|
|
|
|
|
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 of Exhibit
|
|
99.1
|
|
Press Release of Barnes & Noble, Inc., dated June 22, 2016
|
BARNES & NOBLE, INC.,
|
|||
Date: June 22, 2016
|
By:
|
/s/ Allen W. Lindstrom | |
Name: Allen W. Lindstrom | |||
Title: Chief Financial Officer | |||
Exhibit No.
|
|
Description of Exhibit
|
99.1
|
|
Press Release of Barnes & Noble, Inc., dated June 22, 2016
|
Barnes & Noble, Inc.
|
Page 2
|
June 22, 2016
|
Barnes & Noble, Inc.
|
Page 3
|
June 22, 2016
|
Media Contact:
|
Investor Contact:
|
|
Mary Ellen Keating
|
Andy Milevoj
|
|
Senior Vice President
|
Vice President, Investor Relations
|
|
Corporate Communications
|
Barnes & Noble, Inc.
|
|
Barnes & Noble, Inc.
|
(212) 633-3489
|
|
(212) 633-3323
|
amilevoj@bn.com
|
|
mkeating@bn.com
|
13 weeks ended
|
13 weeks ended
|
52 weeks ended
|
52 weeks ended
|
|||||||||||||
April 30, 2016
|
May 2, 2015
|
April 30, 2016
|
May 2, 2015
|
|||||||||||||
Sales
|
$
|
876,684
|
$
|
910,079
|
$
|
4,163,844
|
$
|
4,297,108
|
||||||||
Cost of sales and occupancy
|
610,926
|
610,272
|
2,836,547
|
2,871,184
|
||||||||||||
Gross profit
|
265,758
|
299,807
|
1,327,297
|
1,425,924
|
||||||||||||
Selling and administrative expenses
|
291,715
|
280,986
|
1,176,778
|
1,192,065
|
||||||||||||
Depreciation and amortization
|
31,999
|
33,715
|
135,863
|
143,665
|
||||||||||||
Operating profit (loss)
|
(57,956
|
)
|
(14,894
|
)
|
14,656
|
90,194
|
||||||||||
Interest expense, net
|
1,537
|
2,955
|
8,770
|
17,678
|
||||||||||||
Income (loss) before taxes
|
(59,493
|
)
|
(17,849
|
)
|
5,886
|
72,516
|
||||||||||
Income taxes
|
(28,885
|
)
|
(14,830
|
)
|
(8,814
|
)
|
39,644
|
|||||||||
Net income (loss) from continuing operations
|
(30,608
|
)
|
(3,019
|
)
|
14,700
|
32,872
|
||||||||||
Net income (loss) from discontinued operations
|
-
|
(16,402
|
)
|
(39,146
|
)
|
3,724
|
||||||||||
Net income (loss)
|
$
|
(30,608
|
)
|
$
|
(19,421
|
)
|
$
|
(24,446
|
)
|
$
|
36,596
|
|||||
Basic income (loss) per common share:
|
||||||||||||||||
Income (loss) from continuing operations
|
$
|
(0.42
|
)
|
$
|
(0.12
|
)
|
$
|
0.05
|
$
|
0.15
|
||||||
Income (loss) from discontinued operations
|
0.00
|
(0.26
|
)
|
(0.54
|
)
|
0.06
|
||||||||||
Basic income (loss) per common share
|
$
|
(0.42
|
)
|
$
|
(0.37
|
)
|
$
|
(0.49
|
)
|
$
|
0.21
|
|||||
Diluted income (loss) per common share:
|
||||||||||||||||
Income (loss) from continuing operations
|
$
|
(0.42
|
)
|
$
|
(0.12
|
)
|
$
|
0.05
|
$
|
0.15
|
||||||
Income (loss) from discontinued operations
|
0.00
|
(0.26
|
)
|
(0.54
|
)
|
0.06
|
||||||||||
Diluted income (loss) per common share
|
$
|
(0.42
|
)
|
$
|
(0.37
|
)
|
$
|
(0.49
|
)
|
$
|
0.21
|
|||||
