BARNES & NOBLE EDUCATION, INC. | ||||
(Exact name of registrant as specified in its charter) | ||||
Delaware | 1-37499 | 46-0599018 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
120 Mountain View Blvd., Basking Ridge, NJ | 07920 | |||
(Address of principal executive offices) | (Zip Code) | |||
Registrant’s telephone number, including area code: (908) 991-2665 | ||||
Not Applicable | ||||
(Former name or former address, if changed since last report) |
□ | 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)) |
Exhibit No. | Description | |
99.1 | Press Release of Barnes & Noble Education, Inc., dated July 12, 2017. |
Exhibit No. | Description | |
99.1 | Press Release of Barnes & Noble Education, Inc., dated July 12, 2017. |
Media Contact: | Investor Contact: | ||
Carolyn J. Brown | Thomas Donohue | ||
Vice President | Vice President | ||
Corporate Communications | Treasurer and Investor Relations | ||
Barnes & Noble Education, Inc. | Barnes & Noble Education, Inc. | ||
(908) 991-2967 | (908) 991-2966 | ||
cbrown@bned.com | tdonohue@bned.com |
• | Consolidated fourth quarter sales of $342.8 million increased 16.3%, as compared to the prior year period; fiscal full year sales of $1,874.4 million increased 3.7%, as compared to the prior year period. |
• | Fourth quarter comparable store sales increased 1.4% for BNC, as compared to the prior year period; fiscal full year comparable store sales decreased 3.0% for BNC, as compared to the prior year period, and decreased by 1.8% when excluding community colleges. |
• | Consolidated fourth quarter GAAP net income of $0.2 million, as compared to a net loss of $2.8 million in the prior year period; full year net income of $5.4 million, as compared to $0.1 million in the prior year period. |
• | Consolidated fourth quarter non-GAAP Adjusted EBITDA of $25.6 million, an increase of $6.8 million, as compared to the prior year period; full year non-GAAP Adjusted EBITDA of $78.3 million, a decrease of $2.2 million, as compared to the prior year period. The Adjusted EBITDA is $82.5 million for the full fiscal year, an increase of $2.0 million, excluding MBS and intercompany eliminations. |
◦ | BNC fourth quarter non-GAAP Adjusted EBITDA was $29.8 million, an increase of $11.0 million, as compared with the prior year period; full year non-GAAP Adjusted EBITDA was $82.5 million, an increase of $2.0 million, as compared with the prior year period. |
◦ | MBS fourth quarter and full year non-GAAP Adjusted EBITDA was $(3.6) million. |
• | Consolidated fourth quarter non-GAAP Adjusted Earnings of $4.5 million, as compared to Adjusted Earnings of $3.0 million in the prior year period; full year non-GAAP Adjusted Earnings of $12.3 million, as compared to $15.5 million in the prior year period. |
• | BNC opened 38 new stores with estimated annual sales of $118 million, bringing the total stores operated to 769 locations as of April 30, 2017. The Company currently has contracts to open 23 new stores with estimated annual sales of $50 million in fiscal 2018. |
• | Completed the acquisition of MBS Textbook Exchange, the largest contract operator of virtual bookstores, one of the largest used college textbook wholesalers, bookstore system providers and distributors of direct-to-student course materials in the nation. The acquisition expands the Company’s addressable market to include higher education institutions and K-12 schools that need virtual bookstore solutions, enables BNED to optimize its textbook sourcing and expands its customer base for digital courseware and analytics. BNED now operates 1,481 physical and virtual bookstores, including 712 MBS stores, and serves more than 6 million students enrolled in higher education and K-12 institutions. |
• | MBS opened 80 virtual stores with estimated annual sales of $17 million in fiscal 2017 and has contracts to open 46 virtual stores with estimated annual sales of $8 million in fiscal 2018. |
