Delaware
|
1-12302
|
06-1196501
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
122 Fifth Avenue, New York, New York
|
10011
|
(Address of principal executive offices)
|
(Zip Code)
|
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02
|
Results of Operations and Financial Condition.
|
Item 9.01.
|
Financial Statements and Exhibits
|
Exhibit No.
|
Description
|
|
99.1
|
Transcript of earnings conference call held by Barnes & Noble, Inc. on September 9, 2015.
|
BARNES & NOBLE, INC.,
|
|||
Date: September 11, 2015
|
By:
|
/s/ Bradley A. Feuer | |
Name: Bradley A. Feuer | |||
Title: Vice President, General Counsel and Corporate Secretary | |||
Exhibit No.
|
Description
|
|
99.1
|
Transcript of earnings conference call held by Barnes & Noble, Inc. on September 9, 2015.
|
|
|
|
|
|
|||||||
BARNES & NOBLE, INC. AND SUBSIDIARIES
|
|||||||||||
Consolidated Statements of Operations
|
|||||||||||
(In thousands, except per share data)
|
|||||||||||
(Unaudited)
|
|||||||||||
|
|||||||||||
|
|
|
|
|
|
|
|
||||
|
|||||||||||
13 weeks ended
|
13 weeks ended
|
||||||||||
August 1, 2015
|
|
|
August 2, 2014
|
||||||||
|
|||||||||||
Sales
|
$
|
1,217,542
|
$
|
1,236,447
|
|||||||
Cost of sales and occupancy
|
|
865,157
|
|
|
853,755
|
|
|||||
Gross profit
|
|
352,385
|
|
|
382,692
|
|
|||||
Selling and administrative expenses
|
358,774
|
353,141
|
|||||||||
Depreciation and amortization
|
|
46,753
|
|
|
50,269
|
|
|||||
Operating loss
|
(53,142
|
)
|
(20,718
|
)
|
|||||||
Interest expense, net
|
|
2,922
|
|
|
5,920
|
|
|||||
Loss before taxes
|
(56,064
|
)
|
(26,638
|
)
|
|||||||
Income taxes
|
|
(21,190
|
)
|
|
1,811
|
|
|||||
Net loss
|
$
|
(34,874
|
)
|
$
|
(28,449
|
)
|
|||||
|
|||||||||||
|
|||||||||||
Loss per common share:
|
|||||||||||
Basic
|
$
|
(0.68
|
)
|
$
|
(0.56
|
)
|
|||||
Diluted
|
$
|
(0.68
|
)
|
$
|
(0.56
|
)
|
|||||
|
|||||||||||
Weighted average common shares outstanding:
|
|||||||||||
Basic
|
65,547
|
59,236
|
|||||||||
Diluted
|
65,547
|
59,236
|
|||||||||
|
|||||||||||
Dividends declared per common share
|
$
|
0.15
|
$
|
-
|
|||||||
|
|||||||||||
Percentage of sales:
|
|||||||||||
Sales
|
100.0
|
%
|
100.0
|
%
|
|||||||
Cost of sales and occupancy
|
|
71.1
|
%
|
|
|
|
69.0
|
%
|
|||
Gross profit
|
|
28.9
|
%
|
|
|
|
31.0
|
%
|
|||
Selling and administrative expenses
|
29.5
|
%
|
28.6
|
%
|
|||||||
Depreciation and amortization
|
|
3.8
|
%
|
|
|
|
4.1
|
%
|
|||
Operating loss
|
-4.4
|
%
|
-1.7
|
%
|
|||||||
Interest expense, net
|
|
0.2
|
%
|
|
|
|
0.5
|
%
|
|||
Loss before taxes
|
-4.6
|
%
|
-2.2
|
%
|
|||||||
Income taxes
|
|
-1.7
|
%
|
|
|
|
0.1
|
%
|
|||
Net loss
|
-2.9
|
%
|
-2.3
|
%
|
|||||||
|
|
|
|
|
|
|||||||
BARNES & NOBLE, INC. AND SUBSIDIARIES
|
|||||||||||
Consolidated Balance Sheets
|
|||||||||||
(In thousands)
|
|||||||||||
(Unaudited)
|
|||||||||||
|
|
|
|
|
|
|
|
||||
|
|||||||||||
August 1, 2015
|
August 2, 2014
|
||||||||||
|
|||||||||||
|
|||||||||||