Weighted average common shares outstanding:
|
||||||||||||||||
Basic
|
73,680
|
63,198
|
72,410
|
60,842
|
||||||||||||
Diluted
|
73,680
|
63,198
|
72,542
|
60,928
|
||||||||||||
Dividends declared per common share
|
$
|
0.15
|
$
|
-
|
$
|
0.60
|
$
|
-
|
||||||||
Percentage of sales:
|
||||||||||||||||
Sales
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
||||||||
Cost of sales and occupancy
|
69.7
|
%
|
67.1
|
%
|
68.1
|
%
|
66.8
|
%
|
||||||||
Gross profit
|
30.3
|
%
|
32.9
|
%
|
31.9
|
%
|
33.2
|
%
|
||||||||
Selling and administrative expenses
|
33.3
|
%
|
30.9
|
%
|
28.3
|
%
|
27.7
|
%
|
||||||||
Depreciation and amortization
|
3.7
|
%
|
3.7
|
%
|
3.3
|
%
|
3.3
|
%
|
||||||||
Operating profit (loss)
|
-6.6
|
%
|
-1.6
|
%
|
0.4
|
%
|
2.1
|
%
|
||||||||
Interest expense, net
|
0.2
|
%
|
0.3
|
%
|
0.2
|
%
|
0.4
|
%
|
||||||||
Income (loss) before taxes
|
-6.8
|
%
|
-2.0
|
%
|
0.1
|
%
|
1.7
|
%
|
||||||||
Income taxes
|
-3.3
|
%
|
-1.6
|
%
|
-0.2
|
%
|
0.9
|
%
|
||||||||
Net income (loss) from continuing operations
|
-3.5
|
%
|
-0.3
|
%
|
0.4
|
%
|
0.8
|
%
|
||||||||
Net income (loss) from discontinued operations
|
0.0
|
%
|
-1.8
|
%
|
-0.9
|
%
|
0.1
|
%
|
||||||||
Net income (loss)
|
-3.5
|
%
|
-2.1
|
%
|
-0.6
|
%
|
0.9
|
%
|
13 weeks ended
|
13 weeks ended
|
52 weeks ended
|
52 weeks ended
|
|||||||||||||
April 30, 2016
|
May 2, 2015
|
April 30, 2016
|
May 2, 2015
|
|||||||||||||
Sales
|
||||||||||||||||
Retail
|
$
|
850,024
|
$
|
869,360
|
$
|
4,028,614
|
$
|
4,108,243
|
||||||||
NOOK
|
41,952
|
52,431
|
191,520
|
263,833
|
||||||||||||
Elimination
|
(15,292
|
)
|
(11,712
|
)
|
(56,290
|
)
|
(74,968
|
)
|
||||||||
Total
|
$
|
876,684
|
$
|
910,079
|
$
|
4,163,844
|
$
|
4,297,108
|
||||||||
Gross Profit
|
||||||||||||||||
Retail
|
$
|
248,807
|
$
|
268,444
|
$
|
1,258,405
|
$
|
1,309,397
|
||||||||
NOOK
|
16,951
|
31,363
|
68,892
|
116,527
|
||||||||||||
Total
|
$
|
265,758
|
$
|
299,807
|
$
|
1,327,297
|
$
|
1,425,924
|
||||||||
Selling and Administrative Expenses
|
||||||||||||||||
Retail
|
$
|
259,868
|
$
|
235,307
|
$
|
1,043,221
|
$
|
991,669
|
||||||||
NOOK
|
31,847
|
45,679
|
133,557
|
200,396
|
||||||||||||
Total
|
$
|
291,715
|
$
|
280,986
|
$
|
1,176,778
|
$
|
1,192,065
|
||||||||
EBITDA
|
||||||||||||||||
Retail
|
$
|
(11,061
|
)
|
$
|
33,137
|
$
|
215,184
|
$
|
317,728
|
|||||||
NOOK
|
(14,896
|
)
|
(14,316
|
)
|
(64,665
|
)
|
(83,869
|
)
|
||||||||
Total
|
$
|
(25,957
|
)
|
$
|
18,821
|
$
|
150,519
|
$
|
233,859
|
|||||||
Depreciation and Amortization
|
||||||||||||||||
Retail
|
$
|
(23,809
|
)
|
$
|
(24,420
|
)
|
$
|
(101,888
|
)
|
$
|
(104,373
|
)
|
||||
NOOK
|
(8,190
|
)
|
(9,295
|
)
|
(33,975
|
)
|
(39,292
|
)
|
||||||||
Total
|
$
|
(31,999
|
)
|
$
|
(33,715