• | Announced partnership with Unizin, a nonprofit consortium focused on promoting affordability, access, and student success in digital education, to provide Unizin’s 22 member universities with BNED LoudCloud's predictive analytics solution, LoudSight. |
• | BNC operates 769 physical campus bookstores, the majority of which also have school-branded e-commerce sites operated by BNC, and BNC also includes our digital operations. |
• | MBS operates 712 virtual bookstores and is the largest contract operator of virtual bookstores for college and university campuses, and private/parochial K-12 schools. MBS is also one of the largest textbook wholesalers in the country. MBS's wholesale business centrally sources and sells new and used textbooks to more than 3,700 physical college bookstores, including BNC’s 769 campus bookstores. |
13 weeks ended | 52 weeks ended | ||||||||||||||
April 29, 2017 | April 30, 2016 | April 29, 2017 | April 30, 2016 | ||||||||||||
Sales: | |||||||||||||||
Product sales and other | $ | 266,124 | $ | 219,769 | $ | 1,638,934 | $ | 1,579,617 | |||||||
Rental income | 76,706 | 74,990 | 235,428 | 228,412 | |||||||||||
Total sales | 342,830 | 294,759 | 1,874,362 | 1,808,029 | |||||||||||
Cost of sales: | |||||||||||||||
Product and other cost of sales | 181,692 | 151,636 | 1,280,374 | 1,224,955 | |||||||||||
Rental cost of sales | 38,627 | 37,079 | 136,625 | 129,725 | |||||||||||
Total cost of sales | 220,319 | 188,715 | 1,416,999 | 1,354,680 | |||||||||||
Gross profit | 122,511 | 106,044 | 457,363 | 453,349 | |||||||||||
Selling and administrative expenses | 96,924 | 87,264 | 379,095 | 372,821 | |||||||||||
Depreciation and amortization | 14,261 | 13,340 | 53,318 | 52,690 | |||||||||||
Transaction costs | 6,967 | 1,596 | 9,605 | 2,398 | |||||||||||
Restructuring costs (a) | — | 8,056 | 1,790 | 8,830 | |||||||||||
Impairment loss (non-cash) (a) | — | — | — | 11,987 | |||||||||||
Operating income (loss) | 4,359 | (4,212 | ) | 13,555 | 4,623 | ||||||||||
Interest expense, net | 1,489 | 604 | 3,464 | 1,872 | |||||||||||
Income (loss) before income taxes | 2,870 | (4,816 | ) | 10,091 | 2,751 | ||||||||||
Income tax expense (benefit) | 2,643 | (2,020 | ) | 4,730 | 2,667 | ||||||||||
Net income (loss) | $ | 227 | $ | (2,796 | ) | $ | 5,361 | $ | 84 | ||||||
Earnings (Loss) per common share: | |||||||||||||||
Basic | $ | — | $ | (0.06 | ) | $ | 0.12 | $ | — | ||||||
Diluted | $ | — | $ | (0.06 | ) | $ | 0.11 | $ | — | ||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 46,472 | 47,230 | 46,317 | 46,238 | |||||||||||
Diluted | 46,903 | 47,230 | 46,763 | 46,479 | |||||||||||
(a) For additional information, see Note (a) in the Non-GAAP disclosure information of this Press Release. |
13 weeks ended | 52 weeks ended | ||||||||||
April 29, 2017 | April 30, 2016 | April 29, 2017 | April 30, 2016 | ||||||||
Percentage of sales: | |||||||||||
Sales: | |||||||||||
Product sales and other | 77.6 | % | 74.6 | % | 87.4 | % | 87.4 | % | |||
Rental income | 22.4 | % | 25.4 | % | 12.6 | % | 12.6 | % | |||
Total sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||
Cost of sales: | |||||||||||
Product and other cost of sales (a) | 68.3 | % | 69.0 | % | 78.1 | % | 77.5 | % | |||
Rental cost of sales (a) | 50.4 | % | 49.4 | % | 58.0 | % | 56.8 | % | |||
Total cost of sales | 64.3 | % | 64.0 | % | 75.6 | % | 74.9 | % | |||
Gross profit | 35.7 | % | 36.0 | % | 24.4 | % | 25.1 | % | |||
Selling and administrative expenses | 28.3 | % | 29.6 | % | 20.2 | % | 20.6 | % | |||
Depreciation and amortization | 4.2 | % | 4.5 | % | 2.8 | % | 2.9 | % | |||
Transaction costs | 2.0 | % | 0.5 | % | 0.5 | % | 0.1 | % | |||
Restructuring costs | — | % | 2.7 | % | 0.1 | % | 0.5 | % | |||
Impairment loss (non-cash) | — | % | — | % | — | % | 0.7 | % | |||
Operating income (loss) | 1.3 | % | (1.4 | )% | 0.7 | % | 0.2 | % | |||
Interest expense, net | 0.4 | % | 0.2 | % | 0.2 | % | 0.1 | % | |||
Income (loss) before income taxes | 0.8 | % | (1.6 | )% | 0.5 | % | 0.1 | % | |||