ASSETS
|
|||||||||||
Current assets:
|
|||||||||||
Cash and cash equivalents
|
$
|
37,194
|
$
|
180,243
|
|||||||
Receivables, net
|
99,849
|
120,313
|
|||||||||
Merchandise inventories, net
|
1,785,058
|
1,683,568
|
|||||||||
Textbook rental inventories
|
9,915
|
8,204
|
|||||||||
Prepaid expenses and other current assets
|
88,118
|
70,952
|
|||||||||
Short-term deferred taxes
|
|
142,807
|
|
|
141,614
|
|
|||||
Total current assets
|
2,162,941
|
2,204,894
|
|||||||||
|
|||||||||||
Property and equipment:
|
|||||||||||
Land and land improvements
|
2,541
|
2,541
|
|||||||||
Buildings and leasehold improvements
|
1,209,591
|
1,234,096
|
|||||||||
Fixtures and equipment
|
|
1,897,757
|
|
|
1,959,460
|
|
|||||
3,109,889
|
3,196,097
|
||||||||||
Less accumulated depreciation and amortization
|
|
2,670,487
|
|
|
2,717,560
|
|
|||||
Net property and equipment
|
|
439,402
|
|
|
478,537
|
|
|||||
|
|||||||||||
Goodwill
|
489,267
|
493,189
|
|||||||||
Intangible assets, net
|
510,904
|
524,374
|
|||||||||
Other noncurrent assets
|
|
51,275
|
|
|
47,660
|
|
|||||
Total assets
|
$
|
3,653,789
|
|
$
|
3,748,654
|
|
|||||
|
|||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|||||||||||
Current liabilities:
|
|||||||||||
Accounts payable
|
$
|
1,202,540
|
$
|
1,101,148
|
|||||||
Accrued liabilities
|
375,095
|
402,241
|
|||||||||
Gift card liabilities
|
344,239
|
338,555
|
|||||||||
Short-term note payable
|
|
-
|
|
|
127,250
|
|
|||||
Total current liabilities
|
|
1,921,874
|
|
|
1,969,194
|
|
|||||
|
|||||||||||
Long-term deferred taxes
|
200,548
|
220,158
|
|||||||||
Other long-term liabilities
|
192,967
|
366,769
|
|||||||||
|
|||||||||||
Redeemable Preferred Shares
|
-
|
195,113
|
|||||||||
|
|||||||||||
Preferred Member Interests in NOOK Media, LLC
|
-
|
383,839
|
|||||||||
|
|||||||||||
Shareholders' equity:
|
|||||||||||
Common stock; $0.001 par value; 300,000 shares authorized;
|
|||||||||||
110,382 and 93,676 shares issued, respectively
|
110
|
94
|
|||||||||
Additional paid-in capital
|
2,134,484
|
1,399,923
|
|||||||||
Accumulated other comprehensive loss
|
(16,533
|
)
|
(27,520
|
)
|
|||||||
Retained earnings
|
301,264
|
310,873
|
|||||||||
Treasury stock, at cost, 34,892 and 34,402 shares, respectively
|
|
(1,080,925
|
)
|
|
(1,069,789
|
)
|
|||||
Total shareholders' equity
|
|
1,338,400
|
|
|
613,581
|
|
|||||
Noncontrolling interest
|
|
-
|
|
|
-
|
|
|||||
Total shareholders' equity
|
|
1,338,400
|
|
|
613,581
|
|
|||||
Commitments and contingencies
|
|
-
|
|
|
-
|
|
|||||
Total liabilities and shareholders' equity
|
$
|
3,653,789
|
|
$
|
3,748,654
|
|
|||||
|
|
|
|
|
|||||||
BARNES & NOBLE, INC. AND SUBSIDIARIES
|
||||||||||
Segment Information
|
||||||||||
(In thousands)
|
||||||||||
(Unaudited)
|
||||||||||
|
|
|
|
|
|
|
|
|||
|
||||||||||
13 weeks ended
|
13 weeks ended
|
|||||||||
August 1, 2015
|
|
|
August 2, 2014
|
|||||||
|
||||||||||
Sales
|
||||||||||
Retail