|
)
|
$
|
(135,863
|
)
|
$
|
(143,665
|
)
|
||||
Operating Profit (Loss)
|
||||||||||||||||
Retail
|
$
|
(34,870
|
)
|
$
|
8,717
|
$
|
113,296
|
$
|
213,355
|
|||||||
NOOK
|
(23,086
|
)
|
(23,611
|
)
|
(98,640
|
)
|
(123,161
|
)
|
||||||||
Total
|
$
|
(57,956
|
)
|
$
|
(14,894
|
)
|
$
|
14,656
|
$
|
90,194
|
||||||
Net Income (Loss)
|
||||||||||||||||
Operating profit (loss)
|
$
|
(57,956
|
)
|
$
|
(14,894
|
)
|
$
|
14,656
|
$
|
90,194
|
||||||
Interest expense, net
|
(1,537
|
)
|
(2,955
|
)
|
(8,770
|
)
|
(17,678
|
)
|
||||||||
Income taxes
|
28,885
|
14,830
|
8,814
|
(39,644
|
)
|
|||||||||||
Income (loss) from discontinued operations
|
-
|
(16,402
|
)
|
(39,146
|
)
|
3,724
|
||||||||||
Total
|
$
|
(30,608
|
)
|
$
|
(19,421
|
)
|
$
|
(24,446
|
)
|
$
|
36,596
|
|||||
Percentage of sales:
|
||||||||||||||||
Gross Margin
|
||||||||||||||||
Retail
|
29.3
|
%
|
30.9
|
%
|
31.2
|
%
|
31.9
|
%
|
||||||||
NOOK
|
63.6
|
%
|
77.0
|
%
|
50.9
|
%
|
61.7
|
%
|
||||||||
Total
|
30.3
|
%
|
32.9
|
%
|
31.9
|
%
|
33.2
|
%
|
||||||||
Selling and Administrative Expenses
|
||||||||||||||||
Retail
|
30.6
|
%
|
27.1
|
%
|
25.9
|
%
|
24.1
|
%
|
||||||||
NOOK
|
119.5
|
%
|
112.2
|
%
|
98.8
|
%
|
106.1
|
%
|
||||||||
Total
|
33.3
|
%
|
30.9
|
%
|
28.3
|
%
|
27.7
|
%
|
||||||||
EBITDA
|
||||||||||||||||
Retail
|
-1.3
|
%
|
3.8
|
%
|
5.3
|
%
|
7.7
|
%
|
||||||||
NOOK
|
-55.9
|
%
|
-35.2
|
%
|
-47.8
|
%
|
-44.4
|
%
|
||||||||
Total
|
-3.0
|
%
|
2.1
|
%
|
3.6
|
%
|
5.4
|
%
|
||||||||
Depreciation and Amortization
|
||||||||||||||||
Retail
|
-2.8
|
%
|
-2.8
|
%
|
-2.5
|
%
|
-2.5
|
%
|
||||||||
NOOK
|
-30.7
|
%
|
-22.8
|
%
|
-25.1
|
%
|
-20.8
|
%
|
||||||||
Total
|
-3.7
|
%
|
-3.7
|
%
|
-3.3
|
%
|
-3.3
|
%
|
||||||||
Operating Profit (Loss)
|
||||||||||||||||
Retail
|
-4.1
|
%
|
1.0
|
%
|
2.8
|
%
|
5.2
|
%
|
||||||||
NOOK
|
-86.6
|
%
|
-58.0
|
%
|
-72.9
|
%
|
-65.2
|
%
|
||||||||
Total
|
-6.6
|
%
|
-1.6
|
%
|
0.4
|
%
|
2.1
|
%
|
April 30, 2016
|
May 2, 2015
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
13,838
|
$
|
14,646
|
||||
Receivables, net
|
124,917
|
60,265
|
||||||
Merchandise inventories, net
|
933,723
|
995,738
|
||||||
Prepaid expenses and other current assets
|
105,912
|
93,965
|
||||||
Short-term deferred taxes
|
-
|
-
|
||||||
Current assets of discontinued operations
|
-
|
447,626
|
||||||
Total current assets
|
1,178,390
|
1,612,240
|
||||||
Property and equipment:
|
||||||||
Land and land improvements
|
2,541
|
2,541
|
||||||
Buildings and leasehold improvements
|
1,058,452
|
1,057,975
|
||||||
Fixtures and equipment
|
1,560,005
|
1,531,315
|
||||||
2,620,998
|
2,591,831
|
|||||||
Less accumulated depreciation and amortization
|
2,322,418
|
2,250,096
|
||||||
