Fiscal 2012 Comparable Digital Content Sales Increase 119%
Fourth Quarter Bookstore Comparable Sales Increase 4.5%
Fiscal 2012 EBITDA Increased 5% to $171 million
Fiscal 2012 Retail EBITDA Increased 22% to $317 million
Yesterday reported revenue and income for its fiscal 2012 4th 1 / 4 and 12 months ended Apr 28, 2012. The organization also declared that it recently completed the evaluation of its confirming segments and will now report outcomes for a separate "NOOK" operating section. BN.com, previously a separate confirming section, will now be included in the Retail store section.
Fourth 1 / 4 combined income enhanced 0.4% to $1.4 million as as opposed to before season. The combined 4th 1 / 4 income before interest, taxes, depreciation and amortization (EBITDA) loss of $11.1 thousand enhanced 51% as as opposed to before season. The combined 4th 1 / 4 net loss enhanced 3% as as opposed to before season to $57.7 thousand, or $1.08 per discuss.
For fiscal 2012, combined income enhanced 2% to $7.1 million as as opposed to before season. Financial 2012 combined EBITDA enhanced 5% to $171.4 thousand. Included in these outcomes are pre-tax legal and settlement-related net expenses of $20.7 thousand, and $14 thousand relating to patent litigation with Ms, which as declared on Apr 30, 2012, has been settled. The fiscal 2012 combined net loss enhanced 7% as as opposed to before season to $68.9 thousand, or $1.41 per discuss.
The organization's effective tax rate was 27% for the 1 / 4 and 29% for the 12 months due primarily to a $5.9 thousand compensation-related permanent tax difference charge relevant to before times, which was charged to the current period. The impact of this charge to 4th 1 / 4 and 12 months income per discuss was $0.10.
"We grew our company this year while continuing to make the necessary investments for the future of the company," said William Lynch, Chief Executive Officer of Barnes & Noble. "In electronic, our NOOK articles revenue ongoing to explode with 119% year-on season growth. In the 1 / 4 we also declared a historic new partnership with Ms that will consist of a significant investment in Newco, and that will capitalize the organization to fuel ongoing growth in electronic and international expansion. Lastly, we declared NOOK Simple Touch with GlowLight, that we started shipping in the first 1 / 4 of fiscal 2013, which has quickly become the highest rated eReader in the market. At retail, we had a terrific season growing similar book store revenue 4.5% for the 1 / 4 and 1.4% for the season, a result of our effective new merchandising efforts and ongoing industry consolidation. As we look out to fiscal 2013, we feel the organization is strategically well positioned to grow value for shareholders."
Retail
As a result of the change in section confirming, the Retail store section now includes outcomes from the Barnes & Noble book shops and BN.com. Retail store revenue were $1.1 million for the 1 / 4 and $4.9 million for the 12 months, improving 0.5% for the 1 / 4 while decreasing 1.5% for the fiscal season. Comparable book store revenue enhanced 4.5% for the 1 / 4 and 1.4% for the 12 months, as as opposed to before season times. Comparable book store revenue benefited from the liquidation of Borders' book shops during fiscal 2012, enhanced revenue of NOOK products, and a strong title lineup including The Hunger Games and Fifty Shades of Grey trilogies. Core similar book store revenue, which exclude revenue of NOOK products, enhanced 6.9% for the 1 / 4 and 0.7% for the 12 months. BN.com revenue ongoing to decline for the 1 / 4 as well as the fiscal season.
College
The Higher education section, which includes outcomes from the Barnes & Noble Higher education book shops, had income of $228 thousand for the 1 / 4 and $1.7 million for the 12 months, improving 5.7% for the 1 / 4 and decreasing 1.9% for the season, as as opposed to before season. As as opposed to season ago period, 4th 1 / 4 revenue were positively impacted by the recognition of publication lease revenue deferred from the third 1 / 4. However, 12 months revenue were reduced as in comparison to a season ago, due to a shift from promoting new and used textbooks to cheaper publication rentals. Comparable Higher education store revenue decreased 2.2% for the 1 / 4 and 0.3% for the 12 months, as as opposed to before season times. Higher education similar store revenue reflect the retail rate of a new or used publication when rented, rather than solely the lease fee received and amortized over the lease period.
NOOK
The NOOK section, which consists of the organization's electronic company (including Readers, electronic articles and accessories), had income of $164 thousand for the 1 / 4 and $933 thousand for the 12 months. NOOK section similar revenue enhanced 1% for it all 1 / 4 while improving 45% for the 12 months, as as opposed to before season times. System revenue declined during it all 1 / 4 due to higher third-party channel partner returns, reduced promoting volume and reduced average prices. In order to optimize the supply chain for new products, the organization took back NOOK Simple Touch inventory following the previously declared holiday revenue shortfall. Digital articles revenue enhanced 65% for it all 1 / 4 and 119% for the 12 months on a similar basis, growing similar electronic articles revenue to $483 thousand for the 12 months. Digital articles revenue are defined to consist of e-books, electronic newsstand, and the apps company.
Comparable NOOK revenue reflect the actual rate for e-books sold under the agency model rather than solely the commission received. Additionally, such revenue consist of all deferred NOOK device income, and device revenue to third-party channel partners on a "sell-in" basis net of estimated returns.
Newco Separation
On Apr 30th, the organization declared that it has formed a strategic partnership with Ms to form a new subsidiary, Newco, which is comprised of the organization's NOOK electronic and Higher education businesses. The organization continues to be actively engaged in the formation of Newco and is in the process of implementing the work necessary to complete the separation and close the Ms transaction.