Barnes & Noble Education reported earnings for the third fiscal quarter ended January 30, with sales of $412 million, compared to $503 million last year, a decline of 19 percent. While sales were better than analysts’ expectations, earnings were worse, with net loss of $(48) million, down from $(2) million last year. The loss included pre-tax impairment of $27.6 million, “on certain store-level long-lived assets in the retail segment.” Retail sales decreased by $70.3 million in the quarter, or 15.4 percent. Comparable store sales were down 20 percent overall, with the biggest decline in trade books, down 61 percent. Textbook […]
Education
Pearson Sales and Profit Down in 2020 as Management Predicts a Return to Growth
Following on their January trading update, Pearson announced full earnings for 2020. Sales were £3.4 billion, a decrease of £472 million, or 10 percent, as reported in January. Of the decline, £55m was due to scope changes, and £31 million from negative currency impact. Operating profit was £411 million, up from £275 million, but for 2020 the adjusted numbers are more revealing, since the statutory numbers reflect the £531 million gain from selling the company’s final 25 percent stake in Penguin Random House, which generated a pre-tax profit of £180 million. The year also saw lower restructuring costs, as the […]
Wiley’s Sales Near Flat, Earnings Down in Q3
Wiley reported third quarter sales for the period ended January 31 of $483 million, up from $467 million, or 3 percent on the topline. But that includes $7.6 million in favorable foreign exchange and added sales from the big Hindawi acquisition. Net income for the quarter was $22.2 million, down from $35 million, while adjusted EBITDA was $104 million, up from $96 million. They took $20.7 million in restructuring expenses, mostly related to a previously announced reduction in their real estate footprint. The most positive sign in the report is that Wiley raised its full-year outlook, now anticipating higher earnings […]
McGraw Hill Announces Plan to Refinance Its Substantial Debt
McGraw Hill has announced it had entered into a transaction support agreement that would extend its debt maturity through late 2024. Its revolving credit facility would also be extended, to November 2023. “The Transaction will address upcoming maturities and reduce First Lien leverage without materially increasing total leverage or cash interest expense,” according to a company report. The refinancing plan still requires additional approvals from first lien term loan holders. The company’s annual report, released in June, noted “substantial indebtedness” as a risk factor, “restrict[ing] our ability to react to changes in the economy or our industry and expos[ing] us […]
People, Etc.
Kelsey Nolan has joined Ze Books and Unnamed Press as a publicity and marketing manager. She previously worked at the Los Angeles Times as the events programming manager. Cindy Kim has been promoted to associate editor for Little Simon. Andree Abecassis, 81, died November 4 at home in Berkeley, CA, following a brief struggle with cancer. For many years she worked at Ann Elmo Agency, founded by two of her aunts, and recently she had started working with Heyday Books. Best of 2020 The New York Public Library released their Best Books package, which includes top 10s for adults, poetry, […]
News Corp CEO Says PRH Would Face Antitrust Fight Over Simon & Schuster
News Corp. ceo Robert Thomson said in answer to a question at the company’s annual meeting he has no doubt that Penguin Random House would face major regulatory issues in the US if they were to prevail in the bidding to acquire Simon & Schuster. “It will clearly be a serious antitrust issue if Bertelsmann acquires Simon & Schuster,” Thomson said. “However cute and clever the structure, if Bertelsmann is a beneficiary, it will be a book behemoth. And this will certainly be a profound antitrust issue for the entire book industry and no doubt for authors around the world.” […]