Net property and equipment
|
298,580
|
341,735
|
||||||
Goodwill
|
211,276
|
215,197
|
||||||
Intangible assets, net
|
310,904
|
315,653
|
||||||
Other noncurrent assets
|
13,632
|
7,905
|
||||||
Noncurrent assets of discontinued operations
|
-
|
619,701
|
||||||
Total assets
|
$
|
2,012,782
|
$
|
3,112,431
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
480,574
|
$
|
484,574
|
||||
Accrued liabilities
|
360,194
|
326,660
|
||||||
Gift card liabilities
|
353,103
|
358,146
|
||||||
Current liabilities of discontinued operations
|
-
|
303,613
|
||||||
Total current liabilities
|
1,193,871
|
1,472,993
|
||||||
Long-term debt
|
47,200
|
-
|
||||||
Deferred taxes
|
54,017
|
15,795
|
||||||
Other long-term liabilities
|
114,184
|
162,209
|
||||||
Noncurrent liabilities of discontinued operations
|
-
|
76,017
|
||||||
Redeemable Preferred Shares
|
-
|
196,059
|
||||||
Preferred Member Interests in NOOK Media, LLC
|
-
|
-
|
||||||
Shareholders' equity:
|
||||||||
Common stock; $0.001 par value; 300,000 shares authorized;
|
||||||||
111,228 and 98,115 shares issued, respectively
|
112
|
98
|
||||||
Additional paid-in capital
|
1,738,034
|
1,927,997
|
||||||
Accumulated other comprehensive loss
|
151
|
(16,533
|
)
|
|||||
Retained earnings
|
(24,349
|
)
|
357,512
|
|||||
Treasury stock, at cost, 37,941 and 34,841 shares, respectively
|
(1,110,438
|
)
|
(1,079,716
|
)
|
||||
Total shareholders' equity
|
603,510
|
1,189,358
|
||||||
Commitments and contingencies
|
-
|
-
|
||||||
Total liabilities and shareholders' equity
|
$
|
2,012,782
|
$
|
3,112,431
|
13 weeks ended
|
13 weeks ended
|
52 weeks ended
|
52 weeks ended
|
|||||||||||||
April 30, 2016
|
May 2, 2015
|
April 30, 2016
|
May 2, 2015
|
|||||||||||||
Numerator for basic income (loss) per share:
|
||||||||||||||||
Net income (loss) from continuing operations attributable to Barnes & Noble, Inc.
|
$
|
(30,608
|
)
|
$
|
(3,019
|
)
|
$
|
14,700
|
$
|
32,872
|
||||||
Inducement fee paid upon conversion of Series J preferred stock
|
-
|
-
|
(3,657
|
)
|
-
|
|||||||||||
Preferred stock dividends
|
-
|
(3,942
|
)
|
-
|
(15,767
|
)
|
||||||||||
Preferred stock dividends paid in shares
|
-
|
-
|
(1,783
|
)
|
-
|
|||||||||||
Accretion of dividends on preferred stock
|
-
|
(315
|
)
|
(4,204
|
)
|
(7,339
|
)
|
|||||||||
Less allocation of dividends to participating securities
|
(220
|
)
|
-
|
(1,219
|
)
|
-
|
||||||||||
Less allocation of undistributed earnings to participating securities
|
-
|
-
|
-
|
(535
|
)
|
|||||||||||
Net income (loss) from continuing operations available to common shareholders
|
(30,828
|
)
|
(7,276
|
)
|
3,837
|
9,231
|
||||||||||
Net income (loss) from discontinued operations attributable to Barnes & Noble, Inc.
