Barnes & Noble Education reports Q3 (Jan) results, beats on revs; reaffirms FY18 revs guidance, raises Adj-EBITDA guidance, lowers BNC comps outlook
- Reports Q3 (Jan) loss of $6.04 per share, not comparable to the two analyst estimate of $0.07; revenues rose 15.7% year/year to $603.39 mln vs the $595.83 mln two analyst estimate.
- Comparable store sales at BNC decreased 6.2% for the quarter representing approximately $31.3 million in revenue. Consistent with prior years, the Spring Rush period extended beyond the quarter due to later school openings and the continued pattern of students buying course materials later in the semester. Factoring in the month of February, comparable store sales at BNC decreased 4.2% on a year to date basis.
- In the third quarter, the Company completed its annual goodwill impairment test required by GAAP, and determined that the carrying amount of goodwill at BNC exceeded its estimated fair value, due to the reduction in BNED's market capitalization. As a result, the Company recorded a pre-tax goodwill non-cash impairment charge of $313.1 million at BNC or $302.9 million on a net tax basis.
- Co reaffirms guidance for FY18, sees FY18 revs of $2.25-2.35 bln vs. $2.18 bln two analyst estimate.
- For fiscal year 2018, the Company continues to expect sales at BNC to be relatively flat, while BNC comparable store sales are now projected to decline in the mid-single digit percentage point range year over year (Previously guided for decline in the low-to mid-single digit percentage point range).
- The Company is raising its consolidated Adjusted EBITDA guidance, and now expects to achieve consolidated Adjusted EBITDA of $115 million to $125 million for fiscal year 2018, up from the previous range of $105 million to $120 million. Capital expenditures are now expected to be approximately $45 million (down from prior guidance of $50 million), which represents an increase from fiscal 2017 due to new store growth at BNC