Barnes & Noble Education underperformed again, with second quarter sales falling 8.1 percent to $815 million, and investors headed straight for the door. Ninety minutes after the market opening, shares were down approximately 28 percent, to about $4.60 a share, which would be a new all-time low for the stock if it holds. (At that price, the market cap is around $209 million.) Sales at the College stores declined $54.4 million, with comparable store sales down 5.6 percent, “primarily due to lower textbook sales.” Sales from net new stores (new stores less closed stores) declined by $15.2 million, compared to an increase […]
Education
Wiley Buys Learning House for $200 Million
Wiley announced Tuesday it has signed a definitive agreement to acquire education services provider Learning House from Weld North Holdings for $200 million in cash. The transaction is expected to close on or around November 1. The Louisville, KY-based Learning House provides online program management (OPM) services for colleges and universities, along with professional development services for teachers; and learning solutions for corporate clients. 2018 sales for the unit are expected to be roughly $70 million, up 17 percent from last year. Wiley ceo Brian Napack says in the announcement, “Learning House is a dynamic growth company and we are thrilled […]
Kaplan to Swallow Barron’s Test Books
Kaplan Test Prep has acquired key assets of longtime rival Barron’s Educational Series, including the test prep, study aid, and foreign language assets, as well as the Barron’s brand name. The acquisition comprises about 650 of Barron’s more than 2,000 titles, also including their reference, business, and law titles. As Newsday notes, “The purchase combines two of the oldest and best-known brands in educational services and test-prep books in a market that is becoming increasingly competitive.” Terms of the transaction were not disclosed. Following the merger, Kaplan’s new assets will still carry the Barron name, operating as a distinct brand. […]
Quarto Has Better Sales, Still with Big Loss; Bertelsmann to Buy OnCourse Learning
Quarto reported half-year results, with sales showing some improvement, as revenues rose $6 million to $56.2 million. Some of that gain reflects a shift in the “seasonal split of co-edition revenues, with a higher percentage than normal of expected full-year revenues achieved in the first half.” Their operating loss of ($7 million) was slightly improved from last year’s ($7.6 million), though the after tax loss of ($6.7 million) was higher than last year’s ($5.2 million), and is a poor result by any objective measure. The company’s lightly-traded stock is headed towards a new all-time low following the news. Though not […]
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 […]
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. […]