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Barnes & Noble Education Reports Second Quarter Preliminary Fiscal Year 2025 Unaudited Financial Results

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Barnes & Noble Education (NYSE: BNED) reported preliminary Q2 FY2025 results showing significant improvements. The company's First Day® Program revenues increased 18% YOY to $235 million. Despite operating 109 fewer stores, overall revenue remained flat year-over-year. Net Income is expected to reach mid to high $40 million, representing a mid-70% to mid-90% increase YOY, driven by comparable store growth and improved cost management. Adjusted EBITDA is projected to reach mid to high $60 million range. Final unaudited Q2 results will be released in early December 2024.

Barnes & Noble Education (NYSE: BNED) ha riportato risultati preliminari per il secondo trimestre dell'anno fiscale 2025, mostrando miglioramenti significativi. I ricavi del Programma First Day® sono aumentati del 18% rispetto allo scorso anno, raggiungendo i 235 milioni di dollari. Nonostante la gestione di 109 negozi in meno, il fatturato totale è rimasto stabile rispetto all'anno scorso. Si prevede che il reddito netto raggiunga una fascia compresa tra i 40 e i 50 milioni di dollari, rappresentando un aumento del 70% al 90% anno su anno, guidato dalla crescita delle vendite nei negozi comparabili e da una gestione dei costi migliorata. L'Adjusted EBITDA è previsto raggiungere una fascia compresa tra i 60 e i 70 milioni di dollari. I risultati finali non auditati del secondo trimestre saranno pubblicati all'inizio di dicembre 2024.

Barnes & Noble Education (NYSE: BNED) informó sobre resultados preliminares del segundo trimestre del año fiscal 2025, mostrando mejoras significativas. Los ingresos del Programa First Day® aumentaron un 18% interanual, alcanzando los 235 millones de dólares. A pesar de operar 109 tiendas menos, los ingresos totales se mantuvieron estables en comparación con el año anterior. Se espera que el ingreso neto alcance una cifra entre 40 y 50 millones de dólares, lo que representa un aumento del 70% al 90% interanual, impulsado por el crecimiento de tiendas comparables y una mejor gestión de costos. Se proyecta que el EBITDA ajustado alcance un rango entre 60 y 70 millones de dólares. Los resultados finales no auditados del segundo trimestre se publicarán a principios de diciembre de 2024.

바니즈 & 노블 교육(Barnes & Noble Education, NYSE: BNED)은 2025 회계연도 2분기 예비 결과를 발표하며 상당한 개선을 보였습니다. First Day® 프로그램 수익이 전년 대비 18% 증가하여 2억 3천5백만 달러에 이르렀습니다. 109개의 매장이 줄어들었음에도 불구하고 전체 수익은 전년 대비 동일하게 유지되었습니다. 순이익은 4천만 달러 중반에서 5천만 달러 초반으로 예상됩니다, 이는 전년 대비 70%에서 90%의 증가를 나타내며, 비교 가능한 매장 성장과 비용 관리 개선에 의해 주도됩니다. 조정된 EBITDA는 6천만 달러 중반에서 7천만 달러 초반에 이를 것으로 보입니다. 2024년 12월 초에 최종 감사되지 않은 2분기 결과가 발표될 예정입니다.

Barnes & Noble Education (NYSE: BNED) a annoncé des résultats préliminaires pour le deuxième trimestre de l'exercice 2025, montrant des améliorations significatives. Les revenus du programme First Day® ont augmenté de 18 % par rapport à l'année précédente, atteignant 235 millions de dollars. Malgré l'exploitation de 109 magasins de moins, le chiffre d'affaires total est resté stable par rapport à l'année précédente. Le revenu net devrait atteindre entre 40 et 50 millions de dollars, ce qui représente une augmentation de 70 à 90 % d'une année sur l'autre, soutenue par la croissance des ventes des magasins comparables et une gestion des coûts améliorée. L'EBITDA ajusté devrait atteindre une fourchette comprise entre 60 et 70 millions de dollars. Les résultats définitifs non audités du deuxième trimestre seront publiés début décembre 2024.

