Barnes & Noble Education(BNED) - 2025 Q1 - Quarterly Results

Financial Performance - Total sales for the 13 weeks ended July 27, 2024, were $263.4 million, a slight decrease from $264.2 million in the same period last year[1] - Gross profit decreased to $47.2 million (17.9% of sales) from $50.6 million (19.2% of sales) year-over-year[1][2] - Operating loss widened significantly to $(91.7) million (34.9% of sales) from $(41.7) million (15.8% of sales) in the prior year period[1][2] - Net loss from continuing operations increased to $(99.5) million (37.9% of sales) compared to $(50.0) million (18.9% of sales) in the same period last year[1][2] - Net loss for the 13 weeks ended July 27, 2024, was $99.5 million, compared to $50.4 million in the same period last year[12] Non-GAAP Financial Metrics - Adjusted EBITDA (non-GAAP) for continuing operations improved to $(20.7) million from $(25.9) million in the prior year period[5] - Adjusted EBITDA is used by the company as a primary method for planning, forecasting, and evaluating performance, including for performance incentive plans[11] - Free Cash Flow (non-GAAP) was $(152.4) million, compared to $(130.0) million in the same period last year[7] - Free Cash Flow is highlighted as a key metric to assess cash flow available for future debt service obligations and working capital requirements[11] - The company does not provide a reconciliation of forward-looking non-GAAP financial metrics due to the unavailability of reconciling information without unreasonable effort[11] Cash Flow and Capital Expenditures - Net cash flows used in operating activities from continuing operations increased to $144.0 million in the 13 weeks ended July 27, 2024, from $119.9 million in the same period last year[12] - Proceeds from borrowings increased to $217.6 million in the 13 weeks ended July 27, 2024, compared to $145.2 million in the same period last year[12] - Net cash flows provided by financing activities increased to $139.9 million in the 13 weeks ended July 27, 2024, from $93.2 million in the same period last year[13] - Cash, cash equivalents, and restricted cash at the end of the period were $21.3 million, compared to $19.3 million in the same period last year[13] - Total capital expenditures decreased to $3.5 million from $4.2 million year-over-year, with physical store capital expenditures accounting for $1.96 million[8] Balance Sheet Changes - Total assets decreased to $1.005 billion from $1.071 billion, while total liabilities decreased to $860.8 million from $989.8 million year-over-year[3] - Stockholders' equity increased to $144.4 million from $81.1 million, primarily due to an increase in additional paid-in capital[3] Debt and Extinguishment - The company recognized a $55.2 million loss on extinguishment of debt related to the June 10, 2024 Term Loan debt conversion[6]