Borders management provided a few additional details on their status in a conference call with investors this morning following yesterday’s refinancing and fourth quarter results. But more formal details about their performance and the details of their new debt agreements will come later today when they file their 8-K with the SEC. CFO Mark Bierly said there should be “not that many” Borders superstores likely to close in the coming year. “We do have some stores that will come up for renewal” and the company “will continue to have active dialogue” with landlords over those locations. He admitted that “overall […]
Finance
Borders Finishes With A More Profitable Quarter, Even As Sales Fall Over 13%
With new financing in place, Borders also reported fourth quarter and full-year earnings. The company made $59.9 million (91 cents a share) from continuing operations in the final quarter, much improved from $28.9 million (48 cents a share) a year ago, though adjusted EBITDA fell from $132.6 million to $91.3 million. Their debt net of cash at the end of the quarter was $245 million, a $37.6 million reduction from a year ago. Comp-store sales were about as horrible as their holiday report indicated, down 14 percent in the Borders superstores, also declining 14.4 percent for the full year. Fourth […]
Borders Lives: Gets $90 Million Term Loan and Extends Smaller $700 Million Credit Facility Into 2014
Borders announced after the close of the market that they have secured a $90 million term loan credit facility from Banc of America Securities as “sole arranger”, most of which matures in March 2014. The company “expects” that lenders will “include an affiliate of Stone Tower Capital, funds managed by Tennenbaum Capital Partners, and Gordon Brothers Merchant Partners.” More importantly, they have extended an “amended and restated” revolving line of credit until March 2014, at a reduced level of $700 million. The existing line of credit would have expired in July 2011.Company release
Results Drop at Bloomsbury, As US Unit Grows
With no Harry Potter paperback, full-year sales at Bloomsbury fell 12.7 million pounds at 87 million pounds for the year, as adjusted pre-tax profit dropped 35 percent to 7.71 million pounds. The company finished the year with total cash of 35 million pounds. The company says that profits were “ahead of consensus market forecasts achieved under difficult trading conditions.” US sales rose 1.46 million pounds to 18.78 million, with profit of 450,000 pounds before central cost recharges, but sales fell at Berlin Verlag, down over 2 million pounds at 9.55 million, which had its first operating loss since 2004. Their […]
First Borders
Call it Psychic April Fool’s week: this is one of those weeks when the two major stories are clear from the beginning, but either narrative is subject to plenty of surprises. First up is Borders, which faces an April 1 deadline on their $42.5 million loan from major shareholder Pershing Square. The company would normally report fourth quarter and full-year earnings on or about that same day, but has yet to announce a release date. Presumably results–and the accompanying SEC filing–won’t be announced until the company can speak authoritatively to its forward plans. While most accounts are focused on the […]
Both BN CEO Lynch and Retail CEO Klipper Get Same Compensation Package: 900K Base Salary, 500K Shares
Two filings with the SEC offer a look both at what CEO William Lynch will earn as Barnes & Noble’s new CEO and how Mitchell Klipper’s promotion gives him a much greater role in the company. Lynch’s three-year-deal with B&N will bring in an annual base pay of $900,000 (with eligibility for bonuses with a target of “not less than” 150% of base pay.) Lynch will also receive 500,000 shares of B&N stock and have options to buy another 500,000 shares. Klipper, however, will get virtually the same compensation package, underscoring that B&N views his new position as CEO of […]