Barnes & Noble Education (NYSE: BNED) berichtete über vorläufige Ergebnisse für das zweite Quartal des Geschäftsjahres 2025, die signifikante Verbesserungen zeigen. Die Einnahmen aus dem First Day® Programm stiegen im Jahresvergleich um 18% auf 235 Millionen US-Dollar. Trotz der Schließung von 109 Filialen blieb der Gesamtumsatz im Vergleich zum Vorjahr unverändert. Es wird erwartet, dass das Nettoergebnis eine Spanne von mittleren bis hohen 40 Millionen US-Dollar erreicht, was einem Anstieg von 70% bis 90% im Vergleich zum Vorjahr entspricht, bedingt durch das Wachstum vergleichbarer Geschäfte und eine verbesserte Kostenkontrolle. Das angepasste EBITDA wird auf einen Bereich von mittleren bis hohen 60 Millionen US-Dollar geschätzt. Die endgültigen, nicht geprüft veröffentlichten Ergebnisse für das zweite Quartal werden Anfang Dezember 2024 veröffentlicht.

Positive
  • First Day® Program revenues grew 18% YOY to $235 million
  • Net Income expected to increase 70-90% YOY to $44-49 million
  • Adjusted EBITDA projected to reach $61-69 million
  • Comparable store top-line growth achieved despite fewer locations
  • Improved cost management effectiveness
Negative
  • Operating 109 fewer physical and virtual stores
  • Overall revenue remained flat year-over-year

Insights

The preliminary Q2 results show significant operational improvements despite operating 109 fewer stores. The standout metrics include a 18% YoY increase in First Day® Program revenues to $235 million and projected net income in the $44-49 million range, representing a remarkable 70-90% YoY growth.

The company's cost management initiatives are yielding results, with interest expenses projected to decrease by roughly 53% to $5 million. The expected Adjusted EBITDA of $61-69 million (up from $51.08 million) indicates stronger operational efficiency. The ability to maintain flat revenues while operating fewer stores suggests successful execution of the company's transformation strategy and improved per-store productivity.

2Q BNC First Day® Program Revenues Increased 18% YOY to $235 million

2Q Net Income From Continuing Operations Expected to Increase by mid-70% to mid-90% YoY

BASKING RIDGE, N.J., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Barnes & Noble Education, Inc. (NYSE: BNED), a leading solutions provider for the education industry, today announced preliminary, unaudited results for the second quarter ended October 26, 2024. These unaudited GAAP results are from continuing operations on a consolidated basis, unless noted otherwise, with Adjusted EBITDA presented as a non-GAAP measure.

As BNED’s most significant quarter from a revenue perspective, the second quarter includes the majority of the Fall back-to-school period. Preliminary, unaudited results suggest that second quarter fiscal year 2025 revenue is expected to be approximately flat year over year (YoY), while operating 109 fewer physical and virtual stores. Net Income for the quarter is expected to be in the mid to high $40 million range, an anticipated increase by mid-70% to mid-90% YoY, driven by comparable store top-line growth and continued improvements in cost management. Adjusted EBITDA is also expected to increase in the mid to high $10 million range to the mid to high $60 million range.

Jonathan Shar, CEO, commented, “We are pleased with the preliminary second quarter results during the important Fall back-to-school period and the progress we have made to date executing against our key strategic initiatives. From strong growth in our First Day® affordable access programs, to outstanding retail execution supporting our client institutions, and a disciplined approach to cost management, we are excited about the momentum we are building in our business transformation.”

The company is expecting to share final, unaudited second quarter fiscal year 2025 financial results in the beginning of December 2024 and will provide more detail and commentary at that time, inclusive of full financial tables and a reconciliation of non-GAAP measures.

The table below reflects the reconciliation of Adjusted EBITDA to the most comparable GAAP financial metric, Net Income from Continuing Operations:

     
 $ in thousands13 weeks ended - Q2
  Oct 26, Oct 28,
  2024  2023 
 Net income from continuing operations$44,000-$49,000 $24,854 
 Add:   
 Depreciation and amortization expense8,000  10,175 
 Interest expense, net5,000  10,664 
 Income tax expense1,000-2,000  314 
 Restructuring and other charges1,000  4,274 
 Stock-based compensation expense (non-cash)2,000  799 
 Adjusted EBITDA (Non-GAAP) - Continuing Operations$61,000-$69,000 $51,080 
     

ABOUT BARNES & NOBLE EDUCATION, INC.
Barnes & Noble Education, Inc. (NYSE: BNED) is a leading solutions provider for the education industry, driving affordability, access and achievement at hundreds of academic institutions nationwide and ensuring millions of students are equipped for success in the classroom and beyond. Through its family of brands, BNED offers campus retail services and academic solutions, wholesale capabilities and more. BNED is a company serving all who work to elevate their lives through education, supporting students, faculty and institutions as they make tomorrow a better and smarter world. For more information, visit www.bned.com.

