Barnes
& Noble Education, Inc. (NYSE: BNED), a leading provider of
educational products and services solutions for higher education and
K-12 institutions, today reported sales and earnings for the second
quarter for fiscal year 2018. The Company has two reportable segments:
Barnes & Noble College Booksellers, LLC ("BNC") and MBS Textbook
Exchange, LLC ("MBS").
Financial highlights for the second quarter 2018 and fiscal year to
date 2018:
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Consolidated sales of $886.9 million increased 15.1%, as compared to
the prior year period; year to date consolidated sales of $1,242.6
million increased 23.0% as compared to the prior year period.
-
Consolidated second quarter GAAP net income of $48.4 million, as
compared to $29.3 million in the prior year period; year to date GAAP
net income of $13.6 million, as compared to $1.4 million in the prior
year period.
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Consolidated second quarter non-GAAP Adjusted EBITDA of $102.4
million, an increase of $32.0 million, as compared to the prior year
period; year to date non-GAAP Adjusted EBITDA of $70.0 million, an
increase of $36.1 million, as compared to the prior year period.
-
Consolidated second quarter non-GAAP Adjusted Earnings of $49.9
million, as compared to $29.7 million in the prior year period; year
to date non-GAAP Adjusted Earnings of $20.1 million, as compared to
$3.8 million in the prior year period.
Operational highlights for the second quarter 2018:
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Expanded reach of BNED Courseware, offering Open Educational Resources
("OER") content to approximately 13,000 students at community
colleges, four-year public universities and four-year private
universities.
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Continued to recognize benefits from the MBS integration, as MBS
contributed $134.9 million in sales and $19.2 million of Adjusted
EBITDA in the second quarter of fiscal year 2018.
-
Completed the acquisition of Student Brands, LLC, a leading
direct-to-student subscription-based writing services business, on
August 3, 2017 for $57.4 million. Student Brands contributed $4.5
million in sales and $2.4 million of Adjusted EBITDA to BNC's results
in the second quarter of fiscal year 2018.
-
Renewed partnership with Target Corporation to promote its brand and
college essentials to BNED customer base for the Fall of 2018.
"Our substantially increased financial results in the second quarter
reflect the contributions of our recent acquisitions of MBS and Student
Brands. While both of these teams continue to perform financially, we
are even more encouraged by their respective potential contributions to
BNED's longer term competitive position," said Michael P. Huseby,
Chairman and Chief Executive Officer, Barnes & Noble Education. "Given
our evolving industry, we remain focused on transforming our business to
become a leading aggregator and distributor of both physical and digital
educational content, and on developing expanded direct-to-student
digital services that we can offer both in and outside of our managed
stores footprint. With the addition of Student Brands and our recently
announced partnership with The Princeton Review, we are building what we
plan to offer as a full suite of such services."
Second Quarter 2018 and Year to Date Results
Results for the 13 and 26 weeks of fiscal 2018 and fiscal 2017 are
as follows:
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$ in millions
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13 and 26 Weeks Selected Data (unaudited)
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13 Weeks
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13 Weeks
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26 Weeks
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26 Weeks
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Q2 2018
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Q2 2017
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2018
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2017
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Total Sales
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$886.9
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$770.7
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$1,242.6
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$1,009.9
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Net Income
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$48.4
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$29.3
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$13.6
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$1.4
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Non-GAAP(1)
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Adjusted EBITDA
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$102.4
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$70.4
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$70.0
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$33.9
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Adjusted Earnings
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$49.9
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$29.7
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$20.1
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$3.8
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SOURCE: BUSINESS WIRE. ©2017 Business Wire
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