0.09 Per Diluted Share
BIRMINGHAM, Ala. (May 18, 2006) -- Books-A-Million, Inc. (Nasdaq/NM:BAMM)
today announced financial results for the first quarter ended April 29, 2006.
Net income increased to $1.5 million, or $0.09 per diluted share, compared with
net income of $1.1 million, or $0.06 per diluted share, in the year-earlier
period. The increase in net income was attributable to lower depreciation
expense as capital expenditures made several years ago became fully depreciated
in the current period as well as reduced interest expense as a result of lower
average debt balances versus the prior year.
Net sales for the 13-week period increased 1.0% to $113.8 million from
sales of $112.6 million in the year-earlier period. Comparable store sales for
the quarter decreased 0.3% when compared with the 13-week period for the prior
year.
Commenting on the results, Sandra B. Cochran, President and Chief Executive
Officer, said, "The first quarter was clearly challenging. A weak bestseller
lineup and a soft media environment contributed to the disappointing comparable
store sales results. While history, game books, humor titles, gifts and bargain
books all performed well, they did not make up for the difficult quarter in the
children's books, cooking, diet and health and inspirational categories.
"As we enter the second quarter, we face a tough comparison to last year
which included the release of Harry Potter And The Half Blood Prince. However,
we are somewhat encouraged by a stronger book lineup, including new titles from
Fannie Flagg, Patricia Cornwell, Anne Coulter and Janet Evanovich. We are also
encouraged by the summer movie season that includes tie-ins with successful
titles like The Da Vinci Code, Pirates Of The Caribbean: Dead Man's Chest,
Running With Scissors, and The Devil Wears Prada."
In addition, the Board of Directors has declared a quarterly cash dividend
of $0.08 per common share. The dividend will be paid on June 15, 2006, to
shareholders of record at the close of business on June 1, 2006.
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 205 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.
BOOKS-A-MILLION, INC.
Unaudited Consolidated Financial Highlights
(In thousands, except per share data)
13 Weeks Ended
April 29, April 30,
2006 2005
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NET SALES $ 113,748 $ 112,625
Cost of sales (including warehouse, distribution and store occupancy costs) 81,148 81,058
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GROSS PROFIT 32,600 31,567
Operating, selling and administrative expenses 26,565 25,514
Depreciation and amortization 3,426 3,927
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OPERATING INCOME 2,609 2,126
Interest expense, net 56 384
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INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 2,553 1,742
Income tax provision 1,031 662
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INCOME FROM CONTINUING OPERATIONS 1,522 1,080
DISCONTINUED OPERATIONS:
(Loss) income from discontinued operations (including loss on disposal) (17) (32)
Income tax (benefit) provision (7) (12)
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(LOSS) INCOME FROM DISCONTINUED OPERATIONS (10) (20)
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NET INCOME $ 1,512 $ 1,060
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NET INCOME PER COMMON SHARE:
Basic:
Income from continuing operations $ 0.09 $ 0.07
Loss from discontinued operations -- --
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Net income $ 0.09 $ 0.07
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Diluted:
Income from continuing operations $ 0.09 $ 0.06
Loss from discontinued operations -- --
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Net income $ 0.09 $ 0.06
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Weighted average shares outstanding:
Basic 16,471 16,201
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Diluted 17,001 16,922
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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.