Use of Non-GAAP Financial Information - Adjusted EBITDA
To supplement the Company’s condensed consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”) the Company has presented the financial measure of Adjusted EBITDA, which is a non-GAAP financial measure under Securities and Exchange Commission (the "SEC") regulations. We define Adjusted EBITDA as net income (loss) plus (1) depreciation and amortization; (2) interest expense and (3) income taxes, (4) as adjusted for items that are subtracted from or added to net income (loss).

This non-GAAP measure has been reconciled to the most comparable financial measure presented in accordance with GAAP as follows: the reconciliation of consolidated Adjusted EBITDA to consolidated net income (loss). All of the items included in the reconciliation are either (i) non-cash items or (ii) items that management does not consider in assessing our on-going operating performance.

This non-GAAP financial measure is not intended as substitutes for and should not be considered superior to measures of financial performance prepared in accordance with GAAP. In addition, the Company's use of this non-GAAP financial measure may be different from similarly named measures used by other companies, limiting their usefulness for comparison purposes.

We review this non-GAAP financial measure as an internal measure to evaluate our performance at a consolidated level to manage our operations. We believe that this measure is a useful performance measure which is used by us to facilitate a comparison of our on-going operating performance on a consistent basis from period-to-period. We believe that this non-GAAP financial measure provides for a more complete understanding of factors and trends affecting our business than measures under GAAP can provide alone, as they exclude certain items that management believes do not reflect the ordinary performance of our operations in a particular period. Our Board of Directors and management also use Adjusted EBITDA at a consolidated level as one of the primary methods for planning and forecasting expected performance, for evaluating on a quarterly and annual basis actual results against such expectations, and as a measure for performance incentive plans. We believe that the inclusion of Adjusted EBITDA results provides investors useful and important information regarding our operating results, in a manner that is consistent with management’s evaluation of business performance.

The Company urges investors to carefully review the GAAP financial information included as part of the Company’s Form 10-K dated April 27, 2024 filed with the SEC on July 1, 2024, which includes consolidated financial statements for each of the three years for the period ended April 27, 2024, April 29, 2023, and April 30, 2022 (Fiscal 2024, Fiscal 2023, and Fiscal 2022, respectively). The Company also urges investors to carefully review the financial information included as part of the Company’s Quarterly Report on Form 10-Q for the period ended July 27, 2024, filed with the SEC on September 10, 2024.

Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and information relating to us and our business that are based on the beliefs of our management as well as assumptions made by and information currently available to our management. When used in this communication, the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “will,” “forecasts,” “projections,” and similar expressions, as they relate to us or our management, identify forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements, which include but are not limited to the anticipated financial results for second quarter fiscal 2025 and the timing of the Company full release of financial results for second quarter fiscal 2025. We caution you not to place undue reliance on these forward-looking statements. Such statements reflect our current views with respect to future events, the outcome of which is subject to certain risks, including, but not limited to: the completion of our quarterly review process for our financial results for the second fiscal quarter of 2025, which could cause the preliminary results reflect in this press release to change; the amount of our indebtedness and ability to comply with covenants contained in our credit agreement; and our ability to maintain adequate liquidity levels to support ongoing inventory purchases and related vendor payments in a timely manner. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. For a more detailed discussion of these factors, and other factors that could cause actual results to vary materially, interested parties should review the risk factors listed in the Company’s Annual Report on Form 10-K for the year ended April 27, 2024 as filed with the SEC. Any forward-looking statements made by us in this press release speak only as of the date of this press release, and we do not intend to update these forward-looking statements after the date of this press release, except as required by law.

Media & Investor Contact:
Judith Buckingham
Manager, Corporate Communications
jbuckingham@bned.com

Source: Barnes & Noble Education


FAQ

What was BNED's First Day Program revenue growth in Q2 FY2025?

Barnes & Noble Education's First Day Program revenues increased 18% year-over-year to $235 million in Q2 FY2025.

How much did BNED's Net Income increase in Q2 FY2025?

BNED's Net Income is expected to increase by mid-70% to mid-90% year-over-year, reaching the mid to high $40 million range.

What is BNED's expected Adjusted EBITDA for Q2 FY2025?

BNED's Adjusted EBITDA is expected to reach the mid to high $60 million range, specifically $61-69 million.

How many fewer stores did BNED operate in Q2 FY2025?

BNED operated 109 fewer physical and virtual stores compared to the same period last year.

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