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 […]
Education
Barnes Education Grows Profits On Still-Weak Sales
Barnes & Noble Education has performed so poorly that an uptick in profits for their fiscal second quarter — even as college bookstore and textbook sales comps fell — has lifted the stock. With net income for the back-to-school quarter of $48.4 million, compared to $29.3 million, the stock rose almost 25 percent in early trading on Tuesday. Even with that, shares are still down by about a third for the year, and after spending $58.5 million for Student Brands and $174 million for MBS Textbook Exchange during the year, the improved market cap is still only about $365 million. […]
People, Etc.
Ryan Doherty will be join Celadon Books, Macmillan’s new trade book division, as executive editor starting September 12. He has been vice president of literary development at Sony Pictures Entertainment (after a number of years as an editor at Ballantine). Celadon Books co-publishers Jamie Raab and Deb Futter say: “Ryan’s ability to identify high quality works of fiction and nonfiction that have strong commercial potential and his deep knowledge of the overall literary market are perfectly aligned with the mission of Celadon Books.” At William Morrow, Shelby Meizlik has been promoted to the new role of vp, special events and creative strategies; Kelly […]
Barnes & Noble Education Buys Online Writing Business for $58.5 Million
Barnes & Noble Education acquired Student Brands on Friday for $58.5 million in cash. Student Brands is a subscription-based writing skills services business, with properties in the US, Brazil, France and Mexico. BNED has been trying to buy its way to growth, so far without convincing investors. Earlier this year they paid the Riggios $174 million to buy MBS Textbook Exchange (and in 2016, their more modest acquisitions included LoudCloud, for $17.9 million, and Promoversity). Despite this year’s over $230 million in acquisitions, the company has a market cap of less than $340 million. Release In other acquisitions, Netflix made […]
Briefs: eBook Retailer Suit Rejected Again; Macmillan Learning Offers New Rental Options
Defunct ebook retailers BooksOnBoard and Diesel Books lost again in court, as the Second Circuit Court of Appeals affirmed a lower court ruling dismissing their lawsuit alleging that publishers’ introduction of the agency model for ebook pricing put them out of business. The Appeals Court wrote: “Based on the undisputed facts in the record, the district court determined that BooksOnBoard faced strong competition from large retailers, that it contemporaneously viewed the adoption of agency pricing as a boon, and that its subsequent demise was not attributable to the unlawful conspiracy. We have carefully reviewed the summary judgment record, and we […]
Textbook Author Sues Pearson
Last week professor of engineering at the University of Louisiana – Lafayette and author of multiple engineering textbooks Russell Hibbeler filed suit in a Tennessee Federal Court against Pearson, alleging significant underpaid and/or unpaid royalties and charging the publisher with creating derivative works with permission and payment. (Hibbeler lives in Nashville.) The suit is of potentially broad interest given the extent but also the nature of Professor Hibbeler’s claims. In a 2015 audit from the Royalty Compliance Organization, Hibbeler says they discovered “significant underpayments and non- payments of royalties and other compensation due.” As part of the audit, “Pearson discovered […]