Income tax expense (benefit) | 0.8 | % | (0.7 | )% | 0.2 | % | 0.1 | % | |||
Net income (loss) | — | % | (0.9 | )% | 0.3 | % | — | % | |||
(a) Represents the percentage these costs bear to the related sales, instead of total sales. |
April 29, 2017 | April 30, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 19,003 | $ | 28,568 | |||
Receivables, net | 86,040 | 50,924 | |||||
Merchandise inventories, net | 434,064 | 312,747 | |||||
Textbook rental inventories | 52,826 | 47,760 | |||||
Prepaid expenses and other current assets | 10,698 | 6,453 | |||||
Total current assets | 602,631 | 446,452 | |||||
Property and equipment, net | 116,613 | 111,185 | |||||
Goodwill | 329,467 | 280,911 | |||||
Intangible assets, net | 209,885 | 199,663 | |||||
Other noncurrent assets | 41,236 | 33,472 | |||||
Total assets | $ | 1,299,832 | $ | 1,071,683 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 192,742 | $ | 152,175 | |||
Accrued liabilities | 120,478 | 105,877 | |||||
Short-term borrowings | 100,000 | — | |||||
Total current liabilities | 413,220 | 258,052 | |||||
Long-term deferred taxes, net | 16,871 | 29,865 | |||||
Other long-term liabilities | 96,433 | 75,380 | |||||
Long-term borrowings | 59,600 | — | |||||
Total liabilities | 586,124 | 363,297 | |||||
Commitments and contingencies | — | — | |||||
Stockholders' equity: | |||||||
Parent company investment | — | — | |||||
Preferred stock, $0.01 par value; authorized, 5,000 shares; issued and outstanding, none | — | — | |||||
Common stock, $0.01 par value; authorized, 200,000 shares; issued, 49,372 and 48,645 shares, respectively; outstanding, 46,517 and 46,755 shares, respectively | 494 | 486 | |||||
Additional paid-in-capital | 708,871 | 699,513 | |||||
Retained earnings | 32,363 | 27,002 | |||||
Treasury stock, at cost | (28,020 | ) | (18,615 | ) | |||
Total stockholders' equity | 713,708 | 708,386 | |||||
Total liabilities and stockholders' equity | $ | 1,299,832 | $ | 1,071,683 |
13 weeks ended | 52 weeks ended | ||||||||||||||
April 29, 2017 | April 30, 2016 | April 29, 2017 | April 30, 2016 | ||||||||||||
Numerator for basic earnings per share: | |||||||||||||||
Net income (loss) | $ | 227 | $ | (2,796 | ) | $ | 5,361 | $ | 84 | ||||||
Less allocation of earnings to participating securities | — | — | (3 | ) | — | ||||||||||
Net income (loss) available to common shareholders | $ | 227 | $ | (2,796 | ) | $ | 5,358 | $ | 84 | ||||||
Numerator for diluted earnings per share: | |||||||||||||||
Net income (loss) available to common shareholders | $ | 227 | $ | (2,796 | ) | $ | 5,358 | $ | 84 | ||||||
Allocation of earnings to participating securities | — | — | 3 | — | |||||||||||
Less diluted allocation of earnings to participating securities | — | — | (3 | ) | — | ||||||||||
Net income (loss) available to common shareholders | $ | 227 | $ | (2,796 | ) | $ | 5,358 | $ | 84 | ||||||
Denominator for basic earnings (loss) per share: | |||||||||||||||
Basic weighted average common shares (a) | 46,472 | 47,230 | 46,317 | 46,238 | |||||||||||
Denominator for diluted earnings (loss) per share: (a)(b) | |||||||||||||||
Basic weighted average common shares | 46,472 | 47,230 | 46,317 | 46,238 | |||||||||||
Average dilutive restricted stock units | 366 | — | 389 | 227 | |||||||||||
Average dilutive performance shares | 59 | — | 40 | — | |||||||||||
Average dilutive restricted shares | 6 | — | 17 | — | |||||||||||
Average dilutive options | — | — | — | 14 | |||||||||||
Diluted weighted average common shares | 46,903 | 47,230 | 46,763 | 46,479 | |||||||||||
Earnings (loss) per common share: | |||||||||||||||
Basic | $ | — | $ | (0.06 | ) | $ | 0.12 | $ | — | ||||||
Diluted | $ | — | $ | (0.06 | ) | $ | 0.11 | $ | — | ||||||
