Barnes & Noble announced after the close of the market that they completed their acquisition of privately-held Barnes & Noble College Booksellers from Len Riggio. The purchase price was reduced from $596 million to $514 million, “reflect $82 million in cash bonuses paid by College to 192 members of its management team and employees” (not including Riggio.) The original purchase price acknowledged that BN College had about $136 million in cash on hand, making the effective price $460 million, which presumably has not changed materially. The company did say that the refinancing of their lightly-used $1 billion revolving credit facility […]
Earnings Reports
Trade and Education Sales Have Big Gains for Scholastic
Scholastic reported a 14 percent increase in sales from continuing operations for their fiscal first quarter, at $315.6 million, with an improved net loss of $23 million (compared to a loss of $49.1 million a year ago.) The company says revenues were boosted by “higher sales of educational technology to schools and of children’s books in retail channels during the quarter.” CEO Dick Robinson cites “the arrival of Federal stimulus funds in local districts” as one factor in boosting education sales. In their children’s book publishing and distribution division, sales rose almost $15 million, to $76.2 million, though they had […]
Trade Falls Further at Wiley, As "Stabilizing" Is Seen
Sales fell 10 percent in Wiley’s professional/trade segment in their fiscal first quarter, at $90 million (with a third of that decline due to currency exchange). But the company says “retail market conditions appear to be stabilizing, and major accounts are replenishing inventory. The second quarter began positively, as reflected in strong August sales.” Contribution to profit also declined 10 percent, at $16 million. Companywide, sales of $388 million were down three percent, while income before taxes of $37.1 million was up three percent. Higher education was the only segment with sales growth in the period, rising 12 percent to […]
Sales Down 4 Percent at Random As Profits Are Hit Harder
Sales fell in the first six months of the fiscal year at Random House by 4 percent, declining 32 million euros to 734 million euros, as operating EBIT dropped even more at just 20 million euros for the period (down from 31 million euros a year ago.) The company blamed the decline on “the continued distressed economic environment and the reduction in inventory levels by major bookstores in the US.” And they say that “an extensive, international cost-saving initiative and the restructuring of the US publishing groups put in place last year partially offset this development.” In a letter to […]
Earnings Soar at Hachette in First Half of 2009
Lagardere reported complete results for the first six months of their fiscal year today (having already reported preliminary sales in July). The publishing division’s EBIT was 112 million euros, up by 61% from last year, on sales of 1.009 billion euros. The company congratulates itself on their “excellent performance” and exudes that it was “all the more remarkable given that the publishing sector is actually contracting slightly in all the markets where we operate.” (Indeed the parent company took a total of 332 million euros in impairment, amortization and restructuring charges during the period.) In the first quarter, out of […]
Bloomsbury Stays Confident Despite "Difficult" First Half
Blaming “difficult markets” – not to mention the absence of any Harry Potter title – Bloomsbury’s sales and profits declined considerably in the first half of 2009. Sales dropped 25% in the UK to £22.2m, and profit fell almost 50% to £1.7m, though Bloomsbury’s specialist publishing business saw sales growth of 34%, overtaking its children’s business in size for the first time. Revenue for the first six months was £35.3m compared to £42.1m in 2008. Profit before investment income and amortisation of intangible assets was £1.2m, compared with £3.5m a year earlier. Bloomsbury’s adult trade business saw sales fall 20% […]