Knobias Clip Report (08-22-2008) BAMM
Submitted By Knobias ClipReport
BAMM: Management Discusses Q2 Financial Results and Economic Impact on Sales
By Fain Hughes, fhughes@knobias.com
Books-A-Million, Inc. (BAMM) announced financial results after the bell Thursday for the second quarter ended August 2, 2008. Net sales decreased 7.5% to $122.8 million from net sales of $132.8 million in the year-earlier period. Comparable store sales for the second quarter decreased 10.4% when compared with the 13-week period for the prior year. Net income for the second quarter decreased to $645,000, or $0.04 per diluted share, compared with net income of $3.1 million, or $0.19 per diluted share, in the year-earlier period.
Douglas G. Markham, CFO of Books-A-Million, noted in a conference call, “The decrease in net sales and comparable store sales was primarily due to the great success of Harry Potter and the Deathly Hallows in the prior year period.”
Sandra B. Cochran, President and CEO of Books-A-Million, commented, “This quarter brought many challenges. The difficult economic conditions continue to contribute to a soft sales environment, where declining customer traffic and a price conscious consumer were clearly evident.”
She added, “We anticipate few changes in Q3 for what will surely remain a challenging and highly-competitive marketplace. We remain focused on the fundamentals of our business that include cost control, inventory management and offering the best possible value to our customers.”
The Company also announced that its Board of Directors has approved a quarterly cash dividend of $0.09 per share. The quarterly dividend will be paid on September 18, 2008, to stockholders of record at the close of business on September 4, 2008.
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