(a) For periods prior to the Spin-Off from Barnes & Noble on August 2, 2015, Basic earnings per share and weighted-average basic shares outstanding are based on the number of shares of Barnes & Noble common stock outstanding as of the end of the period, adjusted for an assumed distribution ratio of 0.632 shares of our Common Stock for every one share of Barnes & Noble common stock held on the record date for the Spin-Off. | |||||||||||||||
(b) For periods prior to the Spin-Off from Barnes & Noble on August 2, 2015, Diluted earnings per share and weighted-average diluted shares outstanding reflect potential common shares from Barnes & Noble equity plans in which our employees participated based on the distribution ratio. | |||||||||||||||
Segment Information (a) | 13 weeks ended | 52 weeks ended | |||||||||||||
April 29, 2017 | April 30, 2016 | April 29, 2017 | April 30, 2016 | ||||||||||||
Sales | |||||||||||||||
BNC | $ | 314,029 | $ | 294,759 | $ | 1,845,561 | $ | 1,808,029 | |||||||
MBS (a) | 34,091 | — | 34,091 | — | |||||||||||
Elimination | (5,290 | ) | — | (5,290 | ) | — | |||||||||
Total | $ | 342,830 | $ | 294,759 | $ | 1,874,362 | $ | 1,808,029 | |||||||
Gross profit | |||||||||||||||
BNC | $ | 118,400 | $ | 106,044 | $ | 453,252 | $ | 453,349 | |||||||
MBS (a) | 4,748 | — | 4,748 | — | |||||||||||
Elimination | (637 | ) | — | (637 | ) | — | |||||||||
Total | $ | 122,511 | $ | 106,044 | $ | 457,363 | $ | 453,349 | |||||||
Selling and administrative expenses | |||||||||||||||
BNC | $ | 88,607 | $ | 87,264 | $ | 370,778 | $ | 372,821 | |||||||
MBS (a) | 8,317 | — | 8,317 | — | |||||||||||
Total | $ | 96,924 | $ | 87,264 | $ | 379,095 | $ | 372,821 | |||||||
Adjusted EBITDA | |||||||||||||||
BNC | $ | 29,793 | $ | 18,780 | $ | 82,474 | $ | 80,528 | |||||||
MBS (a) | (3,569 | ) | — | (3,569 | ) | — | |||||||||
Elimination | (637 | ) | — | (637 | ) | — | |||||||||
Total | $ | 25,587 | $ | 18,780 | $ | 78,268 | $ | 80,528 | |||||||
(a) On February 27, 2017, we acquired MBS Textbook Exchange, LLC ("MBS"). The consolidated financial statements for the 13 weeks and 52 weeks ended April 29, 2017 include the financial results of MBS from the acquisition date (February 27, 2017) to April 29, 2017. Additionally, effective with the acquisition, we determined that we have two reportable segments: Barnes & Noble College Booksellers, LLC ("BNC") and MBS, whereas BNC was previously our only reportable segment prior the acquisition. For more information, see Explanatory Note. | |||||||||||||||
Percentage of Segment Sales | 13 weeks ended | 52 weeks ended | |||||||||||||
April 29, 2017 | April 30, 2016 | April 29, 2017 | April 30, 2016 | ||||||||||||
Gross margin | |||||||||||||||
BNC | 37.7 | % | 36.0 | % | 24.6 | % | 25.1 | % | |||||||
MBS (a) | 13.9 | % | — | % | 13.9 | % | — | % | |||||||
Elimination | 12.0 | % | — | % | 12.0 | % | — | % | |||||||
Total gross margin | 35.7 | % | 36.0 | % | 24.4 | % | 25.1 | % | |||||||
Selling and administrative expenses | |||||||||||||||
BNC | 28.2 | % | 29.6 | % | 20.1 | % | 20.6 | % | |||||||
MBS (a) | 24.4 | % | — | % | 24.4 | % | — | % | |||||||
Total selling and administrative expenses | 28.3 | % | 29.6 | % | 20.2 | % | 20.6 | % | |||||||
Adjusted Earnings | 13 weeks ended | 52 weeks ended | |||||||||||||
April 29, 2017 | April 30, 2016 | April 29, 2017 | April 30, 2016 | ||||||||||||
Net income (loss) | $ | 227 | $ | (2,796 | ) | $ | 5,361 | $ | 84 | ||||||
Reconciling items, after-tax (below) | 4,272 | 5,818 | 6,986 | 15,378 | |||||||||||
Adjusted Earnings (Non-GAAP) | $ | 4,499 | $ | 3,022 | $ | 12,347 | $ | 15,462 | |||||||
Reconciling items, pre-tax | |||||||||||||||
Transaction costs (a) | $ | 6,967 | $ | 1,596 | $ | 9,605 | $ | 2,398 | |||||||
Restructuring costs (b) | — | 8,056 | 1,790 | 8,830 | |||||||||||
Impairment loss (non-cash) (b) | — | — | — | 11,987 | |||||||||||
Reconciling items, pre-tax | 6,967 | 9,652 | 11,395 | 23,215 | |||||||||||
Less: Pro forma income tax impact (c) | 2,695 | 3,834 | 4,409 | 7,837 | |||||||||||
Reconciling items, after-tax | $ | 4,272 | $ | 5,818 | $ | 6,986 | $ | 15,378 | |||||||
Adjusted EBITDA | 13 weeks ended | 52 weeks ended | |||||||||||||
