Barnes & Noble Q1 Loss Narrows - Quick Facts

(RTTNews) - Bookstore chain Barnes & Noble Inc. (BKS) reported that its net loss for the first quarter ended August 2, 2014 narrowed to $28.4 million and $0.56 per share, from $87.0 million and $1.56 per share in the prior year. The prior year included a valuation allowance against certain deferred tax assets of $41 million, or $0.70 per share. Analysts polled by Thomson Reuters expected the company to report a loss of $0.63 per share for the quarter. Analysts' estimates typically exclude special items.

First quarter consolidated earnings before interest, taxes, depreciation and amortization or EBITDA improved to $30 million, as compared to an EBITDA loss of $9 million a year ago. First quarter results were positively impacted by approximately $13 million of favorable adjustments resulting from cost rationalization efforts.

NOOK EBITDA losses decreased $50 million, as compared to a year ago, to $5 million, primarily as a result of the cost rationalization efforts that were initiated last fiscal year. Expenses declined $27 million from a year ago, while gross profit included $13 million of favorable adjustments. NOOK recognized a $7 million benefit on the settlement of previously estimated and accrued device parts and components liabilities, and also recorded a net benefit of $6 million resulting from Palo Alto relocation lease accounting adjustments that were finalized during the quarter.

Quarterly revenues decreased 7.0% to $1.24 billion, from $1.33 billion in the prior year. Wall Street expected revenues of $1.26 billion for the quarter.

For fiscal year 2015, the Company continues to expect both Retail comparable bookstore sales and Retail Core comparable bookstore sales to decline in the low-single digits. College comparable store sales are also expected to decline in the low-single digits. The Company expects full fiscal year EBITDA losses in the NOOK segment to decline versus the prior year.