|
$
|
938,998
|
$
|
954,807
|
||||||
College
|
238,983
|
226,094
|
||||||||
NOOK
|
54,335
|
70,027
|
||||||||
Elimination
|
(14,774
|
)
|
(14,481
|
)
|
||||||
Total
|
$
|
1,217,542
|
|
$
|
1,236,447
|
|
||||
|
||||||||||
Gross Profit
|
||||||||||
Retail
|
$
|
282,401
|
$
|
294,642
|
||||||
College
|
51,670
|
47,438
|
||||||||
NOOK
|
18,314
|
|
40,612
|
|
||||||
Total
|
$
|
352,385
|
|
$
|
382,692
|
|
||||
|
||||||||||
Selling and Administrative Expenses
|
||||||||||
Retail
|
$
|
237,289
|
$
|
228,502
|
||||||
College
|
85,795
|
79,441
|
||||||||
NOOK
|
35,690
|
|
45,198
|
|
||||||
Total
|
$
|
358,774
|
|
$
|
353,141
|
|
||||
|
||||||||||
EBITDA
|
||||||||||
Retail
|
$
|
45,112
|
$
|
66,140
|
||||||
College
|
(34,125
|
)
|
(32,003
|
)
|
||||||
NOOK
|
(17,376
|
)
|
(4,586
|
)
|
||||||
Total
|
$
|
(6,389
|
)
|
$
|
29,551
|
|
||||
|
||||||||||
Net Income (Loss)
|
||||||||||
EBITDA
|
$
|
(6,389
|
)
|
$
|
29,551
|
|||||
Depreciation and Amortization
|
(46,753
|
)
|
(50,269
|
)
|
||||||
Interest Expense, net
|
(2,922
|
)
|
(5,920
|
)
|
||||||
Income Taxes
|
21,190
|
|
(1,811
|
)
|
||||||
Total
|
$
|
(34,874
|
)
|
$
|
(28,449
|
)
|
||||
|
||||||||||
|
||||||||||
|
||||||||||
Percentage of sales:
|
||||||||||
|
||||||||||
Gross Margin
|
||||||||||
Retail
|
30.1
|
%
|
30.9
|
%
|
||||||
College
|
21.6
|
%
|
21.0
|
%
|
||||||
NOOK
|
46.3
|
%
|
73.1
|
%
|
||||||
Total
|
28.9
|
%
|
31.0
|
%
|
||||||
|
||||||||||
Selling and Administrative Expenses
|
||||||||||
Retail
|
25.3
|
%
|
23.9
|
%
|
||||||
College
|
35.9
|
%
|
35.1
|
%
|
||||||
NOOK
|
90.2
|
%
|
81.4
|
%
|
||||||
Total
|
29.5
|
%
|
28.6
|
%
|
||||||
|
|
|
|
|
|
|||||||
BARNES & NOBLE, INC. AND SUBSIDIARIES
|
|||||||||||
Earnings (Loss) Per Share
|
|||||||||||
(In thousands, except per share data)
|
|||||||||||
(Unaudited)
|
|||||||||||
|
|
|
|
|
|
|
|
||||
|
|||||||||||
13 weeks ended
|
13 weeks ended
|
||||||||||
August 1, 2015
|
August 2, 2014
|
||||||||||
Numerator for basic loss per share:
|
|||||||||||
Net loss attributable to Barnes & Noble, Inc.
|
$
|
(34,874
|
)
|
$
|
(28,449
|
)
|
|||||
Inducement fee paid upon Conversion of Series J preferred stock
|
(3,657
|
)
|
(3,942
|
)
|
|||||||
Preferred stock dividends paid in shares
|
(1,783
|
)
|
-
|
||||||||
Accretion of dividends on preferred stock
|
|
(4,204
|
)
|
|
(758
|
)
|
|||||
Net loss available to common shareholders
|
$
|
(44,518
|
)
|
$
|
(33,149
|
)
|
|||||
|
|||||||||||
Numerator for diluted loss per share:
|
|||||||||||
Net loss available to common shareholders
|
$
|
(44,518
|
)
|
$
|
(33,149
|
)
|
|||||
|
|||||||||||
Denominator for basic and diluted loss per share:
|
|||||||||||
Basic weighted average common shares
|
65,547
|
59,236
|
|||||||||
|
|||||||||||
Dividends declared per common share
|
$
|
0.15
|
$
|
-
|
|||||||
|
|||||||||||
Loss per common share:
|
|||||||||||
Basic
|
$
|
(0.68
|
)
|
$
|
(0.56
|
)
|
|||||
Diluted
|
$
|
(0.68
|
)
|
$
|
(0.56
|
)
|
|||||
|