LONDON, UK / ACCESSWIRE / July 17, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Barnes & Noble Education, Inc. (NYSE: BNED) ("BNED"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=BNED, following the Company's announcement of its fourth quarter and fiscal 2017 earnings results on July 12, 2017. The Company's reported quarter results include 9 weeks of operations from MBS Textbook Exchange, LLC (MBS), which BNED acquired on February 27, 2017. As a result of this, the Company has reported financial information for two reportable segments, Barnes & Noble College Booksellers, LLC (BNC) and MBS. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
For the fourth quarter, BNED's consolidated sales jumped 16.3% to $342.8 million compared to $294.76 million in Q4 FY16. The Company's revenue numbers came in below analysts' consensus of $360.1 million. For FY17, BNED's sales of $1.87 billion grew 3.7%, on a y-o-y basis.
During Q4 FY17, BNC's comparable store sales increased 1.4%. As disclosed by the Company in its Q3 FY17 earnings release, the Spring Rush period extended into Q4 FY17 due to later school openings and a continued pattern of students buying course materials later in the semester. For FY17, BNE's comparable store sales decreased 3.0%, driven by the enrollment declines at community colleges, increased consumer purchases directly with publishers and other online providers, and overall unfavorable retail trends.
BNED's consolidated non-GAAP adjusted EBITDA totaled $25.6 million for Q4 FY17, reflecting an increase of $6.8 million, versus the prior year's comparable period. BNC's reported quarter non-GAAP adjusted EBITDA was $29.8 million, an increase of $11.0 million, compared with the prior year's corresponding period, while MBS' Q4 FY17 non-GAAP adjusted EBITDA was negative $3.6 million. BNED's FY17, non-GAAP adjusted EBITDA was $82.5 million, representing an increase of $2.0 million, excluding MBS and intercompany eliminations.
For Q4 FY17, BNED reported net income of $0.2 million, or $0.0 per diluted share, compared to net loss of $(2.8) million, or $(0.06) per diluted share, in Q4 FY16. The results came in below Wall Street's expectation for earnings of $0.02 per share. The Company reported non-GAAP adjusted earnings of $4.5 million during the reported quarter, compared with non-GAAP adjusted earnings of $3.0 million in the prior year's same period. For FY17, the Company reported consolidated net income of $5.4 million, which includes transaction costs of $9.6 million and restructuring costs of $1.8 million. The Company's non-GAAP adjusted earnings totaled $12.3 million for the reported period compared to $15.5 million for the prior year's same period.
Operational Highlights
During FY17, 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.
BNED 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. 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 FY17 and has contracts to open 46 virtual stores with estimated annual sales of $8 million in fiscal 2018.
Outlook
For the fiscal year 2018, the Company expects sales at BNC to be relatively flat, while BNC comparable store sales are projected to decline in the low- to mid-single digit percentage point range on a y-o-y basis. Furthermore, BNED expects consolidated sales to be in the range of $2.25 billion to $2.35 billion before intercompany eliminations. Capital expenditures are expected to be approximately $50 million, an increase from FY17 due to new store growth at BNC.
Stock Performance
On Friday, July 14, 2017, Barnes & Noble Education's stock closed the trading session at $7.76, falling 2.63% from its previous closing price of $7.97. A total volume of 1.08 million shares were exchanged during the session, which was above the 3-month average volume of 237.45 thousand shares. Shares of the Company have a PE ratio of 70.55 and currently have a market cap of $370.70 million.
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SOURCE: Pro-Trader Daily