Barnes & Noble Education(BNED) - 2024 Q4 - Annual Results

Financial Performance - For the 52 weeks ended April 27, 2024, total sales were $1,567,135, an increase of 1.6% compared to$ 1,543,208 for the same period in 2023[13]. - Gross profit for the 13 weeks ended April 27, 2024, was $69,864, compared to$ 58,282 for the same period in 2023, reflecting a significant improvement[13]. - The company reported a net loss of $27,364 for the 13 weeks ended April 27, 2024, compared to a net loss of$ 46,250 for the same period in 2023, indicating a reduction in losses[13]. - Adjusted earnings (non-GAAP) for the 52 weeks ended April 27, 2024, were $(35,906), compared to$ (74,003) for the same period in 2023, showing a substantial improvement[1]. - The net loss from continuing operations for the period was $62,481 thousand, an improvement from a loss of$ 90,140 thousand in the same period last year[16]. - Net loss improved to $(62.5) million, a$ 27.6 million improvement from the previous year[23]. - Adjusted EBITDA for continuing operations was $1,483 thousand, compared to a loss of$ 18,193 thousand in the same period last year[18]. - Adjusted EBITDA increased to $45.2 million, a$ 53.3 million improvement from a loss of $(8.1) million last year[23]. Cost Management - Selling and administrative expenses decreased to$ 68,381 for the 13 weeks ended April 27, 2024, from $76,475 in the same period in 2023, indicating cost management efforts[13]. - The cost of sales decreased to 70.4% of total sales from 75.9% in the previous year, leading to a gross profit margin increase to 29.6% from 24.1%[14]. - Interest expense increased to 4.6% of total sales from 2.9% in the previous year, reflecting higher borrowing costs[14]. - The company anticipates a significant ongoing reduction in interest costs and related expenses due to recent debt reduction[28]. Cash Flow and Debt - Cash flows from operating activities resulted in a net outflow of$ 5,122 thousand, a significant decrease from an inflow of $91,670 thousand in the same period last year[16]. - The company reported a decrease in cash, cash equivalents, and restricted cash to$ 28,570 thousand at the end of the period, down from $31,988 thousand at the beginning[16]. - Net debt at year-end fiscal 2024 increased to$ 187.1 million, partly due to vendors tightening payable terms[23]. - The current level of net debt has meaningfully declined on a seasonally adjusted basis due to cash infusion and debt conversion[23]. Strategic Initiatives - The company continues to focus on enhancing its market position and operational efficiency through strategic initiatives and cost reductions[8]. - The company is focusing on strategic service provider relationships and the adoption of new educational content models to enhance market position[19]. - The company plans to continue investing in technology and product development to adapt to changing market demands and improve operational efficiency[19]. - The company aims to strategically invest in innovation while focusing on productivity and cost efficiencies[29]. Market Position and Growth - Fiscal year 2024 revenue grew 1.6% to $1.57 billion, driven by a 48% increase in First Day Complete revenue[23]. - First Day Complete store count grew to 160, representing enrollment of approximately 805,000 students, a 39% increase year-over-year[27]. - Total sales for the period ended April 27, 2024, were composed of 81.7% product sales and 18.3% rental income, compared to 83.5% and 16.5% respectively for the same period in 2023[14]. Equity and Stock - The company completed an equity rights offering and a reverse stock split of 1-for-100 subsequent to the end of Fiscal 2024, impacting share count and earnings per share[13]. - A 1-for-100 reverse stock split was completed on June 11, 2024, resulting in approximately 26.2 million outstanding shares[24]. - The company completed a milestone equity and refinancing transaction, infusing approximately$ 80 million of net new cash[23].