Books-A-Million's fiscal Q3 loss widens to US$6.9M from loss of US$2.8M a year ago as revenues fall 3.5% to US$100.4M, comparable-store sales decline 8.5%

BIRMINGHAM, Alabama , November 29, 2013 (press release) – Books-A-Million, Inc. (NASDAQ:BAMM) today announced financial results for the 13-week and 39-week periods ended November 2, 2013. Revenues for the 13-week period ended November 2, 2013 decreased 3.5% to $100.4 million, compared with revenues of $104.0 million in the year-earlier period. Comparable store sales for the third quarter declined 8.5%, compared with the 13-week period in the prior year. Net loss from continuing operations for the third quarter was $7.1 million, or $0.47 per diluted share, compared with net loss from continuing operations of $2.7 million, or $0.18 per diluted share, in the year-earlier period. For the 39-week period ended November 2, 2013, revenues decreased 6.6% to $313.6 million from net revenues of $335.8 million in the year-earlier period. Comparable store sales declined 9.2%, compared with the same period in the prior year. For the 39-week period ended November 2, 2013, the Company reported a net loss from continuing operations of $19.7 million, or $1.33 per diluted share, compared with net loss from continuing operations of $5.4 million, or $0.36 per diluted share, in the year-earlier period.

Commenting on the results, Terrance G. Finley, Chief Executive Officer and President, said, “Our third quarter results are an improvement over the very difficult comparisons in the first half of the year. Comparable store sales improved throughout the quarter, and we are encouraged by the book and merchandise lineup as we prepare for the holiday season.”

ABOUT BOOKS-A-MILLION, INC.

Books-A-Million, Inc. is one of the nation’s leading book retailers and sells on the Internet at www.booksamillion.com. The Company presently operates 258 stores in 33 states and the District of Columbia. The Company operates large superstores under the names Books-A-Million (BAM!), Books & Co. and 2nd & Charles and traditional bookstores operating under the names Bookland and Books-A-Million. Also included in the Company’s retail operations is the operation of Yogurt Mountain Holding, LLC, a retailer and franchisor of self-serve frozen yogurt stores with 41 locations. The Company also develops and manages commercial real estate investments through its subsidiary, Preferred Growth Properties. The common stock of Books-A-Million, Inc. is traded on the NASDAQ Global Select Market under the symbol BAMM. For more information, visit the Company’s corporate website at www.booksamillioninc.com.

Follow Books-A-Million on Twitter (http://twitter.com/booksamillion) and like us on Facebook (http://facebook.com/booksamillion).

                       
  BOOKS-A-MILLION, INC.
  Unaudited Consolidated Financial Highlights
 

(In thousands, except per share data)

                       
            Thirteen Weeks Ended         Thirty-Nine Weeks Ended
           

November 2,
2013

     

October 27,
2012

       

November 2,
2013

     

October 27,
2012

                    (a)                 (a)
  Revenue                                    
  Net sales       $ 99,888       $ 103,904         $ 312,299       $ 335,563  
  Other revenue         478         79           1,275         218  
  Total revenues         100,366         103,983           313,574         335,781  
 

Cost of products sold, including warehouse distribution and store occupancy costs

        74,119         76,511           227,709         244,189  
  Gross profit         26,247         27,472           85,865         91,592  
 

Operating, selling and administrative expenses

        28,686         27,697           87,294         86,789  
  Depreciation and amortization         4,765         4,114           13,492         12,352  
  Operating loss from continuing operations         (7,204 )       (4,339 )         (14,921 )       (7,549 )
  Interest expense, net         620         440           1,512         1,330  
 

Loss from continuing operations, before income taxes

        (7,824 )       (4,779 )         (16,433 )       (8,879 )
  Income tax expense (benefit)         (596 )       (2,256 )         3,422         (3,684 )
 

Net loss from continuing operations before equity method investment

        (7,228 )       (2,523 )         (19,855 )       (5,195 )
 

Net income (loss) on equity method investment

        113         (171 )         112         (252 )
  Net loss from continuing operations         (7,115 )       (2,694 )         (19,743 )       (5,447 )
  Loss from discontinued operations         (22 )       (81 )         (229 )       (151 )
  Net loss       $ (7,137 )     $ (2,775 )       $ (19,972 )     $ (5,598 )
  Less net loss attributable to noncontrolling interest         (197 )       --           (218 )       --  
  Net loss attributable to Books-A-Million       $ (6,940 )     $ (2,775 )       $ (19,754 )     $ (5,598 )
                                       
  Net loss per share:                                    
  Basic and Diluted                                    
 

Net loss from continuing operations attributable to Books-A-Million

      $ (0.47 )     $ (0.18 )       $ (1.33 )     $ (0.36 )
 

Net loss from discontinued operations attributable to Books-A-Million

        (0.00 )       (0.00 )         (0.01 )       (0.01 )
 

Net loss per common share attributable to Books-A-Million

      $ (0.47 )     $ (0.18 )       $ (1.34 )     $ (0.37 )
 

Weighted average number of shares outstanding – basic and diluted

        14,657         15,286           14,725         15,331  
                                       

(a)

The results for the 13-weeks and 39-weeks ended October 27, 2012, contain certain reclassifications for discontinued operations and other insignificant reclassifications necessary to conform to the presentation of the 13-weeks and 39-weeks ended November 2, 2013.

                                       

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; and the impact of the availability of e-content and the e-reader market. 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, stockholders and prospective investors are cautioned not to place undue reliance on such forward-looking statements. Please refer to the Company’s annual, quarterly and periodic reports on file with the SEC for a more detailed discussion of these and other risks that could cause results to differ materially. 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.

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