April 29, 2017 | April 30, 2016 | April 29, 2017 | April 30, 2016 | ||||||||||||
Net income (loss) | $ | 227 | $ | (2,796 | ) | $ | 5,361 | $ | 84 | ||||||
Add: | |||||||||||||||
Depreciation and amortization expense | 14,261 | 13,340 | 53,318 | 52,690 | |||||||||||
Interest expense, net | 1,489 | 604 | 3,464 | 1,872 | |||||||||||
Income tax expense (benefit) | 2,643 | (2,020 | ) | 4,730 | 2,667 | ||||||||||
Transaction costs (a) | 6,967 | 1,596 | 9,605 | 2,398 | |||||||||||
Restructuring costs (b) | — | 8,056 | 1,790 | 8,830 | |||||||||||
Impairment loss (non-cash) (b) | — | — | — | 11,987 | |||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 25,587 | $ | 18,780 | $ | 78,268 | $ | 80,528 | |||||||
(a) Transaction costs are costs incurred for business development and acquisitions. | |||||||||||||||
(b) In fiscal 2016, we implemented a plan to restructure our digital operations. As a result of this restructuring, we recorded a non-cash impairment loss of $12 million related to all of the capitalized content costs for the Yuzu® eTextbook platform ($9 million), and recorded a non-recurring other than temporary loss related to an investment held at cost ($3 million). | |||||||||||||||
Additionally, we announced a reduction in staff and closure of the facilities in Mountain View, California, and Redmond, Washington that support the Yuzu® eTextbook platform. The cost of severance, retention, and other restructuring costs (i.e. subleasing facilities) of $8.8 million and $1.8 million in fiscal 2016 and fiscal 2017, respectively. The restructuring was completed in fiscal 2017. | |||||||||||||||
(c) Represents the income tax effects of the non-GAAP items. | |||||||||||||||
Use of Non-GAAP Financial Information - Adjusted Earnings and Adjusted EBITDA | |||||||
To supplement the Company’s condensed consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), in the Press Release attached hereto as Exhibit 99.1, the Company uses the non-GAAP financial measures of Adjusted Earnings (defined as Net Income adjusted for certain reconciling items) and Adjusted EBITDA (defined by the Company as earnings before interest, taxes, depreciation and amortization, as adjusted for additional items subtracted from or added to net income). | |||||||
These non-GAAP financial measures are not intended as substitutes for and should not be considered superior to measures of financial performance prepared in accordance with GAAP. In addition, the Company's use of these non-GAAP financial measures may be different from similarly named measures used by other companies, limiting their usefulness for comparison purposes. These non-GAAP financial measures should not be considered as alternatives to net income as an indicator of the Company's performance or any other measures of performance derived in accordance with GAAP. | |||||||
The Company's management reviews these Non-GAAP financial measures as internal measures to evaluate the Company's performance and manage the Company's operations. The Company's management believes that these measures are useful performance measures which are used by the Company to facilitate a comparison of on-going operating performance on a consistent basis from period-to-period. The Company's management believes that these Non-GAAP financial measures provide for a more complete understanding of factors and trends affecting the Company's business than measures under GAAP can provide alone, as it excludes certain items that do not reflect the ordinary earnings of its operations. The Company's Board of Directors and management also use Adjusted EBITDA as one of the primary methods for planning and forecasting overall expected performance, for evaluating on a quarterly and annual basis actual results against such expectations, and as a measure for performance incentive plans. The Company's management believes that the inclusion of Adjusted EBITDA and Adjusted Earnings results provides investors useful and important information regarding the Company's operating results. | |||||||
