“Even when an organization is working with a sense of urgency…turnarounds take time,” Barnes & Noble ceo Demos Parneros told investors on this morning’s third quarter conference call, after reporting a poor holiday quarter (in line with their previous warning), layoffs, and a big non-cash charge. His job on the call was to assure investors that management has a clear plan for long-term improvement: “We expect our plan to provide steady and consistent improvement beginning in fiscal 2019 and beyond.” Parneros revealed that BN “will open five new prototype stores” in the coming year in a smaller “right-size format,” with […]
Earnings Reports
Barnes Education Sees Sales Gains, Takes Huge Writedown
Barnes & Noble Education reported its third quarter results for the 13-week period ending January 27. While sales of $603 million increased $82 million, or 15.7%, as compared to a year ago, BNED incurred a net loss of $283 million, compared to net income of $3.8 million the prior year. The recent acquisitions of MBS and Student Brands once again accounted for the sales gains, as they did in the company’s second quarter. After conducting its annual goodwill impairment test, the company was forced to admit that goodwill vastly exceeded their estimated fair value, due to the reduction in BNED’s […]
Pearson to Sell Weak US K-12 Courseware, PRH Up “Slightly”
Pearson reported full-year results for 2017 on Friday morning. The most significant news was official confirmation that, as the company suggested last May, they will indeed sell off their US K-12 courseware publishing business. They are “in discussions with potential buyers regarding a disposal of the business.” That will be the last big step in the company’s strategy that if they sell enough of their disparate parts, what’s left behind will finally, a few years down the road, perform well. The new euphemism for this is “simplification,” which they say will make them a “leaner and more agile business.” At Penguin […]
Houghton Mifflin Harcourt Finishes with Some Improvement, As Trade Remains Strong
Houghton Mifflin Harcourt ended a rough year with signs of improvement, as fourth quarter sales of $261 million were up $19 million from a year ago, with positive EBITDA of $5 million, compared to $(19) million a year ago. As was the case all year, the small trade division was the big bright spot for the company: Fourth quarter trade sales of $55 million were up $5 million. For the full year, trade sales of $184.5 million were up $19 million from a year ago, and adjusted EBITDA of $16 million was up considerably compared to $9.8 million a year […]
Simon & Schuster Finishes with Strong Fourth Quarter, Record Full Year Profits
CBS reported fourth quarter and full-year earnings on Thursday afternoon, with Simon & Schuster registering strong sales of $235 million in the final quarter, up $26 million from a year ago (helped in part by the addition of Adams Media, acquired in November 2016). Operating income was $44 million, up from $36 million at the end of 2016. For the full year, sales of $830 million were $63 million higher than a year ago, and operating income hit a new record of $132 million, up $13 million from a year ago. S&S had paid approximately $42 million to purchase Adams Media, […]
Harper Is Steady In Holiday Quarter, Boosted By Foreign Exchange
News Corp. reported fiscal second quarter results through December 31, with revenues at HarperCollins nudging up by $3 million to 469 million — with all of the gain and then some coming from foreign exchange, which added $8 million in the quarter. EBITDA of $80 million was up $5 million from a year ago, with foreign exchange adding $1 million. Along with the currency boost, the company cited “higher backlist sales at the children’s books” as a contributing factor, calling out Ree Drummond’s The Pioneer Woman Cooks and David Walliams’ Bad Dad as their top frontlist titles. The performance is […]