|
-
|
(16,402
|
)
|
(39,146
|
)
|
3,724
|
||||||||||
Less allocation of undistributed earnings to participating securities
|
-
|
-
|
-
|
(204
|
)
|
|||||||||||
Net income (loss) from discontinued operations available to common shareholders
|
-
|
(16,402
|
)
|
(39,146
|
)
|
3,520
|
||||||||||
Net income (loss) available to common shareholders
|
$
|
(30,828
|
)
|
$
|
(23,678
|
)
|
$
|
(35,309
|
)
|
$
|
12,751
|
|||||
Numerator for diluted income (loss) per share:
|
||||||||||||||||
Net income (loss) from continuing operations available to common shareholders
|
$
|
(30,828
|
)
|
$
|
(7,276
|
)
|
$
|
3,837
|
$
|
9,231
|
||||||
Preferred stock dividends (a)
|
-
|
-
|
-
|
-
|
||||||||||||
Accretion of dividends on preferred stock (a)
|
-
|
-
|
-
|
-
|
||||||||||||
Allocation of undistributed earnings to participating securities
|
-
|
-
|
-
|
535
|
||||||||||||
Less diluted allocation of undistributed earnings to participating securities
|
-
|
-
|
-
|
(534
|
)
|
|||||||||||
Net income (loss) from continuing operations available to common shareholders
|
(30,828
|
)
|
(7,276
|
)
|
3,837
|
9,232
|
||||||||||
Net income (loss) from discontinued operations available to common shareholders
|
-
|
(16,402
|
)
|
(39,146
|
)
|
3,520
|
||||||||||
Allocation of undistributed earnings to participating securities
|
-
|
-
|
-
|
204
|
||||||||||||
Less diluted allocation of undistributed earnings to participating securities
|
-
|
-
|
-
|
(204
|
)
|
|||||||||||
Net income (loss) from discontinued operations available to common shareholders
|
-
|
(16,402
|
)
|
(39,146
|
)
|
3,520
|
||||||||||
Net income (loss) available to common shareholders
|
$
|
(30,828
|
)
|
$
|
(23,678
|
)
|
$
|
(35,309
|
)
|
$
|
12,752
|
|||||
Denominator for basic income (loss) per share:
|
||||||||||||||||
Basic weighted average common shares
|
73,680
|
63,198
|
72,410
|
60,842
|
||||||||||||
Denominator for diluted income (loss) per share:
|
||||||||||||||||
Basic weighted average common shares
|
73,680
|
63,198
|
72,410
|
60,842
|
||||||||||||
Preferred shares (a)
|
-
|
-
|
-
|
-
|
||||||||||||
Average dilutive options
|
-
|
-
|
118
|
86
|
||||||||||||
Average dilutive non-participating securities
|
-
|
-
|
14
|
-
|
||||||||||||
Diluted weighted average common shares
|
73,680
|
63,198
|
72,542
|
60,928
|
||||||||||||
Basic income (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||
Income (loss) from continuing operations
|
$ |
(0.42
|
) | $ |
(0.12
|
)
|
$ |
0.05
|
|
$ |
0.15
|
|||||
Income (loss) from discontinued operations
|
|
-
|
|
|
(0.26
|
)
|
|
(0.54
|
)
|
|
0.06
|
|||||
Basic income (loss) per common share
|
$ |
(0.42
|
) | $ |
(0.37
|
) | $ | (0.49 | ) | $ | 0.21 | |||||
Diluted income (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||
Income (loss) from continuing operations
|
$ |
(0.42
|
) | $ |
(0.12
|
)
|
$ |
(0.05
|
)
|
$ |
0.15
|
|||||
Income (loss) from discontinued operations
|
|
-
|
|
|
(0.26
|
)
|
|
(0.54
|
)
|
|
0.06
|
|||||
Diluted income (loss) per common share
|
$ | (0.42 | ) | $ | (0.37 | ) | $ | (0.49 | ) | $ | 0.21 | |||||
(a) Although the Company was in a net income position during the 52 weeks ended April 30, 2016 and May 2, 2015, the dilutive effect of the Company’s convertible preferred shares were excluded from the calculation of income per share using the two-class method because the effect would be antidilutive.
|
Forward Looking Range
|
||||||||
EBITDA
|
||||||||
Retail
|
$
|
240
|
$
|
280
|
||||
NOOK
|
(40
|
)
|
(30
|
)
|
||||
Total
|
$
|
200
|
$
|
250
|
||||
Operating Profit
|
||||||||
EBITDA
|
$
|
200
|
$
|
250
|
||||
Depreciation and amortization
|
(120
|
)
|
(120
|
)
|
||||
Total
|
$
|
80
|
$
|
130
|