The non-GAAP measures included in the Press Release attached hereto as Exhibit 99.1 has been reconciled to the comparable GAAP measures as required under Securities and Exchange Commission (the “SEC”) rules regarding the use of non-GAAP financial measures. All of the items included in the reconciliations below are either (i) non-cash items or (ii) items that management does not consider in assessing the Company's on-going operating performance. The Company urges investors to carefully review the GAAP financial information included as part of the Company’s Form 10-K dated April 29, 2017 and expected to be filed with the SEC on July 12, 2017, which includes consolidated financial statements for each of the three years for the period ended April 29, 2017 (fiscal 2017, fiscal 2016, and fiscal 2015), the Company's Quarterly Report on Form 10-Q for the period ended July 30, 2016 filed with the SEC on September 8, 2016, the Company's Quarterly Report on Form 10-Q for the period ended October 29, 2016 filed with the SEC on December 6, 2016, and the Company's Quarterly Report on Form 10-Q for the period ended January 28, 2017 filed with the SEC on February 28, 2017. |
13 weeks ended | 52 weeks ended | |||||||
MBS Sales (a) | ||||||||
Wholesale | $ | 14.1 | $ | 14.1 | ||||
Direct | 20.0 | 20.0 | ||||||
MBS total sales subtotal: | $ | 34.1 | $ | 34.1 | ||||
BNC Sales | ||||||||
New stores (b) | $ | 16.8 | $ | 109.5 | ||||
Closed stores (b) | (3.2 | ) | (23.8 | ) | ||||
Comparable stores (c) | 2.9 | (50.6 | ) | |||||
Textbook rental deferral | 0.5 | 0.6 | ||||||
Service revenue (d) | 2.5 | 5.8 | ||||||
Other (e) | (0.2 | ) | (4.0 | ) | ||||
BNC total sales subtotal: | $ | 19.3 | $ | 37.5 | ||||
Eliminations (f) | $ | (5.3 | ) | $ | (5.3 | ) | ||
Total sales variance | $ | 48.1 | $ | 66.3 |
(a) | Represents sales for MBS from the acquisition date, February 27, 2017, to April 29, 2017. Our retail business (BNC and MBS Direct) is highly seasonal, with sales generally highest in the second and third fiscal quarters, when college students generally purchase textbooks for the upcoming semesters, and lowest in the first and fourth fiscal quarters. Sales attributable to our MBS wholesale business are generally highest in our first, second and third quarter, as it sells textbooks for retail distribution, which somewhat offsets the decreased first quarter sales attributable to our retail business. |
(b) | We added 38 new stores and closed 20 stores during the 52 weeks ended April 29, 2017, ending the period with a total of 769 stores. |
(c) | See below. |
(d) | Service revenue includes Promoversity, LoudCloud, brand partnerships, shipping and handling and revenue from other programs. |
(e) | Other includes certain adjusting items related to return reserves and other deferred items. |
(f) | Eliminate MBS sales to BNED and BNED commissions earned from MBS. |
13 weeks ended | 52 weeks ended | |||||||||||||||||||||||||||
April 29, 2017 | April 30, 2016 | April 29, 2017 | April 30, 2016 | |||||||||||||||||||||||||
Textbooks | $ | 2.9 | 3.6 | % | $ | 5.4 | 7.4 | % | $ | (46.1 | ) | (4.0 | )% | $ | (43.9 | ) | (3.8 | )% | ||||||||||
General Merchandise | 0.6 | 0.5 | % | 3.5 | 2.9 | % | (0.7 | ) | (0.1 | )% | 13.3 | 2.6 | % | |||||||||||||||
Trade Books | (0.5 | ) | (4.1 | )% | 0.5 | 4.6 | % | (3.2 | ) | (5.8 | )% | 1.0 | 1.8 | % | ||||||||||||||
Other | (0.1 | ) | (94.4 | )% | (0.2 | ) | (72.5 | )% | (0.6 | ) | (88.9 | )% | (2.1 | ) | (73.2 | )% | ||||||||||||
Total Comparable Store Sales | $ | 2.9 | 1.4 | % | $ | 9.2 | 4.5 | % | $ | (50.6 | ) | (3.0 | )% | $ | (31.7 | ) | (1.9 | )% |
Q1 | Q2 | Q3 | Q4 | Total | |||||||||||
MBS Sales | |||||||||||||||
Wholesale | 43 | % | 16 | % | 32 | % | 9 | % | 100 | % | |||||
Direct | 25 | % | 39 | % | 21 | % | 15 | % | 100 | % | |||||
Total | 35 | % | 26 | % | 28 | % | 11 | % | 100 | % |