Barnes & Noble Education(BNED) - 2024 Q1 - Quarterly Report

Financial Performance - For the 13 weeks ended July 29, 2023, the company incurred a Net Loss from Continuing Operations of $(50.9) million, compared to$(50.3) million for the same period in 2022[200]. - Adjusted EBITDA for the 13 weeks ended July 29, 2023, was $(49.97) million, compared to$(34.31) million for the same period in 2022[220]. - The company reported EBITDA from discontinued operations of $427 million for the 13 weeks ended July 29, 2023, compared to$889 million for the same period in 2022[221]. Cash Flow and Liquidity - Cash Flow Used In Operating Activities from Continuing Operations was $(119.9) million for the 13 weeks ended July 29, 2023, compared to$(28.6) million for the same period in 2022[200]. - Free Cash Flow (non-GAAP) for the 13 weeks ended July 29, 2023, was $(129.96) million, a significant decrease from$(39.19) million in the prior year[199]. - As of July 29, 2023, the company had $19.3 million in cash on hand, including$10.7 million of restricted cash related to a merchandising partnership agreement[227]. - The company raised additional liquidity and implemented operational restructuring actions to alleviate substantial doubt about its ability to continue as a going concern[200]. Debt and Credit Agreement - As of July 29, 2023, the company had outstanding borrowings of $249.7 million under the Credit Agreement, compared to$230.3 million as of July 30, 2022[207]. - The company amended its Credit Agreement on July 28, 2023, extending the maturity date to December 28, 2024, and adding a minimum Consolidated EBITDA financial maintenance covenant[207]. - The company incurred debt issuance costs totaling $11.0 million related to the July 2023 Credit Agreement amendment[207]. Operational Challenges - The company experienced significant negative impacts from the COVID-19 pandemic, resulting in changes in customer behaviors and lower enrollments affecting financial results[227]. - The company faced challenges including product shortages and increased labor costs, which may impact future performance[224]. Strategic Initiatives - The company is focused on aligning cash outflows to course material vendors with cash inflows collected from schools, particularly with the adoption of BNC First Day programs[230]. - The company is exploring strategic alternatives to effect a "Specified Liquidity Transaction" as part of its ongoing financial strategy[228]. Legal and Market Risks - The company is involved in various legal claims and proceedings but does not expect a material adverse effect on future financial results[243]. - There have been no material changes to market risk disclosures since the fiscal year ended April 29, 2023[241]. Capital Expenditures - Total Capital Expenditures for the 13 weeks ended July 29, 2023, were$4.22 million, down from $7.53 million in the same period of 2022[199]. - As of July 29, 2023, the company has no off-balance sheet arrangements[238]. Stock Repurchase Program - The company has approximately$26.7 million remaining under its stock repurchase program as of July 29, 2023[237].