Barnes & Noble Education(BNED) - 2020 Q1 - Quarterly Report

Financial Performance - Total sales decreased by $17.8 million, or 5.3$319.7 million for the 13 weeks ended July 27, 2019, compared to $337.5 million for the same period in 2018[108]. - Product sales and other decreased by 4.9$302.2 million for the 13 weeks ended July 27, 2019, from $317.8 million for the same period in 2018[108]. - Rental income decreased by 11.2$17.4 million for the 13 weeks ended July 27, 2019, compared to $19.6 million for the same period in 2018[108]. - Retail sales decreased by$12.4 million, or 4.3%, to $274.7 million during the 13 weeks ended July 27, 2019, compared to$287.1 million during the same period in 2018[112]. - Comparable store sales decreased by $9.0 million, or 3.5$6.4 million, or 2.5%, in the same period in 2018[116]. - Wholesale sales decreased by $17.6 million, or 19.6$72.3 million during the 13 weeks ended July 27, 2019, from $89.9 million during the same period in 2018[117]. - The company reported a net loss of$32.2 million for the 13 weeks ended July 27, 2019, compared to a net loss of $38.6 million for the same period in 2018[104]. - Adjusted EBITDA improved to a loss of$25.1 million for the 13 weeks ended July 27, 2019, compared to a loss of $32.5 million for the same period in 2018[104]. Cost and Expenses - Total cost of sales decreased to$248.0 million for the 13 weeks ended July 27, 2019, from $270.9 million for the same period in 2018[107]. - Selling and administrative expenses increased to$97.7 million for the 13 weeks ended July 27, 2019, compared to $99.1 million for the same period in 2018[107]. - Total employee benefit expense for defined contribution plans was$1.538 million for the 13 weeks ended July 27, 2019, down from $2.085 million in the prior year[78]. - Stock-based compensation expense for the 13 weeks ended July 27, 2019, was$2.321 million, slightly down from $2.341 million in the prior year[82]. - Total selling and administrative expenses decreased by$1.4 million, or 1.5%, to $97.7 million during the 13 weeks ended July 27, 2019, from$99.1 million during the same period in 2018[125]. Impairment and Restructuring - The company recognized a non-cash impairment loss of $433,000 in the Retail segment during the 13 weeks ended July 27, 2019[10]. - Restructuring and other charges totaled$1.466 million, primarily for severance and professional service costs[75]. - The company recognized a non-cash impairment loss of $0.4 million in the Retail segment during the 13 weeks ended July 27, 2019[131]. Tax and Interest - The company recorded an income tax benefit of$(14.189) million on a pre-tax loss of $(46.344) million, resulting in an effective tax rate of 30.6$1.0 million to $2.5 million due to lower borrowings during the 13 weeks ended July 27, 2019[134]. Cash Flow and Borrowings - Cash, cash equivalents, and restricted cash at the end of the period was$8.98 million, down from $14.00 million at the end of the prior year period[145]. - The company had$174.1 million of borrowings under the Credit Agreement as of July 27, 2019[143]. - Net cash flows used in operating activities were $(40.2) million for the 13 weeks ended July 27, 2019, compared to$(27.4) million in the prior year[145]. - Cash flows provided by financing activities were $40.6 million for the 13 weeks ended July 27, 2019, compared to$33.8 million in 2018, reflecting a net change of $6.8 million due to increased net borrowings[147]. - As of July 27, 2019, the company had net total outstanding borrowings of$174.1 million, down from $230.2 million as of July 28, 2018[148]. Business Operations and Strategy - The Retail Segment operates 1,491 bookstores, including 777 physical and 714 virtual bookstores, serving over 6 million students[88]. - First Day total revenue increased by 46$26.7 million available for future repurchases[153].